Moody's Downgrades MOL
The rating company Moody's Japan K.K. has downgraded Japanese shipping company Mitsui O.S.K. Lines, Ltd.'s (MOL) corporate family rating to Ba2 from Ba1. The rating outlook is stable."We expect MOL's debt will not decline materially over the next few years and its leverage will likely remain above our downgrade guidance of 7.0x for a Ba1 rating," says Motoki Yanase, a Moody's Vice President and Senior Credit Officer.Moody's sees only a limited possibility for MOL to materially reduce its debt during the next several years…
ONE Drags Down NYK Line Earnings
Container line joint venture Ocean Network Express (ONE) dragged down NYK Line in the first half of 2018 ended September 30 with with Japanese shipping group in the red.NYK Line reported a loss of JPY 9.7 billion for the six months ended September 30, compared with a JPY6.2 billion profit a year earlier. The consolidated revenues amounted to JPY 915.6 billion, down from JPY 1,064.2 billion in the same period of the previous fiscal year.The new shipping line ONE, which was established with the aim of integrating the container shipping business with those of Kawasaki Kisen Kaisha, Ltd.
Ocean Express Network Incurs a USD600 mln Loss in First Year
Japanese carrier Ocean Network Express (ONE) is set to see losses spiral to $600m in its first year, says its revised consolidated business forecast for FY2018 (April 1, 2018 to March 31, 2019).The integrated container shipping operating company, which was established by Kawasaki Kisen Kaisha, Ltd., Mitsui O.S.K. Lines Ltd., and Nippon Yusen Kabushiki Kaisha, said in a press statement that the loss is attributed to its struggle with a new information technology, staff shortages and a rapidly rising fuel costs.Singapore-headquartered ONE…
Autonomous Shipping Pushing Full Steam Ahead
Rolls Royce and Intel Artificial Intelligence (AI) announced that they’re bringing advanced intelligence to cargo shipping to deliver on the benefits of an autonomous shipping future.As part of its effort to make commercial shipping safer and more efficient, Rolls-Royce is working to develop fully autonomous shipping solutions using artificial intelligence (AI) powered by Intel Xeon Scalable processors and Intel 3D NAND SSDs for storage.“Delivering these systems is all about processing – moving and storing huge volumes of data – and that is where Intel comes in.
NYK Group Celebrates Successful O3 Challenge
Symphony Creative Solutions (SCS) an NYK Group company, held a thank you party with Ocean Network Express (ONE) at ONE’s head office to celebrate a successful Ocean of Opportunities Challenge (O3 Challenge), a contest for startups that was conducted from April to June 2018.Partners including NUS Enterprise and the Maritime and Port Authority of Singapore (MPA) were in attendance, and the solutions of the three O3 Challenge winners were introduced.The O3 Challenge, a worldwide contest aimed at creating new value through open innovation in the maritime industry…
Ocean Network Express Calls APM Terminals Mumbai
NYK ARTEMIS, part of Ocean Network Express’s (ONE) PS3 service made its maiden call at APM Terminals’ Gateway Terminals of India (GTI) offers connectivity to the Far-east Asian ports along with United States West Coast ports of Oakland and Los Angeles. This is the first call by the newly established ONE line to Mumbai’s Nhava Sheva terminal. ONE was established in 2017 by the integration of three Japanese shipping companies - Kawasaki Kisen Kaisha Ltd ("K" Line), Mitsui O.S.K. Lines Ltd (MOL) and Nippon Yusen Kabushiki Kaisha (NYK).
FMC Approves Filings by the New York Shipping Exchange
In December 2017, the U.S. Federal Maritime Commission voted to allow the New York Shipping Exchange (NYSHEX) to move forward with two agreements it filed pursuant to the Shipping Act. The first filing is based on an agreement by ocean common carriers to participate on the NYSHEX Exchange Board. This authorizes the parties to develop, manage, market and operate a digital freight contracting process, called the New York Shipping Exchange, through participation on the Board of NYSHEX. Parties to the agreement are CMA CGM SA; Hapag Lloyd AG; Mitsui O.S.K.
GTT Bags Order for Three LNG Carriers, One Bunkering Vessel
GTT announces it has received several orders, since the beginning of the year, for the equipment of three LNG Carriers (LNGCs) and one bunkering vessel. The three LNGCs, offering capacities ranging from 174,000 to 180,000 m3, will be built at Samsung Heavy Industries (SHI) and Hyundai Samho Heavy Industries (HSHI)’s. They will be fitted with the membrane containment system Mark III Flex. Their deliveries are expected for 2020. In addition, the latest evolution of the Mark III system…
MOL, FEIA Team to Develop North Sea Route
Mitsui O.S.K. Lines, Ltd. signed a Memorandum of Understanding with the Far East Investment and Export Agency under the Ministry of the Russian Federation for the Development of the Far East to cooperate with each other in the development of the Northern Sea Route and the Russian Far East. MOL has been participating in the Yamal LNG Project, which is the world first large scale energy project that exports cargoes through the Northern Sea Route, and MOL’s first ice-breaking LNG carrier for the project is slated to go into service at the end of March…
MOL: New Stowage System for Car Carriers
Mitsui O.S.K. Lines, Ltd. introduced an upgraded stowage planning system for car carriers called “MOL-CAPS”. The MOL-CAPS system generates a voyage-by-voyage stowage plan that determines where to stow specific vehicles in consideration of different factors, such as the onboard structure, the type of vehicles being transported, and calling ports. The company introduced MOL-CAPS in 1999, and will adopt this new version for the next-generation car carriers, the FLEXIE series, which will be delivered starting in March 2018.
