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.
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.
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.
Perhaps Maersk Line can expect a positive result in its interim report, set for release next Wednesday. The battle for the ballast water market has begun. John Fredriksen struggles with two separate issues. And Shipping and offshore are hurting banks. Read this week's top picks on ShippingWatch.
How valuable are the analyses from the major credit rating bureaus which the maritime sector uses for risk management and for evaluating third-party risks? Alphabulk has delved into a concrete example and presents an answer to the question.
The interest on J. Lauritzen's Norwegian bond loan has almost doubled since it was issued in 2012. This could make it quite expensive to refinance unless this is paid with money from the owner or a new bank deal.
Australia's BHP Billiton produced more iron ore in the first half of the fiscal year 2016/2017, especially due to a record output from subsidiary WAIO. Prices for the key commodity increased during this period.
Although both parties were seemingly pleased with the results, J. Lauritzen's arrangement to handle Hafnia Management's bunker acquisitions has been canceled, effective April 1. The deal has secured Lauritzen one dollar per purchased ton of bunker oil.
Either the dry bulk rates will rise this year or the supply of vessels will decline, enabling rates to go up next year instead. Regardless of the journey to get there, the future looks bright for struggling bulk carriers, according to J.P. Morgan and Danske Bank.
The recovery seen late last year was not the beginning of a comeback for the dry bulk market, warns Maritime Strategies International. The analyst firm projects yet another year of low rates, for Capesize and Panamax in particular.
Dismissals at J. Lauritzen, new cases in the wake of OW Bunker, and the crisis in the oil and gas sector leading to fresh firings at Maersk Oil – these were among the top stories on ShippingWatch this week.
Dry bulk carrier T.K.B. is in a sticky situation after battling with OW Bunker's bankruptcy. Just like many others, the carrier has been forced to pay twice for the same fuel. The CEO has unsuccessfully tried to gather colleagues for a joint lawsuit against OW.
Norwegian bulk carrier Golden Ocean expects that the bulk market will perform slightly better than in 2016 which saw a historic downturn back in February. However the carrier does not see signs of a recovery.
Interview with Maersk Tankers' new CEO, Christian Michael Ingerslev, a new Asian container alliance, a surge in dry bulk shares, and rigs ready to be scrapped in the North Sea were some of this week's top stories on ShippingWatch.
Iron ore prices could face a setback in the year to come after registering a surprise recovery in 2016, projects RBC Capital Markets. Growing iron ore stockpiles in Chinese ports and record-high Brazilian export are contributing factors.
The prospects for struggling owners and operators of multipurpose vessels are intertwined with especially dry bulk vessels which have poor hopes of higher rates anytime before the end of 2017, according to Drewry.
In December, the two major Dutch banks ING and ABN Amro forced the first large-scale consolidation through in the ailing multipurpose sector. Now the market is waiting on what the banks will do next in the German hub for specialized vessels. Drewry eyes slight improvement in late 2017.
A large number of new vessels are headed into the dry bulk market in 2017 and 2018, which creates a major need for scrapping if the sector is to stand any chance of being profitable in 2019, warns Bimco.
Mitsui OSK Lines was blamed for a dramatic 2013 wreck, Hyundai Merchant Marine lashed out at Maersk Line, while Kristian Mørch talked about his turnaround of Odfjell this week on ShippingWatch, which also brought news about Thorco, Rickmers Maritime, and the oil sector.
The two dry bulk carriers Gearbulk and Grieg Star's new joint venture, announced back in October, now has a name: G2 Ocean. The company is expected to launch operations in the first half of 2017 and will operate a fleet of more than 130 vessels.
A Thorco-managed Dutch company combines 61 multipurpose vessels in a new joint venture with ships from, among others, bankrupt Flinter Group and Abis Shipping, Otto Torenbosch, head of Thorco Shipping in the Netherlands, tells ShippingWatch.
Brazilian miner Vale inaugurated the largest project ever in the mining industry over the weekend. The mine, Eliezer Batista, represents combined investments of more than USD 14 billion and is expected to commence operations in January 2017.
