UAE tanker released with half of the crew, details unclear

What serious analysts predicted since long in the Somali piracy circus are cases where the amateur negotiators and deliverers, who are often friends of friends in the insurance industry, create more difficulties than they solve with ill-conceived ransom drops and not at all planned, insecure release operations.
[Read More]
Source: SeaNews

Singapore vessel arrivals in March surge to record high

Vessel arrivals by tonnage to Singapore's port rose nearly 14 percent to a record monthly high of 181.78 million tonnes in March, helping to spur a rebound in marine fuel sales in the city-state last month, official data showed.
[Read More]
Source: Reuters, Manila Bulletin

LNG bunkering needs government support

A shift to using LNG for bunkering commercial vessels would require government support or intervention and is unlikely to be a realistic global phenomenon before 2025 at the earliest, shipping industry representatives said this week.
[Read More]
Source: platts

NSCSA Receives New Chemical Tanker NCC HUDA

The National Shipping Company of Saudi Arabia announces that its 80% owned subsidiary company The National Chemical Carriers Ltd. Co. (NCC) received on Friday, 15th April 2011 in Korea a new chemical tanker named “NCC HUDA” with DWT of 45,000 tons from SLS Shipbuilding Co. Ltd. of South Korea, as part of two vessels previously purchased by NCC from SLS on 21/12/2010 for a total price of approximately (SAR 322 Millions) for the two tankers. The vessel started her operation from 15/4/2011 and the financial impact of the delivered tanker on the company’s revenue will appear starting second quarter of the current financial year.

NCC has additional nine vessels under construction at SLS in South Korea costing (SAR 1,721 Millions) with deliveries expected during 2011/12, in addition to one large chemical tanker of 75,000 DWT, to be constructed at Daewoo Shipbuilding and Marine Engineering Co. Ltd. (DSME) of South Korea at the price of (SAR 247 Millions) for delivery during 2013.
Source: NSCSA

Indian merchant navy officers to grab 9% global share by 2015

Aiming to increase the global share of Indian merchant navy officers to 9% by 2015 in the wake of shortage of personnel, the government plans to acquire four training ships at a cost of Rs 500 crore.

India is the fifth largest supplier of officers globally at present having a share of 6.3% out of 5,50,000 officers.

[Read More]

Source: Business Standard

ONR demonstrates laser weapon that could disable pirate skiffs

The Office of Naval Research has successfully demonstrated a weapon that could one day prove an effective means of disabling pirate attack skiffs.

On April 6, the Office of Naval Research and its industry partner, Northrop Grumman, successfully tested a solid-state, high-energy laser (HEL) from a surface ship, which disabled a small target vessel. The at-sea testing of the Maritime Laser Demonstrator (MLD) validated the potential to provide advanced self-defense for surface ships and personnel by keeping small boat threats at a safe distance.
[Read More]
Source: Marine Log

Piracy spurs India coal buyers to diversify

Indian coal buyers struggling with Somali pirate attacks on ships from South Africa find taking longer routes of limited use and are turning to Australia and Russia for fuel to avoid the Indian Ocean completely.
Somali pirates, whose hijacking of oil tankers, bulk cargo ships and fishing vessels costs world trade billions of dollars a year are growing bolder.
[Read More]
Source: Business Standard

Oversupply of vessels to rule the market for at least three more years says analyst

Dry cargo demand fundamentals are falling back in terms of offering proper comfort to ship owners and alleviate oversupply issues, as Chinese iron fixtures are on a downward trend with port stockpiles of iron ore, coal and steel being at elevated levels.
[Read More]
Source: Hellenic Shipping News

GE Capital is Co-Agent on $145 Million Cash Flow Credit Facility for Vigor

NORWALK, Conn.--(BUSINESS WIRE)--GE Capital, Corporate Finance today announced it is co-administrative agent on a $145 million cash flow-based credit facility for Vigor Industrial LLC, a ship building and repair company. The loan is being used to support the acquisition of Todd Shipyards Corporation, a ship repair and maintenance company. GE Capital Markets served as co-lead arranger.

“Access to GE’s institutional best practices, tailored financing options and deep industry expertise means smarter capital for our clients.”

