‘Shipshape 10’ News for Week Ending February 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, sometimes humorous, occasionally sarcastic, but always insightful and topical.

And, this week’s ‘Shipshape 10’:

1a. World Trade Flows Grew at Slowest Pace since Financial Crisis (The Wall Street Journal)

1b. Trade and shipping: The world is not flat anymore (Cayman Financial Review, authored by Basil M. Karatzas)

2a. Hanjin Shipping Saga Comes to a Close (The Maritime Executive)

2b. CMA CGM Joins Alibaba’s Freight Booking System (The Maritime Executive)

3. APM Terminals Ups Investments at Port Elizabeth (The Maritime Executive)

4. Why Innovators Should Study the Rise and Fall of the Venetian Empire (Harvard Business Review)

5. Maritime Asset Partners: New Finance Vehicle Backed by Shipping Veterans (Splash 24/7)

6. Gasoline Glut in New York Has Traders Sending Cargoes Abroad (Bloomberg)

7. With Shale Oil Production Like This, Who Needs Trump? (Bloomberg)

8. Female Captains Command Respect, but Not Many Ships (The Wall Street Journal)

9. Who owns Greece’s largest shipyard? (Seatrade)

10. Gibraltar seizes Russian’s superyacht over German debt claim (BBC News)

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Bacino di San Marco, Venice ca 1738 (detail), by Canaleto (Giovanni Antonio Canal, 1697 – 1768). Cargo boats and gondolas animate Venice’s waterfront entrance and Doge’s palace. Boston Museum of Fine Arts. 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.

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‘Shipshape 10’ News for Week Ending February 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, sometimes humorous, occasionally sarcastic, but always insightful and topical.

And, this week’s ‘Shipshape 10’:                                                                                              
One cannot talk about shipping these days without bringing up the topic of bankruptcy, liquidation, Chapter 11, etc but also consolidation, M&A, etc

Rather surprising news that Toisa Ltd and Brokerage and Management Ltd of Gregory Callimanopulos opted to file for bankruptcy protection in New York; the numbers are of the billion-order magnitude, with or without the two Gulfstream private airplanes seeking protection from the creditors:

1. Shipping Fleet Operator Toisa Files for Bankruptcy (from Wall Street Journal)

Just a formality, but after several months through the court system, Hanjin Shipping no more:

2. South Korean Court to Liquidate Hanjin Shipping (from the Maritime Executive)

Eike Batista, the man who allegedly made more money from the PowerPoint than Bill Gates himself, having filed for bankruptcy in Brazil recently, had to take a quick flight back from New York to appear in court in Rio de Janeiro. Mr Batista is the man who was raising tens of billions of dollars on oil fields to be mapped to be explored to be developed to be drilled to produce oil offshore of Brazil in the good days of the $100+/bbl;

3. Eike Batista Says He Will Turn Himself In to Police (from the Wall Street Journal)

A weak market forces shipbuilders too to re-think their business model:

4. Mitsubishi Heavy Industries plans to spin off shipyards (Splash 24/7)

And, on the other aspect of the spectrum, Norwegian shipping tycoon John Fredriksen did what John Fredriksen does best, making an un-solicited all-paper offer to take over a competitor in the VLCC market in the desperate market when prices are cheap and no much of a premium is needed:

5. Frontline launches takeover offer for Double Hull Tankers (from the Financial Times)

Speaking of supertankers and VLCCs, one has to always cognizant of OPEC and their present balance equilibrium of oil production:

6. OPEC Convinces Investors That Its Oil Output Cuts Are Real (from Bloomberg)

7. U.S. Senators Should Learn to Love OPEC (from Bloomberg)

and

Traders Rush to Ship U.S. Oil as Window to Asia Opens (from Reuters via gCaptain)

More on commodities:
8. Iron Ore’s Party Is Just Getting Started (from Bloomberg)

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Fascinating detail of Nedlloyd three-island-arrangement vessel from painting ‘Sydney, December, Midday’ by Craig McPherson, 1990. Oil on linen. In the lobby of the American Express Building (Three World Financial Center) in Downtown Manhattan. Part of our daily commuting to Karatzas Marine Advisors offices at One World Financial Center next door. Image credit: Karatzas Images.

Shipping is about the waves and the open sea and the people who live by the sea, too:

9. New Indonesia tsunami network could add crucial minutes (from the AP)

And if one believes that shipping is uncorrelated to politics, that’s a clear misconception. The most innocent of political stories that we could put on our blog these days!

10. Norway Salmon, Anyone? Stocks to Watch If Russian Sanctions Ease
(from Bloomberg)

And, a nice story about the Chinese New Year; one may wonder why such a story appears on a shipping blog, but again, please bear in mind that China is responsible for 15% of worldwide imports and 20% of worldwide exports. They matter for shipping and knowing a bit about Chinese culture and history and tradition is good for culture and good for business, we would opine. Gong Xi Fa Cai!

Everything you need to know about Chinese New Year (The British Museum)


© 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 January 14, 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, sometimes humorous, occasionally sarcastic, but always insightful and topical.

And, this week’s ‘Shipshape 10’:

While on business traveling to Europe, newsworthy shipping articles fit to print; there are many more business developments and stories that best left untold:

On strategic objectives in shipping:
1. How China rules the waves (from the Financial Times)

On the ongoing Hanjin saga:
2. Sale of Container Terminal Takes Center Stage in Hanjin Bankruptcy (from the Wall Street Journal)

The way of the future?
3. Alibaba will sell you anything, including a spot on a container ship

Taking a minute to contemplate history:                                                                               
4. The simple steel box that transformed global trade (from the BBC)

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Hans Hummel: Hamburg’s last water carrier (Hans Hummel No 114 Statue); image credit: Karatzas Images

Possibly substituting for shipping?
5. ’China freight train’ in first trip to Barking (from the BBC)

Good news, but what’s left for the bottom line?
6. Container Cargo Imports Surged at End of 2016 (from the Wall Street Journal)

Consolidation in the containership liner segment:
7. Why OOCL will tempt many (from Splash)

Good news, bad news:                                                                                                        
8. New Record for Youngest Container Ship Demolition (from the Maritime Executive)

It’s all about money (for shipping) these days:
9. Shadow Bank Stretches Into Loans (from Bloomberg)

But shipping banks have to thin otherwise:
10. Shipping Loans Weigh Down Banks (from Handelsblatt)

Bonus feature: the aftershocks of the Lehman Brothers and changing landscape for investment banks:
11. Morgan Stanley in talks to sell oil tanker stake (from the Financial Times)

And, please make sure to look for news emanating from Naftemporiki’s 3rd Shipping Conference held at the Megaron in Athens this week on January 19th, 2017.

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© 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 December 25, 2016

‘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, sometimes humorous, occasionally sarcastic, but always insightful and topical.

And, this week’s ‘Shipshape 10’:                                                                                                         
Heading to the Holiday Season, market activity has been slowing down as would expect. Still several news stories to report reflecting the year’s tumultuous course for the shipping industry. This week’s top news:

Two Maersk-owned offshore assets (‘Maersk Shipper’ and ‘Maersk Searcher’) while under tow by yet another Maersk-owned anchor-handling tug support vessel, AHTS ‘Maersk Battler’, sank off the French coast while en route to Turkey to be demolished. The newsworthiness of the story is not in the shipwreck itself – towing vessels in the open sea is a very complicated exercise and is reflected to the insurance premiums to underwrite the tow, ask us – but in the fact that terrible accidents happen even under mighty Maersk’s watch, even when only Maersk vessels and personnel are involved:

1. Maersk Supply Services vessel pair sink en route to scrapyard (from Splash 24/7)

On the shipping finance front, rather surprising news that RBS has reportedly agreed to sell $600 mil in shipping loans to a syndicate of buyers; the shipping finance team of Reuters in London and Frankfurt once again ‘scooped’ the story; and once again, the shipping trade press was left behind and ‘copying and pasting’ the story:

2. RBS near to selling $600 million of shipping loans: sources (from Reuters)

The fact that shipping banks are leaving the industry, there seem to be an opportunity for alternative financing; two encouraging developments in this front this week:

3. Northern Shipping smashes third fund target (from Splash 24/7)

And after almost three years of efforts:

4. Maritime & Merchant Bank launches (from Splash 24/7)

Still on the same front of credit provided by alternative sources of capital, Bloomberg run a great story this week:

5. The $12 Trillion Credit Risk Juggle (from Bloomberg)

Taking a look on purely shipping companies and events, the Rickmers Trust moved another step closer to liquidation:

6. Rickmers Maritime bondholders vote against restructuring, liquidation looms (from Seatrade Maritime News)

While another 30-year ship-manager / shipowner closed the doors at the insistence of their main credit, the ING bank:

7. ‘That’s it, Flinter is no longer’: Dutch line dissolves (from Splash 24/7)

And Hanjin selling their stake in the Long Beach Terminal (TTI), following their recent bankruptcy:

8. Hanjin to Sell Stake in U.S. Terminal to Mediterranean Shipping (from the Wall Street Journal)

On more hopeful news, the Dow Jones Industrial Index (DJII) almost reached the major milestone of 20,000 points following the rocket-trajectory after the Trump election; some doubts still hover about the nature of the rally (‘faith-based rally), but again, if we learned anything from shipping in 2016 is that rallies, any type of rallies, are better than declines:

9. A Faith-Based Rally? Warning Lights Are Flashing – Before Anyone Gets Too Euphoric About Dow 20,000 (from Barron’s)

And, taking a quick look in 2017, commodities seem to provide a promising place to invest; which, by association, is positive news for shipping:

10. 2017: Time to Buy Commodities (from Barron’s)                                                                     
Merry Christmas, and a most joyous Happy Holiday Season!

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A bright light! 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 November 27, 2016

‘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, sometimes humorous, occasionally sarcastic, but always insightful and topical.
                                                                                                                                             And, this week’s ‘Shipshape 10’:                                                                                                                                                                                                                                 The dry bulk market has been having an exceptional time, all things considered, and the Baltic Dry Index (BDI) has almost tripled since February this year when the market established an absolute bottom. Lots of researching whether this is due to a structural recovery or plain seasonality.

1. Dry-Bulk Shipping Owners Get Reprieve as Rates Rebound (from the Wall Street Journal)  

In the containership market, another bleak sign where a seven-year old panamax containership vessel was sold for scrap; less than a decade ago, such vessels were selling for $80 million. A sign of how bad the overall containership market is, and the high asset risk shipowners (and investors) have to undertake:

2. Seven-year-old Rickmers boxship sent for scrap (from Splash 24/7)    

While post-elections in the US has been lots of speculation about the direction of the new administration in terms of trade and infrastructure projects, a couple of articles on the subject:

3. TPP: What is it and why does it matter? (from BBC)

and,

4. China Touts Its Own Trade Pact as U.S.-Backed One Withers (from the Wall Street Journal)

In our last week’s report, we included an article about the Taiwanese government setting up emergency funding for their shipping sector; and, the week before that, another article about the S. Korean government supporting their shipping sector. Now, the Singaporean government falls in line, too, by supporting their offshore sector. Hopefully the Greek shipowners will manage to do without government support, if need be. (“One cannot take from someone who does not own” from the Dialogues of the Dead, Lucian of Samosata, 2nd century BC; cynic philosopher Menippos would not pay a coin (obol) to Charon, the ferryman of Hades of the souls of newly deceased, arguing as above; a very valid argument in today’s Greece, in any case.)

5. Singapore government intervenes to save struggling offshore sector (from Splash 24/7)

However, it’s worth noting that Korea Line Company (KLC), a company that had their own spectacular bankruptcy a few years ago in Korea, now has outbid the favorite Hyundai Merchant Marine (HMM) acquiring Hanjin Shipping’s container business; strangely, Korea Line never before had an exposure to or experience with the containership business. Having a previously bankrupt company rehabilitated and growing would seem to be the forces of capitalism at their best:

6. Why is Korea Line buying Hanjin Shipping’s Asia – US container business? (from Seatrade)

However, HMM who was poised to join the 2M Alliance (A.P. Moeller Maersk and MSC), now has been rejected by 2M; for sure, the containership liner industry is in the middle of major re-alignments in a market that keeps looking gloomy:

7. 2M Alliance rejects HMM (from the Korea Times)                                                        

Another week, and another shipping bank has to break some more bad news. NordLB in the news with additional provisions for their shipping loan portfolio:

8. NordLB warns on €1bn loss for year as shipping loans bite (from the Financial Times)

However, the capital markets show signs of thawing for shipping ideas, at least selectively. The Saverys family managed to raise $100 million for their Special Purpose Acquisition Vehicle (SPAC) for acquiring distressed shipping assets (ticker: HUNTU):

9. Hunters with a big warchest for dry bulk shipping (from Seatrade)

Some thoughts about shipping, mostly positive, ‘thankful’ thinking, in the spirit of the season:

10. A Thanksgiving for shipping (from Splash 24/7)

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A majestic sunset. 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.