Forth Ports Limited and Port of Zeebrugge/MBZ yesterday signed a Memorandum of Understanding (MoU) which marks the start of a strategic agreement between the Port companies with the aim of the exploring mutual opportunities to attract new container cargo volumes.

Both ports have complementary assets both in current trade arrangements and geographical positioning and through this MoU, Forth Ports and Port of Zeebrugge have agreed to explore initiatives … Read More…]]>

Forth Ports Limited and Port of Zeebrugge/MBZ yesterday signed a Memorandum of Understanding (MoU) which marks the start of a strategic agreement between the Port companies with the aim of the exploring mutual opportunities to attract new container cargo volumes.

Both ports have complementary assets both in current trade arrangements and geographical positioning and through this MoU, Forth Ports and Port of Zeebrugge have agreed to explore initiatives to develop these current trade links and connections. The agreement will initially focus on enhancing container cargo volumes at Port of Zeebrugge and London Container Terminal (LCT) in Tilbury which is the UK’s third largest container terminal.

Zeebrugge’s container volumes are largely dominated by deepsea Far East volumes, while LCT has a particularly strong position on the South America trades. LCT at Tilbury has a unique geographical position as London’s key port, while Zeebrugge has a unique deep-water location near the seagoing trade lanes.  Zeebrugge also has a significant South America cargo base demand while Tilbury is an excellent gateway for Far East cargo for the London consumer markets.

Independent business advisors Maritime & Transport Business Solutions (MTBS) completed the market analysis for LCT which has led to the MoU being agreed by both Ports. MTBS will remain on board to provide further support as the project develops.

Commenting on the MoU, Perry Glading, Chief Operating Officer at Forth Ports (owners of Port of Tilbury and LCT) said: “This is great news and a real opportunity to capitalise on synergies at both Ports. Tilbury has a unique position in the UK at the heart of the London and South East markets. Using a regular feeder service from Zeebrugge we offer an alternative to large deep sea vessels who need only make one call at the Belgium ports for the onward feed service to the UK.

“We have a significant investment programme underway at LCT and have already installed a new ICT system, purchased 14 new straddle carriers and installed a new single lock gate. We look forward to working with MBZ at Zeebrugge on this important project.”

Mr Coens said: “The signing of this Memorandum of Understanding  is a logical development, since from way back Port of Zeebrugge acts as a bridgehead for the British markets, in particular the London area. By strengthening the ties with Tilbury, we aim at enhancing cargo flows.”

InterManager, the international association of in-house and third party ship managers, is calling on flag States to exercise tolerance and flexibility in the weeks and months following the entry into force of the Maritime Labour Convention.

A poll of its member companies shows that InterManager members are ready to meet the needs and demands of the MLC when it enters into force on August 20th this … Read More…]]>

InterManager, the international association of in-house and third party ship managers, is calling on flag States to exercise tolerance and flexibility in the weeks and months following the entry into force of the Maritime Labour Convention.

A poll of its member companies shows that InterManager members are ready to meet the needs and demands of the MLC when it enters into force on August 20th this year.

However, the association remains concerned that, as the MLC requires total commitment from its global stakeholders, restraint and a common interpretation of the rules needs to be seen from inspecting authorities when vessels start to visit the world’s ports following the August 20 start date.

Gerardo Borromeo (pictured), President of InterManager, said: “There is need for all flag state and port state authorities to exercise maximum tolerance and flexibility when the convention comes into force this August. Only 40 States around the world have so far ratified the MLC so there are many States still in the process of ratifying or may even be a considerable ways from ratifying.

“This poses great concern to ship managers and crew managers who are immediately impacted by this convention. It is equally important that all States ensure their respective flag and port state control inspectors are prepared to meet the unique demands of the MLC.

“InterManager welcomes the entering into force of MLC but remains concerned that many of the world’s major ports which our members’ vessels visit, lie within the borders of countries which have yet to ratify the MLC such as the US, Korea, UK, Italy and Japan. We need a common interpretation of the rules to ensure there is a smooth entry into force of this important convention,” he added.

