Shipping news

China to aid ailing shipbuilders with more subsidies

http://www.hellenicshippingnews.com/News...bb94aaf98e

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IMHO, the author of the article is confusing between shippers and shipbuilders.

The subsidies are given directly to shippers who scape their ships ahead of their retirement for newer and greener ships, the govt is subsidising shippers, not shipbuilders.

Who will these shippers turn to for greener ships, again it will be the more established players, to me, there is no conflict in policy

(12-12-2013, 11:12 PM)Greenrookie Wrote: China to aid ailing shipbuilders with more subsidies

http://www.hellenicshippingnews.com/News...bb94aaf98e

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IMHO, the author of the article is confusing between shippers and shipbuilders.

The subsidies are given directly to shippers who scape their ships ahead of their retirement for newer and greener ships, the govt is subsidising shippers, not shipbuilders.

Who will these shippers turn to for greener ships, again it will be the more established players, to me, there is no conflict in policy

I think the key is in the difference between the current arrangements and the newly proposed ones. Currently, shippers get 1000 rmb per grt subsidy for scrapping eligible vessels and ordering a replacement. The subsidy will be paid only if both conditions are satisfied.

Under the new scheme, half the 1500 rmb subsidy will be paid upon the completion of ship breaking and the other half will be paid when a replacement is ordered. It seems like shipowners can scrap vessels and get half the subsidy without ordering a replacement.

Sharing a news report on shipping...

Indonesia ore export ban could boost shipping costs

[SINGAPORE] Indonesia's plan to ban exports of unrefined nickel and other minerals could drive up shipping costs as Chinese importers seek new supplies from more distant sources such as Australia and New Caledonia.

China typically buys most of its nickel ore from the Southeast nation, which plans to force mining companies from January to process raw metals before shipping them overseas as part of a drive to boost the value of exports. "If there is a shift to other sources that have a greater tonne-mile impact it will be very positive for the market," said Khalid Hashim, managing director of Precious Shipping, one of Thailand's largest dry cargo owners. -Reuters

Source: Business Times Breaking News

Shipping in rough seas till 2016: Maersk boss

Jonathan Kwok
The Straits Times
Thursday, Jan 09, 2014

SINGAPORE- The global economy might be on the mend but the boss of shipping giant Maersk expects the sector's tough times to continue for the next three years. "That's just the situation we'll have to learn to live with," said Mr Nils Andersen, chief executive of AP Moller-Maersk. The Danish conglomerate controls Maersk Line, the world's largest operator of container ships, with 15 per cent of global traffic. "We, at the moment, are rather successful in making a profit but of course it is a difficult environment to operate in if you are a smaller player," he added. Maersk Line last November said third-quarter net profit rose 11 per cent to US$554 million (S$702 million), as cost cuts offset the drop in freight rates. Parent company AP Moller-Maersk lifted its full-year forecast as third- quarter net profit rose 28 per cent to US$1.2 billion. The industry's problem lies squarely with the over-supply of shipping capacity, which in turn depresses freight rates. And with new ships being added to fleets, the problem looks set to stay for the time being. "For the next few years we will have over-capacity. We know the order books for the next three years and the orders are pretty large," said Mr Andersen. "So we believe there will be over-capacity at least till the end of 2016 - maybe longer, depending on how fast people retire the older ships." Demand will grow alongside the global economy but will probably not be able to fully absorb all the new capacity.

"We think the general economy will pick up a bit in 2014, the growth rate will be better," said Mr Andersen. "But it doesn't mean we will return to the good times with high growth rates for container shipping, so we maintain our forecast which is a growth of 4 to 6 per cent for global container shipping volumes for 2014." Mr Andersen was in town recently for the christening of the Mary Maersk, the third in Maersk Line's class of new mega-vessels to call at Singapore's port. These Triple-E ships, the largest in the world, are designed for energy efficiency, economies of scale and environmental friendliness. Each of these vessels can carry 18,000 containers - enough to transport 182 million iPads or 111 million pairs of shoes in a single voyage. Mr Andersen said his company is careful not to put more capacity into the Asia-Europe trade route than it needs. "So when we put in new Triple-E vessels, we take out other, older vessels with higher fuel consumption, higher costs. "The exercise is not to add more capacity but to reduce cost and become more environmentally friendly." Singapore acts as the Asia-Pacific headquarters for several businesses under AP Moller-Maersk, whose other operations include oil drilling and running ports. The conglomerate employs 700 people here and between 120 and 130 of its vessels and rigs are under the Singapore flag. The group has a 30 per cent stake in Malaysia's Port of Tanjung Pelepas, which is Maersk Line's Asian transshipment hub.

"We have a growing business with Tanjung Pelepas, it is our main transshipment terminal in Asia and it works very well," said Mr Andersen. "We also see opportunities for doing more business in Singapore. "Singapore itself is not a growth market, but we are doing more and more activities in the Far East, in South-east Asia, and that will mean that our headquarters in Singapore will also grow." Its oil drilling arm has ordered rigs from Singapore's Keppel Corp. That business in turn drills for companies like Shell and Malaysia's state oil firm Petronas. Mr Andersen noted that many drilling companies are ordering rigs as well. "There's a lot of capacity coming in. There is a risk depending on what the oil price will be going forward." He also pointed out that a lot of gas has been discovered. "Maybe there's a risk that the oil price will be less strong than everybody had expected." But he said his company has the advantage of having many businesses. "So if the drilling business gets difficult, then we have the ports or shipping business. So we have the possibility of reducing the risk."

http://business.asiaone.com/news/shippin...aersk-boss

New records for Singapore port last year: Estimates
Jonathan Kwok
The Straits Times
Friday, Jan 10, 2014

SINGAPORE- Singapore's port set new records last year in terms of vessel arrival tonnage and amount of cargo handled, according to advance estimates. