Marine Link
Monday, January 22, 2018

Marine Leasing News

Martek Offers ECDIS Leasing Package

Martek Marine’s leasing package offers an option to adopt ECDIS early, which they said can help shipowners benefit from increased safety and lower costs. ECDIS product specialist Bentley Strafford-Stephenson said, “DNV research has shown that deploying ECDIS may reduce grounding frequency by at least 30%. Grounding is the third most frequent accident involving ships larger than 100GT and the fourth highest contributor to marine fatalities at 12%. Offering a leasing option is crucial to give shipowners the opportunity to increase safety and limit risk immediately. Martek believes early ECDIS adoption also offers savings in time and cost over paper charts, eliminating the logistical challenge of having paper charts delivered to ships and the time required to manually update them.

Container Barge Runs Aground

Coast Guard Marine Safety Office Jacksonville is overseeing response operations to the grounding of the 250-foot container barge, Guantanamo Bay Express, which was being pulled by the tugboat Spence while trying to leave the St. Johns River in Mayport at 2 a.m. The barge is located on the north side of the Mayport Jetties and is no concern to inbound or outboard vessel traffic at the entrance of the St. Johns River. Pac-Atlantic Marine Leasing, LCC, owner of the Guantanamo Bay Express has taken prompt action and hired Titan Marine, LLC to remove the barge. Plans have not been finalized or approved by the Coast Guard at this time but salvage operations are anticipated to begin tomorrow.

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.

Moran Sells Deck Barge to Private Buyers

U.S. flag, ocean deck barge “Norfolk” (ex-Columbia Norfolk, Ponce Trader, UMTB 331, MLC-331) (Image courtsy Marcon International)

Moran Towing Corporation of New Canaan, Connecticut have sold their U.S. flag, ocean deck barge “Norfolk” (ex-Columbia Norfolk, Ponce Trader, UMTB 331, MLC-331) to a private buyers on the U.S. East Coast who specialize in the transport of aggregates. The 331.3’ x 78.0’ x 20.3’ depth, double raked barge was built in 1982 by Marine Power and Equipment of Seattle, Washington for their affiliated companies Marine Leasing Company and Marine Logistics Corporation to operate in the Puget Sound / Alaskan trade. The ABS +A1 classed barge is fitted with 14.5ft.

Great Lakes' Biggest Dual-Mode ITB Begins Service

One of the most labor- and fuel-efficient bulk material carriers on the Great Lakes entered service in June 2000. The self-unloading barge Great Lakes Trader is owned by Great Lakes Marine Leasing, Portland, Ore., and operated by VanEnkevort Tug and Barge, Bark River, Mich. The 740 x 78 ft. (226 x 24 m) Trader is the largest vessel capable of fitting through the St. Lawrence Seaway locks. Combined with the 10,200-bhp (7,600 bkW) tug Joyce L. VanEnkevort, the new integrated tug/barge (ITB) unit is the biggest dual-mode ITB on the Great Lakes. The 39,600 long ton (40,234 metric ton) capacity Trader was designed by a team of engineers directed by naval architect Joe Fischer, president of Bay Engineering, Inc., Sturgeon Bay, Wisc.

Bisso Completes Heavy Lift Projects

Bisso Marine Co., Inc.’s heavy lift crews have completed several projects since the beginning of the year. D/B Cappy Bisso launched a 200-ft. dining vessel in Algiers Canal for Superior Diving Co. D/C Lilli Bisso lifted and set three 280-ton sections for a 300-ft. oilfield supply tug. The bow, center and stern sections were set on blocks for completion of the vessel by Horizon Shipbuilding of Bayou La Batre, Ala. Lilli Bisso also lifted a 120-ton quarters module in the Algiers Canal for General Marine Leasing. The Blue Water Industries facility at Port Gibson was the sight of a 500-ton jacket-up lift from barge to shore. A 250-ton deepwater…

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.

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.

