‘Shipshape 10’ News for Week Ending July 16th, 2017

‘Shipshape 10 List’, a list of news and articles published in the current week that a senior executive in shipping, shipping finance, commodities, energy, supply chain and infrastructure should had noticed; news and articles that are shaping the agenda and the course of the maritime industry.

Sometimes seemingly tangential, periodically humorous, occasionally sarcastic, sporadically artistic, inferentially erotic, but always insightful and topical.

We apologize for the absence of an update for almost a month to those who have found this blog worthwhile to subscribe to and follow it regularly.

And, this week’s ‘Shipshape 10’:

On the Cosco and OOCL transaction:
1a. China underlines shipping ambitions with $6.3bn takeover of HK group (from the Financial Times) – article quoting Basil M Karatzas

1b. China’s Cosco to Buy Shipping Rival Orient Overseas for $6.3 Billion (from The Wall Street Journal) – article quoting Basil M Karatzas

1c. Cosco Takes OOCL, Eyes CMA CGM (from Splash 24/7)

1d. As Trade Revives, Big China Shippers Merge (from Barron’s)

1e. Karma and Comfort for Orient Overseas (from Bloomberg)

1f. Not Keeping It in the Family (from Week in China)

Dryships once again on front page news:
2. A Shipping Company’s Bizarre Stock Maneuvers Create High Seas Intrigue (from the Wall Street Journal)

Brazilian shipbuilding:
3. In Lula’s Shadow, Brazil’s Shipbuilders Struggle to Right Themselves (from The New York Times)

A UK shipyard is looking far away from traditional lines of business:
4. Mersey shipyard Cammell Laird set to build UK polar research ship (from the Financial Times)

New trading patterns due to expanded Panama Canal become more apparent with time:
5. Panama Canal Does Some Good While Upending Historic Trade Routes (from Bloomberg)

US crude oil exports:
6. US crude exports forecast to exceed most Opec members by 2020 (from the Financial Times)

Wheat trade and possible impact on the dry bulk market:
7. Traders Gobble Up Wheat Amid Great Plains Drought (from The Wall Street Journal)

Opinion article in Splash 24/7 by yours truly on whether there is still time for the famous ‘asset play game’ in shipping
8. The Asset Appreciation Play Has Yet to Leave Port (Basil M Karatzas, from Splash 24/7)

Opinion article by yours truly in Splash 24/7 on shipping finance:
9. Credit is Due to Shipping (Basil M Karatzas, from Splash 24/7)

Summer is the perfect time to to take to the water, this time for pleasure:
10. 5 Summer Water Sports You Can Master the Easy Way (from The Wall Street Journal)

Panamax Containership MV ‘OOCL Montreal’ sailing upstream in Norderelbe, Hamburg. Image credit: Karatzas Images.

© 2013 – present Basil M Karatzas & Karatzas Marine Advisors & Co.  All Rights Reserved.

IMPORTANT DISCLAIMER:  Access to this blog signifies the reader’s irrevocable acceptance of this disclaimer. No part of this blog can be reproduced by any means and under any circumstances, whatsoever, in whole or in part, without proper attribution or the consent of the copyright and trademark holders of this website.Whilst every effort has been made to ensure that information herewithin has been received from sources believed to be reliable and such information is believed to be accurate at the time of publishing, no warranties or assurances whatsoever are made in reference to accuracy or completeness of said information, and no liability whatsoever will be accepted for taking or failing to take any action upon any information contained in any part of this website.  Thank you for the consideration.

‘Shipshape 10’ News for Week Ending June 4th, 2017

‘Shipshape 10 List’, a list of news and articles published in the current week that a senior executive in shipping, shipping finance, commodities, energy, supply chain and infrastructure should had noticed; news and articles that are shaping the agenda and the course of the maritime industry.

Sometimes seemingly tangential, periodically humorous, occasionally sarcastic, sporadically artistic, inferentially erotic, but always insightful and topical.

