Marine Link
Monday, April 24, 2017

DSME Deal Non-starter

File Photo: Daewoo Shipbuilding and Marine Engineering

The creditors of Daewoo Shipbuilding & Marine Engineering (DSME) still remain undecided over afor the shipyard's latest deal, further complicating troubles for one of the country's major shipyards, Yonhap reported. DSME  clinched a US$250 million deal to build three very large crude carriers (VLCCs) on April 4. Under the deal with Maran Tankers Management, a unit of Greece's largest shipper Angelicoussis Shipping Group, Daewoo Shipbuilding will deliver the 318,000-ton VLCCs by 2018.

DSME's Bailout Plan Cleared by Pension Fund

Photo: DSME

South Korea’s National Pension Service (NPS) agreed to a restructuring of bonds issued by Daewoo Shipbuilding & Marine Engineering (DSME). Reuters reported that this move is expected to help the world’s largest shipbuilder tide over a financial crisis. NPS stated that accepting the debt restructuring will be more advantageous to improve the fund's returns. The finance crunch hit DSME will likely get more time to make payments on bonds that are due this month. NPS is the biggest holder of the debt.

North Korean Coal Ships Sail Home after China Denies Cargo

A fleet of North Korean cargo ships is heading home to the port of Nampo, the majority of it fully laden, after China ordered its trading companies to return coal from the isolated country, shipping data shows. Following repeated missile tests that drew international criticism, China banned all imports of North Korean coal on Feb. 26, cutting off the country's most important export product. To curb coal traffic between the two countries, China's customs department issued an official order on April 7 telling trading companies to return their North Korean coal cargoes, said three trading sources with direct knowledge of the order. U.S. President Donald Trump and Chinese President Xi Jinping were discussing North Korea at Trump's Mar-a-Lago resort on April 7.

Daewoo Shipbuilding unlocks $2.6 bln Bailout

File Image (CREDIT: AdobeStock / (c) Carabay)

Bondholders at final meetings agree to debt-to-equity swap; shipbuilder needs about $400 mln in operating funds by April-end. South Korea's Daewoo Shipbuilding & Marine Engineering Co Ltd has won near unanimous agreement from bondholders to swap their debt for equity, meeting a condition that unlocks a $2.6 billion bank bailout for the world's biggest shipbuilder. Daewoo won approval from over 96 percent of bondholders at two meetings on Tuesday and three on Monday, with attendance exceeding 78 percent.

Korea Gas Corp Launches Tender for June, July LNG Cargoes

Korea Gas Corp has launched a tender seeking to buy liquefied natural gas (LNG) cargoes for delivery in June and July, trade sources said on Thursday. The scope of the company's demand is unclear as each supplier has a limit on the number of cargoes it is allowed to offer, but the firm has not spelled out an upper limit for deliveries, trade sources said. (Reporting by Oleg Vukmanovic)

Daewoo Shipbuilding Bondholders Okay Bailout Plan

File Image (CREDIT: AdobeStock / (c) Carabay)

Debt-to-equity swap plan is condition of $2.6 bln bailout. South Korea's Daewoo Shipbuilding & Marine Engineering Co Ltd on Monday won near unanimous approval for a debt-to-equity swap plan in the first three of five bondholder meetings, as the world's largest shipbuilder battles to stay afloat. The votes were held hours after Daewoo's biggest bondholder, the National Pension Service (NPS), said it had agreed to the proposal. That move made it likely other bondholders would follow suit, creditor bank officials said, allowing the shipbuilder to meet conditions of a $2.6 billion bank bailout.

South Korean Tender Stirs LNG Market

© Oleksandr Prykhodko / Adobe Stock

Asian spot LNG prices jumped this week, buoyed by hopes Korea Gas Corp's new tender would match past buying sprees and by emerging demand from China and Japan. Spot prices for June delivery rose to $5.70 per million British thermal units (mmBtu), a 20 cent jump over last week, but traders cited sharply divergent views on pricing, saying the disagreements contributed to market inertia. Still, Korea Gas Corp's Thursday tender for June and July supply - set to close on April 26 - immediately stirred up bullish offers, rescuing an otherwise muted trading week.

Euronav VLCC Aground near Indonesia

MT Alex, a very large crude carrier (VLCC) owned by Belgian tanker company Euronav Ship Management ran aground in Java Sea. The DWT 299,446 vessel, in laden condition, was sailing between Borneo and Sumatra on its way to Ningbo, China under load of crude oil, when she ran aground on a soft mud bottom. No injuries or pollution have been reported while the vessel remains safely aground, in good weather. No breach of hull, water ingress or mechanical failure are apparent in the assessment made by the crew, while the Class surveyor is expected to board as soon as possible. In a statement Euronav said that it has activated its emergency response plan and has notified all the relevant authorities; the emergency team is assessing the options for refloating the vessel.

