Saudi Arabia News

On Watch: International Coalition Monitors, Protects Middle East Shipping Lanes

The International Maritime Security Construct (IMSC) was created July 2019 as a way to deter unprofessional behavior in the waters of the Middle East region through its operational arm, Coalition Task Force (CTF) Sentinel.The IMSC comprises eight nations – Albania, Australia, Bahrain, Saudi Arabia, Lithuania, United Arab Emirates, United Kingdom and United States – who deploy personnel, ships and aircraft throughout the region as part of the international surveillance and detection effort.Since establishing CTF Sentinel…

Second Wave of Floating Storage Triggered by Ailing Oil Market

A stalled global economic recovery from the coronavirus pandemic is leading to a fresh build-up of global oil supplies, pushing traders including Trafigura to book tankers to store millions of barrels of crude oil and refined fuels at sea again.The use of so-called floating storage onboard tankers comes as traditional onshore storage remains close to capacity as supplies outpace demand.Trading house Trafigura has chartered at least five of the largest tankers each capable of storing 2 million barrels of oil…

Deadly Explosion Rips Through Beirut Port Area

A powerful blast in port warehouses near central Beirut storing highly explosive material killed 78 people, injured nearly 4,000 and sent seismic shockwaves that shattered windows, smashed masonry and shook the ground across the Lebanese capital.Officials said they expected the death toll to rise further after Tuesday's blast as emergency workers dug through rubble to rescue people and remove the dead. It was the most powerful explosion in years in Beirut, which is already reeling from an economic crisis and a surge in coronavirus infections.President Michel Aoun said that 2…

Governments Pledge Crew Change Action

A dozen countries have have committed to facilitate crew changes and achieve key worker designation for seafarers, following a virtual ministerial summit hosted by the U.K. government on Thursday, marking progress to help resolve a growing crisis facing the maritime industry, and enable hundreds of thousands of stranded seafarers to go home or join ships.“The inability of ship operators worldwide to conduct ship’s crew changes is the single most pressing maritime operational challenge to the safe and efficient movement of global trade…

Abu Dhabi Ports Launches Feeder Service

Abu Dhabi Ports has established a new feeder services company, SAFEEN FEEDERS, to serve the group’s mainliner shipping clients in the Gulf region.SAFEEN FEEDERS will introduce a new feeder service linking Abu Dhabi to ports serving the UAE, the broader Gulf region and Indian Sub-Continent. The service will be executed in partnership with feeder service operator Bengal Tiger Line (BTL) through a vessel sharing agreement.The service will allow for exchange of container cargo between mainliner vessels and the vessels within the rotation calling at nine regional ports located across the UAE…

BIMCO Tanker Rate Analysis: Reality Kicks In, Rates Fall

Tanker shipping: sky high freight rates replaced by reality of falling global oil demandGeopolitical tensions have now eased, leaving freight rates to feel the full effects of the weak underlying market and falling demand. Tanker shipping looks set to be under pressure for the rest of the year.Demand drivers and freight ratesThe tanker shipping industry was once again caught in a whirlwind, as freight rates skyrocketed with little regard to the poor market fundamentals before the latter once again caught up with rates.

Bahri Takes First of Four New Bulk Carriers

Saudi Arabian ship owner Bahri said it has taken delivery of the new Kamsarmax bulk carrier Sara, built by Hyundai Vietnam Shipbuilding (HVS), a subsidiary of Hyundai Mipo Dockyard Co. Ltd. (HMD).The 81,000 dwt vessel is the first in a series of four ordered by Bahri Dry Bulk from South Korea’s HMD in August 2017. The three remaining vessels are all scheduled to be delivered this year.The new ship will transport basic grains, such as wheat, barley, corn and other dry-bulk cargoes, for import into Saudi Arabia.The 229-meter newbuild increases the Bahri’s fleet of dry-bulk carriers to six ships.

US Crude Futures Plunge to Lowest on Record

U.S. crude oil futures collapsed below $0 on Monday for the first time in history, amid a coronavirus-induced supply glut, ending the day at a stunning minus $37.63 a barrel as desperate traders paid to get rid of oil.Brent crude, the international benchmark, also slumped, but that contract was nowhere near as weak because more storage is available worldwide.While U.S. oil prices are trading in negative territory for the first time ever, it is unclear whether that will trickle down to consumers…

Record Oil Output Cuts Fail to Make Waves in Coronavirus-hit Market

The minimal impact on oil prices from a global deal for record output cuts showed that oil producers have a mountain to climb if they are to restore market balance as the coronavirus shreds demand and sends stockpiles soaring, industry watchers said.After several days of discussions, oil producing and consuming countries aim to remove nearly 20 million barrels per day (bpd) or 20% of global supply from the market, Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman said on Monday.The oil market has barely shrugged, however: Brent crude gained 1.5% on Monday, while U.S.

