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Articles from 2016 In August

Teekay inks $4m maritime broadband upgrade with NSSLGlobal

Teekay inks $4m maritime broadband upgrade with NSSLGlobal

The upgrade, to be rolled out across a total of 125 conventional tankers and LNG carriers, will double bandwidth speeds for both Teekay’s on board crew and operational network. It will also enable Teekay, one of the world’s leading marine energy transportation, storage and production companies, to more “confidently” implement additional fleet-wide applications, NSSLGlobal says.

NSSLGlobal’s VSAT [email protected] service is a maritime broadband Very Small Aperture Terminal (VSAT)  service for commercial vessels combining extensive Ku- and C-Band coverage boasting speeds among the best in the industry. For the tech savvy, the service comprises six global teleports supporting 24 satellite beams and two Network Operation Centres to achieve ‘always-on' connectivity.

Teekay Corporation provides a diverse range of marine services to the world’s leading oil and gas companies through Teekay LNG Partners and Teekay Offshore Partners. In addition, the group has a controlling ownership interest in Teekay Tankers Ltd and directly owns a fleet of vessels.

The combined Teekay entities manage and operate consolidated assets of approximately $13bn, comprised of approximately 210 liquefied gas, offshore, and conventional tanker assets from offices in 15 countries and with around 7,700 seagoing and shore-based employees.

The breadth of its global operations makes broadband services in the new smart ship era increasingly import, Teekay contracts specialist Deborah Sloan says.

“With our contract coming up for renewal, both NSSLGlobal and Teekay have worked hard to provide our vessels even greater flexibility, stability, and availability of communication services,” she said.

NSSLGlobal is an independent service provider of satellite communications and IT support, delivering high-quality voice and data services to global clients on land, in the air and at sea regardless of location or terrain.

In March 2016, NSSLGlobal acquired the majority shareholding in Marine Electronics Solutions Ltd (trading as UK Electronic Solutions Ltd), a installation, maintenance, supply and communications and navigation products development specialist serving the maritime, government, offshore renewables and oil & gas sectors.

Along with this wholly owned VSAT network, NSSLGlobal also brings together satellite solutions from key market providers such as Inmarsat, Thuraya and Iridium to offer options across C-, L-, Ka- and Ku-Band networks.

“This contract upgrade [with Teekay] is in keeping with NSSLGlobal’s broad policy of fostering long-term, partnering relationships with its customers through high quality service provision and joint developments,” said Priya Patel, NSSLGlobal’s APAC regional sales director.  

Chamber of Commerce & Industry sets up at Abu Dhabi Ports

Chamber of Commerce & Industry sets up at Abu Dhabi Ports

ADCCI has opened a “representative office” at the Khalifa Industrial Zone (Kizad) business centre within the Abu Dhabi Port’s soon-to-be upsized Khalifa Port in Al Taweelah.

“[This] marks yet another step towards a solid value chain that provides convenience and ease of doing business to our clients and investors,” said Kizad ceo Mana Mohammed Saeed Al Mulla in welcoming ADCCI to Kizad.

“In addition to Abu Dhabi Chamber’s representative office, Kizad is now home to [business set-up and solutions provider] Enjazat Services which opened its service desk in July. This allows businesses operating at Khalifa Port and Kizad to complete government-related transactions in one place.”

H.E. Mohamed Helal Al Muhairi, Director General of ADCCI, said the new office would open communication channels between the Chamber and customers.

“The opening of our new office at Kizad comes as part of our continuous efforts, aiming to provide businesses and investors operating in the Emirate of Abu Dhabi with the best services the same way they are offered at our headquarters,” Muhairi said.

“Kizad is well known for its commitment to attracting investors and foreign industrial companies which play a vital role in supporting our government’s plan of growing the sector and its contribution to the GDP.”

The ADCCI has played a role in Abu Dhabi’s economic development for 46 years, organising conferences, activities, events and meetings and match-making the public and private sectors with potential customers, suppliers or investors in the emirate.

Singapore launches new video on navigational safety

Singapore launches new video on navigational safety

The unveiling of the two full length video was announced at the International [email protected] week held in Singapore from 29 August to 2 September.

The safety video was developed following the successful launch of the Safe Passage for the Straits of Malacca & Singapore pamphlet that was jointly developed by the three littoral states – Singapore, Indonesia and Malaysia – and Bimco.

MPA said the video also serves as a reminder to local and international users of the Singapore Straits on the navigational guidelines and best practices to be observed, as well as the importance of adhering to the International Regulations for Preventing Collisions at Sea (COLREGs).

The video will also present useful local information particular to the Singapore Straits. This includes, but is not limited to, collision prevention measures, night signals for vessels crossing the Traffic Separation Scheme in the Singapore Strait, local rules for ships transiting the Straits of Malacca & Singapore, advice on anchoring and weather conditions affecting visibility such as haze and heavy rain.

MPA will be distributing the video to shipping companies free of charge.

