Daily Briefing December 7 2017
Ahead of our annual Top 100 most influential people in shipping on December 15, we look at how China’s dominance in the container port sector is gathering pace.
In today's briefing
Top stories:
China consolidates its power in Top 10 box ports 2017
Brussels clears Cosco's $6.3bn takeover of OOCL
Samsung Heavy Industries to raise $1.4bn through share offering
Aluminium demand to grow 4% a year over next five years, says Rio Tinto
Opinion:
Shippers versus carriers: from confrontation to collaboration
Analysis:
Period rates for tankers pressured by limited charter interest
Chinese ports set for boost from robust global trade and sector consolidation
In brief:
Ridgebury Tankers confirms deal for four VLCCs
Shipping industry groups call for ban on carriage of high-sulphur fuel oil
Vitol to take Latvian Shipping private
Australia to fund integrated maritime safety services
IMOL secures approval in principle for LNG-powered bulker
Sembcorp Marine unit inks pact with Shell for floating production facility
DSME fined for late issuing of subcontractors' contracts
Asian shipbuilders join the IMO
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China consolidates its power in Top 10 box ports 2017
IN the run-up to publishing the annual Lloyd's List Top 100 most influential people in shipping on December 15, we look at how China's dominance in the container port sector is gathering pace.
At number 1 is Huang Xiaowen, who was appointed chairman of the enlarged ports group formed from the merger of Cosco and China Shipping, which in effect became the world's largest port operator in teu terms overnight.
Top stories:
Brussels clears Cosco's $6.3bn takeover of OOCL
THE European Commission has cleared Cosco Shipping Holdings' $6.3bn takeover of Orient Overseas (International) Ltd, which is the parent of Hong Kong-based container shipping line OOCL.
The EU's competition directorate has concluded that the proposed transaction would not give rise to competition concerns due to the presence of significant competitors post-merger; the fact that the companies do not appear to be close competitors; and Cosco Shipping Holdings' marginal position on the Northern Europe-North America trade.
Samsung Heavy Industries to raise $1.4bn through share offering
SOUTH Korea's Samsung Heavy Industries has announced plans for a share sale to raise up to Won1.5trn ($1.4bn) in proceeds to improve its financial condition.
"The share offering [proceeds are] aimed at paying corporate bonds and other debts maturing in 2018, as well as pre-emptively responding to an additional reduction in borrowings from the financial sector due to worsening performance," said SHI in a statement. The capital increase is expected to be completed by May 2018.
Aluminium demand to grow 4% a year over next five years, says Rio Tinto
MINING giant Rio Tinto is forecasting demand for aluminium to increase by 4% per year for the next five years, with the uptrend likely to continue over a 15-year span.
Anticipated growth in the transportation sector, with the uptake in electric vehicles offering further potential upside, is one of the key drivers of continued strong demand for the lightweight metal, the miner told an investor seminar.
Opinion:
Shippers versus carriers: from confrontation to collaboration
THE maritime industry is an exciting and fascinating sector, steeped in history and tradition with strong, charismatic leaders, writes Chris Welsh MBE, secretary-general of the Global Shippers' Forum.
Even today, it is still frequently dominated by family shipowning interests that exert real influence over industry behaviours, strategies and thinking.
Analysis:
Period rates for tankers pressured by limited charter interest
TIME charter returns for tankers saw a modest bump heading into the autumn, but the disappointing spot returns in most markets have tempered optimism for one-year numbers, writes independent shipping analyst Court Smith.
Putting a single number on a term market call remains a nebulous target given the size variation within each segment, eco designation, and other qualitative factors of the operators.
Read the full report here
Chinese ports set for boost from robust global trade and sector consolidation
CHINESE ports will be the clear beneficiaries of an improved global economic outlook in 2018 as well as government-driven initiatives to consolidate the industry and bring about more efficient operations, according to OCBC Research.
From the start of 2017, key trade indicators including export orders and box throughput at major ports have been rising and continue to trend higher, a new OCBC report says, adding that a strong performance over the first half of 2017 led the International Monetary Fund and World Trade Organisation to revise their macroeconomic outlooks higher.
Read the full report here
In brief
Ridgebury Tankers confirms deal for four VLCCs
RIDGEBURY Tankers tell Lloyd's List was the buyer of four very large crude carriers from Euronav and DHT Holdings.
Shipping industry groups call for ban on carriage of high-sulphur fuel oil
SHIPPING industry groups have asked the International Maritime Organization to prohibit the carriage of bunker fuels that do not comply with the 0.5% sulphur cap for marine fuel oils ahead of the implementation date of the new rule in 2020.
Vitol to take Latvian Shipping private
VITOL, the commodities giant, said it plans to take chemical and petroleum tankers company Latvian Shipping private.
Australia to fund integrated maritime safety services
AUSTRALIA's Transport and Infrastructure Council will provide $77.6m to help the shipping industry make the transition to an integrated national safety regulation platform next year.
MOL secures approval in principle for LNG-powered bulker
TOKYO-based Mitsui OSK Lines, Tohoku Electric Power and Namura Shipbuilding have jointly received an approval in principle from Lloyd's Register for the design of a liquefied natural gas-driven coal carrier.
Sembcorp Marine unit inks pact with Shell for floating production facility
SEMBCORP Marine Rigs & Floaters, a unit of Singapore-based Sembcorp Marine, has signed a letter of intent with Shell Offshore to build and link up components of a floating production unit.
DSME fined for late issuing of subcontractors' contracts
DAEWOO Shipbuilding & Marine Engineering has been fined by South Korea's Fair Trade Commission for not issuing contracts to its subcontractors on time.
Asian shipbuilders join the IMO
THE International Maritime Organization has officially granted consultative status to the Active Shipbuilding Experts' Federation, which counts as its members 10 Asian bodies that represent 90% of all shipbuilders. It is expected to be vocal within the IMO on safety and environmental regulations.
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