InterManager members are committed to the smooth and efficient operation of their managed fleets and so it is essential that ships are able to enter and depart loading and discharging ports as quickly as possible. “Because not all flag administrations have approved the convention, it is important that the shipping industry can be assured of minimum disruption to vessel operations following the entry into force of the MLC this August,” Mr Borromeo said.

He concluded: “We are urging the major trading nations to move with more urgency to get themselves into the picture regarding MLC. InterManager will work with all the stakeholders to ensure the smooth transition into force of this crucial piece of shipping legislation.”

The company says there has been an increased demand for outsourced ship supply services that deliver both cost and operational efficiencies, as well as standardisation of products.

The need to ensure … Read More…]]> As ship owners and operators look to benefit from the continued growth in Asia, global trade, Wrist Ship Supply has cemented its presence in China with the appointment of a dedicated Key Account Manager for customers in the region.

The company says there has been an increased demand for outsourced ship supply services that deliver both cost and operational efficiencies, as well as standardisation of products.

The need to ensure cost-efficient yet quality consumables and in particular, food, is also under the spotlight with the Maritime Labour Convention 2006 (MLC 2006) due to enter into force in August this year. This legislation to safeguard seafarer welfare includes the first ever recommendations for seafarer nutrition best practice.

To ensure that customers are prepared for this change, while optimising vessel economy and efficiency, Wrist Ship Supply is strengthening its regional points of contact across Asia following the successful appointment of on-the-ground teams in Singapore and the Philippines in 2012.

Ying Li Kier has been appointed as Key Account Manager for the Chinese market and has a strong knowledge of the region. She previously worked at Maersk Line in China and over the past two years at Wrist Group she has been responsible for developing the market entry strategy and associated procurement processes for China.

Søren Jørgensen, EVP & Vice President, Global Sales, Wrist Ship Supply, said: “China is a significant market and Ying’s appointment reflects the demand from many of our customers for a point of contact on the ground in the region. Communication is essential in ensuring efficient ship supplies and combining Wrist’s global network and standardised products with a local level of service, knowledge and daily customer contact will enable us to best support both our customers and prospects as they look to develop in the region.”

It is the first major accolade that Dryad has won and maintains the businesses’ strong start to 2013 which has seen a period of steady growth with the opening of new offices in Hastings, ongoing recruitment and the appointment of David Hunkin as Commercial Director.

The unit, formerly the 138,830-cbm LNG carrier Golar Frost, has been under conversion since June 2009 at Drydocks world Dubai yard for contractor Saipem and owner OLT.  The LNG Carrier, built by Hyundai Heavy Industries was converted into a floating LNG receiving terminal of the FSRU type, and will be permanently moored off Livorno, Italy and … Read More…]]> Floating Storage Re-gasification Unit (FSRU) Toscana has sailed away from Drydocks World – Dubai. 

The unit, formerly the 138,830-cbm LNG carrier Golar Frost, has been under conversion since June 2009 at Drydocks world Dubai yard for contractor Saipem and owner OLT.  The LNG Carrier, built by Hyundai Heavy Industries was converted into a floating LNG receiving terminal of the FSRU type, and will be permanently moored off Livorno, Italy and connected to shore through a gas export pipeline. There are only a few such units in operation around the world.

The unit has a net storage capacity of 137,100 m³ and it is classed as a marine unit designed to remain at the site for 20 years. The FSRU has a steel mono-hull with four Moss-type LNG tanks, the Re-gasification Plant is located at the forward end and the accommodation with central control room and utility machinery is at the aft end.

The project consisted of constructing, installing and commissioning various components such as the Turret mooring system, side by side berthing mooring system for LNG carrier, LNG storage tanks and loading system, LNG transfer system to re-gasification plant, process plant for re-gasification, boil-off gas handling and gas send-out to Export System, metering systems, utilities including power generation and sea water systems, control, automation and communications systems, gas flexible risers and riser base and control umbilical from FSRU.

