“Demand has changed; supply has changed. The future looks uncertain,” said U.C. Grover, the Mumbai-based company’s technical and offshore services director told local media. “We didn’t want to keep the tender open till eternity. It makes sense to scrap the tender now. “Unlike earlier, when the tendering process had to start from scratch, SCI now has greater freedom from government control to take a call on its own. Last year, the government granted so-called navratna status to SCI, enabling it to take quick decisions on ship purchases and other expenses without having to seek approval from the shipping ministry. The navratna status granted to select public sector enterprises, recognizing them as the most prestigious government-owned companies, allows them greater autonomy. “The advantage of this is that when the market improves, we can swing into action very quickly. As the technical specifications are frozen and known to the bidders, we can ask for price quotations and finalise the tender in a month,” Grover said. Typically, SCI takes four-five months to finalize a ship acquisition tender. The company had announced plans to buy 72 new ships with an investment of $3.1 billion in the five-year period beginning 2007.
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Wednesday, February 25, 2009
Shipping Corp of India axes expansion plans
Mumbai: State-run Shipping Corp. of India Ltd (SCI), India’s biggest shipping company by fleet size and revenue, has scrapped a tender to buy four dry bulk cargo carriers as demand for ships declines in the face of a slowdown in global trade.
Highest number of boxships idle in history
Database and information services provider Alphaliner, France, has reported that the number of containerships remaining idle has jumped 8.8 percent to 392 ships, totalling 1.1 million TEU.
These figures are the highest recorded in history and are even higher than figures from 1986 when a whole fleet of US Lines was withdrawn due to bankruptcy. At the time, US Lines owned the world’s largest containerships. Alphaliner said that after the Chinese Lunar New Year (January 26), there was no rebound in Chinese exports, as previously expected.Read More
These figures are the highest recorded in history and are even higher than figures from 1986 when a whole fleet of US Lines was withdrawn due to bankruptcy. At the time, US Lines owned the world’s largest containerships. Alphaliner said that after the Chinese Lunar New Year (January 26), there was no rebound in Chinese exports, as previously expected.
DP World maintains 2008 tariffs at Jebel Ali Port, reinstates 10 day free storage time.
Dubai, 24 February, 2009: Global marine terminal operator DP World’s UAE Region today announced that it will maintain 2008 tariff rates this year at its flagship Jebel Ali Port.
It will also revert to providing 10 days free storage time for all local importers with effect from 01 March, 2009.DP World, UAE Region had earlier planned to increase container handling fees at Jebel Ali Port and had reduced free storage time in the terminal to relieve congestion over the summer months. Mohammed Al Muallem, Senior Vice President and Managing Director, DP World’s UAE Region, said: “We have listened to our customers, who are being impacted by the global economic slowdown, and have made the decision to maintain rates at 2008 levels and extend storage times. This will give them a measure of relief as they plan for the year. "Commenting on the impact of these revisions, Dirk Van Den Bosch, Chief Commercial Officer, DP World’s UAE Region, said:“This will effectively provide traders a 100 percent saving on storage for a container that typically would have remained in the terminal for a period of 10 days. Further, maintaining our existing rates will ensure cost stability for Dubai’s traders.” These initiatives underscore DP World’s consistent trade friendly approach at Jebel Ali and affirms Dubai’s role as a leading commercial hub.
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It will also revert to providing 10 days free storage time for all local importers with effect from 01 March, 2009.DP World, UAE Region had earlier planned to increase container handling fees at Jebel Ali Port and had reduced free storage time in the terminal to relieve congestion over the summer months. Mohammed Al Muallem, Senior Vice President and Managing Director, DP World’s UAE Region, said: “We have listened to our customers, who are being impacted by the global economic slowdown, and have made the decision to maintain rates at 2008 levels and extend storage times. This will give them a measure of relief as they plan for the year. "Commenting on the impact of these revisions, Dirk Van Den Bosch, Chief Commercial Officer, DP World’s UAE Region, said:“This will effectively provide traders a 100 percent saving on storage for a container that typically would have remained in the terminal for a period of 10 days. Further, maintaining our existing rates will ensure cost stability for Dubai’s traders.” These initiatives underscore DP World’s consistent trade friendly approach at Jebel Ali and affirms Dubai’s role as a leading commercial hub.