First Ship Lease Trust Sells Containership Vessel Us$6.2 Mln

First Ship Lease Trust has sold its containership, FSL Busan, for a cash consideration of USD $6.2million.   The compnay will record a gain on disposal of about USD $0.75 million, in 1Q 2018.​  

Halter to Build 740 Ft. Self-Unloading Bulk Carrier

Halter Marine Group, Inc., Gulfport, Miss. has signed a contract with Great Lakes Marine Leasing, LLC, to build a 740 ft. self-unloading dry bulk cargo barge for service on the Great Lakes. The barge, which will be named Great Lakes Trader, will be operated by Van Enkevort Tug and Barge out of Escanaba, Mich. The barge will be built and launched in two halves at Halter's Gulf Coast Fabrication, Inc. in Pearlington, Miss. and towed to New Orleans where the two halves will be joined in Halter Gulf Repair's large floating drydock. Final outfitting will be completed at Halter Gulf Repair by the owner. At 740 ft. overall length with a 78 ft. beam and 45 ft. depth, it will be the largest vessel ever constructed by Halter. It will be the maximum size permitted through the St.

Op/Ed: DPP a Benchmark Toward US Energy Dominance

© kesterhu / Adobe Stock

National Ocean Industries Association (NOIA) president Randall Luthi comments on the U.S. Department of the Interior’s (DOI) 2019-2024 National Offshore Oil and Gas Leasing Draft Proposed Program, which seeks to open nearly all U.S. offshore waters to oil and gas drilling. With 94 percent of our nation’s outer continental shelf (OCS) currently and unnecessarily off limits to oil and gas leasing and exploration, NOIA welcomes the bold and broad offshore leasing proposal released January 4 by the Department of the Interior.

Keppel Explores Sale of Jack-up Rigs to Borr Drilling

Photo: Keppel Corporation Limited

Singapore yard Keppel Corporation is considering a sale of jack-up rigs to Norwegian offshore drilling contractor Borr Drilling, reports The Business Times. The world’s biggest builder of oil rigs is seeking to offload six jack-up rigs for up to US$960 million to the Oslo-listed drilling firm headed by Tor Olav Trøim, said the report. BT also reported that Keppel Capital has already hooked up with structured finance provider Clifford Capital to potentially extend a sale-and-lease-back arrangement for at least one jack-up contracted by Grupo R.

US Closer to Wave Energy off Oregon

Map of potential ocean wave energy resources (Image: National Renewable Energy Laboratory)

As part of President Obama’s Climate Action Plan to create American jobs, cut carbon pollution and develop domestic energy sources, the Bureau of Ocean Energy Management (BOEM) announced today it has taken an important step toward issuing a research lease for a facility to test utility-scale wave energy devices in federal waters off Oregon. The non-competitive lease would be for the offshore area where the Northwest National Marine Renewable Energy Center at Oregon State University (Center) would site the hydrokinetic energy research project.

Finance: Equipment Leasing: A Viable Financing Option for Marine Industry

By James W. In recent years maximizing budget dollars has become an increasing concern for many businesses. Fortunately marine assets have long, useful lives, but the debt required to finance their acquisition often creates a strain on the operator's balance sheet and cash flow. According to the Equipment Leasing Association (ELA), 8 out of 10 businesses in the United States lease some kind of equipment. However, fewer know that leasing, accomplished through a bare-boat charter, is also a smart business decision for obtaining vessels. Because marine assets have long lives, lease payments can be relatively low. Companies can use these cost-savings to improve day-to-day cash flow or to gain a competitive edge by passing the cost-savings along to customers.

Trump Aims to Open Nearly All US Offshore to Oil Drilling

© wanfahmy / Adobe Stock

The Trump administration on Thursday proposed opening nearly all U.S. offshore waters to oil and gas drilling, a move aimed at boosting domestic energy production that sparked protests from coastal states, environmentalists and the tourism industry. The effort to open previously off-limits acreage in the Atlantic, Arctic and Pacific oceans comes less than eight years after BP Plc's Deepwater Horizon oil spill in the Gulf of Mexico - the largest in American history. The disaster…

How Specialty Lenders Can Propel Marine Operators

Eric Dusch

The surge in the shale gas industry in the U.S., as well as stepped up oil exploration in the Gulf of Mexico, is creating enormous demand for marine assets to transport fuels and supplies. To seize this growth opportunity, mid-size marine operating companies with annual revenues from $10 million to $1 billion must address several important issues. First, what is the most efficient way to finance equipment to keep up with the robust demand? Is ownership of the vessel through a loan structure the best option, or would a lease make better use of working capital?

