Moody News

The biggest operational crane on the U.S. Eastern Seaboard towered over Baltimore's port on Friday, ready to begin clearing the wreckage of the Francis Scott Key Bridge days after a cargo ship crashed into it, sending the span crashing into the harbor.Crews were still surveying the damage as of midday Friday. The crane, which can lift up to 1,000 tons, arrived late Thursday night and will probably start hauling debris out of the water on Saturday morning, according to U.S. Coast Guard spokesperson Carmen Carver.A second crane is en route and expected to arrive soon to assist the effort…

Baltimore's Francis Scott Key Bridge collapse could cost insurers several billions of dollars in claims, sources say, but it is too early to calculate the likely full financial losses of the tragedy that has shuttered one of the busiest ports in the United States.Six peopleare still missing after a collision with a Singapore-flagged container ship destroyed the landmark bridge on Tuesday, forcing the closure of the Port of Baltimore.With little clarity on when the port would re-open, insurers and analysts are now assessing the likely losses borne by underwriters across several product lines in

Attacks on merchant vessels in the Red Sea have delayed cargo and sent shipping costs higher, but soft demand and ample ship availability are muting the impact on inflation, analysts from Moody's Investor Service said on Thursday.Ships carrying everything from furniture and apparel to food and fuel are being diverted away from the nearby Suez Canal trade shortcut to the longer and more expensive route around Africa. Rerouting takes vessels and crew out of danger from drone and…

Ocean Yield has agreed to purchase four LR1 product tankers, to be constructed at Guangzhou Shipyard International (GSI) in China.The vessels will be built with a design enabling them to be converted to dual-fuel operation with methanol as fuel. Upon delivery (in 2026 and 2027), the vessels will commence 15-year bareboat charters to guaranteed subsidiaries of Braskem S.A., a global petrochemical company listed on the New York Stock Exchange and based in Brazil. Braskem S.A. currently has credit ratings of BBB- from S&P and Fitch…

Prospects for the crude oil tanker market are expected to stay strong for at least the next year helped by low ship ordering, despite the loss of some trade from Russia due to Western sanctions, leading ship operators say.Russia has increased exports to Asia, Africa and South America following the imposition of Western sanctions for its invasion of Ukraine.

Tankers, fishing vessels and bulk carriers were the three highest sectors for sending distress signals between 2018-2021, Inmarsat's The Future of Maritime Safety Report 2022 reveals.Among the findings from the Inmarsat data was an abrupt spike in GMDSS calls in 2020 at the height of the Covid-19 pandemic, which, according to the report, is likely to have been caused by “issues with crew change, rapid turnaround in ports and fatigue on board”.Peter Broadhurst, Senior Vice President of Safety and Security…

Indonesia's state utility Perusahaan Listrik Negara (PLN) said on Friday that together with the energy ministry it was strengthening a coal delivery monitoring system to ensure enforcement of domestic sales rules and energy security.The world's biggest thermal coal exporter introduced an export ban on Jan. 1 as coal inventories at local power plants were at critically low levels, amid low compliance with a so-called Domestic Market Obligation (DMO).Under the DMO, miners must sell 25% of their output to the local market with a price cap of $70 per tonne for power plants…

A federal appeals court late on Friday reversed course and let stand a lower court order prohibiting the U.S. Centers for Disease Control and Prevention (CDC) from enforcing coronavirus-related cruise ship rules in Florida.The decision is a win for Florida that had filed a lawsuit arguing the CDC curbs made it tough for the cruise industry to recover from the pandemic.The 11th Circuit Court of Appeals in Atlanta had only on Saturday voted 2-1 to block the lower court decision.But in its latest brief statement…

A U.S. appeals court late Saturday in a 2-1 ruling put on hold a lower-court decision that said the U.S. Centers for Disease Control and Prevention (CDC) could not enforce its coronavirus cruise ship rules in Florida.Last month, U.S. District Judge Steven Merryday in siding with Republican-led Florida found the state was "highly likely" to show the CDC exceeded its authority in adopting rules governing the resumption of cruise ship sailing.The brief order from the 11th Circuit panel came about 10 minutes before Merryday's ruling was to take effect on Sunday…

A Federal court in Tampa on Friday granted Florida a preliminary injunction against the Centers for Disease Control and Prevention's (CDC) decision to prevent an immediate resumption of cruise operations.The order will prevent the agency from enforcing against a cruise ship arriving in, within, or departing from Florida.The lawsuit was filed in April by Republican Florida Attorney General Ashley Moody and the state had sought a quick lifting of a "nationwide lockdown" on the cruise industry that has been in place since March 2020.Early in the pandemic…

China extended its impressive trade performance in April, with exports unexpectedly accelerating and import growth hitting a decade high, in a boost to the world’s second-largest economy.A brisk U.S. economic recovery and stalled factory production in other countries hit by coronavirus have propped up demand for goods made in China, analysts say.Exports in dollar terms surged 32.3% from a year earlier to $263.92 billion, China’s General Administration of Customs said on Friday…

The U.S. trade deficit jumped to a record high in March amid roaring domestic demand, which is drawing in imports, and the gap could widen further as the nation's economic activity rebounds faster than its global rivals.Manufacturers lack the capacity to satisfy the surge in demand because of resource constraints and bottlenecks in the supply chain. Inventories are very lean. Demand is being driven by a rapidly improving public health situation and massive government aid to households…

The state of Florida sued President Joe Biden's administration in federal court on Thursday seeking to block the Centers for Disease Control and Prevention's decision to prevent the U.S. cruise industry from immediately resuming operations paused for a year because of the coronavirus pandemic.The suit, filed by Republican Florida Attorney General Ashley Moody in Tampa, asked the court to issue an injunction barring enforcement of the CDC's order and to quickly lift a "nationwide lockdown" on the industry in place since March 2020.

