Marine Link
Sunday, April 30, 2017

Maersk to Pay $4 Bln for Hamburg Sud

File photo: Hamburg Sud

The world's biggest container shipping company Maersk Line will pay 3.7 billion euros ($4.02 billion) for its acquisition of smaller German rival Hamburg Sud, it said on Friday. Combined, the two companies will be able to realise annual operational savings of about $350 million to $400 million, Maersk Line said in a statement fleshing out detail on the deal announced in December. "By keeping Hamburg Sud as a separate and well-run company, we will limit the transaction and integration risks and costs while still extracting the operational synergies…

Hyundai Heavy Sails Back to Profit in Q1

Photo: Hyundai Heavy Industries

Hyundai Heavy Industries (HHI) has posted a net profit of KRW462.3bn ($409.6m) for the first quarter of 2017, making it the fifth consecutive quarterly profit for the group. This represents a surge of 90% from the previous corresponding quarter. However, sales fell 1.9 percent to 10.76 trillion won. HHI mainly attributes the whooping quarterly operating profit increase to 127.1 billion won operating profits from HHI’s Shipbuilding Division which is 251% up from the first three months last year.

DSME Turns Profit in Q1

Photo: Daewoo Shipbuilding & Marine Engineering

Daewoo Shipbuilding & Marine Engineering (DSME) swung to the black in the first quarter of the year from a year earlier, largely thanks to cost-cutting measures, reports Yonhap. The Korean shipyard reported an operating profit of 292 billion won ($257.57 million) for the January-March quarter, compared with an operating loss of 38 billion won a year earlier. Net profit reached 261 billion won (US$230 million) in the January-March period, compared to a loss of 3.4 billion won in the same quarter of last year, it said in a regulatory filing.

AIDAperla Delivered to AIDA Cruises

Felix Eichhorn, President AIDA Cruises, with Shunichi Miyanaga, President and CEO MHI (Photo: AIDA Cruises)

AIDA Cruises has taken delivery of the 12th vessel of its fleet, AIDAperla, from Japanese shipbuilder Mitshubishi Heavy Industries (MHI). The vessel was commissioned April 27 at a ceremony in Nagasaki, Japan in the presence of Michael Thamm, CEO Costa Group; Felix Eichhorn, President AIDA Cruises; Shunichi Miyanaga, President and CEO MHI; and Kazuaki Kimura, President and CEO, Industry & Infrastructure MHI. In the coming days AIDAperla will set sail for the Mediterranean where the vessel will be christened by model and presenter Lena Gercke on June 30, 2017, in Palma de Mallorca.

Baltic Index Down for Eighth Straight Session

File Image (CREDIT: AdobeStock / (c) Lukasz Z)

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell for an eight straight session on Thursday as rates for panamaxes and smaller vessels slipped, even as capesize rates strengthened. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, was down 13 points, or 1.13 percent, at 1,134 points. The capesize index gained 8 points, or 0.45 percent, at 1,798 points. Average daily earnings for capesizes…

Hyundai Heavy's New Orders Tallied at USD 2.3 bln

Photo: Hyundai Heavy Industries

Hyundai Heavy Industries (HHI) Group, the world’s largest shipbuilding group, announced today that it won 39 ships worth $2.3 billion for January – April period, which is the largest ship orders for the comparable period in three years. HHI Group won 18 ships worth $900 million in April alone. Since the orders include options exercisable by owners to order additional same or similar class vessels, the total orders in April will amount to 31 ships worth $1.5 billion. Considering…

Ethane Carrier GasChem Beluga Named

GasChem Beluga, pictured on the River Tees for its naming ceremony, is an eco-friendly sea vessel that will carry shipments of ethane gas from Houston in the U.S. to SABIC’s Olefins Cracker on Teesside. (Photo: SABIC)

A new liquefied ethylene gas carrier (LEG) was named on Teesside today. Operated by German shipping company Hartmann Reederei and GasChem Services, the new eco-friendly sea vessel GasChem Beluga will carry shipments of ethane gas from Houston to SABIC’s cracker at Wilton on Teesside under a long-term time charter. SABIC recently converted its Teesside cracker during a major investment to enable it to take ethane gas alongside other feedstocks, to make it one of the most flexible and competitive crackers in Europe.

Cox Takes over as Matson Board Chairman

Matthew Cox (Photo: Matson)

Matson, Inc. president and chief executive officer Matthew J. Cox will succeed retiring chairman of the board Walter A. Dods, the company announced today. The appointment becomes effective at the end of the company's annual shareholders’ meeting today, as Dods retires in accordance with the company's corporate governance guidelines limiting board members’ age. “In my nearly 30 years associated with Matson, I've never felt stronger about its leadership and long-term prospects,” Dods said.

First Spanish-built SOV Launched

Photo: GONDAN

The first service operation vessel (SOV) built in Spain has been launched at shipbuilder GONDAN’s facilities in Figueras. This 81.1-meter-long and 17-meter-beam vessel is the first of two new SOVs that GONDAN will deliver to Norwegian ship owner Østensjø Rederi, with whom GONDAN has signed already 13 shipbuilding contracts in the last decade. The launch event was attended by representatives from Østensjø Rederi as well as the charterer of the vessel, Dong Energy. Both vessels are being built according to UT 540 WP design by Rolls Royce Marine.

Norwegian Joy Delivered for NCL

Norwegian Joy (Photo: NCL)

Norwegian Cruise Line took delivery of Norwegian Joy, the brand’s 15th ship and the first custom-designed for the Chinese cruise market, from Meyer Werft during an on board ceremony in Bremerhaven, Germany. The vessel is due to arrive in China in June. “As Norwegian Cruise Line continues our global growth, Norwegian Joy’s delivery marks a momentous occasion in our company’s history, signifying our official entry into the Chinese cruise market,” said Andy Stuart, president and chief executive officer for Norwegian Cruise Line.

Metal Shark Launches Stock Boats Program

Completed vessels at Metal Shark’s Jeanerette, Louisiana production facility (Photo: Metal Shark)

Louisiana-based boat builder Metal Shark says it is ramping up production to build an inventory of stock vessels, with the goal of reducing lead times and enhancing its service to customers. Metal Shark has traditionally custom-built each vessel to accommodate its customers’ unique mission requirements. To continue this practice, vessels built as part of the company’s new Stock Boats program will in most cases be built to a stage where they are awaiting final outfitting. This will reduce overall wait time while still allowing purchasers the opportunity to specify seating…

New Tug, Barge Enter Service for Vane Brothers

Photo: Vane Brothers Company

Marine transportation provider Vane Brothers has added two newly constructed vessels to the company’s growing fleet: the 4,200-horsepower tugboat Philadelphia and the purpose-built asphalt barge Double Skin 510A. Primarily tasked with towing petroleum barges engaged in the North Atlantic coastwise trade, the Philadelphia is the fifth of eight 4,200-horsepower, model bow tugboats contracted by Vane Brothers through St. Johns Ship Building in Palatka, Fla. The first in the series…

Austal Starts Building High-speed Ferry for Denmark

Mols Chairman Frantz Palludan and Austal CEO David Singleton at First Plate-Cutting for 'Express 4' at Austal's Shipyard in Henderson, Western Australia (Photo: Austal)

Australian shipbuilder Austal said it has started construction on a 109-meter high-speed catamaran ferry Express 4 for Molslinjen of Denmark, with the first plate-cutting conducted at Austal’s shipyard in Western Australia. Molslinjen Chairman, Frantz Palludan officially initiated the aluminum plate cutting for Austal’s largest commercial ferry project since 2011 and the largest commercial ferry by volume in the company’s 28 year history. Palludan was joined by Soren Jespersen…

Diana Charters out Sagitta to Hapag-Lloyd

Sagitta (Photo: Diana Containerships)

Diana Containerships Inc. announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Hapag-Lloyd AG, Hamburg, for one of its Panamax container vessels, the MV Sagitta. The gross charter rate is $9,500 per day, minus a 1.25 percent commission paid to third parties, for a period of up to minimum July 7, 2017 to maximum August 15, 2017. The charter is expected to commence on May 12, 2017. Sagitta is a 3,426 TEU container vessel built in 2010.

