Just when everybody thought that the dry bulk market had stabilized a new plunge this week has brought freight rates to their lowest in almost 22 years, as demand for raw materials in China and other key countries continued to fall, mainly due to the global economic crisis.
The Baltic Dry Index fell to 762 points down 5.1 per cent on the day and the lowest level since January 1987. The index has fallen 93.5 per cent since its all-time high of 11,793 points in May. It’s clear that with freight rates so low, most vessels are losing money nowadays, while ship owners are forced to finance their operations even from their own pockets (public companies excluded), with banks still not keen on opening their credit lines. Fearnley’s report yesterday described the previous seven days in the market with words like “quiet week”. In the once famous capesize sector, comprised of bulkers over 150,000-dwt, the market took a turn for the worse, with a modern Caper being fixex at $1,000 for a Transatlantic round voyage and a similar unit fixing usd 5,750 for a front haul with a ballast bonus that does not cover the ballast costs, reported Fearnley’s. The broker also said that “in the Pacific, India has seized the opportunity to sell some ore and several fixtures have been reported. On steam coal, Korea is the only light we see with MoM volumes up by over 13%, though this only benefits the smaller Capesize vessels due to port restrictions at discharge port”. In the panamax segment, which had led the modest gains during the previous weeks, things don’t look rosy either. Things aren’t that different in the supramax market, where period chartering activity remains in the low teens for one year with charterers seeking tonnage willing optional years but it is tough to find owners on such terms at present. With conditions far from optimistic, owners are actively looking to weather the storm, which could take more than six months to rebound, at least in a sustainable way.
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Thursday, November 27, 2008
K-Line announces delivery of 154,800m3 LNG Carrier
A consortium comprising Kawasaki Kisen Kaisha, Ltd. (‘K’ Line) and P.T. Meratus Line (**) is pleased to announce the successful delivery of a brand new 154,800m3 Liquefied Natural Gas (LNG) Carrier, ‘TANGGUH FOJA’, constructed at Samsung Heavy Industries, Co., Ltd. in Korea.
The vessel will be chartered to the TANGGUH LNG operated by BP soon after her delivery as the first in a series of 3 vessels under ‘K’ Line operation. ‘K’ Line Ship Management Co., Ltd. will be responsible for the management of ‘TANGGUH FOJA’. This latest delivery will result in bringing the number of vessels in ‘K’ Line Group’s LNG carrier fleet to a total of 43. In 2005, ‘K’ Line and its Indonesian consortium partner, P.T. Meratus Line, were successfully awarded Time Charter Contracts for three vessels in a bidding process to procure seven LNG carriers by the TANGGUH LNG, with “TANGGUH FOJA” having the honor of being the first one of the seven. These newly-built vessels incorporate the most modern Dual Fuel Diesel Electric (DFDE) Engines, thereby achieving better fuel efficiency together with greater environmental benefits. The name of ‘FOJA’ together with ‘TANGGUH JAYA’ that will be our second vessel originate from the name of mountains in Papua, Indonesia where LNG Plant for the TANGGUH LNG is located, while the name of TANGGUH PALUNG for our third vessel comes from the mountain in Kalimantan where the first LNG plant in Indonesia was established. TANGGUH JAYA and TANGGUH PALUNG are scheduled for delivery at the end of this year and first quarter of 2009, respectively. ‘K’ Line is committed to maximizing the utilization of Indonesian crew onboard those 3 TANGGUH vessels. In keeping with a policy of always giving first priority to safety in its services, ‘K’ Line will continue committing itself to contributing to the expansion of energy transportation business.
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The vessel will be chartered to the TANGGUH LNG operated by BP soon after her delivery as the first in a series of 3 vessels under ‘K’ Line operation. ‘K’ Line Ship Management Co., Ltd. will be responsible for the management of ‘TANGGUH FOJA’. This latest delivery will result in bringing the number of vessels in ‘K’ Line Group’s LNG carrier fleet to a total of 43. In 2005, ‘K’ Line and its Indonesian consortium partner, P.T. Meratus Line, were successfully awarded Time Charter Contracts for three vessels in a bidding process to procure seven LNG carriers by the TANGGUH LNG, with “TANGGUH FOJA” having the honor of being the first one of the seven. These newly-built vessels incorporate the most modern Dual Fuel Diesel Electric (DFDE) Engines, thereby achieving better fuel efficiency together with greater environmental benefits. The name of ‘FOJA’ together with ‘TANGGUH JAYA’ that will be our second vessel originate from the name of mountains in Papua, Indonesia where LNG Plant for the TANGGUH LNG is located, while the name of TANGGUH PALUNG for our third vessel comes from the mountain in Kalimantan where the first LNG plant in Indonesia was established. TANGGUH JAYA and TANGGUH PALUNG are scheduled for delivery at the end of this year and first quarter of 2009, respectively. ‘K’ Line is committed to maximizing the utilization of Indonesian crew onboard those 3 TANGGUH vessels. In keeping with a policy of always giving first priority to safety in its services, ‘K’ Line will continue committing itself to contributing to the expansion of energy transportation business.
