Marine Link
Monday, January 22, 2018

Long Term News

Four Japanese Companies Join Modec in Sepia FPSO Deal

Photo:  MODEC, Inc.

Four Japanese companies will invest in a new company established by compatriot Modec with an aim to provide a floating, production, storage and offloading (FPSO) unit for the Petrobras-operated Sepia field offshore Brazil. "MODEC, Mitsui, Mitsui O.S.K. Lines, Marubeni Corporation and Mitsui Engineering & Shipbuilding Co have agreed to jointly invest in a long-term charter business currently promoted by MODEC, for providing a FPSO in the Sepia Area, off the coast of Brazil," said a press release. These companies have entered into related agreements for the FPSO project on January 9, 2018.

GOGL Acquires New Vessel

File Photo: Golden Ocean Group Ltd

Norway based dry bulk shipping company Golden Ocean Group Limited (GOGL) has  taken delivery of the second vessel, Sea Monterrey (to be renamed Golden Monterrey). On October 16, 2017 GOGL announced that it has entered into agreements to acquire two modern Capesize vessels from affiliates of Hemen Holding Limited, a company indirectly controlled by trusts established by John Fredriksen for the benefit of his immediate family (Hemen), the Company's largest shareholder, at a purchase price of USD 43.0 million per vessel. The first vessel, Golden Behike, was delivered in November 2017.

Chevron Shipping Awards Oil, LNG Contract to GAC

Photo: Gulf Agency Company

US-based Chevron Shipping Company (CSC) has awarded  the Dubai-based GAC Group a global three-year ship agency contract for both crude and LNG vessels. The new agreement secures the provider of shipping, logistics and marine services GAC’s status as Chevron’s exclusive global agent in a partnership that spans more than 20 years, more than 15 of which have seen GAC as its sole global agent. Operations will be overseen by GAC Hub Agency offices in Dubai, Houston and Singapore with support from GAC’s network of offices and approved agents worldwide.

Global Ship Lease Eyes Acquisitions

Photo: Global Ship Lease

The London-based Global Ship Lease (GSL) said that it  is well-positioned as one of few publicly listed containership leasing companies to acquire attractive portfolios of ships, attract growth capital or find a complementary merger partner. The containership charter owner has engaged Evercore to act as financial advisor to assist in reviewing strategic alternatives focused on maximizing shareholder value. GSL has successfully refinanced of all of the its indebtedness in October 2017 and with a strengthening market backdrop.

Road Map to Boost Singapore Maritime Industry

Dr Lam Pin Min, SMS, Ministry of Transport and Ministry of Health, at the PSA ‘Intelligent Port of the Future’ Exhibition showcasing the transformation of port operations through technology and innovation. Photo:  Maritime and Port Authority of Singapore

Dr Lam Pin Min, Senior Minister of State (SMS) for Ministry of Transport and Ministry of Health, launched the Sea Transport Industry Transformation Map (ITM) at the annual Singapore Maritime Foundation New Year Cocktail Reception. Developed by the Maritime and Port Authority of Singapore (MPA) in partnership with the industry, unions and other government agencies, the Sea Transport ITM builds on MPA’s strategic long term plans to develop Singapore’s next-generation port and strengthen our international maritime centre (IMC).

IMO Secretary-General Comments on Sanchi Tanker Disaster

Kitack Lim. Photo: International Maritime Organization (IMO)

International Maritime Organization (IMO) Secretary-General Kitack Lim said that  his organization's thoughts and prayers are with the seafarers still missing from the oil tanker Sanchi, following a reported collision off the coast of China. "I send my deepest sympathies to all their families and loved one," he said in a statement. Lim commended those involved in the international search and rescue operations so far and in the efforts to battle the fire and contain pollution from the ship. “This is an ongoing situation which we are monitoring.

Global Ship Lease Extends TC with CMA CGM

Photo: CMA CGM

Global Ship Lease, a containership charter owner, announced that it has agreed to an extension of its charter with CMA CGM for the GSL Tianjin, a 2005-built, 8,063 TEU containership. The vessel will be chartered for a period of eight to twelve months (at the charterer's option) at a fixed rate of $11,900 per day, commencing in direct continuation from its current charter on January 26, 2018. Ian Webber, Chief Executive Officer of Global Ship Lease, commented, "We are pleased to have secured this extension with CMA CGM for the continued employment of the GSL Tianjin.