Seattle Kicks Off Its Biggest Cruise Season

Photo: Don Wilson / Port of Seattle

The Port of Seattle has kicked off its biggest cruise season yet with more than one million revenue passengers on 218 vessels, making Seattle the biggest cruise port on the West Coast. The cruise industry in Seattle is responsible for over $500 million in economic impact to the region, providing more than 4,000 jobs and $18.9 million in state and local taxes, with each homeported vessel generating $2.7 million to the local economy. “A record number of cruise passengers this season means local agriculture and food companies…

Lower Rates for Bigger Vessels Drag Baltic Index Down

© Volodymyr Kyrylyuk / Adobe Stock

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell for the ninth consecutive session on Friday, weighed down by lower rates for larger vessel segments. The overall index — which factors in rates for capesize, panamax, supramax and handysize shipping vessels — fell 25 points, or 2.2 percent, to 1,109. The index registered a weekly decline of about 7 percent. "Limited fresh cargoes in the Pacific market" are putting pressure on the dry bulk market, Clarksons Platou Securities analysts said in a note.

Finland’s Oldest Ferry Goes All Electric

Photo: Visedo OY

From steam to diesel and now electricity: the oldest operating ferry in Finland will tomorrow become the nation’s first all-electric passenger vessel after being fitted with Visedo power. The City of Turku will officially re-launch the historic Föri ferry tomorrow, complete with a new zero-emission electric drivetrain that will deliver greater efficiency, less noise and reduced operating costs. The Föri initially entered service in 1904, after the City of Turku commissioned local shipyards Aktiebolaget Vulcan to build a city commuter ferry to take passengers across the Aura River to Åbo.

Tuco Debuts New Light Dive Vessel

Image: Tuco Marine

Tuco Marine has presented its new vessel dedicated to the diving and subsea market, the ProZero 12m LDV Light Diving Vessel. The boat is designed and optimized to serve as a platform for subsea operations and support of up to three divers. Diving operations include underwater inspection, investigation, construction, repair and maintenance of machinery and structures and recovery of sunken assets. In addition to the large driver and control cabin, the boat is equipped with a working deck and has room for up to three dive control stations in the cabin.

BW Offshore to get FPSO from Keppe

Keppel Shipyard Ltd (Keppel Shipyard), is on track to deliver a Floating Production Storage and Offloading (FPSO) vessel to BW Catcher Limited, a wholly-owned subsidiary of BW Offshore. When completed BW Catcher will be on a 7-year fixed term and 18 years of options contract with Premier Oil and will be deployed to the Catcher Field located in Central North Sea, UK. Keppel Shipyard's work scope on the FPSO include the installation and integration of topside modules. BW Catcher is scheduled for sailaway from the shipyard in the next few months and is on track to achieve its first oil in 2017. "Having worked together on 11 other projects previously, Keppel has proven to be a reliable partner," said Carl Arnet, CEO, BW Offshore.

Case Study: CAD/CAM for Naval Refit

Image: SSI

The ANZAC Class is a ship class of 10 frigates: eight operated by the Royal Australian Navy and two operated by the Royal New Zealand Navy (RNZN). They have an overall length of 118 meters and a displacement of around 3,800 tons. In 2014, New Zealand ordered extensive modernizations to its frigates’ core combat and related systems. This would require the integration of the Lockheed Martin CMS 330, integrated with radar improvements, MBDA’s independently-guided Sea Ceptor missiles and an extensive array of other modern equipment.

Daewoo Shipbuilding books first Quarterly Profit in 4 years

File Image (CREDIT: AdobeStock / (c) Burnel11)

South Korea's Daewoo Shipbuilding & Marine Engineering Co Ltd posted its first quarterly profit in more than four years on Thursday, as on-time delivery of higher-margin vessels as well as cost-cutting measures helped the bottom line. The world's largest shipbuilder in terms of orderbook reported an operating profit of 292 billion won ($257.57 million) for the January-March quarter, compared with an operating loss of 38 billion won a year earlier. Revenue came in at 2.8 trillion won, compared with 3.5 trillion won a year earlier.

Becker Marine Systems Eyes Growth in Asia

Photo courtesy of Becker Marine Systems

Becker Marine Systems says it is continuing its successful entry into Asian countries such as China, Japan and South Korea, despite an ongoing crisis in the shipbuilding industry. Now the Hamburg-based company is opening a branch office in Kobe, Japan, and has formed a manufacturing partnership with Murakami Iron Works for producing containership rudders. Becker Marine Systems has had a presence in the Asian maritime industry for decades. Recently the company delivered the largest flap rudder in the world.

Horizon Delivers Towboat to FMT

Bayou La Batre, Ala. shipbuilder Horizon Shipbuilding, Inc. said it has delivered the M/V Victoria Pasentine, a 120’ towboat with a retractable pilot house, to its home port of New Orleans. The vessel, the 20th built by Horizon for Florida Marine Transporters (FMT) during their nine years of doing business together, was completed and delivered on April 11, 2017. The steel construction Victoria Pasentine is 120’-0” LOA x 35’0” x 11’-6”, weighs in at 387 gross tons, and has an ABS Load Line Certificate to operate in the waters between Chicago to Burns Harbor for fair weather voyages. With the house fully retracted, the max air draft is 17’-8”. It is also outfitted for service in certain areas restricted to overhead clearances and draft limitation.

China Launches First Home-built Aircraft Carrier

(Photo: Feng Kaixuan / Ministry of National Defense of the People's Republic of China)

China launched its first domestically built aircraft carrier on Wednesday amid rising tension over North Korea and worries about Beijing's assertiveness in the South China Sea. State media has quoted military experts as saying the carrier, China's second and built in the northeastern port of Dalian, is not expected to enter service until 2020, once it has been kitted out and armed. Foreign military analysts and Chinese media have for months published satellite images, photographs and news stories about the second carrier's development. China confirmed its existence in late 2015.

Hunter Buys Five Capsize Bulkers

Hunter Maritime Acquisition Corp. said it has entered into definitive agreements pursuant to which it has agreed to purchase, for an aggregate purchase price of $139.4 million in cash, five identified Capesize dry bulk carriers in an en-bloc transaction from five Cyprus-based companies affiliated with one or more members of the Oskar Wehr group of companies of Hamburg, Germany. The vessels were built by Chinese shipyard New Times Shipbuilding Co. Ltd. and consist of MV Charlotte Selmer (2011), MV Greta Selmer (2011), MV Tom Selmer (2011), MV Lene Selmer (2010) and MV Hugo Selmer (2010). The vessels have a combined cargo-carrying capacity of approximately 876,352 deadweight tons and an average fleet age of approximately 6.2 years.

Baltic Exchange Chief Outlines Growth Plan

Newly appointed Baltic Exchange Chief Executive Mark Jackson has set out the Exchange’s vision of the near-future in a wide-ranging speech in Singapore during the concurrent MPA Singapore Maritime and Singapore Iron Ore Weeks. “The recent acquisition of the Baltic Exchange by the Singapore Exchange (SGX) has reinvigorated this key international maritime institution, allowing us to grow our leadership profile and play a bigger role than ever before in setting standards, building consensus and leading change in the shipping markets. These are bold plans and will ensure that the Baltic Exchange remains at the heart of the bulk shipping industry for the long-term.

UK P&I Club Advises On Hatch Cover Maintenance

Photo: (c) Lidian Neeleman / Adobe Stock

The UK P&I Club’s Loss Prevention Department, in conjunction with the IMCS Training Academy, advises on the importance of hatch cover maintenance: “Whether a ship’s hatch covers are weathertight is a seemingly simple question that should have a “Yes” or “No” answer. However, coming to the right conclusion is not as easy as may initially be assumed, requiring an understanding of hatch covers, their operation and industry requirements. “Ensuring hatch covers are well maintained…

Baltic Index Down on Weaker Rates

File Image: CREDIT FedNav

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Wednesday on weaker rates for panamaxes and smaller vessels, even as rates for capesizes rose. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, fell for the seventh straight session and was down 7 points, or 0.61 percent, to end at 1,147 points, its lowest since mid-March. The capesize index snapped a six-session losing-streak and gained 23 points, or 1.3 percent, to 1,790 points.

CMA CGM Otello Largest Box Ship to Call Indonesia

CMA CGM Otello. Photo: CMA CGM

CMA CGM Otello has arrived Indonesia as the largest container vessel to call the country at the Jakarta International Container Terminal. The occasion also celebrated her impending maiden voyage for the industry’s first direct service from Indonesia to the United States (U.S.) on 24 April. Officiating the event was Minister of Transportation, Mr. Budi Karya Sumadi. He joined some 350 guests including various government officials as well as industry stakeholders at the milestone celebration.

