Gridlocked negotiations between APM Terminals and dockworkers in Gothenburg, a new full-year deficit for J. Lauritzen, and a change in strategy at Damco are among this week's top stories on ShippingWatch.
Two thirds of the bondholders need to vote in favor of repayment of their loans being postponed, otherwise J. Lauritzen's entire, new refinancing package, including backing from the banks and owner Lauritzen Fonden, will collapse. ShippingWatch has interviewed CEO Mads Zacho about the prospects.
Hard-pressed dry bulk carrier J. Lauritzen was hit with yet another deficit in 2016, a result management deems unsatisfactory. However, the carrier's CEO Mads Zacho has been able to settle the main terms of the refinancing deal with banks that was crucial for the company's future.
Icelandic container carrier Eimskip booked record-breaking earnings in 2016. Management expects that the positive trends will continue in 2017 where the acquisition of two logistics companies is expected to boost business. The carrier is still looking for more acquisitions.
One of the leading observers and analysts of the international container industry, founder of SeaIntelligence Consulting, Lars Jensen, presents a qualified projection in his new book about what the sector will look like in 2025. ShippingWatch offers an excerpt from the book here.
There will be significant challenges in the tanker market up until 2019, and it will be a matter of survival, says Stena Bulk CEO Erik Hånell in an interview with ShippingWatch. Digitalization is one of the carrier's means to handle the downturn.
Offen Group and a German insurance company inject fresh capital into struggling Marenave Schiffahrts. The shipowner thus buys more time in the efforts to dodge a looming insolvency. Fleet divestments could still be necessary.
Last year's contracts between carriers and shippers were signed at historically low prices when comparing contract rates and spot rates. There could therefore be major rate increases in store when new contracts are negotiated in May.
A change of attitude has emerged in the container sector where carriers have realized that there is no use in offering rock-bottom prices, says Evergreen's chairman. He anticipates higher rates in 2017.
German owners continue to scrap vessels on a large scale after the record year 2016, a year which, according to Clarksons, will be surpassed this year. Yet the fleet is still expected to grow by three percent.
The EU Commission will decide on Maersk Line's acquisition of Hamburg Süd in late March, reports Ritzau Finans in reference to Bloomberg News. The transaction will still need to be cleared by additional regulators.
Earnings at the Arabian LNG carrier decreased by a little under QAR 30 million in 2016. Despite the downturn in the oil and gas market and overcapacity in the shipping markets, the carrier is pleased with the result.
Several container carriers have received penalties in China for failing to provide correct information about their freight rates to the Chinese ministry of transports. The carriers fined include CMA CGM and Hamburg Süd. But the size of the fine is fairly modest.
The maritime sphere in Europe is far from in agreement when it comes to limiting CO2 emissions from shipping. While the shipowners are highly critical of the European Parliament's plan to include CO2 in a cap trading system, the ports praise the proposal. "Most unfortunate," say the shipowners.
The final months of 2016 brought improvements on the routes from Asia to the east coast of South America. But there is still a long way to go in terms of the activity noted on the routes in the past, writes analyst firm Drewry, warning against excessive optimism.
Container carriers have formed several collaborations for digital solutions within the past few weeks alone – and many more similar arrangements will follow in the first half of 2017 in the search for the best digitalization of container carrier services, says analyst Lars Jensen of Seaintelligence Consulting.
Trendsetting companies in sectors such as tanker presented financial reports, APM Terminals opened up about the future partnership with Maersk Line, and we got to know a shipping company which usually subscribes to a great degree of discretion. This week's top picks on ShippingWatch.
Maersk Supply Service has presented its report to the French authorities about the two supply vessels which sank off the coast of France on Dec. 22 2016. No oil spills were observed in relation to the wreck, states the report.
A series of renowned shipping names, including Blystad Group, are behind the new company Maritime Asset Partners, which will offer alternative financing to shipping companies. USD 150 million are ready to be invested. "We can raise more money according to our needs," head of the company Nick Roos tells ShippingWatch.
Hard-strained Singapore-based Rickmers Maritime took a big hit on the bottom line in 2016, and in its annual report the company once again calls on its creditors for help in solving the massive financial difficulties enveloping the company.
