Icap Shipping News

Norwegian-born billionaire John Fredriksen has teamed up with investment bank Arctic Securities to form a ship broking company aimed at taking on bigger rivals and betting on a recovery in the global shipping market. Many segments of the shipping industry, including dry bulk commodities, are struggling with tougher conditions due to world economic worries and a surfeit of vessels. Fredriksen, via his family's investment company Geveran Trading Co, and Oslo-headquartered Arctic Securities said on Monday they had established a 50-50 joint venture broking company, Arctic Shipping Norway, which they expect to start operations in the first half of this year. "I am truly convinced that both the shipping and the offshore markets will recover.

Shipping costs plunged to almost the lowest on record following tumbling demand for coal in China and weakening growth in the nation’s iron ore purchases, reports Bloomberg. The Baltic Dry Index, which tracks freight rates for ships carrying raw materials, has slumped to its lowest point in 29 years, hit by a shipping glut, falling commodity prices and declining import demand from China. The BDI fell to 577 this week, its lowest level since July 1986, and a far cry from its peak of 11,793 in 2008. Reversing growth of 16 percent the year before, China’s seaborne coal imports slid 10 percent in 2014, says Clarkson Plc, the world’s largest shipbroker.

Shipping market prospects picking up after record downturn; shipbroker M&A deals have gathered pace this year. ICAP's shipping business is in merger talks with rival shipbroker Howe Robinson, the latest potential tie-up among sector players looking for scale after years of freight market turmoil. The shipping industry has suffered one of its worst ever downturns in the past five years. Owners ordered large numbers of vessels between 2007 and 2009, just as the global economy started to slow. Prospects have brightened recently as world trade picks up and the glut of ships is absorbed, but recovery remains fragile. In the meantime, many shipbrokers view larger operations with global teams as the best way to position for a full market revival.

Braemar Shipping Services will buy fellow British shipbroker ACM Shipping Group in the latest industry shake-up as players look to grow after years of freight market turmoil. In the biggest deal to date, Braemar, whose businesses include ship broking, said on Tuesday it had agreed to acquire the entire share capital of ACM. "What this transaction is about is growing our shipbroking presence collectively," said Braemar chief executive James Kidwell. Ship owners ordered large numbers of vessels between 2007 and 2009 just as the global economy sank into crisis…

Jones joins the Baltic Exchange from ICAP Shipping Singapore where he was director of sale & purchase. He will replace Philip Williams who retires from the role in April, and he 
will be based at the Exchange's Singapore office. Baltic Exchange Chief Executive Jeremy Penn said:

 “We’re delighted to welcome Chris Jones to the team. The Baltic Exchange’s presence has grown significantly in Asia with our Singapore office leading the drive. More of the Baltic’s freight market information than ever before is produced from Singapore.

Global Business and Transportation Department’s Cutting Edge Issues in Shipping Conference. It was a good day for New York City’s most famous groundhog, Staten Island Chuck. Groundhog Day, 2012 proved to be an even better day for the more than 150 men and women from the international shipping community, along with hundreds of SUNY Maritime College students, who  attended the 2012 SUNY Maritime College Cutting-Edge Issues in Shipping held on the SUNY Maritime College campus in Throggs Neck, the Bronx, New York City.

SUNY Maritime College Presents The Annual 2012 Groundhog Day Cutting Edge Issues in Shipping Symposium. At 10:00 am,    "Cuba Oil Drilling - U.S. Contingency Planning  to respond to a pollution release impacting U.S  Waters"  will  be the topic of  a talk by Captain Francis (“Stash”) Pelkowski, USCG  and Assistant Professor, Global Business &  Transportation, SUNY Maritime College. James Maloney, Esq., SUNY Maritime graduate and maritime attorney will tackle the topic of  "Controversial Issues of Marine Insurance,” at 10:45 am.

Saxo Bank and ICAP Shipping Involved in World's First Electronic Container Freight Swap Settled in USD. Saxo Bank, the trading and investment specialist, and ICAP Shipping, the shipping arm of ICAP plc, announced on Thursday that they were involved in the execution of the world's first electronic, voice-assisted trade of a container freight swap agreement settled in US dollars. The counterparties to the trade were Saxo Bank in Denmark as the buyer and a Netherlands-based trading house as the seller. ICAP Shipping was the broker of the trade. The container freight swap agreement was executed on ICAP's Webtrader platform, with manual input from ICAP Shipping brokers and cleared by LCH.Clearnet. The trade was executed by rugby star Lawrence Dallaglio during ICAP's 19th annual Charity Day.

Record bulk carrier investment translates into fleet growth which is expected to exceed trade growth between 2009 and 2011, according to the report. The impact of tightening credit on investors and yards will mean that some of this orderbook does not deliver on time or at all, though supply growth is predicted still to have the upper hand. Negative global economic sentiment magnified by the impact of short-term cost controls by Chinese industry in response to high commodity prices. Once a reversal in these costs filters through the supply chain, a rebound in Chinese demand and consequently freight rates is expected. Demand is price-sensitive, with many trades priced out of the market in recent years.