Seacurus Daily: Top Ten Maritime News Stories 15/11/2018
1. ONE Shocking Year
The CEO and president of Mitsui OSK Lines (MOL) has branded his new co-owned containerline’s financial results “shocking” and vowed to make big changes. MOL has a 31% stake in Ocean Network Express (ONE), the new boxline launched with compatriots Nippon Yusen Kaisha (NYK) and Kawasaki Kisen Kaisha (K Line) in April this year. A dire start to operations saw Singapore-based ONE forced to issue a warning last month that it could lose up to $600m in its first year of operations, far off its initial $110m profit forecast, on the back of “teething problems” with the consolidation of the three company’s liner divisions. http://bit.ly/2DEC7ds
2. Time for Digital Standards
As the digital transformation in the maritime industry accelerates, there has been a groundswell of calls to set up relevant standards for maritime digital solutions, amid a large number of players, mostly startups, entering the market in recent years. A survey released by INTTRA, the largest, multi-carrier network for the ocean shipping industry, saw 91% of participants believe the creation of agreed standards and protocols is essential, and 82% would prefer to see an initiative started by a neutral party that works collaboratively with multiple industry players to set and share data-sharing standards and protocols. http://bit.ly/2Tcp8o6
3. K Line’s Bulk Growth
Japan’s Kawasaki Kisen Kaisha (K Line) has set out to become the world’s largest capesize operator, in the process reducing its exposure in the smaller bulker segments. Japan’s third largest shipping line – with a total fleet in excess of 400 ships – held a global dry bulk conference at its headquarters in Tokyo recently where it mapped out a path to dominate the capesize sector. At a press briefing in Tokyo covered by the Kaiji Press, Atsuo Asano, senior managing executive officer at K Line, said: “We will be looking to become the world’s number one capesize operator”.
4. Wan Hai Massive Order
Taiwan-based Wan Hai Lines has confirmed an order for 20 container vessels with Japan Marine United Corporation (JMU) and Guangzhou Wenchong Shipyard / China Shipbuilding Trading Company (GWS/CSTC). The contract includes eight 3,036 TEU vessels from JMU and 12 2,038 TEU vessels from GWS /CSTC. Additionally, Wan Hai has the option to declare an additional four 3,036 TEU vessels within six months and four 2,038 TEU vessels within three months. The company will start taking delivery of the vessels from October 2020. Currently, Wan Hai Lines operates a fleet of 72 owned vessels and 24 chartered vessels.
5. Frigate Slips Under
Despite salvage efforts, the wrecked Norwegian frigate Helge Ingstad has sunk beneath the waves near Bergen, Norway. The Ingstad collided with a merchant tanker and was intentionally grounded to prevent her from fully sinking. Over the weekend, salvors connected steel cables from the Ingstad’s hull to hard points on shore in hopes of restraining her movement. However, multiple wires parted last night, and salvage supervisors determined that it was not safe for divers to go in again to rig replacements. The vessel sank further, and only the top of her radar tower remains above the surface
6. 100 Ship Vision
Nippon Yusen Kaisha (NYK) has fixed a four and a half year time charter deal for one of its LNG carriers to China’s Unipec, starting in February next year. No price for the deal has been revealed. The 149,700 cu m Grace Acacia will be used in the charter and marks a new stategy for NYK in targeting more gas contracts out of neighbour, China, something NYK’s rival Mitsui OSK Lines (MOL) has gained an early mover advantage. NYK has big plans to grow LNG revenues. It is already one of the world’s largest operators of LNG carriers, with 74 units plus eight on order and plans to grow the fleet to 100 ships by 2022.
7. Scrubber Washer Water Woe
The IMO cap on SOx emissions is set to January 2020, and a ban on carriage of non-compliant fuel – when a scrubber is not installed – is set to March 2020. Cleaning, or scrubbing, the exhaust gas is a generally accepted option. However, there are questions about the impact of washwater from scrubbers, when this is discharged to the sea, in light of the existing IMO regulations.
8. Iran to Sue the US
Iran will sue the United States at the International Maritime Organization (IMO) for sanctioning its maritime transport services, Mohammad Rastad, managing director of the Ports and Maritime Organization of Iran, said. A complaint would be filed to the IMO in London next week against the “cruel U.S. sanctions and restrictions on maritime transport,” Rastad was quoted by Press TV as saying. Iran’s complaint would be based on international laws that govern the maritime industry, he added. While the US claims Iranian tankers are a floating liability and a risk to the ports that permit them to dock.
9. HMM Widens Losses
South Korean shipping company Hyundai Merchant Marine (HMM) widened its loss in the third quarter of 2018 as bunker cost climbed up. The company’s net loss reached KRW 166.7 billion during the quarter, compared to a net loss of KRW 60.3 billion reported in the third quarter of 2017. HMM’s revenue for the period was up by 10 percent to KRW 1425.8 billion from KRW 1295.6 billion, while volumes increased by 12.8 percent to 1.18 million TEU, compared to 1.04 million TEU handled in the same quarter a year earlier.
10. Maersk Not Buying
Maersk doesn’t see a strong need to pursue mergers and acquisitions in the following year, according to the company’s CEO Søren Skou. As explained, the company has over 20 pct market share on the long-haul trades, which provides it with a competitive cost structure, removing the need to look into acquisitions. The world’s largest shipping company is in the process of integration of German liner Hamburg Süd, which is progressing faster than planned. Maersk expects integration synergies to reach at least USD 500 million by 2019, excluding integration cost.
Daily news feed from Seacurus Ltd – providers of MLC crew insurance solutions www.seacurus.com