Based in Portland, OR, Vigor Industrial provides ship construction, repair and conversion, barge building, industrial coating, machining, industrial real estate, and fabrication services. Todd Shipyards repairs, maintains, overhauls and rebuilds government-owned and commercial vessels. The acquisition of Todd makes Vigor the largest ship repair and building business in the Pacific Northwest.

“GE Capital’s in-depth marine industry knowledge and environmental expertise was invaluable during this transaction,” said Frank Foti, president of Vigor Industrial LLC. “In addition to providing us with capital to help expand our business, they also gave us insights into GE best practices on acquisition integration to support our strategy.”

“We go beyond providing capital to help our customers succeed,” said Tom Quindlen, president and CEO of GE Capital, Corporate Finance. “Access to GE’s institutional best practices, tailored financing options and deep industry expertise means smarter capital for our clients.”
Source: Business Wire

LDA to grow dry bulk fleet as ships stay cheap

French shipping group Louis Dreyfus Armateurs (LDA) said it could acquire more vessels on top of a recent order with a Chinese builder as it seeks to profit from attractive prices.

LDA is pursuing a "counter-cyclical" strategy to expand its fleet during a current downturn in freight, with the expectation the market will have recovered when the new ships are delivered, Philippe Louis-Dreyfus, the group's president, told reporters.
[Read More]

Source: Reuters, Forexpros

Multipurpose Shipping Market Review and Forecast 2011

The outlook for the general cargo market is far better than it has been for some years. With healthy demand and a sensible orderbook, the only caveat to that rosy outlook when this sector emerges from the downturn is the threat of competition from both dry bulk tonnage and “pure” container carriers. Both these sectors are now squeezing the breakbulk market. 

The cargoes carried by multipurpose vessels straddle the dry bulk and containership markets, so it is natural that these segments compete with MPVs for cargoes. More than that, the markets driving these sectors also drive the MPV market and the three are closely linked when it comes to future demand. In order to forecast market share, it is therefore necessary to look at how both these sectors are faring in their traditional roles.

The Drewry teams for the dry bulk and containership sectors see positive demand growth for the mid-term, albeit still at historically subdued levels. This would imply that the MPV share of these sectors should remain steady, however this does not appear to be the case.

There is always another side to the balance equation – the supply of vessels able to carry these commodities. Handy bulk carriers are the main competitor for the breakbulk demand and the dry bulk orderbook is, to say the least, overfull. This means that competition for cargoes is expected to be fierce over the next few years. 

The other side of the MPV market – general and project cargo – is also facing increasing competition from the containership and Ro-Ro fleets. Interestingly, the recession has diminished the threat from the container market as the orderbook for that sector has reduced through cancellations and slippage. That said, the current level of over-age tonnage is barely 3%, while the orderbook is a steady 24% of the current fleet. That is somewhat less than the same comparison for the MPV fleet (28%) and Handysize (34%) but still represents a steady stream of newbuilding deliveries in the medium term. These deliveries, coupled with the improving demand scenario for container volumes, should improve the supply-demand balance within the containership sector and should direct vessels away from the MPV market, so having a positive effect on rates.

Given that the MPV share of the pure container market is so low (less than 2%) it is assumed this is unlikely to show any significant change over the period. More concerning is whether – or indeed by how much – this sector will encroach on the general and project cargo demand. A number of container lines are already positioning themselves as project carriers and it is here that the real threat to the traditional MPV demand now lies.
Source: Drewry

Positive trend in ship safety, says DNV president

Singapore, 13.04.2011: “Year on year improvements in ship safety is now turning into a negative trend. This is extremely worrying and requires a stronger focus on competence development both onboard and onshore,” DNV’s President Tor E. Svensen said at Sea Asia.

“Statistics show that the accident frequency has started rising from a historic low. This trend is supported by increased pay-out from the insurance companies. Technology, rules and compliance will never bring us to the expected level of safety without focusing stronger on the human element,” Tor E. Svensen said.

“Historically, the safety focus on shipping has been on technical improvements. Most employees dealing with the operation of the vessel in a shipping company have a technical background. Audits and inspections are strongly focused on technical compliance. This technical focus has brought major improvements to ship safety. Now,” Mr. Svensen said, “is time to increase focus on the soft issues.”