Demolition Activity Weakens as BDI Moves Higher

Graph: BIMCO

After the Baltic Dry Index (BDI) had its seasonal weakness around the Chinese New Year in early February, stronger-than-expected demand came from across the board and lifted freight rates, says BIMCO market analysis of Dry Cargo. This brought earnings into profitable levels for a couple of days, as the BDI passed 1,282 on 27 March 2017. If earnings are at profitable levels now, how come BIMCO’s Road to Recovery keeps mentioning 2018 and 2019? That’s because it focuses on full year profits for all dry bulk segments. That would require a full year where the average BDI is above 1,280.

196 Ships Broken Worldwide in Q1

© katiekk2 / Adobe Stock

Of the 196 ships sold for scrap in the first quarter of 2017, 65 percent ended up on beaches in India, Bangladesh and Pakistan, said South Asia quarterly update of NGO Shipbreaking Platform. 128 ships were sold for scrap to the South Asian beaches in the first quarter of 2017. 51 of the beached vessels were containerships. The other main shipbreaking destinations, Turkey and China, received 36 and 28 vessels respectively. Four ships were destined for recycling in other locations outside the main five breaking nations.

Container Shipping: New Networks in Focus

File photo: Hapag-Lloyd

The most recent available data show that demand for the container shipping grew by 2.7 percent in 2016. With the supply side growing by only 1.3 percent, this meant that the fundamental market balance improved for the first time since 2011. This development is primarily due to decisive actions by ship owners who sold excess tonnage for demolition. Hopefully, improved earnings will also follow soon. The metric-ton-mile demand side has grown by an average of 3.4 percent annually during 2012-2016. This is a new and lower growth level that has taken some time for the industry to get used to.

New Dredger Launched for Gippsland Ports

Photo: Damen

The Trailing Suction Hopper Dredger (TSHD) 650 ordered by Gippsland Ports of Victoria, Australia, in December 2015 has recently been launched at Damen Yichang Shipyard in China. The vessel, named Tommy Norton, is now alongside the yard’s new quay undergoing final commissioning, after which she will sail for Shanghai to undertake sea trials. Once those are completed she will sail for Australia on her own keel for dredging trials and delivery. The official handover will take place in August.

New Coal Carrier Enters Service for JERA Singapore

Isuzu Maru (Photo: NYK Line)

On April 14, newly constructed coal carrier Isuzu Maru was delivered at Oshima Shipbuilding Co. Ltd. in Saikai, Japan. The new vessel will be operated by NYK Bulkship (Asia) Pte. Ltd., an NYK group company located in Singapore, for the transport of coal for JERA Trading Singapore Pte. Ltd., a coal trading corporation owned by JERA Co., Inc. (67 percent) and EDF Trading Limited (33 percent). JERA Co., Inc. The delivery and naming ceremony held at the shipyard was attended by Tomohiko Ono…

Nearly Half of Interlake Fleet Fit with Scrubbers

Photo: Interlake Steamship Company

The M/V Mesabi Miner has sailed from Fincantieri Bay Shipbuilding Company in Sturgeon Bay, Wis., becoming Interlake Steamship Company’s fourth self-unloading bulk carrier to be outfitted with exhaust gas scrubbers. Interlake became the first U.S.-flag fleet to test freshwater scrubbers on the Great Lakes in April 2015 after pioneering the emission-reduction technology on its M/V Hon. James L. Oberstar. In 2016, the company outfitted its first thousand foot vessel, the M/V James R. Barker, and its 826-foot M/V Lee A. Tregurtha in its second phase of exhaust gas scrubber implementation.

Scorpio Bulkers Charters in Ultramax Vessel

Dry bulk vessels owner Scorpio Bulkers Inc. said it has entered into a time charter-in agreement with an unrelated third party on one Ultramax vessel.   The agreement is for two years at approximately $10,125 per day with an option to extend the agreement for one year at approximately $10,885 per day. The time charter is expected to commence prior to the end of October 2017.

AEGIR-Marine Adds Stabilizer Repair Services

AEGIR-Marine, full service provider for stern tube seals and propulsion systems for the maritime industry, said it has added stabilizer and steering gear repair services to its portfolio of maritime services. In February 2017 the company reinforced its team with Alan, a specialist in stabilizer engineering services. The Dutch company works with brand independent parts and provides service and parts for all major propulsion systems. AEGIR-Marine is now able to offer its ship owning customers a complete and integrated overhaul service. Of all the stabilizers, 99 percent are applied in navy and cruise ships and ferries. In cruise ships and ferries to prevent passengers from becoming sea sick. Navy vessels have to be swift and agile and are therefore sensitive for rolling.

Baltic Index Down For Sixth Straight Session

© Hellen Sergeyeva / Adobe Stock

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell for the sixth consecutive session on Tuesday on lower rates for larger vessel segments. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, shed 16 points, or 1.37 percent, to 1,154 points. The capesize index lost 13 points, or 0.73 percent, to 1,767 points, its lowest in over six weeks. Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $81 at $12,879.

Kartsonas Joins Seanergy Board

(Photo: Seanergy Maritime Holdings Corp.)

Dry bulk vessels owner and operator Seanergy Maritime Holdings Corp. has appointed Ioannis “John” Kartsonas as a member of its board of directors, effective May 4, 2017.  Kartsonas has more than 18 years of experience in finance and commodities trading. He is currently the Principal and Managing Partner of Breakwave Advisors LLC., a commodity-focused advisory firm based in New York. Prior to that, he held various senior positions in investment management and research focusing in shipping and commodities. He has earned an MBA in Finance from the University of Rochester. 

[Update] Two Dead in Bulk Carrier Explosion

At approximately 7:45 p.m., Monday, the captain of the bulk carrier Tamar reported that a second crewmember was killed from an onboard explosion. The New York Air National Guard’s 106th Rescue Wing pararescuers arrived on board the Tamar at about 9:30 p.m., after deploying from their HC-130 with two small boats and advanced life-saving equipment. They are staying with the ship until higher medical authority can take over care of the injured crew. The Portuguese Coast Guard are scheduled to launch a helicopter and pick up the injured crew members and bring them to Ponta Delgada. They are expected to be within range of the Azores, Portugal within 24 hours.

Navios Maritime Acquires One Capesize Vessel

Image: Navios Maritime Partners

Navios Maritime Partners, an international owner and operator of drybulk and container vessels, announced that it has agreed to acquire one 2010-built Capesize vessel of 178,132 dwt for a purchase price of $27.5 million. The vessel is expected to be delivered to Navios Partners' owned fleet during the third quarter of 2017. The vessel is expected to generate approximately $3.7 million of annual EBITDA based on current rate environment (Clarkson’s 1-year time charter rate for Capesize vessels as of April 21…

Fatal Bulk Carrier Explosion off Cape Cod

An explosion aboard Marshall Islands-flagged bulk carrier Tamar has killed one crewmember and left three others severely injured roughly 1,300 miles offshore Cape Cod, Mass. At approximately 7 a.m., Tamar’s captain contacted watchstanders at the U.S. Coast Guard command center reporting an explosion in the ship’s forward storeroom killed one crewmember and caused three others to suffer massive burns and are in need of immediate medical attention. The U.S. Coast Guard is coordinating with the New York Air National Guard’s 106th Rescue Wing and the Canadian and Portuguese Coast Guards to provide a medical emergency response. The New York Air National Guard’s 106th Rescue Wing launched an HC-130 aircrew with six pararescuers and one combat rescue officer.

Private Equity Boost for Hyundai Samho

South Korea’s Hyundai Samho Heavy Industries (HSHI), a shipbuilding affiliate of Hyundai Heavy Industries (HHI), said it has attracted 300 billion ($264 million) won investment via pre-IPO. Under the agreement signed with Korean private equity firm IMM Private Equity, HSHI will issue 5.36 million new convertible preferred shares and IMM PE will pay 300 billion won ($264 million) in total to acquire the shares at 56,000 won per share. The deal brings HSHI’s total market value at 2.5 trillion won ($2.2 billion). HSHI said it plans to finalize the approval of the deal early June this year through the meeting of board of directors, and to use the investment to lower its debt-to-equity ratio to 78.1 percent from current 96.4 percent.

