S&P: More Shipping Companies Likely To Default
Depressed shipping market conditions are likely to cause more shipping companies to default on junk bond issues, according to Standard & Poors (S&P).
DP World Objects to S&P Rating
Rating agency Standard & Poors withdraws credit rating at DP World's request Standard & Poor's has withdrawn its credit rating on DP World following objections by the ports operator to the way the agency assessed its financial health, Reuters has reported. S&P said it pulled the ratings at DP World's request. The world's third biggest ports operator was rated 'BB/B' with a stable outlook by S&P, revised down in February from positive. The agency said DP World's financial risk profile was "aggressive" and the company would generate negative free operating cash flow in 2012 and 2013.
LNG to be Focus of Houston Conference
With the future of the natural gas domestic supply in the North America at stake, a vital part of the solution revolves around the continued growth, production, and shipping of LNG-liquified natural gas. But as LNG evolves into a global commodity, what will it take for the U.S. to get its fair share of LNG while competing with developing nations in an international market demand for natural gas? These questions and more will be answered at the leading LNG forum in the U.S., the 4th Annual LNG: Economics & Technology, to be held in Houston, TX on January 26-27, 2004 (www.srinstitute.com/LNG). The event will be chaired by Sara Banaskak…
BIMCO, CIRM Propose Software Maintenance Standard for Shipping
BIMCO and the international association for the marine electronics industry, CIRM (Comité International Radio-Maritime), have sent the industry’s first proposal for an industry-wide standard for software maintenance to the IMO for consideration. Without an industry-standard, BIMCO sees an increasing risk of severe incidents on ships, delays and costs to shipowners and cyber security problems. "We hope the entire industry will adopt these standards, to make ships safer, to prevent cyber security problems and to save money," says Angus Frew, Secretary General and CEO at BIMCO.
Connecting Boatbuilders to the New Gold Standard
Victaulic’s forward-thinking vertical integration remains, at the same time, solidly connected to a rich and varied past. It is still common to hear waterfront stakeholders refer to alternative pipe connection systems as temporary or simply as ‘a new development.’ While none of that could be further from the truth, the education of the marine community as to the merits of these products as an alternative to traditional flanges continues. These products – like Victaulic’s market offerings – are indeed mainstream parts of the marine sector…
Fitch Downgrades Shell, Citing Asset Sales Concerns
Credit rating agency Fitch on Thursday downgraded Royal Dutch Shell following its acquisition of BG Group, citing risks to its asset sales goals to finance the $53 billion deal. Fitch downgraded Shell's Long-term Issuer Default Rating to 'AA-' from 'AA' and put it on negative outlook. Rival rating agency Standard and Poors announced a similar downgrade earlier this month, warning of a further possible lowering. Shell completed on Feb. 15 the acquisition of its smaller British rival, making its the world's top liquefied natural gas trader and a major deep water oil producer.
Get Rational about Financial Ratios
By Richard J. Paine, Sr. Of the traditional five “C”s of credit: Capacity, Capital, Collateral, Conditions and Character, the first is foremost. It is the ability to repay debt. Financial ratios are the measure of that capacity. Derived from your company’s financial statements, ratios are key to determining your company’s credit rating. Your company’s credit rating will determine your success in securing financing or leasing for the projects needed to grow your business. It further determines a lender’s appetite for your debt and at what cost to you.
What Next for BWM Regulation?
Protecting marine ecosystems from potentially harmful invasive aquatic species transported in ships’ ballast water is an important part of International Maritime Organization (IMO)'s work to protect the marine environment. The treaty supporting this is the Ballast Water Management (BWM) Convention, which requires ships in international traffic to manage their ballast water and sediments to a certain standard, according to a ship-specific ballast water management plan. But for regulation to be effective, it needs to be clearly understood by all stakeholders involved.
Wison, CCS Partner on China’s FSRU Standards
Wison Offshore & Marine announced it will collaborate with China Classification Society (CCS) Wuhan Rules & Research Institute on various fronts of floating liquefied natural gas (FLNG) storage and re-gasification facility (FSRU) developments in China under a strategic cooperation agreement. Pursuant to the agreement, both parties will embark on a wide range of joint efforts in development and optimization of FSRU products, formulation of relevant technical standards, design and review, joint research of new technologies, exchange of know-how and talent development for the industry.
