Shipping sector likely to stay volatile this year: report
demand and infrastructure spending hold the key and that prospects for global growth look more positive in 2010. The supply side continues to be dominated by new vessel deliveries and the ability to absorb new capacity. After a poor 2009, the outlook is more upbeat for tankers.
“The impact of the cold winter and declining oil stocks has stimulated the market. After falling in 2009, global oil demand is expected to increase in 2010. Containers suffered significantly as a result, leading to a sharp decline in demand and overcapacity. Better conditions are anticipated in 2010 tempered by continued new deliveries,” said the report.
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Pakistan: ‘Ship breaking industry in a tight spot’
in the first eight months of the current fiscal year July-February 2009-10, some 61 small and medium size ships (including cargo ships and oil transporters) anchored at the Gadani shipyard. The industry produced 462,900 tonnes of scrap during the said period. The prices of old vessel have gone up to $420-430 per tonne as compared to $220-230 in 2008, Dewan Rizwan Farooqui, chairman Pakistan Ship Breakers Association said. “Ship breakers are in a tight spot to place orders for more old ships as the prices are climbing up, and raising concerns regarding imposition of VAT is also disturbing activity at beach”, he said.
Ship breakers are paying tax in a special tax procedure suggested by the government and earning almost Rs 16 billion per annum in revenue for the country as compared to Rs 4 billion before this special tax procedure till 2007, he said adding, if this VAT is imposed on the steel producing industry, ‘we would not be able to run our business smoothly’.
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Green, Smart Ships to Make Debut in 2015
Taking a step forward from the country’s already leading status, this project aims to take the initiative in the global ship industry by bracing for future demand and exploring new markets, according to the ministry.
Technology preoccupancy is especially important in “green” vessels, as low-carbon growth is emerging as an important issue worldwide, it added.
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AFM team being readied for Somalia operation
EU Council sources were more specific, however, saying Malta will be sending 12 highly-trained soldiers to be stationed on a Dutch warship.
“The Maltese soldiers will be engaged in patrolling the Somali coast together with their counterparts from other member states and to intervene whenever necessary,” the sources said.
The platoon will join the almost 1,500 troops from various member states already present in the area for the mission.
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Shipping IPO ’s Start At The Bottom - But At Least They Start
Baltic sold for $14 a share after an offer range of $14 to $16 bringing in a reported $228.2 million, this is in addition to the $75 million being injected by Genco Shipping and Trading. The Greek company launch fetched a reported $256.5 million after underwriters said 13.5 million shares went for the lower price on a predicted $19 to $21 range. At the close Baltic shares were at $13.91 after a high of $14.15.
Meanwhile Genco, whose boss Peter Georgiopoulos is believed to be the driving force behind the Baltic launch, have announced that it has reached an agreement to extend the time charter for the Genco Hunter, a 2007-built Supramax vessel, with Pacific Basin Chartering Ltd. for approximately 11.0 to 13.5 months at a rate of $21,750 per day, less a 5% third-party brokerage commission.
The time charter is expected to commence following the expiration of the vessel’s current time charter on or about April 1, 2010 and is subject to the completion of definitive documentation. Genco now has approximately 61% of its fleet’s estimated available days secured on contracts for the remainder of 2010.
Source : Handy Shipping Guide
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Feature: Testing shipping’s feel for the human factor
The International Labour Organization’s Maritime Labour Convention 2006 (MLC 2006) has been described as the fourth pillar of the maritime regulatory regime, alongside the SOLAS, MARPOL and STCW conventions.
It certainly has a similar pedigree, drawing together and updating 70 earlier conventions and recommendations into a single enforceable instrument which grants a range of employment rights to seafarers.
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India: Port traffic up 5.5% this year
Data compiled by the Indian Ports Association shows traffic volumes at India’s 12 major ports grew on a yearly basis to 509 million tonne in April to February 2010, from 482 million tonne in April 2008 to February 2009.
The data chiefly includes movements of products like iron ore, petroleum, oil and lubricants, fertilisers and coal, besides container cargo.
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Shipping industry needs to scrap 30% of orders
Presenting his analysis during the sixth annual Marine Money Gulf Ship Finance Conference in Dubai, Urstad said that although there is a lot of uncertainty in the numbers, they provide an approximate analysis based on the performance in 2009.
The demand for dry bulk has been growing at 5.3 per cent annually and the demand for dry bulk ships is much higher at present compared to mid-2008.
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Korea’s Shipbuilding Industry See Signs of Recovery
It also reached an agreement with multinational petroleum company Royal Dutch Shell to make a liquefied natural gas floating production storage offloading unit or a LNG-FPSO unit capable of producing liquified natural gas at sea as well as storing or transporting it to LNG carriers after liquefaction.
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Asia-Europe Container Cargo Soars
January traffic was 2 percent up on December and higher than any month in 2009, the Brussels-based carrier organization said.
That rate of growth was eclipsed by a 35 percent surge in eastbound traffic from Europe to Asia to just short of 419,000 TEUs.
The best performing trade was from the Mediterranean and Black Sea to Asia which recorded a 98 percent increase from January 2009.
The sluggish trans-Atlantic routes also picked up in January with eastbound shipments from North America to Europe rising almost 7 percent to 207,700 TEUs, while westbound traffic grew 4.5 percent to 207,800 TEUs to create an almost perfectly balanced two-way trade.
The Europe-India subcontinent-Middle East trades registered strong year-on-year growth, with eastbound shipments from Europe increasing 20.5 percent to 182,400 TEUs while westbound traffic rose 13 percent to 131,300 TEUs.
But eastbound traffic was down 20 percent from December and westbound shipments were 4 percent lower. The only trade bucking the trend was the northbound leg from Australasia to Europe which saw January volume shrink 21.4 percent year-on-year to 11,700 TEUs. Southbound traffic out of Europe rose 12.2 percent to 31,700 TEUs.
Source : Journal of Commerce
