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IndiaShipping Industry
In this issue:
Effects of Recession:
Overseas shipping &logistics firms droppinganchor in Indian waters
Chennai Port records afall in cargo throughput
Alang set to break downits 5,000th ship
With prices sinking by 40pc second-hand shipsbecome hot buys
Growth, Expansion andDevelopments:
Bharati Shipyard to buymore shares of GreatOffshore
Passenger ships rootingfor direct Dhaka-Kolkatashipping route
Petroleum coke unloadingrecord set at Vizag Port
Gangavaram port provesmettle in coal discharge
GE Shipping deliversHandymax ship
HSL to float first of sixvessels for Good EarthMaritime this month
Samsara becomes 1stliner shipping agency toopen offices in Jalandhar
& Chandigarh
SCI places orders for 2AHTSVs with CochinShipyard
Maersk Logistics &Damco to combine as newmarket force
Shipping Industry Updates
Issue No 6
June 2009
Effects of Recession:
Overseas shipping & logistics firms dropping anchor in Indian waters
Hit by the global economic crisis, oveRs.eas shipping and logistics companies
are looking at India for business opportunities. During the last two months, at
least three global shipping companies have dropped anchor to tap the market
in the country. Indeed, even several who were here earlier are now planning
to expand their presence. Doehle Danautic Logistics (DDL), part of the
Hamburg-based Peter Doehle Group, started its Indian operations in March.
More
Chennai Port records a fall in cargo throughput
The ongoing slump in the manufacturing sector has pulled down the
throughput of project cargo at Chennai Port. Weak demand in the oveRs.eas
market since the past few months has resulted in the countrys manufacturi ng
sector nearly stalling its production to prevent inventory pile up. This
slowdown in commodity trading has consequently jolted the cargo handling
sector in the country, with all the major ports witnessing an acute shortage in
project cargo handling consignments.
More
Alang set to break down its 5,000th ship
Shipbreaking activities are in full swing at the worlds largest shipbreaking
yard, Alang, even as the world is passing through an economic downturn. In
fact, it is the meltdown that has driven more ships to this scrapyard because
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Panprojects executingmajor ODC contract forBombardier
SCI to hike freight rate onISE service & BAF
GE Shipping takesdelivery of LR1 ProductfTanker
Security aspects of ports& shipyards beingreviewed
Mercator to buy 3 bulkvessels
MSC to effect raterestoration from July 1
SCI to apply BAF onSMILE service
SCI, ONGC planning torevive JV, hire consultant
SCIs expansion plan
staysHajara
CoPT to developdedicated terminal forLakshadweep ships
ABG Shipyards Q4 profitrises by 13 pc
ABG, Bharati slug it outfor Great Offshore pie
SCI extending SMILEservice to Port Pipavavfrom July 14/15
Despite downturn, VCTPLtakes confident strides
MFC uses multi-modelmode for ODC delivery
Wartsila India to operate& maintain dry dockfacility at Paradip Port
Mundra Ports latestfacility for car carriersinstalled by Lift & ShiftIndia with precision
International Updates:
Underemployed shipsbecome warehouses forempty boxes
CMA CGM announces raterestoration on Asia-Europe trades
Baltic Dry Index surges by5.4 pc
of the diminishing global trade which has made the cost of underutilized or
idled ships prohibitive. Some 130 ships are being broken simultaneously now.
And the yard is expected to break its 5,000th ship during the current fiscal,
with 4,804 ships already having been demolished here.
More
With prices sinking by 40 pc second-hand ships become hot buys
The global economic downturn may have sent the ex-im trade into a tizzy,
and sent freight rates crashing with an excess of shipping capacity chasing
diminishing cargos, but, according to maritime observers, the glut of carrying
capacity has sent prices of used ships nose-diving by as much as 40 per
cent, giving scope for shipping companies in countries like India to augment
capacity and tonnage.
More
Growth, Expansion and Developments:
Bharati Shipyard to buy more shares of Great Offshore
MUMBAI: Bharati Shipyard Ltd. will acquire additional shares of Great
Offshore Ltd.up to 20 per cent of its paid-up equity share capitala
company release said.
More
Passenger ships rooting for direct Dhaka-Kolkata shipping route
A new business opportunity is likely to present itself for the passenger
shipping companies in Kolkata. A parliamentary panel in Dhaka has
recommended launching a direct passenger shipping route between Dhaka-
Kolkata in a bid to boost regional tourism and strengthen trade relations
between India and Bangladesh.
More
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VLCCs being booked justto store diesel
MaerskLine to effect ratehikes from July & Sept.
EU preparing proposals tocap shipping emissions
Worlds largest bunkertanker launched
Singapore promotesintelligent port & shippingservices
Baltic Dry Index postssteepest fall since April
OOCL wins Best LinerOwner/Operator Award atSeatrade Asia function
Foreign Tie-up:
Rare European Unionhonour for IRS
Government Supportsand Actions:
High court ruling to comehandy to importerscaught on IE code muddle
Newly appointed shippingminister firm onSethusamudram Project
UPA to bring back pastglory of Kolkata Port trust
Shipping Ministry toaward Rs. 3,300-crprojects in 100 days
Trinamool win to infuse
new life into Haldia port
Corpus for tonnageacquisition mooted
PPP port projects to comeunder MoS scanner
MoS panel examiningways to improve MajorPorts efficiencies,capacities & earnings
Others:
MISC refitting boxship asarmed escort to combatpirates
Pirates board & make offwith engine parts
InterManager coming togrips with criminalisationof crew
VCT reserves plot for
Petroleum coke unloading record set at Vizag Port
Visakhapatnam Port has established an all-time record in unloading of
petroleum coke in bulk in a day when 17,270 tonnes were discharged from
the vessel m.v. Crowned Eagle at EQ-8 berth on May 31. This surpassed the
previous best discharge of 17,003 tonnes that was established from the
vessel m.v. B. K. Ace on December 17, 2008.
More
Gangavaram port proves mettle in coal discharge
Gangavaram port, which has the deepest draught among ports in the country,
has proved its mettle by discharging a record 71,808 tonnes of non-coking
coal in a single day from a vessel, according to a press release. The vessel,
m.v Go Patoro, was carrying the cargo for Adani Enterprises. It was the third
fully-laden Capesize vessel the port has handled so far, the release
elaborated.
More
GE Shipping delivers Handymax ship
Great Eastern Shipping Co. Ltd. (GE Shipping) has delivered its 2000-built,
45,659-DWT Handymax bulk carrier, Jag Reena to the buyers.
More
HSL to float first of six vessels for Good Earth Maritime this month
Hindustan Shipyard Ltd. (HSL) has completed construction of a 53,000-dwt
vessel for the Chennai-based Good Earth Maritime Ltd. The vessel, Good
Pride, will be floated later this month, it is learnt. HSL is building six such
vessels for the Chennai company and Good Pride is the first of the series.
More
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saplings
Mercator augmenting fleetin crunch times
Cochin Port strike over e-port fears ends
Vizag Port takes anothershot at promoting greenenvironment
InterManager to try forclean chit to releasedIndian seafarers.
Pirates infest new waters -German ship off Omanhijacked
Worlds biggest boxship
makes maiden call atJebel Ali
Shipping industry asksfor setting up of fund
Shipping and logisticscos oppose tariff revision
in Kochi Port
Mega port Vizhinjamteeters on the brink
VCTPL celebrating 6thanniversary tomorrow
Shipping cos harbouringcredit concerns
Dhoot could join battle forGreat Offshore
Stagnant tonnage awaitsBudgetary stimulus to
grow
Ports RegulatoryAuthority Bill proposesstiff fines for violatinginstructions
Shipbreakers plan tooppose ratification of IMOconvention
Lanco pulls out ofVizhinjam ICTT project
Zoom awaits govt.response: Vizhinjam port
LIC hikes stake in BharatiShipyard to 9.66 pc
Piracy occupies top placein agenda of Middle EastWorkboats conference
Samsara becomes 1st liner shipping agency to open offices in
Jalandhar & Chandigarh
Samsara Group has become the first liner shipping agency to set up offices in
Jalandhar and Chandigarh. The offices were inaugurated in the last week of
May under the inland banner of the Group, Hind Freight Services Pvt. Ltd.
With an existing office in Ludhiana, the additions make for three offices in
Punjab and 45 offices across India, for the Samsara Group.
More
SCI places orders for 2 AHTSVs with Cochin Shipyard
The Shipping Corporation of India (SCI) has placed orders. for 2 anchor
handling, towing and supply vessels (AHTSVs) with Cochin Shipyard Ltd. on
June 4 with the option of contracting two more vessels on similar terms within
6 months. SCI is committed to the development of the shipbuilding industry
and has selected Cochin Shipyard, one of the premier shipyards in the
country, to build these vessels.
More
Maersk Logistics & Damco to combine as new market force
On September 7, the A.P. Moller-Maersk Group will merge its supply chain
management activities branded as Maersk Logistics and its freight forwarding
activities branded as Damco, under the single brand name Damco. Mr. Rolf
Habben-Jansen, CEO of Maersk Logistics and Damco, says, "Under the new,
single brand, our primary drivers. remain our passion for customers. and our
dedication to service delivery.