S.Korean Utilities to Lift 1.5 mln Tons of U.S. Coal

File Image (CREDIT: AdobeStock)

South Korean utilities jointly bought a total of 1.5 million tonnes of coal from the United States to arrive from the third quarter, a spokesman at one of the utilities said on Tuesday. The purchase comes as South Korea, the world's fourth-largest coal importer, encourages energy companies and utilities to seek U.S. energy resources under pro-fossil fuel Trump administration in an effort to diversify supply sources. Korea Midland Power Co Ltd (KOMIPO) signed the deal to buy the U.S.-origin coal products on behalf of the five utilities, its spokesman said.

Private Equity Boost for Hyundai Samho

South Korea’s Hyundai Samho Heavy Industries (HSHI), a shipbuilding affiliate of Hyundai Heavy Industries (HHI), said it has attracted 300 billion ($264 million) won investment via pre-IPO. Under the agreement signed with Korean private equity firm IMM Private Equity, HSHI will issue 5.36 million new convertible preferred shares and IMM PE will pay 300 billion won ($264 million) in total to acquire the shares at 56,000 won per share. The deal brings HSHI’s total market value at 2.5 trillion won ($2.2 billion). HSHI said it plans to finalize the approval of the deal early June this year through the meeting of board of directors, and to use the investment to lower its debt-to-equity ratio to 78.1 percent from current 96.4 percent.

Korean Cargo Ship Missing

A large South Korean cargo ship with 24 crew on board is believed to have sunk in the Atlantic Ocean after making an SOS call, News agencies reported quoting the Uruguayan navy. The Stellar Daisy was missing after making its last contact in the South Atlantic about 2,500 kilometres (1,500 miles) from shore, South Korea's foreign ministry and news reports said on Sunday. On Friday, a crew member sent a text saying the 312m-long (1024ft) Stellar Daisy freighter was taking on water. The Uruguayan navy alerted merchant ships in the area, which began a search. Two Filipino crew members were rescued floating in a life raft on Saturday, but other lifeboats and rafts found in the area were empty, South Korea's Yonhap news agency reported.

TMC Compressors for FRSU Newbuild

International compressor supplier TMC Compressors (TMC) said it has been awarded a contract by Daewoo Shipbuilding & Marine Engineering (DMSE) to supply a marine compressed air system to a newbuild floating storage and regasification unit (FRSU). TMC’s scope of work includes engineering, manufacturing and supply of a complete compressed air system for the FRSU, which is being built by DSME for BW LNG. Under the contract, TMC will supply 3 x 40 kW frequency controlled control air compressors and 3 x 40 kW service air compressors. The contract value is undisclosed. “Any FRSU is a vital component in the LNG value chain. That is why DMSE and BW LNG have opted for compressors that are built especially for marine application…

Rickmers-Linie Appoints Korea Maritime

Rickmers-Linie GmbH & Cie. KG, the German based global breakbulk, heavy lift and project cargo specialist, has appointed Korea Maritime Co.,Ltd., Seoul as its new agent in South Korea effective September 18. Rickmers-Linie and Seabridge Korea Ltd., Seoul, have agreed to terminate the existing agency agreement effective 17 September 2006. As of 18 September, all Rickmers-Linie’s activities in South Korea will be handled by Korea Maritime Co., with the first vessel being the MV Rickmers New Orleans, scheduled to arrive in Masan on September 21.

South Korea Wants 3 More Aegis Warships

The South Korea Navy has requested three more Aegis destroyers to strengthen the country’s defense against North Korea and to cover territorial disputes in the region according to a military official cited by 'The Korea Times'. Under a Navy buildup project started in 2004 to bolster defense against North Korea, South Korea began to build Aegis destroyers and currently has three 7,600-ton warships ― the King Sejong the Great, the Seoae Ryu Seong-ryong and the Yulgok Yi I. The South Korea Navy has sought to increase its fleet to cope with rising regional tension in the wake of North Korea’s third nuclear test conducted earlier this year and ongoing territorial disputes between China and Japan. Source: 'The Korea Times'.

South Korea Mulls Maritime Study with North Korea

Picture: South Korea’s Maritime Affairs and Fisheries Ministry

South Korea would propose a joint research with North Korea to develop marine resources and ocean tourism, reports Korea Herald. South Korea’s Maritime Affairs and Fisheries Ministry pointed out the need of an excavation of North Korea’s marine resources, and development of ecotourism content and infrastructure to attract Asian tourists. The plan is to work together on eco-friendly marine tourism measures with North Korea, and designate uninhabited islands as “Islands of Peace” where they can develop resources together.