Frontline Q2 profit squeezed by weaker tanker market

Frontline Q2 profit squeezed by weaker tanker market

The second quarter profit of $14.3m reported by John Fredriksen’s flagship tanker company reflected the lower rates seen in the tanker market. “In the second quarter the tanker market experienced a downward pressure on rates which has continued into the third quarter,” commented Robert Hvide Macleod ceo of Frontline Management.

Revenues in the second quarter of 2016 were $191.7m up from $103.9m in the same period a year earlier reflecting the merger of Frontline and Frontline 2012.

Looking to the second half of the year Macleod said: “The spot market is currently at a 24 month low, and although we expect the rate environment to improve from current levels, the second half of 2016 will be significantly weaker than the first half of the year.”

As of 30 June this year Frontline had 24 newbuildings on order comprising eight LR2 tankers, eight suezmax and eight VLCCs. However, four of the VLCC’s are on order from STX, which has filed for court receivership. “The company is in discussions with STX and it is unclear whether the four VLCC newbuildings will be delivered,” Frontline said.

The company has secured bank financing of $528m to cover part of its newbuilding programme. “We are also in what we expect to be the final stages of obtaining approval for further bank financing of up to $325m,” said Inger M Klemp, cfo of Frontline Management.

“This new financing will partially finance 20 of our newbuilding contracts at highly attractive terms and we maintain our very low cash breakeven levels.”

The company is not yet arranging financing for the four newbuildings ordered at STX.

CSCL sinks to $125m loss in first half

CSCL sinks to $125m loss in first half

The first half loss was a reversal of fortune from the profit of RMB831.12m in the same period of 2015.

“Due to the downturn of the shipping market, the company’s liner operations had suffered significant losses during January to February prior to the completion of the restructuring,” CSCL said.

Following the merger of China Shipping Group, parent of CSCL, and China Cosco Group to form Coscocs (China Cosco Shipping Corp), CSCL had gone through a business restructuring, moving away from its core container shipping business,

The company had its business focus shifted from container liner operation to integrated financial services consisting of diversified leasing businesses such as vessel leasing, container leasing and non-shipping finance leasing.

It claimed that upon completion of the business restructuring, the container leasing business of the company ranked number two in the world, and its non-shipping finance leasing business would focus on development of health care, education, energy, construciton, industrial equipment and other finance leasing business.

CSCL will also be renamed Cosco Shipping Development Co to reflect its new businesses.

“Given the sluggish recovery in global economic and trading activities, the shipping market has remained in doldrums in 2016, with the imbalance between supply of and demand for shipping capacity persisting. In other words, the recovery of global shipping industry is still faltering,” CSCL commented.

“In the context of weak shipping demand and shipping capacity glut, the container vessel leasing market was in decline, leading to lower freight rates for all types of vessels,” it added.

However, CSCL pointed out that vessel leasing business has in recent years remained in a growth mode in both quantity and scale, making a strategic contribution to the development of the shipping industry.

“At present, there are dozens of financial leasing companies involved in vessel leasing business in China and with the development of the business, China’s vessel leasing industry will be elevated to a higher level of development,” it said.

As at 39 June 2016, the container fleet under the management of CSCL consisted of 115 vessels with capacity totalling 842,000 teu, including 74 self-owned vessels with capacity totalling 582,000 teu.

Live From SMM 2016

Shell Marine to preview new Shell LubeMonitor service

Shell Marine to preview new Shell LubeMonitor service

Shell Marine believes that the revamped service will be simpler, faster and better, through a new software package called Marine Connect, which is designed to enhance data management and reporting functions.

Shell LubeMonitor offers easy to read reports, a complete engine overview, historical data from onboard and from the laboratory and highlights areas for concern or possible optimisation opportunities.

Shell LubeMonitor runs in tandem with the Shell Rapid Lubricants Analysis (RLA) cylinder check, which has been used to take over 50,000 cylinder drain oils samples to date, identifying potential oil or equipment issues before they become critical.

Many shipping companies have made it part of their planned maintenance regime. Shell Marine expects to analyse round 18,000 cylinder drain oil samples in 2016 alone.

Hamburg-based shipowner Oskar Wehr, an early adopter of Shell LubeMonitor has reported reducing oil feed rates by 0.2g/kWh on 25 vessels while remaining in compliance with OEM feed rate recommendations. As a result, it expects to save up to $20,000 per vessel, per year.

Hanjin Shipping to file for receivership in biggest ever boxshipping bankruptcy

Hanjin Shipping to file for receivership in biggest ever boxshipping bankruptcy

Hanjin’s board unanimously voted to file for receivership on Wednesday morning Bloomberg reported quoting a spokesman for the shipping company.

Cash-strapped Hanjin’s credit led rehabilitation scheme is due to expire on 4 September.

On Tuesday Hanjin's main lender Korean Development Bank withdrew its support and Nikkei reported that chairman Lee Dong-Gul likened any further assistance to pouring water into a broken jar, at a press conference. The company had debts of approximately KRW5.6trn ($5bn).

