Demand for Iran’s Crude Oil on the Rise

Iran sold 1.4 million barrels of crude oil a day to importing countries, the highest level over the last three years, according to the International Energy Agency’s (IEA) Oil Market Report.

The country, faced with ever more tighter economic sanctions from the West over its nuclear program, pumped 2.85 million barrels a day last month, the report adds.

The rise in crude oil sales comes amid ongoing talks between the Western powers and Tehran over the sanctions and a final deal on lifting them is expected to be reached soon.

IEA believes that Iran is readying for the lifting of sanctions as it has already undertaken certain steps including storing of crude on ships. According to the country’s Deputy Oil Minister Roknoddin Javadi, cited by Bloomberg, Iran had about 10 million barrels sitting in storage on ships in May.

There is however no data available whether May imports included any of this capacity.

Iran has set its sight on export markets in Asia with additional crude sales seeing that so far its biggest buyers were China and India, IEA report said.

On the other hand, OPEC supply edged up 50 kb/d in May to 31.33 mb/d, the highest rate since August 2012.

Saudi Arabia, Iraq and the United Arab Emirates pumped at record monthly rates to keep output more than 1 mb/d above OPEC’s official supply target for a third month running. Oil ministers agreed to maintain that target at their 5 June meeting.

“The estimate of global demand growth has been revised up to 1.7 mb/d for the first quarter of 2015 and 1.4 mb/d for all of 2015. Momentum is expected to ease somewhat the current quarter, assuming a return to normal weather conditions and given the recent partial recovery in oil prices,” IEA said.

Tanker Owners Warned to Act Quickly on ECDIS Compliance

Over 4,000 tankers of 3,000 gross tonnes or more, representing 46% of the global 3,000+ gt tanker fleet, are not yet using ENCs (Electronic Nautical Charts) on ECDIS, which will be mandatory as of July 1, when SOLAS regulations on the mandatory carriage of ECDIS comes into force, data from the United Kingdom Hydrographic Office (UKHO) shows.

Of the 8,750+ tankers in the global fleet that are required to comply with the new regulations,  54% are now using ENCs.

UKHO says that progress has been made in recent months, with the global ‘ECDIS readiness’ figure having risen from 42% in September 2014 to the current figure of 54%.

The UKHO data also reveals a number of interesting disparities in the adoption of ECDIS between different elements of the global tanker fleet.

83% of LNG tankers are currently using an ENC service, compared to 70% of crude oil tankers and 36% of product tankers. All three categories have shown a substantial improvement in ECDIS readiness since September 2014.

”Tanker owners and operators that have not yet planned for the adoption of ECDIS should address this immediately in order to make the transition in a safe, timely manner and avoid the risks of non-compliance,” Thomas Mellor, Head of OEM Technical Support and Digital Standards, UKHO, said.

”From an operational, commercial and reputational perspective, the consequences of failing to comply with the ECDIS regulations – and therefore the SOLAS Convention – can be severe.”

Flooding of Panama Canal’s New Locks Kicks Off

The Panama Canal has taken another important step toward the completion of the Expansion Program as it begins to fill the lower chamber of its new Atlantic locks.

The filling started on Thursday and marks the start of a deliberate and methodical phase of operational tests and quality control that will, eventually, prepare the Canal to accommodate larger maritime vessels and new segments.

“This event highlights the magnitude of what we have been working on for the past seven years,”said Panama Canal Administrator/CEO Jorge L. Quijano. “Filling the locks with water is the culmination of arduous years of labor and the realization that we are within arm’s reach of the completion of one of the most impressive infrastructure projects of our time.”

During an initial phase of filling, which will take approximately five days, the Canal Authority will gradually raise the water level within the lower chambers of the new locks, pumping in approximately 50 thousand cubic meters of water per hour from Gatun Lake. This will allow for the testing of the first gates.

The same process will then fill the rest of the Atlantic sections of locks, reaching a water level of 27 meters above sea level. Tests and inspections are expected to take approximately four months.

Among their features, each lock complex includes rolling gates and nine water-saving basins with a filling and emptying side system.

“With the addition of these water-savings basins,” said Quijano, “we will recycle nearly 60 percent of the water used in every lockage, using the world’s most advanced systems and enhancing the Canal’s reliability. With this new phase, expansion nears closer and closer to completion.”

