Traders appear to have overestimated consumer demand in the Mediterranean during the Christmas holiday season, resulting in artificially high cargo growth in 3Q 13, but an early surge in traffic from shippers trying to beat the Chinese New Year appears to have rescued carriers.
Danaos Corporation, a leading international owner of containerships, reported unaudited results for the quarter and full year ended December 31, 2013.
Highlights for the Fourth Quarter and Full Year Ended December 31, 2013:
Operating revenues of $147.0 million for
A total of 52 VLCCs were ordered in shipyards last year, the highest number since 2010, a trend which has "spilled over" into 2014, with already 6 new VLCC orders placed during the month of January. According to the latest weekly report from London-based shipbroker Gibson, "about half of this investment in VLCCs is coming from the Asian shipowners to
In its January World Economic Outlook Update, the IMF noted that global economic growth is expected to improve in 2014-15, “largely on account of recovery in the advanced economies”. Performance in the developed world at last seems to be gaining some traction, and much attention is on economic growth in the traditional key Atlantic economies.
The Maritime Labour Convention 2006 (MLC) has been in force internationally since August 2013 and, in that time, it has become clear that it has received widespread ratification, that enforcement is a reality, and that ships run the risk of detention if they are not compliant. However, there has also been a good deal of confusion over the question of "who is the 'shipowner'?" under the
The surge of US oil production is rapidly shaking up the global crude oil market, with the world's leader of oil demand gradually managing to cover its own needs, without the need of imports. This shift is having a profound impact on crude oil tanker demand, changing the landscape as we know it. In a recent report, Poten & Partners noted that "over the past few years US domestic
Cargo growth from Asia to West Africa is still falling short of expectations, forcing ocean carriers to explore new ways of servicing trade requirements.
Cargo shipped from Asia to Sub-Saharan West Africa (between
The Athena was a dispute about the meaning of the familiar NYPE off-hire clause (clause 15). The Commercial Court decision gave rise to a lot of controversy. It went against conventional principles for determining whether a vessel is off-hire. The talking point of the decision was the meaning given to the words “time thereby lost”, allowing Owners to defeat an off-hire claim on
Ship owners voiced their dismay at the recent tax law, adopted late in December of 2013, under which the tax tonnage they're liable to pay will be tripled for the next three years, as a result of the country's economic problems. In his annual speech, delivered on the occasion of the General Meeting, the President of the Union of Greek Shipowners (UGS), Mr. Theodoros Veniamis said that
The dry bulk market has kept its uninspiring mood throughout yet another week, with the Baltic Dry Index (BDI) hovering slightly above the 1,000-point mark, where it stood for most of 2013, erasing in effect the fourth quarter rise of the previous year. Yesterday, the BDI ended slightly higher at 1,092 points, up by six points, the first upward session in days. The slight uptick was
Liner shipping is becoming less and less reliable as operators ignore service standards in the rush to cut costs. The bad news for shippers is that the situation is only going to get worse, according to Drewry’s newly published Carrier Performance Insight report. Containership reliability worsened in every quarter of 2013, with the fourth-quarter decline taking the on-time average
In an already hectic legislative framework regarding the operation of a shipping company, new court decisions as of late, have seemingly altered the way of doing business, when it comes to buying and selling vessels. According to the latest weekly report from shipbroker Intermodal, two recently decided cases, "The Union Power" and "The Griffon", should become aware to
Ocean carriers successfully used the surge of cargo from China to Northern Europe ahead of the Chinese New Year to improve spot freight rates, but it was probably no more than a short-term seasonal bonus.
Ocean carriers enjoyed encouraging results in the tradelane
Ship owners have very short memories, there can be no doubt about that. For evidence, we need only look at recent ordering activity that has seen a huge boost to the orderbook, diversification into new trades and the entrance of hot money into an industry considered a toxic investment only a few years ago. So we can conclude that investors have short memories too and
Newbuilding orders have been on a high since the start of the New Year and with the Chinese New Year celebrations now upon us, many ship owners moved forward with plans to contract new orders in Chinese yards. As a result, the total ordering activity was up by 74% over the same week of last year, according to figures compiled by shipbroker Golden Destiny,
Caresse Navigation Ltd v. Office National de L’Electricite and others (Channel Ranger)  EWHC 3081 (Comm). In this case, the bill of lading incorporated the “law and arbitration clause” (our emphasis) of a charterparty identified in the bill of lading. The dispute resolution clause in that charterparty, however, provided for English law and court jurisdiction, rather than arbitration.
As of 1 January, 2014, the European Maritime Safety Agency (EMSA) is publishing the following Paris MOU company performance data on the Thetis database:
- the list of companies whose performance has been very low for a continuous period of 36 months
- the list of companies whose performance has been low or very low for a continuous period of 36 months
Fifteen ships 13 of which are carrying new vehicles and two the used ones are expected to arrive in
Despite the fact that the New Year celebrations in China has slowed down the freight markets, not to mention that Chinese ship owners are absent from the market, the ship purchasing activity over the past few days, can only be described as byuoant. It's a rather remarkable feat, given that the dry bulk market is on steady path of declines since the start of the year
Whilst the number of vessels idled is increasing, far fewer have been taken out of service compared to a year ago, confirming ocean carriers’ preference for cancelling sailings as and when required, rather than withdrawing whole services – particularly when the ships involved are over 8,000 teu. According to Drewry’s latest data, 175 vessels with a combined capacity of