Viking Line Inks Shipbuilding Deal with Xiamen

Image: Viking Line

Finland based Viking Line said it has signed a conditional contract with Chinese shipyard Xiamen Shipbuilding Industry Co. for the construction of a new passenger cruise ship for delivery in 2020. A final agreement is subject to the approval of the board of directors of both parties, as well as financial arrangements entered. The total contract amount is about €194 million and includes an option on another vessel. The new 218-meter-long vessel with a gross registered tonnage of 63,000 metric tons would enter service on the Turku, Finland – Åland Islands–Stockholm, Sweden route.

Damen Celebrates 90 Years

(Photo: Damen)

With nine decades of operations in the shipbuilding industry under its belt, Damen has grown from small beginnings in the 1920s into a renowned maritime service provider that employs 9,000 people. The expansion of Dutch rooted Damen has been global, with growth that can be viewed in terms of its yards, service hubs and other subsidiary companies as well as a globally-operating client base. For 90 years, Damen’s vessel designs have served customers operating on all over the world. Damen was originally established by two brothers, Jan and Rien Damen, in 1927.

Economic Indicators Pointing Up -BIMCO

© Dmitry V. Petrenko / Adobe Stock photo

The recent months’ uptick in global indicators, which implies a strengthening in the global economy, is not sufficient for the patient to be discharged yet. The state of the global economy is still uncertain, despite stronger growth dynamics in advanced economies, and not least in China. When the IMF updated its outlook for advanced economies for 2017 and 2018 in January, it was the first time since 2007 that an IMF January update lifted expectations for the present and coming years.

World Record Lifeboat Boarding

Photo courtesy of Palfinger Marine

The first full scale boarding test of the world’s largest lifeboat, Palfinger Marine's new flagship for the cruise industry, landed the company a new world record. In 2015 Palfinger Marine won the impressive contract for delivery of 24 tenders, 12 lifeboats, 36 davits and six rescue boat stations to a series of cruise ships being built by STX France. The complete lifesaving package is now in production, and April 20 marked a huge milestone for the project: The crucial full scale boarding test of the new MPC 49 – the world’s largest and Palfinger Marine's flagship lifeboat.

Baltic Index Down on Weaker Capesize Rates

File Image (CREDIT: AdobeStock) / (c) n neeleman)

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Monday on weaker rates for large vessels. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, was down 25 points, or 2.09 percent, at 1,170 points. The capesize index lost 50 points, or 2.73 percent, to 1,780 points, its lowest in over six weeks. Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $409 at $12,960.

Japan Steelmakers Scramble for Coking Coal

File Image (CREDIT: AdobeStock / (c) Lukasc Z) )

Japanese steelmakers have bought coking coal from the United States, Canada and China to replace supply lost after a cyclone closed rail links in Australia, their biggest supplier, industry and trader sources said. Still, the Japanese buyers are paying nearly double the $150 a tonnes price that they were discussing with sellers for second-quarter supply before the supply disruption. The supply talks are now on hold and prices will likely stay high until full volumes start flowing again. In 2016, Japan bought about 71 percent of the 59.9 million tonnes of coking coal it consumed from Australia.

Incat Crowther Designs 18m Dive Support Vessels

Photo: Incat Crowther

Incat Crowther has announced its recent contract with Legacy Marine Group of Port Elizabeth, South Africa for the design of two new 18 meter catamaran dive support vessels to be built for Stapem Offshore for operation in the coastal waters off Angola. The vessels will feature a customized design specific to supporting offshore dive operations. The aft exterior deck utilizes available space by combining deck lockers and racks for diving equipment storage with a covered dive prepping area.

CMA CGM to Tap Indonesian Market

Photo: CMA CGM

CMA CGM aims to increase its market share in Indonesia to 20 percent by year-end from the current 13 percent, reported The Jakarta Post. The company's senior vice president in Asia, Jean-Yves Duval said that with aggressive marketing, as well as longer and more efficient routes, we believe we can have 20 percent of the market by end of 2017. Recently, the Transportation Minister Budi Karya Sumadi and PT Pelabuhan Indonesia II President Director Elvyn G Masassya welcomed the arrival of the largest container ship CMA CGM Otello which berthed at Jakarta International Container Terminal.

Yang Ming Halts Container Service to Iran

Taiwan’s troubled Yang Ming Marine Transport Corp is halting its container service to Iran, becoming the first foreign shipping line to abandon the route a year after international sanctions on Tehran were lifted, Reuters reported. Yang Ming announced in a regulatory filing it had suspended its share trading until May 4 in an effort to reduce losses from a global downturn in shipping. Yang Ming, the world’s ninth largest container shipping line, is a comparatively small player in Iran, calling there just once a week. Several larger shipping lines have begun serving Iran since sanctions were lifted a year ago. An executive with Keelung-headquartered Yang Ming said the firm had “ceased direct services to Iran on concerns of rising tensions there”.

DSME Deal Non-starter

File Photo: Daewoo Shipbuilding and Marine Engineering

The creditors of Daewoo Shipbuilding & Marine Engineering (DSME) still remain undecided over afor the shipyard's latest deal, further complicating troubles for one of the country's major shipyards, Yonhap reported. DSME  clinched a US$250 million deal to build three very large crude carriers (VLCCs) on April 4. Under the deal with Maran Tankers Management, a unit of Greece's largest shipper Angelicoussis Shipping Group, Daewoo Shipbuilding will deliver the 318,000-ton VLCCs by 2018.

Austal Delivers Expeditionary Fast Transport Ship to Navy

Pic: Austal

Austal USA has delivered its eighth expeditionary fast transport ship to the U.S. Navy. The 338-foot long Yuma is an aluminum catamaran capable of transporting 600 tons, 1,200 nautical miles at an average speed of 35 knots, and is designed to operate in austere ports and waterways, providing added flexibility to U.S. warfighters worldwide. The ship's flight deck can also support flight operations for a wide variety of aircraft, including a CH-53 Super Stallion. “It’s so exciting to see YUMA join the fleet; an incredible ship built by incredible people”.

Newark Container Terminal Handles Record Volumes

Photo: PNCT

Port Newark Container Terminal (PNCT) handled a record number of container volumes without disruption to its customers following its January 2017 upgrade to the N4 terminal system. The move to Navis N4 is part of PNCT’s $500 million infrastructure modernization project that is expected to nearly double the terminal’s capacity by 2019. Located within the Port of New York and New Jersey—the largest port on the East Coast and third largest in the U.S.—PNCT is among the most important terminals responsible for moving cargo throughout the nation and abroad, handling 1.3 million TEUs annually.

Seattle/Tacoma Box Volumes Rise in March

(Photo: The Northwest Seaport Alliance)

Total domestic and international container volumes at the Port of Seattle and Port of Tacoma increased by more than 14 percent for the month of March, and year-to-date volumes were up 10 percent. March international container volumes performed strongly post-Lunar New Year. At 120,018 TEUs (20-foot equivalent units), full imports grew almost 26 percent compared to March 2016. At 99,603 TEUs, full exports were up more than 9 percent in March, making it the strongest month for exports this year.

DCNS to Build Next French Naval Frigates

Image: DCNS

DCNS said it has been awarded a contract from the French Defense Ministry for the development and construction of five intermediate-size frigates (FTIs) intended for the French Navy. DCNS will propose a French version of its new BELH@RRA frigate. The first of the five frigates from this French Defense Procurement Agency (DGA)-managed program should be delivered in 2023 with an entry into active service in 2025. The new BELH@RRA frigate will be designed and developed by DCNS, in joint project management with THALES for the development of the new-generation radar it will be equipped with.

Germany Vows to Reach 'Fair Contract' for New Warships

German Defence Minister Ursula von der Leyen vowed on Friday to press a consortium led by Luerssen Werft of Bremen for a "fair contract" for five new warships, saying the group's initial bid was too high. "My goal is to get the contract started in this legislative period, but we want a good contact, we want a fair contract and above all a realistic one," von der Leyen told reporters on Friday. Defence industry sources said last week the German government had rejected the initial bid from the consortium before it exceeded the budget target of 1.5 billion euros ($1.59 billion). The Handelsblatt newspaper reported this week that the bid came in at 2.9 billion euros, nearly twice the expected amount.