As of the end of May, the overall Expansion Program of the Panama Canal stood at 89.8 percent complete, according to the Panama Canal Authority (ACP).

USD 1.5 Billion Tema Port Upgrade Project Gets the All-Clear

Meridian Port Services, a joint venture between APM Terminals, Bolloré Africa Logistics, and the Ghana Ports and Harbour Authority, has formally signed an agreement to invest USD 1.5 billion in a new deep-water 3.5 million TEU port and logistics hub in Tema, Ghana.

Meridian Port Services will build four deep-water berths, a new breakwater and an access channel able to accommodate the world’s largest container ships.

The new project consists of both a new greenfield port outside the present facility and a needed upgrade of the adjacent road network.

”We are excited about how this port will contribute to Ghana’s future economy and emphasize APM Terminals’ strong commitment to Africa’s growth and development,” said APM Terminals CEO Kim Fejfer. 

”Increased access to global markets is a key component of Africa’s ongoing economic growth, and the new, world-class port development which begins here today will help to put Ghana, and all of West Africa at the forefront of African global trade.” 

An initial Memorandum of Understanding for the expansion plans was signed by MPS and the GPHA in November 2014.

During the past five months, MPS and the Ghanaian government representatives completed contractual details, and finalized preparations for the project’s required design and engineering studies. The joint venture share is comprised of APM Terminals 35%; Bolloré 35%; and Ghana Ports & Harbours Authority 30%.

”This massive investment highlights the confidence of investors into the country. It is a sign that Ghana is moving in the right direction and the journey will not end there. Expanding the port using superior infrastructure and modern, advanced technology will allow Ghanaian companies to compete for business in the most cost effective way,” said Fejfer.

Container throughput at MPS was 651,000 TEUs in 2014, and the existing container facility – operated by APM Terminals in partnership with Bollore since 2004 – is close to maximum utilization.

Dredging at Suez Canal Enters Final Stretch

Over 216 million cubic meters of water-saturated sand has been removed so far as part of the Suez Canal Development Project, said Head of the Suez Canal Authority Mohab Mamish.

This represents about 84 percent of a total of 250 million cubic meters that should be dredged as part of the project, Mamish added.

Thirty-eight dredgers are working on the project, said Wagdi Zaki, the executive director supervising the dredging process.

The scope of works includes the widening and deepening of the Suez Canal over a length of 25 km and up to a depth of 24m.

The expansion project will pave the way for a transit of ships of up to 20 meters in draft, thus increasing the revenue of the canal to up to USD 17 billion a year.

LA Teams Up with Auckland and Guangzhou

The Port of Los Angeles has signed a memorandum of understanding with the Ports of Auckland, New Zealand, and Guangzhou, China, at a Tripartite Ports Summit sponsored by Los Angeles Mayor Eric Garcetti and the City of Los Angeles.

The document establishes the Tripartite Ports Alliance, which represents a new level of cooperation between the three port authorities that had initially committed to working more closely together in November 2014.

The newly formed alliance provides a platform for growing trilateral cooperation to foster trade, innovation and investment opportunities between the public and private sectors of the three regions.

Objectives within the memorandum of understanding include sharing of best practices and expertise; strengthened communication and collaboration on investments, technologies and environmental policies; and working together to enhance capabilities of each port in order to boost their respective regional economies.

The two-day Tripartite Summit that opened on Thursday in Los Angeles is focused on business-to-business matchmaking for key sectors, including transportation, infrastructure development and design, retail and consumer products, biomedical technology, among other sectors.

Mayor Chen Jianhua of Guangzhou and Mayor Len Brown of Auckland have brought leading high-level government and business delegations to the event. The summit is the first of three to be held under the Alliance.

“The Port of Los Angeles looks forward to collaborating with the ports of Auckland and Guangzhou on a series of initiatives, including promoting commercial and business opportunities as well as sharing innovative best practices,” said Ambassador Vilma Martinez, Los Angeles Harbor Commission President.

Zeebrugge Handles One Millionth Motor Vehicle in 2015

One million new motor vehicles have passed through the port of Zeebrugge this year, positioning this Belgian automotive hub to match or possibly surpass last year’s number of 2.2 million vehicles handled in a year.

