Samudera Shipping Line News

Samudera Shipping Line announced it has entered into deals to acquire two containerships from "unrelated third parties" for an aggregate acquisition price of approximately $59.9 millionThe new vessels, each with a capacity of 1,500 TEUs, are expected to be delivered in the second half of the year, the company said.Samudera said it entered into the deals on June 7 and that the acquisition will not constitute as a “transaction” for the purpose of Chapter 10 of the SGX-ST Listing…

Container, bulk and tankship owners, Samudera Shipping Line, presents its 2012 financial report with the chairman's letter to shareholders. The following is extracted from Mr. "The financial year ended December 31, 2012  saw the Group delivering another year of profitable performance amidst challenging industry landscape, leveraging our competitive position and strengths to meet challenges in Indonesia and the region. Group revenue improved by 3% to $ 467.7 million (USD), from $454.2 million in the previous year (FY11), lifted by the implementation of bunker surcharges in the regional container shipping segment and higher volume handled by the Indonesia domestic container shipping business.

Samudera Shipping Line delivered the first of two new 17,500 dwt tankers to Indonesia's state-owned oil and gas firm Pertamina. The vessel, M/T Sinar Mas, had a long-term contract of 10 years with an option for a two-year extension for a further two years by Pertamina. With the new tanker, Samudera's tanker fleet now comprises of seven vessels. The firm said the shallow-draft vessel, built by Jiangdu Shipyard, was of good quality despite delays in its construction.

A consortium led by Singapore shipping group Neptune Orient Lines (NOL) has put in a $150 million bid for Indonesia's Koja Container Terminal in Jakarta's Tanjung Priok port area. The other members of the group include Singapore government's investment arm, Temasek Holdings, and Indonesian shipping firm Samudera Shipping Line Ltd. Competing against NOL is Hong Kong Tycoon Li Ka-Shing's Hutchison Whampoa, according to a report in the Business Times.

A consortium led by Singapore shipping group Neptune Orient Lines (NOL) has put in a $150 million bid for Indonesia's Koja Container Terminal in Jakarta's Tanjung Priok port area. The other members of the group include Singapore government's investment arm, Temasek Holdings, and Indonesian shipping firm Samudera Shipping Line Ltd. Competing against NOL is Hong Kong Tycoon Li Ka-Shing's Hutchison Whampoa, according to a report in the Business Times.

Evergreen Marine Corporation, Samudera Shipping Line (SSL) and Yangming (UK) (YM (UK)), strengthened their links between China and India with the upgrading of their China – Straits – India (CSI) service. By replacing the existing ships on this service, each with an effective capacity of approximately 1,000 TEU, with larger ships of around 1,200 TEU, the three lines are providing more choice for customers between China and India. Also, YM (UK) is stepping in to replace Hyundai Merchant Marine (HMM), which previously partnered Evergreen and SSL in operating this service. SSL provides three of the five ships for the CSI service with Evergreen and YM(UK) each contributing one ship.

Shipowners are now better placed to cope with soaring fuel prices because of growth in trade as Asia recovers from economic crisis, industry sources and analysts said. The price of bunker fuel, which typically makes up about five percent of a shipper's total operating costs, has - over the past six months - doubled to $140 per ton. The spoils from improved conditions have not been evenly shared within the industry, with tanker owners hit the worst. Three global-pacts among oil producers to cut output and shore up prices have had a negative impact on tanker owners who now face higher bunker costs and lower shipping volumes. The producers agreed to remove from world oil production about 5.1 million bpd of crude oil…

Standard & Poor's said the credit quality of shipping companies across Southeast Asia has suffered in the last two years, with most companies in the "weak to vulnerable" range, compared with "fair to weak" previously. "Earnings vulnerability and aggressive capital structures, characterized by modest and volatile cash flows and high debt levels, have strained the ability of many companies to meet financial obligations in a timely manner," shipping analyst Ee-Lin Tan said. Tan said underpinning the deterioration were limited geographic diversity and exposure to regional trade flows, intense price-based competition led by lower cargo traffic in certain trade routes and excess capacity within several shipping segments.