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.
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.
If Donald Trump eases regulations of the oil and gas sector, the tanker carriers will likely get more to do, notes JP Morgan in a new analysis. The bank also voices concerns about the Republican's opposition to free trade.
Italian product tanker carrier d'Amico International Shipping emerged from the latest quarter with a red bottom line. The CEO is satisfied with the positive result for the first nine months of the year, which culminated in a historically low spot market.
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.
Gas carrier Navigator Holdings is weighed down by the low LPG rates, and the carrier thus noted a decline in revenue and earnings in the third quarter. The company will now focus more on petrochemicals.
Major uncertainty concerning the future of the oil market made tanker carriers' shares slide in the past week. Investors are divesting of their energy portfolios ahead of critical OPEC meeting later this month, writes Morgan Stanley.
The implementation of global sulfur requirements from 2020 is good news for the LNG industry, whose optimism is greater than ever about natural gas's role as an alternative to conventional marine fuel. There is enough LNG available, and now structural obstacles must be overcome, says association SEA/LNG.
On Wednesday the Maersk Group published the conglomerate's third quarter interim report, which shows a deficit for the key business Maersk Line and a significantly lower group result overall. Below is an overview of the shipping and oil conglomerate's interim report.
Tanker carrier Odfjell has signed a agreements to order four chemical tankers. The vessels will be the world's largest chemical tanker vessels with stainless steel tanks. The vessel design is also environmentally friendly, says CEO.
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 tanker industry will likely find itself struggling with a growing young fleet and modest scrapping next year, projects Patrick Rodgers, CEO of major Belgian tanker carrier Euronav, in an interview with ShippingWatch.
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 shipowners gathered in ICS now warn the Canadian Transport Minister about the consequences of a potential moratorium on crude oil transports off the coast of British Columbia. Such a move would be "draconian" and could deter Canada's trade partners, notes ICS Secretary General.
Rates for VLCC vessels are skyrocketing after global oil production experienced a boost. Increased exports from Russia and Nigeria in particular are pushing rates up, writes Clarksons Platou in a new analysis.
Dubai-based tanker carrier Nakilat nearly managed to keep its earnings in the third quarter on par with the level seen in the third quarter last year in spite of an overall weaker market for LNG and LPG transports.
Tanker carrier Frontline has terminated contracts for four VLCC newbuildings from Korean shipbuilder STX and will instead look at second-hand vessels. Tanker market remains attractive, notes the carrier.
Belgian crude tanker behemoth Euronav has made a deal with its shipbuilder to push back delivery of two VLCC vessels to the first quarter 2017. The carrier thus also defers a large payment to early next year.
Weakened rates in product tanker have now prompted Deutsche Bank's shipping analyst to lower his earnings projections for Scorpio Tankers in the third quarter. Overall, it does not look good for tanker in the third quarter, and dividends for 2017 are set too high, notes JP Morgan.
While most of the world is talking about the slowdown in China's economy, and how this development impacts global trade, the industry should not forget that a growing need will remain for many years for oil in China – BW VLCC's VP for Commercial and Operations tells ShippingWatch.
Maersk's return to the controversial scrapping beaches in Alang, a time-frame for the developments toward unmanned vessels, and Maersk Line''s competitors are now noting surprising developments at the group after the split. Here are this week's top stories on ShippingWatch.
Declining rates in the tanker market pulled Stolt-Nielsen down in the third quarter, while container businesses are battling with fierce competition. Overcapacity and decline in China's production can plague the market in the coming year, says the CEO.
After meetings with the board of Aurora, the world's largest owner of gas vessels, BW LPG, has raised its takeover offer for Aurora and has now secured support from shareholders representing more than 52 percent of the share capital.
Navig8 Chemical Tankers is slowing down and canceling an order for five newbuilding tankers from STX Offshore & Shipbuilding. The canceled orders come in the wake of a period in which the carrier has expanded its fleet significantly.
Belgium's Euronav, which analysts view as the most robust crude oil carrier, just closed a weak third quarter and will deliver a deficit for the three months later this October, projects Deutsche Bank.
The recovering oil price, the sale of Danish Ship Finance, the aftermath in Maersk's executive circles, and calls for a new CO2 roadmap from the IMO were among this week's top stories on ShippingWatch.
Management at the Scorpio group will no longer automatically collect one percent in fees for all vessels purchased or sold through Scorpio Bulkers and Scorpio Tankers. However, management can still collect fees through Bulkers if the share price exceeds USD 5.
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.