The top line dropped by almost one fifth for DNV GL's maritime business in 2016. And there are no signs that the activity level will significantly change anytime soon, CFO Thomas Vogth-Eriksen tells ShippingWatch.
Odfjell achieved a significantly better net result in 2016, due to factors such as group efficiencies, according to the carrier's annual report. Part of the development is attributed to the sale of the Oman terminal. CEO Kristian Mørch launches a new strategy.
The International Chamber of Shipping, ICS, calls on EU member states to vote against the European Parliament's adoption of a quota scheme for shipping Wednesday. ICS says that the proposal ignores the work already done by IMO in the area.
It will largely be the carriers' ability to idle vessels, postpone deliveries, and maintain the number of scrapped vessels, which will decide the economy of the container industry in 2017, according to Alphaliner, which questions Maersk Line's optimism for the market.
After a somewhat solid beginning of the year, dry bulk carriers now face a more uncertain period in the short term, says Maritime Strategies International. Earnings will largely depend on factors beyond the carriers' control.
The European Parliament has voted in favor of including the shipping sector in the EU emission trading scheme, ETS. "A poor solution," says shipowners' association. The EU Commission and Council will now have to approve the decision before it can be finalized.
Diana Shipping saw its losses grow in 2016 as the carrier ventured an investment in a sister company in the container segment. The carrier's need to raise fresh equity is less acute than previously, notes JP Morgan.
The first full-year results of the product tanker segment spell good news for the industry going forward, Deutsche Bank shipping analyst Amit Mehrotra tells ShippingWatch. He sees daily MR-rates improving over the next two years.
The market for heavy lift transport and multipurpose has been ailing for several years now, and 2017 looks set to be another difficult year for the industry, which will have to look to new areas in order to fill its vessels. Douglas-Westwood points to two segments with potential in a new analysis.
Maersk Line and MSC's South Korean collaboration partner Hyundai Merchant Marine will get a majority of the funds made available by the South Korean government to support the country's shipping and shipyard sector. The funds will be used to order new vessels, among other things.
Unmanned vessels from Rolls-Royce will be ready for deployment by as early as 2020, report British media. Smaller tugboats and ferries will likely be the first to start operating without crews on board.
The UN International Maritime Organization has adopted a concrete strategy for the organization's work for the first time. The strategy includes seven guiding points and three principles which will be thought into all aspects of the work, Jesper Loldrup, Head of the Office of the Secretary-General's Policy and Planning Unit, tells ShippingWatch.
It was far from a deal between equal partners when the 2M alliance with Maersk Line and MSC entered a cooperation agreement with Hyundai Merchant Marine. "We picked up the carrier from the bus stop where the alliance had left it," says Maersk Line CEO Søren Skou today.
The 2M alliance has upgraded its East-West network, a move characterized by the big changes that have taken place in the sector, according to MSC, including the recent slot agreement with Hamburg Süd. Find the complete, new network below.
Maersk Group made waves this week when the Danish conglomerate presented a big deficit for 2016 and Chairman Michael Pram Rasmussen announced that he was stepping down. DFDS and DSV did better and delivered major profits.
It is not the job of shipowners to secure that scrapyards in Asia have justifiable conditions, says the German shipowners' association after the country's carriers were criticized for their scrapping practice. CEO critcizes IMO countries for not ratifying the Hong Kong Convention.
"The takeover of US-based UTi Worldwide in early 2016 confirms DSV's plans to partake in consolidation and perform acquisitions," says DSV chief exec Jens Bjørn Andersen to ShippingWatch. More acquisitions are thus in store.
Yet another large takeover in the European project cargo sector is shifting the power balance in the sector. Germany's Zeaborn is acquiring Rickmers-Linie and NPC Projects, informs the Bremen-based carrier.
CEO Christian M. Ingerslev of Maersk Tankers does not eye improvements in the product tanker market until the second half of 2018. The timing will coincide, however, with settling a solution for the carrier's independent future outside of Maersk. One option is going public.
Maersk Line is delaying the delivery of nine container vessels, all of which are 14,000 teu. The vessels should have been delivered during this year, but they will now be delivered from the second quarter of 2017 and up through 2018.
