Weekly edition 5 May

Strife returns to life on the waterfront

AUSTRALIA experienced its worst waterfront industrial disruption since the famous 1998 ‘lockout’ on the weekend, with the Maritime Union holding strikes at Patrick-operated container terminals.

Soaring $ brings on imports spending binge

A SURGE in the value of imports to Australia was reported in the month of March, Australian Bureau of Statistics figures show.

More vessels fail to meet sulphur rule

LOWER limits on the sulphur content of bunker fuel ushered in under new regulations in July last year have sparked a dramatic jump in cases of vessels failing to comply with regulations.

Korean shipbuilder seeks bankruptcy protection

SEKWANG Heavy Industries, a troubled, mid-size maker of gas carriers and specialised vessels, has filed for court protection, the company has confirmed, becoming the latest casualty in a string of Korean shipping industry collapses.

Singapore sale form brings in key changes

THE SINGAPORE Sale Form (SSF) for the sale and purchase of secondhand ships was published in January 2011 by the Singapore Maritime Foundation in response to the Asian maritime community’s perceived need for a form that would cater to current market practice.

Zero freight rates loom once more

ASIA-Europe freight rates have resumed their downward spiral, with the Shanghai Container Freight Index (SCFI) showing a 1.4%fall on spot rates, with carriers now said to be offering rates below fuel costs.

Pacific Basin gears up for further handymax buys

HONG Kong-listed dry bulk operator Pacific Basin is getting closer to investing some of its US$1bn war chest to expand capacity at a time when the outlook for the dry bulk sector is threatened by rising costs and oversupply.

China and India set to spearhead Asia-Pacific growth – IMF

CHINA and India will spearhead the average 7% annual economic growth in Asia and the Pacific over the next two years, says a new regional report by the International Monetary Fund.

Box lessor revenue surges

CONTAINER lessor CAI International reports that customers are extending leases until year-end rather than buying new equipment.

What payoff for shipping if yuan goes global?

Container Lines’ China-based customers will demand the option of settling in yuan once the market is big enough, reports COLUM MURPHY

Truth of piracy patterns blowin’ in the wind

Research points to the geographical distribution of Somali piracy being linked to the monsoon and suggests that the crime may increase after ransoms have been paid, reports ROGER HAILEY

Boxship rates hover on uncertainty

LOW ACTIVITY and pressurised charter rates across the major containership sectors have left owners and brokers in the dark about prospects for the market and in which direction prices are set to move next.

Containership demolition down as new orders pick up

THE INVERSE relationship between containership newbuilding and scrapping activity is brought into stark relief in Braemar Seascope’s latest fleet statistics that show a steep decline in demolition over the last nine months at the same time as ordering restarted after a two-year gap.

Arctic thaw to transform world trade

THE OPENING of the Arctic is set to transform the balance of global equity as new trade routes and opportunities emerge.

Boxship rates hover on uncertainty

LOW ACTIVITY and pressurised charter rates across the major containership sectors have left owners and brokers in the dark about prospects for the market and in which direction prices are set to move next.

Containership demolition down as new orders pick up

THE INVERSE relationship between containership newbuilding and scrapping activity is brought into stark relief in Braemar Seascope’s latest fleet statistics that show a steep decline in demolition over the last nine months at the same time as ordering restarted after a two-year gap.

Arctic thaw to transform world trade

THE OPENING of the Arctic is set to transform the balance of global equity as new trade routes and opportunities emerge.

Ocean Freight curbs losses

GREECE-based Ocean Freight has returned to the black for the last quarter of 2010 as it seeks to renew its fleet and recast itself as a specialist in large dry bulk carriers.

The shock absorber

The South East Asia trade’s split personality – part dedicated, part feeder – makes it twice as vulnerable to market forces. But, as Dale Crisp reports, shipping lines’ evolved resilience keeps them optimistic.

Newcomer barely disturbs the millpond

NO-ONE likes their comfortable life disrupted and the September 2010 arrival of the new SAL service was certainly not welcomed by the long-established groups.

Malaysian firm’s profit warning

MALAYSIAN Bulk Carriers (MBC) expects reduced profits and revenues in 2011 as oversupply continues to put pressure on rates, including those for contracts with key customer Malaysian energy provider Tenaga Nasional.