More
Panprojects executing major ODC contract for Bombardier
Panprojects, the projects division of the Panalpina Group, along with its
Hamburg, Germany, office, is handling a prestigious project cargo movement
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on turnkey basis, i.e. door-to-door, also involving the inland transportation of
coaches, for the Delhi Metro Rail Corporation (DMR.C). The project is being
executed for Bombardier Transportation, one of the worlds leading
transportation companies operating in two industry-leading businesses,
aerospace and rail transportation.
More
SCI to hike freight rate on ISE service & BAF
The Shipping Corporation of India (SCI) has announced a hike in freight rate
on its India to Europe ISE service. The Rate Restoration/increase will be
$200/TEU on cargo moving ex-Indian Subcontinent to the Europe sector with
effect from July 1. According to a company release, this has been
necessitated by the burgeoning operational costs and to make the service
viable in the interest of the trade.
More
GE Shipping takes delivery of LR1 Product Tanker
Great Eastern Shipping Co. Ltd. (GE Shipping) has taken delivery of its
newbuilding Long Range One (LR1) Product Tanker, Jag Aparna. The
double-hull vessel of about 74,500-DWT was built at Koreas STX Offshore &
Shipbuilding Co. Ltd.
More
Security aspects of ports & shipyards being reviewed
Unit commanders of 15 Central Industrial Security Force (CISF) units here
are reviewing the threat (both from sea and land) perceptions and security
arrangements at all ports and shipyards in the country. The unit commanders
are also being briefed on the use of modern equipment and other security
best practices.
More
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Mercator to buy 3 bulk vessels
Mercator Lines, Indias second-largest private shipping company, is
expanding its capacity and is set to acquire three gearless post-Panamax
bulk carriers totaling 2.77 lakh dead-weight tonnage (DWT) on a charter
basis. Company sources said the investment would be around Rs. 500 crore
for this additional expansion of vessels.
More
MSC to effect rate restoration from July 1
The Mediterranean Shipping Co. (MSC) has announced a rate restoration on
the India to North Europe, UK, West and East Mediterranean, and Black Sea
trades. As per a release, it will be $200 per 20 GP and $400 per 40 GP/40
HC, effective from July 1.
More
SCI to apply BAF on SMILE service
In view of the continuous increase in bunker cost, the Shipping Corporation of
India (SCI) is applying a Bunker Adjustment Factor (BAF) of $35/TEU on its
SMILE service.
More
SCI, ONGC planning to revive JV, hire consultant
Shipping Corporation of India (SCI) and Oil and Natural Gas Corp (ONGC)
are planning to revive a proposed joint venture for services related to vessel
operations and are working on hiring a consultant for the purpose.
More
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SCIs expansion plan staysHajara
The Shipping Corporation of India (SCI)the countrys premier flag carrier
is determined to grow by acquiring new vessels as well as through other
expansion projects in order to serve the ex-im trade, stressed Mr. S. Hajara,
Chairman and Managing Director of SCI. He was addressing a press meet
here on Monday called to announce the companys audited financial results
for the year ended March 31, 2009.
More
CoPT to develop dedicated terminal for Lakshadweep ships
A dedicated terminal for Lakshadweep-bound passenger and cargo ships will
reportedly be constructed at Cochin Port at an estimated cost of Rs. 32 crore.
Five hectares of land have already been earmarked in the Cochin Port Trust
(CoPT) area (on the western side of Willingdon Island, between South Coal
Berth and Workshop Jetty) for this purpose.
More
ABG Shipyards Q4 profit rises by 13 pc
ABC Shipyard Ltd. has posted a net profit of Rs. 51.96 crore for the fourth
quarter of 2008-09, as against Rs. 46.05 crore in the corresponding period of
2007-08, working out to an increase of 12.83 per cent. For the entire fiscal,
ABG reported a net profit of Rs. 171.10 crore, as against Rs. 160.68 crore in
2007-08.
More
ABG, Bharati slug it out for Great Offshore pie
Great Offshore, a supplier of rigs used for offshore drilling, found itself at the
centre of a takeover battle on Tuesday, following an unsolicited bid by ABG
Shipyard to counter an ongoing open offer from Bharati Shipyard, which
retaliated by buying a large chunk of shares at a higher price in the morning,
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and by announcing a further revision of its bid price in the evening.
More
SCI extending SMILE service to Port Pipavav from July 14/15
The Shipping Corporation of India Ltd. (SCI) has announced that the port of
Pipavav will be included in its SMILE service to cater to coastal cargo from
Pipavav to Cochin and Tuticorin. In addition, the service will cater to the Far
East, Europe and Red Sea cargo. The current SMILE service rotation is:
Colombo, Cochin, Jawaharlal Nehru Port, Mundra, Jebel Ali, Mundra, Cochin,
Tuticorin, Colombo.
More
Despite downturn, VCTPL takes confident strides
Deal with Orissas Vedanta Aluminium may fetch project cargo . The Visakha
Container Terminal Pvt. Ltd. (VCTPL) is poised to cross the one-lakh-TEU
mark in 2009-10, Capt. Sriram Ravi Chander, Chief Operating Officer, said.
More
MFC uses multi-model mode for ODC delivery
Over dimensional cargo (ODC) and project cargo mover, Mumbai-based MFC
seems to be taking advantage of the booming project cargo market in the
country. Of late, it has employed multi-modal transport to service its
customers efficiently. Ever since it moved two IOC reactors, at Haldia, last
year, the company has bagged similar ODC consignments.
More
Wartsila India to operate & maintain dry dock facility at Paradip Port
Wartsila, a global leader in providing complete lifecycle power solutions and
services for the marine and energy markets, has been given a contract to
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operate and maintain the dry dock at Paradip Port. The facility, which offers.
various activities related to repairs. of mid-size and small-size ships, and is
spread over 1,800 square metres, is designed to cater to dry dock repairs.,
afloat repairs., modification, conversions and re-fit of ships.
More
Mundra Ports latest facility for car carriers installed by Lift & Shift India
with precision
Mundra Port now has a new link bridge to be used for the export of cars. The
contract for installation of this bridge was awarded to Lift & Shift India Pvt.
Ltd., which safely completed it on June 21-22, well within the stipulated time-
frame. The link span bridge, of 55 m length and weighing 350 tonnes, was
towed from Singapore on a pontoon barge.
More
International Updates:
Underemployed ships become warehouses for empty boxes
Nearly all the boxes aboard one of the worlds largest containerships were
reportedly empty and bound for Asia from Morocco. "Most will wait far longer
than they would have two years ago before returning full to Europe," said a
report. Shippers wanting to send goods from Asia to Europe have sometimes
offered a zero freight rate, providing they cover fuel and terminal handling
charges, the report explained.
More
CMA CGM announces rate restoration on Asia-Europe trades
In its continued effort to provide customers. with the same reliable and
efficient services they are accustomed to, the CMA CGM Group has decided
to restore freight rates in the Asia-Europe trade to a more sustainable level.
The new rate increases will apply to all cargo and commodities moving
westbound from Asia to Europe, and will be effective from July 1.
More
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Baltic Dry Index surges by 5.4 pc
The Baltic Dry Index, a measure of shipping costs for commodities, climbed
by 187 points, or 5.4 per cent, to 3,681 points, following demand for raw
materials from China. A broad-based improvement in commodities demand
has compounded the fact that Chinese steelmakers are buying more iron ore
overseas.
More
VLCCs being booked just to store diesel
Trading companies have booked two brand new very large crude carriers.
(VLCCs), in a rare move, just to store diesel off Singapore waters or North-
West Europe from this month, taking advantage of the contango market amid
a demand slump. Some 520,000 tonnes of South Korean diesel will be lifted
this month, and will be anchored in those areas on the vessels Front Queen
and Caeser, traders said.
More
MaerskLine to effect rate hikes from July & Sept.
MaerskLine has announced rate increases on its services between Europe
and the Middle East and South Asia. The trading conditions for carriers.
operating in these markets are still subject to unacceptable rate levels and the
situation is unsustainable in the longer term, the line said in a release.
More
EU preparing proposals to cap shipping emissions
The European Commission will take steps to restrict carbon emissions from
shipping in case the global maritime industry fails to come up with its
proposals soon, an EC official said. A conference in Copenhagen in
December is expected to agree to a successor to the UNs Kyoto Protocol on
fighting climate change, and the shipping industry faces mounting pressure to
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bring forward a system to curb emissions.
More
Worlds largest bunker tanker launched
After achieving the highest-ever bunker sales in May, Hong Lam Marine here
has launched the worlds largest purpose-built bunker tanker at the Marina in
Keppel Bay. The 22,000-DWT tanker Spectrum was built in collaboration with
Hong Lam and Toyota Tsusho Corp (TTC).
More
Singapore promotes intelligent port & shipping services
For the worlds busiest port here, technology is the watchword to ensure
efficient and round-the-clock operations and services. To enhance navigation
in Singapore ports waters. and its approaches, the Maritime and Port
Authority of Singapore (MPA) has been promoting the use of technology.
