U.S. importers have bought themselves another two years before they must implement a container-scanning rule that they believe should be scrapped altogether.Mandated by the SAFE Port Act of 2006, the Department of Homeland Security issued a requirement that 100 percent of U.S.-bound ocean containers be scanned at the foreign port of origin. Since then, Congress and DHS have been kicking the can down the road, repeatedly delaying implementation of a rule that industry says is unworkable. The latest move puts off action until 2016.But that’s not good enough for scores of industry associations re
In January 2014, Indonesia introduced new regulations on exports of unprocessed minerals. Exports of some minerals have been heavily taxed, whilst shipments of other ores, such as nickel ore and bauxite, have been completely banned. The biggest impact of the ban, in terms of seaborne dry bulk trade, has been on nickel ore and bauxite trade, as Indonesian exports accounted for 58% and 65% of global trade in these commodities respectively in 2013.Sharp DeclineThe importer country most affected by the ban has been China, whose imports of bauxite and nickel ore have grown strongly in recent years
Despite containership deliveries falling over 50% in numerical terms since 2008 to 202 ships last year, deliveries have remained relatively consistent in TEU terms. With 2014 projected to be a buoyant year for boxship deliveries, especially in the Very Large Containership (8,000+ TEU) sector, this month’s Shipbuilding Focus takes a closer look at delivery trends in the containership sector.Sizing Up The ActionAs the Graph of the Month shows, the number of boxships delivered into the global fleet has fluctuated since 2005. Whilst just over 270 containerships were reported delivered in 2005, 436
A few months ago we profiled the fascinating growth strategies of the different ship owning nations, concluding that the wily Greeks were winning the latest phase in the game but Asian owners might have the last laugh. In this week’s analysis we take a closer look at the 23,000 active owning companies tracked by Clarkson Research.A “Model” Company?Ranging from single ship owners with a 30 year old Handy through to corporates running a diversified fleet with hundreds of vessels, there is no single “model” for owning ships. While the “average” owner has less than four ships, a deeper dig reveals
The North European ports of Rotterdam and Hamburg are experiencing significant congestion, an echo of the issues last seen around the world during the boom of the early/mid 2000s ? before the global financial crash took over. The causes of the current congestion are numerous, but poor carrier schedule reliability is high on the list. Are these port congestion problems just temporary, or indicative of a new paradigm for the industry?The current congestion difficulties of Rotterdam and Hamburg are partly because terminal capacity is being affected by work to upgrade existing facilities (such as
From severe weather and rough seas to catastrophic events such ship groundings and collisions, each year a number of shipping containers are lost overboard from ships. But just how many containers are lost each year at sea?That’s a tough question to answer and one that is frequently asked. A quick Google search will point you to a number of unsubstantiated figures ranging from a couple of hundred up to 10,000 per year. But how many is it, really?One report that has been widely accepted as the best estimate came in 2011 when the World Shipping Council polled its member companies, representing 9
China rejected a global shipping alliance to protect companies navigating a choppy market. The decision will probably hurt cargo firms’ earnings, including its own.The Commerce Ministry’s June 17 announcement spiking a deal between the world’s top three container carriers ? known as the P3 and led by Copenhagen-based A.P. Moeller-Maersk A/S ? may undermine recovery in an industry still reeling from the 2008 financial crisis. Overcapacity and low charter rates are likely to stay, jeopardizing earnings, including at China Cosco Holdings Co. and China Shipping Container Lines Co., the country’s t
MonitoringEurope is also leading the way in creating new measures to tackle shipping’s greenhouse gas emissions.Brussels is set to finalise its own regulations, creating the means to have all ships larger than 5,000 gt destined to and from European ports monitor and report annual CO2 emissions.The MRV regulation ? it stands for monitoring reporting and verification ? will affect all ships calling at European ports from January 2018 from when they will to need to keep continual records of annual fuel use or CO2 emissions.In itself, this is an innocuous step for shipowners as fuel-efficiency str
Brussels pushes the international agendabut supports environmental mitigationTHE European Union supports technology advancement, even in shipping. It puts money behind research into environmental solutions, and backs new automation systems and studies into unmanned ships.This is a bonus for European technology companies. They have to keep ahead in an industry where costs play an ever important role and this can give them an edge when it comes to innovation.In early May, a ministerial meeting in Athens led to an updated declaration of Europe’s desire to support maritime industries and, among ot
In the 60s film Carry On Up The Khyber, the Brits were at war in Afghanistan (sound familiar?). Unlike our modern lads, the Highland division had a secret weapon, which they kept under their kilts! But when the dastardly enemy captured Scotsman Private Widdle, he was found to be wearing underpants. Armed with this knowledge they set out to discredit the “secret weapon”.Shipping’s Secret WeaponThe shipping investor’s “secret weapon” is, of course, the market cycle. Since cycles come in all shapes and sizes, “buy low, sell high” makes a great business strategy for investors who “trade ships not
2013 was a record year for LPG ordering with 115 contracts signed, up 109% on 2012. So far this year, contracting has been firm with 49 LPG carriers ordered. This month’s Shipbuilding Focus takes a closer look at ordering trends in the LPG sector.As the Graph of the Month shows, there was a relatively firm level of LPG contracting during the ordering boom, 2005-08, with an average of 86 ships contracted p.a. The global recession saw ordering levels drop and just 25 LPG carriers were ordered in 2009. However, several large series orders contributed to an uptick in contracting in 2010 with 63 un
The consensus of opinion among analysts is that there is no end in sight to the current bleak period in the container liner sector. Tuan Hua Joo, executive partner, Alphaliner, has suggested that we are now in the equivalent of a “capacity arms race” triggered by Maersk’s order for 20 Triple-E vessels in 2011.Speaking recently at the TOC Container Supply China Conference in Singapore he elaborated: “Maersk miscalculated that it could push some of its competitors out of the way, but eventually it was forced to form the P3 alliance ? taking the step that indicated there was something wrong.“But,
Red ink is the most common feature of most liner operators’ results in 2013 and it looks like there is more pain on the way prompting, in turn, more asset sales with container terminal assets high on the list.CMA CGM and Maersk are the two notable exceptions in the liner operating sector that did turn in positive results in 2013 but, to a significant extent, CMA CGM’s results were due to the contribution made by the sale of 49% of its Terminal Link portfolio of terminals to China Merchants Holdings International (CMHI) for €400m.This gave CMHI equity positions in 15 terminals around the world
Ultramax bulkcarriers of around 60-65,000 dwt have become increasingly popular in recent years, largely replacing the slightly smaller Supramax design in contracting activity, offering a larger cargo capacity and greater fuel efficiency.In 2013, overall newbuilding interest in the bulker sector increased notably, and in total some 319 Ultramaxes were ordered. This was up 420% y-o-y, and accounted for almost one third of all bulker contracts placed globally.New Favourite For Chinese BuildersThe surge in demand for Ultramax newbuildings proved beneficial for Chinese yards, since almost 80% of Ul
Full-year 2013 numbers are in for the U.S. containerized ocean trade, and, as expected, year-over-year growth in imports, exports and total trade was middling. But what 2013 did more than anything else was set the stage for the real sea change that will come this year. Here’s what we learned about last year and how the landscape is changing.Q : How big are the carriers in the P3 Network in terms of overall U.S. trade?The P3 carriers ? Maersk Line, CMA CGM and Mediterranean Shipping Co. ? are the world’s three largest carriers in terms of fleet capacity, a scale reflected in the combined 26.9 p