“The improvement potential is great,” Svensen claims. “DNV has made some observations when performing audit and projects for shipping companies. These show that much of the training offered could be more effective with more time spent on actual training of higher quality. Shipping companies struggle to deliver training on soft skills, and few companies measure the effects of their training.”

Possible initiatives to improve safety level include safety culture mapping, crew resource management training, and safety performance monitoring through leading and lagging indicators.

“Public and regulatory focus has moved towards environmental risk and away from human safety and personnel risk. We need to re-establish the balance between safety and environmental risk. Zero tolerance to loss of human life is equally important as zero environmental damage,” Tor E. Svensen said.
Source: DNV

Attacks off the Somali coast drive piracy to record high, reports IMB

Piracy at sea hit an all-time high in the first three months of 2011, with 142 attacks worldwide, the International Chamber of Commerce (ICC) International Maritime Bureau’s (IMB) global piracy report revealed today. The sharp rise was driven by a surge in piracy off the coast of Somalia, where 97 attacks were recorded in the first quarter of 2011, up from 35 in the same period last year.

Worldwide in the first quarter of 2011, 18 vessels were hijacked, 344 crew members were taken hostage, and six were kidnapped, IMB reported. A further 45 vessels were boarded, and 45 more reported being fired upon.

“Figures for piracy and armed robbery at sea in the past three months are higher than we’ve ever recorded in the first quarter of any past year,” said Pottengal Mukundan, Director of IMB, whose Piracy Reporting Centre has monitored piracy worldwide since 1991.

In the first three months of 2011, pirates murdered seven crew members and injured 34. Just two injuries were reported in the first quarter of 2006.

Of the 18 ships hijacked worldwide in the first three months of the year, 15 were captured off the east coast of Somalia, in and around the Arabian Sea and one in the Gulf of Aden. In this area alone, 299 people were taken as hostage and a further six were kidnapped from their vessel. At their last count, on 31 March, IMB figures showed that Somali pirates were holding captive 596 crew members on 28 ships.

“We’re seeing a dramatic increase in the violence and techniques used by pirates in the seas off Somalia,” said Captain Mukundan.

He added: “The overwhelming number of vessels hijacked off Somalia took place east and north east of the Gulf of Aden. The positions of some of the attackers’ mother ships are known. It is vital that strong action is taken against these mother ships to prevent further hijackings.”

Large tankers carrying oil and other flammable chemicals are particularly vulnerable to firearm attack.  Captain Mukundan said: “Three big tankers of over 100,000 tonnes deadweight have been hijacked off the Horn of Africa this year.  Of a total of 97 vessels attacked in the region, 37 were tankers and of these, 20 had a deadweight of more than 100,000 tonnes.”

A number of countries are employing their navies to take a tough stance against piracy. In a recent show of force, commended by the IMB, the Indian navy captured 61 Somali pirates on a hijacked ship off India’s west coast.

Elsewhere, in the first quarter of 2011 nine incidents were reported off Malaysia, including the hijacking of a tug and barge off Tioman Island. Vessels were boarded in seven incidents by robbers armed with guns and knives.

Five incidents have been recorded for Nigeria, with three attacks against vessels in Lagos. Crews in the area are reporting increased violence, including one incident where all 27 crew members were injured.  IMB’s concerns about an expansion of Nigerian-style piracy have been heightened by the hijacking of a chemical tanker off neighbouring Benin, which its captors finally directed to Lagos.

IMB’s Piracy Reporting Centre (PRC) is the only manned centre to receive reports of pirate attacks 24 hours a day from across the globe. IMB strongly urges all shipmasters and owners to report all actual, attempted and suspected piracy and armed robbery incidents to the IMB Piracy Reporting Centre. This first step in the response chain is vital to ensuring that adequate resources are allocated by authorities to tackle piracy. Transparent statistics from an independent, non-political, international organization can act as a catalyst to achieve this goal.
Source: ICC Commercial Crime Services