More
Baltic Dry Index posts steepest fall since April
The Baltic Dry Index, a measure of shipping costs for commodities, posted its
biggest weekly fall since April as demand for iron ore transporters weakened.
The index, tracking transport costs on international trade routes, was
unchanged on June 26 at 3,703 points, according to the Baltic Exchange. The
previous weeks 9 per cent slide is the worst since the week ended April 3.
More
OOCL wins Best Liner Owner/Operator Award at Seatrade Asia function
OOIL Chairman C. C. Tung bestowed Lifetime Achievement Award. Orient
OveRs.eas Container Line (OOCL) has been conferred the Best Liner
Owner/Operator Award at the Seatrade Asia Awards ceremony held here on
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June 25. The Seatrade Asia Awards are designed to celebrate and reward
excellence and innovation in the maritime sector across the region over the
previous 12 months.
More
Foreign Tie-up:
Rare European Union honour for IRS
European Union Commission has awarded prestigeous partnership to Indian
Registrar of Shipping (IRS) in an important and internationally collaborative
research project through a ceremonial meeting held on June 11-12 at the
University College of London.
More
Governement Supports and Actions:
High court ruling to come handy to importers caught on IE code muddle
In two landmark judgements on alleged fraudulent use of import-export code
(IE code) for importing goods at Nhava Sheva, Bombay High Court has
ruled that there is no rule or regulation for the Customs to hold back imported
goods for which duty is paid and where the IE code is valid.
More
Newly appointed shipping minister firm on Sethusamudram Project
GK Vasan, the newly appointed Shipping Minister of India, has declared that
the shipping industry will make every possible effort to implement the
controveRs.ial Sethusamudram Ship Canal Project (SSCP) for the benefit of
the larger segment of the shipping companies in Tamil Nadu. According toMr. Vasan, the Ministry of Shipping (MoS) is currently waiting for the RK
Pachauri committee to submit its report on various environmental issues that
have been raised by environmentalists in the country.
More
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UPA to bring back past glory of Kolkata Port trust
The UPA government would make take all possible steps to bring back the
past glory of Kolkata Port Trust (KoPT), minister of state for shipping Mukul
Roy said here on Saturday. A project to dress up the riverfront in key towns
along the Hooghly river seems to be also on the ministers mind.
More
Shipping Ministry to award Rs. 3,300-cr projects in 100 days
As part of the first 100-day 'action programme' of the government, the
Shipping Ministry would award projects worth more than Rs. 3,300 crore for
developing and upgrading container and cargo terminals at various ports in
the country.
More
Trinamool win to infuse new life into Haldia port
The dry spell at Haldia port looks likely to end with the Trinamool Congress
(TMC) pulling out all stops to revive the port and ensure that it does not turn
into a minor port. Haldia port, the second most important port in West Bengal
in terms of tonnage handling, was fast becoming unviable owing to escalating
maintenance costs over dredging.
More
Corpus for tonnage acquisition mooted
The Union Ministry of Shipping (MoS) has suggested the setting up of a
finance corporation or a dedicated corpus under a refinancing corporation to
provide funds to the shipping industry which is finding it extremely difficult to
source funds to acquire tonnage.
More
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PPP port projects to come under MoS scanner
As part of the Union governments 100-day programme, the Ministry of
Shipping (MoS) will review the various port projects proposed under the
public-private partneRs.hip (PPP) mode, the Union Shipping Minister, Mr. G.
K. Vasan, said.
More
MoS panel examining ways to improve Major Ports efficiencies,
capacities & earnings
Captive land use policy in sharp focus
A committee formed by the Ministry is reportedly considering proposals on a
revised land use policy for Major Ports, which are under the Union
governments jurisdiction. The existing policy discourages Major Ports from
taking decisions on issues that can improve their capacity and earnings.
More
Others:
MISC refitting boxship as armed escort to combat pirates
MALAYSIAs MISC Berhad is reportedly refitting one of its containerships as
an armed vessel to combat pirtes off the Somali coast in the Gulf of Aden.
After pirates seized two of its ships, the ocean carrier had decided to take
effective steps against the buccaneers.
More
Pirates board & make off with engine parts
Pirates boarded the Panama-registered bulk carrier Garnet outside port limits
(OPL) anchorage off Tanjung Ramunia and Tanjung Ayam on the south-east
coast of Johor and made off with some engine parts.
More
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InterManager coming to grips with criminalisation of crew
InterManager, the international trade association for in-house and third party
ship managers, has underlined its commitment to ridding the industry of crew
criminalisation by creating an industry-wide think-tank that it hopes will
translate its findings into international law.
More
VCT reserves plot for saplings
The Visakha Container Terminal Pvt. Ltd. (VCTPL) has observed the World
Environment Day by reserving an area of 100 x 10 metres to plant saplings.
Mr. M. Ponnuswamy, Commissioner of Vizag Customs, inaugurated the
function by a symbolic planting of a sapling.
More
Mercator augmenting fleet in crunch times
Even as the shipping industry is grappling with the economic downturn by
either disposing of some of their fleet or cancelling orders for newbuildings,
Mercator Lines Ltd. is reportedly planning to acquire three gearless post-
Panamax bulk carriers at a cost of around Rs. 500 crore.
More
Cochin Port strike over e-port fears ends
The trade unions at Cochin Port have called off the agitation following an
agreement reached with the Port management on June 8. The workers were
agitating against the new manning scales recommended by the National
Industrial Tribunal Award and implemented by the Cochin Port Trust (CoPT).
More
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Vizag Port takes another shot at promoting green environment
The Visakhapatnam Port Trust (VPT) celebrated the World Environment Day
recently with the VPT Chairman, Mr. Ajeya Kallam, launching the dust
pollution mitigation work. He inaugurated the pump house which has a
1,00,000-litre capacity groundwater tank and a water filling station which
allows lorries to sprinkle water over the iron ore stacks and on roads in the
ore handling complex (OHC) area to control dust pollution from the iron ore
plots.
More
InterManager to try for clean chit to released Indian seafarers.
The release of Capt. Jasprit Chawla and Chief Officer Syam Chetan of the
Hebei Spirit last week, after an enforced stay of 551 days in Korea, some of it
in jail, has been hailed by the global shipping industry. The two officers had
been incarcerated following the Hebei Spirit spilling oil after a collision with a
Samsung vessel in December 2007 off the Korean coast, an accident which
most agree was the fault of the latter.
More
Pirates infest new waters - German ship off Oman hijacked
SOMALI pirates have seized a German-owned cargo ship, Charelle, off
Oman, the first recorded attack in waters far from their usual Somali coastal
habitat. "This is the first case outside normal operations area of the pirates,"
remarked Lt. Cmdr. Alexandre Fernandes of Portugal aboard the frigate
Corte-Real, part of the North Atlantic Treaty Organisations (NATO) flotilla
deployed against the pirates.
More
Worlds biggest boxship makes maiden call at Jebel Ali
THE 11,000-TEU Emma Maerskthe worlds largest containeRs.hip
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reportedly called in at Jebel Ali port for the first time. The Emma Maerskis
nearly 400 metres long and 56 metres wide, with 30 cabins on its 22 floors.
More
Shipping industry asks for setting up of fund
The shipping industry on Sunday asked the government to set up a fund to
help the industry to get finances for projects with loans increasingly drying up.
The Indian shipping industry finds it difficult to raise money from the global
market because of the global economic crisis triggered by the collapse of
Lehman Brothers in September 2008.
More
Shipping and logistics cos oppose tariff revision in Kochi Port
A general tariff adjustment decision taken by the Kochi port authority has
irked shipping companies and logistics service providers (LSPs) operating in
the port. In order to resolve the issue, the Tariff Authority of Major Ports
(TAMP) had called a meeting of shipping and logistics firms and the terminal
operator on June 20 in the ports premises.
More
Mega port Vizhinjam teeters on the brink
Keralas infrastructure sector appeared on the brink of a major setback today
as its dream project of the Vizhinjam container terminal here seemed to teeter
on the brink, with unconfirmed reports that the winner in the original bid,
Lanco Kondapalli Power had opted to withdraw from the project.
More
VCTPL celebrating 6th anniversary tomorrow
The Visakha Container Terminal (VCT) here is celebrating its 6th anniversary
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on June 26. The celebrations will begin with a Pooja at 0900 hrs. A blood
donation camp has been organised on Friday between 08.00 hrs. and 12.00
hrs. Mr. Ajeya Kallam, Chairman of the Visakhapatnam Port Trust (VPT), will
inaugurate this camp at 08.00 hrs. at the VCT premises.
More
Shipping cos harbouring credit concerns
The bleak market scenario has dashed the hopes of Indian shipping
companies who were in expectation of an imminent revival. With commodity
trading picking up slightly in the domestic market and major ports in the
country showing improvements in cargo throughput, the shipping companies
in India were anticipating normalcy to resume soon.
More
Dhoot could join battle for Great Offshore
The battle for Great Offshore is likely become more intense now as Videocon
Chairman Venugopal Dhoot has dropped hints that he could join the race for
the integrated oilfield services provider. "I would not sell my 3 per cent stake
in Great Offshore.