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Fiomarine Sells Buoys to US Navy
The United States Navy received a second major shipment of Fiobuoys, made by Fiomarine, a small company based in Tasmania, Australia.
The shipments are part of a two-year supply contract. The contract represents a 340 per cent sales growth for Fiomarine in less than three years. The order for its Fiobuoy underwater retrieval system is Fiomarine’s largest to date, and makes the U.S. the chief user of the technology. Fiomarine is now pursuing other U.S. markets, beginning with an exhibition at the International Workboat Show in New Orleans in December. Fiomarine is one of only a few Australian companies that supplies directly to the U.S. Defense Department. “The Australian Defence Force (ADF) has been using Fiobuoys for ten years, so it was only a matter of time,” said Fiomarine Commercial Director John Fiotakis. Mr. Fiotakis invented the submersible marine marker buoy and retrieval system in the 1980s when his boat’s motors were caught in a number of crayfish pot lines. The idea of keeping everything hidden underwater was quickly recognized by the ADF as an invaluable tool in defense operations. The Fiobuoy is a buoy that remains submerged underwater while tethered to equipment or assets. To retrieve that equipment, a signal is sent to the buoy to release itself and complete its marking function on the surface. It is currently used by the Navies of Australia, U.S., Singapore and Japan, and in support of marine research and hydrographic operations around the world. Fiomarine is exhibiting as part of Maritime Tasmania at Booth 3327 at International Workboat.
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The shipments are part of a two-year supply contract. The contract represents a 340 per cent sales growth for Fiomarine in less than three years. The order for its Fiobuoy underwater retrieval system is Fiomarine’s largest to date, and makes the U.S. the chief user of the technology. Fiomarine is now pursuing other U.S. markets, beginning with an exhibition at the International Workboat Show in New Orleans in December. Fiomarine is one of only a few Australian companies that supplies directly to the U.S. Defense Department. “The Australian Defence Force (ADF) has been using Fiobuoys for ten years, so it was only a matter of time,” said Fiomarine Commercial Director John Fiotakis. Mr. Fiotakis invented the submersible marine marker buoy and retrieval system in the 1980s when his boat’s motors were caught in a number of crayfish pot lines. The idea of keeping everything hidden underwater was quickly recognized by the ADF as an invaluable tool in defense operations. The Fiobuoy is a buoy that remains submerged underwater while tethered to equipment or assets. To retrieve that equipment, a signal is sent to the buoy to release itself and complete its marking function on the surface. It is currently used by the Navies of Australia, U.S., Singapore and Japan, and in support of marine research and hydrographic operations around the world. Fiomarine is exhibiting as part of Maritime Tasmania at Booth 3327 at International Workboat.
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NASSCO lays keel for 'Sunshine State' product carrier
USA: NASSCO, has held a keel laying ceremony for its third product carrier.
The ship is being built for US Shipping Partners and is scheduled to be delivered in the fourth quarter of 2009. NASSCO began construction of the ship in July. It will be 182.8-metres-long and have a cargo capacity of 331,000 barrels. The ship will be used in coastal trade, carrying petroleum and chemical products. US Shipping Partners previously announced that the ship would be named ‘Sunshine State’, the state nickname of Florida. ‘Sunshine State’ will be part of the "State" class of product carriers, all of which are named after state nicknames. The previous two ships are ‘Golden State’ and ‘Pelican State’, named in honour of California and Louisiana, respectively.
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The ship is being built for US Shipping Partners and is scheduled to be delivered in the fourth quarter of 2009. NASSCO began construction of the ship in July. It will be 182.8-metres-long and have a cargo capacity of 331,000 barrels. The ship will be used in coastal trade, carrying petroleum and chemical products. US Shipping Partners previously announced that the ship would be named ‘Sunshine State’, the state nickname of Florida. ‘Sunshine State’ will be part of the "State" class of product carriers, all of which are named after state nicknames. The previous two ships are ‘Golden State’ and ‘Pelican State’, named in honour of California and Louisiana, respectively.
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Contractors re-think newbuild orders
Keppel Offshore & Marine has received indications from Seadrill, Scorpion Offshore and Lewek Shipping that they are reviewing their options on newbuilding contracts that were signed in the middle of this year.
The contracts under review are for a semisubmersible for Scorpion Offshore, two jack-up rigs for Seadrill and a multi-functional support vessel for Lewek Shipping. Keppel is in talks with them to arrive at mutually acceptable arrangements for these contracts, said the company in a statement. Construction work has not started on these projects, but down payments have been received. “If these contracts are cancelled, the cancellations are not expected to have any material impact on the net tangible assets or earnings per share of Keppel Corporation for the financial year ending 31 December 2008,” said Keppel.
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The contracts under review are for a semisubmersible for Scorpion Offshore, two jack-up rigs for Seadrill and a multi-functional support vessel for Lewek Shipping. Keppel is in talks with them to arrive at mutually acceptable arrangements for these contracts, said the company in a statement. Construction work has not started on these projects, but down payments have been received. “If these contracts are cancelled, the cancellations are not expected to have any material impact on the net tangible assets or earnings per share of Keppel Corporation for the financial year ending 31 December 2008,” said Keppel.
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