Dry bulk market keeps on falling, on low demand and high supply

The dry bulk market has kept its falling patern this week, with the industry’s benchmark, the Baltic Dry Index (BDI) retreating again yesterday to end the session down to 1,309 points, a daily slump of 1.13%. On the positive side, the Capesize market stopped tis fall, to end the session marginally higher at 0.19 percent to 1,573 points. At the same time, the constant fall of the panamax sector finally led rates lower than Capesizes. Since the beginning of the year, Panamaxes had been the top earners of the dry bulk market, in a sector’s paradox that tended to become the norm. Yesterday, the panamax segment lost further ground to end down by 2.40 percent.
[Read More]
Source: Hellenic Shipping News

Unique ABB solution for power supply to Stena Line’s vessels at Port of Gothenburg

Clean, renewable electricity from onshore means that Stena Line’s vessels Stena Germanica and Stena Scandinavica now can shut off their diesel generators during their stay at Port of Gothenburg. This pioneering project has gained a lot of interest among shipowners, ports and power utilities all over Europe.

“One important reason behind this interest is that we at ABB are pioneering a connection technology that converts 50 Hz – the standard AC frequency in Europe – to 60 Hz, which most vessels use as their system frequency, by the use of frequency converters. Furthermore, this is the largest shore-to-ship connection in terms of effect capacity in Europe ever so far,” said Ismir Fazlagic, product responsible for onshore connections at ABB.

The Gothenburg solution can therefore, also from an international perspective, imply a large-scale breakthrough for environment-friendly shore-to-ship power supply.

“The benefits are so obvious. As the diesel generators are shut off, CO2 emissions are reduced to zero when the electricity is generated from renewable sources like water, wind or solar power. During a 10-hour stay in port, the diesel generators of one single ship can produce 60 tons of carbon dioxide. In addition to this, onshore power supply means less noise in the port with surroundings and allows a more efficient maintenance of onboard equipment.

In many parts of the world, preparations are now at hand to make ports more environment friendly by using onshore power. A vital part of this process is to develop a common international standard for shore-to-ship connections.

“ABB is fully prepared with ready solutions according to the standard that is expected to come in 2011. Our conversion technology for high-voltage connection of ships with system frequency of 60 Hz is unique, now providing completely new possibilities for both ship owners and ports,” said Ismir Fazlagic.

The ABB delivery included, apart from design and commissioning, power transformers, frequency converters, medium-voltage switchgear, building, ventilation equipment as well as monitoring and safety equipment.

“We supply complete systems, optimized for efficient and sensible onshore connection of ships and based on module-based solutions. This means that they can easily be expanded, step by step according to the needs,” added Fazlagic.

In addition, the modular substations provide improved security as well as wind and weather protection. The design of the substation buildings can also easily be adapted to the surroundings and furthermore, the complete infrastructure requires minimal footprint on the dock.

ABB was the world pioneer in providing high-voltage power to ships via cable from the grid onshore. It was actually here in Gothenburg that the very first installation was made in 2000, which later helped Port of Gothenburg win two environmental awards: EU:s ”Clean Marine Award 2004” och Lloyd´s Lists ” Clean Seas Award 2008.”
Source: ABB

NOL commits to burning low-sulphur gasoil at Singapore port

Singapore-based liner NOL Group has committed to burn low-sulphur marine gasoil (MGO) on all its vessels calling at the port of Singapore, effective 13 April.
[Read more]
Source: Seatrade Asia

Port Tracker expects April US container traffic to rise 9pc

IMPORT cargo volume through US container ports is expected to rise nine per cent in April year on year, according to the monthly Global Port Tracker report released by the National Retail Federation and Hackett Associates.
[Read More]
Source: Sea News

Hamburg Süd: Pleasing 2010 business year

Hamburg Süd’s performance at a glance

Following the historic crisis year of 2009 and a first-time ever decline in global transports in container liner shipping, 2010 saw an unexpectedly sharp volume rise.

Hamburg Süd, too, benefited from a resurgent world economy along with her Brazilian sister company Aliança as well as the tramp activities operating under Rudolf A. Oetker (RAO) and Furness Withy Chartering. Shipment volume in the container liner services last year came to roughly 2.9 million TEU (1 TEU = 20-foot standard container), equivalent to a gain of 23 per cent on 2009.

As, in addition to volumes, freight rates recorded a moderate recovery, turnover in liner shipping added a good 45 per cent to just under EUR 3.9 billion. With the inclusion of conventional break-bulk and product tanker operations, the shipping group’s total turnover increased to some EUR 4.4 billion, 39 per cent up on 2009.

