Hapag-Lloyd: Shipping Demand Up, More Mergers in 2018
German shipping group Hapag-Lloyd sees demand for transport growing 4 percent in 2018 and expects more shipping firms to merge in the year, the chief executive said. CEO Chief Executive Rolf Habben Jansen also said Hapag-Lloyd, which merged with its Arab peer UASC, could achieve 85 to 90 percent of targeted annual savings from the deal of $435 million this year and 100 percent from 2019. More savings could be made in future, he told reporters in Hamburg, where he reiterated guidance for rising full-year 2017 earnings before interest, tax, depreciation and amortisation (EBITDA) and for EBIT.
Oil Prices a Nine-Year High As Iraq Suspends Exports
Oil prices rocketed to a new nine-year high on Nov. 22 after Iraq suspended oil exports under its humanitarian exchange program with the United Nations. London January Brent futures opened at $25.90, the highest oil price since January 1991, when allied forces were preparing to eject Iraqi troops from Kuwait. Later in the day Brent stood at $25.67 a barrel, 63 cents up from Friday's close. Prices leapt as Iraq's Oil Minister Amir Mohammed Rasheed confirmed that Iraq had stopped oil deliveries under the latest six-month phase of its oil-for-food exchange with the UN. Baghdad protested the UN's proposal to extend by two weeks the sixth phase of the program and accused the United States of trying to push other Security Council members into accept a draft resolution on weapons inspections.
Offshore Rig Utilization Hits 2-Year High
Worldwide offshore rig utilization hit a fresh two-year high the week ending March 23, according to ODS-Petrodata Group. Global rig utilization climbed 0.5 percent to 88 percent, due to a three-rig net increase in contracted rigs, ODS-Petrodata reported. Of the world's 649 offshore rigs, 571 are under contract. Utilization is the highest since October 2, 1998 when it reached 88.7 percent. U.S. Gulf rig utilization remained unchanged at 88.1 percent, with 185 out of the region's 210 mobile offshore rigs under contract. European offshore rig utilization remained unchanged at 92.1 percent, with 93 of the region's 101 mobile offshore rigs under contract.
Hedging Energy Bets: The Case for a 2018 Oil Bull Run
Hedge funds gamble OPEC will tighten oil market too much. Hedge funds are the most bullish about oil prices in years, expecting further gains even as prices touch multi-year highs and ignoring the risk linked to such a large concentration of positions. A record net long position has been accumulated by hedge funds and other money managers, amounting to 1,183 million barrels in the five biggest futures and options contracts covering crude, gasoline and heating oil. Portfolio managers held a record 1,328 million barrels of long positions in Brent, WTI, U.S. gasoline and U.S. heating oil on Dec.
Sea Containers Posts Loss
Marine transport company Sea Containers Ltd. posted a fourth-quarter loss, versus a profit a year earlier, citing a bigger fuel bill and a drop in demand for container rentals. The company posted a net loss of $15.8 million, or 85 cents per share, compared with a profit of $8.0 million, or 43 cents per share, a year earlier. Shares of Sea Containers closed on Tuesday at $19.90 on the New York stock Exchange, above a 52-week low of $18.50 and off a year high of $29.69. - (Reuters)
Report: DSME Targets $11b Orders in 2011
Daewoo Shipbuilding & Marine Engineering aims to secure $11 billion in orders next year, according to a Reuters report. The global news service quoted Sang-tae, chief executive of the South Korean shipbuilder, that the firm took $11,2 billion in orders this year, higher than its 2010 target of $10 billion, according to Edaily. (Source: Reuters)
Container Ship Deliveries Hit New Record
Container vessel capacity delivered in 2015 has reached a new record as 212 new cellular containerships, with a total capacity of 1,714,860 teu, have joined the global fleet over the course of this year, according to Alphaliner Research. The capacity influx from newbuildings therewith clearly exceeded the previous records of 1,527,800 teu, recorded in 2008, and 1,466,870 teu, delivered in 2014. Carriers were apparently undeterred by weakening market conditions last year and continued…
Oil Price Just Down From Two-Year Highs Set Last Week
Oil markets placed another bet on tightening supply, supporting prices in the vicinity of 22-month highs touched last week. Benchmark Brent for September hit $20.87 a barrel today, just 13 cents off a Friday peak of $21 that was the crude's highest value in almost two years.
