‘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.

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‘Shipshape 10’ News for Week Ending December 18, 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’:

It has been an overall slow week, as one would have expected. Just a week before Christmas, freight markets took a breather, especially for the capesize vessels, while sale & purchase activity (S&P) has slowed down, too. In the deal-making world, most people are preoccupied with putting the finishing touches on the deals already on their table and get them signed by the end of the year.

Meanwhile, in what we seemingly call ‘real world’ these days, for shipping finance, as deadlines approach, there are even more concerns about the state of the shipping banks in the future given new regulations and active regulators:

1. Proposed new capital rules threaten struggling shipping sector: bankers (from Reuters)

while all along, European banks have not settled yet with ‘legacy concerns’:

2. UniCredit to Raise $14 Billion, Shed Bad Loans and Cut Jobs in Overhaul (from The Wall Street Journal)

If shipping banks are not functioning and alternative funding is getting tight as well, capital markets seem to spring eternal hope according to the next two articles:

3. Setting Sail (Again) on Wall Street (The Maritime Executive)

Basil M. Karatzas: Ενθαρρυντικά σημάδια για τη ναυτιλία και τις κεφαλαιαγορές

The broader, macro-picture is even murkier than shipping finance as much has been said and postulated recently on trade, trade agreements and possibly tariffs and other trade growth curtailers:

4. An early salvo in a trade war between America and China? (The Economist)

5. The End of Globalism (Foreign Affairs)

However, in the short term, business seem at least decent for now, but again, one has to recall that we are at peak shopping season and in September and October, the containership liner market was shaken by Hanjin’s bankruptcy that pushed backwards deliveries:

6. Cargo Volume Surges at Nation’s Largest Port Complex in November (from the Wall Street Journal)

Staying with the containership liner business, Hyundai Merchant Marine was handled a major setback this week when the company was not accepted as a full member at 2M Alliance and had to settle for cargo slot sharing, etc agreements:

7. Hyundai Merchant Marine Reaches Cargo Agreement With 2M Alliance (from the Wall Street Journal)

AP Moeller Maersk have held their investment day in Copenhagen this past week in a light of a bouncing market that has been playing in the hands of the company with the recent developments instigated from S Korea (HMM, Hanjin, etc) The company is under new leadership of recent, and high expectations of managerial and financial engineering for splitting the business and focusing on the liner business while relegating the energy business to a stand-alone business entity:

8. Maersk’s Rose-Tinted 2017 (from Bloomberg)

Interesting that Maersk’s drive to potentially spin-off the energy business comes on the heels of OPEC agreeing to cut production in order to ‘stabilize’ the market (OK, to increase oil prices).

9. OPEC’s Historic Deal Won’t Be Enough to Drain Oil Stockpiles (from Bloomberg)

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Talking oil prices at Columbia University’s SIPA with OPEC’s Secretary General H.E. Mohammad Sanusi Barkinko, Center Director Jason Bordoff, CGEP Fellow Adrian Lajous, and Antoine Halff, CGEP Program Director. Image credit: Karatzas Images

At an event this week at Columbia University, School of International and Public Affairs (SIPA), attendees were treated to a detailed account by the OPEC Secretary General H.E. Mohammad Sanusi Barkindo on how the historic OPEC agreement came to pass.

For those in shipping you had an exceptionally good year and think of splurging on something major, the following article on superyacht sales may be of interest:

10. Superyacht Sales Rebound (from Barron’s)

while for those more inclined to spend some holiday spirit in a house by the beach, the following investigative reporting article from The New York Times on private equity may provide some leads on how to make big money in order to splurge on superyachts:

How the Twinkie Made the Superrich Even Richer (from the New York Times)

sunlight_ship_piraeus_dec2016bmk_4041

Always seeing the bright side of things… 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.