Aker Philadelphia Shipyard Delivers 12th Product Tanker
Aker Philadelphia Shipyard (Oslo: AKPS), a leading U.S. commercial shipyard, delivered to American Shipping Company (Oslo: AMSC) the shipyard’s twelfth Veteran Class MT-46 product tanker. The 46,000 dwt vessel, named the Overseas Tampa, will leave the shipyard in the coming days under the operation of Overseas Shipping Group (OSG) to transport petroleum products. The on schedule delivery of this ship marks the successful conclusion of a historic shipbuilding program that began in April 2005.
Heidmar CEO Marc La Monte Passes Away
Heidmar reported the unexpected passing of Marc La Monte of Wilton, Connecticut. Mr. La Monte passed away while on a business flight in Europe on the morning of October 14th. La Monte was a widely respected member of the international shipping industry for 27 years. He served as President and Chief Executive Officer of Heidmar Inc. from April 2012. Prior to becoming CEO, La Montehad been the Managing Director of Heidmar’s VLCC tanker pool, Seawolf Tankers. La Monte spent 16 years at Overseas Shipping Group in various positions, including vice president of OSG’s LNG tanker business.
Four Shipping Companies Upgraded By ING
It looks as though the notoriously cyclical shipping sector is heading back up the mountain, as last week one of the world's prestigious financial firms stamped four companies with an investment ratings uprade. ING Barings last Wednesday raised its ratings on four shipping companies to strong buy from buy. Analyst Stephen Gengaro raised his ratings on shares of Frontline Ltd., OMI Corp., Overseas Shipping Group and Teekay Shipping. Frontline was raised to a strong buy from buy and Gengaro's 2000 and 2001 estimates to $1.60 from 40 cents and to $2.35 from $1.00 to reflect the company's "tremendous" leverage to rising time-charter equivalent (TCE) rates for its very large crude carriers (VLCC) tankers.
ING Barings Raises Rating On 4 Shipping Companies
ING Barings raised its ratings on four shipping companies to strong buy from buy. Analyst Stephen Gengaro raised his ratings on shares of Frontline Ltd. to a strong buy from buy to reflect the company's "tremendous" leverage to rising time-charter equivalent (TCE) rates for its very large crude carriers (VLCC) tankers. The rating on shares of international tanker owner OMI Corp. was raised to strong buy from buy, with revised estimates reflecting upward revisions to his rate assumptions for company's crude tanker and product tanker fleets. The rating on shares of Overseas Shipping Group was raised to strong buy from buy with a $30 price target based on 7.5 times the midpoint of his peak earnings estimate and peak pretax earnings per share estimate.
Cosco Ports Q3 volume up 17%
Cosco Shipping Ports saw third quarter throughput rise 16.6% to 23.10m TEU from 19.81m TEU in the previous corresponding period. "Driven by the growth of international trade and the supports from shipping alliances and shipping fleets of parent company, the Group’s total throughput recorded satisfactory growth," said a company statement. For the nine months ended 30 September 2017, the Group’s total container throughput rose 13.5% to 64,885,641 TEU (corresponding period of 2016: 57,165,661 TEU).
Tonnage Tax Regime Tightens
The Inland Revenue issued new anti-avoidance legislation in December, which will have a significant impact on tonnage tax companies that lease vessels. "These changes will particularly affect the financing of expensive ships such as gas carriers or large cruise ships, as capital allowances will be restricted where a ship costs more than £40 million. regime. to a UK company which has not made a tonnage tax election. companies. capital allowances. being finance leases. * restricted where a ship costs more than £40 million. * denied in the case of certain sale and leasebacks. exchange for a lump sum payment. does not exceed three years. particularly for expensive ships. other tonnage tax regimes, has been reduced. companies looking to raise finance by using sale and leaseback arrangements.
Second Product Tanker Delivered by Aker Philadelphia
Aker Philadelphia Shipyard delivered the second vessel in an up to 16 ship order of product tankers as the 600-ft. long MT46 Veteran Class Overseas Long Beach was transferred to American Shipping Corporation, a subsidiary of Aker American Shipping. The vessel joins its sister vessel, the Overseas Houston, in American Shipping Corporation's fleet of modern, double hull product tankers for charter in the Jones Act market. The Overseas Long Beach is chartered to a subsidiary of Overseas Shipholding Group, Inc. (OSG) who will put the vessel into service for BP. In the coming days, the Overseas Long Beach will sail to the Gulf of Mexico leaving the three other product tankers currently under construction at the yard. The next tanker is scheduled for delivery near year's end.
