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Friday, October 19, 2018

Steel Industry News

ESL Shipping Acquires AtoB@C

Image: AtoB@C Shipping AB

Finnish dry bulker ESL ShippingLtd, a shipping company fully owned by Aspo Group, is going to acquire all the outstanding shares of AtoB@C Shipping AB and AtoB@C Holding AB (AtoB@C) that offer shipping services. The enterprise value is EUR 30 million. The final purchase price will be mainly financed by Aspo's existing financing reserves, and approximately EUR 4.2 million will be covered by new shares issued by Aspo Plc. The transaction will require the competition authority's approval in Finland to be completed.

China to Cut Steel Capacity by 2025

© zjk/Adobe Stock

China will shut down more outdated steel plants and bring total capacity to less than 1 billion tonnes by 2025, the president of the country's steel industry association said, adding that national demand for the metal is set to decline gradually. With more than three quarters of firms suffering losses as a result of a price-sapping capacity surplus, China vowed in early 2016 to shut 150-150 million tonnes of annual production in five years in a bid to raise profitability and utilisation rates in the sector. Its capacity then was estimated at 1.2 billion tonnes.

INSIGHTS: William D. Friedman

Working container cargo in the Port of Cleveland (CREDIT: Port of Cleveland)

Port of Cleveland President & CEO and newly elected Board Chairman of the American Association of Port Authorities William Friedman weighs in this month on the Port of Cleveland and its role in the all important Great Lakes trades.When the American Association of Port Authorities (AAPA) announced the election of Port of Cleveland President and CEO, William D. Friedman, to serve as chairman for the 2018-19 year, beginning this October, it was perhaps a conscious decision to tap someone who has a broad range of experience and skills in myriad ports, large and small.

AWIA/WRDA Overwhelmingly Passes in Senate

File Image: AdobeStock / © SunnyS

Bill now heads to White House for President Trump’s signature.Today, the Senate voted 99-1 in favor of America’s Water Infrastructure Act of 2018/Water Resources Development Act, otherwise known as WRDA 2018. The Bill passed in the U.S. House by unanimous voice vote (435-0) in August.“The passage of WRDA 2018 is a win for the Nation’s towboat operators, freight shippers, ports and labor and conservation groups that rely on an efficient inland waterways system,” said Mike Toohey, President and CEO of the Waterways Council, Inc. (WCI).

Sino-Australian Seaborne Trade

Graph: Clarkson Research Services Limited

In recent decades, trade between the Australia and China have made an increasingly significant contribution to growth in global seaborne trade, and the signing of the China-Australia Free Trade Agreement in 2015 is driving further co-operation, says a report by Clarkson Research Services. But just how important has the impact of trade between these two countries been? Between 2006 and 2016, Chinese imports from Australia grew by a CAGR of 17% p.a. to reach an estimated 792mt in 2016.

China's Steel, Coal Curbs a Double-edged Sword for Imports

© Igor Groshev / Adobe Stock

China's determination to tackle its choking pollution by cutting steel and coal capacity should be a long-term negative for exporters of iron ore and coal to the world's biggest commodity importer, but the reality is likely to be far more nuanced. "We will make our skies blue again," Premier Li Keqiang told the opening of parliament on Sunday. That's an unequivocal statement that gives political impetus to Beijing's plans to shutter more excess steel and coal capacity. The policy…

Dry Bulk Shipping Remains Positive: Drewry

© Sebastian / Adobe Stock

The outlook for dry bulk shipping remains positive given the shrinking supply-demand gap, according to the latest edition of the Dry Bulk Forecaster, published by global shipping consultancy Drewry. With high demolition activity and low deliveries the fleet is expected to grow at a slow annual rate of 1 percent over the next five years, while tonne mile demand will grow at a faster pace of around 3 percent per annum. As supply and demand becomes more balanced over the forecast years, charter rates are expected to improve gradually.

US-flag Lakers Cargo Movements Up in April

U.S.-flag Great Lakes freighters (lakers) moved 7.3 million tons of cargo in April, an increase of 9.7 percent compared to a year ago and 7 percent above the month’s five-year average, according to the Lake Carriers’ Association (LCA). Iron ore cargos for the steel industry totaled 4.4 million tons, an increase of 30 percent compared to a year, LCA said. However, coal shipments to power plants and steel mills slipped to 1.2 million tons, a decrease of 11 percent. Limestone loads for construction projects and steel production totaled 1.4 million tons, a decrease of two or three boatloads. All five Great Lakes are currently above their long-term average for water waters, but full loads remain elusive, according to LCA.

