Seacurus Daily: Top Ten Maritime News Stories 20/07/2018
1. Singapore Tops the Charts
Singapore remains unmoved at the top of the International Shipping Centre Development Index for the fifth successive year, according to the Baltic Exchange. The index covers 43 of the worlds largest ports and cities, and
the Asia-Pacific region now makes up 50 percent of the top 10. Singapore maintains its leading position for the fifth consecutive year due to the strategic opportunities brought about by the Belt and Road initiative. Hong Kong overtook London for the first
time in five years to take second place, although London is still assessed to be the top professional maritime services location.
the Asia-Pacific region now makes up 50 percent of the top 10. Singapore maintains its leading position for the fifth consecutive year due to the strategic opportunities brought about by the Belt and Road initiative. Hong Kong overtook London for the first
time in five years to take second place, although London is still assessed to be the top professional maritime services location.
https://bit.ly/2L6m9Ns
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2. Zim Signs Up
ZIM, the Israeli boxline has thus far avoided container alliances, but has teamed up with 2M founding partners Maersk and MSC on voyages from Asia to the US East Coast. MSC and Maersk Line operate five loops on the Asia-USEC
trade, while ZIM operates two loops on the trade. As of early September 2018 when this new strategic cooperation deal comes into place, Maersk Line and MSC will contribute four of their operated loops to a combined operation of five loops with ZIM between
Asia and USEC. ZIM will operate one loop. 5The cooperation with the 2M Alliance creates a major upgrade of ZIMs Pacific services, ZIM said.
trade, while ZIM operates two loops on the trade. As of early September 2018 when this new strategic cooperation deal comes into place, Maersk Line and MSC will contribute four of their operated loops to a combined operation of five loops with ZIM between
Asia and USEC. ZIM will operate one loop. 5The cooperation with the 2M Alliance creates a major upgrade of ZIMs Pacific services, ZIM said.
https://bit.ly/2JJnXGU
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3. Freight Rates Ticking Along
Solid freight rates seen in the dry bulk sector kept secondhand sales ticking over this week. However, there has been a noticeable pull back from big investment decisions as owners take in multiple factors about the outlook
for ship prices. This wait-and-see approach, combined with the traditional northern hemisphere summer lull, is expected to see S&P markets quieten down for the coming few weeks. On the dry bulk side, activity was set
back into motion, with a fair volume of units changing hands. This does seem to have been at a cost however, with prices having felt some downward pressure on certain deals.
for ship prices. This wait-and-see approach, combined with the traditional northern hemisphere summer lull, is expected to see S&P markets quieten down for the coming few weeks. On the dry bulk side, activity was set
back into motion, with a fair volume of units changing hands. This does seem to have been at a cost however, with prices having felt some downward pressure on certain deals.
https://bit.ly/2LydyPP
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4. Sub-Standard Submarine
Spain’s newest submarine, the S-80 Plus, is too big to fit at its home port. A redesign to correct a buoyancy problem left it 30 feet longer than originally planned – about nine feet too long for the submarine slips at Arsenal de Cartagena, the Spanish
Navy’s sub base. Due to a miscalculation during the design phase – a misplaced decimal point, according to a former defense procurement official – the original S-80 hull form turned out to be too heavy by a margin of about 125
tons. To correct the problem, shipbuilder Navantia added three additional compartments to lengthen the design and increase buoyancy, so it is now too big.
Navy’s sub base. Due to a miscalculation during the design phase – a misplaced decimal point, according to a former defense procurement official – the original S-80 hull form turned out to be too heavy by a margin of about 125
tons. To correct the problem, shipbuilder Navantia added three additional compartments to lengthen the design and increase buoyancy, so it is now too big.
https://bit.ly/2zSoPJn
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5. Port Investment Vehicle
The Port of Southampton is to build a new vehicle terminal as the latest phase a £50 million ($65 million) investment by Associated British Ports (ABP). The new £15 million ($19.5 million) multi-storey facility will be built
in the Eastern Dock and will provide storage for a further 3,000 vehicles. It is expected to be completed in 2019. ABP has already invested more than £32 million ($42 million) over the past five years to support the automotive
industry. Many of ABP’s ports have the capability to handle vehicles, and around 40 percent of all vehicles imported and exported by the U.K. are handled by an ABP facility.
in the Eastern Dock and will provide storage for a further 3,000 vehicles. It is expected to be completed in 2019. ABP has already invested more than £32 million ($42 million) over the past five years to support the automotive
industry. Many of ABP’s ports have the capability to handle vehicles, and around 40 percent of all vehicles imported and exported by the U.K. are handled by an ABP facility.
