CMA CGM Confirms CSSC Yards for Mega-Ships
CMA CGM, the world's third- largest container line, and CSSC Group have officially signed the contract for the construction of nine 22,000 TEU ships, the largest container vessels ordered to date. Representatives from CMA CGM, Hudong-Zhonghua Shipbuilding (Group), Shanghai Waigaoqiao Shipbuilding and CSTC signed the contracts in Marseille on September 19. The order from the French-based container shipping firm underlines a recovery in the industry this year following a prolonged downturn.
CMA CGM Confirms Order for Nine Mega Ships
CMA CGM, the world's third-largest container shipping firm, said it expected operating profits to improve further in the second half as the market continues to recover, and confirmed an order for nine giant vessels. The announcements by French-based CMA CGM underlined a recovery in the industry this year after a prolonged downturn that sparked a series of consolidation deals. In a second-quarter results statement on Friday, CMA CGM said its board had approved an order for nine container ships…
Cyber Attacks Threaten Shipping & Dominate Maritime News
The maritime industry must redouble its efforts to secure IT systems and data. In June, Maersk Line A/S’s information systems were severely disrupted by the so-called Petya virus. FMC provided Maersk with relief to help them get through the difficult situation. In Mid-July, a researcher penetrated a ship’s internet system through its very small aperture system (VSAT). The ship was operating in the South America trade. An internet security researcher identified as “x0rz” discovered that many shipboard VSAT systems can be penetrated through the public internet…
GSL Extends TC with CMA CGM
Global Ship Lease, Inc., a containership charter owner, has announced that it has signed time charter extensions with CMA CGM for two 2,207 TEU containerships, the 2002-built Julie Delmas and the 2003-built Delmas Keta. The vessels will be chartered for a period of 12 months (plus or minus 45 days at charterer’s option) at a fixed rate of $7,800 per vessel per day, commencing immediately upon expiration of the current time charters on September 11 and 20, 2017, respectively.
DryShips Commences 5 Year TC for Second VLGC
DryShips, a diversified owner of ocean going cargo vessels, announced today that, its second Very Large Gas Carrier commenced its time charter on a fixed rate with five years firm duration to an oil major. The charterer has options to extend the firm employment period by up to three years. The Company expects a total gross backlog associated with this time charter of up to USD 92.7 million including the optional periods. Five days ago, DryShips announced that it has taken delivery of the previously announced high specifications second newbuilding VLGC.
Diana Enters TC Contract with Unico Logistics
Diana Shipping, a global shipping company specializing in the ownership of dry bulk vessels, today announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Unico Logistics, Seoul, for one of its Panamax dry bulk vessels, the m/v Maera. The gross charter rate is US$11,900 per day, minus a 5% commission paid to third parties, for a period of minimum nine months to maximum eleven months. The charter is expected to commence on September 19, 2017.
Global BCOs Hit by Rising Contract Rates from Asia
Contract freight rates paid by Beneficial Cargo Owners to move their products by container have increased for a 4th consecutive quarter, according to actual contract rate data from the Drewry Benchmarking Club. Average contract rates on two major container trade routes - from Asia to North Europe and North America – have increased by another 4% between the second and the third quarter of this year. This means that the latest Drewry Benchmarking Club Contract Index has increased by 39% in the year to the third quarter, based on $2 billion of ocean freight spending.
CNPC, Eni Sign LNG Deal
China National Petroleum Corporation (CNPC) and Italy’s Eni signed a cooperation agreement that includes assessing opportunities in the gas and LNG value chain. "CNPC and Eni signed cooperation agreement today in order to cooperate in oil & gas exploration and production, gas and LNG value chain opportunities, trading and logistics opportunities, refining and petrochemicals. The partnership will regard both China and overseas activities," said a statement from the company. The signing took place in Rome at Eni's headquarters during a meeting between the Chairman of CNPC…
HMM Confirms Contract With DSME For Five VLCCs
Hyundai Merchant Marine (HMM) announced that it has signed a formal contract with Daewoo Shipbuilding & Marine Engineering (DSME) for construction of five 300,000 dwt Very Large Crude Carriers (VLCC) with an option of five more vessels. HMM’s letter of intent with DSME for five VLCCs (+5 option) was singed back in April 2017. Under the agreement, DSME will build five VLCCs for HMM worth approx. KRW 470 billion (USD 420 million) that will be financed by the New Shipbuilding Program.
NAT Wins TC Contract with BP
Nordic American Tankers Limited (NAT) has entered into a 2 year time charter (TC) with British Petroleum (BP). This follow's NAT's TC arrangements with Shell, ExxonMobil and other major oil companies both in the West and in the East. "The minimum rate is well above our cash break-even level with an index linked formula providing for upside potential to NAT. Commencement is mid September; i.e. in about 10 days," said a statement from the company. "As an example of the income potential of NAT…
Drewry Warns BCOs to Adapt Their Contract Strategy
International transport and logistics executives using container shipping are facing the biggest shift in their ocean provider base for 20 years and must adapt their procurement and contract strategy, according to ocean freight procurement consultancy Drewry Supply Chain Advisors. In the last five years, beneficial cargo owners have been able to secure large reductions in freight costs by running traditional competitive bids with numerous providers in an over-supplied, fragmented market.
Vitol Signs Deal with Angola LNG
Angola LNG (ALNG) and Vitol, the world’s largest independent energy dealer, have entered into a multi-year LNG sales agreement. Under the agreement, ALNG cargoes will be delivered to Vitol at destinations around the world. Commenting on the sales agreement, Artur Pereira, CEO, Angola LNG Marketing Ltd, said: “This sales agreement is an important step for Angola LNG and demonstrates our ability to respond to the needs of our customers and the market. Pablo Galante Escobar, Head of LNG, Vitol, said; “We are delighted to have entered into this agreement with Angola LNG.
NSB Adds 31 Ships
German ship manager NSB Group has added 31 new ships under its management. In the course of the new joint venture named PT Asia Marine Temas fleet of NSB grows up to 96 vessels in total. At the same time NSB extends its business in Southeast Asia. Partner of the new joint venture is Indonesian shipping company Temasline. Headquarter of the company is located in Jakarta. Until 2020 the corporate structure of the group of companies will undertake further changes. REEDEREI NSB is extending international ship management activities under corporate brand name NSB GROUP.