Even in the difficult year of 2009 employee numbers in the Hamburg Süd Group had seen little reduction, so that the powerful growth in business volume in the reporting year could be handled with a rise in the total workforce of just 1.3 per cent. An average of 4,099 staff were employed in the Group in the 2010 financial year. Taking account of trainees, and the seamen serving on the Group’s vessels under third-party hire, the number of employees totalled 4,870, a rise of 1.6 per cent compared with 2009.

After the shipping division had been forced to accept a slight loss for the first time in 2009, it succeeded in achieving a pleasing result again in 2010. Operational cash flow increased significantly in comparison with the previous year, enabling capital spending – which also enjoyed a powerful boost to EUR 429 million – to be financed from the company’s own resources.

Economic environment

Following the crisis year of 2009, the world economy and world trade recovered faster than many experts had anticipated as recently as a year ago. Global container liner shipping benefited from this development especially. Growth of 12.1 per cent, to a total of 139 million TEU, topped even the record level of 137 million TEU seen in 2008.

Guarantors of speedy recovery were chiefly the Asian economies, especially the People’s Republic of China. Heavy demand for raw materials spurred on bulk shipping. Rising consumption and stock replenishment in the industrialised nations had a positive impact on Chinese exports and helped many Asian container trade lanes to a fast renaissance.

Capacity utilisation of the global merchant fleet rose significantly. This was driven by higher cargo volumes and the policy of almost all shipowners to idle ship capacity in addition to initiating slow-steaming programmes. The proportion of unemployed, laid-up vessels stood at 11.7 per cent (572 ships) as late as December 2009 but dropped to 1.5 per cent (127 ships) by September 2010 due to swiftly rising demand for shipping space. Only towards the end of the year did this figure increase slightly to 2.5 per cent (147 ships). This increase, however, is within the normal range of seasonal fluctuations.

As capacity growth, prompted by an influx of newbuildings and the reactivation of lay-ups, was lower than the rise in cargo volumes, freight rates were also able to recover. This was the case, in particular, on the major East-West routes, which run from Asia to Europe and North America. On Hamburg Süd’s North-South routes, rates also moved higher, but remained significantly below the level of 2008.

Traditionally, rising shipment volumes have a positive effect on the charter market and the corresponding daily rates for vessel charters. In 2010, therefore, significant increases were seen in part, especially in large tonnage (above 3,500 TEU), but they are even now still not sufficient to fully cover vessel running costs in addition to servicing the capital for financing the vessels.

The prices for the fundamental ship fuel, bunker, continued to climb, standing at just under 500 USD/to at year-end. On the annual average, the bunker price almost reached the record high of 2008. Given the USA’s economic problems and the doubts about the financial stability of some eurozone countries, the exchange rate for the US currency fluctuated between 1.43 USD/EUR and 1.22 USD/EUR. As a result, the Group’s key revenue currency displayed high volatility.

Conventional bulk shipping was able to benefit from growth in the BRIC states in 2010, especially China. Added to this, there was a strong grain season in South America, above all in Brazil. However, the bulk sector had to contend with substantial deliveries to a far greater degree than liner shipping, with the result that the charter rates for Panmax bulkers of 35,000 USD a day at times fell back to approximately 20,000 USD a day towards the end of the year.

In view of stagnating shipment volumes and high newbuilding entries, cost-covering employment of the vessels was, as in previous years, hardly possible for most market participants in the product tanker market.

Liner shipping

In 2009, after the first volume decline since the introduction of containers ships had occurred, Hamburg Süd boosted its shipment volume in 2010 by 23 per cent to roughly 2.9 million TEU. This gave the Group significantly stronger growth than the market and exceeded the 2008 level by some 8 per cent.

The trade lanes from Asia, Europe and North America recorded particularly strong gains. By contrast, Brazil’s, Australia’s and New Zealand’s exports were dampened by the strong local currencies.

Freight rates also recovered but, in contrast to volumes, did not reach the levels of 2008 in Hamburg Süd’s trades. This is less than pleasing in so far as increases to a level roughly on a par with 2008 were recorded in the energy-dependent costs (bunker).

