The above table includes bunker + low sulfur surcharge.
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The above table includes bunker + low sulfur surcharge.
Courage Marine Group will not be selling a 2011-built Supramax bulk carrier, Zorina, as planned, it said on Monday (5 June).
This follows from an earlier announcement made on 2 May, that the sale could be cancelled in order for the company to remain listed in Hong Kong. Had the transaction gone through, the company would not have a sufficient level of operations or assets of sufficient value to remain listed on the Hong Kong Stock Exchange (HKSE).
The company has a primary listing in Hong Kong and a secondary one in Singapore.
On 8 February, Courage Marine entered into a memorandum of agreement (MoA) to sell Zorina to Universal Ship Investment Corp, an investment-holding company incorporated in Panama, for a consideration of USD7.35 million.
The company had expected to yield net proceeds of about USD7.166 million, less a 2.5% sales commission payable to the broker. This works out to an accounting loss of USD114,000 for the financial year (FY) ended 31 December 2017, against a book value of approximately USD7.28 million as at 31 December 2016.
According to the MoA, the sale must be completed within 90 days after the seller deposits 10% of the consideration, with shareholders’ approval and in compliance with listing rules. In Monday’s announcement, Courage Marine said that the MoA has lapsed as this period is over and “the parties to the MoA could not reach any further agreements”.
Neither party will have any claim against the other for costs, damages, compensation or otherwise, it said.
The 57,000 dwt Zorina is one of the two vessels remaining in Courage Marine’s fleet, the other being Heroic, also a Supramax bulk carrier. According to its FY 2016 annual report, the company recorded a USD10.763 million impairment loss for both vessels, USD20.651 million in FY 2015, and their carrying value was USD14.378 million at the end of the period.
Poor demand for its vessels has led Courage Marine to massively downsize its fleet in recent years, selling or scrapping all its Capesize and Panamax bulk carriers. In FY2015, the company sold Cape Pioneer and Courage, recording a USD5.335 million accounting loss.
The group has also been actively pursuing business opportunities outside of vessel chartering as a buffer against the poor dry bulk freight market. In March 2016 it acquired businesses principally engaged in the provision of logistics, custom clearance, and auxiliary services as well as import and export of goods.
Last month, Courage Marine proposed to change the company name from “Courage Marine Group Limited” to “Courage Investment Group Limited,” to “better reflect the current status of the diversified business scope of the group and its direction of future development”.
Courage Marine describes its principal activities as comprising of marine transportation services, property holding and investment, merchandise trading and investment holding.
The change is subject to shareholders’ vote and approval from the Registrar of Companies in Bermuda, where the company is incorporated.
On 5 June, Egypt, Saudi Arabia, Bahrain, the United Arab Emirates, and Yemen cut all ties with Qatar, alleging that Qatar supported terrorism and extremism. Given that Qatar is the world’s largest LNG exporter – producing around a third of the world’s supplies last year – the political impasse could impact trade routes, to the benefit of spot rates.
According to Stifel analyst Ben Nolan, “Egypt imported 4.6 million tonnes of LNG from Qatar in 2016. Saudi Arabia and Bahrain do not currently import LNG from Qatar, but Bahrain had planned for initial import deals beginning in August 2018, with Saudi Arabia considering Qatar-source LNG cargoes. Furthermore,” continued Nolan, “UEA receives most of its Qatari LNG from pipelines, totalling 1.6 million tonnes. Collectively 8 million tonnes of LNG moved from Qatar within the region in 2016.”
Nolan said in a client note that the two most likely replacement sources for Qatari LNG would be Australia and the United States. He estimated that if 8 million tonnes/year was replaced by US cargoes, it would lead to demand for an additional 8-11 LNG carriers; if Australia was the replacement source, it would create demand for an additional 6-8 LNG carriers.
Furthermore, he noted that if Qatari LNG had to be sold outside of the Middle East, it would most likely be sold in China or elsewhere in the Far East, which he estimated would create demand for another 8-11 LNG carriers. “Ultimately, the diplomatic breakdown within the Middle East could potentially lead to an incremental higher need for around 20 LNG vessels in short order,” said Nolan.