More
Stagnant tonnage awaits Budgetary stimulus to grow
Domestic shipping tonnage has remained flat during the last five months of
this calendar year, thanks to the funds crunch and the global recession.
Although, the number of ships in the national fleet has marginally increased,
the gross tonnage (GT) has hovered around 9.3 million tonnes during
January-May.
More
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Ports Regulatory Authority Bill proposes stiff fines for violating
instructions
The proposed Ports Regulatory Authority Bill, when implemented, will fine
Port authorities and private operators up to Rs. 1 crore if they violate orders of
the port regulator, it is learnt. At present, the maximum penalty is just Rs.
10,000.
More
Shipbreakers plan to oppose ratification of IMO convention
Indian efforts to approve and ratify the latest International Maritime
Organisation (IMO) convention on ship recycling, which, according to the
agreement, should start with right earnest from August, is not going to be a
smooth affair.
More
Lanco pulls out of Vizhinjam ICTT project
Lanco Infratech Ltd. here has withdrawn from the proposed Vizhinjam
international container transhipment terminal (ICTT) "due to long delays", Mr.
V. Srinivas, Director, Corporate Affairs, Lanco Infratech, has announced.
More
Zoom awaits govt. response: Vizhinjam port
Over a week after a wave of rumours and speculation lashed the prospects of
the Rs. 5,340-crore Vizhinjam container transshipment terminal near here,
Mumbai-based Zoom Developers is still awaiting the result of the re-
evaluation of the company's bid by a committee set up by the state
government.
More
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strategy. As reported recently in Exim India, the company will soon open offices in Jamshedpur,
Ludhiana and Ahmedabad. The Norway-based Hoegh Autoliners, in which A.P. Moller-Maerskhas a
37.5 per cent stake, also proposes to open its office in India. Sources in the industry said that the
vehicle transportation firm would be commencing its services soon and proposes to make this country
as its South Asian base. AET Tanker Holding Sdn Bhd of Malaysia has opened a ship management
office in Gurgaon and may open its ship-owning subsidiary in this country in due course.
Top
Chennai Port records a fall in cargo throughput
Times Shipping Journal 08 June, 2009
The ongoing slump in the manufacturing sector has pulled down the throughput of project cargo at
Chennai Port. Weak demand in the oveRs.eas market since the past few months has resulted in the
countrys manufacturing sector nearly stalling its production to prevent inventory pile up. This slowdown
in commodity trading has consequently jolted the cargo handling sector in the country, with all the major
ports witnessing an acute shortage in project cargo handling consignments. The ongoing crisis has also
impacted Chennai Port - the largest project cargo handling port in the country. The mid-sized shippingcompanies which operate from Chennai Port have also suffered huge losses due to dip in cargo
throughput. D. Kumaresan, Director, UNI Logistics Pvt. Ltd., a mid-sized logistics company in Chennai,
says, With a number of large and mid-sized manufacturing units located in and around Chennai
slowing down their import and export activities, the project cargo traffic at the port has dropped
significantly in the past few months.
The Chennai port recorded a bumper year in 2007-08 due to the boom in the Indian manufacturing
industry. However, in 2008-09, Chennai Ports cargo throughput, which includes heavy machinery and
boilers for various industrial units, plunged by nearly 68% to 86,332. AV Abdullah, Senior Manager of
YK Shipair Travel & Cargo Agencies, a mid-sized shipping and forwarding company in Chennai, cites
another reason behind Chennai Ports negative performance. According to him, Several large
manufacturers of wind turbine blades earlier used Chennai Port to export their products to countries
such as the UK, South Africa, Belgium, Korea, the UAE and Australia. However, in the second half of
the last financial year, some of these companies have started to export their consignment from the New
Mangalore port. This has significantly affected the throughput at Chennai port.
Over the years, Chennai Port has handled the project cargo of several leading companies including
Bharat Heavy Electricals, Suzlon Energy, BGR Energy Systems, Diamond Engineering and Bharat
Earth Movers.
Top
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Alang set to break down its 5,000th ship
Exim News Service 08 June, 2009
AHMEDABAD: Shipbreaking activities are in full swing at the worlds largest shipbreaking yard, Alang,
even as the world is passing through an economic downturn. In fact, it is the meltdown that has driven
more ships to this scrapyard because of the diminishing global trade which has made the cost of
underutilized or idled ships prohibitive. Some 130 ships are being broken simultaneously now. And the
yard is expected to break its 5,000th ship during the current fiscal, with 4,804 ships already having beendemolished here. The yard had recycled as much as 1.94 million light displacement tonnage (LDT)
during 2008-09, 174 per cent more than in 2007-08.
The Alang yard had since 1982 recycled a record number of 348 ships in 1997, 347 ships in 1998 and
361 ships in 1999.
Top
With prices sinking by 40 pc second-hand ships become hot buys
...but money remains major problem
Exim News Service 21 June, 2009
MUMBAI: The global economic downturn may have sent the ex-im trade into a tizzy, and sent freight
rates crashing with an excess of shipping capacity chasing diminishing cargos, but, according to
maritime observers, the glut of carrying capacity has sent prices of used ships nose-diving by as much
as 40 per cent, giving scope for shipping companies in countries like India to augment capacity and
tonnage. According to reports, shipping companies are planning to buy vessels from the second-hand
market, instead of going in for newbuildings. Industry experts assert that the time is ripe to acquire
ships, with predictions that the prices might fall even further. At present, a five-year-old very large crude
carrier (VLCC) is priced around $84 million, whereas last year, it cost about $150 million.
Similarly, the price for a Capesize vessel has fallen to $53 million, from a high of $150 million in 2008.
Analysts say that asset prices in the second-hand market have crashed to half or even less of their
peak rates of last year due to an oversupply situation, a big dip in freight rates and the credit crisis. Dry
bulk shipping freight rates have dropped to 4,000 points in June, from last years 12,000 points. "There
is a huge possibility of distress sales of vessels due to the current downturn. Hence, we are mostly
planning to acquire ships from the second-hand market, which will be mainly for our offshore
operations," indicated a domestic player. Nevertheless, the availability of funds remains a handicap to
buying ships. Even the oveRs.eas banks are in a wait-and-watch mode. "This is a good time to buy.
Though we are not sure, prices may go down further. But the biggest challenge right now is getting
funds as banks have very little appetite for the shipping sector," explained another shipping industry
veteran.
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In line with the industrys prediction, one shipyard admitted that while its order book is full, new orders
are not forthcoming now. "The second-hand market is a viable option, as the vessel prices have gone
down, but that is happening more in the cargo segment rather than in the offshore vessel segment.
"Still, this year, we have seen a decline in new orders," the company official explained. According to
some industry experts, even newly-placed orders can be negotiated under the present circumstances.
"Taking into consideration the current situation, there is a greater possibility of negotiations for newly-
placed orders. However, for immediate requirements, people will look at secondary market as the
newbuildings will only be delivered after 3-4 years," said an observer. "Negotiation of prices is going on,
and the contracts for ships that have been placed in the last 6-9 months, are facing greater pressure for
renegotiation," he elucidated.
Top
Growth, Expansion and Developments:
Bharati Shipyard to buy more shares of Great Offshore
Exim News Service 01 June, 2009
MUMBAI: Bharati Shipyard Ltd. will acquire additional shares of Great Offshore Ltd. up to 20 per cent
of its paid-up equity share capitala company release said.
A top executive of the company said, "Considering the potential of offshore services business, we have
decided to increase our investment in Great Offshore. This acquisition will provide enhanced stability to
the existing management in Great Offshore and maximise shareholder value for both companies."
Top
Passenger ships rooting for direct Dhaka-Kolkata shipping route
Times Shipping Journal 01 June, 2009
A new business opportunity is likely to present itself for the passenger shipping companies in Kolkata. A
parliamentary panel in Dhaka has recommended launching a direct passenger shipping route between
Dhaka-Kolkata in a bid to boost regional tourism and strengthen trade relations between India and
Bangladesh. Though there used to be a direct waterway connecting Dhaka and Kolkata earlier, it was
suspended along with other air and road transportation during the Pakistan era. However, though direct
bus and train services between India and Bangladesh has resumed, there is no movement along the
sea route. The proposal of resuming direct passenger ship service between the two countries has
raised the hopes of several mid-sized passenger shipping companies in Kolkata.
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elaborated. In April, 57,000 tonnes of coal were discharged in a day at the port, the release recalled.
Top
GE Shipping delivers Handymax ship
Exim News Service 04 June, 2009
MUMBAI: Great Eastern Shipping Co. Ltd. (GE Shipping) has delivered its 2000-built, 45,659-DWT
Handymax bulk carrier, Jag Reena to the buyers. With the delivery of this vessel, the companys currentfleet stands at 37 vessels, with an average age of 10.1 years, aggregating 2.83 million dwt.