BMT Secures Coal Jetty Engineering Contract
BMT Group subsidiary BMT Asia Pacific (BMT) will provide detailed engineering design and risk management consultancy services for a new coal unloading jetty and associated bulk handling system at the Tanjung Bin Energy (TBE) Power Plant in Johor, Malaysia. The contract was awarded by a Consortium led by HSL Constructor Sdn Bhd, and including Tecgates Engineering (M) Sdn Bhd and Gema Antara Sdn Bhd. “BMT has a strong presence in Malaysia and is well respected for its technical capabilities and expertise having worked on several other local projects and as such…
Vard Wins Expedition Cruise Contract
Vard Holdings Limited said it won a contract for the design and construction of an expedition cruise vessel for Coral Expeditions of Australia. Newly developed by Vard Design in Norway in cooperation with the customer, the vessel is specially designed for small ship expedition cruises to remote and exotic destinations in the regions of Asia-Pacific. The vessel of VARD 6 01 design, measuring 93.5 x 17.2 meters, with room for 120 guests. True to the Coral Expeditions business concept…
Diana Shipping TC Contract for m/v Ismene with DHL
Diana Shipping Inc. has announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with DHL Project & Chartering Limited, Hong Kong, for one of its Panamax dry bulk vessels, the m/v Ismene. The gross charter rate is US$12,000 per day, minus a 5% commission paid to third parties, for a period of minimum 12 months to maximum 15 months. The charter is expected to commence on September 16, 2017. The m/v Ismene is currently chartered, as previously announced…
Dockwise Bags Marine Transport Contracts Worth $50 Mln
Royal Boskalis Westminster N.V. said its wholly-owned subsidiary Dockwise has recently been awarded a number of marine transport contracts with a combined contract value of approximately $50 million. Dockwise was awarded a contract by Husky Oil Operations Ltd. for the transportation of the West White Rose Topside from Texas, U.S. to Newfoundland and Labrador, Canada. The contract includes the engineering, preparation and execution of the loading, transport and discharge operation of the topside.
Korean Shipyards Bag $1.5bln Newbuild Order from MSC
Samsung Heavy Industries (SHI) and Daewoo Shipbuilding & Marine Engineering (DSME) - two major shipyards in South Korea - are poised to sign a deal worth $1.5 billion to build container ships for Mediterranean Shipping Company (MSC), according to the Financial Times. The report said that this deal is the latest signal that the South Korea’s troubled shipbuilding industry is showing signs of recovery, after large losses posted by both companies in recent years because of a lack of orders. MSC is working on an order for up to 11 container vessels, the report said.
Container Equipment Leasing Rates Under Pressure
Leasing companies are tightening their stranglehold over container equipment ownership as ocean carriers cut back on new purchasing and sell older inventory for leaseback, Drewry's report said. But the lessors’ rapid expansion has come at a price as the combination of low borrowing costs and competitive pressures has had an adverse impact on lease rates and accompanying investment returns. Lease rates slumped to a new low in 2015 and although the improved market climate since has prompted some recovery, they remain well below the long-term average.
Traders Look to Asia Products for U.S. Options
Traders adding U.S. port options to cargoes for flexibility. Traders are scrambling to find oil products in Asia to ship to the United States and Latin America after Hurricane Harvey shut almost a quarter of U.S. refining capacity, several trading and shipping sources told Reuters on Wednesday. Many are also asking for ships to have a U.S. option added to their original destination to allow for flexibility in sending the cargoes across the Pacific, shipbrokers said. At least one oil products tanker…
COSCO Books H1 Profit of $288 mln
China's COSCO Shipping Holdings Co Ltd reported a first-half profit on Wednesday and forecast that improved demand in the container shipping market would continue for the rest of the year. China's largest shipping group, which last month offered to buy a Hong Kong peer to become the world's third-largest container liner, said January-June net profit was 1.86 billion yuan ($288.32 million). That matched an estimate it announced in July, citing improved market conditions. It also booked revenues of 43.5 billion yuan for the period.
Thyssenkrupp Wins Order to Build Fertilizer Plant in Brunei
Germany's Thyssenkrupp said it has won an order from Brunei to build a fertilizer plant in the southeast Asian state, in a much-needed boost to its struggling industrial solutions division. It did not disclose the value of the contract, awarded by state-run Brunei Fertilizer Industries. However, an industry source familiar with the matter said the order was worth a high triple-digit million euro sum. The plant, to be completed by 2021, will have a daily production capacity of 2,200 tonnes of ammonia and 3,900 tonnes of urea, Thyssenkrupp said.
Bahri to Build 4 Bulk Carriers for USD 120mln at Hyundai Heavy
The National Shipping Company of Saudi Arabia (Bahri) announces that its subsidiary Bahri Dry Bulk Company (owned 60% by Bahri) (BDB) has signed contracts with Hyundai Heavy Industries (HHI) to build 4 bulk carriers. These carriers will be delivered during the first half of 2020. The financial impact of these contracts will appear after the delivery of the vessels. These vessels are designed to the latest international technical specifications and are fitted with environmentally-friendly specifications and high efficiency in fuel consumption…
Capital Product Bags 3 MR Charters
Capital Product Partners, an international diversified shipping company, announced that it has secured new time charter employment for three Medium Range (MR) Product Tankers. The M/T 'Amadeus' (50,108 dwt, IMO II/III Eco Chemical/Product Tanker built 2015, Samsung Heavy Industries (Nigbo) secured employment with Repsol Trading for one year (+/- 30 days) at a gross daily rate of $14,500. The charterer has the option to extend the time charter for an additional year (+/-30 days) at a gross daily rate of $14,750. The new charter will commence in October 2017.
Keppel AmFELS to Build Two LNG Fueled Containerships
Keppel AmFELS, a wholly owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M) in the United States (US), has secured a contract worth more than US$400m from Honolulu-based Pasha Hawaii for the construction of two Liquefied Natural Gas (LNG) fueled containerships. The dual fuel LNG vessels will be built to Keppel's proprietary design with delivery of the first vessel expected in 1Q 2020, and the second vessel in 3Q 2020. Simon Lee, President of Keppel AmFELS said, "We are pleased that Pasha has chosen us to build their first two LNG fueled containerships to our innovative design.
