Monjasa suffered massive deficit, while broker Lightship lost a dramatic court case to a former partner. And Dong found a buyer for the company's oil and gas business. Here are this week's top stories on ShippingWatch.
A 38-year-old crew member from the Philippines has been killed in an accident on board Norden vessel Nord Quebec when the ship berthed at Troi-Riviéres in Canada. The Canadian authorities are investigating the accident.
Some of the world's biggest customers in dry bulk and tanker, including Trafigura and Shell, criticize carriers for slacking off on the quality of crews on board vessels, according to a new report. This fact could impact safety.
Shipbroker Lightship Chartering has been sentenced to pay a little over DKK 500,000 to a former partner who now works at Maersk Broker. Lightship has also been sentenced for an email sent by owner Morten Have to the management of Maersk Broker.
The weak offshore market continues to squeeze the Dubai-based offshore carrier. Revenue dove and the result plunged into a deficit in the first quarter of the year, and the carrier's markets also look challenging in the future, says the CEO.
The consolidation wave in product tanker is now reality. Robert Bugbee's Scorpio Tankers will merge with Navig8 and issue new shares for USD 200 million. The new behemoth will have a fleet of 105 vessels and will compete directly with carriers such as Torm, Ardmore, and Hafnia Tankers.
Navigare Capital Partners, a new investment company targeting the shipping industry, has made its first investment in two product tankers. "We will invest in different segments," CEO Henrik Ramskov tells ShippingWatch.
Shipping group Weco A/S saw revenue and earnings decrease from 2015 to 2016, and 2017 will also be a tough year. Shipowner Johan Wedell-Wedellsborg has scaled down several of his shipping activities during the same period.
2017 showed the first signs of improvement in the struggling container market, according to a comparison of first quarter results from the major carriers carried out by SeaIntel. It also shows that Maersk Line has fallen behind several of its competitors on the earnings front.
A vessel from carrier Ultrabulk loaded with phosphate has been detained in Panama. Ultrabulk is breaching international laws, says NGO. The cargo is legal, says Ultrabulk CEO Per Lange, who is backed by association Danish Shipping. The vessel has been released Monday.
20 new vessels are on the way to smaller South Korean carriers, with the majority being constructed in China. This is a shift from previous years, where South Korean yards dominated shipbuilding for South Korean carriers.
There are no real values of note in the German shipping sector right now, according to Lloyd Fonds. The company is scaling down its investments in the segment and would prefer to be on the sideline of what CEO Torsten Teichert describes as the endgame in Hamburg.
Container carrier CMA CGM increased its net earnings in the first quarter 2017, which marked a big improvement compared to the same period last year. The acquisition of APL contributes positively to the business for the first time.
MAN Diesel & Turbo will pay back USD 8 million to Norwegian carrier Skaugen in the protracted fraud case related to diesel engines which used more fuel than stated in contracys. "MAN Diesel & Turbo SE has substantial outstanding claims against Skaugen," says MAN in a comment to ShippingWatch.
Following a loss of at least EUR 5 billion and perhaps upwards of EUR 10 billion in 2016, the container carriers are now trying to save themselves by joining forces. This is pure survival but no recipe for profits, says Olaf Merk, shipping and port expert at OECD.
There will be no need to inject more money from Lauritzen Fonden into J. Lauritzen, agree the managing director of owner Lauritzen Fonden and the carrier's CEO in comments to ShippingWatch. J. Lauritzen has received a little over USD 194 million from the owner in 2016 and 2017.
The EU Commission is informally contacting stakeholders to determine if the prices between Europe and Asia have increased after April 1 this year as a consequence of the fact there are now only three major container alliances left operating.
The downturn in the offshore market means that Maersk Supply Service is attempting to delay the delivery of the nine vessels ordered by the carrier. But several ships will hit the water this year, says CEO Steen S. Karstensen to ShippingWatch.
The market for the transport of LPG will be held down by overcapacity across the majority of segments over the next two years, writes Drewry. The analyst firm only sees opportunities for better rates for the small gas vessels, where fleet growth will be minimal.
There will be more mergers, acquisitions, and general consolidation in the product tanker market within the next 12-24 months, Hafnia Tankers and Jyske Bank tell ShippingWatch. Torm Executive Director Jacob Meldgaard is also open to the idea.
The tanker carrier anticipated higher earnings in the first quarter of the year. But a large number of newbuildings and a lack of fluctuations in the oil price resulted in a lower profit for Hafnia Tankers.
The deals between Hapag-Lloyd and UASC have been signed and the merger is thus finalized after a delay of almost two months. There are many indications, however, that the announcement of the deal will not take place until next Wednesday.
