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Wednesday, January 17, 2018

Prime Rate News

Hornbeck Offshore Closes New Revolving Credit Facility

Hornbeck Offshore Services, Inc. has closed on a new five- year senior secured revolving credit facility that increased the amount of the borrowing base, extended the maturity, lowered the interest rate and improved the financial flexibility of the covenant package of the Company's prior revolving credit facility, commensurate with its enhanced credit standing. The new revolving credit facility has increased the Company's borrowing base from $60 million to $100 million, with an accordion feature that allows for the potential expansion of the facility up to $250 million in total. The new facility has also extended the maturity of the prior facility from February 2009 to September 2011.

Jo Johnson Becomes UK Shipping Minister

Photo: Jo Johnson's Official Twitter Account

UK Prime Minister Theresa May reshuffled the cabinet replacing John Hayes as the shipping minister with Jo Johnson. Later the government sources confirmed that Jo Johnson was appointed Minister of State at the Department for Transport and Minister for London on 9 January 2018. Jo was Minister of State for Universities, Science, Research and Innovation from July 2016 to January 2018. He was elected Conservative MP for Orpington in May 2010 and re-elected in May 2015. May announced her intention to refresh the cabinet last week.

India Okays Revised Concession Pact for Projects at Ports

Indian Prime Minister Narendra Modi. Photo: PIB

India's Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved amendments in the Model Concession Agreement (MCA) to make the Port Projects more investor-friendly and make investment climate in the Sector more attractive. The amendments in the MCA envisage constitution of the Society for Affordable Redressal of Disputes - Ports (SAROD-PORTS) as dispute resolution mechanism similar to provision available in Highway Sector. The other salient features of the…

Increased Panamax Rates Boost Market Sentiment

Higher panamax freight rates have boosted sentiment in the market amid hopes for further rates increases during the week, shipbrokers said on Monday. They gave as prime example the latest U.S. Gulf to Japan fixture at a rate of $23.25 per ton of heavy grain for mid-July loading dates, this compared with the present Baltic Panamax Index showing an average $22.86 per ton. Firmer fixtures had been also reported for both the Pacific and the Atlantic, brokers said. An undisclosed panamax had been chartered to load 55,000 tons of heavy grains from the River Plate and deliver it to China at a rate of $25.75 per ton, brokers said. Shipbrokers also mentioned the timecharter of the 1999-built 75…

CMES Fleet Adds Bulk Carriers

Photo: China Merchants Energy Shipping Co., Ltd.

The delivery and naming ceremony of PACIFIC MERIT, an energy-saving and environment-friendly bulk carrier with 64 thousand DWT, tailor-made by China Merchants Energy Shipping  (CMES), was held in Chengxi Shipyard on 4 January 2018. Capt. Zhao Yaoming, Vice President of CMES and President of Hong Kong Ming Wah Shipping, and Lu Ziyou, the President of Chengxi Shipyard, attended and witnessed the ceremony. On the same day, CMES held the naming and delivery ceremony for the 44th VLCC NEW PRIME in Dalian COSCO KHI Ship Engineering…

Panamax Market May Get Jump Start From Active Atlantic

The panamax market may see a boost from increased activity in the Atlantic and more business coming from South America, brokers said on Wednesday. Prospects for the market in the short term looked positive, despite a slow pace in freight rates, they also said. Modern panamaxes booked for delivery in the Atlantic in May, followed by a voyage to South America could fetch up to $11,500 a day or even more after negotiations. Older vessels attracted lower rates, brokers said, giving as prime example the 1982-built 60,158 dwt Amolyntos chartered - for prompt delivery Boston for a voyage to South America, followed by redelivery Far East - at a daily rate of $8,700.

Baltic Index Drops to 5-month Low on Sinking Capesize Rates

© Aleksey Stemmer / Adobe STock

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell nearly 5 percent on Wednesday to its lowest in over five months due to tumbling capesize rates. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, slid 57 points, or 4.7 percent, to close at 1,164 points, the lowest since Aug. 14. The capesize index fell 267 points, or 13.28 percent to 1,743 points, its lowest level since Aug. 9 last year.

Panamax Rates Weaken

Panamax freight rates have eased this week, in line with dwindling grain orders, brokers said on Tuesday. Rates dropped under the standard $12,000 a day and shipbrokers said they expected activity in the next week to remain subdued as major grain traders had announced there were no fresh bookings for the first half of April in sight. Nevertheless, the panamax sector is deemed stable, brokers said, as fixture reports for Egypt are on the rise and likely to counter-balance a slowdown of business from South America. Brokers cited as prime example the charter of the 1999-built 72,891 dwt Ad Astra, for delivery in the U.S Gulf by end-March, followed by a trip via Egypt and redelivery set for passing Passero. The daily rate was fixed at $11,300 plus a $235,000 ballast bonus. - (Reuters)

Capesize Rates Pull Baltic Index to 4-month Low

© NS Photography / Adobe Stock

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, hit a more than four-month low on Tuesday, as capesize rates dropped to their lowest since August last year. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, lost 43 points, or 3.4 percent, to 1,221 points, the lowest since Sept. The capesize index fell 221 points, or 9.91 percent, to 2,010 points, its lowest level since Aug. 10 last year.