LNG from Skangas
Skangas and ESL Shipping have entered into an agreement for providing gas fuel to ESL’s LNG-powered bulk carrier newbuildings. These two new vessels will start operating during first half of 2018. The first of the two vessels was named “Viikki” in June 2017, honoring the shipping company’s tradition to name its ships for places in Helsinki. “This agreement is a milestone for Skangas. Ms Viikki will be the first vessel that we will serve from the new LNG terminal in Tornio”, explains Kimmo Rahkamo, CEO of Skangas. “There will be more to come. This is supported by ESL Shipping.
Verifavia to Provide IMO DCS Services for Liberian-flagged Ships
Emissions verification company for the transport sector Verifavia said it has signed a strategic cooperation agreement with the Liberian Registry to conduct IMO DCS and EU MRV verification services for Liberian-flagged vessels. The Liberian Registry – the second largest in the world – includes more than 4,200 vessels aggregating 150+ million gross metric tons, representing 12 percent of the world’s ocean going fleet. As part of the cooperation – the company’s first major step…
Kalmar Signs Deal with DP World Australia
Kalmar, part of Cargotec, continues its long-term cooperation with DP World Australia, the country's largest stevedore, with orders of 38 new machines for its new logistics arm, DP World Logistics Australia. The orders include 7 Kalmar reachstackers, 11 loaded and 20 empty container handlers. 22 units have successfully been delivered to DP World Logistics Australia's Botany Intermodal terminal with the remaining equipment to be delivered by September 2017. The order was booked into Cargotec's 2017 first quarter intake.
Seaspan Takes Delivery of 11,000 TEU Containership
Seaspan Corporation said it has accepted delivery of the MSC Shuba B, an 11,000 TEU containership that will commence a 17-year fixed-rate bareboat charter with Mediterranean Shipping Company S.A. (MSC). Upon completion of the bareboat charter period, MSC is obligated to purchase the vessel for a pre-determined amount. The MSC Shuba B, which was constructed at HHIC-PHIL INC., is Seaspan’s first 11,000 TEU SAVER design containership in a series of five ships, all of which are signed to bareboat agreements with MSC.
CMA CGM to Build World's Largest Boxships at Chinese Yard
French shipping group CMA CGM plans to build nine of the world's largest container ships at two Chinese shipyards, the China Daily newspaper reported on Wednesday. Shanghai Waigaoqiao Shipbuilding Co confirmed that it and its sister yard Hudong-Zhonghua Shipbuilding (Group) Co, had received a letter of intent from CMA CGM for the ships, which would be capable of carrying 22,000 20-foot equivalent unit containers (TEU), the newspaper said. The final order was subject to board approval from both sides, the newspaper said. Both yards are owned by state-run China State Shipbuilding Corporation.
Maersk Tankers Invests in Quantitative Hedge Fund
Maersk Tankers said on Wednesday it has entered into an equity agreement with U.S. hedge fund CargoMetrics, giving it access to analytical models and algorithms to better manage its tanker operations. Maersk Tankers, a unit of shipping group A.P. Moller-Maersk , has invested a "significant" but undisclosed amount in the Boston-based hedge fund, which will give the firm exclusive right to its analytical models, algorithms and capabilities. CargoMetrics links satellite signals, historical shipping data and proprietary analytics for trading purposes in its systematic investment platform.
Diana Reactivates Idle Containership
Diana Containerships Inc. said plans to reactivate one of its idle Panamax container vessels, the m/v Pamina, a 5,042 TEU container vessel built in 2005. The company also announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Orient Overseas Container Line Ltd., Hong Kong, for the m/v Pamina. The gross charter rate is $9,500 per day, minus a 3.75 percent commission paid to third parties, for a period of minimum seven months to maximum 12 months. The charter will commence on September 13, 2017.
Hyundai Merchant Marine, BlackRock in Investment Talks
South Korean shipper Hyundai Merchant Marine Co Ltd (HMM) is in talks with BlackRock Inc about a potential investment but details have yet to be discussed, a HMM spokesman said on Monday. BlackRock is in talks with HMM to invest up to 1 trillion won ($880 million) in the nation's largest shipper, the Korea Economic Daily reported on Monday, citing unidentified investment banking and shipping industry sources. A BlackRock spokeswoman could not be immediately reached for comment. HMM shares were up 1.2 percent in morning trade, compared to a 0.2 percent fall for the wider market.
Nakilat, Shell Completes First Phase of LNG Carrier Management Transition
Nakilat Shipping Qatar Limited (NSQL) a wholly owned subsidiary of Nakilat and Shell International Trading and Shipping Company Limited (Shell), have completed the first phase of what will be the world’s largest management transition of LNG carriers. The Q-Max LNG carrier Al Mafyar was the 10th vessel to transition from Shell to NSQL management in 10 months, bringing about the successful completion of the first phase. Al Mayfar is wholly-owned by Nakilat and chartered by Qatargas, with a cargo capacity of 266,370 cubic meters.
CMA CGM Hires Diana Containerships' Domingo
Diana Containerships Inc., a global shipping company specializing in the ownership of containerships, announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with CMA CGM, Marseille, for one of its Panamax container vessels, the m/v Domingo. The gross charter rate is US$8,500 per day, minus a 3.5% commission paid to third parties, for a period of minimum 8 months to maximum 11 months. The charter will commence on September 15, 2017. The m/v Domingo is currently chartered to Nile Dutch Africa Line B.V.
Golden Ocean to Look Towards Time Charters
We are slowly starting to consider chartering opportunities at the rate levels that we see now. Except for four long-term charters, we are more or less spot exposed for next year and we'll slowly start to add some charter cover.
Maersk Wants Trade Finance Role
Maersk Line, the world's biggest container shipper, is venturing into trade finance, as it seeks to fill a lending gap left by indebted banks pulling out of the crisis-hit shipping industry. Moving into traditional bank territory and further down the shipping value chain, Maersk Line, part of A.P. Moller-Maersk, is offering to finance shipments and remove the paper trail from financing deals. Maersk says it has no need to ask for collateral - one of the biggest headaches for banks and customers in trade finance deals - because it is carrying the goods on its vessels.
