Seacurus Daily: Top Ten Maritime News Stories 22/02/2019
1. Big Blue Still in Red
Maersk released its annual results on Thursday talking about an accelerated transformation, however, more than two years into a huge restructuring exercise the group remained in the red for 2018. AP Moller – Maersk reported impressive top line growth with revenues of $39bn in 2018 compared to $30.9bn a year earlier mainly buoyed by the inclusion of Hamburg Sud in its ocean business (container line) which saw revenues increase to $28.4bn last year compared to $22bn a year earlier.
2. HMM Boss Resigns
CK Yoo is resigning as president and CEO at HMM, South Korea’s flagship carrier. In an internal note sent to employees and seen by Splash today, Yoo thanked his colleagues for the “reconstruction of HMM from the disarray for the last two and half years”. Yoo will take his leave at the next shareholders meeting at the end of March. Yoo, in his second stint at the head of HMM, had originally been slated to keep the post through to 2021. During his tenure he brought the carrier through a tricky restructuring and signed a vessel sharing agreement with the world’s top two liners, MSC and Maersk.
3. Bulker Total Loss
A salvage team is in place to remove the wreck of Solomon Trader, which has now been declared a total loss, according to the charterer of the bulk carrier. Two barges are now alongside the stricken bulker, which ran aground 17 days ago on a reef near the world’s largest raised coral atoll. The ship ran aground while loading bauxite near the East Rennell world heritage site. Salvage operations were hampered initially by a cyclone, locals reporting a bunker slick which is denied by the vessel’s owner, King Trader from Hong Kong.
4. CMA CGM Mega Spend
Brokers have confirmed a sizeable boxship order from France’s CMA CGM. Norwegian broker Fearnleys’ latest weekly report details how the ten-ship order has been broken down. CMA CGM has contracted China State Shipbuilding Corporation (CSSC) to build ten 15,500 teu boxships, split two ways to handle the impending global sulphur cap. Five will be built with LNG propulsion at Jiangnan Shipbuilding, priced at $130m per ship, while another five will be built at another unconfirmed CSSC yard, likely Hudong-Zhonghua, fitted with scrubbers and priced at $110m per ship. The total package comes in at $1.2bn.
5. Confused Times for Demolition
Over the course of the past couple of years, things were pretty straightforward when it came to the demolition market. More ships were headed for scrap, as ship owners were inclined to sell their older ships, to balance the ailing freight markets. So far in 2019, though, things aren’t that simple, as more parameters have to be taken under consideration. Clarkson Platou Hellas said that “we remain in what can only be described as a very puzzling and confusing market with brokers and cash buyers at the edge of their seats still waiting for the anticipated surge of new tonnage to kick-start their year.
6. Conservation Bid for Whales
A group of conservation organizations have asked a federal judge to block the start of seismic airgun activities for offshore drilling in the Atlantic Ocean until the case can be fully heard in court. The motion for a preliminary injunction filed in federal court in Charleston contends that the Trump administration’s approval for five companies seismic surveys violates the Marine Mammal Protection Act, the Endangered Species Act and the National Environmental Policy Act. Separately, coastal communities and Small Business Chamber of Commerce also filed a lawsuit to prevent seismic activity.
7. Fire Damaged Boxes Removed
The fire-damaged container ship Yantian Express is moored in Freeport, Grand Bahama, awaiting the unloading of damaged cargo. In a customer update, carrier alliance ONE said that the local port authority is monitoring the preparation of the reception site and is expected to give its final approval to start discharge operations in the next few days. The work will begin with damaged cargo, and ONE expects the process to take about two months. According to the general average surveyor, 202 containers are suspected to be a total loss, and another 460 were stored in the affected area and require inspection.
8. Dangers of Singapore Anchorages
Standard Club has been warning members on a recent industry advisory highlighting a number of cases where the ships anchored in waters around the island of Batam (on the Southern side of the Singapore Strait) and near Bintan (on the Eastern side of the Singapore Strait) have been detained by the Indonesian Authorities as a part of their efforts to combat smuggling. The club is aware that a number of ships are apparently instructed to ‘wait for orders’ off Singapore OPL (outside port limits). However, the waters in the Strait of Singapore and Malacca may not necessarily be international.
9. IMO On Safer Moorings
As part of its work to make ships mooring safer, IMO’s Sub-Committee on Ship Design and Construction (SDC 6), which took place on 4-8 February 2019, introduced new requirements for appropriate and safe-to-use designs of mooring arrangements, a maintenance and inspection regime, as well as proper documentation. It is also one of the work situations where crew members are exposed to excessive dynamic forces (snap-back), detrimental heavy manual work processes and the influence of unfavourable weather conditions that may further hamper the safe and healthy accomplishment of the port call. http://bit.ly/2GVEUjo
10. Ro-Ro Grounding Investigation
The UK MAIB issued an investigation report on the UK-registered ro-ro passenger ferry, Pride of Kent, that struck a jetty and then grounded while departing Calais, France, on December 2017 amid loss of control. The ferry was re-floated later that day and moved to a berth where the passengers disembarked. The ferry’s starboard propeller and tail-shaft were damaged and required repair in dry dock. The jetty was also damaged. No injuries and pollution were reported.
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