Top
HSL to float first of six vessels for Good Earth Maritime this month
Exim News Service 04 June, 2009
VISAKHAPATNAM: Hindustan Shipyard Ltd. (HSL) has completed construction of a 53,000-dwt vessel
for the Chennai-based Good Earth Maritime Ltd. The vessel, Good Pride, will be floated later thismonth, it is learnt. HSL is building six such vessels for the Chennai company and Good Pride is the first
of the series. The contract for the vessels was awarded in 2005, which is estimated to cost $ 20.10
million. All the vessels will have to be delivered by 2011.
Good Pride will carry bulk cargoes like coal, ore, cement, alumina, bauxite, mineral sand, steel coils and
packaged timber. Designed for a speed of 14 knots, it has five cargo holds and is fitted with four deck
cranes.
Top
Samsara becomes 1st liner shipping agency to open offices in Jalandhar & Chandigarh
connects more effectively with ex-im trade in North
Exim News Service 07 June, 2009
JALANDHAR: Samsara Group has become the first liner shipping agency to set up offices in Jalandhar
and Chandigarh. The offices were inaugurated in the last week of May under the inland banner of the
Group, Hind Freight Services Pvt. Ltd. With an existing office in Ludhiana, the additions make for three
offices in Punjab and 45 offices across India, for the Samsara Group. The Group has similar plans in
Amritsar in the coming months. With these developments, Samsara will be able to serve and service
customers north of the National Capital Region (NCR) much better and more intimately, as well as
strengthen the connectivity of the Northern region to the gateway ports with its private container rail
operations under Hind Terminals.
Top
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asking questions, and engaging with them to build the right solutionsbecause we want to become and
remain our customers. preferred choice in the industry when it comes to selecting a reliable, high -
quality provider across all our services," he explains. Under the new brand, Damco will continue to offer
customers.counting more than 10,000 globally, including prominent multinationals from, among
others, the retail, apparel, electronics and chemicals industries, as well as small independent importers
and exportersa broad range of logistics services covering A-to-B forwarding and time-sensitive reefer
logistics to advanced supply chain management solutions and consultancy.
"To us, its important that we think beyond the norm and that we create competitive solutions for our
customers. regardless of their size. We believe we represent the best of multiple worlds: The locally
anchored and customer-focused forwarding business combined with the advanced and visionary
solutions of our supply chain solutionsall backed by the strengths, stability and capabilities of the A.P.
Moller-Maersk Group. We have a lot to offer, even if we today may be less well-known in the market
than some of our competitors," Mr. Habben-Jansen emphasises. In the interim period between June
and September 7, the supply chain services will continue to be delivered under the Maersk Logistics
brand, and the forwarding services will continue to be delivered under the Damco brand. Combined,
Maersk Logistics and Damco offer a broad range of supply chain management and freight forwarding
services to customers all over the world. Maersk Logistics and Damco have 10,500 colleagues in 272
offices, covering over 93 countries in Africa, Asia, North America, Europe, the Middle East and Latin
America.
In 2008, the combined business had a net turnover of $ 2.8 billion, shipped more than half a million
TEUs ocean freight, air freighted over 60,000 tonnes, and handled over 50 million CBMs for its supply
chain management customers. Maersk Logistics/Damco is an independent business activity within the
A.P. Moller-Maersk Group.
Top
Panprojects executing major ODC contract for Bombardier
Exim News Service 11 June, 2009
MUMBAI: Panprojects, the projects division of the Panalpina Group, along with its Hamburg, Germany,
office, is handling a prestigious project cargo movement on turnkey basis, i.e. door-to-door, also
involving the inland transportation of coaches, for the Delhi Metro Rail Corporation (DMRC). The project
is being executed for Bombardier Transportation, one of the worlds leading transportation companies
operating in two industry-leading businesses, aerospace and rail transportation. In all, 424 coaches are
scheduled to be delivered before the inauguration of the Commonwealth Games in the Capital,
commencing in October 2010. Panalpina India, as the principal contractor, is responsible for providing
the end-to-end logistics solutions/services (both onshore and offshore) to Bombardier. A part of the
onshore services has been subcontracted to an Indian company, Allcargo Global Logistics.
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Eight coaches, urgently needed for testing by DMR.C, have already been airlifted by Panprojects on a
specially chartered AN-124 aircraft from Parchim, Germany, to New Delhi in February and May.
Moreover, 12 more coaches have arrived, via Hamburg, at Mundra Port as complete built units (CBUs).
The coaches that were brought in by air were successfully transported to DMR.C, Delhi, by road,
utilising hydraulic modular platform trailers. The coaches that arrived at Mundra were transported by rail
through special transition wagons provided by Bombardier. The first train, consisting of 4 coaches and
assembled at Bombardiers Savli facility, was inaugurated by the Chief Minister of Gujarat, Mr.
Narendra Modi, on June 5. The Panalpina Group operates a close-knit network with some 800 offices in
more than 160 countries.
Top
SCI to hike freight rate on ISE service & BAF
Exim News Service 11 June, 2009
MUMBAI: The Shipping Corporation of India (SCI) has announced a hike in freight rate on its India to
Europe ISE service. The Rate Restoration/increase will be $200/TEU on cargo moving ex-Indian
Subcontinent to the Europe sector with effect from July 1. According to a company release, this has
been necessitated by the burgeoning operational costs and to make the service viable in the interest of
the trade. SCI will also be imposing a Bunker Adjustment Factor (BAF) of $202/TEU, reflecting the rise
in oil prices, from July 1. Due to the gradual increase in oil prices, it will be segregating the BAF and will
invoice it separately, the release adds. Also, due to the increased war risk premiums for vessels plying
via the Somalia coast and the Gulf of Aden, SCI will be levying a War Risk Surcharge (WRS.) of
$50/TEU with effect from July 1.
Top
GE Shipping takes delivery of LR1 Product Tanker
Exim News Service 11 June, 2009
MUMBAI: Great Eastern Shipping Co. Ltd. (GE Shipping) has taken delivery of its newbuilding Long
Range One (LR1) Product Tanker, Jag Aparna. The double-hull vessel of about 74,500-DWT was built
at Koreas STX Offshore & Shipbuilding Co. Ltd.With this, the companys fleet of 38 vessels comprises
32 tankers (12 crude carriers, 19 product tankers, 1 LPG carrier) and 6 dry bulk carriers with an average
age of 9.9 years, aggregating 2.91-million DWT. Its current newbuilding order book comprises 8
vessels, aggregating 0.76-million DWT (2 Suezmax crude carriers, aggregating 0.32- million DWT and 6
dry bulk carriers, aggregating 0.44-million DWT).
Greatship Global gets an AHTSV
Greatship Global Offshore Services Pte. Ltd. (GGOS), a Singapore-incorporated subsidiary of
Greatship (India) Ltd. (GIL), a wholly-owned subsidiary of the Great Eastern Shipping Co. Ltd., has
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taken possession of Greatship Aditi, a 80T anchor handling tug-cum-supply vessel (AHTSV), from
Colombo Dockyard plc of Sri Lanka. The vessel has been financed via a sale and lease back
arrangement. Greatship Aditi is a DP2, FiFi1 full service vessel built to exacting specifications, and
capable of supporting offshore exploration and production around the world.
GIL and its subsidiaries currently own and/or operate six PSVs, five AHTSVs and one jack-up rig. GIL
and its subsidiaries also have an order book of 14 vessels and one rig under construction two
AHTSVs in Batam, four MPSVs in Singapore, two MSVs in India, four ROVSVs in Sri Lanka, two 150
TBP AHTSVs in Batam, and a premium 350 jack-up rig in Singapore. All Greatships vessels are built
to the highest standards of safety and operational efficiency. They conform to existing and envisaged
IMO and Class rules.
Top
Security aspects of ports & shipyards being reviewed
Exim News Service 11 June, 2009
KOCHI: Unit commanders of 15 Central Industrial Security Force (CISF) units here are reviewing the
threat (both from sea and land) perceptions and security arrangements at all ports and shipyards in the
country. The unit commanders are also being briefed on the use of modern equipment and other
security best practices. The CISF Director-General will review the status of procurement of modern
security equipment, patrol boats, dog squads as well as bomb detection and disposal equipment. The
CISF personnel propose to hold a meeting with the senior Port officials on the security management.
Deputy Conservators of a couple of ports have also been invited to the meet.
At the proposed meeting, the Cochin Port Trust Chairman will give his views on the matter, especially
as he is the Chairman of the high-powered committee constituted to review security preparedness at
ports and shipyards.
Top
Mercator to buy 3 bulk vessels
The Economic Times 11 June, 2009
MUMBAI: Mercator Lines, Indias second-largest private shipping company, is expanding its capacity
and is set to acquire three gearless post-Panamax bulk carriers totaling 2.77 lakh dead-weight tonnage
(DWT) on a charter basis. Company sources said the investment would be around Rs. 500 crore for this
additional expansion of vessels. DWT refers to how much mass or weight of cargo that a ship can carry.
This development comes at a time when the shipping industry has been grappling with weak spot
freight rates on a year-on-year basis in both dry and tanker segments. For instance, in the tanker
segment like Suezmax, freight rates are currently at $2,580 per day compared with $84,790 per day a
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year earlier, say senior industry officials. Mercator has attempted to offset this difficult operating
environment by going in for long-term contracts with its key customers.
As with all its other dry bulk acquisitions, these additional vessels will also be under its Singapore-listed
subsidiary Mercator Lines (Singapore). Out of the three vessels proposed to be acquired, two are from
the New Yangzijiang Shipyard in China, which will remain with Mercator until 2014. The third vessel is
from Sungdong Shipyard, South Korea and will be on a charter with Mercator until 2020. The existing
capacity of the companys dry bulk fleet is approximately 1.2 million DWT. Mercators own fleet currently
comprises 12 tankers. with a combined capacity of 13.7 lakh DWT, 12 dry bulkers with a combined
capacity of 8.98 lakh DWT, four dredgers with a combined capacity of 31,854 cubic metres (CBM) and a
350 feet oil jack-up rig. Mercator has diversified its revenue stream, including coal mining in Indonesia
coupled with its dredgers which are on a long-term lease and its recent acquisition of oil rigs. A
combination of long-term contracts and a diversified revenue stream helped Mercator Lines
consolidated operating income, including that of its Singapore subsidiary, touch Rs. 2,210.5 crore in
FY09 compared with Rs. 1,477 crore for FY08 translating to a 50% growth.
The profit after tax (PAT) stood at Rs. 467 crore which was a 30% growth. It is estimated that Mercator
generates nearly 45-50% of its revenues in FY09 from long-term contracts. Also, the company
generated nearly 11.5% of its topline in FY09 from non-shipping activities.
Top
MSC to effect rate restoration from July 1
Exim News Service 14 June, 2009
MUMBAI: The Mediterranean Shipping Co. (MSC) has announced a rate restoration on the India to
North Europe, UK, West and East Mediterranean, and Black Sea trades. As per a release, it will be
$200 per 20 GP and $400 per 40 GP/40 HC, effective from July 1. The rate restoration is being
implemented, the release says, in order to ensure that the high standards of MSCs service levels are
continuously maintained. "It has been MSCs endeavour to offer to all its valued customers a
comprehensive liner network and an efficient and reliable liner service at all times," the release
underscores.
MSC, the second-largest shipping line in the world, provides an unparalleled service network via
dedicated own offices throughout the world and remains a truly independent and private company able
to respond to quick market changes and implement long-term plans without unnecessary interference or
delay. As of end-May 2009, MSC was operating 410 container vessels, with an intake capacity of
1,488,000 TEUs.
Top
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SCI to apply BAF on SMILE service
Exim News Service 14 June, 2009
MUMBAI: In view of the continuous increase in bunker cost, the Shipping Corporation of India (SCI) is
applying a Bunker Adjustment Factor (BAF) of $35/TEU on its SMILE service. It will be effective
beginning with the vessel Indira Gandhi Voy 143, ETA Colombo June 19.
SMILE is a direct, independent service between the Subcontinent and the Gulf.
Top
SCI, ONGC planning to revive JV, hire consultant
PTI - 14 June, 2009
NEW DELHI: Shipping Corporation of India (SCI) and Oil and Natural Gas Corp (ONGC) are planning to
revive a proposed joint venture for services related to vessel operations and are working on hiring a
consultant for the purpose. "We will now work towards effecting a joint venture with ONGC on a fast
track basis. We would also hire a consultant soon," a senior official of the Navratna shipping companysaid. In 2006, SCI and ONGC had signed a memorandum of understanding to float the joint venture
company -- Offshore Marine Services (OMSL). OMSL was to provide "end-to-end solutions in vessel
operations" for ONGC as well as other oil and gas companies.
OMSL was to develop capabilities for acquisition, repair and maintenance of offshore floating units and
for undertaking repair and construction on long-term arrangement with various shipyards on preferential
terms. The official, however, declined to provide the details of the equity structure of the JV firm that is
being revived. In the proposed joint venture, OMSL, the two public sector undertakings were to have
24.5 per cent stake each, while PSA Marine, a wholly-owned subsidiary of the Singapore government'sPSA International, was to acquire 21 per cent stake. The remaining 30 per cent was to be held by
financial institutions. As per the earlier MoU, PSA Marine was to provide repair services to vessels.
PSA Marine, however, backed out from the venture in 2006 itself.
As per the agreements signed then, the upstream oil company would give its vessels on bare boat
charter agreement to OMSL and would retain the right of first refusal on their deployment. The JV firm
would acquire, own, maintain, operate and charter a range of offshore vessels and could also take non-
ONGC business, including acquiring vessels and other assets.
With SCI now holding the Navratna status, it would be able to pursue the JV project with greater
flexibility as the company's board has been given more powers to enter into ventures with both domestic
as well as foreign firms.
Top
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SCIs expansion plan staysHajara
Exim News Service - 16 June, 2009
MUMBAI: The Shipping Corporation of India (SCI)the countrys premier flag carrieris determined to
grow by acquiring new vessels as well as through other expansion projects in order to serve the ex-im
trade, stressed Mr. S. Hajara, Chairman and Managing Director of SCI. He was addressing a press
meet here on Monday called to announce the companys audited financial results for the year ended
March 31, 2009. SCI posted impressive results for 2008-09, registering a 15.58 per cent increase in net
profit after tax (PAT) at Rs. 940.67 crore. Total income grew by 11.69 per cent to Rs. 4,561.83 crore,while profit from operations (before other income, interest and exceptional items) shot up by 25.51 per
cent in 2008-09 to Rs. 763.15 crore.
Earnings per share was Rs. 22.21 on a face value of Rs. 10 per share. A dividend of 65 per cent has
been proposed for 2008-09, subject to the approval of the annual general body meeting (AGM). Mr.
Hajara highlighted that the total owned fleet of SCI currently stood at 78 vessels of 5.03 million DWT,
including the 319,000-DWT VLCC and two large 4,400-TEU container vessels inducted last year.
Among the additions to the fleet in 2009-10 would be a 319,000-DWT VLCC and 2 MR. product tankers,
the latter being the first to be ordered from Chinese yards. Overall, SCIs order book as on date stood at
31 vessels, aggregating 2.19 million DWT and involving an outlay of Rs. 7,500 crore, Mr. Hajara
disclosed. While the company would continue to focus predominantly on the tanker/energy
transportation sector, it had plans to expand beyond shipping into areas like terminal management,
dredging and shipbuilding, with suitable partners, Mr. Hajara disclosed. SCI was also looking at being in
the high end of the offshore market, he added.
Mr. Hajara underscored that the companys long-term vessel acquisition plans remained unchanged,
despite the global economic downturn, though it had deferred a few projects from the last financial year
to the current one, which it was looking to revive in the second half of the year. As regards the liner
segment, Mr. Hajara and Mr. J. N. Das, Director, Liner and Passenger Services division, felt that the
sector had probably bottomed out and rates seemed to be stabilising, especially on certain trade lanes.
Mr. Das pointed out that SCI had integrated its liner services, which were no longer India-centric, with
services facilitated between ports in other regions. From India, it was looking at commencing services to
the East Coast of Africa and the US East Coast, depending on the right partners and circumstances, he
added.
The meet saw participation from all of SCIs DirectorsCapt. K. S. Nair (Bulk Carrier and Tanker
division), Mr. U. C. Grover (Technical and Offshore Services), Mr. B. K. Mandal (Finance), Mr. Kailash
Gupta (Personnel and Administration) and Mr. J. N. Das.
Top
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CoPT to develop dedicated terminal for Lakshadweep ships
Exim News Service 18 June, 2009
COCHIN: A dedicated terminal for Lakshadweep-bound passenger and cargo ships will reportedly be
constructed at Cochin Port at an estimated cost of Rs. 32 crore. Five hectares of land have already
been earmarked in the Cochin Port Trust (CoPT) area (on the western side of Willingdon Island,
between South Coal Berth and Workshop Jetty) for this purpose. A memorandum of understanding
(MoU) was signed between CoPT and the Lakshadweep administration for leasing of the land and
waterfront areas. The proposed terminal will have a 300-metre-long berth, a passenger waiting hall ofabout 1,100 sq. metres., cargo storage area of about 400 sq. metres. as well as vehicle parking area.
The terminal will have facilities like prayer halls, a bank counter, a tourist information counter, a first aid
centre, a snack bar, etc. tenders. for the project will be invited within a month and it is expected to be
completed by 2011. About 10 passenger vessels and several cargo vessels ply between Lakshadweep
Islands and Cochin and these vessels are at present moored at different berths of Cochin Port. The
dedicated terminal will, therefore, be a boon for the people of Lakshadweep who are dependent on the
mainlandabout 185 miles awayfor higher education, medical purposes, food items, fuel, consumer
goods, etc. CoPT has, therefore, decided to accord top priority to the construction of the dedicated
terminal.
Top
ABG Shipyards Q4 profit rises by 13 pc
Exim News Service 22 June, 2009
MUMBAI: ABC Shipyard Ltd. has posted a net profit of Rs. 51.96 crore for the fourth quarter of 2008-09,
as against Rs. 46.05 crore in the corresponding period of 2007-08, working out to an increase of 12.83per cent. For the entire fiscal, ABG reported a net profit of Rs. 171.10 crore, as against Rs. 160.68 crore
in 2007-08. Income from operations in the fourth quarter increased to Rs. 370.86 crore from Rs. 276.68
crore in the same quarter of 2007-08. Mr. Dhananjay Datar, Chief Financial Officer, said that the total
order book position as on March 31, 2009 stood at Rs. 11,500 crore.
