Friday, December 16, 2011

Evergreen mulls 14,000TEU's

Evergreen is talking to shipyards about 14,000 teu ships, which is being denied by the company, brokers report.

Renewed speculation that Evergreen management representatives had approached shipyards about 10 ships of 14,000 teu, with an option for an additional 10, was reported by a leading shipbroker earlier this month.
Evergreen has 20 ships of 8,800 teu on order Samsung Heavy Industries, with another 10 of the same size to be built by Taiwan’s CSBC.

Published : December 13, 2011


Kongsberg-Daewoo rig automation deal

Kongsberg has been awarded a significant offshore automation contract with Daewoo Shipbuilding & Marine Engineering (DSME) in South Korea.

The contract covers deliveries to two semi-submersible drilling rigs (Cat-D), with an option for Kongsberg to deliver products and services for two more semi-submersible drilling rigs.

"This is what we call a 'Full Picture' solution from Kongsberg Maritime, as it includes systems for dynamic positioning, thruster control, bridge navigation, vessel automation, safety, riser management and environmental monitoring. Our strategy is to take on more responsibility in the value chain by offering a full range of Integrated Automated Marine Systems. This contract was won as a direct result of this approach. Close collaboration with the customer and a commitment to understanding the extreme contexts in which our technology is applied are important driving forces behind this award", says Geir Håøy, President Kongsberg Maritime.

Kongsberg Maritime will commence deliveries early next year, including engineering services at the yard in Korea. All key deliveries from KONGSBERG are scheduled for completion by December 2012. Startup, commissioning and trials are scheduled to be completed in Q1 and Q3 2014.

"The competition is strong and we are very pleased to have secured this contract. It is a clear demonstration of our capabilities in this field. I am also very pleased with the hard work performed by our international offshore team", concludes Tor Erik Sørensen, Executive Vice President Kongsberg Maritime.

Published : December 15, 2011


[Equipment] Rolls-Royce nets OSV package

Rolls-Royce, the global power systems company announced on Dec. 14, that it has won a £15 million order to provide the design, integrated power and propulsion systems and deck equipment for two offshore service vessels for ship owner Island Offshore.

The contract includes an option for an additional four vessels.

Per Kristian Furø, Rolls-Royce, General Sales Manager - Offshore said: "We have worked very closely with Island Offshore over the last decade to develop a wide range of advanced and highly efficient platform supply and subsea service vessels. This long standing relationship has resulted in 40 vessels being delivered or under construction."

The latest Rolls-Royce UT 717 CD platform supply vessels ordered by Island Offshore will feature an integrated power and propulsion system incorporating main engines, controllable pitch propellers, bow and stern thrusters, deck machinery and an automation and control system.

The vessels will be built at the STX OSV yard in Brevik, Norway and will be ready for delivery in the latter half of 2013.

In addition to this latest order, Island Offshore has a further three UT vessels under construction to be delivered from the Brevik yard. This includes two highly efficient LNG powered offshore vessels.

Published : December 15, 2011


Thursday, December 15, 2011

World’s first LNG-fuelled tanker

The world's first new LNG-fuelled tanker has been delivered in Rotterdam to Lloyd's Register class, heralding the start of a new era of cleaner shipping for Europe's local waterways.

The delivery of MT Argonon, a 6,100-dwt dual-fuelled chemical tanker, represents a significant milestone for the Deen Shipping subsidiary, Argonon Shipping B.V., in its pursuit of cleaner transport solutions for Europe.

Lloyd’s Register helped the owners and regulators to identify their risks, meet regulatory requirements and overcome the technical challenges for the precedent-setting tanker.

"This has been a great project and it is a significant first," said Piet Mast, Lloyd’s Register's Marine Business Manager for Western Europe. "The nature of inland waterways traffic, which passes through or close to major population centres, makes LNG an attractive way to reduce harmful local emissions. We had to look carefully at the risks and worked closely with the owner and the regulators to ensure that they understood, and were comfortable with, the technical solutions that were developed."

The dual-fuel system is designed to burn an 80/20 mixture of natural gas and diesel, reducing Sox, Nox and particulate-matter emissions, as well as reducing the greenhouse gas emissions from tank to flue. The LNG is stored in a transport tank located on deck, supplied by Cryonorm Projects, based near Amsterdam.

"The inland shipping industry, as far as we know, is the safest and cleanest mode of transport. But, to keep this lead, we have to take a big step forward in environmental performance," said shipowner Gerard Deen. "I think that the dual-fuel principle is a way to reduce the emissions in our sector. Lloyd’s Register was very pragmatic in their approach to finding solutions to convert seagoing regulations into inland shipping rules regarding dual fuel."

Along with Lloyd’s Register, the Netherlands Shipping Inspectorate approved the vessel’s LNG system for operation in the Netherlands and the ship has taken on its first load of LNG bunker fuel. The next step is to secure the regulatory approvals from the Central Commission for Navigating on the Rhine and the UN-ECE ADN Safety Committee, to open the way for navigation beyond the Netherlands.

