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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Following the acquisition of Jo Tankers, Stolt-Nielsen is now thinking about separating Stolt Tankers as an independent company in a move that could pave the way for more acquisitions, CEO Niels G. Stolt-Nielsen tells newspaper Finansavisen.
There are too many ships on all the major trade routes and, as such, the chemical tanker carriers look set to face two years marred by weak rates. The bigger vessels will be hit particularly hard, projects Drewry in a new analysis.
The operating profit took a dive at Stolt-Nielsen's tanker division in the fourth quarter 2016, and prospects for the chemical tanker market in 2017 are less than positive, as the global fleet looks set to grow significantly, according to the carrier's annual report.
Tanker carrier Dorian LPG continued with a red bottom line in the third quarter of the company's displaced fiscal year. CEO John Hadjipateras is cautious about the prospects for the carrier, where revenue also took a big dip.
A higher offer will likely be necessary in order for the board of directors at DHT to recommend a sale of all the shares in the carrier to John Fredriksen's Frontline, according to analysts from Fearnley Securities and Clarksons Platou.
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.
Tanker carrier Frontline, controlled by John Fredriksen, has submitted a proposal for the acquisition of all shares in competitor DHT Holdings. The board of DHT Holdings is now deliberating the offer. If they accept, a new Norwegian crude tanker giant will be born covering 10 percent of the global fleet.
Too many vessels are eating into the recovery enjoyed by crude oil and product tanker carriers one year ago. Two new analyses outline the challenges, the greatest being the 265 new vessels delivered in 2016, and these problems could hit the industry in 2017 and 2018.
Tanker carrier Evergas has formed a new pool collaboration with Greek-based Eletson under the name E3 Pool. "Broader supply, a uniform product, and good for the environment," Evergas CEO Steffen Jacobsen tells ShippingWatch about the new venture.
The fourth quarter 2016 did not end well. This is the concurrent assessment from the head honchos of tanker; CEO of Euronav, Paddy Rodgers, and CEO of Torm, Jacob Meldgaard. And 2017 looks set to be weighed down by the many new vessels entering the fleet.
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.
Tanker carrier OSG and its former CFO have been charged in the tax case which almost bankrupted the company back in 2012. The carrier and the executive have also agreed to pay a fine, though without pleading guilty or not guilty, informs the SEC.
Was 2016 a final turning point for the otherwise successful tanker segment? Now the answers are revealed as to how both crude oil and product tanker carriers performed during a year which had such a promising beginning.
Gas carrier Höegh LNG has ordered a series of large FSRUs from South Korean shipyards Hyundai Heavy and Samsung Heavy. The ships are set for delivery in 2018 and 2019 and will work on contracts in Ghana and Pakistan.
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.
Investors will be able to bag solid profits on investments in container and dry bulk shipping in the coming years, but they should stay away from tanker carriers, says Drewry in a new forecast for shipping shares in 2017.
The extreme pressure in recent years on dry bulk carriers seems to be letting up, and 2018 in particular looks poised to be a turning point in all crucial aspects, concludes Fearnley Securities in a comprehensive analysis of the dry bulk market.
Senior Vice President Helge Olsen is stepping down as Odfjell's head of ship management after serving 17 years at the Norwegian carrier. He will be replaced internally until a permanent solution is found, the carrier writes in a statement.
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.
At least 10 of the 12 tankers that left Cheniere Energy Inc.'s Sabine Pass terminal in Louisiana last month, carrying LNG, are headed for Asian countries, and the region is now the biggest buyer of US-made LNG.
With the container alliance HMM + K2 Consortium, Hyundai Merchant Marine is signaling that the company eyes opportunities for growth in intra-Asia rather than on the large trade routes, says Lars Jensen from Seaintelligence consulting.
Jan Mechlenburg, who until recently served as Executive Vice President of Hafnia Tankers, left the tanker carrier at the turn of the year. He is one of the carrier's founders along with several other former Torm executives.
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.
So why did nothing happen until Kristian Mørch took over as CEO of Odfjell? A carrier with strong roots in Bergen and a close relationship with the family behind the more than 100-year-old carrier. ShippingWatch interviews the former Clipper CEO about his first 500 days and his future plans.
The fourth quarter is traditionally a good season for tanker carriers, but a surge in demand is currently keeping the vessels extra busy. A strong finish to the year for a segment which could face sliding rates following OPEC's announced cap deal.
After CEO Kristian Mørch has completed his first large-scale cost reduction initiative at Odfjell, he sets the stage for growth and a new fleet expansion – as well as a broader consolidation in which the carrier will play a proactive part, he tells ShippingWatch.