Maritime Turkey Set for a Tailwind

Kosbas Terminal serves as a Free Zone. (Photo by Turkish Chamber of Shipping)

Turkey is strategically located, straddling both Europe and Asia with substantial number of Black Sea and Mediterranean Sea ports, thus making maritime trade and shipping of great importance to the country’s economy. Its extensive coastline running for 8,483 km, (1,067 km of which is island shores) has greatly contributed to the growth of Turkey’s maritime sector. Turkish shipyards have a tradition spanning eight centuries. At the time of the Ottoman Empire, shipyards were able to build large…

US-flag Lakes Cargo Volumes Dip in May

File photo: Central Marine Logistics, Inc.

U.S.-flag Great Lakes freighters (lakers) moved 9.5 million tons of cargo in May, a decrease of 12.5 percent compared to a year ago, the Lake Carriers’ Association (LCA) reported. The May float was also 5 percent below the month’s five-year average. Iron ore cargos for the steel industry totaled 4.7 million tons, a decrease of 12.4 percent compared to a year. Coal shipments to power plants and steel mills fell to 1.4 million tons, a decrease of nearly 28 percent. Limestone loads for construction projects and steel production totaled 2.9 million tons, a virtual repeat of a year ago.

Port of Hamburg Seaborne Cargo Down Slightly in 2016

Containervessels at HHLA Container Terminal Altenwerder (Photo: Port of Hamburg)

First-half seaborne cargo throughput of 70.2 million tons reflected stabilization of the trend for the Port of Hamburg. At the same time, a steep increase occurred in freight transport by rail to/from the Port of Hamburg. At 70.2 million tons, in the first half total seaborne cargo throughput, which includes the general and bulk cargo segments, was slightly – 0.9 percent – down on the previous year. In the first six months of 2016 containerized cargo handling totalled 4.5 million TEU – 20-ft standard containers – corresponding to a downturn of 1.2 percent.

Hot Month at Marseille Fos

In contrast to an international downturn, French port Marseille Fos has reported exceptional results for July with 7.8 million metric tons of cargo and 387,000 passengers – up by 18.6 percent and 13 percent respectively on the same month last year. General cargo totaled 1.64 million metric tons (up 8 percent) after growth in all three sectors – containers, ro-ro and conventional. Box throughput rose 11 percent to more than 1 million metric tons, representing a 12 percent unit increase to 112,768 teu. Traffic through the Fos deep sea container terminals is now 4 percent ahead on the first seven months of last year, while the Terminal de Mediterranee in Marseille set a July record for its container activity. Liquid bulks were 26 percent better at 5.11 million metric tons.

US-flag Lakes Cargos Down Almost 10% in July

U.S.-flag Great Lakes freighters (lakers) moved 9.85 million tons of cargo in July, a decrease of 9.5 percent compared to a year ago, the Lake Carriers’ Association  (LCA) reports. The July float was also 9 percent below the month’s five-year average. Iron ore cargos for the steel industry totaled 4.6 million tons, a decrease of 3.4 percent compared to a year ago. Coal shipments to power plants and steel mills fell to 1.7 million tons, a decrease of 25 percent. Limestone loads for construction projects and steel production totaled 2.9 million tons, a decrease of 10 percent compared to a year ago. Year-to-date U.S.-flag carriage stands at 40.4 million tons, a decrease of 5 percent compared to the same point in 2015. Iron ore cargos are up 4.8 percent, but coal cargos have dipped 27 percent.

Trump: U.S. Hits Steel, Aluminum Imports with Hefty Tariffs

© furuoda/Adobe Stock

U.S. President Donald Trump announced on Thursday he would impose tariffs of 25 percent on imported steel and 10 percent on aluminum, in a move the administration said would protect U.S. industry, but which critics said would fail to boost jobs and risked stoking a trade war with China. Trump, speaking after a meeting with U.S. steel and aluminum makers said the duties would be formally announced next week. “We’re going to build our steel industry back and our aluminum industry back," he said. News of the tariffs drove the stocks of U.S.

Trump to Set Hefty Tariffs on Steel, Aluminum Imports

© Amarinj / Adobe Stock

U.S. President Donald Trump announced on Thursday he would impose tariffs of 25 percent on imported steel and 10 percent on aluminum, in a move the administration said would protect U.S. industry, but which critics said would fail to boost jobs and risked stoking a trade war with China. Trump, speaking after a meeting with U.S. steel and aluminum makers said the duties would be formally announced next week. “We’re going to build our steel industry back and our aluminum industry back," he said. News of the tariffs drove the stocks of U.S.

Rotterdam Port Throughput Slips

Courtesy Port of Rotterdam Authority

Compared to the excellent first three quarters of 2015 (+5.4%), cargo throughput in the same period this year fell by 1.9%. The decrease was particularly strong in coal and iron ore. Allard Castelein, CEO of the Port of Rotterdam Authority: “Each of the different sectors in the port has its own dynamic. The 1.9% decrease is consequently the sum of a number of different developments. Last year, throughput in the port increased by 4.9%, to 466 million tonnes. Castelein: “Throughput figures only tell part of the story. Throughput in liquid bulk fell by 0.4%, to 160.0 million tonnes.