The growing traffic in the automotive sector has prompted the port authority to make further investments, in hopes of regaining the title of
the largest automotive hub in the world.

The port authority has decided to build extra infrastructure in the Southern Canal Dock in the inner port, also planning to deploy more terrains in the inner port, specifically for the automotive sector.

Zeebrugge’s Toyota Motor Europe terminal received the port’s milestone one millionth vehicle .

In 2015 the port has managed to attract new flows of vehicles. International Car Operators Zeebrugge attracted 110,000 Peugeots from France for the British market and 30,000 Honda’s from Mexico for the European market.

Diana Takes a Hit on Charter Extension

Athens-based Diana Shipping has, through a separate wholly-owned subsidiary, agreed to extend the present time charter contract with Cargill International S.A., Geneva, for one of its Panamax dry bulk vessels, the m/v Leto.

The charter extension is for a period of about fifteen to eighteen months.

The gross charter rate is USD 7,100 per day, and is expected to commence on June 19, 2015.

This employment extension is anticipated to generate approximately USD 3.1 million of gross revenue for the minimum scheduled period of the time charter.

Diana initially chartered out Leto to Cargill back in July 2014, at a gross charter rate of USD 11,350 per day.

The Leto is a 81,297 dwt Panamax dry bulk vessel built in 2010.

Creditors Okay Pan Ocean’s Rehabilitation Plan

Pan Ocean’s rehabilitation plan has been approved by the Seoul Central District Court, following the agreement of more than two thirds of unsecured claims creditors (87.0%) and more than half of shareholders (61.6%), the bulker owner said in a stock exchange filing.

The company submitted the revised rehabilitation plan to the court on 21st April 2015, and submitted the revised rehabilitation plan (amendment) on 5th June 2015.

The revised rehabilitation scheme will see the creditors recover 83% of the debt under a takeover deal with Harim Group & JKL Consortium.

The deal provides for Pan Ocean’s recapitalization through sale of equity, thus covering the company’s accumulated debt.

Harim submitted USD 9.7 billion for the acquisition which is expected to be wrapped up next month.

South Korea-based bulk carrier, formerly STX Pan Ocean, entered court receivership in June last year, for the second time in two decades, after its parent company STX Group failed to sell the unit due to an ongoing downturn in the industry.

World Maritime News Staff

APM Terminals Identifies Top 5 Challenges for Container Port Industry

APM Terminal’s Maasvlakte II Terminal

The five biggest challenges the container port industry is facing are better safety performance, greater operational complexity as a result of much bigger ships, managing congestion risk, staying profitable though shipping line economic cycles, and doing more with less space, Dutch terminal operator APM Terminals said at this year’s TOC Europe Conference and Exhibition held in Rotterdam.

As part of its promotional campaign during the 40th edition of TOC Europe, APM Terminals hosted a study tour of its brand new Maasvlakte II facility and discussed port industry challenges and responses, as well as shared its vision for how the industry must raise its game to meet these new demands.

Delegates attending TOC Europe had a chance to study the new terminal first-hand in a port tour hosted by APM Terminals on Monday 8 June.

On the morning of Tuesday 9 June, Frank Tazelaar, Managing Director of APM Terminals MVII, explored the terminal’s operating and design concept in a keynote speech at the TOC Europe Container Supply Chain conference, joining major cargo owners, carriers and other supply chain members to discuss today’s most pressing industry issues under the headline conference theme ‘‘Shipping’s seismic shift: Dealing with the supply chain fallout.”

Alex Duca, Head of Design and Automation for APM Terminals, will also speak in the TECH TOC conference, where he will discuss the company’s vision of the new ‘eco-system’ of handling equipment and technology needed by the terminal industry to simultaneously improve safety, operational productivity and return on asset investment.

”APM Terminals is at the forefront of innovation and investment in international container terminal operations and we are delighted that the company has chosen TOC Europe 2015, our 40th edition, as the platform to share its latest developments and future vision,” said Paul Holloway, Director, TOC Events.

InterManager to Look into Minimum Manning Levels

InterManager, the international trade association of ship managers, has set its sights on examining two key areas which could have significant benefits for the shipping industry.

First in its list of priorities is an investigation of minimum manning levels for different types of vessels trading on different trade routes and carrying different cargo types. The aim is to determine whether and how these need to be reviewed, better understood for their implications to safety and efficiency and then discussed at flag state level to take into account required rest hours as set under the Maritime Labour Convention (MLC), the association said.