OPEC+ Outlines Record Oil Production Cut; Mexico Balks

OPEC, Russia and other allies outlined plans on Thursday to cut their oil output by more than a fifth and said they expected the United States and other producers to join in their effort to prop up prices hammered by the coronavirus crisis.But the group, known as OPEC+, said a final agreement was dependent on Mexico signing up to the pact after it balked at the production cuts it was asked to make. Discussions among top global energy ministers will resume on Friday.The planned output curbs by OPEC+ amount to 10 million barrels per day (bpd) or 10% of global supplies…

Saudi, Russia Closing in on Record Oil Cut Deal

OPEC and it allies held talks on Thursday on record oil output curbs of about 15 million barrels per day (bpd) or more, roughly 15% of global supplies, to support prices hammered by the coronavirus crisis, sources involved in the discussions said.They said the plan included cuts of about 5 million bpd from producers outside the group known as OPEC+ and could be made gradually, as the group seeks to overcome resistance from the United States whose involvement they see as vital to a deal.Talks have been complicated by friction between OPEC leader Saudi Arabia and non-OPEC Russia…

Shipping Industry Urges Free Movement of Crews to Keep Trade Moving

Ships must be allowed to change over overworked and exhausted crews to help to keep trade flowing as coronavirus lockdowns shut many transit points across the globe, shipping industry officials said on Tuesday.About 90% of world trade is transported by sea but a deepening lockdown in many countries and suspended air travel have disrupted supply chains, especially for ship owners who rely on the free movement of crews to keep ships moving.The International Chamber of Shipping association (ICS)…

US Says No Requests Yet to Waive Jones Act to Help Oil Companies

The U.S. government said on Monday it has not yet received requests to waive a 100-year-old law on shipping goods between domestic ports, despite some interested parties who say temporarily lifting the regulation would help energy companies hurt by the oil price plunge.Kelly Cahalan, a spokesperson at the U.S Customs and Border Protection agency of the Department of Homeland Security, said no requests to waive the Merchant Marine Act, better known as the Jones Act, have been received.U.S.

While Oil Prices Plummets, Tanker Rates Fly High

If one ever needed proof that, no matter how dire the situation, there is always a silver lining, look no further than the crude tanker market, which has seen it day rates skyrocket in the face of a global pandemic that has effectively ground world commerce to a crawl.As is the case with other gravity defying business phenomena, geopolitics is a central factor, in this case a battle between Russia and Saudi Arabia to flood the world with oil in the face of declining demand and…

Oil Tanker Rates Double

Supertanker freight rates are on the rise for a second time this month as producers, refiners and traders scramble to secure ships to transport crude or store a fast-growing global glut of oil, industry sources said.Freight rates for very large crude-oil carriers (VLCC) along the Middle East Gulf to China route were assessed at about $180,000 a day on Monday, up from some $125,000 on Friday and a weekly low of about $90,000 a day on Wednesday, according to several ship broking sources.Its difficult to say whether or not the rates will be sustained…

Shipping Not Immune to a Pandemic -BIMCO

The World Health Organization (WHO) has declared the outbreak of the novel coronavirus a pandemic. There is little doubt that this will have significant implications for the shipping industry. But to what extent? BIMCO expects that the strict containment measures imposed by governments around the world will result in substantially lower global economic growth and consequentially, lower demand for shipping. Container and dry bulk shipping are at the front line when it comes to feeling the fallout…

Most Bunker Sales in Singapore are Low-sulphur Fuels -BIMCO

Low-sulphur fuels accounted for 84% of total February sales in Singapore, slightly up from 83% in January. The sale of low-sulphur fuel oil (LSFO) made up the largest component at 71.5%, with marine gas oil (MGO) accounting for 12.5%, BIMCO reports.Total bunker sales in February fell 16% to 3.9 million metric tons compared with January, reflecting lower demand for shipping as the coronavirus paralyzed intra-Asian supply chains.Now that both the sulphur cap and the non-compliant fuel oil carriage ban have come into force…

