‘Shipshape 10’ News for Week Ending April 22nd, 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 dry bulk and commodities market had a difficult week overall; high inventories and weakening demand are the short-term drivers to blame :

1a.Baltic Dry Index Falls Almost 4%, Biggest Loss Since Mid-December (Reuters via gCaptain)

1b. Dry Bulk Freight Market: The Best Is Yet To Come (Seatrade Maritime)

1c. Iron Ore Price Tumbles To A Near Six-Month Low (Financial Times)

In the tanker market, a legal twist to the market consolidating forces; the article in Lloyd’s List quoting Basil Karatzas:

2a. Tanker Wars — The Empire Strikes Back (Lloyds’s List)

2b. Frontline Sues DHT (Splash 24/7)

3c. U.S. Court Rejects Frontline’s Last-Minute Bid To Stop BW-DHT Deal (gCaptain)

An iconic name in the German shipping world is in restructuring while one of their sponsored companies has been on the block; lots of head-scratching for the logic supporting the acquisition and the price paid for it; but shipping is a gutsy industry:

4a. Rickmers Group Reaches Restructuring Agreement (Maritime Executive)

4b. Navios Partners Buys Bankrupt Rickmers Maritime Boxship Fleet For $113m (Seatrade Maritime)

And, speaking of consolidation, a Korean shipbuilder got a new lease on life:

5a. Korea Avoids Daewoo Shipwreck (Bloomberg)

5b. Keeping DSME Afloat Bondholders Enforced To Agree On Reviving Daewoo Shipbuilding (Business Korea)

An interesting in-depth article in the Wall Street Journal on the Port of Lazaro Cardenas on the west coast of Mexico; APM’s ambitious terminal to build a strong base just outside the US to by-pass any Jones Act requirements have been cut short by a possible border import tax:

6. Trump’s Trade Plans Spell Uncertainty For Mexican Port (The Wall Street Journal)

Keeping an eye on a crucial commodity for shipping, grains, still at the intersection of government policy:

7a. U.S. Farmers, Who Once Fed The World, Are Overtaken By New Powers (The Wall Street Journal)

7b. Russian Agriculture Sector Flourishes Amid Sanctions (Financial Times)

7c. American Farm Belt Anxious About Trump Trade Threats (Financial Times)

Keeping an eye on another crucial-to-shipping commodity, oil, where it seems there are diverse opinions on the state of the market; good luck to the tanker owners deciphering the market, while the Eni-Libya article should emanate good news for the aframax tanker market:

8a. Oil’s Slide Towards $50 A Barrel Slows (Financial Times)

8b. Oil Dives Below $50 As Confidence In Opec Wavers (Financial Times)

8c. OPEC Sees A World That Still Has Too Much Oil (Bloomberg)

8d. Eni-Operated Libya Oil Field To Re-Open After Two-Year Halt (Bloomberg)

8e. Saudi Aramco Chief Warns Of Looming Oil Shortage (Financial Times)

And, shipping, besides financial, market and regulatory risks, definitely have to deal with operational risk too; two million barrels of crude oil in a supertanker grounded can easily turn into a nightmare:

9. Salvors Working To Refloat Grounded VLCC In Java Sea (gCaptain)

Taking a looking on the US domestic commodities, energy and shipping markets, some strong headlines point to very diverse directions:

10a. Blackstone To Buy Permian Basin Pipelines For $2 Billion (Bloomberg)

10b. Coal Shipments Lift CSX Earnings In First Report With New CEO (The Wall Street Journal)

10c. Princess Cruises Sentenced To Pay $40 Million Fine For Pollution Scheme (Miami Herald)

And, for those with a literary bone to nourish:
Literature’s Arctic Obsession The Greatest Writers Of The Nineteenth Century Were Drawn To The North Pole. What Did They Hope To Find There? (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.

A pretty face of the cruising industry. 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 15th, 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:
1. Whatever Happened to Free Trade? (The Wall Street Journal)

While more and bigger containerships still getting delivered:
2a. Biggest Ship to Ever Call On U.S. East Coast Arriving in May (gCaptain)

2b. Madrid Maersk Snatches Record from MOL Triumph (The Maritime Executive)

Chinese financing always on focus:
3a. A Sunny Spell – A new Mood of Optimism Infects Investors in China’s Banks (The Economist)

3b. Chinese Finance is Storing up Trouble for the rest of the World (Financial Times)

Ongoing concerns on the apparent sinking of MV ’Stellar Daisy’; Lloyd’s List article quoting Basil Karatzas:
4a. Stellar Daisy Casualty Sparks Karatzas Warning on Conversions (Lloyd’s List)

