Four New Dual-fuel Bulkers to Support U-Ming Charter Deal
U-Ming Marine Transport Corporation, Taiwan’s largest publicly listed bulk carrier company, secured a 10-year liquefied natural gas (LNG) dual-fuel dry bulk charter contract with global mining company Anglo American.A fleet of four LNG dual-fuel Tier III 190,000 DWT bulk carriers measuring 299 by 47.5 meters each will be built by Shanghai Waigaoqiao Shipbuilding (SWS) to support the charter. The new ships are expected to be delivered through 2023.The ships will be fitted with MAN Energy Solutions’ high-pressure ME-GI engines.
How the Major Dry Bulk Commodities Drive the Freight Market into Q4
The world is in the midst of the second coronavirus wave and with that comes the natural question of how the current dynamics will play out for the dry bulk shipping market. Demand and the subsequent cargo flow of the major dry bulk commodities are critical for the freight market, as we enter the final quarter of the year.Iron ore…has without question performed well this year, on occasion even better than gold, driven by the robust demand generated by China, as the world’s leading iron ore consumer.
Baltic Index Gains as Capesize Vessel Rates Rise
The Baltic Exchange's main sea freight index rose for a second consecutive session on Tuesday, buoyed by stronger rates for capesize vessels.The Baltic dry index, which tracks rates for ships ferrying dry bulk commodities and reflects rates for capesize, panamax and supramax vessels, was up seven points, or 0.5%, at 1,289 points.The capesize index gained 24 points, or 1.3%, at 1,922 points, hitting its highest since Sept.
Chinese Demand Keeping the Dry Bulk Market Going -BIMCO
An impressive recovery in Chinese dry bulk imports has protected the industry from the effects of falling demand in the rest of the world. High deliveries and low contracting have left the orderbook at multi-year lows, but – with the poor outlook – the current influx of new dry bulk ships orders is not what is needed.Demand drivers and freight ratesThe biggest story in the dry bulk industry in recent months has been the strength of the recovery in major Chinese imports. These are up across the board…
US Great Lakes Ports See Mixed Impacts from COVID-19
U.S. Great Lakes ports reported mixed results in June with aluminum, road salt and grain shipments holding strong despite the coronavirus pandemic, while shipments of commodities related to steel production and manufacturing have continued to slide.Additionally, the St. Lawrence Seaway reported that from April 1 to June 30, nearly 11.7 million metric tons of cargo was shipped via the bi-national trade corridor. While these volumes were down 8% compared to the same time period in 2019, cargo shipments improved in June narrowing the year-over-year decline.Craig H.
Port of Indiana-Mt. Vernon Makes ‘Next Generation’ Terminal Upgrades
A recently completed a $2 million capital improvement project aims to attract more cargo to one of the nation’s largest inland ports.Situated 153 miles from the confluence of the Ohio and Mississippi Rivers, the Port of Indiana-Mount Vernon connects the Ohio River Valley region’s agriculture, coal and manufacturing industries to the rest of the world via year-round access to the Gulf of Mexico and Great Lakes through the inland waterways system.Each year, more than 3,600 barges…
MAN Cryo Develops Liquefied Methane Terminal in Swedish Port
OxGas, a company fully owned by the Port of Oxelösund in Sweden has commissioned MAN Energy Solutions to act as “owners engineer” in the development and construction of a multi-functional terminal for liquefied methane based fuels in the port of Oxelösund. The terminal will be designed to feed both liquefied natural gas (LNG) and green methane derived from bio gas to SSAB ’s steel production in Oxelösund, and to re-distribute it via train and trailers to other parts of Sweden.The…
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…
Philippines Ports Open to All Ships Despite Virus Fears
The Philippines said on Wednesday its ports remain open to all ships, even those from China, in order not to disrupt the cargo supply chain, but the crew of vessels arriving from the coronavirus-hit nation will be barred from disembarking.All foreigners traveling from China and its two special administrative regions - Hong Kong and Macau - are currently barred from entering the Philippines amid a fast-spreading coronavirus outbreak that has killed nearly 500 people in China.A Chinese man who arrived from China's Wuhan city, where the virus emerged last year, has also died in the Philippines.Co
World Seaborne Coal Trade Rose 0.7% in 2019