“Floating Storage Re-gasification Units have been a key contributor towards developing new markets for LNG and provide vital links for a new market,” said HE Khamis Juma Buamin, Chairman of Drydocks World and Maritime World.

“They offer flexibility, are accepted technically and are attractive from an economic point of view – all of which are significant factors for the development of the market. Such conversions involve a high level of sophistication and a wide-range of technical and commercial skills. We are delighted that our shipyard was able to offer these and was able to conclude complex tasks safely, efficiently and to the satisfaction of our client.”

The Code replaces the previous RMI … Read More…]]> The Republic of the Marshall Islands (RMI) Maritime Administrator recently published the revised RMI Yacht Code (MI-103) to reflect changes in today’s yacht market, not only in terms of the increasing size and complexity of yachts being designed and built, but also to cover recent industry developments such as technology, new international conventions coming into force and port State control (PSC) inspection of yachts.

The Code replaces the previous RMI Commercial Yacht Code in its entirety and applies to all commercial yachts of 24 metres in loadline length and above and certain sections of the Code apply to Private Yachts Limited Charter (PYLC) of any tonnage. The Code sets the standards and substantial equivalencies for safety, security, pollution prevention and seafarer accommodations appropriate to the size of the yacht.

Substantive changes to the Code include the Administrator’s requirement that all commercial yachts, regardless of tonnage, must be classed by a recognized organisation (RO) or classification society. The Administrator will continue to recognise appointed representatives (ARs) for the issuance of international statutory convention documents on unclassed yachts. Two such ARs already have agreements in place with the Administrator: United Maritime Survey and Regs4yachts.

A notable change is that the Code no longer has a size limitation and is applicable to commercial yachts and PYLCs of unlimited tonnage. With respect to survey and inspection requirements, changes include an initial, annual and renewal compliance verification (inspection) for commercial yachts and PYLCs and the issuance of an RMI national compliance certificate for a commercial yacht or PYLC. For those yachts that have been issued a Commercial or Private Yacht Document of Compliance, either a Commercial Yacht Compliance Certificate or PYLC Compliance Certificate will be issued by the Administrator following the next annual compliance verification.

“We are pleased and excited to launch the revised Code,” said Marc Verburg, Deputy Commissioner of Maritime Affairs.

“The Code is now more in line with current practices within the yacht industry and pulls together new convention requirements like the Maritime Labour Convention, 2006. We look forward to industry feedback and hope for a smooth transition for existing yachts in the Registry.”

The Administrator remains firmly committed to ensuring full compliance with both national and international requirements with respect to safety, security and protection of the marine environment. The Administrator is submitting the Code to the IMO and requests industry feedback to further enhance the provisions of the Code.

The IMO Symposium on the Future of Ship Safety, held on 10th and 11th June, at IMO Headquarters in London, has recommended that the International Maritime Organization (IMO) carries out a full review of the existing regulatory regime, in order to meet future needs and expectations.  Following two days of intense discussions on a wide range of issues impacting the future of ship safety, the Statement of the … Read More…]]>

The IMO Symposium on the Future of Ship Safety, held on 10th and 11th June, at IMO Headquarters in London, has recommended that the International Maritime Organization (IMO) carries out a full review of the existing regulatory regime, in order to meet future needs and expectations.
 
Following two days of intense discussions on a wide range of issues impacting the future of ship safety, the Statement of the Participants of the Symposium recommends that IMO’s Maritime Safety Committee (MSC) (which is meeting for its 92nd session from 12th to 21st June) should: 
 
•       Consider how to improve data collection and increase its availability in order to support monitoring and development of safety regulations;
 
•       Consider how to better integrate risk-based methodologies and the latest analysis techniques into the safety regulatory framework to provide a sound scientific and practicable basis for the development of future safety regulations;
 
•       Consider ways of encouraging a safety culture beyond mere compliance with regulatory requirements;
 
•       Take into account the burden any new or changing regulation(s) place on the seafarers and consider how this burden can be minimized; and
 
•       Consider undertaking a long-term comprehensive review of the existing safety regulatory framework with a view to ensuring that it will meet the future challenges associated with the application of new technologies, the human element, the needs of the maritime industry and the expectations of society, taking into account the ever-increasing pace of change and technological advancements made since the 1974 SOLAS and the International Load Lines Conventions were adopted.
 