4b. Intercargo Calls for Quick and Thorough Investigation into MV ‘Stellar Daisy’ Sinking (Seatrade)

4c. “Rolling like I’m inside Washing Machine”: Terrifying Account Sinking MV ‘Stellar Daisy’

Korean shipbuilder DSME seemingly in an existential unbearable lightness of being, being getting into receivership and obtaining more newbuilding orders; Wall Street Journal article quoting Basil Karatzas:
5a. Korean Shipbuilder’s Survival Hinges on Creditors’ Losses (The Wall Street Journal)

5b. HMM in for up to 10 VLCCs at DSME (Splash 24/7)

Insightful articles on the German shipping market from Lloyd’s List:
6a. Rickmers Maritime Trust falls but Nemesis dances on (Lloyd’s List)

6b. German Owners on the Brink (Lloyd’s List)

While another German company with pedigree has fallen off the pier:
7a. Rickmers Maritime to be Wound-up After Last Ditch Restructuring Talks Fail (Seatrade)

7b. Charter Market Recovery Too Late to Save Rickmers Maritime (The Loadstar via gCaptain)

On commodities and iron ore:
8a. Iron ore Sinks as China Glut Unnerves Traders (The Financial Times)

8b. China’s Steel Pillars Corrode (Bloomberg)

LNG definitely is promisingly in the news with every day:
9a. LNG-Fueled Mega Container Ship Design Approved (The Maritime Executive)

9b. Gas Fleet Concept Receives Approval in Principle (The Maritime Executive)

9c. Jaxport’s LNG Bunkering Facility is Ready to Work (The Maritime Executive)

9d. New U.S. Pipelines to Drive Natural Gas Boom as LNG Exports Surge (Reuters)

With global warming and the navigating in the Arctic being critical:
10. Icebreakers – The quickest way to break the ice is by submarine (The Economist)

And, a few more sad thoughts on yet another shipping tragedy, the Jones Act ferry MV ‘El Faro’ that was lost last year during the hurricane Joaquin:

11a. ’I’M A GONER’: El Faro’s Last Hours as Ship Sails into Storm (Associated Press)

11b. El Faro’s Tragic Ending ‘Burned’ in Investigator’s Mind (Associated Press)

LNG was on the central topic at the 2017 Columbia Global Energy Summit. From left, Dr Tim Boersma (CGEP), Charif Souki (Tellurian), Dr Tatiana Mitrova (CGEP), Jeroen van der Veer (ex-CEO Shell), Fu Chengyu (former Chairman of CNOOC / Sinopec). 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 8th, 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’:

Developments and news from the Jones Act market:                                                1a. $11 million Jones Act Penalty is Largest ever (MarineLog)
1b. The Jones Act Under Attack (The Maritime Executive)
1c. Born on the Bayou: NYC Ferry Fleet Builds for Summer Launch (Associated Press)

News from the German shipping banking market:
2a. HNA Group, Apollo Global Make Indicative Bids for Germany’s HSH Nordbank (The Wall Street Journal)
2b. NordLB Sufficiently Capitalised to Swallow Record 2016 Loss –CEO (Reuters)

News from the offshore drilling market are getting ever more abysmal:
3a. Ocean Rig Backer Takes Aim at Company’s Restructuring Plan (The Wall Street Journal)                                                                                                                               3b. Seadrill at Mercy of Day Traders as Biggest Funds Dump Stock
 (Bloomberg)             3c. Seadrill Warns on ‘Substantial’ Losses as Bankruptcy Fears mount (Financial Times)

News from the oil front:
4a. Information Asymmetry Bedevils the Oil Market (Financial Times)
                                 4b. Iran Struggles to Expand Oil Exports as sea Storage Cleared (Reuters)

And, news from the seaborne oil world:
5a. Homeless Gasoline Tankers Are Drifting Around the Caribbean (Bloomberg)
5b. Oil’s Seaborne Picture Suggests Opec Cuts Taking Effect (Financial Times)


And, more news on the oil trading world:
6. Oil Trader Gunvor Approached Competitors Over Possible Sale (The Wall Street Journal)

A gruesome reminder that shipping is still a dangerous business, with the apparent sinking of MV ’Stellar Daisy’ and great loss of life:
                                     7a. S Korean Cargo Ship Stellar Daisy Vanishes in South Atlantic (BBC)
                               7b. Attention Turns to Polaris’ 19 Converted Bulkers (Splash 24/7)
                                       7c. IMO Calls for Inquiry Into the Loss of Stellar Daisy (Maritime Executive)

‘One Belt, One Road’ never gets old…
8. Chinese Shipping Giants Seek Control of ‘Maritime Silk Road’
(The Wall Street Journal)