Petroleos: Oil Output Is Fine
The president of Venezuelan state oil giant Petroleos de Venezuela (PDVSA) insisted he did not see any need for OPEC member countries to raise output to cool sizzling oil prices. With prices close to 10-year highs, pressure is growing on the oil cartel from consumer nations to agree to pump more oil at its next ministerial meeting in Vienna on Sept. 10. But PDVSA chief Hector Ciavaldini, reiterating a position expressed by other Venezuelan oil officials such as OPEC President Ali Rodriguez, said supply and demand of crude oil on world markets was well balanced.
P&O Surges On Positive Report
Shares in Peninsular & Oriental Steam Navigation Co. surged five percent on Wednesday as a positive newspaper report on the shipping sector highlighted better prospects for the firm. The stock was buoyed by a front page article in the Financial Times saying shipping rates had hit 30-year highs on the back of expanding world trade, rising oil demand and the withdrawal of substandard vessels because of safety fears.
Oil Retreats Slightly
Oil prices stayed strong, yet down a touch from a nearly 2 year high, with Benchmark Brent crude closing at $21.31 down two cents in London.
Jurong Shares Surge on Newbuilding Order
Jurong Shipyard shares reportedly surged more than eight percent, or Singapore $0.60, to a year high of S$8.10 morning on hopes that the yard had won a multi-million dollar new building order.
Japan Shipbuilders Take More Orders in Dollars
According to a Dec. 16 report from The Wall Street Journal, as the yen remains near a 15-year high, Japanese shipbuilders are coming under pressure to settle a bigger chunk of their contracts in dollars as their mainly domestic customers increasingly demand it. (Source: The Wall Street Journal)
Brazil Port Blaze Pushes Sugar Prices to Year's High
A fire in the Copersuca company's huge sugar terminal in the Port of Santos has burnt some 180,000 tonnes of raw sugar, damaging six warehouses and pushing international prices to a one-year high. reports the BBC News. The authorities in the port of Santos informed the BBC it took six hours to bring the fire under control, while the cause of the fire is unknnown and the cause of the blaze is still being investigated. Brazil is the world's main sugar exporter, accounting for nearly half of international sales. Source: BBC News
Vard 2014 Order Book Bulging: Q1 2014 Report
Joint Singapore/Norway based offshore & specialised vessel designer and shipbuilder, Vard Holdings, has released its first quarter 2014 financial results, showing its order book value at a five-year high. During the quarter, one of the delayed vessels at Vard Niterói was completed, reducing the yard’s load from its peak in the fourth quarter of the last financial year. Vard Promar, the Group’s second Brazil yard, is in the final stage of construction, with the installation of the gantry crane to be finalized in July 2014.
Is The Tanker Top Near?
Oil tanker markets are again knocking at price barriers with year-highs expected to tumble as demand exceeds supply of modern ships, brokers were reporting. Shortages of high quality oil company approved vessels were causing rates to peak for Suezmaxes in the Mediterranean and West Africa and for Suezmaxes in the North Sea. July cargo demand for VLCCs in the Middle East was also seen possibly puncturing previous highs for the year. Strong demand from Western loading areas could deplete a potential 68 vessels available in the Middle East, of which just half were modern, broker E.A. Gibson said in a report. "(This) should contribute to a further upturn in rates," the broker said. Westbound VLCC rates have remained stable all week at W87.5-90 ($15.50 per ton) for the U.S. Gulf.