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.
Gas carrier Höegh LNG will supply and operate an FSRU in Pakistan for a 20-year period. This marks the second major contract for the company in December alone, and Fearnleys raises its expectations for the carrier significantly.
Frontline's raising of USD 100 million last week means the tanker carrier is ready for large-scale acquisitions. And by buying a major competitor, Frontline could become the world's second-largest tanker carrier, says DNB markets in an analysis.
OPEC's decision to slash crude output by 1.2 million barrels per day will hit VLCC earnings next year, project several analysts. As such, the supertankers could face the worst earnings year since 2013.
Norwegian gas carrier Höegh LNG has ordered four new vessels from struggling South Korean shipbuilder Samsung Heavy Industries. As per the deal, the first two ships will be delivered in 2019, while the remaining two will be delivered the following year.
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.
Gas carrier BW LPG has secured a stake of 92.71 percent in Aurora LPG following an offer period. "We remain confident that the combination of BW LPG and Aurora LPG will create a stronger player in the challenging environment in the LPG shipping industry," says CEO Martin Ackermann.
The dispute concerning a failed oil transport from West Africa to Europe is now continuing in Dubai where carrier d'Amico Shipping has filed a claim for close to one million dollars against bunker company Endofa. The case has previously been decided in London, but the carrier is pursuing a court ruling in the desert state.
The deal made by OPEC nations to reduce oil production, starting next year, corresponds to a decrease in demand of 32 Very Large Crude Carriers – or 4.5 percent of the existing fleet, according to the first assessment of the effects triggered by the international agreement.
Tanker carriers have spent millions of dollars in the first nine months of 2016. Especially Scorpio Tankers drags down the average, according to a review by ShippingWatch. A healthy cash flow is crucial during hard times for product tankers, notes one analyst.
On Dec. 13 when Maersk Group presents more details in the conglomerate's new strategy at its Capital Markets Day, topics at the top of the agenda will include transport, digitalization, and the divestment of Maersk Oil, reports Danish media Berlingske.
Norwegian gas carrier I.M Skaugen went from profit to deficit in the third quarter as an oversupply of vessels kept rates down and put pressure on earnings. The many vessels will keep a burgeoning recovery in check over the coming year.
Newbuildings in the market for VLGC's put further pressure on the rates for the Very Large Gas Carriers. LPG carriers will therefore also see their earnings squeezed in 2017, projects Drewry in a new analysis.
Tanker carrier Sovcomflot has signed a memorandum of understanding for a large credit facility which will be used to pay for two ice class Panamax vessels. The new ships will service a Russian oil project in the Pechora sea.
An agreement at next week's OPEC meeting would likely increase speculative oil trading. In the short term this could boost the product tanker market which is otherwise crippled by overcapacity and filled stockpiles, Hafnia Tankers CEO Mikael Skov tells ShippingWatch.
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.
Carrier Höegh LNG emerged from the third quarter with no significant fluctuations in its books. Long-term contracts keep the fleet occupied, and new ships will gradually strengthen the operating result, says the company.
Competition authorities have approved Stolt-Nielsen's acquisition of Jo Tankers' fleet of 13 chemical tankers and a newbuilding program of eight vessels. The deal amounts to almost half a billion dollars and is expected finalized in November.
Global capacity at refineries in the Far East and other regions is rising, thus boosting the demand for crude oil. China in particular is a driver in an otherwise tough year for tanker carriers, writes McQuilling in a new update.
Major rate declines in the third quarter for product tanker carriers will make their mark on the fourth quarter and throughout the rest of the year. Numerous carriers, most recently Torm, have downgraded their forecasts.
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.
Team Tankers, formerly known as Eitzen Chemical, has completed a strategical adaptation of its fleet with the divestment of three vessels, says CEO Hans Feringa in relation to the third quarter interim report Friday.
Tanker carrier Nordic American Tankers booked a deficit on the bottom line in the third quarter. The Bermuda based company is however, still in the black for the full year and is satisfied that ship costs are lower than current rates.
The chemical tanker market "continues to be challenging, but we continue to see improvements in our competitiveness, which softens the impact on the Odfjell results," says Odfjell CEO Kristian Mørch in the interim report Thursday. The carrier cancels orders for gas vessels.
Less cargo and growing competition dragged down the bottom line for Navig8 Chemical Tankers in the third quarter of the year, while new vessels boosted revenue. The carrier is optimistic about market prospects beyond 2016.
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.
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.