MTU 4000 Engines to Power Harbor Tugs
Rolls-Royce and Sanmar Shipyards in Turkey have signed a contract for the delivery of eight MTU Series 4000 engines for four new terminal tugs, including an option for a further four engines. The tugs will each be fitted with two 16V 4000 M73L MTU engines, each delivering an output of 2,700 kW (at 1,850 rpm). The MTU brand is part of Rolls-Royce Power Systems. Sanmar and MTU have been working closely together since 2009. Knut Müller, Head of the Marine and Government Business Division at MTU…
SITC Shipowning Orders Four Newbuilds
SITC Shipowning, a wholly-owned subsidiary of SITC International Holdings Co, has exercised the options for the construction of two container vessels, said a company release. SITC Shipowning also entered into the New Shipbuilding Contracts with the Builder for the construction of two additional container vessels. The four vessels to be constructed under the Option Contracts and the New Shipbuilding Contracts are 1,011 TEU class gearless container vessels. The aggregated costs for the construction of the four container vessels under the Options and the New Shipping Contracts is US$68 million.
Husky Energy Pact for Canadian Offshore Project
NC-Lavalin, Dragados Canada and Pennecon announced that their General Partnership (GP) has been awarded a construction contract from Husky Energy as part of the company's West White Rose Project in Newfoundland and Labrador. The GP will build a concrete gravity structure (CGS) for a fixed drilling platform. The CGS, with an overall height of 145m and base diameter of 122m, will require 76,000m3 of concrete in its construction, which will take place in a purpose built dry dock from 2017 to 2021.
Diana Shipping Extends Time Charter with RWE
Diana Shipping has announced that, through a separate wholly-owned subsidiary, it has agreed to extend the present time charter contract with RWE Supply & Trading GmbH, Essen, Germany, for one of its Capesize dry bulk vessels, the m/v G. P. Zafirakis. The gross charter rate is US$15,000 per day minus a 5% commission paid to third parties, for a period of about 14 months to maximum 17 months. The new charter period will commence on August 14, 2017. The m/v G. P. Zafirakis is currently chartered…
US, Panama Maritime Schools Partner
SUNY Maritime College said it has expanded its global reach by signing a memorandum of agreement with the International Maritime University of Panama, paving the way for further cooperation between the two institutions, including student and faculty exchange programs, collaborative research ventures and cooperative educational programs in a variety of areas including marine transportation and logistics, marine engineering, marine sciences and naval architecture. “Maritime College graduates enter a global industry,” said Dr.
Fugro Bags Surveying Contract
Dutch geo-consultancy Fugro’s integrated capabilities clinch further work for Sirius at the world’s largest high grade polyhalite deposit. The award of two major new contracts integrating geotechnical and geophysical investigations sees Fugro continue its site characterisation services at Sirius Minerals’ North Yorkshire polyhalite project. A new geotechnical package comprises seven deep boreholes in shaft and tunnel locations at the new UK mine, located 3.5 kilometres south of Whitby in North Yorkshire.
Dunkirk, Dunkerque Port Sign LNG Pact
Dunkirk's LNG Terminal and Dunkerque-Port signed an agreement for the development of an liquefied natural gas (LNG) station to supply tank trucks. The use of LNG by shipping has grown significantly in recent months with new projects (orders for ships, LNG supply stations, etc). A month after signing the agreement, Dunkerque LNG and Total Marine Fuels Global Solutions (TMFGS) announced that they would supply LNG to the Honfleur, the first French ferry running on LNG, which will ply between Ouistreham and Portsmouth as of 2019.
DSV Pins Growth Hope on e-commerce
CEO: freight forwarding industry undergoing transformation; plays down threat from new entrants. Danish freight forwarder DSV will invest more to meet rising demand for services such as e-commerce and address competition from new players including Amazon.com which is seeking a greater role in the logistics supply chain. DSV has specialised in complex transportation logistics for business-to-business customers but now wants to expand its e-commerce services where it sees great potential due to rapid growth in internet sales, CEO Jens Bjorn Andersen said in an interview.
Grand Bahama Shipyard Reports Commercial Success
Caribbean shipyard Grand Bahama Shipyard (GBS) said it has completed work on 30 commercial vessels within first half of 2017, predominantly comprised of companies returning to the yard with repeat business including tankers, bulk carriers, containerships, tugs, dive support vessels and drilling support vessels. In what is considered a volatile market, GBS said 2017 has been a great year for repeat customers, solidifying its position as a supporter of the major U.S. East Coast…
Hyundai Heavy Wins $600 Vitol Tanker Contract
The Korean shipbuilder Hyundai Heavy Industries (HHI) won a contract worth up to $600 million from Netherlands-based energy and commodities company Vitol to build as many as eight gas tankers, Reuters reported. HHI will construct two liquefied petroleum gas (LPG) tankers with a capacity of 84,000 cubic meters (3 million cubic feet) each. The ships are expected to be delivered in the first half of 2019. Under the deal, the energy company holds the option to order six more gas carriers.
d'Amico Tankers Updates Ship Sales and Purchases
In January 2017, d’Amico Tankers sold MT High Endurance and MT High Endeavour, two 46,992 dwt medium-range product tanker vessels, built in 2004 by STX, South Korea, to Sea World Tankers a client of Sea World Management SAM, for a consideration of US$ 13.5 million each. At the same time, d’Amico Tankers will maintain the commercial employment of the Vessels having also concluded with the Buyer a 4 years’ time-charter agreement at an attractive rate. In May 2017, d’Amico Tankers d.a.c.
Diana Shipping's New Time Charter for Maia With Glencore
Diana Shipping has announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Glencore Agriculture B.V., Rotterdam, for one of its Kamsarmax dry bulk vessels, the m/v Maia. The gross charter rate is US$10,125 per day, minus a 5% commission paid to third parties, for a period of minimum twelve (12) months to maximum fifteen (15) months. The charter is expected to commence immediately. The m/v Maia is currently chartered, as previously announced…
Iran's Chabahar Port Signs Pact with India Ports Global
India Ports Global has signed a contract with Aria Banader of Iran to equip and operate two terminals at Chabahar - Shahid -Beheshti Port in Iran for transportation of goods and other purposes. "As per Article 6 of the contract, effort are to be made to commence commercial operations at Chabahar –Shahid- Beheshti Port in Iran within 18 months from the contract activation date or 4 months from the date on which the Lessor hands over the Terminals and the infrastructure facilities to the Lessee in accordance with the terms of the Contract," said a press release from the government.