Senators seek to waive 100% box scanning law

A BILL introduced in the US senate has proposed a broad waiver of the requirement to scan 100% of incoming containers at all foreign ports, which is currently scheduled to take effect from July 2012.

OOCL, Wan Hai top box line profit

A PAIR of mid-sized Asian container lines outshone the industry heavyweights in terms of profitability last year, with Orient Overseas Container Line top of the league when measured by operating margin.

Fleet renewal program set for Boskalis

BOSKALIS, the Netherlands-based dredging maritime services operator, has unveiled a three-year strategy that will see a €1bn (US$1.4bn) investment to renew and expand parts of its specialist fleet.

Singapore’s green shipping drive receives dollar boost

SINGAPORE will spend at least S$100m(US$80m) over the next five years in a comprehensive package to promote environmentally-friendly shipping, including a 20% rebate on annual tonnage tax for qualifying Singapore-flagged vessels.

US aims to revive waterways as traffic jams worsen

GAS-GUZZLING road haulage may dominate freight flows within the US – it carries 70% of all domestic loads – but Washington knows that the nation’s historic waterways must regain lost ground if gridlock is to be avoided.

South African coal terminal braced for rail link closure

RICHARDS Bay Coal Terminal (RBCT) is insisting that export volumes at Africa’s most important coal port will not be hit by the 20-day partial closure of the rail link to South Africa’s mining heartlands next month, although local shipping sources believe that delays and perhaps minor congestion are almost inevitable.

BHP iron ore output surge as coking coal falls

BHP BILLITON has reported record iron ore production in the first nine months of its financial year, in contrast to metallurgical coal volumes that have been weakened by continued wet weather in eastern Australia.

Pacific Shipping Trust aims for capesize boost

REVENUES at Singapore-listed Pacific Shipping Trust could jump by 30% in the fourth quarter of this year when it takes delivery of two capesize vessels for long-term charter to Jiangsu Shagang, China’s largest privately-owned steel maker.

Indian conglomerate IPO rumours quashed

INDIAN conglomerate Essar Group has denied considering a near-term London listing for its shipping, ports and projects businesses, following in the wake of a US$2bn debut for its energy division in 2010.

Maritime arbitrators see 20% fall in cases

THE LONDON Maritime Arbitrators’ Association witnessed a 20% fall-off in cases registered with the body in 2010.

Dry paper volumes rise 9% in first quarter 2011

DRY FREIGHT derivatives volumes traded in the first quarter of 2011 rose by 9% on the previous quarter’s levels, but showed a 17.5% drop on volumes traded over the first quarter of 2010.

Secondhand Japanese bulkers fetch premium on China ships

JAPANESE-built dry bulk carriers are still achieving premiums over Chinese constructed vessels despite a general trend of falling ship values.

Japan’s K Line buys out remaining SAL stake

JAPANESE shipping group K Line is buying the remaining stake in German heavylift player Schiffahrtskontor Altes Land (SAL). The deal will be effective from June 30, 2011 but the purchase price was not revealed.

Casualty briefs 5 May 2011

Maritime

Box line boss calls for urgent action to eradicate piracy

THE POSSIBILITY of wide-scale rerouting of ships and subsequent damage to global supply chains is a reality that governments must take seriously if immediate steps are not taken to step up counter-piracy efforts, Mediterranean Shipping Co chairman Gianluigi Aponte has warned.

Recalling the pioneering days when boxships carried 200 teu

AS MAERSK puts pen to cheque book, ordering ten 18,000 teu boxships, it is time to reflect on how far the global containerised industry has come since the 1970s.

Sounds familiar? Shipping reform was on the agenda 15 years ago

SHIPPING reform was on the agenda 15 years ago in May 1996, according to Robert Hartley, a guest writer to our predecessor – the Daily Commercial News.

Willingness to change key for progression

The alignment of interests between seafarers’ trade unions and shipowners is a key factor if innovation on board ship is to succeed, writes NIKO WIJNOLST*

Shipping’s choice: cut overheads or risk going under

As the outlook worsens in all sectors and China takes a stranglehold on the market, only the strong will survive, writes PAUL SLATER