Globe Express Opens Saudi Terminal Yard
Globe Express Services (Overseas Group) opens terminal yard in Dammam to complete logistics facilities in Jeddah & Riyadh. The company's Dammam Terminal Yard, is a 23,000 sqm facility that includes an open storage area, warehouses, and office buildings that will house the Dammam Branch management and the Transportation Division. While GES (Overseas Group) has had an office in Dammam since 1995, the new terminal yard, which is strategically located at the Dammam Sea Port Zone on the Arabian Gulf…
OOCL Introduces China Pakistan Express 3
Following its announcement of the China Pakistan Express 2 (CPX2) last week, Orient Overseas Container Line Limited (OOCL) is all set to introduce the China Pakistan Express 3 (CPX3), another new Intra-Asia service to expand its product portfolio by providing a more comprehensive service network connecting the markets of India and Pakistan. The CPX3 provides additional sailing frequency from Central China to Mundra and strategically expands its service coverage in Pakistan. "Together with the CPX2…
World-Link Acquires BSM's Telecommunications Business
Bernhard Schulte Shipmanagement (BSM) and World-Link Communications, Inc. have reached a definitive agreement under which World-Link will acquire BSM’s telecommunication services business, Telaccount Overseas, with immediate effect. “This agreement will benefit our customers and crew by unifying communication systems’ capabilities across our fleet and we are pleased to be selling Telaccount Overseas to our longtime partner and service provider, World-Link” said Norbert Aschmann, BSM Chief Executive Officer.
Sovcomflot Reports Loss for 9M 2017
PAO Sovcomflot (SCF Group) reported a $6.8 million loss for the first nine months of 2017, citing the adverse impacts of low spot market freight rates in the conventional tanker sectors. “This year has proven to be a very challenging period for the tanker industry and the situation now faced by many conventional tanker ship owners is especially severe,” said Sergey Frank, President and CEO of PAO Sovcomflot. “An oversupply of tonnage and reduced demand, resulting from oil capacity cut-backs led by OPEC…
OSG to Build More Tankers
Overseas Shipholding Group, Inc. (OSG), signed an agreement in principle pursuant to which Aker Philadelphia Shipyard, a subsidiary of Aker American Shipping ASA, will build up to six additional Veteran Class MT-46 Jones Act Product Tankers (three fixed plus three options). Corporation, OSG will bareboat charter the vessels for initial terms of 10 to 15 years. The agreement in principle is subject to, among other conditions, approval by the Boards of Directors of OSG and Aker American Shipping, preparation and agreement of final documentation and relevant government approvals. between OSG and BP for one more of the 46,000 dwt Jones Act commercial product tankers being built at Aker Philadelphia Shipyard.
Netsco Appoints Flores
Netsco announces Jan M. Flores, as Sr. Director of Business Development. Flores comes to Netsco from OSG (Overseas Shipholding Group) where he headed the FSO Group and was responsible for Business Development in the Offshore market. Prior to his assignment with the FSO Group, Flories was the OSG Technical Project Manager overseeing the development of the MT Overseas Cascade and the MT Overseas Chinook. Flores has also worked for Crowley Maritime Corporation as Manager of New builds in their Technical Services Group.
Seaarland and OSG Set up Suezmax Pool
Amsterdam-based Seaarland Shipping Management and New York-based Overseas Shipholding Group have set up Suezmax International, a commercial pool which will initially operate eight tankers. The Suezmax International Pool is co-managed by in and OSG Ship Management Inc. in . OSG and Seaarland have committed eight ships to the pool so far: the Overseas London, Overseas Newcastle, Genmar Hope, Elisewin, and four newbuildings due for delivery from Nantong Rongsheng Shipbuilding, during 2009. Seaarland has also ordered three 165,000 dwt suezmax tankers on May 30, 2008 to be built at Hyundai Heavy Industries, for delivery in the 2nd, 3rd and 4th quarter 2011. The intention is to commit these ships to the new pool. The Suezmax International pool will have two chartering offices.
Samsung Heavy Venturing Overseas
SHI is ready to invest around $950 million in the overseas shipbuilding facility by 2017, according to SHI’s Chief Financial Officer Chun Tae Heung. Tankers, bulk ships and smaller container vessels might in the future be built in Malaysia, Indonesia or Vietnam, Chun said. SHI is trying to move the production of lower-margin vessels abroad in an effort to cut costs, while reserving domestic operations for building oil-exploration products and larger ships. The shift of attention towards overseas options is in line with the latest merger within the Samsung Group which was carried out to enable SHI to compete successfully with its European rivals Saipem SpA (SPM) and Technip SA. (TEC). ”We believe there will be demand for offshore oil and gas projects in the long term.