New Horizons: Cruise Industry Challenges & Solutions for 2017

Image: GE

Approximately 130 million Chinese citizens travel internationally, making China the world’s largest outbound travel market in the world. With one-sixth of the world’s population, many recognize this country as a market with huge potential. Until a few years ago, travel by ship was a common mode of transport, but China’s rapid economic evolution has attracted more people to leisure travel opportunities and the luxury holiday experience cruise liners can offer. It is anticipated that the number of Chinese passengers will reach 4.5 million by 2020…

Greece Gets Three Improved Bids For Thessaloniki Port Sale

Greece received three improved binding financial bids for a majority stake in Thessaloniki Port , its second-largest, the country's privatisation agency (HRADF) said on Friday. Last month HRADF got three bids for a 67 percent stake in Thessaloniki Port. The bids were submitted by Philippines-based International Container Terminal Services (ICTS), Dubai-based P&O Steam Navigation Company (DP World) and German private equity firm Deutsche Invest Equity Partners, jointly with France's Terminal Link SAS. After unsealing the financial offers this month, HRADF asked the suitors to improve them by April 21. The improved offers will be unsealed at a board meeting on April 24, HRADF said. The current market value of the stake on sale is 138.8 million euros.

Ellicott Refurbishes Cutter Dredger

Photo: Ellicott

While Ellicott is known primarily for dredge design and manufacturing, it also offers services for refurbishment and modernization of any manufacturer’s dredge. Ellicott said it has completed the refurbishment of the Great Lakes Dredge & Dock (GLDD) 12” (300 mm) cutter dredge Commodore. After extensive flood damage, GLDD hired Ellicott to refurbish and modernize the Commodore, a non-Ellicott dredge, including hydraulics, electric controls and the booster pump. One of the main improvements was a comprehensive upgrade to the Commodore’s hydraulic system.

FREMM Rizzo Delivered to the Italian Navy

Photo: Fincantieri

The frigate Rizzo was delivered to the Italian Navy at Fincantieri’s shipyard in Muggiano, La Spezia. It is the sixth vessel of the FREMM program – Multi Mission European Frigates – commissioned to Fincantieri within the international Italian-French program, coordinated by OCCAR (the Organization for Joint Armament Cooperation). Orizzonte Sistemi Navali (51 percent Fincantieri and 49 percent Leonardo) is the prime contractor for Italy in the FREMM program, which envisions the building of 10 units, all already ordered.

Baltic Index Falls to Weakest Since Mid-December

© norinut / Adobe Stock

The Baltic Exchange's main sea freight index marked its biggest percentage decline since mid-December on Friday as rates for larger vessels dipped due to limited activity. The Baltic index, which tracks rates for ships carrying dry bulk commodities, was down 3.86 percent. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, was down 48 points at 1,195, its weakest since March 22. "Capesize and panamax vessels remain under pressure to close the week as both the Pacific and Atlantic markets remain rather quiet…

St. Johns Building Landing Craft Series

Photo: SJSB

Palatka, Fla. shipbuilder St. Johns Ship Building (SJSB) said it is currently constructing the first of three new vessels in a series of 190 foot landing crafts for a Caribbean group. This vessel will be powered by twin 700 HP Cummings QSK19 with Schlottle rudder propellers. The vessel will also include a 22 inch electric Westmar bow thruster, a hydraulic bow ramp and two 99 KW John Deer generators. This landing craft features open deck with 6400 square feet of cargo space. A raised two story deck house on the aft of the vessel allows for unimpeded cargo room from the bow to stern.

Australian Built Ferry Heads for Denmark

Photo: Peter Harmsen / Incat Tasmania

A new generation fast ferry has left Tasmania on her delivery voyage to Denmark via the Panama Canal. The Express 3 is a 109 meter long high speed vehicle/passenger ferry from Australian shipbuilder Incat Tasmania for Danish operator Molslinjen, becoming the fourth Hobart-built catamaran in the company’s current fleet. An entirely new generation fast ferry, the 109 meter wave piercing catamaran Express 3 has evolved from Incat’s well proven 112 meter catamaran range which first entered commercial service in mid-2007. Incat’s Tim Burnell commented, “The design brief was simple.

Shanghai Grapples with Traffic Congestion

File Image (CREDIT: AdobeStock / (c) zhu difeng)

The world's busiest container port, Yangshan in China's business hub of Shanghai, is battling severe congestion wrought by dense fog, higher-than-usual volumes and the aftermath of a shake-up in shipping alliances, ocean carriers and port officials say. More than 100 container vessels are now waiting outside the port, where the average waiting time at berth last week went up 6.2 percent, to 18.2 hours, versus the previous week, according to shipping software provider CargoSmart.

Piraeus Targets Cruise Sector

File Image: Ferries in passenger port in Piraeus, Athens, Greece. CREDIT: AdobeStock / (c) AnastasiiaUsoltceva

Piraeus Port, Greece's largest, aims to increase its cruise traffic from 1 million passengers a year up to 1.5 million in the short-term and to 3 million long-term, its managing director, Fu Cheng Qiu, said on Friday. COSCO Shipping, which owns the world's fourth-largest container shipping fleet, bought 51 percent of the port's operating company last year, and plans significant investment to turn the port into a transhipment hub for rapidly growing trade between Asia and Eastern Europe.

Rickmers Sells Entire Containership Fleet to Navios

CMA CGM Azure (Photo: Rickmers Maritime)

Owner and operator of dry bulk and container vessels Navios Maritime Partners L.P. said it has reached an agreement to acquire Rickmers Maritime’s entire containership fleet. The deal, worth about $113 million, will see Navios Partners acquire 14 container vessels from Rickmers Maritime though a wholly owned subsidiary, Navios Partners Containers Inc. Three of the container vessels are 3,450 TEU, and 11 are 4,250 TEU, combining for a total 57,100 TEU. The average age is 9.5 years.

Bollinger Delivers USCGC Benjamin Dailey

USCGC Benjamin Dailey (Photo: Bollinger Shipyards)

Bollinger Shipyards said it has delivered the USCGC Benjamin Dailey, the 23rd Fast Response Cutter (FRC) to the U.S. Coast Guard. The Coast Guard took delivery of the 154-foot patrol craft on April 20, 2017 in Key West, Fla. The vessel’s commissioning is scheduled for July 4, 2017 in Pascagoula, Miss. The 23rd vessel in the Coast Guard's Sentinel-class FRC program, USCGC Benjamin Dailey will be the first FRC to be stationed in the 8th Coast Guard District in Pascagoula, Miss. Previous cutters have been stationed in Florida; San Juan, Puerto Rico; Cape May, N.J. and Ketchikan, Alaska.

BW Group Delivers First VLCC TO DHT

Photo: BW Group

DHT Holdings, Inc. said it has taken delivery of the DHT Utik, the first of 11 very large crude carriers (VLCC) acquired from BW Group Limited in exchange for DHT's shares. The delivery was made despite a last-minute effort by rival oil tanker firm Frontline to prevent the deal that will bring BW's ownership in DHT to 33.5 percent, surpassing Frontline as DHT's top shareholder. Frontline’s lawsuit was rejected in New York County Supreme Court. Of the 11 VLCCs sold in the deal…

Hull Cleaning Robot Deployed in Rotterdam

Photo courtesy of René Klootsema

Recently the hull of the vessel Vlieborg from Wagenborg has been cleaned in the Port of Rotterdam by Fleet Cleaner and OH Ship Cleaning. The vessel was heavily fouled with slime and algae, which were all removed from the hull and captured by the installation. The collected wastewater was carefully filtered in order to comply with environmental regulations. Since the Vlieborg was not loaded during the cleaning, a large portion of the fouled hull had to be cleaned above water. Onno Steenweg…

Princess Cruises Fined $40 Mln for Pollution

Caribbean Princess (Photo: Princess Cruise Lines Ltd.)

Princess Cruise Lines Ltd. was sentenced to pay a $40 million penalty – the largest-ever for crimes involving deliberate vessel pollution – related to illegal dumping overboard of oil contaminated waste and falsification of official logs in order to conceal the discharges. The sentence was announced by Acting Assistant Attorney General Jeffrey H. Wood for the Department of Justice’s Environment and Natural Resources Division, and Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida in Miami. The sentence was imposed by U.S. District Judge Patricia A.

MAN Cryo to Supply FGSS for LNG Ferries in Norway

Illustration of the coming double-ended RoPax ferries (Image: Multi-Maritime)

MAN Cryo, MAN Diesel & Turbo’s marine-LNG fuel-gas-system manufacturer, has signed a contract with the Vard Shipyard Group in Norway to deliver a fuel-gas supply system (FGSS) to two ferries for shipowner and ferry operator Torghatten Nord. Each ferry will be equipped with a gas-electric, hybrid-propulsion system that features optional fast-charging from shore. Major efforts have been put into the design to deliver an energy-efficient propulsion and hull shape that offer a state-of-the-art environmental performance, comfort and reliability.