CMA CGM’s Dual-fuel Mega Ships to be Built to BV Class
All nine of CMA CGM’s new gas-fueled Ultra Large Containerships will be built to Bureau Veritas (BV) class rules and under BV newbuilding supervision. The two China State Shipbuilding Corporation (CSSC) shipyards that will be building the nine 22,000 TEU containerships, Jiangnan Changxing Shipbuilding Co., Ltd. (Hudong Zhonghua) and Shanghai Jiangnan Changxing Heavy Industry Co., Ltd (SWS), signed the classification contract with BV senior management at a ceremony during Marintec 2017 in Shanghai.
NGOs, Unions Denounce Certification Issued to PHP Yard by RINA
In October, the PHP Family (Peace Happiness and Prosperity) shipbreaking yard received a Statement of Compliance with the Hong Kong Convention by the Italian classification society RINA. Trade unions in Bangladesh, as well as the Platform’s member Bangladesh Institute for Labour Studies (BILS), are concerned that such a labelling sets a dangerous precedent for the further green-washing of the Chittagong beaching yards. Workers and the environment are not protected as long as ships are broken on the beach, and as long as fundamental labour rights and proper infrastructure are not secured.
BIMCO, FONASBA Launch General Agency Agreement
BIMCO and FONASBA have once again joined forces to create and launch a new general agency agreement for port agents, shipowners and ship operators contracting port agency services. The new standard contract, which can be downloaded from the FONASBA website and BIMCO’s IDEA, formalizes and sets out clear terms for any agreements made, for the benefit of both sides. Drawn up by the group responsible for drafting the Agency Appointment Agreement which was released earlier this year, the new contract is easy to use and can readily be adapted for single use or a long-term contract.
Ballast-free LNG Carrier Concept Gets LR Approval
The maritime industry has taken a step closer toward ballast free shipping with the award of a new approval in principle (AiP) at Marintec China on Tuesday. GTT and Dalian Shipbuilding Industry Co. Ltd (DSIC) received AiP from Lloyd’s Register (LR) for their ballast-free shipping solution, a 30,000m³ B-FREE liquefied natural gas (LNG) carrier design, which the developers say could combine environmentally-friendly features, increased efficiency and lower build and operating costs. “While we are still in the initial stage of the project and the design is subject to ongoing change, the initial results are indicating that we will meet our goal of having a ballast-free ship that is equal to, or better than existing conventional designs,” said Ma Yingbin, Vice Chief Engineer, DSIC.
BIMCO, WFP Issue Modernized Charter Party
BIMCO has together with the UN World Food Programme (WFP), updated and modernised the WORLDFOOD voyage charter party used by the UN organisation to transport food to emergency areas around the world. The aim was to create a contract that made WFP’s work easier and faster. "The WORLDFOOD charter is an essential tool for the WFP as the majority of food that we deliver is transported by chartered ships at sea. It is crucial that we have a charter party that gives us the flexibility required when operating in volatile areas of the world.
Total to supply LNG for CMA CGM's Future Boxships
Total to supply 300,000 T of LNG a year for 10 years. Total will supply liquefied natural gas (LNG) to CMA CGM to fuel the container shipping group's future very large vessels, the French companies said on Monday. CMA CGM had said last month it would use LNG to power the nine extra-large vessels it has on order, a first such move in a shipping industry grappling with how to comply with tougher rules on emissions. Under the 10-year agreement, oil and gas major Total will supply around 300,000 tonnes of LNG per year to CMA CGM, starting in 2020, the companies said in a statement.
Sydney’s Newest Ferry Begins Operations
A newbuild 27-meter catamaran passenger ferry has been delivered to the Australian Public Company Sealink, and has commenced operations on Sydney Harbor. Designed by Incat Crowther and built by Aluminium Marine, Nancy Wake is a 280 passenger vessel accommodating 198 passengers inside and 82 outside. Nancy Wake is the fourth vessel of this design, which includes Incat Crowther’s new generation propeller tunnel which reduces draft and offers a flat transom to integrate with standard fixed or active interceptor systems. Fuel consumption is also reduced, the designer said.