Speaking at the close of the Symposium, IMO Secretary-General Koji Sekimizu (pictured) said that the fascinating, stimulating and insightful Symposium had considered wide-ranging issues, relating to a more goal-based, risk-based approach.
 
“With regard to data collection: there is no doubt that more and better data, and the use of the latest methods to analyse them, are central to the development of future regulations based on risk,” Mr Sekimizu said.
 
“Second, there is no doubt in my mind that a safety culture that goes beyond mere compliance is essential in the future. Ships will become more complex and, as they do, we must move away from safety being simply a series of box-ticking exercises. That approach is not good enough now, and the administrative burden must be reduced,” he said.
 
“Third – and this is perhaps the most far reaching – you have considered whether the current safety regulatory framework is appropriate for responding to the future challenges and innovation and new technology associated with the ever-increasing sizes of ships and the need for compliance with environmental regulations; and, if we should change the safety system, how should we do that?” Mr Sekimizu said.
 
Mr Sekimizu also highlighted the symposium’s focus on the human element; the need for self-regulation; and education and training.
 
“The serious challenge maritime training institutes are now facing is to keep up with new technology and this must be addressed.  Currently, the shipping industry is facing serious financial difficulties but it needs to comply with regulations for marine environment protection,” he said. “Discussion on the future must cover all issues relating to ensuring competent seafarers free of stress and fatigue; support for seafarers must be continuously addressed at IMO.”
 
The symposium was attended by some 500 delegates (which includes remote participants) who had the opportunity to pose questions to six international panels of high-level speakers from across the broad spectrum of ship design, construction, equipment, operation and regulation.  

UK maritime promotional body Maritime London has appointed shipbroker Alderman & Sheriff Jeffrey Evans as its chairman. He follows David Moorhouse CBE in this position.

Made up of professional UK maritime service firms, Maritime London showcases the breadth and depth of the cluster. The UK’s maritime industries accounts for 2.1% of the British economy, contributing £13.8bn to the UK economy directly.

Jeffrey Evans is Managing Director, Gas, at … Read More…]]>

UK maritime promotional body Maritime London has appointed shipbroker Alderman & Sheriff Jeffrey Evans as its chairman. He follows David Moorhouse CBE in this position.

Made up of professional UK maritime service firms, Maritime London showcases the breadth and depth of the cluster. The UK’s maritime industries accounts for 2.1% of the British economy, contributing £13.8bn to the UK economy directly.

Jeffrey Evans is Managing Director, Gas, at Clarksons, a leading provider of integrated shipping services and is an Alderman and Sheriff of the City of London.

Commenting on his appointment Jeffrey Evans said: “I’m delighted and honoured to have been appointed Chairman to Maritime London and carrying on the work so ably handled by my predecessor David Moorhouse. This year is a particularly big year for us with London International Shipping Week taking place in September. This is a real chance for us to show shipowners, operators, charterers and government just what a fantastic maritime cluster we have here in the UK. I look forward to banging the drum for the UK’s maritime services around the world.”

Overall confidence levels in the shipping industry rose to their highest level for two and a half years in the three months ended May 2013, according to the latest Shipping Confidence Survey from international accountant and shipping adviser Moore Stephens.

The survey produced evidence of increased enthusiasm for new investment, although doubts persisted about the availability of bank finance. Fuelled by ongoing concern about a surfeit of tonnage on … Read More…]]>

Overall confidence levels in the shipping industry rose to their highest level for two and a half years in the three months ended May 2013, according to the latest Shipping Confidence Survey from international accountant and shipping adviser Moore Stephens.

