containers

China, Russia Carriers to Ship Gas on Arctic Route

China, Russia Carriers to Ship Gas on Arctic Route 0 0 La Chang

China is breaking into Arctic transport through a joint venture between the country’s biggest ocean carrier, Cosco Shipping Holdings Co., and its Russian counterpart PAO Sovcomflot to move natural gas from Siberia to Western and Asian markets.

The state-owned companies will operate a fleet of a dozen ice-breaking liquefied natural gas tankers from Russia’s massive Yamal LNG project along the northern coast of central Siberia to destinations in Northern Europe, Japan, South Korea and China. China Shipping LNG Investment Co., a Cosco unit, will operate another nine such vessels, according to maritime data provider VesselsValue Ltd.

Maersk Swings to Loss, Warns Trade Tensions Hitting Shipping Demand

Maersk Swings to Loss, Warns Trade Tensions Hitting Shipping Demand 60 60 La Chang

Danish shipping giant A.P. Moeller-Maersk AS swung to a first-quarter loss and warned that rising trade tensions between the U.S. and China could cut container growth by up to a third this year.

Maersk’s warning adds to an increasingly bleak outlook for the container shipping industry, which now expects the tariff-filled trans-Pacific dispute to be a significant drag on earnings. Demand for shipping consumer goods, manufacturing parts and other anchors of global trade is waning at the start of the season when retailers typically stock up for the year-end holidays.

Shipowners Seek to Slow Services to Meet Emissions Limits

Shipowners Seek to Slow Services to Meet Emissions Limits 60 60 La Chang

Looming new environmental regulations are triggering sharp divisions in the shipping industry between vessel operators investing billions of dollars to reduce emissions and others who want to stave off the financial impact by simply slowing down ships.

More than 100 shipowners, including some big Greek and German charter businesses, have signed a letter to the International Maritime Organization, an arm of the United Nations that works as the global marine regulator, calling for slower sailing speeds to cut greenhouse gas emissions.

If adopted, the measure could ripple across international supply chains, with products taking more time to be delivered and cargo owners paying more for transport costs because of the longer sailings.

Macquarie Gets a Foothold in U.S.-Asia Ocean Trade

Macquarie Gets a Foothold in U.S.-Asia Ocean Trade 0 0 La Chang

The Australian investment group’s purchase of a multiyear concession to run the Long Beach Container Terminal in Southern California comes with a guarantee from the seller, Hong Kong-based shipping and ports operator Orient Overseas International Ltd. , that the facility will generate $9 billion in revenue over 20 years.

Macquarie paid $1.78 billion to run LBCT until 2051 under a sale that was triggered by U.S. national security concerns. The site is a major gateway for trans-Pacific container trade crucial to retailers and manufacturers. This place will give Macquarie a kind of bookend for its North American maritime infrastructure portfolio, alongside the Maher Terminals LLC operation at the Port of New York and New Jersey that the group bought in 2016.

Ship Orders Fall to Lowest Level in 15 Years

Ship Orders Fall to Lowest Level in 15 Years La Chang

Ship orders world-wide have shrunk to the lowest level in 15 years. Indeed,  vessel owners are struggling with excess capacity that has kept freight rates well below break-even levels.

According to marine data provider Clarksons PLC report released Friday, there were 3,200 vessels of a combined 81 million gross tons ordered globally in the first quarter, the lowest figure since 2004.

“The global order book has declined to its lowest level since the early stages of the shipbuilding boom,” George Warner of Clarksons Research said.

Crude tankers and bulkers made up around two thirds of all orders a decade ago, but this year the share has dropped to 42% as volatility in commodity markets and changes in global energy consumption have triggered shifts in ocean-going trade.

Shipping Comes to Terms With $50 Billion Clean-Fuel Bill

Shipping Comes to Terms With $50 Billion Clean-Fuel Bill 0 0 La Chang

The biggest change in ship propulsion since the maritime industry moved from coal to heavy oil early in the 20th century will be the introduction of low-sulfur fuels in oceangoing vessels next year to meet new emissions standards .

The new formulation of low-sulfur fuel is supposed to replace bunker, which propels most of the world’s oceangoing vessels.

The emissions mandate taking effect at the start of 2020 cost the industry up to $50 billion and will affect at least 60,000 vessels according to shipping executives’ estimates.

Besides, the shipping world faces a new consensus that customers will have to bear the higher costs across supply chains, as long as carriers are clear and transparent about how much more they have to pay to keep ships moving.