SS&Y Capesize Indices Rise

Shipbrokers Simpson, Spence and Young's Atlantic Capesize Index rose 53 points to 4,420 in the week ending Nov. 29. "Increasing pressure on fronthaul rates, particularly for modern tonnage, has brought a firm tone to routes to the Far East, and demand for end December in to the start of 2000 will keep owners optimistic that rates will climb further," SS&Y reported. SS&Y's Pacific Capesize Index rose 173 points to 4,455 in the same week. "The Pacific Capesize Index has risen to its highest level since its inception in January 1997 as Chinese inquiry, which has been the prime mover of the recent firmer tone, remained a key feature," SS&Y reported. "It seems quite possible that the firm tone will continue in to the New Year as demand remains healthy," SS&Y added.

Tsakos Announces New Two-Year Employment

Tsakos Energy Navigation Limited (TEN), a product, crude and LNG tanker operator, announced two-year plus one year fixtures at charterers option with minimum rate provisions, for two MR product tankers to a major international end-user. The new charters should generate gross revenues of $22.0 million, excluding potential gains over the minimum rates that can apply in the second year and optional year. The total gross revenue to be generated over a three year period for the two vessels, can amount to over $33.0 million. Both charters are expected to commence within the second half of June 2013. George Saroglou, Chief Operating Officer…

New Mobile Gensets from Caterpillar

Caterpillar Inc. has introduced two new mobile diesel generator sets meeting Tier 4 (Non-road diesel engines) Interim emissions regulations. The XQ200, powered by the fuel-efficient Cat® C7.1 engine, is rated for prime operation at 182 kW; the XQ350, powered by the Cat C13 engine, is rated for prime operation at 320 kW. Both units are sold and rented exclusively through Cat dealers. Equipped with the new EMCP 4.2 control panel, both the XQ200 and XQ350 feature a user- friendly interface and auto-configuration of key performance parameters when voltage or frequency changes are required. The system senses changes and adjusts the parameters for optimum performance.

Rightship Wins PM's Australian Exporter of the Year Award

Global marine and environmental risk assessor, RightShip, has been awarded the Australian Prime Minister’s Exporter of the Year Award by the Hon. Tony Abbott MP at the 2013 Australian Export Awards in Melbourne. RightShip was established in 2001 to address the lack of accessible, transparent data to enable shippers and charterers to identify and avoid substandard ships. Today, the company says it has more than 215 customers in 40 countries and generates 84 per cent of its revenue outside Australia. RightShip’s online marine and environmental risk management system enables customers to identify in advance the 20 per cent of substandard ship operators who account for approximately 70 per cent of total casualties.

New Parker-Racor Snapp Filter from A.S.A.P.

Snapp Filters

A.S.A.P. announced it now offers a quick-to-service small outboard engine filter – an ingenious design from Parker-Racor. According to A.S.A.P., no tools are required for servicing, quick release connectors and a patented priming system, and the compact unit requires only 2-1/2” clearance to change a filter. Time saving in filter replacement and maintenance is unequalled, the company said, as are the premium filtration capabilities of Parker-Racor’s patented Aquabloc media inside the elements. A clear nylon bowl allows a water-in-fuel condition to be immediately visible.

CMIT Welcomes Vietnam PM

Photo: APM Terminals

Vietnam’s Prime Minister Nguyen Xuan Phuc visited Cai Mep International Terminal (CMIT) on July 21st, becoming the first container terminal in the Cai Mep area, part of Saigon Port, to receive the Vietnamese Head of State. CMIT is a joint venture between APM Terminals, which holds a 49% share, Vietnam National Shipping Lines, with a 36% share, and Saigon Port, with a 15% share. Prime Minister Phuc was welcomed by CMIT acting Managing director Nguyen Xuan Ky, who expressed the facility’s appreciation to the Vietnamese national and provincial governments…

First Z-Tech 4500 Tug Delivered

Photo courtesy Robert Allan Ltd.

In late December 2009, the YT 802 Valiant, first of the new series of Z-Tech 4500 Class tugs for the United States Navy Pilots operating in Puget Sound in Washington State was handed over to her eager Owners. After a shakedown period and crew training she was placed into active service in early February 2010. This series of new tugs are being built in Tacoma, WA by J. M. Martinac Shipbuilding Ltd., who are a sub-contractor to Pacific Tugboat Services of Long Beach, Calif., the prime contractor for the delivery of the vessels to the Navy. The design was developed by Robert Allan Ltd.