And, this week’s ‘Shipshape 10’:

The biggest story in shipping in the past week, Rickmers Holding Group filing for bankruptcy. A bad market gets to everybody eventually, but again, Rickmers is not your typical shipping name. Effectively shipping royalty with 200+ years of history. Formally established in 1834, opening a rep office in China in 1899, more than a century before China became fashionable in shipping:

1a. Bank Rejects Rickmers Restructure (The Maritime Executive)

1b. German Shipping Firm Rickmers to File Bankruptcy (The Wall Street Journal)

The season’s greatest gathering happened in Oslo this week (Nor-shipping 2017); besides technology and disruption, the hot topic of the event was shipping magnate John Fredriksen:

2a. Shipping tycoon Fredriksen says has succession plan ready (Reuters)

2b. Succession Plan in Place: Fredriksen (Splash 24/7)

2c. Norway’s Frontline in Talks With Gener8 to Create World’s Biggest Tanker Fleet (The Wall Street Journal)

A bright spot in shipping, for now and the future, the LNG market:

3a. U.S. Approves First Offshore LNG Export Application (The Maritime Executive)

3b. U.S. Approves Exports from First Floating LNG Terminal in Gulf of Mexico (gCaptain)

Panama Canal likely one of the biggest beneficiaries of the LNG boom seems to be re-calibrating their pricing model, while Egypt is working on not staying behind and ‘One Belt, One Road’ getting more attraction:

4a. Panama Canal wants to modify tolls structure (Seatrade Maritime News)

4b. Egypt aims to profit from the Suez Canal (Financial Times)

4c. DP World hitches lift on the new Silk Road (Financial Times)

Regulations for shipping still have some time till driving home the message, but given the Trump’s action this week, shipping re-active approach to everything, for once seems appropriate:

5. New shipping fuel regulation set to hit commodities (Financial Times)

And, shipping about shipping and policy, the saga of Greek and German shipping, taxations and policy never seems to miss a chance for some arguing:

6a. Schaeuble ‘proves he does not desire to see Greece on a path to growth,’ says UGS chief Veniamis (Athens News)

6b. Head of Greek shipowners’ union: Schaeuble criticism unfair; Germany has favorable tax regime, too (Naftemporiki)

Shipping banks in the news once again, but again, what’s new?

7a. Worst Offshore Slump Holds Key Lessons for Top Norway Banker (Bloomberg)

7b. Commerzbank moves closer to shedding 4.5 bln euros in toxic ship loans (Reuters)

Seemingly no-news story from a major coal country, but reading through it, miners work on the lowering their stockpiles versus digging and investing; what do they say about their conviction for a brighter coal?

8. Coal India’s Output Declines Amid Focus on Clearing Stockpiles (Bloomberg)

U.S. and Germany have been solid trade partners for decades; recent developments start raising questions on the relationship and trade. What that could mean for shipping?

9a. Trump Paris rejection widens rift with Germany (Financial Times)

9b. Trump’s right about Germany (POLITICO)

9c. Trump Targets German Trade, and the South Grimaces (The New York Times)

9d. On The US-Germany Imbalance (The New York Times)

Shipping is also local:

10. Afloat on the Erie Canal: Sonar Gear, Ferris Wheel Parts and Beer Tanks (The New York Times)

First article is opinion piece in Greek about the death of shipowner Alexandros N Goulandris. Goulandris is a legendary name in the world of shipping, and one of the last few remaining ‘Golden Greeks’ of shipping. Besides his wealth and business success, his life has been characterized by his civic duty to donate generously to cultural and humanitarian causes, mostly in Greece. Something similar cannot be said about the modern way of things which may also explain Greece’s financial and cultural decadence:

11a. Η αφανής κηδεία ενός αφανούς ευεργέτη (Protagon)

11b. Shipowner Alexandros Goulandris Passes Away (Greek Reporter)

Summer sunset on the Port of Piraeus. Image credit: Karatzas Images

© 2013 – present Basil M Karatzas & Karatzas Marine Advisors & Co.  All Rights Reserved.

IMPORTANT DISCLAIMER:  Access to this blog signifies the reader’s irrevocable acceptance of this disclaimer. No part of this blog can be reproduced by any means and under any circumstances, whatsoever, in whole or in part, without proper attribution or the consent of the copyright and trademark holders of this website.Whilst every effort has been made to ensure that information herewithin has been received from sources believed to be reliable and such information is believed to be accurate at the time of publishing, no warranties or assurances whatsoever are made in reference to accuracy or completeness of said information, and no liability whatsoever will be accepted for taking or failing to take any action upon any information contained in any part of this website.  Thank you for the consideration.