Cenac Marine Awards SubM TPO Contract to ABS
ABS said it was awarded a Third-Party Organization (TPO) contract by Cenac Marine Services, owner and operator of a fleet of inland and offshore vessels, to support compliance with U.S. Coast Guard (USCG) Subchapter M requirements. The contract establishes ABS as Cenac’s sole TPO, providing oversight of their Internal Survey program and additional support with ABS surveyors when required. “Tugboat owners and operators are urgently seeking and evaluating options for Subchapter M compliance,” said ABS Americas Division President, Jamie Smith.
Commercial Marine Engine Emission Standards Finalized
EPA Administrator Carol Browner signed a final rule establishing new emission standards for commercial marine diesel engines at or above 37 kW (approximately 50 hp). EPA's final rule aplies emission standards to new engines only, beginning with the 2004 model year. Vessels and engines built before 2004 will not be subject to emission control requirements. However, if a vessel is subsequently modified such that 50 percent of the modified vessel's value is derived from new material or components, the vessel will be considered new and will be required to meet engine emission standards in effect at the time the modifications are made. EPA believes this will prevent companies from re-using parts from used vessels to avoid emission standards.
Wärtsilä’s Ambitious Vision of a Digital Future
Digitization sets the new standard for the entire industry, says Wärtsilä on a November 24 press meeting in London. Wärtsilä has announced an ambitious vision to lead the marine industry into a smart technology future by catalyzing innovative developments leading to high connectivity and optimisation for the entire sector. Wärtsilä sees four significant trends that will reshape the industry: big data analytics and data flow will change the way the industry works, there will be more smart vessels and automated smart ports, and a shared capacity will improve rates and reduce costs.
New Standard gets Revised Program for Cooper Basin Approved
New Standard Energy Limited (New Standard) advises that it has received approval for amendments to its five year work program in PEL570 in the Cooper Basin. As part of the revised program, New Standard now has seismic and drilling to commence in Year Two before the new deadline of March 2016, with only minor expenditure on geological studies in Year One required before then. New Standard requested a suspension of the work program for PEL570 acreage and a deferral of the planned seismic due to the uncertainty surrounding the ownership of the Company’s PEL570 joint venture partner…
NMEA Introduces New Installation Standards
The National Marine Electronics Association (NMEA) introduced a stanrdized methodology clarifying and outlining the appropriate standards for installing marine electronics equipment, the NMEA Installation Standards. The Standards have been designed primarily for after-market installation that traditionally occurs at either boat dealers or marine electronics specialty shops. Over the last 20 years, the marine electronics market has exploded with new safety devices and other equipment. However, different from than some years ago, many retail outlets lack the expertise and manpower to install such equipment properly, which is why the NMEA developed these installation standards. The primary focus for these standards is electronics for boats ranging in size from 25 to 150 ft.
News: New Marine Diesel Regs Adopted by EPA
Last month the Environmental Protection Agency (EPA) announced that it is adopting emission standards for new marine diesel engines that will be installed on vessels flagged or registered in the U.S. The near-term, Tier 1 standards in this rule are equivalent to the internationally negotiated emission limits for oxides of nitrogen (NOx). These standards will go into effect in 2004 and are based on readily available emission-control technology. EPA also said that it would undertake another rulemaking in a few years to consider a second tier of more stringent standards. The Tier 1 standards apply to marine diesel engines manufactured January 1, 2004 or later if they will be installed on vessels flagged or registered in the United States1.
California Releases Report on Ballast Sater Discharge Standards
The California State Lands Commission (SLC) released its Report on Performance Standards for Ballast Water Discharges in California Waters . The report and its accompanying Appendix recommend that the state adopt stringent performance standards and a phased implementation schedule based on the ballast capacity of the vessel and whether it is an existing vessel or new construction. The report recommends interim standards (based largely on the size of the organism) and a long-term standard of ballast water containing no detectable living or culturable organisms. These proposals exceed the standards currently envisioned by the IMO or by pending legislation in the U.S. Congress. The Appendix states that existing technologies are capable of achieving the recommended standards.