Seaborne coal trade around the world grew 0.7% last year, helped by higher output in China and Indonesia and more export activity by Indonesia, Australia, Russia and Canada, Germany's VDKI coal importers lobby said on Friday.Imports and exports, counted together, rose to 1.218 billion tonnes from 1.210 billion tonnes in 2018, VDKI Managing Director Franz-Josef Wodopia said in an speech made available to Reuters, citing VDKI estimates.Within the 2019 total, trade in coking coal used for steelmaking dropped by 1% to 287 million tonnes as steel production declined, the Verein der Kohlenimporteure
BIMCO: Supply & Demand Trending Off-Balance
One of the most worrying trends that has developed recently - which will affect shipping demand in the years to come - is the falling trade-to-GDP ratio. The falling ratio can be explained by slowing globaliztation as well as increasing protectionist measures being implemented around the world, spear headed by the US. The raised barriers to trade are here to stay as we enter a new decade, with the shipping industry stuck with the consequences.The trade war is the clearest example of these extra barriers to trade…
Baltic Index Snaps 7-day Win Streak as Capesize Drags
The Baltic Exchange's main sea freight index fell on Monday, breaking a seven-day winning streak as rates for capesize vessels eased.The Baltic index, which tracks rates for ships ferrying dry bulk commodities, fell 21 points, or 1%, to 2,067 points.The capesize index fell 98 points, or 2.6%, to 3,728 points. Average daily earnings for capesizes, which typically transport 170,000 tonne-180,000 tonne cargoes such as iron ore and coal, fell $743 to $28,881.Dalian iron ore futures gave up early gains and ended lower on Monday…
China to Cut Steel Capacity by 2025
China will shut down more outdated steel plants and bring total capacity to less than 1 billion tonnes by 2025, the president of the country's steel industry association said, adding that national demand for the metal is set to decline gradually. With more than three quarters of firms suffering losses as a result of a price-sapping capacity surplus, China vowed in early 2016 to shut 150-150 million tonnes of annual production in five years in a bid to raise profitability and utilisation rates in the sector. Its capacity then was estimated at 1.2 billion tonnes.
As Trade War Escalates, China's Steel Exports are Rising
The European Commission will this week unveil its proposed provisional "safeguard" measures to limit steel imports in response to the imposition of 25 percent tariffs on steel imports by the United States.The European Union fears that the U.S. tariff barrier will simply divert more steel into its marketplace. Others are equally concerned, with India also planning its own "safeguards".Such is the ripple effect of tariffs. Walls beget more walls.As the steel trade war heats up,…
Water Outflow on Seaway Now Above 10,400 CMS
The Chamber of Marine Commerce supports the International Lake Ontario-St. Lawrence River Board’s decision Friday to continue flow rates from the Moses-Saunders dam at 10,400 cubic meters per second (CMS).Maintaining the 10,400 CMS outflow still results in a significant cost to the economy, with an estimated $2.3 million to $3 million in business revenues lost for every day it’s in place due to delays for all ship transits through the Seaway.The Chamber’s ship operators are following…
U.S.-Flag June Laker Cargo Up 2.3 PCT
U.S.-flag Great Lakes freighters (lakers) moved 9.9 million tons of cargo in June, an increase of 2.3 percent from a year ago. The June float was, however, a near mirror image of the month’s 5-year average.Iron ore cargos for steel production totaled 5.1 million tons, an increase of 10.5 percent from 2018, but a 7.6 percent decrease from June’s 5-year average. Coal loads totaled 1.3 million tons, a decrease of 5.2 percent from 2018 and 24.2 percent from the month’s 5-year average.Year-to-date U.S.-flag cargo movement stands at 32.3 million tons…
U.S.-Flag Laker Cargo Up 23% in April
U.S.-flag Great Lakes freighters (lakers) moved 7.5 million tons of cargo in April, an increase of 23 percent compared to a year ago. The April float was 20.7 percent above the month’s 5-year average.April iron ore cargos for steel production totaled 4.3 million tons, an increase of 9.2 percent from last year and an increase of 18 percent from the month’s 5-year average. Coal shipments rose 61.3 percent to 1.2 million tons. Limestone cargos increased 37 percent to 1.5 million tons.Year-to-date U.S.-flag carriage stands at 11.8 million tons…
Volume Rises at Port of Rotterdam
Port of Rotterdam posted a record overall freight tonnage in the first quarter of 2019, up 5.1% on the same period last year, thanks to strong growth in container traffic.In total, 123.9 million tonnes were handled compared with 117.8 million tonnes in the same period in 2018."The increase mainly concerned the throughput of containers (+7.3% in TEU, +5.9% in tonnes) and fuels. Mineral oil products, iron ore and scrap throughput fell," said a press release from the largest port in Europe…
“It’s the steel production, stupid!”