The rules currently in place stipulate the minimum number of personnel needed to move a ship safely from one port to another.

“InterManager is concerned, however, that these rules were not just meant to set a crew complement number but were intended to also serve as a mechanism to improve overall operational status. Given today’s operating realities, this may not actually be what is happening,” Intermanager said.

InterManager’s Executive Committee agreed to engage with industry stakeholders to consider how best to ensure sustainable and safe manning levels, taking into account the current operating and legislative environment, onboard administrative burdens and fatigue issues.

Gerardo Borromeo, InterManager President, said: “For example, a VLCC calling at seven ports a year may have a minimum manning level of 18 but a smaller chemical tanker, calling at over 100 ports in the same period may be required to operate with a much lower crew complement of say 12. This has concerning implications when you consider the number of ports such a vessel may be visiting in a very short period of time.”

“We want flag states to look at each vessel type, the cargo it is carrying and the voyages it is on and to set up and agree on legislation to ensure there are always sufficient people on board to operate that vessel safely while catering for the necessary rest hours. We, of course, need to be realistic in approaching this issue as it involves not only safety and efficiency, but economics as well. At the end of the day, InterManager is looking to drive sustainable solutions that benefit the entire industry and the general public.”

A second area that InterManager intends to examine is the issue of “the paperless ship” and work to draw up guidelines aimed at reducing the amount of paperwork officers and their crew have to undertake while at sea.

According to Borromeo, the burden of administrative tasks falling on seafarers in today’s shipping industry is significant.

“Industry surveys have indicated that the volume of red tape is one of the factor’s adversely affecting recruitment. InterManager aims to improve this situation not just for today’s seafarers but also for tomorrow’s,” he added.

These new projects follow confirmation this week that InterManager has achieved its pre-set aim of delivering a comparable set of operational KPIs to the shipping industry as a whole by passing over ownership of the scheme to BIMCO.

OBP: Pirate Boarding in Southeast Asia Successful in 90 Pct of Cases

More than 90% of the reported attacks in Southeast Asia resulted in pirates successfully boarding target vessels, according to the latest analysis of pirate attacks in Southeast Asia carried out by Oceans Beyond Piracy (OBP).

The OBP’s State of Maritime Piracy Report, now in its fifth edition, analyzes the impacts of this crime during 2014 in the Western Indian Ocean, the Gulf of Guinea and, for the first time, in Southeast Asia.

At least 5,000 seafarers were attacked in Southeast Asia, the Gulf of Guinea, and Western Indian Ocean in 2014, the report said.

The report further shows that 800 seafarers were involved in incidents in South East Asia where violence or the threat of violence was specifically documented. Nearly 3,600 seafarers were on board vessels boarded by pirates in SE Asia, the study shows.

In the Gulf of Guinea, the number of reported attacks remained within historic patterns. However, the region faces a variety of challenges related to chronic under-reporting of incidents and an absence of prosecutions.

“We have observed that up to 70% of piracy-related incidents in the Gulf of Guinea are never reported, so we currently lack a complete understanding of the problem,” says Pottengal Mukundan, Director of the International Maritime Bureau. “This also makes it difficult to assess the extent of the threats seafarers face in this region.”

At least 5,000 seafarers attacked in Southeast Asia, the Gulf of Guinea, and Western Indian Ocean in 2014

Total economic cost of piracy in the region was estimated at USD 983 million for 2014.

In the Western Indian Ocean, OBP found that while naval mandates, recommended industry self-protection practices and the size of the High Risk Area remain unchanged, the observed commitment of naval assets and use of vessel protection measures such as increased speed and rerouting by merchant vessels continued to decrease, resulting in the total economic cost dropping by 28% in 2014. Total economic cost for 2014 is estimated at USD 2.3 billion.

Alarmingly, the perceived reduction in the piracy threat has also resulted in more foreign fishing vessels returning to areas close to the coast of Somalia, OBP said.

Alan Cole, Head of UNODC’s Global Maritime Crime Programme notes, “These provocations are similar to those that triggered piracy off the coast of Somalia in the first place. We are already seeing an upturn in regional piracy incidents since the beginning of the year.”

Finally, the report recognizes that seafarers across the globe are the primary victims of piracy and armed robbery at sea. A chilling example of this are the twenty-six high-risk hostages from the Naham 3 who remain in pirate captivity in Somalia today, more than three years after the initial hijacking of their ship.

“The evidence shows that piracy continues to be a world-wide threat to seafarers. There are specific contexts that distinguish each region, but there is a common lesson in the need to address piracy through cooperation, vigilance, and sustained effort by all actors across the maritime sector,”said Admiral Sir James Burnell-Nugent.

The Report will be officially launched today at the Army and Navy Club (the Rag), London, where a panel of experts will address key issues and answer questions.

Image: EU CMR

Inexperience and Hectic Response Led to Bulker Grounding off Canada

Lack of experience operating in ice-covered waters and uncoordinated emergency response led to flooding and grounding of bulk carrier John I off Newfoundland and Labrador on March 14 last year, the Transportation Safety Board of Canada (TSB) said in its investigation report.

The John I entered ice-covered waters off the southwest coast of Newfoundland on its way to Montreal, Quebec, from Las Palmas, Spain.

After the engine cooling water temperature began to rise, the crew opened the sea water strainer and found it was plugged. As the crew began removing ice and slush from the strainer, water began to overflow from the open strainer box. When the crew attempted to close the leaking sea chest valve to stop the flow of water, its operating mechanism failed. Sea water began to enter the vessel in an uncontrolled manner, overflowing into the engine room. The master then ordered the vessel to be blacked out, causing it to drift. As the vessel drifted towards the shore, commercial towing assistance was requested, but delayed due to the weather.

Upon its arrival on scene, the Canadian Coast Guard (CCG) vessel Earl Grey offered to tow the John I away from the shore. Further delays were encountered while the John I’s master conferred with the vessel’s managing company, the CCG and the Joint Rescue Coordination Centre (JRCC).

When the master finally accepted the tow, the first attempt to establish a tow line failed, and the vessel’s proximity to the shoals did not allow for completion of a second attempt. The John I then ran aground on the shoals. The 23 crew members were evacuated by helicopter. The vessel’s hull sustained minor damage.

The investigation found that warmed sea water from the engine cooling system was being partially discharged overboard and partially returned to the main sea water pump suction, rather than being recirculated to the low sea chest to prevent ice buildup. The strainer became plugged with ice and slush. The sea chest valve was prevented from fully closing, likely due to ice buildup, and the valve operating mechanism failed due to overstress when the crew forcibly attempted to close it, which led to the flooding.

The JRCC did not have the authority to direct the master of the John I to accept the tow.

Neither the Department of Fisheries and Oceans Environmental Response nor Transport Canada, both of which had the authority to direct the vessel to accept the tow, were actively involved at an earlier stage when it was clear that the time to take action was running out and the environmental risks posed by the vessel going aground were increasing.

The delay in starting the towing operation was caused both by the master’s reluctance to accept the tow and by the way that authorities managed the situation, according to the report.

Tarahan Coal Port Ready for Bigger Bulkers

A new jetty has been inaugurated today at Tarahan Port in Bandar Lampung, Indonesia, boosting the coal port’s capacity with 25 million tons per year.

The upgrade has rendered the port capable of accommodating ships of up to 210,000 DWT (Capesize), making way for the port to take up the lead in Indonesia in terms of capacity.

The inauguration was signed by Minister of Transportation Ignatius Jonan at Tarahan coal terminal, operated by state-owned mining company PT Bukit Asam (Persero) Tbk.

With the new 210,000 DWT jetty, currently Tarahan port has 3 jetties, one with 80,000 DWT (Panamax) and one with 10,000 DWT (barge) berthing capacity, that can be operated simultaneously.

With the new capacity, a ship with 210,000 DWT can be fully loaded within 35 hours or less than 3 days.

Additional berthing capacity in Tarahan will help boost PTBA’s competitive advantage in domestic market and help attract major producers from Australia as now the port can handle large-capacity vessels to improve efficiency in coal transportation costs.

“This can also help push forward the national shipping industry and serve domestic coal needs,” the ministry as quoted by Antara news agency.

Drewry: Thriving Products Market Attracts Chemical Tanker Swingers

Chemical shipping faces another tough year, but prospects are improving thanks to the strength of the product tanker market which is attracting a growing number of swing ships out of chemicals into products, according to the latest edition of the Chemical Forecaster, published by global shipping consultancy Drewry.