Rickmer's Group Worth $740 Million

Rickmers Group fleet value, from March 21, 2016 (Source: VesselsValue)

Following last month’s news that Singapore Based Rickmers Maritime Trust is to be wound up, Rickmers Holding AG released a statement on April 19 reporting that an understanding had been reached regarding restructuring of the Rickmers Group. It is understood that sole shareholder Bertram Rickmers will reduce his shareholding to below 25 percent, while the remaining 75 percent will be taken by lenders and bondholders. The value today of the Rickmers Group (a Rickmers Holding AG subsidiary) sits at $740 million, according to VesselsValue.

Falling Capesize Rates Weigh on Baltic Index

File Image (CREDIT: AdobeStock / (c) Lukasz Z)

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Thursday on sliding rates for capesize vessels, weighed further by weaker panamax demand. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, was down 35 points, or 2.74 percent, at 1,243 points. The capesize index lost 139 points, or 6.53 percent, to 1,991 points, its lowest in over a month. Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $864 to $14,660.

DynaCERT Secures CE Certification for Hydragen Technology

Photo:  dynaCERT Inc.

dynaCERT Inc. has received CE certification for its HydraGEN technology. Specifically, the models HG1 (Class 6-8 trucks), HG2 (Class 2-5 trucks, refrigerated trailers and shipping containers) and HG3 (diesel-powered ocean ships, locomotives and stationary generators) will all now carry the CE mark for shipments to clients within Europe. This signifies that products sold in the European Economic Area (EEA) have been assessed to meet high safety, health, and environmental protection requirements. This also applies to products made in other countries that are sold in the EEA.

DryShips Acquires Three Kamsarmax Bulkers

DryShips has entered into agreements with unaffiliated third parties to purchase three Kamsarmax drybulk carriers built in 2014. One 81,918 DWT Kamsarmax drybulk carrier is built in 2014. The company expects to take delivery of this vessel during the second quarter of 2017. Two 81,129 DWT Kamsarmax drybulk carriers are also built in 2014. The purchase of these two second-hand Kamsarmaxes was previously announced and the company has now physically inspected and accepted the vessels. The company will finance the total gross purchase price of approximately $68 million using cash on hand, which currently stands at $429 million. George Economou…

Australian MATV Completes Sea Trials

Photo: Damen

The Royal Australian Navy’s new Multi-role Aviation Training Vessel (MATV) MV Sycamore has passed sea trials. Following final vessel handover from builder Damen Shipyards Group, MV Sycamore will perform diverse training and support duties. In addition to the more traditional elements of sea trials such as maneuvering and speed tests, the MV Sycamore was put through her paces with an extensive testing program of all on-board military systems, including testing of the air traffic radar…

China Iron Ore Imports Drive Bulker Demand

© corlaffra / Adobe Stock

Chinese iron ore imports will continue to be a key driver for the demand growth in the dry bulk shipping industry for 2017, alongside shipping of grains. This is emphasized by an accumulated growth rate for Q1-2017 of 9.5 percent compared to the same quarter of 2016, according to BIMCO. Furthermore, it is the highest imported amount of seaborne iron ore for a first quarter. The growth rate of Chinese imported iron ore was constant throughout 2016, as the annual volume broke into landmark territory.

St. Johns Delivers for Vane Brothers

Philadelphia is the fifth of eight new tugs being built by St. Johns Ship Building for Vane Brothers (Photo: St. Johns Ship Building)

St. Johns Ship Building has delivered the newly built tug Philadelphia to owner Vane Brothers. Philadelphia is the fifth of eight new hulls for Vane Brothers in the Elizabeth Anne tug series consisting of 100 feet LOA, 4,200 HP twin screw tugs. “[Philadelphia] is identical to all the others in the series in regards to specifications and outfitting but, as most shipbuilders know, when you build vessels in a series each one will be just a little better than the previous. That is true with the Philadelphia,” said Bobby Barfield, VP of Operations, St. Johns Ship Building.

First of Six New Tugs Delivered to BHP Billiton

Photo: Image: Robert Allan Ltd.

With the arrival of the Iron Kestrel and Iron Corella in Port Hedland, Western Australia, the first two of BHP Billiton Iron Ore's six boat order for Robert Allan Ltd.’s RAstar 85 Class escort tugs have now been delivered by ASL Shipyards Singapore. These modern high performance tugs will escort bulk carriers in and out of Port Hedland. They were custom designed and built to meet the environmental conditions and operational requirements of the world's busiest bulk commodity port by tonnage.

CSN Iron Ore Terminal Not Operating after Accident

The loading of iron ore at Brazil's Itaguaí terminal operated by mining and steel firm Companhia Siderúrgica Nacional, or CSN, have been halted since Saturday due to an accident, sources and the Itaguaí Port Authority told Reuters on Wednesday.   Some Capesize bulk carriers that were waiting to load iron ore at the terminal are being put back into the charter market, said a German shipping source, due to the impossibility to load the product in Brazil. CSN confirmed the accident, but had no immediate information regarding Itaguaí operations. (Reporting by Alberto Alerigi Jr and Gustavo Bonato; Additional reporting by Michael Hogan; Writing by Marcelo Teixeira)

High Speed Catamaran Powered by Wärtsilä Waterjets

The largest high speed catamaran to operate in the Mediterranean Sea will be powered by Wärtsilä waterjets. (Photo: Wärtsilä)

Wärtsilä has been contracted to provide the waterjets for a new high speed ferry being built by the Incat Tasmania yard in Australia for Malta based Virtu Ferries. When delivered, this vessel will be the largest high speed catamaran operating in the Mediterranean Sea, and will have a service speed of up to 38 knots. The order with Wärtsilä was booked in March 2017. The scope of supply covers four Wärtsilä LJX1500SRI waterjets and a Lipstronic control system. The equipment is scheduled to be delivered to the yard in April 2018 and the ship is to be delivered to the owners at the end of 2018.

Baltic Index Down as Capesize Rates Sag

File Image (CREDIT: AdobeStock / (c) lidian neeleman)

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Wednesday on weaker rates for larger vessels. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, was down 16 points, or 1.24 percent, at 1,278 points. The capesize index lost 90 points, or 4.05 percent, to end at 2,130 points. Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $630 at $15,524.

Eleven Missing after Bulker Sinks off Crimean Coast

A cargo ship heading from Russia to Turkey sunk off the coast of Crimea early on Wednesday morning and 11 of the crew are missing, Crimea's emergency situations ministry said. It said that the Panama-flagged vessel 'Geroi Arsenala' had sent an SOS signal when it was located 14 nautical miles off the Crimean coast. The Interfax news agency cited Russian transport officials as saying that the ship, whose home port was reported to be Kherson in southern Ukraine, had broken in half during a strong storm and sunk. At least six ships and a helicopter were engaged in a search and rescue operation, the emergency situations ministry said in a statement. Their task was complicated however by high winds and choppy waters.

New Quetzal Terminal Welcomes CSAV Traiguen

Photo: APM Terminals

The 8,600 TEU capacity CSAV Traiguen became the largest container ship to call a Guatemalan port when it arrived at Terminal de Contenedores Quetzal (TCQ) on Guatemala’s Pacific Coast on April 12th, 2017, on the maiden call of German-based Hapag-Lloyd’s Mediterranean Pacific (MPS) service. The previous record of 5,500 TEU was established just a month ago with the arrival of the Maersk Gironde into TCQ on March 26th. TCQ, which was acquired by APM Terminals in March 2016 while under construction, opened for operations earlier this year, with the first trial vessel call completed in February.

NileDutch selects ClearMetal predictive platform

Photo: Nile Dutch

Ocean Carrier Nile Dutch will use ClearMetal's machine-learning approach to fleet and container utilization improvement. ClearMetal is a predictive logistics company that uses AI and machine learning to unlock new efficiencies for global trade. "Managing fleet and container utilization against a backdrop of fluctuating demand in today's highly complex market can be challenging," said Mark Kraaijenbrink, Director Information and Communications Technology for Nile Dutch. "We are…

Seanergy Bags Time Charter for Capesize Bulker

Photo: Seanergy Maritime Holdings Corp

Seanergy Maritime Holdings Corp has entered into a time charter contract (T/C) with a major European charterer, for one of its Capesize dry bulk vessels, for a period of about 18 months to about 22 months. The T/C is for the 180,000 dwt Capesize vessel M/V Lordship and is expected to commence in June 2017, upon expiration of the vessel's current T/C with the same charterer. The net daily charter hire is index-linked rate based on the 5 T/C route rate of Baltic Capesize Index (BCI).