U.S. DoD Awards Crowley $2.3 Billion Transport Deal
Following a series of protests and subsequent legal challenges, the U.S. Transportation Command (TRANSCOM), a command of the U.S. Department of Defense (DOD), this week confirmed a large, multi-year contract award to Crowley Logistics, Inc., to provide transportation and related services supporting DOD activities in the U.S. and Canada. The Department of Defense Freight Transportation Services (DFTS) contract is one of the largest logistics contracts awarded by the U.S. government.
STX Bags Orders for Six Tankers
South Korea’s STX Offshore & Shipbuilding won contracts to build six tankers from Greece and local shippers, reports Korea JoongAng Daily. STX announced that Greek shipper OceanGold Tankers placed an order for four medium-range tankers of 50,000 DWT capacity. Two were order on an option contract, which gives the buyer a right to pay for the ship at a pre-determined price in case ship prices rise. The deal was worth $140 million in total. According to STX, the ships will be constructed in its Jinhae shipyard in Changwon, South Gyeongsan, and delivered by the first quarter of 2019.
Mega Ship MOL Tribute Under BSM Management
Bernhard Schulte Shipmanagement (BSM) has announced that the 20,146 TEU containership, MOL Tribute, came into full management of the Hong Kong Ship Management Center on July 10, 2017. Built by Samsung Heavy Industries in South Korea, MOL Tribute is 400 meters in length having a deadweight of 196,877 MT, with her sister ship, MOL Tradition, scheduled to enter Hong Kong management at the end of August. Through these milestones, BSM becomes part of a select group of operators that have the expertise to manage some of the world’s largest containerships.
Boskalis Bags Stockholm Norvik Port Contract
Royal Boskalis Westminster N.V. said it has been awarded a contract by Ports of Stockholm to construct the quay wall for the new Stockholm Norvik Port in Sweden. The contract value amounts to approximately €60 million ($69 million). The project will commence in the autumn of 2017 and is expected to complete in the spring of 2020. Stockholm Norvik Port, the new freight port for rolling goods and containers, will be constructed in Norvikudden located 60 km south of Stockholm. The port will have seven berths for container ships and RoRo ferries.
Diana Time Charter with Maersk and CMA CGM
Diana Containerships has announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Maersk Line A/S for one of its Post-Panamax container vessels, the m/v Puelo, for a period of minimum eight months to maximum 18 months. The gross charter rate is US$10,600 per day for the first eight months of the charter period and US$12,000 per day for the balance period of the time charter, in each case minus a 5.0% commission paid to third parties. The charter is expected to commence on August 2, 2017.
Dredging Seminar Held in Bangladesh
On Tuesday, July 11, Damen hosted a dredging seminar in Dhaka, Bangladesh attended by more than 100 representatives from the Dutch Embassy in Bangladesh, experts from the Bangladesh Government, the Bangladesh Navy, local financing institutions, various customers of Damen and other industry stakeholders. Damen said it has enjoyed great successes all over the world in the sale of its dredging equipment, including Trailing Suction Hopper Dredgers, Cutter Suction Dredgers and renowned DOP pumps.
Golar LNG Cuts Dubai FSRU Charter
Golar LNG Partners has agreed with the charterer of the Golar Freeze FSRU, Dubai Supply Authority (DUSUP) certain amendments to the existing time charter that was due to end in May 2020. DUSUP have two FSRU's on contract and do not currently have full time use for Golar Freeze and have therefore been working with Golar Partners to find alternative employment. Golar Partners and DUSUP will continue to cooperate with regards to future employment for Golar Freeze but in the meantime have agreed certain amendments to the existing charter.
Rickmers to Sell its Last 9 Vessels to Navios
HSH syndicate, comprising HSH Nordbank and DBS Bank, has approved the sale of the remaining nine of 14 vessels of Singapore-based Rickmers Trust Management for some $54 million to Navios Partners Containers and Navios Partners Containers Finance. The total consideration will also include an amount to support settlement of operational cash deficits to closing, said Rickmers Trust Management in an update on the winding up of Rickmers Maritime. The sales of these nine vessels are expected to be completed in parts from July 12, 2017, Rickmers said.
Port Autonome de Papeete Orders Tug for Tahiti
Damen Shipyards said it has won an open tender for the supply of a tug to Port Autonome de Papeete on the Pacific island of Tahiti. Tahiti is part of French Polynesia, an overseas territory of the French Republic. The tug will be Damen’s popular ASD 2810 model, a rugged, versatile vessel capable of delivering 60 tonnes of bollard pull. Pape’ete is the capital of French Polynesia and the economic hub of the archipelago. Port Autonome de Papeete serves a wide range of vessels including local ferries…
Maersk: Too Early to Predict Financial Impact of Cyber Attack
Asia CEO said ports have resumed releasing cargo; will discuss settlement, liability issues with customers. Maersk said it was too early to predict the financial impact of last month's global Petya cyber attack that hit the shipping giant's computers and delayed cargoes, but added that normal operations had resumed at its ports. A.P. Moller-Maersk, Danish owner of the world's biggest container shipping line, operates 76 ports via its APM Terminal division and was one of the many firms hit by the ransomware virus along with Russia's Rosneft and advertising agency WPP.
SCH to Handle Renault Vehicles in Southampton
Roll-on/roll-off cargo handlers Southampton Cargo Handling (SCH) said it has secured the stevedoring contract to handle all Renault vehicles being shipped through the Port of Southampton. The move follows the success of Euro Marine Logistics (EML), a joint venture project between Mitsui OSK Lines and Hoegh Autoliners, in winning the shipping contract for some 60,000 Renault vehicles a year that pass through Southampton. EML is making calls every four days in the port after loading vehicles in France and Spain.
Yangzijiang Bags Newbuild Orders Worth $133 Mln
China’s Yangzijiang Shipbuilding has won six shipbuilding contracts worth a total of $133m during the second quarter of this year, Business Times reported. Three of these orders for 1,800 TEU (twenty-foot equivalent unit) containerships were exercised from options tied to existing shipbuilding orders. Three others for 82,000-deadweight-tonne bulk carriers were new shipbuilding orders. The new ships are scheduled to be delivered in phases between 2018 to 2020. Yangzijiang Shipbuilding…
Korean Shipyards Look Bullish
South Korea's major shipyards are estimated to have racked up solid profit during the second quarter of the year, aided by the increased delivery of ships, cost-cutting measures and a rise in new orders, Yonhap reported citing industry sources. Another report said that Korean yards have clinched the most new shipbuilding orders in the first half of the year, with their combined tally more than doubling from a year earlier. The trend appears bullish for ship building in the country.