N. Asia Snaps up Russian Crude Oil
Mideast crude freight to Japan highest since 2010. North Asian refiners have snapped up Russian crude oil loading in the last two months of this year to meet peak winter demand as Middle East and West African grades have become more costly after freight rates hit multi-year highs, traders said on Thursday. The freight rate for chartering Very Large Crude Carriers (VLCC) plying the key Middle East to Japan route <DFRT-ME-JAP> and the West Africa to China route are at the highest in more than five years, prompting refiners to look at crude within Asia and from nearby sources such as Russia. "The spike in freight rates pushed up the regional crude market," said a Singapore-based trader.
Raytheon's Results Beat The Street's Targets
The nation's third- and fourth-largest defense contractors on Wednesday beat Wall Street's first-quarter profit targets, posting strong gains in operating results driven by their combat and electronic systems businesses. Raytheon Co., maker of the Patriot missile, business jets and radar systems, reported a 21 percent increase in profits from ongoing operations to edge past analysts' consensus estimate. But after the affect of a large charge, the company showed a net loss. General Dynamics Corp. surprised analysts with a 15 percent jump in net profits that easily surpassed expectations. The maker of nuclear submarines, tanks and destroyers followed by boosting guidance for full-year profits. Defense stocks shot higher in Wednesday trading amid a broad market rally.
Baltic Index Hits near 3-year High
The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, touched a near three-year high on Monday, supported by higher rates across all vessel segments. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, gained 23 points, or 1.73 percent, at 1,355 points - the highest since Nov. 2014. "The market has been solely driven forward by the capesize shipping segment this year. Only recently have we seen panamax and handysize climb to profitable freight rates…
Baltic Dry Index Climbs to an All Year High
The dry bulk market has been devastating so far in 2015. However, June has somehow reversed it all in less than three weeks if judged by the Baltic Dry Index (BDI). June has delivered what May was unable to – keeping the momentum going. Since the drop in January, we have seen the BDI average at 576 for the four months of February to May. In contrast to that the BDI stand at 829 on 24 June 2015. According to data from Commodore Research, Chinese iron ore fixtures hit an all-year-high in mid-May.
North Sea Drilling Applications Reach High
Stv is reporting that the number of applications for companies applying to drill for oil in the north sea is at a 30 year high. Government ministers say fields are clearly not in their twilight years and so far it seems that oil companies have not been put off by recent tax rises. The north sea rigs and platforms are supplied by vessels which leave from Aberdeen's harbour, so this boom certainly seems to be good news for the industry and the local economy. The government licence companies to explore and drill certain blocks in the sea and applications for those licences are at a 30 year high - 147 applications from 121 companies. Technology developed in Aberdeen has developed innovative new ways of extracting oil and the energy minister has praised local firms and staff.
Winter Storm Threatens U.S. East Coast Energy Industry
The U.S. energy industry braced for a major test to refineries and power plants as an intense winter storm roared up the Atlantic Coast, bringing heavy snowfall and high winds to a region already beset with several days of extreme cold. The storm is the product of a rapid and rare sharp drop in barometric pressure known as bombogenesis, or bomb cyclone. Heavy snow pounded the East Coast along a front stretching from Maine as far south as North Carolina early on Thursday, knocking out power, icing over roadways and closing hundreds of schools.
Tanker Rates Continue To Soar
Modern vessel shortages in the North Sea are pushing Aframax and Suezmax tanker rates to year high levels. Rates for Aframax 80,000 ton vessels have repeated the year-high of W217.5($8.00 per ton) for late month U.K./Continent liftings, but brokers said June business was now played out. One million barrel Suezmax tankers were benefiting strongly from bouyant North Sea markets with transatlantic rates climbing steeply to W165-W180. "There is a self-fueling cycle with each sector supporting the other in turn," a broker said. Attempts to replace Aframaxes with Suezmaxes after a number of the smaller ships were taken out of the short North Sea market for transatlantic crossings last month has put pressure on both.