‘Shipshape 10’ News for Week Ending May 28th, 2017

‘Shipshape 10 List’, a list of news and articles published in the current week that a senior executive in shipping, shipping finance, commodities, energy, supply chain and infrastructure should had noticed; news and articles that are shaping the agenda and the course of the maritime industry.

Sometimes seemingly tangential, periodically humorous, occasionally sarcastic, sporadically artistic, inferentially erotic, but always insightful and topical.

And, this week’s ‘Shipshape 10’:

While lots of shipping hope has been laid at the feet of a Chinese recovery, China’s sovereign debt has been downgraded mostly on concerns of slowing growth:
1. China’s sovereign debt downgraded by Moody’s (Financial Times)

2. China Moves to Stabilize Currency, Despite Promise to Loosen Control (The New York Times)

A seemingly major investor for shipping, but not clear whether there are string attached; in any event, the funding gap in shipping could suck up Dubai’s billion fund in seconds:
2. Dubai looking into forming $1 billion shipping investment fund (Reuters)

Shipping is a commodity b2b business. Od, isn’t it?
Quoting Basil M Karatzas, at Splash 24/7
3. Has Shipping Become Commoditised? (Splash 24/4)

In a weak overall market, mergers in the commodities trading world, and other news:
4a. Sowing Glencore’s Waves of Grain (Bloomberg)

4b. Huntsman and Clariant unveil $20bn tie-up (Financial Times)

4c. Noble Group, a big Asian commodities trader, is teetering

4d. War on Sugar Turns Years of Growth Into Market Tipping Point (Bloomberg)

OPEC had once promised to do ‘whatever it takes’ to drive oil prices higher. This week’s developments from Vienna show that OPEC may not be in charge of the oil markets as it used to be:                                                                                         5a. OPEC Should Watch Glencore’s Bunge Jump (Bloomberg)

5b. OPEC’s Weakest Link Is Not Who You Think It Is (Bloomberg)

5c. Opec: more of the same (Petroleum Economist)

5d. BP and Glencore warned over bullish fossil fuel forecasts (Financial Times)

5e. Oil market awaits ‘whatever it takes’ details as Opec gathers (Financial Times)

And the reason for OPEC’s dwindling chances controlling the oil markets:
6. New era beckons as Euronav VLCC is first to load US oil (Lloyd’s List)

Soft tanker asset prices have been conducive for M&A activity, with Scorpio Tankers acquiring the Navig8 Products Tankers fleet, creating the biggest player in the sector:                                                                                                                     7a. Scorpio Tankers fleet worth $3 bn after Navig8 Product Tankers takeover (Seatrade Maritime)

7b. Scorpio Announces Merger With Navig8 Product Tankers (The Maritime Executive)

While the world of ‘commodity shipping’ is struggling to recover, the cruiseship market has been strong, and China’s prospects in the sector cannot be ignored: 8a. China Tops Two Million Cruise Passengers (The Maritime Executive)

8b. Princess Tells “Chinese Story” Along Silk Road Route (The Maritime Executive)

8c. Greece To Bolster Cruise Capabilities (The Maritime Executive)

The current issue of the Economist is running a series of articles the oceans:
9a. How to improve the health of the ocean (The Economist)

9b. Getting serious about overfishing (The Economist)

9c. Megaprojects threaten Hong Kong’s iconic dolphins (The Economist)

“I will greatly bless you, and I will greatly multiply your seed as the stars of the heavens and as the sand which is on the seashore.” Genesis 22:15-18, and “like the sand of the sea, which cannot be counted” Genesis 32:12. Apparently, sand is not as plentiful these days:

10a. The World is Running Out of Sand (The New Yorker)

10b. An improbable global shortage: sand (The Economist)

Majestic sunset: Piraeus. Image credit: Karatzas Images

© 2013 – present Basil M Karatzas & Karatzas Marine Advisors & Co.  All Rights Reserved.