US-flag Lakes Cargo Volume Dips in September

File photo: Paul Csizmadia

U.S.-flag Great Lakes freighters (lakers) moved 9.1 million tons of cargo in September, a decrease of 7 percent compared to a year ago, according to the Lake Carriers’ Association (LCA). The September float was also 8.7 percent below the month’s five-year average. Iron ore cargos for the steel industry totaled 4.3 million tons, a virtual repeat of a year ago. Coal shipments to power plants and steel mills fell to 1.8 million tons, a decrease of 14.3 percent. Limestone for construction projects and steel production totaled 2.5 million tons, a decrease of 15.2 percent compared to a year ago.

India Backs Ship Recycling Training Program

Image: Mahavir Group

As part of its Coastal Community Development Program under Sagarmala, the Ministry of Shipping has sanctioned Rupees 10 Crore ($1.5 mln) as part of the first instalment to the Gujarat Maritime Board for capacity building and safety training of 20,000 workers involved in the ship recycling activities at Alanag- Sosiya recycling yard in Bhavnagar district in Gujarat. The total project cost is estimated to be Rupees 30 Crore over a period of 3 years. The initiative has been identified…

Grain and Project Cargo Dominate St. Lawrence Seaway Traffic in October

FederalCaribou (Photo credit: GreatLakes Seaway and FedNav)

“The Great Lakes St. Lawrence Seaway System saw a steady flow of traditional cargoes during the month of October,” said Betty Sutton, Administrator of the Saint Lawrence Seaway Development Corporation. “Last month, shipments of aluminum, steel, generators, crane components, iron ore and containerized goods moved in the system. Thanks to a robust U.S and Canadian grain crop, agricultural products including corn, soy beans, wheat and sugar beet pellets made up the majority of the…

US-flag Lakes Cargos Down in October

File photo: Jerry Mueller

U.S.-flag Great Lakes freighters (lakers) moved 8.8 million tons of cargo in October, a decrease of 9.2 percent compared to a year ago, and 10.2 percent below the month’s five-year average, according to the Lake Carriers’ Association (LCA). October was also the sixth consecutive month in which cargos trailed the previous year. Iron ore cargos for the steel industry totaled 4.4 million tons in October, an increase of 5.3 percent compared to a year ago. However, coal shipments to power plants and steel mills fell to 1.3 million tons, a decrease of 43 percent, LCA said.

Ken Konrad: A Driven Innovator

Ken Konrad and his wife Kathy decided to diversify from their steel mill operations in the early 1990s and Konrad Marine was born. (Photo: Konrad)

At his core Ken Konrad is an innovator and engineer, looking at problems and seeing solutions. Walk around Konrad’s manufacturing and testing facility for even a short time and it is easy to see that Ken Konrad, owner and president, possesses a sharp intellect and an engineer’s mind, as he clearly revels in sharing insight on business and manufacturing practice that goes in each of his company’s rugged stern drive units. While Konrad has quickly established itself as a quality name in the commercial stern drive sector, it is still a newer business line within the company’s overall scope.

U.S.-Flag Lakes Cargos Up Nearly 7%

U.S.-flag Great Lakes freighters (lakers) moved 8.4 million tons of cargo in November, an increase of 6.7 percent compared to a year ago. However, the November float was  6.7 percent below the month’s 5-year average. Iron ore cargos for the steel industry totaled 4.7 million tons in November, an increase of 29.6 percent compared to a year ago. However, coal shipments to power plants and steel mills fell to 1.2 million tons, a decrease of more than 20 percent. Aggregate and fluxstone for construction projects and steel production totaled 2 million tons, a decrease of nearly 10 percent compared to a year ago. Year-over-year U.S.-flag carriage stands at 76.2 million tons, a decrease of 4.5 percent. Iron ore cargos are up 6.6 percent, but coal loads have dipped 25.8 percent.

Traditional, Project Cargoes Transit St. Lawrence Seaway in November

© icholakov / Adobe Stock

“November was a good month for the export of agricultural products and shipments of aluminum ingots on the Great Lakes Seaway System,” said Betty Sutton, Administrator of the U.S. Saint Lawrence Seaway Development Corporation. “Under the binational trade development program known as ‘Highway H2O’, the U.S. Sutton added, “The U.S. Great Lakes ports of Toledo, Ohio; Duluth, Minn.; Burns Harbor, Ind.; and Milwaukee, Wis. handled corn, soybeans and wheat exports bound for Europe, South America, and Central America.

Maritime Reporter Magazine Cover Oct 2018 - Marine Design Annual

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

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