"The owners are to be congratulated for being pioneers," said Mast. "At Lloyd’s Register, we have been involved with LNG for a long time, so were able to provide support through the plan-approval and construction processes. We now look forward to supporting the ship through many years of ‘clean’ trading."

Argonon has entered service and will start operating with gas this week following some final, main-engine tests. Built by Rotterdam's Shipyard Trico B.V., the tanker is 110 metres in length and propelled by two, dual-fuel Caterpillar DF3512 engines, each providing 1,115 KW.

The ship has the capacity to transit from Rotterdam to Basel and back without bunkering.

"We are currently providing technical and regulatory guidance for 20 confirmed or proposed inland waterway applications that intend to use LNG as fuel," says Bas Joormann, West European Area Inland Waterway Product Manager for Lloyd’s Register. "There is a lot of interest, and for good reason. Inland waterways, like ferries in emission-control areas, are very suitable for LNG. But the regulatory regime is different. We're helping owners and governmental bodies to identify the risks and manage them to at least the level of safety provided by the existing fuel-management and combustion requirements."

Published : December 15, 2011


HMM secures 13,100TEU loan

Hyundai Merchant Marine nets a loan to pay for five mega-containerships on order at Daewoo Shipbuilding & Marine Engineering in South Korea.

DNB Bank is heading the $500m syndicated facility which will cover the 13,100-teu quintet inked in August.

ABN AMRO, Credit Agricole, Korea Finance Corporation and The Korea Development Bank are also involved in the chain, a statement says.

Erik Borgen, DNB’s Head of Asia, said at a signing ceremony at Singapore’s Marina Bay Sands: “We continue to be active in maritime finance throughout the cycle and our involvement in this transaction exemplifies our continued commitment to this space.”

“DNB is pleased to lead this facility and happy to note how successful HMM has been in securing financing on very favourable terms and with highly recognised banks in the shipping sector.

“This development shows that reputable shipowners with good track records can continue to tap the capital markets during times of economic uncertainty.”

HMM is to pay about KRW 734.5bn ($681m) for the newbuildings with delivery to be made by Sep 30 2014.

Published : December 14, 2011


Samjin inks 36K BC sextet

After a four-year hiatus, Compagnie Maritime Belge (CMB) came back to order six ECO-type handysize bulker newbuildings at South Korea’s Samjin Shipbuilding Industries, which is located in Weihai city, Shandong, China.

The NYSE Euronext-listed parent of Belgian operator Bocimar says the contract, which is backed by affiliate Bohandymar, was sealed on “very competitive conditions”.

Four of the 36,000-dwt vessels are due for delivery in 2013 while the remainder are expected a year later in a deal that includes a pair of options for two additional units, which would push the total tally to ten, according to a statement.

CMB says the environmentally-friendly design will help the units consume 30% less fuel than ships built in the previous generation, a feature that will help reduce CO2 emissions.

In addition, the bulkers will be equipped with a ballast water management system and capable of carrying a wide variety of cargoes.

The newbuildings follow a contract for ten 35,000-dwt bulkers that Bocimar placed at the same South Korean-owned shipbuilder back in 2007.

Published : December 15, 2011


Wednesday, December 14, 2011

Low-price continue

Shipbuilders are more likely to contract in low-margin, facing with tougher competition for securing new order in 2012. Also, increase in share prices would be limited due to newbuilding prices of VLCC, bulker, etc., in decline.

Analyst Yum Dong-Eun from HMC Investment Securities of South Korea said, "As global freight cargo keeps declining by Eurozone financial crisis and global economic trouble, it is hard to expect market recovery."

Yum added, "Big3 as well as medium-size builders would focus on securing larger amount of new orders than rather be selective."

Then medium-size yards would directly meet with profit slide by their low-margin new order and shrinking orderbook.

Due to continued new order at a low ebb during H2, Clarkson Newbuilding Price Index recorded the lowest in December at 139p, down by 1p on November.

Clarkson Newbuilding Price Index had soared up to 190p in 2008, then sharply decreased to 136p after global financial crisis, which recovered a bit to 142p in early 2011.

Published : December 14, 2011


LNG Solution for Large Boxship

LNG as marine fuel is already a proven alternative for short sea shipping, but what about the primary engine of global trade - the boxship?

To investigate and develop solutions for large LNG fuelled container vessels classification society Germanischer Lloyd (GL) and IHI Marine United Inc. (IHIMU) signed an agreement for a joint development project (JDP).

GL and IHIMU will be working together on a concept study for a 13,000 TEU container vessel fuelled by LNG.

"IHIMU shares GL's assumption that LNG will be a key technology for addressing the challenges the maritime industry faces in terms of reducing emission to the air and reducing its contribution to global climate change," said Dr Pierre C. Sames, GL Senior Vice President and Head of Strategic Research and Development.