FSL Trust Sells Vessel to Trim Debt

Photo: FSL Trust

FSL Trust Management, as trusteemanager of First Ship Lease Trust (FSL Trust), announces that the Trust has sold its chemical tanker, FSL Tokyo, for a cash consideration of US$13.8 million. FSL Tokyo is a 2006, Japanese-built, 20,938 DWT chemical tanker that has been deployed in the spot market. The net proceeds from this Disposal will be applied in full to the outstanding loan facility in 1Q2018. FSL Trust will record a related impairment charge of approximately US$9.0 million in 4Q2017.

Guyana Government Goes with ExxonMobil

Minister of Natural Resources, Raphael Trotman. Photo: DPI/Department of Public Information

Guyana's Minister of Natural Resources, Raphael Trotman said while there is no perfect contract, the government is comfortable with the terms and conditions spelt out in the Stabroek Petroleum agreement between itself and ExxonMobil and prefers a long-term, stable relationship with one exploration company rather than several. “We recognised that we had with us a company that had made a discovery, had a binding contract with the government and people of Guyana which had been signed in 1999…

Jumbo Orders LNG-powered Heavy Lift Ship

(Image: Ulstein Design & Solutions B.V.)

Dutch transportation and installation contractor Jumbo said it has signed a Letter of Intent (LOI) with shipbuilder China Merchants Industry Holdings (CMIH) for the construction of a new heavy lift crane vessel (HLCV) scheduled for delivery in the first quarter of 2020. The DP2 vessel will feature dual fuel engines capable of operating on liquefied natural gas (LNG), and will be built to serve the offshore wind and the offshore oil and gas industries. “Despite the current offshore climate, we are committing to this industry long term,” said Jumbo managing director, Michael Kahn.

DP World Rating Upgraded by Fitch

Photo DP World Port

Fitch Ratings recently upgraded DP World Limited’s  Long-Term Issuer Default Rating (IDR) to BBB from BBB- and its Short-Term IDR to F2 from F3. The rating outlook is stable. The upgrade follows on the Fitch announcement in November 2015 that DP World’s outlook had been revised to Positive from Stable. It reflects the global trade enabler’s strong performance and stable cash flow generation supported by its geographical diversification, high utilisation rate of terminals and the long-term maturity of its main flagship operation in Jebel Ali, Dubai, UAE.

Elengy LNG Trans-Shipment at Montoir-de-Bretagne

LNG transshipment at Montoir-de-Bretagne terminal. Photo: Elengy

Elengy, a unit of the French energy company and LNG player Engie, said that the LNG receiving terminal in Montoir-de-Bretagne, managed by the company, has just performed a new generation LNG transshipment. The ice-class LNG carrier Fedor Litke (170 000 cm capacity) has delivered to the LNG Jurojin (155 000 cm capacity) an LNG cargo the size of the yearly gas consumption of a city like Nantes. This was done safely during an twin call thanks l. The LNG was transferred through the cryogenic pipelines linking directly the two berths, without going through the terminal’s tanks.

Retailers: Short-term Transportation Bill Isn’t Enough

Jon Gold (Photo: NRF)

“Transportation funding is a long-term problem that needs a long-term solution. Today’s vote is a necessary step to keep federal transportation programs in operation, but quick fixes are not the answer. “The supply chain is the lifeblood of any retailer. Congress needs to make good use of these next few months to come up with a long-term, sustainable funding measure that provides needed stability to the programs. Any long-term bill should recognize the importance of transportation to the U.S.

Great Lakes Coal up More Than 12% in September

Lake Carriers’ Association reported that coal shipments on the Great Lakes totaled 3 million tons in September, an increase of more than 12 percent compared to a year ago. Loadings were, however, 6.5 percent below the month’s long-term average. Shipments from Lake Superior ports totaled 1.7 million tons, an increase of 7.5 percent compared to a year ago, but well off the month’s long-term average. Loadings on Lake Michigan totaled 250,000 tons, a decrease of 5 percent compared to a year ago, and 26 percent below the month’s long-term average. Shipments from Lake Erie ports totaled 1 million tons, an increase of nearly 28 percent compared to a year ago, and 8.3 percent better than the month’s long-term average.

Andreas Silcher Negotiates LNG Carrier Contracts

Andreas Silcher. Photo: Haynes and Boone

Partner Andreas Silcher in Haynes and Boone’s London office represented TMS Cardiff Gas in its contract with Hyundai Heavy Industries of Korea (HHI) for the construction of one 174,000 cubic meter LNG carrier with XDF propulsion, plus an option for a second vessel. In a press release, TMS Cardiff Gas called the order the first in the company’s X Carrier Series of orders, which expands the company’s fleet of managed vessels to 10. The vessel is scheduled for delivery in 2020, when she will enter into a seven-year time charter contract with TOTAL Gas & Power Chartering, Limited.