BIMCO's Peter Sand, in a new report, weighs in on the implications for the Dry Bulk sectors.Chinese imports of iron ore keep falling, while its crude steel production keeps growing. China’s increased use of scrap metal for its production of crude steel is fundamentally critical to the dry bulk shipping industry. Mostly Capesize ships are impacted by this, way beyond the temporary iron ore export disruptions in Brazil and Australia.Chinese steel production grew by a massive 12.6 million tonnes (+9.2%) in the first two months on 2019 as estimated by China Iron and Steel Association (CISA).
US-flag Great Lakes Cargo Shipping Steadies
U.S.-flag Great Lakes freighters (lakers) moved 9.7 million tons of cargo in June, a near mirror image of a year ago but 3.5 percent below the month’s five-year average, the Lake Carriers’ Association reported.Iron ore cargos for steel production totaled 4.6 million tons, a decrease of 6.9 percent, while coal loads totaled 1.4 million tons, a decrease of 13.7 percent.Offsetting those decreases was a 21 percent surge in limestone cargos. Shipments of aggregate, fluxstone, chemical…
Evergreen Group Celebrates 50th Anniversary
Evergreen Group celebrated its 50th Anniversary at the Chang Yung-Fa Foundation, home of the charity set-up by Evergreen Group Founder and Chairman Dr. Y.F. Chang, said a press release from the company.In addition to senior executives and employees of the Group’s businesses, the event was also attended by public officials, customers and business agents from both the shipping and airline industries as well as representatives of supply chain partners from more than fifty countries.The…
US-flag Great Lakes Cargo Movement Steady in July
U.S.-flag Great Lakes freighters (lakers) moved 9.8 million tons of cargo in July, a virtual tie with a year ago, the Lake Carriers’ Association reported. The July float was, however, 6.4 percent below the month’s five-year average.Iron ore cargos for steel production totaled 5.2 million tons, an increase of 5 percent. The July ore float was also the highest monthly total for U.S.-flag lakers since December 2014.Coal loads totaled 1.3 million tons, a decrease of nearly 11 percent.
US-flag Cargo Movement on Great Lakes Dips 8%
U.S.-flag Great Lakes freighters (lakers) moved 9.26 million tons of cargo in September, a decrease of 8.3 percent compared to a year ago, the Lake Carriers’ Association (LCA) reported. The September float was also 6.6 percent below the month’s five-year average.Iron ore cargos for steel production totaled 4.7 million tons, a decrease of 3.5 percent compared to a year ago, LCA said.Coal loads totaled 1.25 million tons, a decrease of 33 percent compared to a year ago. Shipments of aggregate…
Cautious Optimism on Multipurpose Shipping: Drewry
Recovering demand for multipurpose shipping combined with improved market conditions for competing sectors will result in rising market share for the multipurpose shipping fleet and a recovery in freight rates in 2018, according to the latest Multipurpose Shipping Market Review and Forecaster report published by global shipping consultancy Drewry. Although China’s plans to curb steel production in an attempt to clean-up the air pollution blighting its cities may well slow steel exports over the short term, the longer term outlook is still positive for the multipurpose and heavy lift sector.
Intermarine UK Opens New Facility
Maritime engineering company Intermarine UK has unveiled growth plans after investing a six-figure sum in a new 2,400sqm fabrication and welding facility at Portland Port in Dorset, U.K. creating up to 60 new jobs for local people in the next two years. The move sees Intermarine UK sign a 20-year lease and move its U.K. head office from Bridgend to Portland Port, a former naval base and the world’s second largest manmade harbor. Inter Marine Group President Slawomir Kalicki said the Polish owned company will start operations from March offering ship repair services at Portland.
US-flag Great Lakes Shipping Down in March
Cargo moved by U.S.-flag Great Lakes freighters in March decreased 13 percent compared to a year ago, the Lake Carriers’ Association reported. However, the March float of 1.8 million tons topped the month’s five-year average by more than 15 percent.Iron ore cargos for steel production dominated the month. Cargos totaled 1.4 million tons, a decrease of 17 percent. That no iron ore moved from Escanaba, Mich., is a factor in the decrease. That port used to resume iron ore shipments in early to mid-March. However, the mine that shipped through Escanaba has been indefinitely idled.