IHIMU first launched the eFuture 13000C container vessel design in 2010. At that time GL reviewed the main hull structure. The new JDP focuses on the LNG fuelling system, consisting of the bunker station, tanks, gas preparation and gas lines.

IHIMU will design the key structures of the system with GL providing design review, hazard identification and upon the successful completion of the project, approval in principle of the design. Assessment of the safety performance of the gas supply system will be the key aspect of GL's contribution to the project.

Published : December 14, 2011


Chinese question valemax

China Shipowners' Association questions the safety of 400,000 dwt valemax vessels.

In its latest statement, CSA claims the vessels could pose an environmental threat. It said: “If there is any leaking of fuel oil, the pollution will be catastrophic.”

Earlier this month, CSA urged Brazilian iron-ore giant Vale to halt construction of its planned fleet of 35 mega-vessels, claiming that “it is not yet certain whether they can withstand various sea conditions”.

The group’s latest comments come after Vale Beijing, operated by STX Pan Ocean, ran into trouble in a Brazilian port.

To date, the valemax vessels have not received permission to enter Chinese ports.


Tuesday, December 13, 2011

Samsung to further dominate

Samsung Heavy Industries of South Korea expects relatively safer stock price during down-trend of overall economic circumstances, due to stable business portfolio and market dominating power, etc.

Analyst Kwag Min-Jung from BS Investment & Securities forecast that Samsung's new orders from offshore sector took about 61% of overall new orders and would increase to 69% next year.

The Geojae-based yard would concentrate more on offshore production facility and with good portfolio and market dominance are expected to lead stable stock price than those of other yards in competition.

Kwag added that Samsung would be able to strengthen market dominating power with its differentiated technological competitiveness in offshore production facility sector, including LNG carrier, drillship, LNG-FPSO, etc.

She said, "Samsung's new order in 2012 is estimated to be $12bn, down by 19.4% on previous year, $4bn from LNG carriers and ultra-large containership and $8bn from offshore sector."

Published : December 13, 2011


Cancellation impact limited

Newbuilding cancellation would have a limited influence on shipbuilding industry this time around.

Even though cancellation is expected to give a bad impact on investment sentiment for shipbuilders, over-weight opinion is still valid in a long term due to its limited spin-off.

South Korea's Daewoo Shipbuilding & Marine Engineering announced on 9 December that it cancelled on two VLCCs and two bulkers, ordered by European owner in June 2008, at a cost of KRW 589.3bn ($510.3m), however, it would take advance payment and gain financial profit.

Market experts explained that there needed no concern on Daewoo's cancellation, which was just a continuation of Lehman shock in 2008 not a by-product of an economic uncertainties in recent days.

Analyst Choi Kwang-Sik from LIG Investment & Securities pointed out that there would be only a small-sized cancellation this time, while 10.4% of worldly newbuildings, ordered during 2006-2008, were cancelled during Lehman crisis. And Korean major six yards had about 7.3% of cancelled vessels at that time.

LIG's Choi forecast, "Daewoo's cancellation gives concerns to additional ones to occur, however, yards' valuation would not be hurt much. In case of Big3, they already secure quite many backlogs and seem to be able to fill up slots."

Added, "It seems inevitable that short-term investment sentiment would be depressed. Watching recovery of S&P market after the first half next year, then make investment or not."

Analyst Lee Kang-Rok from Kyobo Securities also said that Daewoo's current cancellation is a good news as vessels had not started production, there would not be any mix-up in the schedule.

Also said, "Advance payment, about 10% of newbuilding price, would rise net profit for the fourth quarter about KRW 59bn by reflecting as non-operating profit on the book."

He said, "Possibility of additional cancellation is also very low, considering new orders mostly from global major owners with stable financial structure and builders' offshore-plant concentrated schedule this year."

Meanwhile, some say that shrinkage in ship financing by European banks' credit crunch would likely result in massive cancellations. Therefore, market concerns on shipbuilding industry seem to last for a while.

Published : December 13, 2011


Russia, Finland shipbuilding partners

Russia and Finland have agreed on partnership in shipbuilding.

The corresponding memorandum was signed by Russia’s Trade and Industry Minister Viktor Khristenko and Finland’s Minister of the Economy Yuri Hyakyamies.

Russia and Finland will carry out joint projects to build ships and shipping facilities for the Arctic regions.

Published : December 12, 2011


Monday, December 12, 2011

Vinashin sell-off

The Vietnamese government is to part-privatise 27 state-owned companies by 2020, including troubled shipbuilder Vinashin.

Pham Viet Muon, vice chairman of the government office, told reporters that the sell-offs will begin in 2015.

But the state will retain stakes of more than 65% in the companies after the public share sales.

Vinashin ran up huge debts of more than $4bn by diversifying into non-core businesses. Now it is focusing on its core shipbuilding business.

Published : December 12, 2011