DSME WIns Order for Five Mega Ships
South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering has secured an order for five new container ships set for delivery next year. The contract is worth KRW 903.9 billion (about USD 762 million), DSME said in a stock exchange filing.DSME announced the order without naming the buyer. But according to a WSJ report, Mediterranean Shipping Co.(MSC) is the company that placed order for five giant container ships in a new sign that ocean cargo carriers are building up their capacity despite falling freight rates and weak trade growth.The report said that the Geneva-based MSC…
UAE Presence Grows in the Maritime World
Over recent years the United Arab Emirates has emerged as an important maritime hub with grand ambitions. Mark Venables visited the region to discover what is driving that growth.When the UAE was elected to the IMO Council as a Category B member, it immediately raised its profile within the maritime community. The Emirates have taken a significant step forward in the maritime world.Despite this success, the region remains a challenging market for shipping and logistics. One of…
Maersk, Major Shippers Hike Gulf-bound Box Rates
Cosco Eyes PIL Takeover
After buying several container factories from its smaller competitor Singapore-based shipping company Pacific International Lines (PIL), China’s Cosco Shipping Holdings Co. is eyeing it as a potential takeover target.The Chinese state-run ocean carrier had bought part of debt-ridden PIL’s container-manufacturing business, and executives at the Chinese carrier believe they could wrap up a deal for the entire business if family-owned PIL’s owners decide to sell, reported WSJ.Cosco…
HMM to Enhance Global On-site Management
The new head of South Korean flag carrier Hyundai Merchant Marine (HMM) Jae-hoon Bae is on a charm-offensive trip to Europe to cement the shipping line's relations with global majors.HMM said Bae, who became HMM's president and chief executive last month, will meet this week with executives at A.P. Moller-Maersk A/S and Mediterranean Shipping Co.First of all, Bae plans to visit the European headquarter of HMM, located in London, to encourage its employees and make sales strategies based on the character of each region after gathering the various opinions from the site.Furthermore…
Update: Maersk Honam Heads for Rebuild
The sound part of the vessel Maersk Honam, which was hit by a serious fire last year, is being transported to Hyundai Heavy Industries Shipyard in South Korea, where it will be rebuilt. The sound section of Maersk Honam was successfully loaded aboard the heavy-lift vessel Xin Guan Hua on open waters outside Dubai (UAE) on Saturday, 2 February. It was expected to pass Singapore Strait on Monday, 18 February 2019. The heavy-lift vessel will deliver the 228.5-metres-long section from midship to stern at Hyundai Heavy Industries Shipyard in South Korea in March…
ONE Expands Asia-South America Service
Ocean Network Express (ONE) announced the further expansion of its Asia - east coast South America service as a follow-up to the earlier announcement detailing the expanded cooperation with Hapag Lloyd.A week ago, ONE announced the expansion of its Asia-South America service. ONE had said it is cooperating with Hapag-Lloyd and Mediterranean Shipping Co. (MSC) in the Asia-South America trade lane.Commencing in the 2nd week of December 2018, the additional weekly offering will enhance ONE’s service frequency and broaden its coverage between Asia and the east coast of South America…
Cosco Shipping Gets US 'Go-Ahead' for OOCL Deal
China’s Cosco Shipping Holdings Co received the clearance of a U.S. national-security review body, removing a major overhang of the USD 6.3 billion deal of taking over Orient Overseas International Ltd (OOCL). According to a Reuters' report, the U.S. Committee on Foreign Investment in the United States had notified it that it does not have any outstanding security issues following an agreement with the U.S. government to divest the Long Beach container terminal business to a third party. Cosco said the U.S.
Five Weeks Later, Maersk Honam is Still Burning
Efforts to suppress a fire on containership Maersk Honam continue more than a month after a blaze aboard the 15,000 TEU vessel killed five crew members. On March 6, a fire broke out in a cargo hold aboard Singapore-flagged Maersk Honam while the vessel was en route from Singapore toward Suez, about 900 nautical miles southeast of Salalah, Oman. At the time of the incident, the ship was carrying 7,860 containers for the 2M Alliance between Maersk Line and Mediterranean Shipping Co. (MSC).
