London: The Baltic Exchange reports that the Capesize market has seen a resurgence this week. Renewed interest on the period market has seen modern 177,000 dwt tonnage fixing for a year at $17,500 daily.
In Asia reports of Chinese buying spot iron ore from Australia for December shipments and resulting enquiry has seen the West Australia rate rise from about $4.35 to in excess of $5.50 by the week's end which is approximately $11,000 daily for the round voyage, says the Baltic. But for Panamaxes the Far East has endured a miserable week, the Exchange reports. A modern 76,000 dwt, open Japan, agreed $3,000 daily for a round via Australia and a mid 90's built 70,000 dwt in south China fixed a trip Indonesia to Korea at $2,500 daily. India, however, has been busy, including a 72,000 dwt obtaining $6,000 daily from Muscat for a trip India/China. Period trading has given some encouragement with rates reflecting a marked premium over the spot trip market, including a grain house booking a modern 72,000 dwt, open Continent end December, for a year at $10,750 daily. In the Handy/Supramax market East of Suez it was still the Indian ore markets that were providing the bulk of the business, with rates remaining at least steady, according to the baltic Exchange. It was becoming apparent that tonnage open further east with little to go for was now being attracted back into the Indian Ocean. The 2005 built 53,702 dwt Sapphire Seas was reported to have been booked by AHT with retroactive delivery Rizhao 5 December for a trip via West Coast India back to China at $3,300 daily. Earlier in the week, the 2005 built 55,695 dwt POS Freedom open Dalien spot was reported booked for a Pacific round voyage at a relatively respectable $5,000 daily.
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Saturday, December 13, 2008
COSCO Group CEO sees shipping recovering in 2009
The downturn in the shipping sector will not last for long, the Chief Executive of Chinese giant COSCO has said, expressing hope that demand would rebound in the first half of next year.
Global shipping, facing its worst crisis in decades, has seen dry cargo rates dive more than 90 percent after a five-year boom. But COSCO said that investors need to replace panic with confidence to help the sector recover. ‘The financial tsunami affects real shipping demand. Shipping is diving due to the panic of investors ...but the diver has to come up eventually, COSCO CEO Wei Jiafu said during a recent visit to Greece to sign a deal to operate container services at the country’s largest port. “The downturn in the shipping sector will not last for several years ... I hope in the first half of next year shipping demand will be back.’ COSCO Pacific said last month it would cut capital spending in the fourth quarter and in 2009 to strengthen its balance sheet amid the global crisis. Mr Wei did not say if the company would cut investments to mitigate the effects of the crisis.
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Global shipping, facing its worst crisis in decades, has seen dry cargo rates dive more than 90 percent after a five-year boom. But COSCO said that investors need to replace panic with confidence to help the sector recover. ‘The financial tsunami affects real shipping demand. Shipping is diving due to the panic of investors ...but the diver has to come up eventually, COSCO CEO Wei Jiafu said during a recent visit to Greece to sign a deal to operate container services at the country’s largest port. “The downturn in the shipping sector will not last for several years ... I hope in the first half of next year shipping demand will be back.’ COSCO Pacific said last month it would cut capital spending in the fourth quarter and in 2009 to strengthen its balance sheet amid the global crisis. Mr Wei did not say if the company would cut investments to mitigate the effects of the crisis.
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Petro Andina bags four blocks in Colombia
Calgary-based Petro Andina Resources was the successful bidder for the right to negotiate for exploration and production contracts on four exploration blocks in the Republic of Colombia at the Colombia Mini Round 2008.
The results were posted on the Colombian Hydrocarbons Agency (ANH) website. Petro Andina and partner, Columbus Energy were awarded blocks LLA-16, LLA-20, LLA-29 and LLA-30 in the prolific Llanos basin. Under the terms of the Mini Round 2008, bidders committed to a minimum work programme proscribed for each block and then bid a supplemental work program plus an "X-Factor" or additional royalty. Petro Andina will be operator of record of the blocks with a 50% working interest. The four blocks cover an area of about 495,000 gross acres, and each have exploration periods of six years made up of two, three-year phases. The first exploration phase will involve the acquisition of three dimensional (3D) seismic data and the drilling of exploration wells by Petro Andina and Columbus. The total net cost to Petro Andina to complete this exploratory work is around $46 million. In addition to the work commitments, Petro Andina and Columbus bid an X-factor of one percent (equivalent to a one percent royalty) to the ANH. Blocks 16 and 20 surround an existing 50 million barrel oilfield, discovered in 1974. The blocks currently have about 1300 kilometres of existing two-dimensional (2D) seismic data which show several promising leads. Blocks 29 and 30 are on trend with the Oropendola block which is owned 100% and operated by Columbus. Collectively, these blocks have about 650 kilometres of existing 2D seismic data and evaluation of the blocks was conducted with the benefit of 3D seismic and well information from the adjacent Columbus lands. The blocks will be subjectto standard ANH contracts and Petro Andina anticipates signing the contracts in the first quarter of the coming year, pending final approval of the Directive Counsel of the ANH.