The survey produced evidence of increased enthusiasm for new investment, although doubts persisted about the availability of bank finance. Fuelled by ongoing concern about a surfeit of tonnage on the market, freight rates in the dry bulk sector in particular were expected to come under more pressure over the next twelve months, although the outlook for the tanker markets looked more encouraging.

In May 2013, the average confidence level expressed by respondents in the markets in which they operate was 5.9 on a scale of 1 (low) to 10 (high), compared to the figure of 5.8 recorded in the previous survey in February 2013. This is the highest figure since the 6.0 recorded in November 2010. The survey was launched in May 2008 with a confidence rating of 6.8. The confidence rating for owners was unchanged at 5.7, while that for brokers was up from 5.6 to 5.9, the highest figure since November 2010.

Confidence on the part of managers and charterers, however, was down to 6.0 and 5.5 respectively, from 6.2 and 6.0 in February 2013. Geographically, confidence in Asia was up (from 5.6 to 5.8), unchanged in Europe at 5.8, and down in North America from 6.1 to 6.0.

A number of respondents felt that there were positive signs that a recovery was under way. One said, “The shipping market is dynamic in nature, and we are starting to see signs of exponential growth,” while another predicted with great confidence, “The shipping markets will continue growing over the next fifteen years!” Elsewhere the predictions were less expansive, ranging from, “The market will recover in 2014,” to, “Overall, we believe that 2013 will end up better than last year, and 2014 will show further improvement, even if some niche markets may not be able to maintain their current rate of growth.”

Other respondents, meanwhile, continued to express concern about a surfeit of tonnage in the market. One said, “As soon as there is any hint of a sector with positive potential, owners run to the yards and start ordering” while another noted, “New orders need to be halted for two years in order to correct the over-supply situation.”

Elsewhere it was noted, “There are still too many owners ordering new vessels which will hit the water in the next two years. If we are to believe estimates that the world’s shipyards turned out five times as much tonnage in 2012 as they did in 2005, it is clear that the problems are far from being solved.” Another respondent commented, “Newbuildings from China are still being delivered, and that will doubtless continue because the yards are major employers of local labour and huge consumers of indigenous steel and other raw materials.”

And it was not just China which was referenced in this context, with one respondent pointing out, “There are competitive prices on offer for newbuilding orders, even from Japanese shipyards.” Another respondent predicted a continuing over-supply of tonnage in all sectors except those below 20,000 dwt, adding, “Too many larger ships continue to be ordered and delivered due to perceived low newbuilding costs, but these deals do not come close to making sense based on current market returns.”

Despite significant increases in scrapping levels in the past eighteen months, a number of respondents felt that much more still needed to be done. “The level of new ordering is alarming,” said one, “particularly as some reports suggest that rates of scrapping may now be slowing down again. At current levels the fleet will continue expanding into 2014 and 2015.” Another respondent said, “The industry faces significant increased costs in terms of meeting new regulations over the next few years and, given the lack of available finance, this may accelerate the scrapping of older vessels, particularly those coming up for their fourth survey, but this is unlikely to be sufficient to get the industry out of the over-supply hole it finds itself in.”

One respondent said,  “We are increasingly pessimistic about the ability of smaller, privately owned European-based shipowners to compete in the main non-niche markets due to lack of scale and financial muscle, as well as evidence of protectionist practices which render certain trades inaccessible.” Elsewhere it was noted, “We have some way to go before we can expect to see any improvement in freight rates, especially if a new wave of cheap, fuel-efficient ships is ordered for 2015 onwards.”

Regulatory demands featured in the responses from a number of respondents, with one commenting, “The increasing burden of regulation, and the desire on the part of Brussels to be more proactive in its control of what is a global business, is likely to lead to a large number of marginal players exiting the market completely. Whether this will be sufficient to accelerate a return to a better supply/demand balance remains to be seen.”