MOL Announced Delivery of Beluga Ace Car Carrier
Mitsui O.S.K. Lines, Ltd. has taken delivery of the first car carrier of the next-generation “FLEXIE” series, the Beluga Ace, which was built at the Minaminippon Shipbuilding Co., Ltd. The vessel features six liftable decks, compared with two on conventional car carriers. This allows the Beluga Ace to more effectively meet demand for more diversified vehicle and high and heavy cargo transport, MOL said. The hull design is a complete departure from current car carriers, MOL said.
MOL Graduates Final Class in 3rd Year Program
Mitsui O.S.K. Lines, Ltd. announced the graduation of 87 students in the seventh and final class of the "3rd Year Program," which MOL introduced with the goal of developing crew members who will uphold strict safety standards in vessel operation. The “3rd Year Program” targeted new seafarers from among third-year students at partner maritime schools in the Philippines. MOL provided education and training at the Magsaysay Institute of Shipping (MIS), its training center in the Philippines. MIS was jointly established by MOL and Magsaysay Maritime Corporation in 1993.
Container Shipping: ONE Begins
Japan's Ocean Network Express (ONE) announced the commencement of container shipping businesses on April 1, 2018. ONE is the result of an integration of the container operations of three Japanese shipping carriers, namely, Kawasaki Kisen Kaisha, Ltd ("K" Line), Mitsui O.S.K. Lines, Ltd (MOL) and Nippon Yusen Kabushiki Kaisha (NYK). In April 2017, MOL, NYK and 'K' Line, started services as "THE Alliance" with other major domestic and foreign shipping companies. Ocean Network Express will continue to provide services as an alliance member.
ONE Stakeholders Announce Completion of Investment Payment
Japan's Kawasaki Kisen Kaisha, Ltd., Mitsui O.S.K. Lines, Ltd., and Nippon Yusen Kabushiki Kaisha have announced the completion of payment for investment in their new joint venture in the container shipping business, Ocean Network Express Pte. Ltd. (ONE). The JV was established in July 2017, with service commencing on April 1, 2018 with a total investment of USD 3 billion. The JV will be offering 85 services, calling at over 200 ports in 100 countries. K Line and MOL each hold 31 pct stake in the JV, while NYK participates with 38 pct share.
Tanker Rescues Castaway in South China Sea
Mitsui O.S.K. Lines, Ltd. announced that on April 14, 2018, the MOL-operated/managed crude oil tanker Altair Trader rescued a castaway in the South China Sea.At 19:10 local time on April 14, while underway in the South China Sea toward the port of Kawasaki, Japan, the Altair Trader noticed a light on the sea surface ahead the starboard and spotted a castaway.The vessel immediately turned around and started rescue operations, and by 20:28 the same day, the survivor was safely rescued.At 22:30 on April 15…
Mega 20,150 TEU Containership Named MOL Triumph
A new 20,150 TEU containership has captured the “world’s largest” title: MOL Triumph, the first in a series of new mega containerships for Japan’s Mitsui O.S.K. Lines, Ltd., (MOL) was named at Samsung Heavy Industries, Ltd.’s (SHI) Geoje, South Korea shipyard. MOL Triumph is the first of four 20,000 TEU class ultra-large container carriers ordered by MOL in February 2015 to be built by SHI for 2017 delivery. Each surpasses the record setting 19,000+ TEU vessels built by Daewoo Shipbuilding & Marine Engineering (DSME) for Mediterranean Shipping Company (MSC)…
World's Largest Containership in Shanghai
MOL Triumph, the world's largest containership with a carrying capacity of 20,170 TEU, successfully arrived at Yangshan Port in Shanghai on April 10, 2017, said Mitsui O.S.K. Lines, Ltd. MOL took delivery of MOL Triumph, the first of six 20,000 TEU-class containerships from Samsung Heavy Industries on March 27, 2017. At 400 meters in length and 58.8 meters in width, MOL Triumph is longer than the Oriental Pearl Radio and TV Tower of Shanghai is tall. MOL established MOL (China) in Shanghai in 1995.