A stuck container vessel in the Suez Canal, which has blocked the flow of goods through the narrow channel, will add strain to global supply chains already stretched by rebounding economic activity and tight shipping container supplies, analysts said on Friday.The 400-metres long Ever Given container vessel has been stuck in the canal since Tuesday, suspending traffic of containers transporting goods, parts and equipment through the shortest sea link between Europe and Asia.The…

Retired New Yorkers Mahlon and Kim Russell have taken 15 cruises over the past 15 years, visiting destinations from Tahiti to St. Petersburg, primarily with Norwegian Cruise Line.After canceling a fall trip to Europe, in July the Russells booked a 10-day cruise around Australia and New Zealand—for January 2022.“We love cruising,” said Mahlon Russell. “But we don’t love it enough to be the first ones out of the gate.”The cruise industry has been hit hard by the coronavirus pandemic…

Ratings agency Standard & Poor’s on Tuesday downgraded bonds of Carnival Corp to junk status, forecasting continued weak demand for the cruise industry hammered by the COVID-19 pandemic.Standard & Poor’s cut its rating on the world’s biggest cruise operator’s secured bonds to ‘BB+’ from ‘BBB-‘, and its unsecured bonds to ‘BB-‘ from ‘BBB-‘. Both are now regarded as non-investment grade or junk bonds.Carnival’s overall issuer credit rating was also lowered to ‘BB-‘ from ‘BBB-‘.

A new model aims to help commercial and public organizations resume operations safely as restrictions around the COVID-19 pandemic begin to ease.Building on guidance from the Centers for Disease Control and Prevention (CDC) and the Occupational Safety and Health Administration (OSHA), ABS Consulting said its Restart Risk Model offers a way for organizations to systematically evaluate the risk of disease transmission to their sites, operations and work areas, and develop a plan…

Norwegian Cruise Line Holdings Ltd has hired investment bank Goldman Sachs Group Inc to explore financing options that could include the sale of a stake in the company, people familiar with the matter said on Friday.Norwegian’s attempt to bolster is finances comes as cruise operators have been forced to suspend their operations due to the novel coronavirus outbreak. They have been left out of a $2.3 trillion stimulus package that U.S. lawmakers have adopted to support the economy…

Cook Inlet Tug and Barge (CITB) is adding a versatile shallow draft tugboat, the Bristol Wind, to its fleet in mid-April. The uniquely designed tug will join her sister vessel, the Capt. Frank Moody, in support of the construction, and oil and gas industries' remote cargo transportation needs along the Arctic coastline."Drawing just 3.2 feet, the Bristol Wind is uniquely designed to operate efficiently as a coastal tug. She has the unique ability to lighten the draft when water…

Global ratings agency Moody's has downgraded the corporate family rating of French shipping major CMA CGM due to its "materially weaker" liquidity. The rating was downgraded to B2 from B1.Concurrently, the company's senior unsecured ratings were downgraded to Caa1 from B3. The outlook was changed to stable from negative."Today's rating action reflects that CMA CGM's liquidity profile has weakened materially in the last 12 months as a consequence of the acquisition of CEVA Logistics AG, although expected by Moody's to improve somewhat in 2020", says Daniel Harlid, Assistant Vice President -- Analyst and lead analyst for CMA CGM.The downgrade of CMA CGM's rating follows the acquisition of CEVA Logistics AG (Ceva…

The outlook for the global shipping sector into 2020 will remain stable as higher expected earnings are counterbalanced by US/China trade tensions and worldwide regulatory risks, according to rating agency Moody’s.According to Moody’s, the key drivers of the stable outlook are a combination of anticipated EBITDA growth of 16%-18% into 2020 (although from a relatively low base in 2018) and largely balanced demand and supply growth."These positives are offset by downside risks from protectionist trade policies and increasing regulation," it said.Recent US and Chinese tariff announcements, upcoming low sulfur fuel rule pose risks, said the report.However…

For the fourth consecutive year, Fitch Ratings has affirmed the Panama Canal's 'A' investment grade rating with a stable outlook for its long-term issuer default rating and its senior unsecured notes.The credit rating agency noted that the Panama Canal is "an underlying asset that is critical not only for Panama, but for international commerce, as demonstrated by its stable volume performance, solid competitive position, and well-diversified cargo mix," causing the Panama Canal volume profile to exhibit high levels of resilience.In addition, Fitch Ratings distinguished the Canal as a key player in global trade with a privileged geographical…

Denmark-based energy giant successfully issued green hybrid capital securities for €600m ($660m) to refinance existing securities issued in 2015.The latest issue will have a maturity in 3019 and first call option after eight years, the Danish energy company said.Investments undertaken by Ørsted A/S in green renewable energy projects will be allocated to the new issue corresponding to the amount issued in accordance with Ørsted’s Green Finance Framework, which has received a second opinion with a Dark Green shading from Cicero.Ørsted A/S is rated Baa1, stable outlook, by Moody’s, BBB+, stable outlook, by Standard & Poor’s, and BBB+, stable outlook…