And news on a European shipyard in France; there are not many of them any more:
9. Even a Thriving French Shipyard Town Falls Under Le Pen’s Spell (Bloomberg)

Interesting legal-ese article for those who like to cruise; unfortunately not very flattering for the industry:
10. When People Die at Sea, Cruise Operators Often Get a Pass (The Wall Street Journal)

Products tanker MT ‘Arctic Bay’ under the Verrazzano-Narrows Bridge, enter the Upper New York Harbor. 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 2nd, 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 innovation and new technologies in shipping:                                                         1. Shipping-Technology Startup Freightos Raises $25 Million (The Wall Street Journal)

On the continuous enfeebled state of the offshore drilling markets:                           2. Ocean Rig Files for Bankruptcy (The Maritime Executive)

On crude oil and OPEC:                                                                                                    3. China Tanked Oil Once, It Can Do It Again (The Wall Street Journal)

On the prospects of shale oil in the USA:                                                                       4a. Fracking 2.0: Shale Drillers Pioneer New Ways to Profit in Era of Cheap Oil (The Wall Street Journal)                                                                                                                    4b. U.S. Petroleum Exports Climb to Record as Crude Output Grows (Bloomberg)

On steaming (thermal) coal, natural gas, renewables and emissions:                        5a. Lacklustre power demand in Asia throws a cloud over coal (The Economist)                 5b. India becomes more active in the fight against global warming (The Economist)             5c. The Other Permian Shale Boom (Bloomberg)

On coking (metallurgical) coal:                                                                                        6. China’s the Real Cyclone for Coal (Bloomberg)

On trade, insightful article:                                                                                              7. Whatever Happened to Free Trade? (The Wall Street Journal)

Mexican buyers of U.S. corn look elsewhere; good news for dry bulk shipping:      8. Mexico eyes duty-free corn deals to counter Trump (The Financial Times)

South China Sea and other geo-political considerations:                                            9a. The South China Sea presents a reality check for America (The Financial Times)           9b. Is China challenging the United States for global leadership? (The Economist)               9c. A bigger catch: China’s fishing fleet hunts new ocean targets (The Financial Times)       9d. China building navy’s biggest amphibious assault vessel, sources say (South China Morning Post)

On boutique cruising:                                                                                                     10. Cruise Vacations for the Anti-Cruise Crowd (The Wall Street Journal)

Cruiseship MV ‘Norwegian Gem’ departing New York Harbor; photographed as vessel was passing the Statue of Liberty. 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 March 26th, 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’:

Talking about destruction of value for the sellers…
1. Borr Drilling to buy Transocean’s jack-up rig fleet for $1.35bn (Seatrade Maritime)

and, the riskiness of the offshore drilling markets…
2. Shell’s Titanic Bet: Can Deep-Water Drilling Be Done on the Cheap? (The Wall Street Journal)

when, oil majors start thinking beyond oil…
3. Big Oil Replaces Rigs With Wind Turbines (Bloomberg)

But, some shipowners too think cleaner energy
4a. World’s First LNG-Fuelled Aframax Tankers Ordered (The Maritime Executive)

4b. Crowley Launches LNG-Powered Con/Ro for Jones Act Trade (The Maritime Executive)

But, in the mainstream shipping world, another week, another bailout or blowout …
5a. Korean Shipbuilder Seeks Another Bailout (The Wall Street Journal)

5b. Daewoo Shipbuilding: deep water (Financial Times)

or a dugout…
6. Maersk Line, Hapag-Lloyd Among Carriers Subpoenaed in U.S. Price-Fixing Probe (The Wall Street Journal)

But, some publicly listed companies going long the market, but paying in paper mostly, no hard cash…
7a. BW Sells All Its VLCCs to DHT Holdings (Splash 24/7)

7b. Golden Ocean Inks Agreements to Buy Quintana Shipping’s Entire Fleet (Seatrade Maritime)

A highly recommended private equity fund implodes; only noteworthy to shipping since they were the first to enter shipping in JV-style post financial crisis looking for distressed value; Euromar platform with publicly listed Euroseas (Ticker: ESEAS)
8. Eton Park to Shut Down as $3 Trillion Hedge Fund Industry Faces Turmoil (The New York Times)

Looking for maritime college education, look no further than the State University of New York Maritime College at Fort Schuyler, just outside New York City.
9. The Young Mariners of Throgs Neck (The New York Times)

And, finally, a story when passion and avocation turn into a (profitable) vocation. We could not argue against seafood and especially New England lobster!
10. A Restaurant’s Sales Pitch: Know Your Lobster (The New York Times)

Sovcomflot’s Products Tanker MT ‘Anichkov Bridge’ entering the Upper New York Harbor with the Manhattan skyline in the background. 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.