Seacurus Daily: Top Ten Maritime News Stories 17/08/2017
1. True Cost of Cyber Attack
The recent cyber attack on AP Moller-Maersk will cost $200m-$300m but container shipping conditions are the best since the financial crisis, the Danish conglomerate said on Tuesday. The bulk of the impact from the so-called NotPetya attack will be felt in the third quarter, due to lost revenues in July after the company’s IT system, including booking applications, was brought down by malware hidden in a document used to file tax returns in Ukraine. But Soren Skou, Maersk’s chief executive, struck an upbeat note. “We have the strongest fundamentals for container shipping since the financial crisis, or at least 2010,” he said.
The recent cyber attack on AP Moller-Maersk will cost $200m-$300m but container shipping conditions are the best since the financial crisis, the Danish conglomerate said on Tuesday. The bulk of the impact from the so-called NotPetya attack will be felt in the third quarter, due to lost revenues in July after the company’s IT system, including booking applications, was brought down by malware hidden in a document used to file tax returns in Ukraine. But Soren Skou, Maersk’s chief executive, struck an upbeat note. “We have the strongest fundamentals for container shipping since the financial crisis, or at least 2010,” he said.
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2. Life is Looking Good
Life’s getting much easier for container shipping companies, though that’s probably not great news for customers nor regulators. To recap, Maersk’s $264 million quarterly net loss was caused chiefly by valuation write-downs at a tanker unit already primed for separation. In contrast, Maersk’s container shipping lines, the core of the newly restructured company, are doing well. Operating cash flow improved by about $700 million year-on-year and return on invested capital jumped too. Higher freight rates, alongside improving demand, are a big plus. Average prices are about a fifth higher than a year ago.
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goo.gl/dHJSZa
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3. Big Liz Makes Her Bow
Tens of thousands of people have lined the walls of Portsmouth harbour to welcome the UK’s £3bn aircraft carrier, which has berthed at its home port for the first time. The "HMS Queen Elizabeth" arrived alongside Portsmouth naval base where the Royal Navy’s newest and biggest ship will be based for its estimated 50-year lifespan. The 280-metre, 65,000-tonne vessel has been undergoing training and tests at sea after setting out from Rosyth dockyard in Scotland in June. Speaking on board, the prime minister said: “Britain can be proud of this ship and what it represents.”
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4. LR Joins Sailing Venture
Lloyd’s Register (LR) has joined the Quadriga sustainable shipping project – an initiative from Hamburg-based Sailing Cargo, which aims to build the world’s biggest sailing cargo ship. The project outlines a plan to build a 170-metre car carrier, capable of carrying between 1,700 and 2,000 cars, which will be equipped with four DynaRig masts and will operate on hybrid propulsion with sails and diesel-electric engines, and an optional battery system for peak loads. The vessel will be capable of sailing at 10 to 12 knots with the aim of reaching 14 to 16 knots in the next few years through combined expertise.
goo.gl/tAJwWC
Lloyd’s Register (LR) has joined the Quadriga sustainable shipping project – an initiative from Hamburg-based Sailing Cargo, which aims to build the world’s biggest sailing cargo ship. The project outlines a plan to build a 170-metre car carrier, capable of carrying between 1,700 and 2,000 cars, which will be equipped with four DynaRig masts and will operate on hybrid propulsion with sails and diesel-electric engines, and an optional battery system for peak loads. The vessel will be capable of sailing at 10 to 12 knots with the aim of reaching 14 to 16 knots in the next few years through combined expertise.
goo.gl/tAJwWC
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5. Finding GPS Alternative
The threat of another Korean war will lead to investment in maritime security and alternatives to GPS, as heightened tensions on the Korean peninsula have highlighted the need for investment in alternatives to satellites for ship positioning. Maritime security should be enhanced worldwide with alternatives to Global Navigation Satellite Systems, such as GPS. This is because it is so easy and cheap for nations, or criminals to disrupt, or spoof, GPS signals to ships. Ship bridge systems use a GPS signal to locate the vessel on electronic charts, while navigators need the signal to understand their location in relation to other ships.
The threat of another Korean war will lead to investment in maritime security and alternatives to GPS, as heightened tensions on the Korean peninsula have highlighted the need for investment in alternatives to satellites for ship positioning. Maritime security should be enhanced worldwide with alternatives to Global Navigation Satellite Systems, such as GPS. This is because it is so easy and cheap for nations, or criminals to disrupt, or spoof, GPS signals to ships. Ship bridge systems use a GPS signal to locate the vessel on electronic charts, while navigators need the signal to understand their location in relation to other ships.