BIMCO Revises 2020 Forecast

The coronavirus pandemic is impacting global shipping demand for 2020 negatively. The speed of the virus spread makes it difficult to assess the full consequences. Nevertheless, we see a need to update our 2020 forecast to make some of this massive uncertainty tangible.What is going on in addition to the coronavirus pandemic?Geopolitical tensions that made the OPEC+ alliance break down, has subsequently made the crude oil tanker spot freight market erupt. The events that followed the breakdown - and those that are likely to follow…

US Lifts Sanctions on COSCO's Dalian Unit

The United States on Friday lifted sanctions on one of two units of the Chinese tanker company COSCO, the U.S. Treasury said, partially reversing its punishment on the company for transporting Iranian oil after China complained about the measure in trade talks with Washington.President Donald Trump's administration on Sept. 25 blacklisted two units of COSCO, named after the northeastern Chinese port of Dalian. The move sent worldwide freight costs to record highs and disrupted the global shipping market.The U.S.

RSGT Welcomes Advanced Terminal Equipment

Red Sea Gateway Terminal (RSGT) announced the arrival of the first consignment of new advanced terminal equipment, which includes terminal trucks and trailers that will accelerate and speed up port and quay operations at the Northern Part of Jeddah Islamic Port (JIP), the biggest and busiest port in Saudi Arabia.Jeddah Islamic Port is the primary port of call and trade conduit for trade and shipping in and out of the Kingdom via the Suez Canal.The delivery of the new advanced…

Saudi-led Coalition Thwarts Red Sea Attack

Naval forces from the Saudi-led coalition fighting in Yemen on Sunday foiled an "imminent terrorist" attack by the Iran-aligned Houthi movement in the southern Red Sea, a major commercial shipping channel, the coalition said.The forces destroyed an unmanned boat laden with explosives that was launched from Hodeidah province in western Yemen, coalition spokesman Colonel Turki al-Malki said in a statement on Saudi state news agency SPA, without identifying the targets.There was no immediate confirmation from the Houthi movement…

Hamburg Port Defends Service Losses

Germany's largest port, the Port of Hamburg not expecting reduction in container throughput caused by liner service changes announced by Ocean Alliance and Maersk.From April, the Ocean Alliance NEU 5 service handled by EUROGATE Container Terminal Hamburg – CTH is being transferred to Antwerp, said a press release from the a sea port on the river Elbe in Hamburg, Germany, 110 kilometres from its mouth on the North Sea."This service will be run by the Ocean Alliance Partner, CMA CGM as FAL 3 with an approximate annual volume of 150…

Bahri Posts 172% Surge in Q4 Net Profit

The National Shipping Company of Saudi Arabia (Bahri) has reported strong financial results for the quarter and the full year ended December 31, 2019, underpinned by an increase in returns of several business units.The transportation and logistics company said in a press release that its fourth-quarter net profit surged 172.48 percent to SAR 249.08 million ($66.4 million) from SAR 91.41 million reported in the same period in 2018.Total revenue came in at SAR 1.93 billion, up 8.85…

Vado Gateway Welcomes First Ship

APM Terminals said that its new deep-sea container terminal, Vado Gateway terminal, located in Vado Ligure, Italy, received its first commercial service on 11 February 2020.The ship, M/V Maersk Kota, was the first of seven ships from Maersk’s weekly ME2 service, connecting the Mediterranean with the Middle East and India.According to a company release, the call by M/V Maersk Kota marked the start of operations for the new deep-sea Vado Gateway container terminal in northern Italy.With a total investment of 450 million euros…

Inmarsat Launches Services in Saudi Arabia

Inmarsat has announced that it will bring its maritime, aviation and enterprise connectivity solutions to customers based in Saudi Arabia through new partner agreements.The company additionally announced that it has secured new spectrum licences to deliver both its narrow-band (L-band) and high-capacity broadband (Ka-band), Global Xpress (GX), services in Saudi Arabia, enabling Saudi-based businesses to deploy these services for the first time.Fixed and mobile satellite telecommunications…

Booking Frenzy Sends Tanker Rates Soaring

The cost to transport oil on supertankers soared on Thursday as major producers scrambled to secure vessels to ship more crude in a bid to regain market share and buyers took advantage of plunging oil prices.Freight charges to ship oil in very large crude carriers (VLCCs) from the Middle East, which is home to the largest OPEC producers, to China, the world's top crude oil importer, nearly doubled overnight.VLCC tanker rates along the busy Middle East Gulf to China route jumped to about $160…