Volume Rises at Port of Rotterdam
Port of Rotterdam posted a record overall freight tonnage in the first quarter of 2019, up 5.1% on the same period last year, thanks to strong growth in container traffic.In total, 123.9 million tonnes were handled compared with 117.8 million tonnes in the same period in 2018."The increase mainly concerned the throughput of containers (+7.3% in TEU, +5.9% in tonnes) and fuels. Mineral oil products, iron ore and scrap throughput fell," said a press release from the largest port in Europe…
“It’s the steel production, stupid!”
BIMCO's Peter Sand, in a new report, weighs in on the implications for the Dry Bulk sectors.Chinese imports of iron ore keep falling, while its crude steel production keeps growing. China’s increased use of scrap metal for its production of crude steel is fundamentally critical to the dry bulk shipping industry. Mostly Capesize ships are impacted by this, way beyond the temporary iron ore export disruptions in Brazil and Australia.Chinese steel production grew by a massive 12.6 million tonnes (+9.2%) in the first two months on 2019 as estimated by China Iron and Steel Association (CISA).
EU Takes Aim at Turkish Steel Sector Buckling Under Trump Tariffs
The European Commission's move to extend its steel import restrictions threatens to force Turkish mills, already buckling under the weight of U.S. tariffs, to cut production further or in some cases close down, sources said.The Commission said on Wednesday it will extend and beef up its existing "safeguard" steel import caps until July 2021 to counter concerns that European Union markets are being flooded with steel no longer being exported to the United States.For Turkey's vast steel sector, the fourth largest contributor to the country's economy, the caps could prove particularly painful as the EU has given it additional "country-specific" quotas.Under the safeguards…
NASSCO Expands Ships Production Capacity
National Steel and Shipbuilding Company (NASSCO) held a ribbon-cutting ceremony on Friday to commission its new panel line, which expands steel production capabilities for the construction of commercial and government ships in San Diego.The American shipbuilding company with three shipyards located in San Diego, Norfolk, and Mayport said in a press release that the new panel line enables distortion-free welding of plates as thin as five millimeters to produce lighter, more energy efficient ships.The cutting-edge facility uses hybrid laser arc welding and numerically controlled robots to mill…
U.S.-Flag Cargo Movement on Lakes in November Mirrors A Year Ago
U.S.-flag Great Lakes freighters (lakers) moved 8.6 million tons of cargo in November, a virtual repeat of a year ago. The November float was also a near carbon copy of the month’s 5-year average.Iron ore cargos for steel production totaled 4.6 million tons, an increase of 9.6 percent compared to a year ago.Coal loads totaled 1.3 million tons, again little changed from a year ago. Shipments of aggregate, fluxstone, chemical stone and scrubber stone totaled 2.3 million tons, a decrease of 8 percent compared to a year ago.Year-to-date U.S.-flag cargo movement stands at 75.3 million tons…
AWIA/WRDA Overwhelmingly Passes in Senate
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).
Drewry: Capesize Charter Rates to Go Up
Drewry maintains a positive outlook on the dry bulk market and expects charter rates to improve from current levels, driven by moderate increases in vessel demand and low growth in vessel supply as a result of restrained new ordering and a thin orderbook, according to the latest edition of the Dry Bulk Forecaster, published by global shipping consultancy Drewry.The uncertainty surrounding the dry bulk market, driven by trade wars could, nonetheless, slow down the increase in charter rates.
Evergreen Group Celebrates 50th Anniversary
Evergreen Group celebrated its 50th Anniversary at the Chang Yung-Fa Foundation, home of the charity set-up by Evergreen Group Founder and Chairman Dr. Y.F. Chang, said a press release from the company.In addition to senior executives and employees of the Group’s businesses, the event was also attended by public officials, customers and business agents from both the shipping and airline industries as well as representatives of supply chain partners from more than fifty countries.The…
US-flag Great Lakes Cargo Movement Steady in July
U.S.-flag Great Lakes freighters (lakers) moved 9.8 million tons of cargo in July, a virtual tie with a year ago, the Lake Carriers’ Association reported. The July float was, however, 6.4 percent below the month’s five-year average.Iron ore cargos for steel production totaled 5.2 million tons, an increase of 5 percent. The July ore float was also the highest monthly total for U.S.-flag lakers since December 2014.Coal loads totaled 1.3 million tons, a decrease of nearly 11 percent.
EU Must Speed Up Approvals of Asian Shipbeaking Yards
The European Union should step up its assessment of Asian shipbreaking yards to allow the effective implementation of the Hong Kong Convention, said Maritime Strategies International (MSI).In its MSI Foresight, the independent research and consultancy firm noted that by December 31 2018, all vessels flying the flag of an EU member state (around 12% of the current global merchant fleet) will need to comply with the EU Ship Recycling Regulation (SRR); the rule that brought the Hong Kong Convention into EU law.From 2019 onwards…
US-flag Great Lakes Cargo Shipping Steadies
U.S.-flag Great Lakes freighters (lakers) moved 9.7 million tons of cargo in June, a near mirror image of a year ago but 3.5 percent below the month’s five-year average, the Lake Carriers’ Association reported.Iron ore cargos for steel production totaled 4.6 million tons, a decrease of 6.9 percent, while coal loads totaled 1.4 million tons, a decrease of 13.7 percent.Offsetting those decreases was a 21 percent surge in limestone cargos. Shipments of aggregate, fluxstone, chemical…
China to Cut Steel Capacity by 2025
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.