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6. Explosive Ship Attack Foiled
Yemeni forces destroyed an explosives-laden boat targeting a United Arab Emirates military vessel at Mokha port on Wednesday. A source at the port said that the foiled terror attack was initiated by Houthi militias. A large explosion was heard across the port when forces eliminated the threat before it reached the docked ship. Earlier on Wednesday morning, Yemen National Army forces repelled a Houthi militia attack south of Taiz city. The militia sustained heavy casualties in a battle that involved the use of heavy weapons.
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7. Hanjin Names Wiped Away
It has taken less than a year for all Hanjin Shipping’s boxships to be renamed. Two weeks today will mark the first anniversary since Hanjin Shipping sought court protection becoming one of the most famous shipping bankruptcies in history. “The recent renaming of the 5,067 teu Hanjin Scarlet, the last vessel to bear the Korean carrier’s colours, to Maersk Iyo, has consigned the once mighty Hanjin name to maritime history,” Alphaliner noted in its most recent weekly report. The Hanjin Scarlet was renamed earlier this month, Maersk officials confirmed, telling Splash that the ship is now deployed on the transpacific trades.
It has taken less than a year for all Hanjin Shipping’s boxships to be renamed. Two weeks today will mark the first anniversary since Hanjin Shipping sought court protection becoming one of the most famous shipping bankruptcies in history. “The recent renaming of the 5,067 teu Hanjin Scarlet, the last vessel to bear the Korean carrier’s colours, to Maersk Iyo, has consigned the once mighty Hanjin name to maritime history,” Alphaliner noted in its most recent weekly report. The Hanjin Scarlet was renamed earlier this month, Maersk officials confirmed, telling Splash that the ship is now deployed on the transpacific trades.
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8. Fire Leads to Evacuation
Engineers working on a ship at Cammell Laird’s in Birkenhead were evacuated from the vessel as a precaution after an electrical panel caught fire on one of its decks. Fire crews were called to the site in Campbeltown Road on Tuesday afternoon. They used a main branch and main jet to extinguish the fire. There were no reports of any injuries. A Cammell Laird spokesman said: "At approximately 4pm yesterday afternoon, an electrical panel on board a vessel under repair in the shipyard malfunctioned and overheated.
Engineers working on a ship at Cammell Laird’s in Birkenhead were evacuated from the vessel as a precaution after an electrical panel caught fire on one of its decks. Fire crews were called to the site in Campbeltown Road on Tuesday afternoon. They used a main branch and main jet to extinguish the fire. There were no reports of any injuries. A Cammell Laird spokesman said: "At approximately 4pm yesterday afternoon, an electrical panel on board a vessel under repair in the shipyard malfunctioned and overheated.
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9. Creditors Get Paltry Return
Lenders and noteholders in bust Rickmers Trust Management will get back just 12 cents for every dollar they invested in the container ship leasor. The Bertram Rickmers-controlled Singapore outfit revealed Tuesday that it has completed the sale of its 14 boxships to Navios, marking the end of the company which first listed on the Singapore Exchange 10 years ago. Containership leasing was a hot investment a decade ago, but the massive increase in ship sizes left many leasors left with unpopular 4,000+ teu-class ships that have become hard to charter in the wake of the expansion of the Panama Canal last year.
Lenders and noteholders in bust Rickmers Trust Management will get back just 12 cents for every dollar they invested in the container ship leasor. The Bertram Rickmers-controlled Singapore outfit revealed Tuesday that it has completed the sale of its 14 boxships to Navios, marking the end of the company which first listed on the Singapore Exchange 10 years ago. Containership leasing was a hot investment a decade ago, but the massive increase in ship sizes left many leasors left with unpopular 4,000+ teu-class ships that have become hard to charter in the wake of the expansion of the Panama Canal last year.
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10. Tackling Prohibited Behaviours
The Ship Operations Cooperative Program (SOCP) has released a best practices guide on the prevention of sexual assault, sexual harassment, retaliation, bystander intervention, bullying, hazing, coercion, stalking and other prohibited behaviors in the U.S. Merchant Marine. The guide includes guidance for both employees and companies and is designed for use by maritime companies of all sizes. It was developed under a cooperative agreement with the Maritime Administration (MARAD). The employee section is designed to provide guidance on crew responsibilities to be respectful and to understand that “No means No.”
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S Jones
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