Drewry estimates that seaborne trade in chemicals (including vegetable oils and fats) was stagnant in 2014 and is forecast to grow at less than 2.5% pa over the next few years. However, this year the fleet is expected to grow by as much as 9% to reach 101 million dwt by the end of 2015, placing at risk operator’s vessel utilisation and earnings. But the relative strength of the product tanker sector is likely to attract more swing ships out of chemicals shipping, so checking effective fleet growth.

”Given the strength of the product sector, we expect more ships to enter this segment than chemicals,” said Drewry’s Lead Analyst for Chemical Shipping Hu Qing.

”So the growth in the fleet actually trading in chemicals and related products is expected to be lower at just under 7% this year. This is below our earlier estimates and hence we are more optimistic about the short-term market prospects.”

Drewry estimates that less than 40% of the total chemical capable shipping fleet is presently trading in chemicals and related products. And the proportion is expected to remain below this threshold over the next few years. Only three years ago over 46% of the fleet was trading in chemicals, representing a notable decline.

”The gap between tonnage carrying chemicals and tonnage carrying petroleum products is widening because of the number of larger ships entering the trades. The trend will continue over the next few years,” said Qing.

In some cases, the decision to move out of chemicals is an enforced one, as comparatively large numbers of ships continue to lose IMO Certificates of Fitness to carry chemicals and related products. In the first four months of 2015 alone, Drewry recorded 60 tankers either losing or not renewing IMO Certificates of Fitness, compared to just 11 vessels that have been moved from the feet through demolition, conversion and total loss.

Looking further ahead, other factors have the potential to curtail vessel supply growth, including shipyards failing to meet scheduled delivery dates and one particular case of bankruptcy.

”As such, slippage and outright cancellations through bankruptcy point to lower fleet growth than the headline numbers suggest,” said Qing.

”As a result, fleet growth is expected moderate over the medium term which bodes well for chemical shipping operators.”

Chinese Boxship Sinks, Eight Crew Rescued

A Chinese-flagged container ship sank early this morning while underway off Guangzhou port taking all of its eight crew members with it.

Fortunately, the crew was plucked out of the water in time by patrol boats, dispatched by Guangzhou Maritime Safety Administration to the scene, Xinhua news agency reports.

The ship, identified as Xin Hong 328, was underway toward Nansha port’s Dongfa pier from Hong Kong when it started to sink. It was loaded with 72 containers, Xinhua said.

According to the Maritime Safety Administration, salvage operation of the containers that fell into the water is underway.

A traffic control has been imposed in the area as the containers pose navigational hazard.

The cause of the sinking has not been disclosed.

World Maritime News Staff

MSC Plans Asia-Europe Services Revamp to Improve Reliability

Mediterranean Shipping Company (MSC), world’s second largest container line and Maersk Line’s partner in the 2M vessel sharing alliance, plans to optimise all of its Asia-Europe services in an effort to improve its schedule reliability.

Over the next several months the Swiss carrier plans to progressively implement changes to port combinations, vessel rotations and capacity deployment within its Asia-Europe services.

MSC launched the new Asia-Europe network in January 2015. According to data gathered by MSC, the Asia – North Europe trade was reported to be performing at 92.1% reliability as of May 2015. The optimisation is expected to sustain and improve on this figure.

The company also plans to reduce the average vessel size on the Condor service, which operates on the Asia – Europe trade, from 9,500 TEUs to 6,500 TEUs.

The network changes apply equally to MSC’s 2M partners, and the changes are expected to be fully effective by the middle of August.

Revised rotations and full service details, which are subject to regulatory requirements, are currently being finalised.

Svitzer Taking Contaminated Tugs to Singapore

Towage company Svitzer is preparing to ship out two of its tug boats contaminated with potentially deadly asbestos from Newcastle this week.

The two tugs were removed from service in February after one of the Chinese-built vessels was found to contain asbestos.

The Australian crews of The Warrego and The Warrunda first raised the alarm several months ago when they found suspicious white dust on board the Chinese made vessels.

Independent testing detected more than 90 areas of asbestos borne dust on the tugs. Both tugs were given Asbestos Free Certificates in Singapore before entering Australian waters.