The cost and availability of bank finance was uppermost in the minds of a number of respondents. “If the banks do not improve their funding resources,” said one, “shipping will remain depressed for years to come.” Another commented, “The banks are not willing to invest in older ships.”

This was a view echoed by the respondent who remarked, “We have looked at several secondhand ship purchase deals which appear to be good enough to replace older tonnage, but our main lending bank is still not willing to finance them, even with high un-mortgaged equity values within our business able to back the loans.” Elsewhere it was noted, “The banks are behaving illogically, and their lack of support frustrates the shipping industry.”

Generally speaking, respondents were more positive than for some time with regard to the state of global and national economies. One said, “The US economy is slowly starting to recover, which will impact positively on demand and on freight rates, plus the likelihood of interest rates remaining unchanged for a few more years will serve to stimulate the market.”

The likelihood of respondents making a major investment or significant development over the next twelve months was up marginally on the previous survey, on a scale of 1 to 10, from 5.5 to 5.6 – the highest level since the 5.7 recorded in February 2011. Owners (down two points to 5.7) were the only category of main respondent to show a fall-off in expectation in this regard. Both charterers and managers, meanwhile, recorded an increased expectation (each from 5.7 to 6.0) of making new investments over the coming year, a view shared also by brokers (up from 4.8 to 5.2).

The percentage of owners who assessed the likelihood of their making an investment at 7.0 out of 10.0 or higher was up by one percentage point to 45%, while the number of charterers who thought likewise was also up by the same margin, from 46% to 47%. Meanwhile, 45% of managers rated the likelihood of their making a new investment over the next twelve months at 7.0 out of 10.0, or higher.

Geographically, expectation levels of major investments were up in all the main geographical areas covered by the survey – in Asia, from 5.4 to 5.5, in Europe from 5.5 to 5.6 (their highest level since February 2011), and in North America from 4.9 to 5.9. One respondent noted, “Regulatory demands on shipping are such that the industry cannot cope with large investments in a financially tight market.  Trust in shipping in general is low, given the market sentiment.

Demand trends, competition and finance costs once again featured as the top three factors cited by respondents overall as those likely to influence performance most significantly over the coming twelve months. The overall numbers for demand trends were down one percentage point to 22%, static for competition at 20%, and unchanged also in the case of finance costs at 16%. Tonnage supply (down one percentage point to 12%) featured in fourth place, ahead of operating costs (up two percentage points to 11%), and fuel costs, which were one percentage point down on last time at 10%.

Demand trends remained the number one performance-affecting factor for owners, although down by one percentage point to 21%. Competition featured in second place at 18% (up from 15% last time), followed by finance costs, up one percentage point to 17%. Tonnage supply, having featured in second place in terms of owners’ priorities last time, was down by two percentage points to 16%.

For managers, meanwhile, competition, although down from 20% to 18%, still featured in equal first place with demand trends (down one percentage point to 18%), followed by finance costs, down from 17% to 16%. For charterers, demand trends, while down by five percentage points to 24%, took over first place from competition, which was down from 31% to 17%. Finance costs featured in third place, with 16%.

Geographically, demand trends were the most significant factor for respondents in both Asia and Europe (up by three percentage points in Asia to 23% but down in Europe from 24% to 22%).

Competition and finance costs, in that order, made up the top three performance-affecting factors in both Asia and Europe. In North America, meanwhile, competition featured in first place (up eight percentage points to 28%), followed by demand trends, where there was a fall from 38% to 26%,  and operating costs, at 11%. Operating costs were referenced by a number of respondents.

One said, “Owners who are in a position to control fuel costs by operating very efficient vessels, with highly skilled crews, will be at a clear advantage,” while another expected “further shortages of well-qualified and experienced crew, and an increase in their salary demands.”

There was a three percentage-point fall (from 40% to 37%) in the number of respondents overall who expected finance costs to increase over the next twelve months. This is the lowest figure in the life of the survey to date. The number of respondents expecting finance costs to come down, meanwhile, reached its highest figure (11%) since November 2010.

