Seacurus Daily: Top Ten Maritime News Stories 25/01/2019
1.Surge of Success for Suez
Egypt’s Suez Canal revenue rose to $5.7 billion in 2018, from $5.3 billion in 2017, Reuters calculations based on data from a government reveal. The canal is the fastest shipping route between Europe and Asia and one of the government’s main sources of foreign currency. December’s Suez Canal revenue was $471.8 million, up from $461.5 million the previous month and slightly higher than the previous December’s $471.5 million. A major extension of the Suez Canal was inaugurated by Egypt in August 2015, aiming to power an economic turnaround.
2. Tinder for Cargo
A German start-up claiming to be the Tinder of cargo transport has won a significant new tranche of sign-ups. Munich-based Flenzies has signed a multi-year partnership with Antwerp-based Atlas Group of Networks, which consists of the Atlas Logistic Network, the Atlas Logistics Family Alliance and the Atlas Breakbulk Alliance. The partnership gives the Flenzies community several thousand extra professionals from family-owned companies around the world, covering more than 600 locations and offering project cargo logistics, air- and seafreight as well as day-to-day logistics services.
3. Company Blame Game
Oslo-based Western Bulk Chartering saw its full-year profits take a sizeable hit from “some poor decisions taken by an employee in South America”. Western Bulk said that its Chile business unit experienced a net time charter loss of $10m in the last six months of the year, thanks in large part to contracts that were approved based on what the company said in a release were “unrealistic assumptions” by a trusted employee. The Chile business unit has been restructured and the employee removed, and internal control routines have been reviewed and enhanced.
4. 10k Teu Purchase
Monaco-based Navios Maritime Containers has acquired a 2011-built containership from an unrelated party for USD 52.5 million. The 10,000 TEU unit is expected to be delivered into the company’s fleet during the first quarter of 2019. The vessel is chartered out at a net rate of USD 26,325 per day until November 2020 and thereafter at USD 27,300 per day until October 2021. The containership is expected to generate around USD 9.5 million of revenue and USD 6.5 million of EBITDA in the twelve month period following its delivery, the shipowner said.
5. Good News from American P&I
The American P & I Club has recently issued a circular containing a progress report highlighting some of the latest Club metrics in regard to tonnage, premium, claims, investment income and free reserves as the 2019 renewal draws near. Most of the Club’s key operational indicators show positive progress. Premium and tonnage have maintained their upward trajectory, claims have remained subdued – both in relation to attritional exposures and larger losses – and, despite heavy turbulence in the financial markets toward the end of 2018, the Club’s funds under investment have held up well.
6. Grounding Due to Pilot
The UK Marine Accident Investigation Branch (MAIB) has published the results of its inquiry into the grounding of the cargo ship Celtica Hav on the approaches to the port of Neath, Wales. The MAIB concluded that the casualty occurred because of the lack of a detailed pilotage plan and a loss of situational awareness. At 1415 hours on March 27, 2018, the freighter Celtica Hav took on a pilot at the mouth of the River Neath, the approach channel for the port of the same name. The master and pilot completed their exchange and signed off the pilotage checklist.
7. Libya Agrees to New Port
Libya’s government authorities in the East and West have formally agreed to jointly support what is expected to be one of North Africa’s most automated and largest deep-sea ports near the city of Susah in Libya. Specifically, the United Nations-backed Government of National Accord (GNA), known as the Unity Government, in the West in Tripoli and the House of Representatives Interim Government in the East in Tobruk, will cooperate on the billion-dollar Port of Susah project. The port will handle containers as well as breakbulk, bulk, general cargo, and potentially oil and gas.
8. COSCO Eyes Peru
Cosco Shipping Ports, the port operating unit of China Cosco Shipping Group, has entered into an agreement to invest $225m to acquire a 60% stake in the port of Chancay in Peru, marking the state-run shipping giant’s first foray into South America. Under the agreement, Cosco will buy the stake from Peruvian mining company Volcan Compania Minera and partner with company for the development, construction and operation of the port. Port of Chancay is a natural deep-water harbour with a maximum of 16 metres water-depth.
9. Britannia Enters Hong Kong
Hong Kong’s insurance regulator, the Insurance Authority (IA), has granted Britannia a licence to underwrite business from its Hong Kong office. This positive news is in line with Britannia’s strategy of ‘think global, act local’. This has seen new Exclusive Correspondents for the Association opening in Taiwan and Denmark and the recent purchase by Tindall Riley (Britannia’s Managers) of the Britannia exclusive correspondents in Japan and Singapore as well as Tindall Riley opening an office in Greece.
10. Walking the Walk
ABS has recorded zero lost time work-related incidents for the second year in a row. The Lost Time Incident Rate (LTIR) has remained at 0.00 throughout 2017 and 2018, underscoring ABS’ industry-leading safety performance. “Safety is the foundation of all we do and our record of two consecutive years without a lost-time injury stands as a remarkable achievement,” said ABS Chairman, President and CEO, Christopher J. Wiernicki.
Daily news feed from Seacurus Ltd – providers of MLC crew insurance solutions www.seacurus.com