London: The strength of most shipping markets in the months ahead will depend on demand - for iron ore, coal and other raw materials in China and India.
However, the liquid petroleum gas (LPG) business is based on different fundamentals, with its core business closely associated with supply, as well as demand - liquid petroleum gas is a by-product of crude oil production, refining and gas processing. In a recent report, Clarkson describes the LPG business as a "mysterious segment" of shipping. Its owners - in contrast to many others - have not been enjoying super-profits carrying some of the world's most basic cargoes, as in the dry bulk market; instead, they have been shipping some of the most sophisticated products, at temperatures as low as minus 100° C, and at modest returns. There are only 1,100 LPG tankers in total, according to Clarkson statistics, and half of them are small vessels of less than 5,000 metres_ and the fleet of very large gas carriers (VLGCs) comprising just 120 vessels. The sector demonstrated only modest growth of less than 4% p.a. in the years leading up to 2000. However, with renewed interest in LNG production, providing associated gases as by-products, there has been a spell of new investment in LPG carriers and a significant volume of tonnage is now being delivered.
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Tuesday, September 9, 2008
Japan's Idemitsu eyes doubling oil exports
Idemitsu Kosan Co Japan's No. 3 oil refiner, said on Monday it aimed to roughly double its oil product exports in the next few years to compensate for declining domestic demand.
The firm's annual oil exports are likely to hit 2 to 3 million kilolitres (12.6-18.9 million barrels, or about 35,000-52,000 barrels per day) in the "next two or three years," Seiji Fukunaga, Idemitsu director and general manager of the petroleum and coal marketing department, told Reuters. Idemitsu now forecasts oil exports of 1.5 million kl for the year ending in March, up from 1 million kl the year before."In the future, there is a possibility that exports may reach 5 to 6 million kl," he told reporters. Japanese refiners have been ramping up exports of gas oil and jet fuel amid a steady drop in domestic oil demand as the population peaks and the shift to electricity, gas and more fuel-efficient cars and machinery accelerates. Domestic oil sales fell 2.4 percent in the year ended March, and government data showed last month that Japan's oil demand fell to its lowest in 19 years for the month of July as surging oil prices hit gasoline and kerosene use hard. ID:nT86036]. Fukunaga also said Idemitsu was looking to export more products including gasoline to Mexico and other countries possibly on a term basis, after announcing last week its first term contract to sell 200,000 kl per year of diesel to the Central American nation. Idemitsu is set to increase its oil export capacity to 3 million kl per year by the end of this month, triple the capacity of a year ago.
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The firm's annual oil exports are likely to hit 2 to 3 million kilolitres (12.6-18.9 million barrels, or about 35,000-52,000 barrels per day) in the "next two or three years," Seiji Fukunaga, Idemitsu director and general manager of the petroleum and coal marketing department, told Reuters. Idemitsu now forecasts oil exports of 1.5 million kl for the year ending in March, up from 1 million kl the year before."In the future, there is a possibility that exports may reach 5 to 6 million kl," he told reporters. Japanese refiners have been ramping up exports of gas oil and jet fuel amid a steady drop in domestic oil demand as the population peaks and the shift to electricity, gas and more fuel-efficient cars and machinery accelerates. Domestic oil sales fell 2.4 percent in the year ended March, and government data showed last month that Japan's oil demand fell to its lowest in 19 years for the month of July as surging oil prices hit gasoline and kerosene use hard. ID:nT86036]. Fukunaga also said Idemitsu was looking to export more products including gasoline to Mexico and other countries possibly on a term basis, after announcing last week its first term contract to sell 200,000 kl per year of diesel to the Central American nation. Idemitsu is set to increase its oil export capacity to 3 million kl per year by the end of this month, triple the capacity of a year ago.
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USCG Issues Marine Safety Alert
The Coast Guard strongly reminds the towing industry of its responsibility to properly man their vessels with adequate numbers of qualified and licensed crewmembers.
Recently, a collision on the Mississippi river near downtown New Orleans between a Cargo Ship and a loaded oil barge being pushed by an Uninspected Towing Vessel (UTV) resulted in a major oil spill, significant environmental damage, a costly oil spill cleanup response, closed “The River” for six straight days, and caused significant economic loss to the local Louisiana economy. The Commander, Eighth Coast Guard District, convened a formal investigation into the incident. While the investigation continues, the preliminary findings of this inquiry have revealed that the tug was operated solely by an individual who held a Coast Guard Apprentice Mate (Steersman) license and who was not authorized to independently direct its movement. An apprentice is strictly prohibited from operating a towing vessel unless in the presence of a properly licensed Master or Mate (Pilot). Failure to properly man a vessel may result in significant penalties and fines, not to mention other, possibly more significant and costly civil litigation. Possible enforcement actions include issuing civil penalties, taking mariners who hold a Coast Guard issued credential (e.g. a license or merchant mariner's document) to a suspension and revocation hearing in order to suspend or revoke that credential, and/or refer a violation to the United States Attorney for criminal prosecution. The Coast Guard may also shut down the operation of vessel or facility, or prohibit a vessel from entering a particular port or place until such time a specific violation is corrected.