The Maritime Union of Australia is calling for federal authorities to stop the two tugs from leaving Newcastle.

MUA Assistant National Secretary Ian Bray said foreign workers should not be exposed to a known killer.

“Given it is illegal to import asbestos into Australia, you really have to question why anyone is allowed to export it,” Mr Bray said.

“The MUA does not think these tugs should be sent anywhere without a guarantee that they will not be worked by any crew until the asbestos has been removed.”

“The tugs are going overseas, we think to be repaired by the same people that wrongfully gave the Asbestos Free Certificates,” MUA Deputy Newcastle Branch Secretary Dennis Outram said.

“It’s negligent to allow these tugs to go back to Singapore where a worker there could contract a killer asbestos-related disease,” he added.

Image: MUA

Safe Bulkers Slides to Red

NYSE-listed dry bulk shipping company Safe Bulkers recorded USD 6 million net loss for the first quarter of 2015, compared to net income of USD 11.2 million during the same period in 2014.

The company’s net revenue for the first quarter of 2015 decreased by 22% to USD 32.1 million, from USD 41.3 million during the same period in 2014.

Safe Bulkers currently has 10 newbuildings on order, with two to be delivered in 2015, four to be delivered in 2016, three to be delivered in 2017 and one to be delivered in 2018.

The remaining capital expenditure requirements to shipyards or sellers for the delivery of these 10 newbuilds, before minor adjustments for shipyards’ costs related to such delayed deliveries, amounted to USD 259.5 million as of March 31, of which USD 77.6 million was scheduled to be paid in 2015, USD 91.7 million in 2016, USD 69.9 million in 2017 and USD 20.3 million in 2018.

As of March 31, 2015, Safe Bulkers had liquidity of USD 430.7 million consisting of USD 90.9 million in cash, USD 40.7 million in restricted cash, USD 95.1 million available under existing revolving credit facilities, USD 16.0 million available under a committed loan facility for one delivered vessel and USD 188.0 million under committed loan facilities for 10 newbuild vessels.

The Board of Directors of the company also declared a quarterly dividend of USD 0.01 per share of the common stock for the first quarter of 2015.

“We have reduced our quarterly dividend to USD 0.01 per common share in line with the present weak charter market conditions, which have now lasted for more than one year. We have a strong balance sheet and lean operations targeting to preserve our liquidity throughout the adverse part of the shipping cycle,” Dr. Loukas Barmparis, President of Safe Bulkers, said.

Baltic Exchange Drops 172,000 DWT Rates Reports

Changes in the capesize fleet profile have led the Baltic Exchange to announce that it will cease panel based reporting of its 172,000 dwt 4 Timecharter Average (172 4TC) data from 31 July, 2015, and instead provide data derived from its assessments of the more commonly traded 180,000 dwt vessels.

The move follows a decline in the number of 172,000 dwt vessels trading and a growing difficulty for the Exchange’s panel of shipbrokers to provide accurate assessments for this vessel type.

Under the new arrangements the 172 4TC rates will initially be derived from a new calculation of a 180 4TC rate at a constant dollar differential.

The differential will be established and published on 31 July 2015 by reference to the average difference between the panellist reported 172 4TC and the 180 5TC for the preceding 12 months.

”The Baltic Exchange has been providing dual assessments based on 180,000 dwt and 172,000 dwt vessels since February 2014 and we have observed a correlation of over 99% between the two contracts,” Baltic Exchange Chief Executive Jeremy Penn said.

”Faster than anticipated scrapping levels of the older 172,000 dwt vessels will soon mean that our shipbroker panellists will be unable to provide robust assessments for this specific vessel size. The Baltic Exchange cannot make panel based assessments on an increasingly rarely traded vessel type, but publishing a derived rate provides the FFA market with a workable solution and robust settlement data.”

According to analysis by SSY Consultancy and Research there are currently 191 vessels (total 32.87m dwt) of between 170,000-174,999 dwt versus 317 vessels (total 57.34m dwt) of between 180,000-185,000 dwt.

No vessel in the 170,000-174,999 dwt range has been built since 2012 whilst 68 vessels in the 180,000 –185,000 dwt range have been built since 2013. A further 113 180,000–185,000 dwt vessels are scheduled to enter the fleet by the end of 2017.