Interview: Robert Kunkel, Alternative Marine Technologies
Bob Kunkel needs no introduction to Marine News readers. Kunkel, President of Alternative Marine Technologies, previously served as the Federal Chairman of the Short Sea Shipping Cooperative Program under the Maritime Administration and Department of Transportation from 2003 until 2008. A past Vice President of the Connecticut Maritime Association, he is a contributing writer for Maritime Logistics Professional magazine and of course, Marine News. A graduate of the Massachusetts Maritime Academy…
US-flag Great Lakes Shipping Down in March
Cargo moved by U.S.-flag Great Lakes freighters in March decreased 13 percent compared to a year ago, the Lake Carriers’ Association reported. However, the March float of 1.8 million tons topped the month’s five-year average by more than 15 percent.Iron ore cargos for steel production dominated the month. Cargos totaled 1.4 million tons, a decrease of 17 percent. That no iron ore moved from Escanaba, Mich., is a factor in the decrease. That port used to resume iron ore shipments in early to mid-March. However, the mine that shipped through Escanaba has been indefinitely idled.
Product Lifecycle Management for Shipbuilding
Tomorrow’s high tech fleets will depend on shipyards – long after the christening is over. Siemens PLM software makes that dream possible – today. According to global powerhouse Siemens, a major transformation is underway in the marine sector. As operators strive to develop more energy-efficient, reliable and environmentally friendly vessels that also lower operating costs, they will increasingly depend on shipyards to make that happen. That’s right: shipyards. Long after the vessel slides into the water and the christening party is but a distant memory…
China Iron Ore Imports Drive Bulker Demand
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.
Dry Bulk Shipping Remains Positive: Drewry
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.
Baltic Index Up On Higher Capesize Rates
The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, crawled up for the second straight session on higher rates for capesize vessels. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, was up six points, or 0.6 percent, at 1,007 points. The capesize index rose 64 points, or 4.07 percent, to 1,635 points. Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, rose $364 to $12,446.
RRS Sir David Attenborough: Construction Progressing
Cammell Laird shipyard informs it has reached the nine-month milestone in its project to build the U.K.’s new polar research ship the RRS Sir David Attenborough. The Merseyside-based engineering services giant beat off competition from around the world to be appointed to build the £15 0million vessel. The ship, which is the biggest commercial shipbuilding project in Britain for 30 years, has been commissioned by the Natural Environment Research Council (NERC), and it will be operated by British Antarctic Survey (BAS), transforming the U.K.’s polar research capability.
Multipurpose Shipping Looks Bullish
Many key drivers for dry cargo demand have reported a significant uptick in 2017, resulting in improving conditions for all vessels in the multipurpose shipping sector, according to the latest Multipurpose Shipping Market Review and Forecast report published by global shipping consultancy Drewry. This year started out well with most demand drivers for the breakbulk sector strengthening from the lowest levels seen in 2016 with the trend forecast to continue in the medium term at least.
Meyer Turku Boosts Shipyard Investment
Meyer Turku shipyard said it will more than double its investments from €75 million ($89.6 million) to €185 million ($221 million) as it aims to boost steel production to fulfill its record order book stretching into 2024. The investments include a new plate cutting line, a new profile cutting line and a new panel line to the steel halls to be ready by end of 2018/start of 2019. Head of steel production of Meyer Turku, Mika Heiskanen, said, “We are rebuilding Turku shipyard into a modern ship assembly factory.
Cautious Optimism on Multipurpose Shipping: Drewry
Recovering demand for multipurpose shipping combined with improved market conditions for competing sectors will result in rising market share for the multipurpose shipping fleet and a recovery in freight rates in 2018, according to the latest Multipurpose Shipping Market Review and Forecaster report published by global shipping consultancy Drewry. Although China’s plans to curb steel production in an attempt to clean-up the air pollution blighting its cities may well slow steel exports over the short term, the longer term outlook is still positive for the multipurpose and heavy lift sector.
Upbeat Outlook for Dry Bulk Charter Rates
Drewry expects dry bulk shipping charter rates to recover from the second quarter of 2018 on the back of strengthening Asian iron ore demand, according to the latest edition of the Dry Bulk Forecaster, published by global shipping consultancy Drewry. For the medium and long term, Drewry holds the same views as in previous forecasts. Chinese steel production is expected to pick up pace at the end of winter, in the second quarter of next year, by which time production curbs will have relaxed. Strong infrastructure and construction activities will further strengthen steel consumption.