MOL Bags Yamal LNG Charter Contract for Four Ships
Mitsui O.S.K. Lines (MOL) announced it has signed a long-term charter contract for four liquefied natural gas (LNG) carriers with the tank capacity of 174,000m3, which will be delivered and serve on Yamal LNG project in 2019 and 2020 onward, through a wholly-owned subsidiary of MOL. The four contracted carriers will serve as a transport of LNG transshipped by the project from Europe. MOL did not provide any additional information on the vessels. Yamal LNG is a planned $27 billion LNG plant at Sabetta, north-east of the Yamal Peninsula, Russia.
d’Amico Chooses Sealink Premium Plus VSAT
Italian ship owner and long-term Telemar customer d’Amico Group has selected Marlink’s Sealink Premium Plus VSAT service to enhance connectivity across its fleet of over 50 product tankers and dry cargo vessels. Sealink Premium Plus provides global connectivity for d’Amico’s business and vessel operations, in addition to supporting crew welfare. With Sealink Premium Plus, the d’Amico fleet will receive a guaranteed Committed Information Rate (CIR) and completely unlimited Ku-band VSAT data in parallel to unlimited L-band back-up, for a single, fixed monthly fee.
NYK, Kyushu Electric Power Partner on LNG Transport
Japanese firms NYK and Kyushu Electric Power Co. Inc. say they have reached an agreement to partner in various fields, including liquefied natural gas (LNG) transport. According to NYK, the agreement will allow Kyushu Electric Power to use vessels from the shipping company’s fleet for short-term LNG transport, enabling NYK to improve its profitability through efficient vessel allocation and Kyushu Electric Power to improve its flexibility in LNG transport. Shipping company NYK…
ExxonMobil Joins with Eagle LNG, Crowley on LNG Marine Fueling
ExxonMobil, Eagle LNG Partners LLC (Eagle LNG Partners) and Crowley have signed an agreement to collaborate on the development of LNG as a marine fuel. The goal is to establish the storage and technical support necessary to provide safe, reliable LNG delivery for vessel operators bunkering in North America. The three companies signed a Memorandum of Understanding (MoU) on June 27, 2017. The parties will initially focus their efforts in Florida before expanding to other North American markets.
Cosco Firms Sign Insurance Agreement
Cosco Shipping Energy Transportation has entered into insurance services framework agreement with Cosco Shipping Insurance pursuant to which the latter will provide vessel-related insurance services to the Group. Cosco Shipping Insurance is a wholly-owned subsidiary of Cosco Shipping , the Company’s indirect controlling shareholder. Accordingly, Cosco Shipping Insurance is a connected person of the Company, and the Insurance Services Framework Agreement and the transactions thereunder constitute continuing connected transactions of the Company.
Valletta Cruise Port Inks Agreement on Tourism Ethics
Valletta Cruise Port has signed the UNWTO Private Sector Commitment to the Global Code of Ethics for Tourism. This Code is a frame of reference for responsible and sustainable tourism development as endorsed by the United Nations General Assembly in 2001. Together with another five Maltese companies, Valletta Cruise Port was welcomed as signatory to this Code. By adhering to the Code, signatories commit to implementing and promoting its principles in their business strategies and operations. The Code’s 10 principles cover the economic, social, cultural and environmental components of tourism.
Wood Group Bags Alexandroupolis FEED
Wood Group has secured a new front end engineering design (FEED) contract with Gastrade S.A. for the Alexandroupolis Independent Natural Gas System (INGS) offshore Greece. The project, to develop a floating liquefied natural gas (LNG) receiving, storage and regasification unit (FSRU), will create a new natural gas gateway to the markets of south eastern and central Europe. Wood Group’s subsea team will perform the design and engineering definition of the Alexandroupolis FSRU and its subsystems which will support the final investment decision for the project, planned for late 2017.
Telenor Expands Communication Services for DFDS
Global maritime mobile operator Telenor Maritime said it will expand communications services for longstanding partner DFDS, deploying its connectivity platform with Premium Wi-Fi, Ka VSAT and mobile broadband backhaul for the Northern European shipping company. “We are moving fast forward into the Networked Society, and we are expecting the same experience whether we are at home or at sea when using our mobile devices,” said Frode Støldal, CEO of Telenor Maritime. “Speed and connectivity are crucial for passengers, and even more so in situations where a mobile device is used for business.
GeoSea Bags Offshore Wind Installation Work from EnBW
DEME Group’s offshore marine engineering subsidiary GeoSea said that, following successful completion of the design, it also received the Notice to Proceed for fabrication and offshore installation of 16 wind turbine foundations and 1 Offshore Transformer Module (OTM) for the EnBW Albatros offshore wind farm, for which GeoSea is Siemens’ EPCI partner. This partnership enables Siemens to provide a full-scope project (offshore wind turbines and OTM, incl. foundations) to EnBW. The Albatros offshore wind farm is located in the so-called “exclusive economic zone” of the North Sea…
Dry Bulk, Tanker Newbuilds on the Rise -BIMCO
Tanker and dry bulk vessel newbuild contracts have been signed at an increasing pace so far in 2017, with newbuild activity for the first half of 2017 surpassing the same period last year by 20 percent. According to BIMCO, 5.9 million DWT was contracted in May 2017 and 3.1 million DWT so far in June 2017, which brings the total amount of newbuild orders up to 19.6 million DWT for 2017. So far for June 2017, 22 tankers have been contracted amounting to a total of 2.6 million DWT. For the crude oil tanker segment, this has been entirely for suezmax ships with 1.9 million DWT ordered.