Top
ABG, Bharati slug it out for Great Offshore pie
The Economic Times - 24 June, 2009
MUMBAI: Great Offshore, a supplier of rigs used for offshore drilling, found itself at the centre of a
takeover battle on Tuesday, following an unsolicited bid by ABG Shipyard to counter an ongoing open
offer from Bharati Shipyard, which retaliated by buying a large chunk of shares at a higher price in the
morning, and by announcing a further revision of its bid price in the evening. This is a rare instance of
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an unsolicited bid - India Inc last saw a hostile takeover attempt in 2000, when Abhishek Dalmia
mounted an abortive bid to acquire Gesco. Bharati Shipyard, which earlier this month launched a 20%
open offer at Rs. 344 a share after acquiring just under 15% in Great Offshore, revised its offer price to
Rs. 403 a share a few hours. after rival bidder ABG Shipyard launched an unsolicited bid at Rs. 375 a
share. ET NOW, this newspapers business channel, first reported on the latest twist in the Great
Offshore saga early on Tuesday morning.
Bharati Shipyard managing director PC Kapoor said his company had bought 4.58% stake at Rs. 403 a
share from Ravi Sheth, a cousin of the former founder-promoter of Great Offshore, Vijay Sheth, through
block deals on Tuesday. Under Sebi rules, an open offer price is automatically revised upwards, if an
acquirer buys a single share at a higher rate during the tenure of the offer. As a consequence, Bharatis
new offer stands at Rs. 403 a share, said Mr. Kapoor. Mr. Kapoor told ET that Bharati would further
revise its offer after its next board meeting on June 30. We have so far acquired 19.5% stake in Great
Offshore for about Rs. 250 crore. We need almost the same amount of money to launch a 20% open
offer at a revised price. He did not rule out the possibility of a financial investor joining Bharati to fund
the revised offer. Mr. Kapoor did not think Bharati was stretching its balance sheet to acquire Great
Offshore. He said: Great Offshore is a strategic company for us. We have carved a niche market in
construction of vessels and rigs for the offshore industry, and Great Offshore is into the business of
providing support vessels and services required by the offshore industry. Its a nice fit for this business.
Top
SCI extending SMILE service to Port Pipavav from July 14/15
Exim News Service 28 June, 2009
MUMBAI: The Shipping Corporation of India Ltd. (SCI) has announced that the port of Pipavav will be
included in its SMILE service to cater to coastal cargo from Pipavav to Cochin and Tuticorin. In addition,
the service will cater to the Far East, Europe and Red Sea cargo. The current SMILE service rotation is:
Colombo, Cochin, Jawaharlal Nehru Port, Mundra, Jebel Ali, Mundra, Cochin, Tuticorin, Colombo. The
new port rotation will be: Colombo, Cochin, Jawaharlal Nehru Port, Mundra, Jebel Ali, Mundra, Pipavav,
Cochin, Tuticorin, Colombo.
The Pipavav call will commence from the new voyage of Lal Bahadur Shastri voy 125 eta Pipavav July
14-15. The call at Pipavav is in the interest of SCIs valued customers in terms of providing an efficient
and reliable service for coastal as well as ex-im cargo, explains an SCI release. SCI has taken delivery
of a very large crude carrier (VLCC), m. t. Desh Vishal, from Daewoo Shipbuilding in South Korea, an
SCI press release said. Desh Vishal is the second of SCIs two VLCCs constructed at Daewoo.
Shipbuilding Orders for these vessels were placed in October 2005 and the first vessel, Desh Viraat,
was delivered to SCI in October 2008. With 162,412 gross tonnage and 321,137 DWT, it is the largest
vessel in the Indian Register. The new vessel is about 600 tonnes larger than Desh Viraat. It has been
classed with ABS and IRS. and has been built to comply with the latest and most stringent international
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regulations. With the country heavily dependent on import of crude oil, having tankers. under the Indian
flag provides vital energy security to the nation.
Energy transportation has continued to remain the core business segment for SCI and the induction of
this vessel in its fleet is expected to strengthen its position in the energy transportation sector. SCI has
a fleet of 79 vessels at present and acquisition of the vessel is in line with the companys strategy of
maintaining a modern and young fleet, the company has 30 vessels on order at present and has an
ambitious plan to order another 40 ships in 2-3 years.
Top
Despite downturn, VCTPL takes confident strides
Exim News Service 28 June, 2009
VISAKHAPATNAM: Deal with Orissas Vedanta Aluminium may fetch project cargo. The Visakha
Container Terminal Pvt. Ltd. (VCTPL) is poised to cross the one-lakh-TEU mark in 2009-10, Capt.
Sriram Ravi Chander, Chief Operating Officer, said.
On the eve of the sixth anniversary celebrations of VCTPL here on June 25, he pointed out that the
terminal had made impressive strides during the last six years. During 2008-09, it handled 90,000
TEUs. Despite the economic downturn, VCTPL had been growing at 25 per cent per annum, he
observed. The terminal had started operations six years ago in the outer harbour as a joint venture
between DP World and United Liner Agencies of India Pvt. Ltd. During the first three years, the
progress was slow, but picked up after that. Now, the recession had impacted to some extent, he
admitted. Capt. Chander felt that Vizag was ideally positioned to develop into a hub for containerised
cargo on the East Coast. "We have signed a memorandum of understanding (MoU) with Vedanta
Aluminium at Jharsuguda in Orissa and the project cargo will be routed through our terminal. It is a shot
in the arm for us," he revealed.
Tobacco from Guntur was still going to Chennai Port and there were certain problems in attracting the
commodity to Visakhapatnam. But other commodities such as chillies and cotton were being exported
through Vizag, he stressed. He forecast a bright future for VCTPL once the economic situation
improved and special economic zone (SEZ) projects in the vicinity began operations. Mr. R. Ravi
Kumar, Vice-President of VCTPL, also spoke about the advantages of using the terminal.
Top
MFC uses multi-model mode for ODC delivery
The Economic Times - 29 June, 2009
Over dimensional cargo (ODC) and project cargo mover, Mumbai-based MFC seems to be taking
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advantage of the booming project cargo market in the country. Of late, it has employed multi-modal
transport to service its customers efficiently. Ever since it moved two IOC reactors, at Haldia, last year,
the company has bagged similar ODC consignments. Recently, it carried 400MT cargo from Hazira by
barge to Mumbai Port, and picked up another 200MT for its return leg from L&T, by a vessel. It has also
been using both rail and road for moving ODC steel plates within record time.
Top
Wartsila India to operate & maintain dry dock facility at Paradip Port
Exim News Service 30 June, 2009
MUMBAI: Wartsila, a global leader in providing complete lifecycle power solutions and services for the
marine and energy markets, has been given a contract to operate and maintain the dry dock at Paradip
Port. The facility, which offers. various activities related to repairs. of mid-size and small-size ships, and
is spread over 1,800 square metres, is designed to cater to dry dock repairs., afloat repairs.,
modification, conversions and re-fit of ships. It includes a dedicated repair jetty for afloat repairs,
modifications, conversions and re-fit jobs with uninterrupted power supply and fresh water supply.
It has two overhead double hook cranes facilitating blasting jobs at both sides simultaneously. The dry
dock is 75 metres long, 15 metres wide and has a 6-metre draught. It includes a well-equipped
workshop to carry out repair activities. Wartsila has strong service network on the East Coast of India,
with offices at Kolkata and Secunderabad and a workshop at Visakhapatnam which can be leveraged
for operations at Paradip. Operating and maintaining the dry dock facility at Paradip Port is an extension
of Wartsilas services offerings in the ship services segment, and is in line w ith its strategy of being a
total service provider.
On the dry dock facility, Mr. Rakesh Sarin, Managing Director, Wartsila India, observed, "Wartsila
Indias existing ship repair services, combined with this in-house facility consolidates our position as a
total service provider. We are proud of all aspects of the new dry dock facility and feel it will be of great
benefit to the shipowners and managers. "Wartsila offers expertise and responsiveness to all our
customers, regardless of their equipment maker, in the most environmentally-sound way. "Key
customers, both marine and power plant customers, have recognised Wartsila as their preferred
services supplier, ensuring the availability and cost-efficient operations of their installation. "They benefit
from gaining their entire power system and a full range of services from one global supplier throughout
the product lifecycle.
"We are continuously broadening our range of services and adding valuable products and specialist
services to our portfolio. "This way, we also give support to the equipment on board of the vessels or at
installations, either becoming the OEM or providing non-OEM services in key-ports," Mr. Sarin
elaborated. Wartsila supports customers in the shipping industry throughout the lifecycle of their
installations by optimising efficiency and performance. The lifecycle services are provided for engine
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services, propulsion services, electrical and automation services, boiler services, operations and
management and training services.