The bulk recovery which began in November is now definitively over. The Baltic Dry Index has fallen tremendously since its high point in the middle of November and has now reached the same level as when the recovery began. 2016, however, comes to a close amidst industry optimism.
Maersk finally presented its plan for what the group will look like going forward, and what will be sold off. The group also received some rare criticism from Denmark's conservative government. A new shipping bank saw the light of day, and another wants to be global. Here are this week's top picks on ShippingWatch.
US dry bulk carrier Eagle Bulk will raise USD 100 million by selling new shares. The money will primarily be spent on purchasing new vessels, informs the company, which is headed by Gary Vogel, former Clipper CEO.
The nine major New York-listed dry bulk carriers have in the first three quarters of the year lost a billion dollars in total. Not one of the carriers has made a profit in even a single quarter, according to a survey from Alphabulk.
German carrier Oldendorff and Cargill Ocean Transportation have shared the title of world's by-far largest bulk operator with fleets of approximately 500 vessels. But Oldendorff has expanded heavily in 2016 in terms of fleet size, according to new numbers.
Trading house Trafigura finished the financial year 2015/16 with a setback on the bottom line, though the low commodity prices boosted volumes. Trafigura points to continuing difficult market conditions and pressure on producers through 2017.
Norden has signed its biggest-ever contract in terms of volume. The carrier will transport coal from the Philippines over a ten-year period, and the contract is set to begin in the first quarter next year.
Western Bulk Chartering's business has been drastically reduced compared to previous years, following the parent company's bankruptcy in early 2016. But things are slowly starting to shape up for the bulk company. Investigations into the parent company's bankruptcy are now finished.
Jinhui Shipping, listed on the Oslo Stock Exchange, closed this year's third quarter with a deficit on the bottom line, just as the carrier did one year ago. "The freight rates in the first nine months of 2016 have been extremely volatile," writes senior management.
What could explain a price surge as big as USD 5 to USD 73 in an ailing bulk carrier over a period of just four days, asks Alphabulk. The analyst agency offers an explanation for the huge price jump logged before trading of the share was halted on Nasdaq in New York.
Norwegian dry bulk carrier Golden Ocean continues to book red bottom lines. However, senior management expects improvement in the fourth quarter and feels ready to reap advantages from a possible recovery on the dry bulk market.
Greek bulk carrier Star Bulk, backed by equity fund Oaktree, booked a net deficit of USD 39.1 million in the third quarter. This is attributed to low rates and losses on ship divestments, the company writes in a financial statement.
Greek-based Diana Shipping has called off negotiations with a series of lenders and has no plans to resume the talks, informs the carrier in relation to its third quarter interim report, which shows a deficit of USD 79.8 million.
DFDS delivered another strong quarterly result during the past week of financial reports from several carriers, Maersk got burned by its own restructuring, and both bulk and tanker saw more setbacks. These were just some of the top stories this week on ShippingWatch.
The emerging dry bulk recovery has so far sidestepped J. Lauritzen, and the carrier is now also preparing for a downturn in the gas sector. "Of course we'd much rater be making money," the carrier's new CEO, Mads P. Zacho, tells ShippingWatch.
The two executives suspended last week have now been fired by mining company Rio Tinto. This occurred after an internal investigation of a case concerning a mining project in Guinea, after a 2011 incident where millions of dollars were paid out to a consultant with ties to the president at the time.
Hopes that dry bulk will experience a comeback are slowly beginning to emerge throughout the ailing bulk sector. Benchmark bulk shares have increased over the past week, writes Clarksons Platou. Donald Trump's construction plans could also boost US steel imports, observers project.
Banks including ING and ABN Amro are demanding compulsory sales of more than 20 Dutch-controlled multi-purpose vessels after cancelling loans to the vessels. ABN Amro has now cancelled the credit to Abis Shipping's fleet of more than 12 ships.
Analysts project a significant share price upside for listed dry bulk carriers such as Norden, Scorpio Bulkers, and Golden Ocean in the wake of the first indications that the sector is headed for recovery. Some carriers have already seen growth this year between 100 and 200 percent.