COSCO Books H1 Profit of $288 mln
China's COSCO Shipping Holdings Co Ltd reported a first-half profit on Wednesday and forecast that improved demand in the container shipping market would continue for the rest of the year. China's largest shipping group, which last month offered to buy a Hong Kong peer to become the world's third-largest container liner, said January-June net profit was 1.86 billion yuan ($288.32 million). That matched an estimate it announced in July, citing improved market conditions. It also booked revenues of 43.5 billion yuan for the period.
COSCO Shares Climb After OOIL Bid
COSCO Shipping Holdings Co Ltd saw its stock climb on Monday after bidding $6.3 billion for a Hong Kong peer, a deal that would see it become the world's third-biggest container shipper and underline China's supply-chain ambitions. The offer for Orient Overseas International Ltd (OOIL) comes as China's government pushes to raise the country's profile in global shipping, which dovetails with its Belt and Road initiative aimed at increasing China's influence over distribution from Asia to Europe.
COSCO to Buy OOCL for USD 6.3 bln
Chinese Shipping Major Cosco Group has agreed in principle to buy its shipping rival and Hong Kong’s No. 1 box mover, Orient Overseas Container Line (OOCL), in deal that could be valued around USD 6.3 billion. The takeover will catapult Cosco the world’s third-biggest container carrier after Denmark’s Maersk Line and Swiss-based Mediterranean Shipping Co. In a press release, the State-owned Cosco said that it will pay shareholders of OOCL,, HK$78.67 a share in cash, a 31 percent premium over the stock’s last closing price.
Port Traffic Surges at Long Beach
Renewed activity at the Port of Long Beach’s largest terminal and extra ships calling ahead of the Lunar New Year pushed cargo 8.7 percent higher in January compared to the same month a year ago. Dockworkers moved 582,689 twenty-foot equivalent units (TEUs) last month. Exports were strong, jumping 10.8 percent year-over-year to 118,234 containers. Imports increased 7.4 percent to 298,990 TEUs, while empties sent back to the Far East rose 9.6 percent to 165,465. Growth at terminals was led by the Port’s Pier T terminal, operated by Total Terminals International (TTI).
HMM Acquires 20% Stake in Long Beach Terminal
South Korean shipping line Hyundai Merchant Marine Co. (HMM) said it will buy a fifth of the company that runs the biggest container terminal at Long Beach Total Terminals International terminal (TTI), Calif., the U.S.’s second-largest port. HMM announced that its board of directors decided to buy a 20-percent stake in TTI and equipment-leasing firm HTEC for a combined US$15.6 million. HMM will now become the No. 2 stakeholder in TTI after Geneva-based Mediterranean Shipping Co (MSC). TTI operates terminals at Seattle and Long Beach.
Port of Long Beach Trade Dipped in 2016
Slowed by industry headwinds and challenges that included major customer Hanjin declaring bankruptcy, the Port of Long Beach said it moved almost 6.8 million containers in 2016, its fifth best year ever. Overall cargo declined 5.8 percent in 2016 compared to 2015, as the Port was impacted by new ocean carrier alliances and the August bankruptcy of Hanjin Shipping, a South Korean company and former majority stakeholder at the 381-acre Pier T container terminal — Long Beach’s largest.
Hanjin Creditors Oppose Terminal Sale
US creditors of Hanjin Shipping Co. Ltd. objected to the Korean courier’s efforts to secure a New Jersey bankruptcy court approval of an asset sale to Mediterranean Shipping Co (MSC), reports WSJ. Geneva-based MSC, the world’s second largest container operator by capacity, has offered $78 million for container terminal in Long Beach, Calif. A group of container companies and other creditors concerned that Chapter 15 debtor Hanjin rushed through a sale of equity interest in Total Terminals International LLC and Hanjin Shipping TEC Inc.