In 2010 Hamburg Süd further expanded its liner service network. The service from US West Coast was extended beyond Mexico through the Panama Canal to Cartagena, Colombia. This produced numerous trans-shipment options for the main services from Australia, Europe and South America running through the Caribbean. Furthermore, since March 2010, the shipping group has been providing a connection between East Coast South America and the Middle East with trans-shipment in Tangiers, Morocco. Various services between northern Europe and the Mediterranean were restructured. Moreover, capacities in several trade lanes were adjusted to meet increased volumes by, for instance, the establishment of additional temporary services (peak season slings).

Hamburg Süd’s liner business performed significantly better than planned in 2010. Liner turnover added 45 per cent, to approximately EUR 3.9 billion, a consequence of the volume and rate growth previously described. The result reached a historic peak. However, there were increasing signs of a significant “cooling off” at year-end, especially in rates.

Tramp shipping

The result in bulk shipping was also well above target, rising strongly in comparison with the previous year. Employed largely in the spot market, Panmax bulkers benefited from the unexpectedly rapid recovery of China and India in particular. Supramax bulkers, which operate chiefly in the contract business, likewise stood up well. Expiring cargo contracts were renewed and new contracts added. The chartering-in of new tonnage and the renewal of existing charters enabled the fleet to be successfully modernised and expanded. Product tankers more than held their own in a very challenging market environment and also made a positive contribution to the Group’s overall result.

Vessels and containers

As of 31 December 2010 the fleet operated by the Hamburg Süd Group comprised a total of 169 vessels, 40 of them Group owned, with 113 employed in the liner services and 56 in the tramp division. As a result of strong cargo growth and very favourable charter rates, above all at the start of the year, additional ships were chartered in and owned capacities further built up as planned. Slot capacity of the container ships deployed in the liner services rose by 22 per cent, to around 371,000 TEU, in comparison with the previous year.

Last year the shipping group put four new owned ships into service: the “Cap Jackson” and the “Cap Jervis”, two 4,600 TEU container vessels, were phased into the liner services from Asia via Mexico to South America West Coast. In the shape of the 7,100 TEU “Santa Clara”, in October 2010 Hamburg Süd put the largest ever ship in its history into service. She is deployed in the trade between Asia and South America East Coast, as is the identical “Santa Isabel”, which joined her at the end of the year.

Powerful cargo growth and the procurement of sufficient container capacity presented logistics with major challenges. In late 2009 Hamburg Süd was the first liner shipping company to begin ordering new containers in China. In all, 77,000 units were added. This increased the container pool by 17 per cent, to some 396,000 units as of 31 December 2010, with a disproportionate growth in reefer containers being recorded.

Outlook

The continuing financial crisis in important European countries, the but slow recovery of the US economy, as well as the associated effects on export nations like China, but Germany too, make any forecast for 2011 difficult. This uncertainty is aggravated by local crises, such as the unrest in Egypt, the civil war in Libya and natural disasters like the floods in Australia and the earthquake in Japan, with the ensuing damage to the nuclear power station in Fukushima. Worldwide shipping does not depend solely on the development of trade flows, but also on efficient infrastructure in the ports, the hinterland and on canals. Disruptions, like the nuclear accident in Japan, result not just in danger to seamen and vessels, but also in loss of revenue and additional operational costs due to unplanned rerouting, schedule disruption and additional safety measures.

In the first quarter of 2011, cargo volumes in most trades matched expectations, despite the disruptive factors described. Freight rates, in contrast, are under pressure almost everywhere, and this against the backdrop of continuing rises in bunker prices, which cannot be passed on to customers sufficiently by way of corresponding surcharges. An added factor is that the discounts or improvements in terms negotiated between shipping companies and service providers during the 2008/2009 crisis cannot be held, leaving lines with additional cost increases to absorb.

During the shipping crisis many vessel owners negotiated order cancellations or the deferment of newbuilding deliveries with the yards. The ships that were delivered, mostly in the size class in excess of 10,000 TEU, are now deployed on the major East-West trade lanes, where they displace smaller vessels which are positioned in the East-West trades instead and are currently leading to capacity overhangs here and there. Although financially strong shipping companies have been ordering ships again since mid-2010, there is at present no reason to assume that continuing overcapacity will occur in the medium term. As the requirements of the financing banks, both in relation to equity capitalisation and the preconditions for granting outside capital, have risen considerably, speculative orders of the type seen prior to the crisis are unlikely. Additionally, many shipping companies ran down their container inventories in the crisis through sell-offs or scrapping. The absence of ready funding opportunities and a hesitant build-up of production capacity by the container manufacturers in China are leading to occasional bottlenecks in equipment supply.

