US Crude Futures Plunge to Lowest on Record
U.S. crude oil futures collapsed below $0 on Monday for the first time in history, amid a coronavirus-induced supply glut, ending the day at a stunning minus $37.63 a barrel as desperate traders paid to get rid of oil.Brent crude, the international benchmark, also slumped, but that contract was nowhere near as weak because more storage is available worldwide.While U.S. oil prices are trading in negative territory for the first time ever, it is unclear whether that will trickle down to consumers…
Oil Posts Biggest One-day Gain After Trump Touts Saudi-Russia Deal
Crude prices posted their biggest-one day gains on record on Thursday after President Donald Trump said he expects Russia and Saudi Arabia to announce a major oil production cut, and Saudi state media said the kingdom was calling an emergency meeting of producers to deal with the market turmoil.Trump said he had spoken to Saudi Crown Prince Mohammed bin Salman, and expects Saudi Arabia and Russia to cut oil output by as much as 10 million to 15 million barrels, as the two countries signaled willingness to make a deal.Trump did not specify barrels per day (bpd)…
Coronavirus Places Shipping on High Alert
The Wuhan coronavirus outbreak has placed the shipping industry on high alert amid a rising death toll in China and reports that the fast-spreading illness is reaching new shores.The flu-like coronavirus, first identified in Wuhan, Hubei Province, China on December 31, has killed more than two dozen people in China and is believed to have infected more than 900 worldwide, according to several media reports. Cases have been confirmed in Beijing, Shanghai and Guangdong, and internationally in travelers returning from China to Japan…
Dozens Drown on Libya Migrant Boat; Italy Impounds Rescue Ship
Dozens of migrants trying to reach Europe drowned in the Mediterranean on Friday and 100 more were sent back to Libya, the United Nations said, while Italian authorities signalling opposition to more migration from Africa seized a rescue ship.The U.N. refugee agency UNHCR said 65 people drowned when their boat capsized off Tunisia, and 101 others who had been picked up at sea were returned to Libya, despite repeated warnings that it is not a safe country to send people back to.It was one the deadliest shipwrecks involving migrants trying to reach Europe via north Africa this year.Tripoli, a hub for migrants and refugees hoping to sail to Europe after a perilous trek through the Sahara…
Maritime Rule Change Stirs Fears of Diesel Shortage: Kemp
The International Maritime Organization (IMO) has so far resisted pressure to soften or postpone the implementation of new regulations requiring ships to use bunker fuels with a lower sulphur content from the start of 2020.That has prompted warnings from some analysts that the regulations will squeeze the availability of low-sulphur diesel and jet kerosene required by trucks, trains, aircraft, farmers and industry, resulting in big price increases.The regulations and any associated rise in fuel prices will occur in the run up to the next U.S.
China Will Hit Back After New US Tariffs
China accused the United States of bullying and warned it would hit back after the Trump administration raised the stakes in their trade dispute, threatening 10 percent tariffs on $200 billion of Chinese goods.China's commerce ministry said on Wednesday it was "shocked" and would complain to the World Trade Organisation, but did not immediately say how it would retaliate. In a statement, it called the U.S. actions "completely unacceptable".The foreign ministry described Washington's…
US Questions COSCO's Long Beach Terminal Takeover
A U.S. national security review has raised concerns about a takeover by China's COSCO Shipping Holdings Co of a large container terminal in Long Beach, California, the Wall Street Journal reported on Friday.The terminal is part of COSCO's planned $6.3 billion deal to buy shipping firm Orient Overseas International Ltd (OOIL) , the Journal reported, citing people familiar with the matter.COSCO executives met with officials at the Committee on Foreign Investment in the United States (CFIUS) this week and proposed to divest or carve out the Long Beach terminal to ease U.S.
Harvey Gulf Files for Chapter 11 Bankruptcy
Louisiana-based Harvey Gulf International Marine LLC, which has more than 50 vessels in its fleet and supplies offshore oil rigs among other services, filed for Chapter 11 bankruptcy in Houston. Harvey Gulf did not immediately respond to requests for comment. The company said in court papers it had more than $1 billion in debt and has an agreement with lenders to reduce what the company owes. In return lenders would receive the equity in the company when it exits bankruptcy. Other creditors such as suppliers will be paid in full.