https://bit.ly/2uAcJzA
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6. MPC Growing Fast
Fast growing German feeder boxship operator MPC Container Ships has announced the acquisition of a 2012-built 1,740 teu geared containership. The ship, to be named AS Selina is expected to join the MPC fleet in the third
quarter of 2018. The price for the vessel is $13.86m. The latest acquisiton will increase the companys fleet to 69 vessels. Last month, MPC Container Ships raised $50m via a private
placement for further ship acquistions.
quarter of 2018. The price for the vessel is $13.86m. The latest acquisiton will increase the companys fleet to 69 vessels. Last month, MPC Container Ships raised $50m via a private
placement for further ship acquistions.
https://bit.ly/2NrdGRR
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7. Demand for Fuel
Demand for high sulfur fuel oil is expected to crater in 2020 when the IMO introduces a cap on sulfur. But companies that build exhaust cleaning systems for ships, which enable the vessels to keep burning the fuel, reported
bumper orders this week. Shares of one, Alfa Laval AB, rose to a record after saying it was nearly sold out for next year. Weakness in the fuel oil market has been one of the biggest impacts of the IMOs impending 2020
sulfur cap. Fitting ships with scrubbers is still expected to be a relatively marginal solution for vessels and demand for the fuel will still drop sharply in 2020.
bumper orders this week. Shares of one, Alfa Laval AB, rose to a record after saying it was nearly sold out for next year. Weakness in the fuel oil market has been one of the biggest impacts of the IMOs impending 2020
sulfur cap. Fitting ships with scrubbers is still expected to be a relatively marginal solution for vessels and demand for the fuel will still drop sharply in 2020.
https://bit.ly/2L6Yc8R
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8. Engine Damage Fire
The UK’s Marine Accident Investigation Branch (MAIB) has released its report into the engine failure and fire aboard the ro-ro ferry Wight Sky last September. According to the agency, the failure – which led to the injury of the Sky’s engineer – may have
been caused by the entry of debris into the engine during its installation. In July and August 2017, the Sky’s #2 main engine suffered a series of failures, beginning with an undiagnosed coolant loss problem. A contractor replaced
cooled components as they failed, but the mysterious leak continued. Additional remedial steps resulted in engine damage, and a full rebuild.
been caused by the entry of debris into the engine during its installation. In July and August 2017, the Sky’s #2 main engine suffered a series of failures, beginning with an undiagnosed coolant loss problem. A contractor replaced
cooled components as they failed, but the mysterious leak continued. Additional remedial steps resulted in engine damage, and a full rebuild.
https://bit.ly/2mrZ7ls
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9. Surplus Tanker Growth
Surplus tanker capacity still plagues the shipping industry, with weak oil demand in the second quarter of 2018, and a short-term view for shipping rates that are plummeting. Crude shipping from Latin America, Africa, and
the Middle East is likely to increase slowly, while shipments to the US and Europe will diminish for the remainder of 2018. Due to excess capacity, earnings are also incredibly low, with an average of $6,001 per day for
Very Large Crude Carriers (VLCCs) and the Suezmax tanker earning $10,908 per day. Compare that with $60,000 and $40,000 (respectively) in January of 2017.
the Middle East is likely to increase slowly, while shipments to the US and Europe will diminish for the remainder of 2018. Due to excess capacity, earnings are also incredibly low, with an average of $6,001 per day for
Very Large Crude Carriers (VLCCs) and the Suezmax tanker earning $10,908 per day. Compare that with $60,000 and $40,000 (respectively) in January of 2017.
https://bit.ly/2uM5LH9
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10. Abandoned Seafarer Shame
Seventeen seafarers, who havent received their salaries for over two years, were abandoned on Kish Island, Iran, in dire conditions, Justice Upheld, a British registered human rights charity said. The case emerged in May
2018 after an Indian national contacted the charity seeking help on the case, Human Rights at Sea (HRAS) disclosed in a case study. The Indian seafarer was abandoned by his employer, and hadnt received a salary for over
a year. However, he was not alone, 11 more Indian nationals, 3 Ethiopian and 2 Filipino mariners shared a similar fate. The seafarers were left on the island.
2018 after an Indian national contacted the charity seeking help on the case, Human Rights at Sea (HRAS) disclosed in a case study. The Indian seafarer was abandoned by his employer, and hadnt received a salary for over
a year. However, he was not alone, 11 more Indian nationals, 3 Ethiopian and 2 Filipino mariners shared a similar fate. The seafarers were left on the island.
https://bit.ly/2uNzmju
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Daily news feed from Seacurus Ltd providers of MLC crew insurance solutions www.seacurus.com
S. Jones
Seacurus Ltd
Seacurus Ltd.,
Barbican Group,
33 Gracechurch Street,
London EC3V 0BT,
UK
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