Owners were the only main category to record a fall in the numbers of respondents expecting an increase in finance costs (down from 37% to 32%). The figure for charterers was unchanged at 50%, while for managers and brokers it was up 3 and 6 percentage points respectively, to 44% and 38%.

The number of respondents in Asia anticipating an increase in finance costs was up by 2 percentage points to 40% compared to last time, but the corresponding figure for Europe was down from 39% to 32%. In North America, meanwhile, 52% of respondents thought that finance costs were likely to rise, compared to 42% previously.

While the majority of respondents bemoaned the lack of available, affordable finance, one respondent noted, “Shipowners appear to be resorting more frequently to bond financing, and it seems that these investors are looking through rose-tinted spectacles when it comes to assessing the future and are prepared to support owners in this respect.”

Turning to freight rates, it was the tanker markets this time which generated the most positive comments.

The number of respondents overall who expressed an increased expectation of higher rates in the tanker sector over the next twelve months was up by two percentage points to 37% – just one percentage point below the figure recorded when the survey was launched in May 2008, but some way short of the survey high of 50% posted in May 2010. Owners (up five percentage points to 41%) led the way in terms of increased expectations of better rates, while charterers unsurprisingly set their sights much lower, at an unchanged 29%.

The number of managers expecting improved rates was meanwhile down by one percentage point to 31%. Geographically, the prospects for increased tanker rates were deemed lower this time by respondents in Asia (down from 33% to 31%) and in North America (down by 23 percentage points to 24%), but higher in Europe, up from 36% to 40%.

In the dry bulk sector, meanwhile, there was a 10 percentage-point fall, from the highest figure in the life of the survey three months ago to 40% this time, in the overall numbers of those anticipating rate increases. All the indicators were down – in the case of owners from 50% to 43%, managers (52% to 36%), charterers (60% to 48%), and brokers (44% to 32%).

It was the same story from a geographical perspective. In Asia, expectations of higher dry bulk rates fell from 52% to 33%, in Europe from 51% to 44%, and in North America from 65% to 35%. One respondent said, “The dry bulk market is in crisis and will remain so in the small-to-medium size sectors for at least two more years due to overbuilding.”

Another noted, “The dry bulk market is structurally unhealthy due to the massive overbuilding of vessels.” Others were more optimistic however, with one claiming to be hopeful that dry bulk rates will soon improve due to an improved balance between supply and demand.

In the container ship market, there was an eight percentage-point fall, to 26%, in the overall numbers expecting rates to go up. Indeed, expectation levels in relation to rate increases were down across all categories of respondent, most notably in the case of brokers (by 25 percentage points to 19%). Meanwhile, 26% of owners (compared to 36% last time), 28% of managers (down 5 percentage points on last time), and 38% of charterers (down from 47% last time) expected container ship rates to rise in the next twelve months.

Geographically, expectations of improved container ship rates were unchanged in Asia at 24%, just one percentage point up on the numbers in that part of the world who are expecting container ship rates to go down over the next twelve months. The numbers anticipating higher rates were also down in Europe, from 38% to 29%. In North America, meanwhile, the 39% of respondents expecting container ships rates to fall over the coming year  was more than double the number (17%) who though they would increase.

One respondent said, “In the container ship sector, the long-haul market sentiment is very bleak, with continued deliveries of mega tonnage and ongoing weak demand in the main western trades.” Another claimed, “The container ship fleet will grow by eleven% this year. Everybody seems to think that ever bigger ships are beautiful.”

Moore Stephens shipping partner, Richard Greiner, says, “For the third successive quarter, we have seen a small increase in confidence. This encourages the belief that we are witnessing the start of a sustainable recovery, although some difficult issues remain to be resolved.

“Despite increased scrapping, it is clear that there are still too many ships on the market. For as long as that situation persists, the freight markets will struggle to bounce back. Although the tanker market is looking healthier than it has for some time, the dry bulk trades in particular seem to be suffering from an over-supply of tonnage.