Viking Ocean Cruises Extends Order at Fincantieri

Viking Ocean Cruises and Fincantieri signed a memorandum of agreement for the construction of two additional cruise ships, with an option for another two. The new builds will be sister ships to the six already ordered and will enter Viking fleet in 2021 and 2022, respectively. The final contracts will become effective upon the fulfillment of financing and other customary closing conditions. The new ships will follow the same design as the current ships ordered and in operation. The entire fleet is comprised of all-veranda staterooms; each ship has a gross tonnage of 47,800 tons and accommodates 930 guests in 465 cabins. As with the other sister ships…

Russia Tells Turkey it Expects Lifting of Grain Export Curbs

© kolidzei / Adobe Stock

Russian Deputy Prime Minister Arkady Dvorkovich told a visiting delegation of Turkish ministers on Tuesday that it expected Ankara to lift restrictions on Russian grain exports to Turkey, the Russian government said in a statement. Russian and Turkish ministers meeting in Moscow on Tuesday reached "a common understanding" that further work was needed to resolve differences over trade, and agreed to hold intensive consultations over the next two weeks, the statement said. Turkish Deputy Prime Minister Mehmet Simsek…

US Shipyards: Building for America, Jobs for Americans

In August 2015 General Dynamics NASSCO launched Perla del Caribe, the second ship in a series of natural gas powered containerships for TOTE (Photo: General Dynamics NASSCO)

The shipbuilding and ship repairing industry has always been a core strength of our nation. It has enabled the United States to protect and project its prosperity, power and influence internationally. A book in my office signed by shipbuilder William Webb illustrates the point. Mr. Webb inherited his father’s shipyard in 1840 and built over 130 of the fastest clipper sailing vessels; he later built the largest and most celebrated steamships of his era. Those were glory years for the U.S. maritime industry, an era when the shipping industry was synonymous with American sovereignty.

Brunswick Celebrates 10-year Safety Milestone

Team BCGP celebrates their safety milestone with an employee gathering last Friday, April 14th.  (Photo: BCGP)

April 14 marked 10-years without a lost time incident for Brunswick Commercial & Government Products (BCGP). BCGP's employees have worked 1,817,000 hours without a lost time incident and maintained a recordable incident rate of zero in 2016. "This monumental milestone illustrates our dedication to safety and manufacturing excellence, said John Ratto, BCGP Director of Manufacturing and Plant Operations. BCGP was also recently presented the Sustained Safety Performance Award from its parent company - the Brunswick Corporation.

Brazilian Shipyard BECONAL Uses FORAN

Photo: FORAN

The SENER engineering and technology group has signed a contract with shipyard Bertolini Construção Naval da Amazônia Ltda (BECONAL), providing it with a license to use its marine design and construction system, FORAN. The scope of the contract covers installation of the FORAN system and provision of permanent licenses, including the Hull Forms, General Arrangement, Naval Architecture, Hull Structure, Machinery and Outfitting, Electrical Design, and Drafting disciplines. In addition, SENER is to give various training courses to the shipyard’s personnel.

Hydrex to Expand Antwerp Facility

Antwerp Port Authority has supported Hydrex Underwater Technologies’ plan to expand  (Photo: Hydrex)

Antwerp Port Authority has supported Hydrex Underwater Technologies’ plan to expand its existing 5000m² site on Asiadok on the River Scheldt with new workshops and offices. As part of its expansion, the result of organic growth over the past two years, Hydrex has also refurbished its dive support workboats and increased its manpower by 25 percent to strengthen its diver-technician capability. Hydrex Chairman Boud Van Rompay said, “The new facility together with our recent recruitment drive is consequent of market demand for swift and cost-effective underwater hull and running gear care.

Watermaker Offers Installation Flexibility

These individual elements of Neptune+ can be configured as space and needs dictate. (Photo: FCI Watermakers)

Even on large vessels, machinery spaces tend to be cramped and have reduced accessibility. Knowing this, FCI Watermakers offers its high-efficiency Neptune+ Series in a convenient, modular configuration for a wide variety of flexible installations. It delivers 1,275-9,500 gallons of pure, fresh water every day. Refitting large framed or skid-mounted watermakers commonly requires cutting the deck—an enormous added expense. With FCI's Neptune+ Modular, individual components are easily brought into the engine room through a door or hatch.

Wärtsilä to Power LNG Offshore Construction Vessel

The world's first LNG fueled offshore construction vessel being built for DEME will be powered by Wärtsilä. (Photo: Wärtsilä)

Wärtsilä is to supply the engines and other propulsion machinery for a new offshore construction vessel being built at the Cosco shipyard in China. The ship owner is Belgian operator Dredging International (DEME). This will be the first vessel of its kind to be fueled by liquefied natural gas (LNG) and in addition to the dual-fuel engines, Wärtsilä will also provide its LNGPac fuel storage and supply system and propulsion systems. The orders with Wärtsilä were booked in the fourth quarter of 2016 and in February 2017.

Ektank Chem Tankers to Sport Hybrid Propulsion

 The Switch has received an order from WE Tech to deliver its permanent magnet (PM) shaft generators for Ektank AB’s two 18,600 dwt chemical tankers currently under construction. Photo copyright: FKAB Marine Design

The Switch received an order from WE Tech to deliver its permanent magnet (PM) shaft generators to two 18,600 dwt chemical tankers currently under construction for Sweden’s Ektank AB. Sweden's Ektank AB is family-owned with a modern fleet of five chemical tankers in size ranging from 13,700 DWT to 17,000 DWT. The PM-based shaft generator is a powerful proposition for today’s cost and environmentally conscious shipowners. This deal is an example of how PM technology is set to revolutionize the maritime industry.

USCG Cutter Munro Powered by GE

U.S. Coast Guard’s Munro (WMSL 755) arriving in Seattle for commissioning. This Legend-class cutter is powered by a GE LM2500 marine gas turbine-based propulsion system. (U.S. Coast Guard photo by Zac Crawford)

GE’s Marine Solutions announced that the U.S. Coast Guard commissioned Munro, a new National Security Cutter (NSC), on April 1 in Seattle, Washington. All of thenew Legend class cutters use the same COmbined Diesel And Gas turbine (CODAG) propulsion system featuring one GE LM2500 gas turbine and two diesel engines. According to a U.S. Coast Guard press release, Munro is the fourth NSC to be homeported on the West Coast in Alameda, Calif. It was commissioned in Seattle to honor the Coast Guard’s only Medal of Honor recipient, Signalman First Class Douglas A. Munro (1919-1942).

Scorpio Sells Two Kasamax Bulkers

Scorpio Bulkers Inc. said it has reached agreements with unaffiliated third parties to sell two Kamsarmax bulk carriers approximately $45 million combined. The two vessels, SBI Charleston and SBI Cakewalk, were both built in 2014 at Shanghai Waigaoqiao Shipbuilding Co., Ltd. in China.

Banned at Sea: Venezuela's Crude-stained Oil Tankers

File photo (© Jose Gil / Adobe Stock)

In the scorching heat of the Caribbean Sea, workers in scuba suits scrub crude oil by hand from the hull of the Caspian Galaxy, a tanker so filthy it can't set sail in international waters. The vessel is among many that are constantly contaminated at two major export terminals where they load crude from Venezuela's state-run oil company, PDVSA. The water here has an oily sheen from leaks in the rusty pipelines under the surface. That means the tankers have to be cleaned before traveling to many foreign ports…

Daewoo Shipbuilding unlocks $2.6 bln Bailout

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

Bondholders at final meetings agree to debt-to-equity swap; shipbuilder needs about $400 mln in operating funds by April-end. South Korea's Daewoo Shipbuilding & Marine Engineering Co Ltd has won near unanimous agreement from bondholders to swap their debt for equity, meeting a condition that unlocks a $2.6 billion bank bailout for the world's biggest shipbuilder. Daewoo won approval from over 96 percent of bondholders at two meetings on Tuesday and three on Monday, with attendance exceeding 78 percent.

Weaker Capesize Rates Weigh on Baltic Index

File Image (CREDIT: AdobeStock / (c) Lidian Neeleman)

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Tuesday on weaker rates for capesize vessels. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, was down two points, or 0.15 percent, at 1,294 points. The capesize index lost 29 points, or 1.29 percent, to close at 2,220 points. Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $207 to $16,154.