The RoRo carrier beat its own record in the first quarter, and the CEO expects continuing strong performance due to, in particular, positive developments in the Finnish market. The company is launching a new large-scale investment program.
Tanker carrier Torm is positive when it comes to a consolidation of the product tanker market. Bigger carriers will be more interesting to banks and investors, Executive Director Jacob Meldgaard tells ShippingWatch.
Cosco Shipping Group plans to launch a large financing fund for targeted investments in shipping. The fund will be split into a yuan fund and a dollar fund and will focus on, among other things, struggling companies.
The carrier is hunting for a replacement for the two dry cargo executives who recently left Lauritzen Bulkers. "The process is important, so whether it takes one or three months to find the right person is a secondary factor," says CEO Mads P. Zacho to ShippingWatch.
What at first looked like an ordinary oil trade in West Africa has developed into a court dispute in London, Dubai, and Lagos. ShippingWatch has reconstructed the events which involve Danish businessman Jesper Øhlenschlæger, tax shelter company Nordic Oil & Gas, bunker company Endofa, and tanker carrier d'Amico International Shipping.
J. Lauritzen delivered an improved operating result in the first quarter, though the carrier still suffered a deficit. "Despite market improvements in Q1, dry cargo markets continue to be challenging," says CEO Mads P. Zacho. The carrier maintains its expectations for the full year 2017.
The tone between the two tanker carriers with Norwegian roots, Frontline and DHT Holdings, has become increasingly irreconcilable and hostile – not least from Frontline's CEO, who now describes DHT's double CEO capacity as a waste of shareholder money.
A "temperature reading" of how far container companies have gone with their digital customer service does not bode well for customers and the general service level, concludes SeaIntel after carrying out a new test.
Bondholders have become an unforeseen powerhouse in the many restructurings of maritime companies. This is visible in the case of Rickmers Maritime and Rickmers Group which are currently fighting with bondholders.
Like its major competitor Maersk Line, German container carrier Hapag-Lloyd was slammed by higher bunker prices in the first quarter, where the carrier booked a loss of EUR 62.1 million. Expenses for ports and terminals towered up for the company, writes Clarksons Platou.
Maersk Line's deficit is symbolic of continued struggles throughout the container industry, analyst Lars Jensen tells ShippingWatch. He thinks that two things in particular are worrying about the numbers. CEO Søren Skou on the other hand stand firm on the forecast for the full-year 2017.
A massive orderbook packed with new crude oil tankers set for delivery in 2017 means that overcapacity will continue to strain the sector. The large vessel influx will be replaced next year by weak demand, and the scrapping of vessels is thus crucial to the prospects of a tanker market recovery, writes Drewry.
Lower volumes in chemical tanker pulled Team Tankers into the red in the first quarter. But the operating profit was a positive surprise, notes Fearnley in an update. The firm cites high coverage in the second quarter and reiterates 'buy' for the share.
Teekay CEO Kenneth Hvid has a plan for Teekay Corporation which entails taking the major Canadian group back to the spirit of its founder Torben Karlshøj. Hvid lays out his plan to ShippingWatch during his first interview as CEO.
DFDS grew in the first quarter 2017 on revenue as well as earnings compared to the same period 2016. "Combined with a continued positive outlook for growth in Europe, we are on track in 2017 to further improve on the all-time high results of last year," says CEO Smedegaard.
The Norwegian offshore carrier saw its deficit grow and operating income dwindle in the first quarter of the year. Havila Shipping completed a large-scale restructuring earlier this year which is expected to give the carrier leeway in a weak market in 2017 and 2018.
An improved profit of no less than USD 1 billion for 2017 may sound like a bold prediction from Maersk Line, but Danish and international analysts speaking to ShippingWatch all seem confident that CEO Søren Skou is on track to reaching his goal. The group's first quarter results will be released Thursday.
Bondholders are uncertain about the rescue plan proposed by German shipping company Rickmers Group aimed at securing continued operations. The plan includes Chairman Bertram C. Rickmers surrendering control of parent unit Rickmers Holding.
DHT Holdings performed above analyst expectations with the operating result in the first quarter this year. The carrier, which is subject to continuous acquisition offers from competitor Frontline, has also settled a new bank agreement.
In the wake of massive consolidation, pressure is mounting on medium-sized container carriers such as Singapore-based PIL. "But we are not for sale," the carrier's Executive Director Lisa Teo tells ShippingWatch, although she does acknowledge the challenges ahead.