“Owners’ appetite for new vessels has not, it seems, been terminally affected by five very difficult years for the shipping industry. Some reports suggest that current newbuilding business is almost one thousand% up on last year, with Greek owners alone having reportedly ordered almost twice as many ships in the first four months of 2013 as they did in the corresponding period last year. This is not a complete surprise.

Our survey revealed evidence of an increased enthusiasm for investment, and the history of shipping confirms that it is an industry which is not reluctant to spend money.

“Increased newbuilding activity is also somewhat inevitable, not least because of the strong state support which governments in the Far East are providing to their strategically important shipbuilding industries. Neither is it a bad thing. Every industry needs new investment to survive, and if that is coupled with regulatory and environmental compliance – for example, in the shape of eco-friendly ships – then so much the better.

“If pulling the plug on newbuilding activity is not the way to resolve shipping’s problems, the answer must lie with addressing the issues which seem to militate against solutions built on new investment. We need more scrapping, for example, and fewer proposals such as the one currently before the European Parliament to ban the beaching of vessels for demolition. We need a more innovative approach to securing finance, embracing everything from bond financing to leasing, as well as the ability to convince potential investors of the credibility of business plans.

“We need a more concerted focus on risk management, which is not as well developed in shipping as it is in many other industries. And we need early identification of the need for restructuring, and awareness of the options available in that connection.

“Shipping is in reasonably good shape, given the problems it is facing. Indeed, it is difficult to think of another industry which is so capital-intensive in nature, so reliant on skilled personnel, and so heavily impacted by competition, politics, risk, protectionism, and regulation, yet able to remain optimistic in the teeth of a global financial downturn. Three months is a long time in shipping, but it is to be hoped that our next survey will complete a full twelve months of improving confidence. Shipping is an industry in which long-term investments have tended to bring long-term rewards. As such, it is worthy of a long-term outlook.”

On 12th June 2013, AET confirmed its leadership position in US Gulf lightering by performing its 10,000th fully serviced lightering operation. Using its own personnel, equipment and lightering support vessel, AET successfully transferred 547,000 bbls of crude oil from Tankers International LLC’s V.K. Eddie, a VLCC, into one of its own Aframax tankers, Eagle Kinabalu, for SeaRiver Maritime.

Commenting on the achievement, AET President … Read More…]]>

On 12th June 2013, AET confirmed its leadership position in US Gulf lightering by performing its 10,000^th fully serviced lightering operation. Using its own personnel, equipment and lightering support vessel, AET successfully transferred 547,000 bbls of crude oil from Tankers International LLC’s V.K. Eddie, a VLCC, into one of its own Aframax tankers, Eagle Kinabalu, for SeaRiver Maritime.

Commenting on the achievement, AET President & CEO, Hor Weng Yew said: “AET is the market leader in US Gulf lightering and we perform around 700 operations each year. Today is a milestone for our company and demonstrates our expertise in this highly specialised sector.

“This achievement would not have been possible without the continued support, trust and guidance from our customers and business partners, and I would like to express my deepest gratitude. In today’s market, it is important to remain flexible with the capability to deliver value-added services which is why we place such an emphasis on specialist activities such as lightering and dynamic positioning. Our offshore operation also has an excellent safety record.

“Our company is continuing to grow and expand its capabilities. We are now performing lightering operations off the coast of Uruguay and we have long terms contracts in place to deliver dynamic positioning shuttle tanker services in the Brazilian Basin and in the Barents Sea.”

AET began US Gulf lightering in 1994 with three Aframax tankers, three mooring masters and a support staff of just six people. Today, the company operates over 30 vessels in this region and employs 16 mooring masters and over 100 support staff working from its newly built shore facility at Galveston, Texas. In 2011 and 2012, AET invested in a fleet of four purpose designed and built lightering support vessels (the first in the world) to give added flexibility and enhanced levels of safety to its offshore operations.