Long Beach Approves MSC's Bid for Hanjin Terminal
The Port of Long Beach’s Harbor Commission on Wednesday approved an agreement to replace the bankrupt operator of its largest cargo terminal. The Long Beach Board of Harbor Commissioners greenlighted the move by a subsidiary of Mediterranean Shipping Co. (MSC) to take over sole control of the long-term lease of the port’s 381-acre Pier T container terminal from from Hanjin Shipping, a South Korean ocean carrier that declared bankruptcy on August 31. Previously, MSC held a minority stake in the lease for Pier T, where more than a quarter of the Port’s container cargo is moved.
Maersk, Hyundai Merchant Marine alliance talks in doubt
Hyundai Merchant Marine says still in talks to join 2M; joining an alliance was precondition for HMM debt relief. Doubts about the future of Hyundai Merchant Marine Co Ltd surfaced on Friday after Denmark's Maersk Line said the South Korean shipping firm was no longer being considered for the 2M vessel-sharing alliance. Joining an alliance with major shipping firms was one of the conditions of a debt restructuring deal between heavily indebted Hyundai Merchant Marine and its creditors in May so any breakdown in talks could raise serious questions about the future of South Korea's largest shipping firm. Maersk Line, part of A.P. Moller-Maersk, said it was still in talks with Hyundai Merchant Marine but they were no longer about it becoming an operating partner in the alliance.
HMM to Form Cooperative Relationship with 2M
South Korean shipper Hyundai Merchant Marine Co Ltd (HMM) said on Sunday it has agreed with the 2M shipping alliance to form a cooperative relationship named "2M+H Strategic Cooperation". HMM had previously been in talks to join the vessel-sharing alliance, which includes Denmark's Maersk Line, part of A.P. Moller-Maersk, and Mediterranean Shipping Co (MSC), the world's two largest shipping lines. However, Maersk had said on Friday that the South Korean shipping firm was no longer being considered to become an operating partner in the alliance.
Hyundai Merchant Marine Ties Up with 2M Alliance
Heavily indebted South Korean shipper Hyundai Merchant Marine Co Ltd (HMM) said on Sunday it has agreed with the 2M shipping alliance to form a cooperative relationship that falls short of full-fledged membership. Joining an alliance with major shipping firms was one of the conditions of a debt restructuring deal between Hyundai Merchant Marine and its creditors in May, and the company said on Sunday that the tie-up with 2M met that criteria. Its main creditor, the state-backed Korea Development Bank…
Grand Bahama Shipyard Reports Busy 2016
Caribbean ship repair yard Grand Bahama Shipyard Limited (GBSL) reported a busy 2016 for retrofit, refurbishments and repairs to vessels from the leading cruise lines. GBSL said it performed work on 20 cruise vessels during 2016, with scope of works included significant propulsion and technical systems overhauls, hull treatment, accommodations and public spaces upgrades and the addition of onboard attraction facilities. The trend continues: for 2017, GBSL has confirmed 23 cruise vessels scheduled for refit, refurbishment or revitalization from its customer base.
Hanjin Sells US Terminal Stake to MSC
South Korean ocean carrier Hanjin Shipping Co. signed a deal to sell its stake in the U.S. port operator that runs Long Beach, Calif.’s, biggest container terminal to Mediterranean Shipping Co. (MSC), reports WSJ. Hanjin, which for bankruptcy protection in August, had signed a contract to sell its 54% stake in Total Terminals International LLC to Geneva-based MSC, the world’s second largest container operator by capacity. The exact value of the deal wasn’t known. The Seoul Central…
Long Beach Weighs Offer for Hanjin Terminal
The Long Beach Board of Harbor Commissioners will consider a proposal by a terminal investor to take over a majority stake in a long-term lease to operate the largest container terminal in the Port of Long Beach. If approved, the pact could bring in business to replace the cargo volume lost at Long Beach’s Pier T when South Korea’s Hanjin Shipping declared bankruptcy in August. Terminal Investment Limited (TIL), a subsidiary of the Mediterranean Shipping Co. (MSC), earlier this week announced it had signed an agreement to purchase Hanjin Shipping’s stake in the terminal operator at Pier T.