Grande Ghana Maiden Voyage, Port of Hamburg
At the beginning of this week a ConRo vessel of the shipping company Grimaldi Lines was handled in Hamburg for the first time on its maiden voyage.
This third new addition to its regular service between Hamburg and the West African ports shows the Grimaldi company strengthening its commitment to this route. 'Our recently commissioned ConRo ships will be serving the West African ports of discharge with greater frequency. We accept all types of cargo on all vessels serving in West African transport,' said Dirk Peters of Grimaldi Germany on the occasion of the Grande Ghana's visit to the Hamburg's Unikai Multipurpose Terminal.Services offered by Grimaldi:Central Express: departures from Hamburg with six ConRo ships of the GRANDE class, now every six days. Ports of discharge are Dakar, Tema, Lagos, Abidjan and Cotonou / Lome (at 12-day alternating intervals)Southern Express: departures from Hamburg with four ConRo ships, now every eleven days. Ports of discharge are Dakar, Luanda, Douala and Pointe Noire.Read More
This third new addition to its regular service between Hamburg and the West African ports shows the Grimaldi company strengthening its commitment to this route. 'Our recently commissioned ConRo ships will be serving the West African ports of discharge with greater frequency. We accept all types of cargo on all vessels serving in West African transport,' said Dirk Peters of Grimaldi Germany on the occasion of the Grande Ghana's visit to the Hamburg's Unikai Multipurpose Terminal.Services offered by Grimaldi:Central Express: departures from Hamburg with six ConRo ships of the GRANDE class, now every six days. Ports of discharge are Dakar, Tema, Lagos, Abidjan and Cotonou / Lome (at 12-day alternating intervals)Southern Express: departures from Hamburg with four ConRo ships, now every eleven days. Ports of discharge are Dakar, Luanda, Douala and Pointe Noire.
Tsakos Energy Navigation poised for steady growth
Tsakos Energy Navigation’s (TEN) solid contract coverage in 2009 is expected to keep the tanker owner in growth mode even during this adverse financial environment, although lower earnings are to be expected.
According to Credit Suisse analysts, 61 per cent of the company’s fleet is on time charter for this year, out of which 45 per cent is for its crude tanker fleet and 75 percent for its product tanker fleet. “However contract coverage drops to about 35 percent in 2010 (27% coverage for the crude fleet and 44% for product fleet)” says Credit Suisse in a recent report, warning that a lot of ships are rolling off contracts in 2009. Out of 24 product tankers that TEN operates 10 of them or 40% are scheduled to come off charter, while another 38%, or 8 crude tankers (from a total of 21) will follow the same path this year. Credit Suisse has lowered its earnings per share estimate for 2009 to $2.50 from a previous of $3.24, in order to reflect the analysts’ prediction for tanker rate growth during 2009. That is because the investment bank expects crude tanker spot rates to be 30%-40% lower than 2008, with supply outstripping demand. “Our 2009 average crude tanker spot rates are $40,000 per day for VLCCs, $35,000 per day for Suezmaxes and $29,000 per day for Aframaxes. Also, we expect product tanker rates down 10% - 20% year on year” said Credit Suisse.
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According to Credit Suisse analysts, 61 per cent of the company’s fleet is on time charter for this year, out of which 45 per cent is for its crude tanker fleet and 75 percent for its product tanker fleet. “However contract coverage drops to about 35 percent in 2010 (27% coverage for the crude fleet and 44% for product fleet)” says Credit Suisse in a recent report, warning that a lot of ships are rolling off contracts in 2009. Out of 24 product tankers that TEN operates 10 of them or 40% are scheduled to come off charter, while another 38%, or 8 crude tankers (from a total of 21) will follow the same path this year. Credit Suisse has lowered its earnings per share estimate for 2009 to $2.50 from a previous of $3.24, in order to reflect the analysts’ prediction for tanker rate growth during 2009. That is because the investment bank expects crude tanker spot rates to be 30%-40% lower than 2008, with supply outstripping demand. “Our 2009 average crude tanker spot rates are $40,000 per day for VLCCs, $35,000 per day for Suezmaxes and $29,000 per day for Aframaxes. Also, we expect product tanker rates down 10% - 20% year on year” said Credit Suisse.
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