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Recently, a collision on the Mississippi river near downtown New Orleans between a Cargo Ship and a loaded oil barge being pushed by an Uninspected Towing Vessel (UTV) resulted in a major oil spill, significant environmental damage, a costly oil spill cleanup response, closed “The River” for six straight days, and caused significant economic loss to the local Louisiana economy. The Commander, Eighth Coast Guard District, convened a formal investigation into the incident. While the investigation continues, the preliminary findings of this inquiry have revealed that the tug was operated solely by an individual who held a Coast Guard Apprentice Mate (Steersman) license and who was not authorized to independently direct its movement. An apprentice is strictly prohibited from operating a towing vessel unless in the presence of a properly licensed Master or Mate (Pilot). Failure to properly man a vessel may result in significant penalties and fines, not to mention other, possibly more significant and costly civil litigation. Possible enforcement actions include issuing civil penalties, taking mariners who hold a Coast Guard issued credential (e.g. a license or merchant mariner's document) to a suspension and revocation hearing in order to suspend or revoke that credential, and/or refer a violation to the United States Attorney for criminal prosecution. The Coast Guard may also shut down the operation of vessel or facility, or prohibit a vessel from entering a particular port or place until such time a specific violation is corrected.
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Capsize iron ore rates dip in absence of spot cargoes
Platts reported that capsize spot iron ore freight rates took a further dip last week in the absence of spot cargoes.
Having survived the traditionally slack summer months with freight rates at historically high levels, ship owners are seeing rates come under some downward pressure at a time of year when the market normally makes its seasonal upturn, heading into the fourth quarter. However, since the middle of August 2008, the market has remained somewhat lackluster, against a background of softening steel prices around the world. Most of the erosion has been in the Atlantic market, where the key Brazil or China iron ore route has been fixed at under USD 70 per tonne.STX Pan Ocean reportedly fixed a 160,000 tonnes iron ore stem from Tubarao to Qingdao at USD 68 per tonne, loading September 20th 2008 at USD 68 per tonne on the 2006 built Cape Med. The same charterer also fixed a 160,000 tonnes cargo on the same route, also September 20th 2008 loading, at USD 70 per tonne with an undisclosed ship owner.But some brokers said that the USD 70 per tonne fixture was not concluded and ended up being refixed at the lower rate. This is down from previous comparable business concluded at USD 72 per tonne on August 22nd 2008.On the Western Australia to China iron ore route rates have also slipped slightly. STX Pan Ocean reportedly fixed a 145,000 tonnes cargo from Port Hedland to Qingdao at USD 27.50 per tonne for a September 15th 2008 loading on the 1999 built C Koreana. This is down from previous comparable business of around USD 29 to USD 31 per tonne, but basis the more standard 160,000 tonnes cargo size.Meanwhile, a backhaul Western Australia to Northern Europe iron ore fixture of 160,000 tonnes was heard at USD 37.50 per tonne, which is down by around USD 10 to USD 12 per tonne over previous comparable business.
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Having survived the traditionally slack summer months with freight rates at historically high levels, ship owners are seeing rates come under some downward pressure at a time of year when the market normally makes its seasonal upturn, heading into the fourth quarter. However, since the middle of August 2008, the market has remained somewhat lackluster, against a background of softening steel prices around the world. Most of the erosion has been in the Atlantic market, where the key Brazil or China iron ore route has been fixed at under USD 70 per tonne.STX Pan Ocean reportedly fixed a 160,000 tonnes iron ore stem from Tubarao to Qingdao at USD 68 per tonne, loading September 20th 2008 at USD 68 per tonne on the 2006 built Cape Med. The same charterer also fixed a 160,000 tonnes cargo on the same route, also September 20th 2008 loading, at USD 70 per tonne with an undisclosed ship owner.But some brokers said that the USD 70 per tonne fixture was not concluded and ended up being refixed at the lower rate. This is down from previous comparable business concluded at USD 72 per tonne on August 22nd 2008.On the Western Australia to China iron ore route rates have also slipped slightly. STX Pan Ocean reportedly fixed a 145,000 tonnes cargo from Port Hedland to Qingdao at USD 27.50 per tonne for a September 15th 2008 loading on the 1999 built C Koreana. This is down from previous comparable business of around USD 29 to USD 31 per tonne, but basis the more standard 160,000 tonnes cargo size.Meanwhile, a backhaul Western Australia to Northern Europe iron ore fixture of 160,000 tonnes was heard at USD 37.50 per tonne, which is down by around USD 10 to USD 12 per tonne over previous comparable business.