Plunge in Newbuild Orders for China

Photo: Fujian Southeast Shipyard

The newbuilding orders for China’s shipbuilding yards plunged by  25.4% during the first three months of 2017 compared to the same period a year earlier, according to data provided by the China Association of the National Shipbuilding Industry (Cansi). For the first quarter ended 31 Mrach, Chinese yards recorded 5.54m dwt in new vessel tonnage. However, in completed newbuild tonnage, they produced a total of 15.67m dwt of vessel capacity during the first three months, representing a jump of 87.7% compared to the previous corresponding period.

New Pipe Seal Simplifies Shipyard Safety

St. Johns Ship Building ensures watertight pipe penetrations in decks and bulkheads by using the Roxtec SPM seal. When building the tug Delaware, it also used the seal as vibration hanger in the compartments. (Photo: Roxtec)

St. Johns Ship Building Inc. in Palatka, Fla. ensures watertight pipe penetrations in decks and bulkheads by using the Roxtec SPM seal. When building the tug Delaware, the shipyard also used the seal as vibration hanger in the compartments. “Roxtec seals have greatly simplified our pipe installations,” said pipe manager William Mann. The pipe installation team used to weld in a steel fitting and install a screw pipe. This work took time, and occasionally caused issues with dissimilar metals. “We are able to work much more efficiently with the Roxtec SPM seals,” said William Mann.

A Rising Sun of Change

The 51st Kaiyo Maro (Photo: Navis)

“No new fishing vessel has been (added) during the period,” says the email we get from Japan’s largest seafood company, Maruha Nichiro Corp. A year earlier, they had bought shares in New Zealand outfit, Sanford, which had just chartered a Nordic-looking vessel. Seafood rival, Nissui, had just done the same, buying New Zealand and Nordic. That all happened after the Naval Architect’s Society of Japan said a vessel based on the Icelandic design of Reykjavik’s Navis was its Ship of the Year.

Vigor to Add Third Drydock in Seattle

Vigor said it has entered into an agreement to purchase a drydock from a Korean seller, continuing the shipbuilder’s ongoing infrastructure investments and expansion of U.S. West Coast drydock capacity. At 640 feet long with a clear width of 116 feet, the new dock will be the third, and largest, at Vigor’s Harbor Island shipyard. “The purchase of another drydock in Seattle allows Vigor to better service valued  customers like Washington State Ferries, the U.S. Coast Guard and U.S. Navy,” said Adam Beck, Vigor Executive Vice President of Ship Repair. Beck and his team had been actively looking for the right drydock at home and abroad for a number of months. The one selected happened to be in Korea.

Minerva Selects Ecochlor BWTS for up to 30 Vessels

Image: Ecochlor

Ecochlor, Inc. informs it has signed an agreement with Minerva Marine, Inc. for the potential supply of ballast water treatment systems (BWTS) for up to 30 vessels under its management for installations in accordance to the International Maritime Organization (IMO) and U.S. Coast Guard (USCG) implementation plan. The Ecochlor technology was selected for retrofit in Minerva’s managed bulkers and tankers varying in size from medium range (MR) to very large crude carriers (VLCC).

Daewoo Shipbuilding Bondholders Okay Bailout Plan

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

Debt-to-equity swap plan is condition of $2.6 bln bailout. South Korea's Daewoo Shipbuilding & Marine Engineering Co Ltd on Monday won near unanimous approval for a debt-to-equity swap plan in the first three of five bondholder meetings, as the world's largest shipbuilder battles to stay afloat. The votes were held hours after Daewoo's biggest bondholder, the National Pension Service (NPS), said it had agreed to the proposal. That move made it likely other bondholders would follow suit, creditor bank officials said, allowing the shipbuilder to meet conditions of a $2.6 billion bank bailout.

DSME's Bailout Plan Cleared by Pension Fund

Photo: DSME

South Korea’s National Pension Service (NPS) agreed to a restructuring of bonds issued by Daewoo Shipbuilding & Marine Engineering (DSME). Reuters reported that this move is expected to help the world’s largest shipbuilder tide over a financial crisis. NPS stated that accepting the debt restructuring will be more advantageous to improve the fund's returns. The finance crunch hit DSME will likely get more time to make payments on bonds that are due this month. NPS is the biggest holder of the debt.

Taiwan's Home-Grown Submarine to Cost Less

Fast Attack Craft, Guided Missile (FACG). Photo: CSBC Corporation, Taiwan

Taiwan's shipbuilder CSBC Corp's chairman Cheng Wen-lon said that a home-grown submarine will cost less than NT$100 billion (US$3.29 billion) to build. According to a report in Taipei Times, chairman of the local shipbuilder commissioned to plan and design the vessel  also said that much depends on the Navy’s demands: Planned crew sizes, mission length and strategic and tactical requirements would all determine the eventual size of the submarine. Nationally developed ships would be crucial to the company’s future operations…

China Hands Over Third Patrol Ship to Pakistan

Pic: Mercantile Marine Department,  Ministry of Ports and Shipping

China has handed a 600-ton patrol ship over to Pakistan’s maritime safety authority in Guangzhou, Guangdong province, PTI reported. The new ship, just the third of its kind, was built by China Shipbuilding Trading Company Ltd. (CSTC) and China State Shipbuilding Corporation (CSSC) Xijiang Shipbuilding Co., Ltd. Among other things, the ship will be used to safeguard Pakistan’s maritime interests, People’s Daily reported. Its two predecessors have already demonstrated their reliability and excellent performance during visits and exchanges…

USS Gerald R. Ford Completes Sea Trials

USS Gerald R. Ford. Photo by United States Navy

The future USS Gerald R. Ford (CVN 78) returned from Builder's Sea Trials to Naval Station Norfolk, Virginia on April 14 after seven days at sea. During this initial at-sea period, Ford's crew, representatives from Huntington Ingalls Industries-Newport News Shipbuilding, the Navy's CVN 78 Program Office, the Navy's Supervisor of Shipbuilding, Conversion and Repair and various technical subject matter experts demonstrated many of the ship's capabilities including tracking aircraft using the Dual Band Radar…

Liebherr Offshore Cranes Accessing New Markets

Design layout of the new Liebherr HLC 295000 mounted on Deme’s next generation offshore installation vessel Orion. (Image: Liebherr)

Liebherr’s maritime manufacturing plant in Rostock has been awarded the contract to supply the heavy-lift crane for the Orion, a new wind farm installation and platform decommissioning vessel ordered by DEME from COSCO (QiDong) Offshore, a subsidiary of COSCO Shipping Heavy Industry. The crane is rated at 3,000 metric tons at more than 50 meters, with a lifting height in excess of 170 meters and a designation of HLC (Heavy-Lift Crane) 295000. Delivery will be spring 2019. Gordon Clark…

USS Providence Returns Ahead of Schedule

The Los Angeles-class attack submarine USS Providence (SSN 719) transits the Thames River as it departs Naval Submarine Base New London for a six-month deployment. (Photo: U.S. Navy)

Portsmouth Naval Shipyard delivered USS Providence (SSN 719) back to the Fleet 23 days ahead of schedule and on budget April 7. USS Providence arrived at Portsmouth Naval Shipyard December 4, 2015, for a Pre-Inactivation Restricted Availability (PIRA). The project team and ship's crew worked seamlessly throughout the maintenance availability to meet the Naval Sea Systems Command's mission priority of the on-time delivery of ships and submarines. "As a team, the shipyard with the captain and crew of Providence, focused on the positive plan forward," said project superintendent, Mark Ayotte.

Hybrid Electric Drives for USCG OPC Newbuilds

Leonardo DRS, Inc. has been awarded a contract by Eastern Shipbuilding to provide hybrid electric drive systems for the U.S. Coast Guard’s new fleet of Offshore Patrol Cutters. The contract, for the first nine systems, is worth $10.7 million. Eastern Shipbuilding is the prime contractor and builder of these next-generation Offshore Patrol Cutters. Under the contract, Leonardo DRS will provide its high-performance, permanent magnet motor-based Auxiliary Propulsion System. This integrated hybrid electric drive system provides capability for the ship to operate much more efficiently at slower speeds, increases mission duration capability, reduces emissions and provides emergency take-home capability in the event of a failure of the main propulsion diesel engines.

Maritime Reporter Magazine Cover Apr 2017 - The Offshore Annual

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