U.S. FMC Unanimously Rejects Proposed Tripartite Pact
U.S. Federal Maritime Commissioner William P. Yesterday, I voted to reject the Tripartite Agreement proposed by Kawasaki Kisen Kaisha, Ltd. (K Line); Mitsui O.S.K. Lines Ltd. (MOL); and Nippon Yusen Kaisha (NYK). This agreement was unanimously rejected by the Commissioners on the Federal Maritime Commission (FMC). This decision by the FMC in no way precludes the Japanese carriers from merging their container trade business units into a single stand-alone company. Rather, the vote…
KotugSmit, MOL Team up for Smart Operations
Mitsui O.S.K. Lines, Ltd. (container, tanker, dry-bulk and car carrier divisions) and KOTUG SMIT TOWAGE (KotugSmit) signed long term towage agreements, effective early 2017. The two have agreed upon a long term towage contract for the ports of Rotterdam, Antwerp, Ghent, Terneuzen, Flushing, Bremerhaven, Hamburg, London and Southampton. With this strategic partnership, both organizations aim to boost operational performances by benefiting from smart collaboration and sharing operational knowledge and valuable information.
A Full Agenda for the International Container Trades
The past couple of months have been chock-a-block full of maritime activity in the international container trades. As the Big-3 Japanese Lines remain still on track to spin-off their container business units into a single standalone container carrier company, some delayed merger and acquisition activity is finally moving ahead. Separately, Congress has taken a keen interest in the Shipping Act. On May 2, 2017, the U.S. Federal Maritime Commission (FMC), unanimously voted to reject the Tripartite Agreement proposed by Kawasaki Kisen Kaisha, Ltd. (K Line); Mitsui O.S.K. Lines Ltd.
FMC Commissioner Doyle Weighs in on THE Alliance Proposed Amendment
Federal Maritime Commissioner William P. Doyle issued a statement addressing THE Alliance’s filing of an amendment to add further detail to protections in the event of an insolvency. I am pleased that The Alliance is seeking Federal Maritime Commission authority to form, contribute funds to, develop rules for, and administer a contingency fund designed to protect against the effects of one of the parties experiencing financial distress or an insolvency event. Parties to THE Alliance Agreement (Agreement No.: 012439) filed an amendment with the Federal Maritime Commission on August 7…
Hoegh Autoliners Denies Price-fixing Allegations
Norwegian shipping firm Hoegh Autoliners denied on Tuesday allegations made by South Africa that it and Japanese rival Mitsui O.S.K Lines had colluded to fix transport tariffs to and from South Africa. Hoegh Autoliners specializes in transporting cars, controlling 50 specialized vessels or 6-7 percent of the global fleet in this market. South Africa's Competition Commission said on Tuesday Hoegh Autoliners had been referred for prosecution on seven charges relating to collusive tendering, price fixing and market division.
THE Alliance Sets $50 Mln Insolvency Contingency Fund
Remarks from Federal Maritime Commissioner William P. Doyle at the FTR Transportation Conference 2017, Indianapolis, Ind. On September 13, 2017, I voted to expedite the Commission’s decision and support THE Alliance’s amendment authorizing creation of a contingency trust fund designed to protect customers’ cargo and the ocean transportation chain should one of THE Alliance’s carriers experience financial distress or an insolvency event. I support the goal behind this amendment: the smooth and continuous flow of cargo even in the face of another ocean carrier bankruptcy or catastrophic failure.
Fiat Chrysler Sues Shippers over Alleged Price Fixing
The automaker wants the Federal Maritime Commission to order payments from Wallenius Wilhelmsen Logistics AS and its sister company EUKOR Car Carriers Inc, Nippon Yusen Kabushiki Kaisha, Mitsui O.S.K. Lines Ltd, Compania Sud Americana de Vapores, Hoegh Autoliners AS and affiliated companies. Fiat Chrysler filed its complaint on Oct. 17. All but one of the shippers sued by Fiat Chrysler pleaded guilty and admitted to price fixing as part of a Justice Department investigation. The remaining firm, Hoegh, agreed last month to plead guilty and pay a $21 million criminal fine.
MOL ‘Tabletop Drill’ for Serious Marine Incident
Mitsui O.S.K. Lines, Ltd. today announced that the company conducted a tabletop drill based on a scenario in which an iron ore carrier, managed by its group ship management company, collided with a breakwater, leaving it stranded in the Port of Kashima. The drill was held on Wednesday, November 16, 2016, with the goal of strengthening the company emergency response structure, which is based on the MOL Group Corporate Principles — nurture and protect the natural environment by maintaining the highest standards of operational safety and navigation.
MES Delivered Three Automated Intermodal Yard Cranes to TraPac
Mitsui Engineering & Shipbuilding Co., Ltd. (MES) through their 100% subsidiary company, PACECO CORP., has recently delivered three (3) new automated intermodal container yard facility Cranes to TraPac Terminal at Port of Los Angeles. TraPac is a US container terminal operator having three (3) terminals in Oakland, Los Angeles (CA) and Jacksonville (FL), founded in 1985 by parent company “Mitsui O.S.K. Lines, Ltd”. TraPac Terminal together with Port of Los Angeles expanded, modernized…