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New high-speed ferry for Thailand
Australia’s Incat Crowther has signed a contract for the delivery of a design and aluminium kit with Sea Crest Marine in Thailand.
This new 29-metre catamaran ferry is to be built for Lomprayah High Speed Ferries Company. This vessel will be the third Incat Crowther aluminium kit to be built by Sea Crest Marine and follows closely behind a sistership vessel already under construction for Lomprayah. Incat Crowther’s aluminium kits provide complete aluminium flat packs containing all structural aluminium for the vessels construction. All plate is pre-cut and retained within the plate by strategically placed tags allowing the plate to be transported in sheet form. All parts are individually numbered and include centerlines and waterlines for placement. All extrusions are also supplied, cut to required lengths. These aluminium packs are particularly suited to new shipyards. The new ferry will run on their main route between Chumphon, Koh Tao, Koh Phangan and Koh Samui in The Gulf of Thailand. The new high speed catamaran ferry will be capable of carrying 380 passengers at a service speed of 27 knots fully loaded. The main cabin contains seating for 210 passengers with further seating for 75 in the vessel’s upper cabin. In addition there is a further 80 exterior seats behind the upper cabin plus the sun deck. The main propulsion machinery will consist of twin Caterpillar C32 main engines each producing 1,040kW. These will be directly coupled to ZF3050 reverse / reduction gearboxes driving five-bladed fixed pitch propellers. The vessel will be built locally at Sea Crest Marine shipyard located in Samutprakarn on the outskirts of Bangkok.
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This new 29-metre catamaran ferry is to be built for Lomprayah High Speed Ferries Company. This vessel will be the third Incat Crowther aluminium kit to be built by Sea Crest Marine and follows closely behind a sistership vessel already under construction for Lomprayah. Incat Crowther’s aluminium kits provide complete aluminium flat packs containing all structural aluminium for the vessels construction. All plate is pre-cut and retained within the plate by strategically placed tags allowing the plate to be transported in sheet form. All parts are individually numbered and include centerlines and waterlines for placement. All extrusions are also supplied, cut to required lengths. These aluminium packs are particularly suited to new shipyards. The new ferry will run on their main route between Chumphon, Koh Tao, Koh Phangan and Koh Samui in The Gulf of Thailand. The new high speed catamaran ferry will be capable of carrying 380 passengers at a service speed of 27 knots fully loaded. The main cabin contains seating for 210 passengers with further seating for 75 in the vessel’s upper cabin. In addition there is a further 80 exterior seats behind the upper cabin plus the sun deck. The main propulsion machinery will consist of twin Caterpillar C32 main engines each producing 1,040kW. These will be directly coupled to ZF3050 reverse / reduction gearboxes driving five-bladed fixed pitch propellers. The vessel will be built locally at Sea Crest Marine shipyard located in Samutprakarn on the outskirts of Bangkok.
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Greatship, DOF Subsea form joint venture
Mumbai: Offshore oilfield services provider Greatship (India) Ltd. and subsea services provider DOF Subsea ASA have formed a joint venture (JV) together, signing the contract Sept. 8 in Mumbai.
The joint venture will be named Greatship DOF Subsea and focus on subsea project opportunities on the Indian subcontinent. DOF Subsea CEO Steve Brown said, "DOF Subsea is delighted to form this key joint venture with Greatship. Together with Greatship we are committed to building a substantial player in the offshore subsea projects market." Greatship Managing Director Ravi Sheth said, "We are excited about Greatship's joint venture with the world's leading subsea project company. We are very bullish on the prospects of offshore oilfield development off the East Coast of India and we expect the JV to be a leading player in the subsea construction domain." DOF Subsea is based in Bergen, Norway, and specializes in subsea operations to depths of 4,000 meters (13,123 ft). The company has a fleet which includes 25 offshore vessels and 31 remotely operated vehicle systems. Mumbai-based Greatship has six vessels operating worldwide, and 20 under construction. The company provides drilling services, offshore logistics, and offshore construction.
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The joint venture will be named Greatship DOF Subsea and focus on subsea project opportunities on the Indian subcontinent. DOF Subsea CEO Steve Brown said, "DOF Subsea is delighted to form this key joint venture with Greatship. Together with Greatship we are committed to building a substantial player in the offshore subsea projects market." Greatship Managing Director Ravi Sheth said, "We are excited about Greatship's joint venture with the world's leading subsea project company. We are very bullish on the prospects of offshore oilfield development off the East Coast of India and we expect the JV to be a leading player in the subsea construction domain." DOF Subsea is based in Bergen, Norway, and specializes in subsea operations to depths of 4,000 meters (13,123 ft). The company has a fleet which includes 25 offshore vessels and 31 remotely operated vehicle systems. Mumbai-based Greatship has six vessels operating worldwide, and 20 under construction. The company provides drilling services, offshore logistics, and offshore construction.
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