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The results were posted on the Colombian Hydrocarbons Agency (ANH) website. Petro Andina and partner, Columbus Energy were awarded blocks LLA-16, LLA-20, LLA-29 and LLA-30 in the prolific Llanos basin. Under the terms of the Mini Round 2008, bidders committed to a minimum work programme proscribed for each block and then bid a supplemental work program plus an "X-Factor" or additional royalty. Petro Andina will be operator of record of the blocks with a 50% working interest. The four blocks cover an area of about 495,000 gross acres, and each have exploration periods of six years made up of two, three-year phases. The first exploration phase will involve the acquisition of three dimensional (3D) seismic data and the drilling of exploration wells by Petro Andina and Columbus. The total net cost to Petro Andina to complete this exploratory work is around $46 million. In addition to the work commitments, Petro Andina and Columbus bid an X-factor of one percent (equivalent to a one percent royalty) to the ANH. Blocks 16 and 20 surround an existing 50 million barrel oilfield, discovered in 1974. The blocks currently have about 1300 kilometres of existing two-dimensional (2D) seismic data which show several promising leads. Blocks 29 and 30 are on trend with the Oropendola block which is owned 100% and operated by Columbus. Collectively, these blocks have about 650 kilometres of existing 2D seismic data and evaluation of the blocks was conducted with the benefit of 3D seismic and well information from the adjacent Columbus lands. The blocks will be subjectto standard ANH contracts and Petro Andina anticipates signing the contracts in the first quarter of the coming year, pending final approval of the Directive Counsel of the ANH.
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Piracy latest: UN approached to allow pirate hunters into Somalia
New York: The US has requested international authorisation for countries pursuing Somali pirates to hunt them down on land, writes the Guardian.
A draft resolution that would permit states fighting piracy to ‘take all necessary measures ashore in Somalia, including in its airspace" has been circulated to members of the UN security council. Prior consent for raids would be required from Somalia's fractured government. The resolution, to be discussed at a security council meeting on Tuesday, highlights concerns that naval patrols alone will not deter gangs from terrorising the busy shipping route. Two Yemeni fishing boats were reported yesterday to have been hijacked, adding to the dozen captured off Somalia since October 24, when Nato sent four warships to the region. Villages and towns along Somalia's north-eastern coast give sanctuary and logistical support to gangs holding at least 14 ships, including the captured VLCC Sirius Star. In April French special forces apprehended pirates on Somali soil as they tried to escape with a ransom after releasing a French yacht. But the suggestion of an official policy allowing similar missions has left some countries concerned about breaches of international law. At a UN-sponsored conference on piracy in Kenya yesterday, delegates from more than 40 countries were grappling with the legal aspects of an earlier security council resolution that allows navies to use "all necessary means to suppress piracy" in the waters around Somalia. The perils of adopting such measures were illustrated when the Indian navy destroyed what it thought was a pirate ship, only to learn that it was a captured Thai fishing vessel whose crew was still on board.
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A draft resolution that would permit states fighting piracy to ‘take all necessary measures ashore in Somalia, including in its airspace" has been circulated to members of the UN security council. Prior consent for raids would be required from Somalia's fractured government. The resolution, to be discussed at a security council meeting on Tuesday, highlights concerns that naval patrols alone will not deter gangs from terrorising the busy shipping route. Two Yemeni fishing boats were reported yesterday to have been hijacked, adding to the dozen captured off Somalia since October 24, when Nato sent four warships to the region. Villages and towns along Somalia's north-eastern coast give sanctuary and logistical support to gangs holding at least 14 ships, including the captured VLCC Sirius Star. In April French special forces apprehended pirates on Somali soil as they tried to escape with a ransom after releasing a French yacht. But the suggestion of an official policy allowing similar missions has left some countries concerned about breaches of international law. At a UN-sponsored conference on piracy in Kenya yesterday, delegates from more than 40 countries were grappling with the legal aspects of an earlier security council resolution that allows navies to use "all necessary means to suppress piracy" in the waters around Somalia. The perils of adopting such measures were illustrated when the Indian navy destroyed what it thought was a pirate ship, only to learn that it was a captured Thai fishing vessel whose crew was still on board.
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Chinese fuel oil demand boosts East Aframax rates
Rising winter demand for fuel oil from China has pushed up Worldscale rates on the Singapore-China and Indonesia-Japan routes by w30 points over the last two days.