VLCC Rates Poised To Stay Strong

Owners of VLCCs have been painstakingly building up rates this week, but for owners of million-barrel tankers, the last month's gains have come crashing back down. "(VLCC) tonnage is relatively scarce, especially for early positions, while enquiry is plentiful, and we expect some good times ahead from an owner's perspective," said Oslo ship broker Fearnleys. Westbound VLCCs from the Mideast Gulf gained five points during the week to reach W89, while eastbound VLCCs gained four points to reach W104. VLCCs out of West Africa saw plentiful enquiry at the start of the week, in part by moving in on million-barrel business, brokers said. Transatlantic VLCC freight on Friday was W117.

Panamax Market Should Enjoy Solid Week

Increased demand in the Atlantic is likely to keep Panamax trading into positive territory this week, shipbrokers said on Monday. They said Atlantic Capesize freight rates had risen in recent days, especially for Capesizes available for early loading positions and time-charters. Reports in the sector had suggested Belgium charterer Bocimar had time-chartered a number of Capesizes lately and freight rates had risen sharply on the back of anticipated demand in the area, shipbrokers said. A prime example was a Capesize transatlantic voyage trading at around $15,829 a day, or $1,000 over the rate charged last week for a similar trip. Continued interest in the South American market had also prompted a rise in rates for grain shipments out of the U.S Gulf…

TEN Announces Delivery and Charter of Tanker Newbuildings

Tsakos Energy Navigation Ltd. (TEN) announced the delivery of the 1A ice-class 116,000dwt Aframax product tanker Propontis and the 1A ice-class 36,660dwt Handysize product tanker Arion from South Korea's Hyundai Heavy Industries and Hyundai Mipo Dockyard, respectively. Upon delivery, the Propontis, one of the largest product tankers in the world and the last of the three Aframax newbuildings acquired from Western Petroleum to be delivered, entered a two- year time charter with Neste Oil of Finland, one of Europe's prime independent oil companies with significant ice-class trading requirements. The time charter incorporates a minimum rate which should gross TEN revenues in excess of $21 million over the corresponding charter period, with a 50:50 profit split if rates exceed that minimum.

San Diego Ports Get Fitch A+ Rating

Fitch Ratings has assigned an 'A+' rating to $19.3 million of refunding revenue bonds, series 2013 A, issued by the San Diego Unified Port District. In addition, Fitch has affirmed the 'A+' rating on approximately $39.2 million in outstanding revenue bonds, series 2004 A and 2004 B. The Rating Outlook on all bonds is Stable. The district's assets include real estate holdings in prime tourism/business areas of the city and two niche marine terminals primarily focused on break bulk cargo services. Growth in automobile and specialized equipment handling has been noted. The maritime and real estate revenue base is supported by long-term fixed rents and concession revenues.

Oil Heist Uncovered at Shell's Biggest Refinery

File Image (CREDIT: AdobeStock / (c) Leeylutung)

Police say 17 arrested in connection with oil theft; 11 charged; Shell expects "short delay" in operations due to case. Eleven men were charged in a Singapore court on Tuesday in connection with a large-scale oil theft at Shell's biggest refinery, while police said they were investigating six other men arrested in a weekend raid. Police in the island-state said on Tuesday they had detained 17 men, whose ages ranged from 30 to 63, and seized millions of dollars in cash and a small tanker during their investigations into theft at the Pulau Bukom industrial site…

Cleveland- Cuyahoga County Port Bonds Uprated

Standard & Poor has raised the long-term rating on the Cleveland- Cuyahoga County Port Authority’s development revenue bonds to ‘BBB+. The outlook is stable. In September, Standard & Poor’s upgraded the rating to BBB/Stable. The Port has since secured a new Letter of Credit (LOC) with FirstMerit Bank N.A., headquartered in Akron, Ohio. The characteristics of the new LOC were cited as the prime reason for the upgrade. Port bonds are issued through a program that has a pooled collateral system of reserves, with the most significant one being the LOC. “This action is welcome and will translate into lower costs for borrowers, making our program even more competitive,” said Will Friedman, the Port’s President and CEO.

Prime Resource and Broadband Maritime Sign Agreement and Plan of Merger

Prime Resource, Inc. and Broadband Maritime Inc., a privately held Delaware corporation offering turn key, always-on Internet access to commercial shipping fleets, today announced the signing of a second amendment to the merger agreement previously entered into by the companies on January 15, 2007 and amended on February 13, 2007. On March 16, 2007, Prime Resource, Inc. entered into a Second Amendment to the Agreement and Plan of Merger with Prime Acquisition, Inc., a wholly owned subsidiary of Prime and Broadband Maritime Inc. The Amendment amends the Agreement and Plan of Merger, dated as of January 15, 2007 among Prime, Merger Sub and Broadband Maritime…

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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