NWE, Persian Gulf ULSD vessels change course on less attractive US arbitrage
Vessels heading to the US and Caribbean with ultra low sulfur diesel from the Baltics and the Persian Gulf have reversed course after the arbitrage, which some sources had said was challenging in the first place, faltered.
The Amalia, a Primorsk-loaded Long Range 1 tanker initially headed to the Caribbean, double-backed on itself to discharge into Rotterdam on Sunday. Sources had been doubtful about the economics of the arbitrage from the Baltic and Europe more generally, saying it was dependent on vessels already on water in order to meet the prompt nature of the demand.
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Tanker Shipping is the Big Victim From OPEC’s Oil Cuts
OPEC’s strategy to end a worldwide crude glut is causing havoc for a vital link in the oil industry’s supply chain: the fleet of supertankers that shuttle fuel between continents.
The ships’ average earnings plunged last year by more than half to levels not seen since 2009 and far below what shipping analysts had been predicting. Now, the producer group’s extension of output cuts throughout 2018 is adding to the downturn. Oil supertankers, known in the industry as very large crude carriers, or VLCCs, can measure a quarter of a mile in length and haul about 2 million barrels of crude.
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Adani Australia Port Must Refinance Soon Or Face Rating Cut
An Australian deep water port linked to one of the world’s biggest planned coal mines should lock in refinancing within six months of a loan maturing in November to safeguard credit ratings on its debt.
Adani Abbot Point Terminal Pty in Australia’s Queensland state, controlled by Indian billionaire Gautam Adani, has to refinance about A$326 million ($256 million) of the loan due in November. The credit assessor currently has a BBB- credit score and stable outlook on the port’s rated debt securities. The loan is coming due at a sensitive moment for Adani Enterprises Ltd’s Australian operations. The company intends to use the port to ship coal from its planned Carmichael mine in Queensland.
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Top Iron Ore Port Ships Half Billion Tons as Bears Call Time
Iron ore cargoes from Australia’s Port Hedland, the world’s biggest bulk export terminal, jumped to an all-time high of almost half a billion metric tons last year, offering fresh evidence of burgeoning global supply at a time when bearish forecasts for the commodity are stacking up.
Exports from the port, which handles material for BHP Billiton Ltd., Fortescue Metals Group Ltd. and Roy Hill Holdings Pty, climbed 5 percent to 46.1 million tons in December to set a monthly record, according to Pilbara Ports Authority figures on Tuesday.
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Public, private sectors join forces for self-navigating ships
The transport ministry and major shipping companies aim to put self-navigating vessels into practical use by 2025, it has been learned. They seek to enhance maritime safety and deal with a shortage of workers through self-navigating vessels that receive operational guidance from land via telecommunications.
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Wan Hai Lines to launch new China-India CI6 service
Taiwanese container shipping line, Wan Hai Lines, is to launch a new China-India Service VI (CI6 service) on January 24 in a move to expand its network by providing direct service from East China to West India. CI6 will be jointly operated with Cosco Shipping Line Co by using five 4,200 TEU vessels.
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IMO 2020, a shipping regulation that may reshape global coal trade
It is not uncommon for people in various commodity sectors to believe that their markets exist in some kind of a happy bubble, where only the obvious supply and demand forces or targeted regulations can make or ruin their day. This often applies to the world of coal too. Shipping is a perfect example of a factor which is sometimes overlooked. This is evident from industry events these days, where shipping is often either way down the agenda or off it completely. The issue here is not ignorance, of course. When it comes to seaborne coal cargoes, any trader worth his salt would still look at the freight element as it affects the CIF price and delivery time.
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More Mega-Ships Are a Big Problem for Cargo Carriers
Container shipping companies are bracing for a challenging year — they will have more space available for carrying goods than the amount of cargo that’s out there. Corrine Png, chief executive officer of research firm Crucial Perspective, estimates freight-carrying capacity on container ships will rise 5.9 percent this year, outstripping demand growth for the first time since 2015.
That’s largely because more than 40 huge container vessels ordered at least two years ago are ready to be delivered for service, creating an abundance of ship stowage. With some of the space expected to be left empty, container lines could be forced to charge lower fees for shipping goods, even as they try to overcome years of accumulated losses in an industry downturn that has seen at least one company collapse.
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South Korean Shipbuilders’ New Orders Increase 198pc in 2017
The amount of new orders received by South Korean shipyards stood at 6.45 compensated gross tonnage (CGT) last year, up 198.6 percent from a year ago. South Korea made the biggest growth against China and Japan.
The country took second place in terms of amount of order backlog after China, falling short of 274 CGT. South Korea also came in second in terms of orderbook value by a head, remaining at the same levels thanks to its high value added vessel contracts. According to British shipbuilding and marine industry tracker Clarkson Research Services on January 9, the amount of global-wide orders came to 23.22 million CGT last year. The figure surged 78.3 percent from 13.02 million CGT a year earlier. The shipbuilding market showed a recovery trend for the first time in a year.