Fast-growing Global Trade Boosts Fuel Demand
Freight movements in the United States and around the rest of the world are growing at some of the fastest rates this decade, which should provide a big boost for diesel consumption in 2018. In the United States, the volume of freight moved by road, rail, pipeline, barge and air between September and November was around 6 percent higher than in the same period a year earlier. Freight volumes are growing at some of the fastest rates since 2011, according to the freight transportation services index compiled by the U.S. Bureau of Transportation Statistics (http://tmsnrt.rs/2DB9aLY).
BSEE Proposes Softening of Offshore Drilling Rules - WSJ
A U.S. regulator has proposed rolling back safety measures put in place after the 2010 Deepwater Horizon oil spill, which would reduce the role of government in offshore oil production, the Wall Street Journal reported on Monday. The Bureau of Safety and Environmental Enforcement (BSEE), which regulates offshore oil and gas drilling, proposes relaxing requirements to stream real-time data on oil production operators to facilities onshore, where they are available for review by regulators, the Journal reported.
Mega-ships: ‘Mega-problem in Waiting’ -Xeneta
New alliances, structural change and positive economic trends have transformed the container shipping market over the past year, driving growth and pushing business performance figures from deep red into black. However, despite long-term rates that are, in some cases, up 120 percent year on year, the future remains uncertain due to a looming shadow on the horizon. And, according to Xeneta, it’s not being cast by the ‘usual suspect’. Xeneta, the global benchmarking and market intelligence platform for containerized ocean freight, says a recovery of the container segment is well underway.
Saudi Aramco Selects Lead Underwriters for $100 Bln IPO
Oil giant Saudi Aramco has selected JPMorgan Chase & Co, Morgan Stanley, and HSBC Holdings Plc as lead underwriters on the firm's planned initial public share offering, the Wall Street Journal reported on Tuesday, citing people familiar with the matter. Saudi Arabian Oil Co, known as Saudi Aramco, was not immediately available for comment. Saudi authorities are aiming to list up to 5 percent of the world's largest oil producer on both the Saudi stock exchange in Riyadh, the Tadawul, and one or more international markets in an IPO that could raise $100 billion. The listing is the centerpiece of a Saudi Arabian government plan to transform the kingdom by enticing investment and diversifying the economy away from reliance on oil.
OOIL, COSCO Deny Deal Rumors
China Cosco Shipping Corporation Limited (Cosco Shipping) and Orient Overseas (International) Limited (OOIL) denied reports that they are in negotiations for Cosco Shipping to take over OOIL subsidiary Orient Overseas Container Line (OOCL). Rumors about a deal for OOCL have grown over recent months, amid market consolidation and shake-up as the industry struggles to recover from a slump in freight rates linked to a glut of ships and slowing Chinese economic growth, reports Reuters. OOIL has denied knowledge of any potential bid for its container shipping business OOCL.
The American Club Celebrates Its Centenary
The American P&I Club was founded in New York nearly a century ago. To celebrate its first 100 years, a book entitled The American Club: A Centennial History has just been published. The book tells the story of the Club across ten decades of maritime and marine insurance history both within the United States and across the world. Its author is Richard Blodgett, a former Wall Street Journal reporter whose previous credits include histories of the New York Stock Exchange, Kohler and Co. and JPMorgan Chase & Co. The American Club was founded in February, 1917.
Two Final Bids for Hanjin
Bankrupt Hanjin Shipping Co has received two final bids for its Asia-U.S. route and its 54% ownership in the Long Beach terminal, the Wall Street Journal reported. Hyundai Merchant, South Korea’s largest shipping line, and Korea Line, a smaller operator, have both submitted proposals to acquire Hanjin’s trans-Pacific assets. In their proposals, both companies also expressed their intention to purchase Hanjin’s 54% stake in Total Terminals International LLC, which runs Long Beach Terminal in California. The bidders declined to provide further details, such as bidding prices for Hanjin’s assets.