The bankruptcy of Hanjin is the biggest ever in the container shipping sector according analyst Alphaliner, and the world’s seventh largest line with 98 vessels totaling 609,500 teu. The company also operates a fleet of 44 bulkers and tankers.

Hanjin had been trying to renegotiate charter rates for some of its chartered in containerships. The company charters 61 vessels from various international owners including Seaspan, Danaos, Conti Reederei, Ciner, KMarin, Rickmers and Pacific International Lines, Alphaliner said.

Some such as Seaspan had been vocal in saying they would not agree to charter rate cuts.

Hanjin now faces ship arrests and vessels being barred from entering port. Singapore courts list the 1998-built Hanjin Rome as being arrested 28 August and the Hanjin Sooho is reported to have been detained in Shanghai.

Meanwhile Reuters reported on Wednesday that Hanjin vessels had been barred from entering the ports of Xiamen and Xingang in China; Valencia in Spain; Savannah in the US, and Prince Rupert in Canada.

Transocean Winner's fate still undecided

Transocean Winner's fate still undecided

UK Maritime and Coastguard Agency (MCA) officials say the oil rig remains stable and secured to eight anchors in Broad Bay where assessments are on-going. These include underwater surveys by Remotely Operated Vehicle (ROV) and divers.

“Good progress is being made but no decision has been finalised as to where the rig might be taken next,” MCA said in a statement, adding that there is no signs of pollution around the rig.

Divers are working to recover around 40 pieces of debris around the site at Dalmore Bay where the Transocean Winner grounded on 8 August after breaking its tow line, reportedly en-route to Malta for scrapping.

The debris range from laptop size to scaffolding poles with one piece thought to weigh about 90kgs. All pieces, which have been recovered by manual or mechanical means, are being stored temporarily at Carloway.

“The divers are working very hard to make sure that they are picking up all the bits found on site,’” said Colin Mulva, the Secretary of State’s deputy representative for Maritime Salvage and Intervention.

“But there may well be previously undetected debris that may appear following bad weather. A future programme of surveys will be discussed and put in place by Transocean in an effort to ensure the area is clear of debris and safe for members of the public.

A Temporary Exclusion Zone (TEZ) remains in place at Dalmore Bay.

Better coordination urged between Indonesian Maritime Security Agency and Navy

Better coordination urged between Indonesian Maritime Security Agency and Navy

Speaking to journalists after meeting with Bakamla chief, Rear Admiral Ari Soedewo, Wiranto stressed that close cooperation between maritime institutions was needed to respond to challenging issues such as illegal fishing, piracy and hostage-taking cases.

"[Through close synergy], Bakamla could help propel the strength of existing institutions in doing their jobs to secure the country's maritime territories," Wiranto said.

Bakamla, which was established on 13 December 2014 to replace the Maritime Security Coordinating Board, still has many shortcomings, said Wiranto, adding that it currently has only six patrol vessels expected to operate throughout Indonesian's vast maritime territory.

Therefore, Bakamla should coordinate further with the Indonesian Navy since it has more vessels and resources. “The synergy would also help both institutions to overcome overlapping regulations,” he added.

New THHE boss seen taking firm in new direction

New THHE boss seen taking firm in new direction

THHE said that Suhaimi, who has extensive experience in turnaround management, fund-raising and corporate restructuring, will assist in taking the company on a fresh course in the low-for-long crude price environment.

“Suhaimi’s extensive experience in the oil and gas industry and finance and banking will help THHE focus on the right business strategies to shape the company into a robust entity with a balanced portfolio of oil and gas and non-oil and gas businesses,” THHE said in a statement.

A chartered accountant, Suhaimi has been a key member of the THHE leadership team since December 2013.

He has over eight years experience in the oil and gas industry, having been one of the founding directors of Petra Energy, consultant and also the cfo of THHE for the past two years, the company said. 

“He has extensive experience in turnaround management, fund-raising and corporate restructuring supported by over 30 years’ experience in banking, financial management, accounting, strategic planning, corporate finance and M&A business strategy and implementation,” THHE added.

Commenting on his appointment, Suhaimi said that while his appointment came during a period when the company is facing some very challenging times, it is an opportunity to improve it going forward. “As a ceo my priorities are to set THHE on a new path by securing new business opportunities that are not bound by the vacillating crude price environment, and by aggressively pursuing cost optimisation.

My focus will be to give the company a balanced mixture of oil and gas and non-oil and gas businesses,” he added.

In terms of oil and gas projects, Suhaimi said that THHE would be aggressively seeking business opportunities by way of strategic partnerships beyond the shores of Malaysian in the Asean countries and elsewhere to replenish its order book.

“With eight licensed fabricators throughout Malaysia, the competition is intense and in a low crude price environment such as the last two years the competition has become deadly for some. There are far too many fabricators chasing far too few projects," Suhaimi noted.