Under a scenario in which the United States and Australia replace Qatari gas in the Middle East and Qatari gas diverts to Asia, Nolan believes current LNG carrier spot rates of around USD37,000/day “could potentially double, as effectively the entire balance of oversupplied vessels would be immediately absorbed and potentially drive rates to levels not experienced since 2014”.
JP Morgan analyst Noah Parquette pointed to another possible trade impact that could benefit rates. “The usage of the Suez Canal is the key,” he explained in a client note. If Egypt blocks Qatari LNG from transiting the Suez Canal, “Qatari exports to Europe would have to go around the Cape of Good Hope,” said Parquette. According to JP Morgan data, Qatar shipped an average of 1.4 tonnes/month of LNG to European buyers in January 2016–March 2017.
An increase in voyage length decreases effective vessel capacity, a positive for rates. According to tracking data from the Maritime Intelligence Network, recent Qatari LNG exports to Europe have been shipped to the United Kingdom, Italy, the Netherlands, and France. According to Veson Nautical distance data, it is 6,134 n miles between Ras Laffan, Qatar and Milford Haven, UK via the Suez Canal, but 77% longer – 10,851 n miles – via the Cape of Good Hope.
There will be another GRI on 1/15/17
There will be no mitigation on rates until further notice
For the upcoming Lunar New Year a lot of carriers are having space issues so please make your bookings immediately.
After Hanjin crisis we have made new contract agreements with various carriers such as
– MSC (services are strong from HCM – NY)
– Evergreen (services are strong from Qingdao & Busan– NY)
– K-line (services are strong from JKT & QDO – NY)
The Federal Maritime Commission is aware that Hanjin Shipping has advised its customers that the company’s application to engage in a voluntary restructuring process was denied by its creditors. The Commission is also aware that Hanjin Shipping has disclosed it has filed for court receivership and that these two actions combined have caused uncertainty among the American shipping community about cargo in transit with Hanjin Shipping.
For U.S.-based shippers and cargo owners trying to determine what options they have, the Commission shares this initial guidance:
The Commission will issue further updates and guidance as circumstances and developments warrant.
The Federal Maritime Commission is responsible for regulating the Nation’s international ocean transportation for the benefit of exporters, importers, and the American consumer. The Commission’s mission is to foster a fair, efficient, and reliable international ocean transportation system while protecting the public from unfair and deceptive practices.
But even as the East Coast ports are gaining ground, the ports of Los Angeles and Long Beach still topped the report’s first-ever ‘Ports and Logistics Index,’ due to infrastructure that is well-suited to handle the largest cargo container ships, their proximity to Asian export markets, a strong local economy and a deep industrial real estate market, CBRE says.
New York and New Jersey, Seattle/Tacoma Alliance and Oakland round out the top five ports on the Index, which ranks the top 15 North American ports based port infrastructure capabilities and the strength of the local industrial real estate market.
”Although the location needs of supply chain users are somewhat fixed given existing distribution centers and customer locations, these networks are always evolving and adjusting to meet increasingly complex inventory requirements,” said David Egan, head of industrial research in the Americas for CBRE.
”As ports across North America continue to address operational efficiencies caused by greater cargo volumes, labor disputes and a shortage of workers, supply chain users are exploring diversification strategies that move some portion of inbound cargo from the congested West Coast ports to East and Gulf Coast ports.”
When it comes to port infrastructure alone—which measured total twenty-foot equivalent unit (TEU) volume, long-term growth in annual TEU volume and year-over-year growth in TEU volume—Los Angeles, New York and New Jersey and Long Beach took the top spots, with Savannah and Virginia (Norfolk) placing fourth and fifth, respectively.
With respect to the real estate ranking component—which was weighted less heavily in the overall rankings than port infrastructure—the characteristics measured included a market’s total size, availability of existing industrial space, demand activity, historical and forecast construction rates, rent growth and each market’s position in its own cycle.
The markets with healthy amounts of existing and planned space for their size, and which have experienced growth during the current recovery cycle but have not yet reached their peaks, rose to the top of the list. Los Angeles and Long Beach were the top-ranked markets in this component, with Houston, Oakland and Seattle/Tacoma rounding out the top five, according to CBRE.
Global Partner Logistics, Inc
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