Maersk Considering New Toll System by Suez Canal Authority
AP Moller-Maersk's Maersk Line shipping arm said it is considering proposals from the Suez Canal Authority for a new toll system that could involve advance payments, reports Reuters. "They have proposd a new payment method and presented it to us, and we are looking at it now," a company spokesman said. The Wall Street Journal earlier quoted Canal Authority Chairman Mohab Mamish as saying it aimed to levy charges for three years or five years in advance. Talks with Maersk, Geneva…
Egypt Seeks a New Suez Canal Toll System
Egypt is in talks with global shipping firms to change the way it charges vessels to pass through the Suez Canal, offering discounts for advance payments as it seeks to raise much-needed hard currency from a struggling industry. Denmark's A.P. Moller-Maersk, which runs the world's biggest container shipping line, said on Tuesday it was considering proposals from the Suez Canal Authority for a new toll system. "They have proposed a new payment method and presented it to us, and we are looking at it now…
Hanjin to Shut European Operations
South Korean container shipper Hanjin Shipping said on Monday that it would close all 10 of its European businesses operations, reports the Wall Street Journal. Hanjin has applied for court approval to close all 10 of its business operations in Europe, including its regional headquarters in Germany, according to a company spokeswoman. The decision to shut down its European business is part of a breakup process for Hanjin, which began earlier this month. A judge had said the court, which is handling Hanjin’s insolvency proceedings, would consider selling the company entirely.
COSCO, China Shipping Merge Shipbuilding Units
China’s two biggest state-owned shipping companies plan to merge 11 shipbuilding yards into a single entity in one of the industry’s biggest consolidation moves yet, reports Wall Street Journal. China’s two biggest state-owned shipping companies plan to merge 11 shipbuilding yards into a single entity in one of the industry’s biggest consolidation moves yet, the Wall Street Journal reports. The two companies had already combined their fleets and port operations last year to create China COSCO Holdings, the world’s fourth biggest container operator in terms of capacity.
Hanjin Shipping plan would see sale of most of its ships
South Korea's Hanjin Shipping Co Ltd, whose collapse has disrupted global trade, is considering a restructuring plan to sell more than half its ships, the Wall Street Journal reported on Friday, citing people familiar with the matter. However, liquidation remained the most likely outcome for Hanjin Shipping, the newspaper cited the sources as saying. Hanjin Shipping, the world's seventh-largest container carrier, filed for receivership late last month in a South Korean court and must submit a rehabilitation plan in December.
Hanjin Files for Bankruptcy in U.S.
South Korea’s troubled container shipper Hanjin Shipping Co Ltd has filed for bankruptcy in the United States to protect its vessels from being seized by creditors, the Wall Street Journal reported. Hanjin filed for protection under chapter 15, the section of the U.S. bankruptcy code that deals with international insolvency matters, on Friday to a court in U.S. Bankruptcy Court in Newark, New Jersey. The company’s filing for rehabilitation, akin to chapter 11 in the U.S., in Seoul has roiled ports in the U.S. and beyond, as creditors seized ships and terminal operators refused to handle cargo.
Safety and Preparation on the Brownwater Radar
Weather Channel Forecasters are predicting a “near-average” hurricane season for 2016, but warn that an average season does not mean businesses and residents shouldn’t prepare for the worst. While it is unclear whether the season, which began June 1, will bring about a few mild storms or a catastrophic Category 5 hurricane, one thing is for sure: safety and preparation are on the radars of the owners and operators of brownwater vessels. Although forecasters consider this year’s predicted 12 named storms “average”…
Sovcomflot Buys Nine PRISCO Tankers
Russia’s PAO Sovcomflot (SCF Group) subsidiary SCF Tankers Ltd. has won an auction for nine arctic-going tankers that belonged Primorsk International Shipping Ltd. (PRISCO), who filed for chapter 11 protection in January 2016. The purchase deal is worth $215 million, and the auction results have been approved by the U.S. Bankruptcy Court for the Southern District of New York, which is handling PRISCO’s bankruptcy case. SCF Tankers outbid Denmark’s Hafnia Tankers Ltd., who submitted a $208 million offer, the Wall Street Journal reported. The nine ships comprise one Aframax crude oil tanker: Zaliv Amerika (104,535-dwt); three LR2 oil product tankers: Zaliv Amurskiy (104…