Chinese plans for a brand new megacity spells good news for bulk carriers which transport iron ore, aluminum, and copper. In a new analysis, Wood Mackenzie projects a surge in demand for metals for construction.
If the government had done nothing to improve the conditions of the Norwegian International Ship Register, the developments would have been even worse, Norway's minister of business tells media sysla.no.
The EU has still not begun the inspections of the shipbreaking facilities seeking approval to scrap European vessels. However, the inspections are expected to be complete by the end of the year, the Commission tells ShippingWatch.
The Norwegian offshore carrier booked a somewhat higher revenue in the first quarter, but low rates and overcapacity weighed down operations as well as the bottom line. The company projects a tough North Sea spot market characterized by vessel oversupply in the years to come.
Customers have been saying it for a long time, and new figures document that the container carriers are far from able to comply with their service schedules. Maersk Line acknowledges to ShippingWatch that the industry including the carrier itself is not performing satisfactorily. "We have a service problem that needs to be solved."
DHT Holdings' board of directors rejects the Frontline bid announced on April 25. The board adds that it is about time that the parties move on. Instead, Frontline replies that the bid should be presented to the shareholders, according to a comment to ShippingWatch.
Analyst firm Clarksons believes that "unabated optimism" in the dry bulk market earlier in 2017 has been replaced by more uncertainty and falling dry cargo values. Nevertheless, the analyst firm does not see cause for concern.
The Danish government will issue Challenger aircraft to monitor the Indian Ocean and provide security for vessel traffic in the region, where piracy has sparked up again over the past few months. The aircraft will help to "hinder terror financing and organized crime," says Danish foreign affairs minister Anders Samuelsen.
Peter Frederiksen, who since 2012 has been part of the executive team at Hamburg Süd, will leave the German carrier when Maersk moves in. Now he plans to pursue an active board career, he tells ShippingWatch in an interview.
Things are now headed in the right direction in the product tanker market after a rough end to 2016. CEO of Italian tanker carrier d'Amico International Shipping has a positive outlook for the future in the wake of a first quarter profit, he tells ShippingWatch.
Norden off to a weak start in dry bulk in 2017, a record-large deficit for DSV, strong results from oil majors, and increased political focus on shipping by US and EU authorities were among this week's key stories on ShippingWatch.
Spot rates on the key container tradelane Asia-Europe took a big dive last week, according to a survey from Drewry. The firm expects the rates to keep sliding as there is by now more space available for shippers.
Two prominent senior executives from Maersk Line will join the management team of German container carrier Hamburg Süd. The carrier has also tapped a new CEO from its own ranks for when Ottmar Gast steps down. The changes are contingent on the finalization of the acquisiton.
The US maritime laws, which exempt international container carriers from regular competition regulations, are outdated, according to several US legislators who are prepared to present a new bill in less than a month.
After several years of lower expenses in the fight against piracy, costs have once again increased according to the latest report from Oceans Beyond Piracy. "Piracy still poses a significant threat to shipping," says the Danish Shipowners' Association. Read the entire report here.
Patrick Verhoeven is leaving the European Community Shipowners' Association (ECSA) after four years to instead take on a new leadership function at the International Association of Ports and Harbors (IAPH).
Despite a "surprisingly strong" dry bulk market, Norden's bulk business showed weak performance in this year's first quarter because the carrier's tonnage was fully utilized. CEO Jan Rindbo expects an adjusted bulk result in the low end of the forecast, he tells ShippingWatch.
US legislators are reviewing regulation which allows container carriers to enter into confidential partnerships and fix price guidelines. Critics believe that the law disadvantages players such as towage companies.
Almost two years after Claus Hyldager left his job as CEO of Inchcape Services, he is now ready to present a new maritime company and he has brought some of his former colleagues with him, he tells ShippingWatch.
A fishermen's strike and a fine from Iceland's Financial Supervisory Authority were factors in a reduction of Eimskip's profit in this year's first quarter. Growing expenses in freight rates and fuel also had a negative impact.
The gas carrier finished the first three months of the year with improvements across the board, a development attributed in particular to a new project in Colombia. The carrier also beat market expectations. "Balance sheet remains rock solid," notes Fearnleys.
The idea that bigger companies enjoy increased interest from major investors will now be put to the test in the wake of the merger between Navig8 and Scorpio Tankers, says Mikael Skov, CEO of Hafnia Tankers, who has IPO plans of his own.
Hapag-Lloyd and UASC are now officially merged after the two container carriers have agreed on the last remaining formalities in the deal. The merger will create the world's fifth-largest carrier by capacity. Get the latest details here.