TEN Announces Long Term Time Charter

Tsakos Energy Navigation Limited (TEN) announced a new long-term time-charter contract for the Suezmax Triathlon with Sun International Limited/Sunoco Inc. The seven-year contract, with a three-year option, begins in mid January, 2004 upon the expiration of Triathlon's next fixed voyage. The rate obtained for the new time charter has an accretive minimum and provides for profit sharing between TEN and Sun International when market rates exceed the minimum. "We are very excited to announce our latest time charter agreement," stated Nikolas P. Tsakos, President and CEO of TEN. "Once again, TEN has secured an attractive, long-term charter that will help to provide a steady and predictable flow of earnings and strengthen its balance sheet.

Dynagas, Gazprom in New Long-term Time Charter Contract

Photo: Dynagas LNG Partners

Dynagas LNG Partners signed a new long-term time charter contract for the Clean Energy. The Partnership, through one of its wholly owned subsidiaries, entered into a new long-term charter agreement with an affiliate of the Gazprom Group for the employment of its 2007 built 150,000 cbm steam turbine LNG carrier Clean Energy. The charter is expected to commence in July 2018 and will have a firm term of seven years and nine months. The Partnership expects to generate approximately $133.0 million of gross contracted revenues over the life of the contract.

CP Ships Commits to Newbuild Charters

CP Ships Limited today announced its agreement to the long-term charter of nine 4250 teu newly built containerships from Seaspan Container Lines for a term of up to ten years. built by Samsung Heavy Industries of Korea. replace chartered ships with owned ships. growth our requirements have evolved. medium term charter market," commented CP Ships CEO Ray Miles. service its regional trades.

China Shipyard Delays Delivery, Contract Cancelled

Ultrabulk Panamax Bulk Ship

Due to continuous delays in the construction and delivery of two Kamsarmax bulkers, Ultrabulk cancels. The bulkships were originally to be built at Zhoushan Jinhaiwan Shipyard Co. Ltd., China, but the yard failed to finish the construction within agreed contractual delivery terms. The contracts were originally entered into and announced in 2010 (Company announcement # 25/2010) for long term charter of both vessels up to 12 years of duration. Ultrabulk further announces having entered into an agreement to secure a new ECO-designed Supramax bulker of 61…

CP Ships Takes Delivery of TMM Colima

CP Ships Limited has taken delivery of the 3200 teu TMM Colima. It was delivered on schedule by China Shipbuilding Corporation in Kaohsiung, Taiwan. TMM Colima is the third new containership to be delivered under CP Ships' four-year $800 million ship replacement program. It was preceded by sister ship Lykes Ranger delivered in June 2002 and Contship Aurora delivered in September 2002. It is being deployed in the Asia-Americas trade lane. CP Ships is more than halfway through its overall ship replacement program. By the middle of 2003, ten new, 13 used and six long-term charters will have replaced ships on short to medium-term charter. This will increase the owned and long-term committed fleet to more than 70% of total capacity from about 30% when the program started in 2000.

ISC Profit Slip in Q2 2014 but Pay Dividend

Jones Act bulk carrier: Image courtesy of ISC

he Company reported a net loss of $664,000 for the three months ended June 30, 2014. For the comparable three months ended June 30, 2013, the Company reported net income of $1.9 million, which included a non-cash operating gain of $1.8 million. Mr. Niels M. Johnsen, Chairman and Chief Executive Officer, stated, “During the second quarter, our financial and strategic flexibility enabled us to make equity investments in joint ventures owning two new built chemical tankers and two asphalt tankers.

Island Offshore Halts Debt Amortisation Payments

Offshore service vessel owner Island Offshore Shipholding said on Tuesday that it had initiated discussions with its finance providers to address the group's long term financing. Has decided with effect from Nov.

Excelerate Energy Completes FSRU Sale and Leaseback

Photo: Excelerate Energy L.P

Excelerate Energy announced it has completed the long-term sale and leaseback of the FSRU Experience with a wholly owned subsidiary of CMB Financial Leasing Co. Upon completion of the 10-year agreement, Excelerate will re-purchase the FSRU from CMB. The transaction demonstrates the market’s confidence in FSRUs as financeable and dependable assets and positions Excelerate well for future financings as part of its growth strategy. The agreement enables the swap of short-term debt for long-term debt at the ultimate shareholder level…

Maritime Reporter Magazine Cover Dec 2017 - The Great Ships of 2017

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

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