COSCO Shipping Ports Reports Better H1 Results
The port terminal operator division of China COSCO Shipping Corp. posted net profits of US$384.7 million, an increase of 123.7% for FY 2017, compared with the corresponding period last year. Total throughput of the Group’s container terminals increased by 11.8% to 41,780,867 TEU for the six months ended 30 June 2017 (1H2016: 37,358,210 TEU); of which about 19.3% (1H2016: 21.1%) or 8,046,468 TEU (1H2016: 7,880,362 TEU) were handled by the Group’s subsidiaries; and the remaining 80.7% (1H2016: 78.9%) or 33,734,399 TEU (1H2016: 29,477,848) were handled by the Group’s non-controlling terminals.
China Merchants Profit up 29pct
While China’s ports continue to face growth pressure, the country’s largest port operator is reaping the rewards of years of investments in overseas projects. China Merchants Holdings (International) reported first-half net profit rose 29 per cent to HK$2.78 billion ($US 361 million) from a year ago, after throughput gains at Chinese terminals exceeded China’s overall container growth rate and traffic through overseas facilities rose at a double-digit clip. The profit is driven by steady growth from ports and contributions from overseas greenfield projects.
OSG Charters Two Product/Chemical Carriers
Overseas Shipholding Group, Inc. signed an agreement with subsidiaries of Cido Tanker Holding Co., a privately held shipping company, to time charter two product/chemical carriers for a period of seven years, with an additional three year extension option for each vessel. The vessels will be built by Hyundai Mipo Dockyard in South Korea and are scheduled to be delivered to OSG in May and June 2008. The two vessels, the Overseas Aquarius and the Overseas Leo, will be sister ships having a capacity of 47,000 deadweight tons and six segregations, and will be able to transport petroleum products, vegetable oils and IMO III chemicals. Delivery of the vessels will increase the number of International and U.S. Flag product carriers in OSG's fleet to 52.
China's Yangzijiang Triples Q3 Profits
Chinese Shipbuilding Group Yangzijiang posted a third quarter net profit of $130 million which is more than a tripling of its profits in the third quarter last year. The group also managed to exceed its target of $1.5 billion in annual orders. This caused the share price to hit a six year high at $1.64 and the group to increase its annual target for orders to $2 billion for this year and and $2 billion for next year. The group expects to construct and deliver up to 50 vessels each this year and the next in spite of increasing steel prices and the Renminbi appreciating against the dollar. Plans to increase capacity were announced that will allow the builder to attract more value added contracts.
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.
RORO Ops by NYK for Ford Plants in India
In 2011, NYK Auto Logistics (India) Pvt. Ltd.(NALI)* was awarded a contract by Ford India for RORO terminal services of finished cars at Chennai and Ennore Port. Based on the service quality, in 2015, NALI and Ford India extended the scope of services to cover Chennai plant stockyard management and inland transportation from plant to Chennai and Ennore ports. With this new scope of business, NALI can provid complete outbound logistics of finished vehicles for the Ford plant in Chennai.
Tesoro Charters Two from OSG Tankers
Overseas Shipholding Group announced that time charter agreements have been signed for two more Jones Act commercial product tankers being built at the Aker Philadelphia Shipyard. The agreements were made between OSG and Gold Star Maritime Company, an affiliate of Tesoro Corporation (Tesoro), an independent refiner and marketer of petroleum products. Tesoro has chartered a total of four Jones Act commercial product tankers from OSG. of ships chartered of OSG's ten-ship order to eight. Four tankers are currently under construction at the yard, with the first, the Overseas Houston, slated to be named on November 11, 2006. The balance of the tankers will be delivered through 2010.
Poseidon to Go Public
Poseidon Containers Holdings, a private equity backed containership operator with an initial fleet of 18 vessels, has filed for an initial public offering. It plans to raise $100 million, which is likely only a placeholder as Poseidon has not specified the number of shares to be offered or the price range. Greece-based Poseidon said it plans to apply to list its shares on the New York Stock Exchange under the symbol PCON. Poseidon's initial fleet of 18 container ships includes five Handymax vessels, two Panamax vessels and 11 Post-Panamax vessels.