Hamburg Süd intends to grow further in its core business fields. Impetus is expected again in the second half of the year from, above all, the Asian region as well as from Europe. The outstanding domestic economy and the strong currency are buttressing Brazil’s demand for commodities and, with it, the economic development of South America overall.

The growth of the Hamburg Süd Group will also lead to additional jobs, whose number is expected to rise by more than 10 per cent in the current year.

Hamburg Süd will continue to pursue its strategy of increasing the owned share of ships and containers in the years ahead. Up to and including 2012, eight more “Santa” class vessels and four smaller (3,800 TEU) ships are to be delivered. In total, this is equivalent to a capacity gain of a good 20 per cent of the existing fleet. Moreover, to safeguard the growth planned for the years to come, Hamburg Süd ordered six 9,600 TEU ships in March 2011, with an option on a further four. They are due to be delivered in 2013/2014 and deployed in the South America services.

Apart from the prime goal of continuing profitable business growth, further implementation phases of the worldwide EDP project GLOBE are pending in 2011. Additionally, the Hamburg Süd Group will continue to direct close attention to measures for efficiency increases in ship operation and to conserving natural resources. Common rail engines with direct injection, for instance, as well as pre-swirl solutions, which minimise turbulence in front of the ships’ screws and consequently reduce bunker consumption, are being used on the new vessels of the “Santa” class for the first time. As part of environmental monitoring, since the start of 2011 customers have had the possibility of calculating the CO2 output of their shipments on the company’s website with the aid of a carbon footprint calculator.

Against the backdrop of what has proved a more unsatisfactory revenue development in the first quarter and the continuing pressure on freight rates, it is currently to be assumed that Hamburg Süd will not be able to achieve last year’s very good liner result again in 2011. As bulk carriers’ revenues are also trending weaker and overcapacity in product tankers is persisting, the shipping group’s result and cash flow this year will presumably fall short of last year’s levels.
Source: Hamburg Süd

DryShips Announces Pricing of Private Offering of Senior Unsecured Bonds

DryShips Inc. (NASDAQ: DRYS) (the "Company" or "DryShips"), a global provider of marine transportation services for drybulk and petroleum cargoes and off-shore contract drilling oil services, announced today the pricing of $500 million aggregate principal amount of 9.5% Senior Unsecured Bonds Due 2016 (the "Bonds") offered by its majority-owned subsidiary Ocean Rig UDW Inc. ("Ocean Rig") in a private placement. The offering has been made to Norwegian professional investors and eligible counterparties as defined in the Norwegian Securities Trading Regulation 10-2 to 10-4, to non-United States persons in offshore transactions in reliance on Regulation S under the Securities Act of 1933, as amended (the "Securities Act") and in a concurrent private placement in the United States only to qualified institutional buyers pursuant to Rule 144A under the Securities Act.

The proceeds of the offering are expected to be used to finance Ocean Rig's newbuilding drillships program and general corporate purposes. The offering is scheduled to close on April 27, 2011, subject to customary closing conditions.

The Bonds have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States or to or for the benefit of U.S. persons unless so registered except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable securities laws in other jurisdictions.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Bonds, nor shall there be any sale of the Bonds in any jurisdiction in which such offer, solicitation or sale is unlawful. Any offer of the Bonds will be made only by means of a private placement memorandum.

In the European Economic Area, with respect to any Member State that has implemented Directive 2003/71/EC (together with any applicable implementing measures in any Member State, the "Prospectus Directive") the information in respect of the Bond offering is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Directive.
Source: DryShips

Maersk expects to opt for 10 more mega ships

Denmark's A.P. Moller-Maersk (MAERSKb.CO) expects to exercise its option in June to order 10 more huge container ships to be built by Daewoo Shipbuilding & Marine Engineering (042660.KS) at a cost of $1.9 billion.
[Read More]
Source: Reuters