Friday brought yet another sign of an improving dry bulk market. With a seven percent increase, the Baltic Dry Index has crossed the magical 1,000 point threshold and has thus reached the highest level noted in 15 months.
The biggest news this week was without doubt Donald Trump's victory in the US presidential election against Hillary Clinton, which came during a week also characterized by interim reports from tanker carriers and offshore players.
Backed by an equity fund, Jeppe Jensen has set Celsius Shipping on the course towards dry bulk where the carrier has purchased 12 Chinese vessels since May 2016. "I have no biases about what you can or can't do," he tells ShippingWatch.
Container carriers are at risk of taking a big blow if Donald Trump makes good on his threats to close the US further off from the rest of the world. Forwarders will likewise be hit, while oil companies stand to benefit, according to several analysts after the dramatic election results came in.
Norden's fleet of operated dry bulk vessels should become "significantly" bigger in the coming years, CEO Jan Rindbo tells ShippingWatch following yet another quarterly deficit. Rindbo declines to comment on possible impairments on tanker.
Carrier Eagle Bulk was able to increase revenue in the third quarter of the year in spite of operating four ships less in its fleet compared to the same period 2015, yet the result still came to a deficit of USD 19.4 million.
Norwegian dry bulk duo Songa Bulk, consisting of Herman Billung and Arne Blystad, has raised close to USD 75 million for investments in dry bulk vessels. Billung and Blystad have both injected their own money into the project, which has now purchased its first vessel.
In spite of a total collapse in the dry bulk industry and massive losses in carriers' market values, dividends of more than USD 500 million have still been paid to shareholders in 10 listed carriers in recent years.
The IMO reached agreement on the global sulfur directive, a list of Hanjin's creditors was published, and senior executives from the maritime sphere gathered for the Danish Maritime Forum in Copenhagen. Read about ING's lost OW Bunker case, struggling multipurpose carriers, and Maersk Line.
The new Norwegian dry bulk duo consisting of Arne Blystad and former Golden Ocean CEO Herman Billung has now kicked off its hunt for capital. At first the duo is looking to raise USD 50 - 100 million, Herman Billung tells ShippingWatch.
An aggressive price war on reefer freight among the major container carriers combined with military and political uncertainty in the eastern part of the Mediterranean has hit specialized reefer transport, says Star Reefers.
Two of Germany's large and struggling lenders to shipping, NordLB and Bremer Landesbank, have 15 percent of their loans, EUR 2.7 billion, at stake in the collapsed multi-purpose and heavy lift industry.
Dry bulk carrier Pacific Basin has issued new shares to a series of shipowners in return for lower charter rates over the next two years. The new charter deals could strengthen the company's balance in the dire dry bulk market, notes Fearnleys.
Mads Zacho explained how he plans to get J. Lauritzen back on its feet, Maersk's shipbreaking troubles intensified, and two Norwegian shipping families joined forces in a new bulk partnership between Grieg Star and Gearbulk this week. Read about how shipping talent is developed as well.
The decision from major bank ING to stop financing the multi-purpose group Flinter is a premonition of what is yet to come for owners and operators in the suffering specialized bulk sector, predict sources to ShippingWatch.
The new dry bulk partnership between Gearbulk and Grieg Star was started by tradition-bound shipping families Jebsen and Grieg, who have known each other for decades. Now, they will form a dominant player in bulk's open hatch segment, says Chairman of Grieg Star, Elisabeth Grieg, to ShippingWatch.
The new joint venture between Grieg Star and Gearbulk provides an opportunity to improve the situation for dry bulk carriers even in a horrible bulk market. A large fleet is an advantage in the market, Kristian Jebsen, CEO and Chairman of Gearbulk, tells ShippingWatch.
Swiss-based Gearbulk, controlled by the Jebsen family, and Norway's Grieg Star, headed by sisters Camilla and Elisabeth Grieg, have a new partnership to create a dry bulk carrier with a fleet of more than 130 vessels and headquartered in Bergen. (Being updated)
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 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.