North Korea Fires Missiles in Show of Force

Missiles flew far enough to reach any part of S.Korea. North Korea fired three ballistic missiles on Tuesday which flew between 500 and 600 km (300-360 miles) into the sea off its east coast, South Korea's military said, the latest in a series of provocative moves by the isolated country. The U.S. military said it detected launches of what it believed were two Scud missiles and one Rodong, a home-grown missile based on Soviet-era Scud technology. North Korea has fired both types numerous times in recent years, an indication that unlike recent launches that were seen as efforts by the North to improve its missile capability, Tuesday's were meant as a show of force.

China's Q1 Trade with N.Korea up Despite Sanctions

China's trade with North Korea rose in the first quarter in spite of tough new international sanctions this year targeting Pyongyang's banned nuclear program, including curbs on coal imports. Imports from the isolated country, consisting mainly of coal and clothes, rose 10.8 percent from a year earlier, customs spokesman Huang Songping said on Wednesday. China's exports to North Korea in the first quarter rose 14.7 percent from a year earlier in yuan terms, Huang told a news conference. China is North Korea's only major ally and most important trade partner. Exports consisted of electromechanical products, labor-intensive and agricultural products.

HMM New Service in North China, Korea and Russia

Photo: Hyundai Merchant Marine

Hyundai Merchant Marine (HMM) announces the launch of a new North China-Korea-Russia weekly service, under the name of ‘CRN (China Russia North Service)’. The CRN service covers the ports of ‘Qingdao-Shanhai-Ningbo-Pusan-Vladivostok-Vostochny-Pusan-Qingdao’ and will begin on March 31. HMM will deploy one container ship on the route, and FESCO will place two vessels on the route. HMM has been offering CRS (China Russia South Service) services on South China-Middle China-Korea-Russia in cooperation with FESCO and CMA-CGM.

Rickmers Establishes Korea Subsidiary

Rickmers-Linie, the Hamburg-based specialist for breakbulk, heavylift and project cargo, is expanding its network of own subsidiaries in Asia and will establish a new subsidiary, Rickmers (Korea) Inc, in Seoul effective November 1, 2007. “With its export oriented industry and as a significant location for shipping and related industries, Korea is one of our key markets in the Far East. Thus it was a logical decision to establish our own office in Seoul. The new subsidiary will primarily take over the role of Rickmers-Linie’s agent in Korea and moreover will be the representative office for Rickmers Group in Korea,” explained Gerhard Janssen, General Manager Marketing & Sales at Rickmers-Linie.

Vale: Iron Ore on Sunken Ship Insured

File Image: a so-called ValeMax bulk carrier (CREDIT: Vale)

Brazilian miner Vale SA said on Monday that 260,000 tonnes of fine iron ore on a South Korean ship that sank in the South Atlantic had been insured.   Vale said in an email that the cargo, which belonged to the Brazilian miner, was bound for China for storage and blending when the ship operated by South Korea's Polaris Shipping, Stellar Daisy, sank off Uruguay's coast.   Vale said the cargo had been stowed in accordance with international norms.   Reporting by Roberto Samora

Seoul's Effort to Calm Shipping Sector Storm

Photo: Hyundai Heavy Industries

South Korea will pump $9.5bn (11 trillion won) into state-run policy lenders reeling from huge losses on loans made to the beleaguered shipbuilding and shipping sectors to help them deal with further corporate distress, says FT. South Korea's fund will support two state-run banks most exposed to shipping and shipbuilding firms currently being restructured. The China slowdown is partly to blame. The two state-run banks to be capitalised are Korea Development Bank (KDB) and the Export-Import Bank of Korea (KEXIM).

Korea to Create $1.2bln Shipping Fund

Photo: Hyundai Heavy Industries

The South Korean government will create a US$1.2 billion ship investment fund to aid the shipping industry which has been struggling due to decreasing global trade. A report by South Korea's Yonhap News Agency said the fund will help shippers buy and sell vessels with less financial risk. The fund, aims to "aid the shipping industry which has been struggling due to decreasing global trade". Fund will "help shippers buy and sell vessels with less financial risk as the Korea Trade Insurance Corp. and the Korea Maritime Guarantee Insurance Co.

AVEVA Expands in Korea

AVEVA opened a new office in Seoul, Korea, that incorporates a dedicated product training center, following an increased demand for AVEVA solutions. The office will also host sales, marketing, product support, and administration functions for AVEVA customers in Korea. “This new office, in particular the product training centre, enables AVEVA to offer a better service to our customers”, said EunJoo Park, Senior Executive Vice President of Korea and Japan division, AVEVA. “We can vastly increase the number of participants at this new training centre, as well as host more meetings. AVEVA has had offices in Korea for over ten years. In this time we have seen an increased demand for trained users in AVEVA products and solutions across the Plant and Marine industries.

Maritime Reporter Magazine Cover Apr 2017 - The Offshore Annual

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