IMPORTANT DISCLAIMER:  Access to this blog signifies the reader’s irrevocable acceptance of this disclaimer. No part of this blog can be reproduced by any means and under any circumstances, whatsoever, in whole or in part, without proper attribution or the consent of the copyright and trademark holders of this website.Whilst every effort has been made to ensure that information herewithin has been received from sources believed to be reliable and such information is believed to be accurate at the time of publishing, no warranties or assurances whatsoever are made in reference to accuracy or completeness of said information, and no liability whatsoever will be accepted for taking or failing to take any action upon any information contained in any part of this website.  Thank you for the consideration.

‘Shipshape 10’ News for Week Ending May 21st, 2017

‘Shipshape 10 List’, a list of news and articles published in the current week that a senior executive in shipping, shipping finance, commodities, energy, supply chain and infrastructure should had noticed; news and articles that are shaping the agenda and the course of the maritime industry.

Sometimes seemingly tangential, periodically humorous, occasionally sarcastic, sporadically artistic, inferentially erotic, but always insightful and topical.

And, we take a minute to thank our readers who took time to contact us and let us us know that they missed reading our reports in the past couple of weeks. Delighted hearing that ’Shipshape 10’ indeed has become a quick way of following up the shipping and related industries.

And, this week’s ‘Shipshape 10’:                                                                                               
On the ‘One Belt, One Road’ initiative, and the recently hosted high-profile ‘Belt and Road Forum for International Cooperation’ in Beijing:
1a. Lessons for China in failed US Silk Road initiative (South China Morning Post)

1b. China’s Silk Road Initiative Sows European Discomfort (The Wall Street Journal)

1c. Next Silk Road summit set for 2019 as Beijing ramps up global drive (South China Morning Post)

1d. China takes ‘project of the century’ to Pakistan (Financial Times)

Trade agreements can be hard to re-negotiate when economic factors can interfere with politics:
2a. Trump launches NAFTA renegotiation (Politico)

2b. Prospect of NAFTA rewrite gives US farmers a case of jitters (Associated Press)

Not the biggest port in the world, but events in Buenaventura can underline how delicate the supply chain sometimes can be:
3a. Colombia’s biggest Pacific port placed under curfew (Financial Times)

3b. U.S. Ports Need $66 Billion for Infrastructure (The Maritime Executive)

OPEC for sure is winning the shale war…
4. Full tanks and tankers: a stubborn oil glut despite OPEC cuts (Reuters)

What do to with junk…
5. Old Containers Find Out-of-the-Box Second Lives (The Wall Street Journal)

Hopes that there is a recovery and economies will be growing solidly:
6a. Household Debt Makes a Comeback in the U.S. (The New York Times)

6b. The silent sell-off in US Treasuries (Financial Times)

The offshore and ‘brown water’ industries in the US still under pressure:
7a. Tidewater Files for Chapter 11 Bankruptcy (gCaptain)

7b. GulfMark Offshore Files for Chapter 11 Bankruptcy Protection (The Wall Street Journal)

An old generation Greek shipowner dies
8a. Aristides Alafouzos, owner of Kathimerini, dies (Kathimerini)

8b. Aristides Alafouzos, the founder of Kyklades Maritime, dies aged 93 (Splash 24/7)

There is a price for everything
9. From Deep in Atlantic, Titanic Relics Sail Toward Auction Block (Bloomberg)

Tall tales of drunken sailors no more
10. Terrifying 20m-tall ‘rogue waves’ are actually real (BBC)

A pretty picture of another products tanker in ballast condition. Image credit: Karatzas Images

© 2013 – present Basil M Karatzas & Karatzas Marine Advisors & Co.  All Rights Reserved.

IMPORTANT DISCLAIMER:  Access to this blog signifies the reader’s irrevocable acceptance of this disclaimer. No part of this blog can be reproduced by any means and under any circumstances, whatsoever, in whole or in part, without proper attribution or the consent of the copyright and trademark holders of this website.Whilst every effort has been made to ensure that information herewithin has been received from sources believed to be reliable and such information is believed to be accurate at the time of publishing, no warranties or assurances whatsoever are made in reference to accuracy or completeness of said information, and no liability whatsoever will be accepted for taking or failing to take any action upon any information contained in any part of this website.  Thank you for the consideration.