The low investment level in the oil sector continues to strain offshore carrier Bourbon. Declining revenue and fewer jobs in 2016 have made the carrier idle another 27 vessels. The company now has a total 104 vessels stacked.
Savings related to the merger of Maersk Line and Hamburg Sud's fleets will be key to reaping the rewards of the acquisition of the German carrier, says Maersk Line CEO Søren Skou. But there will be no job guarantee to the employees, he stresses.
Yang Ming is now, for the first time, drawing on the state-backed credit package launched in Taiwan last year. The container carrier plans to raise USD 54 million by selling new shares to the state and other buyers.
Digitalization emerges as the theme when outlining the reasons behind the nomination of Jim Hagemann Snabe to chair Maersk Group and replace Michael Pram Rasmussen who is stepping down. Here is a portrait of Snabe and a focus on some of the digital challenges.
Maersk Line, the world's largest container carrier and the Maersk Group's core business, emerged from 2016 with a resounding loss, and the group as a whole lost nearly USD 2 billion, mainly due to the offshore segment. Here is an overview of Wednesday's annual report from Maersk.
More than a year of price war in the global container industry has come to an end, says Maersk Group CEO and CEO of Maersk Line, Søren Skou. The Danish container carrier has utilized the price war to win major market shares from competitors, he adds.
Norwegian gas carrier Höegh LNG has now become a partner in a huge gas project in Pakistan, where the company will also deliver and operate one of the FRSU plants. The consortium also includes energy companies such as ExxonMobil and Total.
State-owned Korea Development Bank has put ten Hanjin vessels up for sale at auction, report local media. Anonymous sources tell Korea Herald that the vessels include two container ships and eight bulkers.
There are still red figures on the bottom line at Dryships, which booked a deficit of USD 200 million in 2016. However fresh capital from owner George Economou means that the carrier is now preparing to expand the fleet.
The Maersk Group will need to find a new chairman as current chair Michael Pram Rasmussen has announced that he will not run for re-election. The board of directors nominates Jim Hagemann Snabe as new chairman.
Maersk Line suffered a full-year deficit of USD 376 million against a profit of USD 1.3 billion the year before, according to the Maersk Group annual report. But the container carrier expects a billion-dollar improvement for 2017.
Ardmore Shipping saw its full-year result plunge, and the product tanker carrier suffered a deficit in the final quarter of 2016. The carrier's CEO attributes the decline to high inventory levels and a large influx of vessels, though he is optimistic about developments going forward.
Despite political uncertainties in Europe, the financials are actually improving, says DFDS CEO Niels Smedegaard in an interview with ShippingWatch following publication of the carrier's 2016 annual report. He believes better days are coming for the eurozone.
South Korea's largest deep sea carrier, Hyundai Merchant Marine, has initiated talks concerning investments in container terminals in Southeast Asia. "We are targeting to make an operating profit in the third quarter of next year," says CEO Yoo Chang-keun.
2016 saw both lower revenue and a lower result at Norwegian tanker carrier Nordic American Tankers, which recently criticized Frontline's takeover attempt of competitor DHT. However the trend is positive right now, says the carrier.
London-based Marine Capital expects to launch a new shipping investment entity in 2017 with the backing of institutional investors, CEO Tony Foster tells ShippingWatch. Total investment may exceed half a billion dollars.
72-year-old John Fredriksen, a major player in the Norwegian shipping industry, will wait at least three to five years before entering retirement. In particular, the situation in the crisis-struck Seadrill is taking a lot of his attention.
The Russian competition authorities have fined Maersk Line USD 12 million for collaborating with its competitors to fix prices on the Russian market. The carrier has confirmed the fine which has been appealed.
Taiwanese carrier Wan Hai has knocked Maersk out of first place in the ranking of the most reliable global carriers. Maersk Line has dropped down to number five on SeaIntel's annual list. However, this is not because the Danish carrier is getting worse at keeping to its schedule.
It will soon not be worth it to store oil on tanker vessels while waiting for higher oil prices. The ships, which have previously been used as floating storages, could now reenter the market and worsen the oversupply in 2017.