Drewry Maritime Research’s latest Ship Operating Costs Annual Review and Forecast report highlights that 2013 was another difficult year most ship operators and with weak freight earnings there was pressure to keep any increase in ship operating costs to a minimum. Judging by the findings of the latest Drewry report ship operators were able to keep increases in
Following record levels of demolition in 2012, with 58.1m dwt scrapped, breakers were once again busy in 2013 and 44.6m dwt was recycled. Whilst scrap volumes declined y-o-y, this was still the second highest level of annual demolition ever. This month’s Shipbuilding Focus reviews recycling activity in 2013.
A Really Scrappy Year:
Should BP's energy outlook heading forward towards 2035 is bound to have a serious impact to the crude tanker market, if all the predictions are realized. The rise of Atlantic basin oil production, coupled with a shift of oil demand from the West to the East, will impact the crude tanker market in a positive fashion, effectively altering trade route patterns. On the other
Exits from the transatlantic and Asia-Black Sea trades demonstrate how Hanjin is prioritising financial repair over global coverage. Cash-strapped Hanjin Shipping has recently announced to its customers that it will be leaving two unprofitable trade lanes. The South Korean carrier will cease taking slots on the Asia‐Black Sea Express (ABX) service of China Shipping, Yang
New report reveals optimism in the sector but caution over rising costs and oil prices. Amid a positive outlook for the industry in 2014, senior oil and gas professionals have forecast tighter monitoring of capital expenditure (capex) this year, according to new research published today by DNV GL, the leading technical advisor to the oil and gas industry. While nine in 10 (88%)
Tanker owners have been investing heavily in the VLCC segment since the start of the New Year. As the latest weekly report from Poten & Partners pointed out, "capital from private equity firms has been markedly reshaping financing options for shipowners. Recently, much has been said about the purchase of new build Medium Range (MR) tankers for service in
Tankers and bulkers; love them or hate them, you can't really escape them in shipping. They are the bedrock of independent shipowners’ business. Of course there are plenty of specialist vessels, but it's the two big bulk fleets which inevitably catch the attention of speculative investors. And investment discussions always end up with the same question – should we order a bulker
A series of frauds, emanating from Turkish ports involving the shipment of bogus cargo and perpetrated against ship owners, have been uncovered by the security arm of the UK P&I Club, Signum Services, as reported in a prevention advice note as follows:
These frauds always emanate from Turkey and involve criminals
According to the latest monthly report from OPEC, after several months of bearish momentum, spot freight rates recovered in December across all tanker sectors. December was the only month exhibiting positive performance on all reported routes and in various tanker segments. Dirty tanker spot freight rates registered high gains, particularly for Suezmax
Ocean carriers enjoyed a better-than-usual peak season from Asia to ECSA between July and October 2013, much of which is attributable to preparations for the FIFA World Cup in the middle of this year.
2013’s peak season from Asia to the East Coast of South America
In December 2013 the Department of Merchant Shipping (DMS) announced the following new policy regarding Security Awareness Training or Security training for Seafarers with Designated Security Duties under the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, STCW 78, as amended (the Convention). In
It's been a rough start to the New Year for the dry bulk market, which was supposed to be on the verge of rallying to new heights this year, on the back of improving fundamentals. The market's benchmark, the Baltic Dry Index (BDI) had been on a steady path of declines since the beginning of the year, effectively erasing the rally of the last few months of 2013, which brought
Dynamar has issued the latest, 11th edition of its annual Top 25 Container Liner Operators publication. It offers an exclusive insight into world’s largest container shipping companies, their history, nature, characters, developments, strategies, relationships and performances. The publication opens with a summary of the Top 25 carriers looking at their operated vessel
In the quest to clean up the air people breathe around ports, the concept of “cold ironing”, where the ship shuts down its auxiliary power plant the minute it gets alongside, plugging in to shore power sources, has achieved a great deal of traction. In the ports of the North American Pacific Coast, the pressure to employ shore power has been at its greatest, along with other measures
Scrapping of older vessels is still the best bet that ship owners can make, in order to improve their newer vessels' fortunes, amid an oversupply of tonnage, which has plagued most shipping markets over the past couple of years. As such, it can only be deemed a good thing that owners scrapped a total of 1,119 ships over the course of 2013, making it an exceptional
Drewry Maritime’s 4Q13 Container Forecaster report highlights that freight rates are now largely determined by carrier behaviour. Furthermore, industry profitability has little to do with carrying more boxes since freight rates remain historically weak. Profitability is driven by cost cutting which is also bolstered by the continued sale of non-core assets. Despite ten GRI attempts
Piracy at sea has reached its lowest levels in six years, with 264 attacks recorded worldwide in 2013, a 40% drop since Somali piracy peaked in 2011, the International Chamber of Commerce (ICC) International Maritime Bureau (IMB) revealed today. 15 incidents were reported off Somalia in 2013, down from 75 in 2012, and 237 in 2011. IMB’s annual global piracy report shows
It appears that 2014 has picked right where 2013 left, in terms of newbuilding activity with ship owners still very much active in the market. In its latest weekly report, the first of the new year, shipbroker Golden Destiny reported orders for 139 vessels, with a total deadweight of 8,724,092 tons. Out of the 57 orders for which the amount of money spent was disclosed,
Ocean carriers enjoyed better than expected seasonal cargo growth in both directions of the Asia/East Coast of North America tradelane during October, and remained disciplined with vessel capacity, but it was not enough to stop their fight over market share.
On 19 December 2013 the Singapore High Court handed down an important judgment in The Titan Unity  SGHCR 28. The judgment is significant as it reaffirms the commitment and support of the Singapore courts for arbitral proceedings. The case concerned an application to stay Singapore court proceedings, pursuant to the International Arbitration Act (Cap 143A)