‘Shipshape 10’ News for Week Ending April 30th, 2017

‘Shipshape 10 List’, a list of news and articles published in the current week that a senior executive in shipping, shipping finance, commodities, energy, supply chain and infrastructure should had noticed; news and articles that are shaping the agenda and the course of the maritime industry.

Sometimes seemingly tangential, periodically humorous, occasionally sarcastic, sporadically artistic, inferentially erotic, but always insightful and topical.

And, this week’s ‘Shipshape 10’:

On trade and tariffs:
1a. Why Trump is starting a trade war with Canada (Politico)

1b. Why Donald Trump Decided to Back Off Nafta Threat (The Wall Street Journal)

On the Jones Act market and the current debate:
2a. Reinterpreting the Jones Act a Done Deal? Not So Fast (gCaptain)

2b. U.S. Maritime Industry Stands Behind Jones Act Ruling Letter Changes (gCaptain)

2c. Oil Trade Association API Says New Jones Act Rulings Could Cost American Jobs (gCaptain)

2d. OMSA Fires Back at ‘Erroneous’ and ‘Misguided’ Report on Jones Act Changes (gCaptain)

2e. AMP Supports Stricter Jones Act Interpretations (Maritime Executive)

Speaking of company valuations in a shifting sand of a world:
3. For Aramco Insiders, Prince’s $2 Trillion IPO Valuation Doesn’t Add Up (The Wall Street Journal)

Apparently there is such a thing as ’too much of exports’:
4. Australia curbs LNG exports amid domestic gas shortage (Financial Times)

While mining and oil majors seem to be benefiting from the current turn of commodity pricing:
5a. Big mining groups rebound to extract a profit (Financial Times)

5b. Exxon, Chevron Earnings Point to Sign of Strengthening Oil Industry (The Wall Street Journal)

John Fredriksen and Frontline on an all-out war to buy DHT, five offers and two lawsuits in less than two months:
6. Frontline Tries for DHT Takeover Again (The Maritime Executive)

While Angeliki Frangou’s Navios goes for the kill:
7. Navios moves for controlling stake in the FSL Trust (Splash 24/7)

George Economou of Dryships and Ocean Rig needs no introduction:
8. How a CEO Made Millions From a Sinking Ship (The Wall Street Journal)

Building on ports is always a good strategy especially when there are motivated sellers:
9. German-Led Consortium Named Preferred Bidder for Greek Port (The Wall Street Journal)

On an artistic expedition, a visit to the British Museum by August 13th, 2017 is a must to see ‘Under the Wave, off Kanagawa’ (Japanese: Kanagawa oki nami-ura), popularly known as ‘The Great Wave’, by the most famous of all Japanese prints, by artist Katsushika Hokusai:
10. Making waves (The British Museum blog)

And, it seems finally science is catching up with one the mot terrifying cause of shipwrecks over maritime history, the legendary shipworm:
The Loch Ness Monster of Mollusks (The New Yorker)

And, for those with travel flexibility, please join us next week at George Town, Grand Cayman, Cayman Islands, for the 2nd Cayman Maritime Week; Basil Karatzas will present at the 5th Mare Forum Cayman Shipping and Yachting Summit on the implications of the Trump Administration to the shipping industry.

Products Tanker ‘Maersk Mississippi’ discharging cargo at the Grand Cayman. Image source: Karatzas Images

© 2013 – present Basil M Karatzas & Karatzas Marine Advisors & Co.  All Rights Reserved.

IMPORTANT DISCLAIMER:  Access to this blog signifies the reader’s irrevocable acceptance of this disclaimer. No part of this blog can be reproduced by any means and under any circumstances, whatsoever, in whole or in part, without proper attribution or the consent of the copyright and trademark holders of this website.Whilst every effort has been made to ensure that information herewithin has been received from sources believed to be reliable and such information is believed to be accurate at the time of publishing, no warranties or assurances whatsoever are made in reference to accuracy or completeness of said information, and no liability whatsoever will be accepted for taking or failing to take any action upon any information contained in any part of this website.  Thank you for the consideration.