Credit crunch hurting global shipyard orders

There are growing signs the credit crunch that began with the U.S. housing market is spreading to the world's shipyards.

A roaring global economy saw shipbuilders inundated in recent years by orders for container ships, oil tankers and bulk carriers to satisfy American and European demand for consumer goods, a global thirst for oil and a Chinese hunger for commodities. Order books swelled to a three-year backlog, but the credit crunch is making it harder for some shippers to raise money to pay for the ships they ordered. Shares of shipyards have suffered. Hong Kong-based Guangzhou Shipyard has fallen 38 percent in the last three months, while Yangzijiang Shipbuilding is down about 55 percent over the same period. JES International , which debuted on the Singapore Exchange in December, is down 64 percent since the beginning of the year. Among recent ship order cancellations, Hong Kong-based shipper Jinhui said in January it was calling off construction of two giant ore carriers, citing global credit conditions. "The risk-return profile of completing (the vessels) has changed drastically due to persistent negative sentiment clouding the global financial markets," the company said. According to some shippers, any deal over $500 million that requires a syndicated loan is more likely to run aground.

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China-EU Marine Agreement effective from March

The China-EU marine agreement, applicable to both China and all 27-member countries of the Europe Union, signed on February 28, and came into effect on March 1.

It is the first such agreement ever concluded between the two sides, and will doubtless play a vital part in maintaining the healthy development of bilateral relations in marine transport. Sources from the Ministry of Communications say the agreement is concerned mainly with the establishment of commercial institutes by companies from either side in the other's home land and the use of port facilities and services etc, with both parties agreeing to non-discrimination on issues such as use of port facilities, charging, customs clearance, berthing and loading/discharge arrangements etc, and neither side will enact any administrative, technical or legislative measures that may cause actual discrimination against the people or institutes from the other side. According to the agreement, each side shall allow in its native land the conduct of marine transport and logistics services, including door-to-door multi-modal container transport by companies from the other side, both independently and in the form of joint venture firms. Bilateral trade volume between China and EU reached US$356.1 billion in value in 2007, making the EU China's largest trade partner.

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Greek tourist ship runs aground

Greek authorities have evacuated a ship carrying 313 people, mostly foreign tourists, which ran aground near the island of Poros, south of Athens.

Helicopters, a military transport plane and coastguard vessels were involved in rescuing those on board the Giorgis, which hit a reef in the Saronic Gulf. The merchant marine ministry said there had been no reports of any injuries. The ship ran aground during a cruise from the port of Piraeus to the nearby islands of Aegina, Poros and Hydra. The mayor of Poros, Dimitris Stratigos, said the Greek-flagged vessel was stranded in an inlet about three nautical miles (5.5km) from the island's port. After the Giorgis began to take on large amounts of water, an operation to evacuate the passengers and crew was launched by the coast guard and the local authorities, he added. "The evacuation is finished and we are making the final checks to make sure everyone is safe," an official from the merchant marine ministry later told the Reuters news agency. There were reportedly 103 Japanese, 58 Americans and 56 Russians, and around 30 Britons aboard, among others. There were also 35 crew.

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Singapore's MPA launches maritime career portal

The Maritime and Port Authority of Singapore Ceo BG (NS) Tay Lim Heng launched a one-stop job portal Maritimecareers.com.sg, at the quarterly NetworkONE Reception for the maritime community yesterday.

The portal, which is an initiative under MaritimeONE (Outreach Network), is designed to support Singapore's rapid growth as an international maritime centre. It effectively performs the role of an on line job match maker that operates 24/7, promoting maritime careers and education, bringing prospective employers and employees together, and featuring jobs spanning all three maritime sectors: shorebased maritime services, offshore and marine engineering, and seafaring.
“The launch of this new maritime career portal marries the growing interest among our youth in the maritime sector and the industry's need for quality manpower to fuel the rapid growth of Singapore as an international maritime centre,” said Tay. “By leveraging on the internet, the job match-making can be effected around the clock.” S.S. Teo (pictured), chairman of the MaritimeONE steering committee, said, “We are very heartened by the support of the maritime industry to the various events and initiatives that the MaritimeONE has organized. This portal is yet another avenue for the industry to showcase its wide ranging career opportunities that many may not be aware.

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French shipping group CMA CGM 2007 profit up 58 pct

French shipping group CMA CGM said that its 2007 net profit rose 58 percent to $966 million as it launched 42 new services throughout the world and took delivery of 98 new vessels.

The company said sales rose 40 percent to $11.8 billion. Stripping out acquisitions, growth was 35 percent, it said. CMA CGM's fleet is now composed of 384 group-operated ships with a carrying capacity of 913,000 twenty-foot equivalent units (TEU) compared with 698,000 at the end of 2006. It said the container fleet grew 28 percent in 2007 for a total of 1,535,000 TEU. In the statement, Chairman Jacques Saade was quoted as saying the company was preparing for "the arrival of a new generation of large vessels in our fleet which will represent a new era for the maritime shipping industry and for CMA CGM". CMA CGM competes with companies such as A.P. Moller-Maersk and Evergreen Marine Corp. A CMA CGM spokesperson said earlier this week the company was not interested in acquiring Germany's Hapag-Lloyd amid speculation it could be split off from parent group Tui.

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Canada-US link gets green light

TransCanada has been given the green light by the US State Department to build pipeline facilities at the border between the US and Canada as part of its pending $5.2 billion crude pipe project that will eventually link the two countries.

TransCanada's Keystone Pipeline, which is co-owned by ConocoPhillips, will begin construction on the pipe in the second quarter of 2008. The in-service date is expected some time during the fourth quarter of 2009. Keystone received National Energy Board approval last year for two major regulatory applications to construct and operate the Canadian portion of the project. Keystone also received approvals in 2007 and early 2008 for major US state-level regulatory applications. Affiliates of TransCanada will be responsible for constructing and operating the 3456-kilometer (2148-mile) Keystone Pipeline, which will be capable of delivering 590,000 barrels per day of crude oil from Hardisty, Alberta, to US mid-west markets at Wood River and Patoka, Illinois, and to Cushing, Oklahoma. Initial deliveries to Patoka are expected to begin in late 2009. Keystone has secured firm long term contracts of 495,000 barrels per day with an average duration of 18 years.

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The 'Lions' of Hong Kong awaken at the official opening of China Maritime 2008

Hong Kong's Secretary for Transport and Housing, Ms Eva Chan JP, awakens Hong Kong's 'Lions' at official opening of China Maritime 2008.

In front of a growing crowd of 100+ people and a well-represented media sector, China Maritime 2008 opened its doors for Hong Kong's only international shipping exhibition. Organiser, Neil Baird welcomed the VIPs and guests and stated how excited he was to be back in Hong Kong (since China Maritime 2006). 'We have a big spread of exhibitors covering the whole shipping industry, from small to large,' he said. 'Hong Kong is an exciting entry point to China and with the support of the Hong Kong Government, we are looking to build on our last exhibition and are looking forward to helping to build a truly international Hong Kong maritime week, over the years to come. Mr Peter Cremers, Chairman of the Hong Kong Shipowners Association, thanked the organisers for their persistence in bringing the China Maritime exhibition to Hong Kong and wished the exhibition a successful three days. An exciting Lion dance was witnessed by all. Ms Eva Cheng and Mr Peter Cremers conducted the ribbon cutting ceremony that officially opens the Exhibition. Over the past seven years, China's shipbuilding industry has had some 30 percent growth per annum, making it the second largest shipbuilding country in the world, today.

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