New Consulting Group, Marine-Finance.com

A consortium of commercial marine finance and leasing veterans announced today the launch of Marine-Finance.Com, LLC, a consulting group formed to educate and match lenders, investors and lessors with qualified marine borrowers and lessees. "We see the commercial marine lending and leasing market as one of the most stable segments in this highly troubled economy," said Richard Paine, senior vice president and general manager. Demand for services in the sector remains sound, and the balance sheets of most operators continue to look healthy. Tugs, barges and other commercial vessels have maintained if not increased their value. We educate lenders, lessors, institutional and individual investors about opportunities the commercial marine industry can provide.

GoM Sale Yields $110m in High Bids

As part of President Obama’s all-of-the-above energy strategy to continue to expand safe and responsible domestic energy production, today’s Western Gulf of Mexico Lease Sale 238 attracted $109,951,644 million in high bids for 81 tracts covering 433,823 acres on the U.S. Outer Continental Shelf offshore Texas. A total of 14 offshore energy companies submitted 93 bids. “This sale underscores the President’s commitment to create jobs and home-grown energy through the safe and responsible exploration and development of offshore energy resources,” said Interior Deputy Secretary Mike Connor. Today’s lease sale, which offered 21.6 million acres…

China Shipyard to Build Boxships for Boxmaker

Dalian shipyard to build seven 8,800-TEU container ships for container box manufacturer China International Marine Containers (CIMC). China's largest shipbuilding company, Dalian Shipbuilding Industry Company (DSIC), has received an order for seven 8,800-TEU ships worth US$595 million from container maker China International Marine Containers Group (CIMC).reports Shippingazette.com. The newbuildings are scheduled for delivery in 2015 and 2016. CIMC Financial Leasing (Hong Kong) will first buy the seven vessels and then lease them to a MSC subsidiary. Source: Shippingazetter.com  

Radix Marine to Acquire Patrol Craft Prototype

Radix Marine, Inc, a marine vessel development company specializing in homeland defense initiatives, announced today that it has entered into an agreement to acquire, through an Equipment Lease and Purchase Agreement, the GB Challenger Class Craft, the working prototype of the company's high-speed unmanned patrol watercraft. Radix Marine will own the GB Challenger outright at the conclusion of the five-year lease with Blue Ribbon Leasing and Financial, Inc., which acquired the craft from the builder. Radix Marine had previously arranged for the lease of the GB Challenger but decided against finalizing the agreement in lieu of focusing its efforts on other markets.

Get Ready for Changes in Lease Reporting

Since the middle of 2006, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have been working towards changing how companies report their lease transactions on their balance sheets. Those companies (including publicly traded entities) whose reporting complies with Generally Accepted Accounting Principals (GAAP) must observe the reporting regulations as set down by FASB. The most recent FASB statement regarding lease accounting was made in 1976 and is known as FAS 13. FAS 13 as we know it is undergoing major change.

Get Ready for Changes in Lease Reporting

By Richard J. Paine, Sr.

Since the middle of 2006, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have been working towards changing how companies report their lease transactions on their balance sheets. Those companies (including publicly traded entities) whose reporting complies with Generally Accepted Accounting Principals (GAAP) must observe the reporting regulations as set down by FASB. The most recent FASB statement regarding lease accounting was made in 1976 and is known as FAS 13. FAS 13 as we know it is undergoing major change.

BOEM Proposes New Regulation for OCS

Bulldozers reconstruct the beach and dunes at Long Beach Island, New Jersey, as a dredge ship pumps sand from the Outer Continental Shelf to shore. Photo BOEM

The Bureau of Ocean Energy Management (BOEM) today released proposed regulations that would provide additional clarity and certainty for its Marine Minerals Program regarding negotiated, non-competitive leases for Outer Continental Shelf (OCS) resources such as sand, gravel and shell. The proposed rule describes the negotiated, non-competitive agreement process for qualifying projects, and codifies new and existing procedures for using OCS sand, gravel and shell resources for shore protection…

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

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