Close to seven Aframaxes have been fixed on Singapore-China voyages to move fuel oil, sources said Friday, adding that a few more vessels could have been done by charterers through private negotiations. The latest fixture heard was ST Shipping placing the Ambrosia on subjects for a Singapore-North China voyage, loading December 16 at w170. Other traders such as Vitol, Koch, Cargil, Conoco and Mercuria are reported to have moved fuel oil into China. One shipowner said that oil majors like Chevron and BP have also moved fuel oil to China. Platts assessed the Indo-Japan rate at w165 on Thursday, which is the same for Singapore-China. The Aframax segment is busy on regional activity, especially for moving fuel oil into China, a Singapore-based charterer said. "A lot [of fuel oil] is moving in to China. It seems like all the tea pot refineries have started up," a shipping source said. In Singapore, demand for fuel oil from Chinese buyers emerged several weeks ago after fuel oil values tumbled to close to a four-year low, market participants said. Platts had assessed the utility 180 CST high sulfur fuel oil at $214.58/mt, while the bunker grade 380 CST high sulfur fuel oil stood at $204.28/mt on November 24, 2008. Both grades were assessed around these levels last in February 2005. The Chinese, who are price sensitive and typically buy fuel oil directly from the Middle East or the US Gulf Coast, are buying fuel oil from Singapore ahead of the North Asian winter and after running down their fuel oil stocks in the last few months. The Aframax rates out of the Indonesian region were also boosted by Japanese charterers Cosmo Oil and NGT fixing close to four Aframaxes on the Indo-Japan route.
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Close to seven Aframaxes have been fixed on Singapore-China voyages to move fuel oil, sources said Friday, adding that a few more vessels could have been done by charterers through private negotiations. The latest fixture heard was ST Shipping placing the Ambrosia on subjects for a Singapore-North China voyage, loading December 16 at w170. Other traders such as Vitol, Koch, Cargil, Conoco and Mercuria are reported to have moved fuel oil into China. One shipowner said that oil majors like Chevron and BP have also moved fuel oil to China. Platts assessed the Indo-Japan rate at w165 on Thursday, which is the same for Singapore-China. The Aframax segment is busy on regional activity, especially for moving fuel oil into China, a Singapore-based charterer said. "A lot [of fuel oil] is moving in to China. It seems like all the tea pot refineries have started up," a shipping source said. In Singapore, demand for fuel oil from Chinese buyers emerged several weeks ago after fuel oil values tumbled to close to a four-year low, market participants said. Platts had assessed the utility 180 CST high sulfur fuel oil at $214.58/mt, while the bunker grade 380 CST high sulfur fuel oil stood at $204.28/mt on November 24, 2008. Both grades were assessed around these levels last in February 2005. The Chinese, who are price sensitive and typically buy fuel oil directly from the Middle East or the US Gulf Coast, are buying fuel oil from Singapore ahead of the North Asian winter and after running down their fuel oil stocks in the last few months. The Aframax rates out of the Indonesian region were also boosted by Japanese charterers Cosmo Oil and NGT fixing close to four Aframaxes on the Indo-Japan route.
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Bluefin tuna wild catch sets new record
Southern Hemisphere bluefin tuna stocks are in good shape, according to Australian fishing industry and aquaculture pioneer, Mr Hagen Stehr.
The Chairman of listed aquaculture company Clean Seas Tuna said his tuna fishing fleet has had its best seasonal start ever, catching about two-thirds of its quota in the first two days of the southern bluefin tuna (SBT) fishing season. “Our fleet is already on its way back to Port Lincoln from the Continental Shelf with about 200 tonnes of live SBT in tow, a journey which will take the fleet about 14 days to complete,” Mr Stehr said. ‘Our skippers also report that the catch comprises larger than average fish of excellent quality. ‘This is the best result I have seen in almost 40 years of fishing in these waters and is a credit to our industry and its respect for – and strict adherence to – the SBT wild catch quota.’Australia’s tuna quota stands at 5,265 tonnes a year, with fish caught under the quota grown out in the fresh cold waters of Boston Bay and Arno Bay, off South Australia’s Eyre Peninsula to approximately 10,000 tonnes for export to Asia and Europe.
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The Chairman of listed aquaculture company Clean Seas Tuna said his tuna fishing fleet has had its best seasonal start ever, catching about two-thirds of its quota in the first two days of the southern bluefin tuna (SBT) fishing season. “Our fleet is already on its way back to Port Lincoln from the Continental Shelf with about 200 tonnes of live SBT in tow, a journey which will take the fleet about 14 days to complete,” Mr Stehr said. ‘Our skippers also report that the catch comprises larger than average fish of excellent quality. ‘This is the best result I have seen in almost 40 years of fishing in these waters and is a credit to our industry and its respect for – and strict adherence to – the SBT wild catch quota.’Australia’s tuna quota stands at 5,265 tonnes a year, with fish caught under the quota grown out in the fresh cold waters of Boston Bay and Arno Bay, off South Australia’s Eyre Peninsula to approximately 10,000 tonnes for export to Asia and Europe.
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