Austal Wins USD 584.2 million US Navy Contract
Australian shipbuilder Austal has won a $584.2 million contract to build a 14th Littoral Combat Ship for the US Navy, Reuters reported. The contract includes associated LCS class services and related material and integrated data environment support, as well as options for the construction of additional LCS, class services and post-delivery availability support, the Pentagon said in a statement. Australian Associated Press added quoting Asutal that the 127-metre LCS28 will be built at its shipyard in Mobile…
Korea Line Signs USD 1.15 bln LNG Shipping Deal from KOGAS
Korea Line Corporation (KLC) has secured a KRW 1.27 trillion (USD 1.1 billion) contract to transport liquefied natural gas (LNG) for its compatriot Korea Gas Corporation (KOGAS). Yonhap reported that under the deal with Korea Gas Corp. (KOGAS), Korea Line will transport LNG through May 30, 2037, the company said in a regulatory filing. Other details of the contract were not revealed. In 2013, Korea Line was taken over by SM Group, a midsized shipping group. Korea Line currently operates some 30 vessels…
Statoil, AET Expand Shuttle Tankers Contract
Statoil ASA and petroleum and chemical tanker owners and operator AET are extending their partnership in the North Sea shuttle tanker sector. Statoil has, awarded a long-term contract to AET, a subsidiary of Malaysian energy shipping group, MISC Berhad, to operate two specialist DP2 offshore loading shuttle tankers (OLSTs) on long-term charter. These new vessels will be in addition to the two AET DP2 ships currently on charter, in the same area, for Statoil. These new vessels are in addition to the two AET DP2 ships currently on charter in the same area for Statoil.
Diana Signs Time Charter with Hudson
Diana Shipping has announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Hudson Shipping Lines Incorporated, for one of its Panamax dry bulk vessels, the m/v Protefs. The gross charter rate is $7,900 per day, minus a 5 percent commission paid to third parties, for a period of minimum 12 months to about 15 months. The charter is expected to commence on June 23, 2017. The Protefs is a 73,630 dwt Panamax dry bulk vessel built in 2004.
Metro Ports to Operate Port of Indiana Bulk Terminal
The Ports of Indiana announced that Metro Ports – the country's oldest stevedoring company – will become the new bulk terminal operator at the Port of Indiana-Burns Harbor. Starting July 1, 2017, Metro Ports will manage the loading and unloading of shipments along the port's East Harbor for port tenants and outside companies shipping bulk cargoes, including products for the steelmaking, agricultural, manufacturing, energy and construction industries. Metro Ports is the brand used to collectively identify stevedoring affiliates of Metropolitan Stevedore Co.
Port of LA Renews Terminal Lease SSA Pacific
The Port of Los Angeles informs it has approved a five-year lease extension for SSA Pacific, Inc. to continue operating the marine terminal that is the West Coast’s home to imported Chilean fruit. For more than 25 years, Chilean growers have relied on the dedicated terminal to deliver their fresh produce – primarily grapes, stone fruit such as peaches, nectarines and plums, and avocados – to North America’s consumer markets west of the Rockies stretching from Southern California to Vancouver and reaching into West Texas.
Qatargas to Supply LNG to Shell
Qatargas and Shell have signed a memorandum of understanding (MOU) that will lead to the two companies jointly researching liquefied natural gas (LNG) logistics. Through this joint logistics research collaboration, Qatargas and Shell aim to develop new ways to optimize supply chains to deliver to LNG global markets. The research will be conducted at the Qatar Shell Research & Technology Centre at the Qatar Science & Technology Park. The MOU was signed by Faisal Al Suwaidi, Chairman and Chief Executive Officer of Qatargas Operating Company…
Pacific Radiance Gets USD 45.3mln in Vessel Deals
Singapore's Offshore support vessel (OSV)-focused Pacific Radiance said that it has won US$45.3 million of new contracts including options, which will add to its operating cash flow. Under these contracts, ten of the Group’s offshore support vessels, including a diving support vessel, are being deployed to support projects in Asia and the Middle East. They are chartered to new and existing clients to provide services which include towing, repair and maintenance, transportation and platform support.
Seanergy Time Charter Contract for Partnership
Greece-based Seanergy Maritime Holdings announced that it has entered into a time charter contract with a major European utility and energy company for its recently delivered Capesize vessel. The 2012-built M/V Partnership will commence a period employment of about twelve to eighteen months and is expected to generate approximately $8.8 million of gross revenue, assuming the full 18 months employment. Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, said: “We are pleased to announce a period employment contract for our most recent Capesize acquisition.
Qatar Petroleum, Shell Sign LNG Bunkering Agreement
Qatar Petroleum and Shell signed a framework agreement to develop global LNG bunkering facilities on Tuesday, Qatar Petroleum said. "We view LNG bunkering as a promising opportunity for LNG to further grow as a clean energy source," Qatar Petroleum CEO Saad Sherida Al-Kaabi was quoted as saying. "LNG demand for bunkering is expected to increase significantly over the coming years and we believe there is real potential for such demand to reach up to 50 million tons per annum by 2030," he said.
Optimarin, Goltens Ink Spare Parts and Service Deal
Optimarin informs it has signed an agreement with Goltens Green Technologies giving the Norwegian-headquartered ballast water treatment (BWT) specialist a global network of spare parts warehousing and service engineers. The framework agreement, negotiated at this month’s Nor-Shipping, will enable Optimarin to use facilities in Asia, North America and the Middle East to provide its worldwide customer base with local lead times for the commissioning and maintenance of its market proven Optimarin Ballast System (OBS). “We know Goltens very well,” said Optimarin CEO, Tore Andersen.
Hunter Maritime Terminates Tender Offer for Bulkers
Marshall Islands based Hunter Maritime Acquisition revealed it has “mutually agreed” with Germany’s Oskar Wehr to terminate the master agreement and the memoranda of agreement (MOA) related to the acquisition of five Capesize dry bulk carriers. The Tender Offer expired on June 9, 2017, and as of that time, certain conditions to the consummation of the Tender Offer and the Acquisition were not satisfied, including the condition that not more than 8,233,100 Class A common shares shall have been validly tendered and not properly withdrawn at the Expiration Date.
Ecoslops, Total Plan Micro-refinery in La Mède
Ecoslops, a company that upgrades ship-generated hydrocarbon residues, or “slops”, into valuable new fuels and light bitumen, said is has signed an agreement with TOTAL Group to set up a maritime transport induced oil residue waste-processing unit at La Mède, near Marseilles in the Bouches-du-Rhône. The agreement comes after the completion of technical and commercial studies, which commenced last year and were announced as a Memorandum of Understanding (MOU) in September 2016.