Top
Mundra Ports latest facility for car carriers installed by Lift & Shift India with precision
Exim News Service 30 June, 2009
MUNDRA: Mundra Port now has a new link bridge to be used for the export of cars. The contract forinstallation of this bridge was awarded to Lift & Shift India Pvt. Ltd., which safely completed it on June
21-22, well within the stipulated time-frame. The link span bridge, of 55 m length and weighing 350
tonnes, was towed from Singapore on a pontoon barge. After making all preliminary arrangements like
mooring, ballasting, planning and engineering, the bridge was raised by utilising 8 synchronised
hydraulic jacks, of 100-tonne capacity each, to a height of 600 mm to insert a similar number of heavy-
duty skid rollers of 100-tonne capacity, which were welded to the link bridge. The bridge was then
skidded off the pontoon by 20 m, with the use of heavy-duty prime movers and placed on to the new ro-
ro terminal jetty. After mooring the link bridge to the jetty, the pontoon was winched away from the jetty
to extend it by about 50 m, to put in place the pinlock arrangement of the link bridge with the pontoon
barge.
The operation entailed detailed engineering and coordination with the manufacturer of the bridge and
Mundra Port and Special Economic Zone (MPSEZ) authorities, which was vetted by an international
surveyor. Lift & Shift mobilised its team of installation experts to conduct the work smoothly. The
company also used 8 high-capacity ballast pumps to overcome the 7-m tidal variation. The bridge will
be operational by July and is expected to be very useful for exports by car manufacturers.
Top
International Updates:
Underemployed ships become warehouses for empty boxes
Exim News Service 02 June, 2009
LONDON: Nearly all the boxes aboard one of the worlds largest containerships were reportedly empty
and bound for Asia from Morocco. "Most will wait far longer than they would have two years ago before
returning full to Europe," said a report. Shippers wanting to send goods from Asia to Europe have
sometimes offered a zero freight rate, providing they cover fuel and terminal handling charges, the
report explained. The combination of excess capacity and falling demand has caused the rates that
many transport operators can charge to slump, by as much as 90 per cent in some cases. Shipping
lines have been using their growing numbers of idle ships just to store empties, says another report.
Now, even the underemployed vessels are doing so.
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Surplus containerships have deckloads of empty boxes, figuring that it is cheaper to pay the handling
charges once empties are loaded aboard ships than to pay daily per-TEU storage fees at global
container yards. More than 400,000 containers sit empty and idle at Shenzhens Yantian terminal, and
in Hong Kong officials are looking to park hundreds of thousands more. "You will find similar situations
in Shanghai, other Chinese ports, Hong Kong and many ports around the world," a top official of the
Hong Kong Shippers' Council said. "You have idle containerships full of empty containers, sitting in
Singapore, Hong Kong, Shanghai and many other ports around the world. When cargo is not moving,
there is no demand for containers."
Exporters are now expressing concern that shipping lines will no longer be able to transport their goods.
Carriers are also claiming that current freight rates are not sustainable for them to stay in business. "I
think theyre definitely notsustainable. The rates were currently seeing are frightening," observed the
head of a global ocean transport company.
Top
CMA CGM announces rate restoration on Asia-Europe trades
Exim News Service 04 June, 2009
MARS.EILLES: In its continued effort to provide customers. with the same reliable and efficient services
they are accustomed to, the CMA CGM Group has decided to restore freight rates in the Asia-Europe
trade to a more sustainable level. The new rate increases will apply to all cargo and commodities
moving westbound from Asia to Europe, and will be effective from July 1. The increased quantum will
be $300 per TEU. Additionally, CMA CGM will start, on the same date, to invoice separately the Bunker
Adjustment Factor (BAF) from the freight rate. CMA CGM has been constantly monitoring bunker
prices.
On July 1, the applicable BAF on the Asia-Europe trade will be increased from $281 per TEU to $333
per TEU, reflecting the evolution of oil prices in the international market. Finally, the Group may also
decide to implement a Peak Season Surcharge (PSS) on the same trade from August 1, intimated a
company release.
Top
Baltic Dry Index surges by 5.4 pc
Exim News Service 07 June, 2009
LONDON: The Baltic Dry Index, a measure of shipping costs for commodities, climbed by 187 points, or
5.4 per cent, to 3,681 points, following demand for raw materials from China. A broad-based
improvement in commodities demand has compounded the fact that Chinese steelmakers are buying
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more iron ore overseas. Rental rates for Capesize ships, most commonly used to haul iron ore, added 8
per cent on June 1 to $73,122 a day, according to the Baltic Exchange. Panamax rental costs advanced
by 6.7 per cent to $24,801 a day, the report said. Capesize vessels normally haul about 175,000 tonnes
of cargo and Panamaxes are about half the size. Rental rates for the larger ships may continue climbing
because of port congestion, an analyst predicted.
Top
VLCCs being booked just to store diesel
Exim News Service 10 June, 2009
SINGAPORE: Trading companies have booked two brand new very large crude carriers. (VLCCs), in a
rare move, just to store diesel off Singapore waters or North-West Europe from this month, taking
advantage of the contango market amid a demand slump. Some 520,000 tonnes of South Korean
diesel will be lifted this month, and will be anchored in those areas on the vessels Front Queen and
Caeser, traders said. Such floating volumes will be on top of the 530,000 tonnes being put in smaller
vessels of 80,000-100,000 tonnage off Singapore waters North-West Europe and West Africa. The
period for storage on a VLCC lasts from three to 12 months. Some players. recently booked one for 270
days.
Low freight rates and a contango market structure, which has been in place for a year, support such a
trade strategy. The products are stored when their prices are low, on hopes of selling them off later
when the rates rise, traders. stated. "You wont clean up a used VLCC to store products," a shipping
source commented. "There is no demurrage involved when it comes to storage. Its a fixed rate," a
shipping dealer explained. He added that the low rate for the Aframaxes, or the 80,000-100,000
tonnage, was about $20,000 per day for up to four months of storage.
As for VLCCs, the daily charges for storage were $35,000 with a last deal sealed at a rate of $23,000
each day, traders. elaborated. "The credit crunch and a demand collapse, as well as cheap ships and
full on land storage... encourage floating storage," another trader said.
Top
MaerskLine to effect rate hikes from July & Sept.
Exim News Service 10 June, 2009
COPENHAGEN: MaerskLine has announced rate increases on its services between Europe and the
Middle East and South Asia. The trading conditions for carriers. operating in these markets are still
subject to unacceptable rate levels and the situation is unsustainable in the longer term, the line said in
a release. South Asia (India, Pakistan, Bangladesh, Sri Lanka) to the Mediterranean and North Europe:
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TTC to better manage its product supply chain and bring it into the big league, hopefully among the top
three bunker suppliers.
On the back of the booming bunker industry, the Maritime Port Authority (MPA) also announced a new
financial assistance scheme for bunker surveying companies. The scheme will grant bunker surveying
companies a one-time 30 per cent financial relief on the assessment fee when they receive their
accreditation credentials with the Singapore Accreditation Council (SAC) under the Accreditation
Scheme for Inspection Bodies.
Top
Singapore promotes intelligent port & shipping services
Exim News Service 28 June, 2009
SINGAPORE: For the worlds busiest port here, technology is the watchword to ensure efficient and
round-the-clock operations and services. To enhance navigation in Singapore ports waters. and its
approaches, the Maritime and Port Authority of Singapore (MPA) has been promoting the use of
technology. These areas of technology uses include:
Electronic Chart Display and Information System (ECDIS) and its safety functionalities, used in
conjunction with electronic navigational charts. Port Operations Control Centres (POCCs) harness
technologies such as the Vessel Traffic Information System to monitor and broadcast navigational
warnings to ships in the Singapore port and Singapore Strait.
Communication is made even easier by an Automatic Identification System, which allows easy contact
between ships and the control centres. "Developing intelligent port and maritime service solutions is an
integral part of Singapores growth as an international maritime centre," said the MPA Chief Executive,
Mr. Lam Yi Young. In addition to the state-of-the-art POCCs, MPA has also developed online facilities to
streamline documentation and business processes.
Top
Baltic Dry Index posts steepest fall since April
Exim News Service 30 June, 2009
LONDON: The Baltic Dry Index, a measure of shipping costs for commodities, posted its biggest weekly
fall since April as demand for iron ore transporters weakened. The index, tracking transport costs on
international trade routes, was unchanged on June 26 at 3,703 points, according to the Baltic
Exchange. The previous weeks 9 per cent slide is the worst since the week ended April 3. Rates to hire
Capesize vessels fell by a steep 12 per cent to $78,945 a day during the week, while smaller Panamax
ships slid 9.9 per cent to $22,582 a day for the same period. Both compete for iron ore cargoes.
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Iron ore is the biggest single dry bulk commodity carried at sea, with 25 per cent share of the total in the
second quarter, estimates Drewry Shipping Consultants here. Imports by China, the biggest user, fell by
6.2 per cent in May after climbing to a record in April. That may signal a drop in demand for the raw
material and vessels to ship it. The worlds fleet of dry bulk vessels is expected to expand by 16 per
cent this year to 492.5 mill ion DWT, according to Dr