Design Contract Awarded for SC Container Terminal
AECOM said it has been chosen by the South Carolina Ports Authority (SCPA) to provide detailed design services for the new Hugh K. Leatherman, Sr. Container Terminal at the Port of Charleston. “Extending AECOM’s dedication to delivering a better world and continuing to grow its port presence in the Carolinas, this design work will facilitate development of North America’s newest and most advanced container terminal,” said Tim Keener, executive vice president and general manager of AECOM’s Southeast region.
Polaris Orders 3 Iron Ore Carriers at Hyundai
South Korean shipping firm Polaris Shipping Co has placed an order with Hyundai Heavy Industries (HHI) to build three very large iron ore carriers, Yonhap reported. Polaris said the 325,000-ton iron ore carriers will replace some of its aged ships. The financial details of the shipbuilding contract and delivery schedule for the newbuildings were not disclosed. With the latest order from Polaris HHI's orderbook that was valued at $3.8bn in the first five months of 2017 will enlarge further.
Diana Addendum to Time Charter with Rio Tinto
Diana Shipping, through a separate wholly-owned subsidiary, has agreed to extend and increase the time charter rate of the present time charter contract with Singapore-based Rio Tinto Shipping (Asia) for one of its Capesize dry bulk vessels, the m/v Sideris GS. The global shipping company specializing in the ownership of dry bulk vessels added that the contract is for a period of minimum 13 months to maximum 17 months. The new gross charter rate is US$13,000 per day, minus a 5% commission paid to third parties. The new charter period is expected to commence on June 20, 2017.
Antwerp Mulls China Collaboration
Antwerp Port Authority signed a collaboration agreement with the port of Caofeidian in China. The collaboration forms part of the “One Belt One Road” project in which China seeks to connect its main ports and industrial cities more closely with crucial trade centres elsewhere in the world including Europe. The Memorandum of Understanding was signed in the presence of the prime ministers of Belgium and China at a ceremony held in Val Duchesse castle where seven other agreements between the two countries were also concluded at the same time.
Qatari Export Costs to Rise as Port Ban Disrupts Trading
Region's largest bunkering hub shuns Qatari vessels; affected shippers may face delays, higher costs. The costs of Qatari energy and commodity exports are likely to rise as the United Arab Emirates' ban on Qatari vessels cuts the ships off from the region's main refuelling port, forcing ships to sail further for fuel or pay higher prices. Saudi Arabia and the UAE, along with Egypt, Yemen and Bahrain, on Monday cut diplomatic ties with Qatar amid accusations the country supported terrorists.
RINA Consulting to Advise on New Kuwaiti Ports
RINA Consulting, a consulting engineering arm of the RINA Group, has won a consultancy contract to determine the general strategy for the development of three existing and one new port in Kuwait. The contract, valued at €1,450,000, ($1,631,000) was placed by the Kuwaiti Port Authority this week and will be completed by end 2018. The plan will be an important element in the Kuwaiti governments overall development strategy and plan for the country’s future. RINA Consulting is already…
Damen Consolidates Australian Partnership
Damen Shipyards Group recently visited Adelaide to further consolidate their partnership with ASC Shipbuilding and Forgacs Marine and Defence (Forgacs) (ASC Forgacs Shipbuilding) to build twelve Offshore Patrol Vessels (OPV) for the Australian Navy and to explore domestic and export opportunities for both the commercial and naval markets. Roland Briene, Damen’s Area Director Asia Pacific, also highlighted two important milestones for Damen in Australia: the 5th anniversary of Damen’s Australian company…
Hapag-Lloyd Expects Post-Merger Job Cuts
German shipping company Hapag-Lloyd confirmed on Wednesday that it is looking to cut up to 12 percent of its almost 11,000 land-based workforce after completing its merger with Arab peer UASC last week. A spokesman at Hapag-Lloyd's Hamburg headquarters said the job cuts would be made over the next 18 months to two years, confirming a report in Abu Dhabi-based The National newspaper and hints to this effect earlier this year. The company did not say where jobs would be cut. Some 2,100 sea-based jobs would not be affected because vessels would continue to travel, the spokesman said.
MSC Inks 35-year Deal to Run Ivory Coast Terminal
Mediterranean Shipping Company (MSC) has signed a 35-year concession agreement with Ivory Coast's second port of San Pedro to operate its container terminal as part of a deal to upgrade the facility, the Swiss shipping company said on Tuesday. Ivory Coast is the world's leading producer of cocoa, and over half of its total output is exported via the port of San Pedro, which is located near the main western growing regions. The country's main port is Abidjan, which is one of the region's busiest.
Fjellstrand's Rolls Out Environmental Ferry
Norwegian ship yard Fjellstrand AS has signed a contract with Norwegian ferry operator Fjord1 for the building of a new ZeroCatTM 120 car ferry. Fjellstrand was also responsible for building the car ferry MF Ampere which wrote history in 2015 as the world’s first full electrical ferry. The yard had a central position in the introduction of new battery technology in the ferry market. The new ferry is a further development of the MF Ampere and will be equipped for higher speed and longer range.
Vard Confirms Fishing Vessel Contract for Aker BioMarine
Vard Holdings Limited (VARD), one of the major global designers and shipbuilders of specialized vessels, is pleased to announce that the contract for the design and construction of one krill fishing vessel for Aker BioMarine in Norway has been confirmed. The contract had been announced on 14 February 2017, with effectiveness of the contract still subject to certain conditions, including customary financing conditions. All conditions have now been fulfilled and the contract has become effective.
ICTSI Terminates Nigeria Port Project
International Container Terminal Services (ICTSI) subsidiary Lekki International Container Terminal Services LFTZ Enterprise (LICTSE) has given up on its Nigerian port project due to delays in its execution, reports Nikkei. LICTSE and Lekki Port LFTZ Enterprise (LPLE) have mutually agreed to terminate their sub-concession agreement dated Aug. 10, 2012. "The parties arrived at this decision following delays in the execution of the Lekki Port Project," ICTSI told the Philippine Stock Exchange.
Sungdong Wins Tanker Order
South Korea's Sungdong Shipbuilding won an order for seven mid-sized tankers, including two as an option, from a Greek shipowner, reported Korea Economic Daily. It has been more than one year that the Korean mid-sized shipyard to receive a newbuilding contract. Sungdong Shipbuilding signed a deal with Greece’s Kyklades Maritime to build five 115,000-ton tankers in firm order and two more in option. The per-ship newbuilding price is estimated at US$44 million. The report said…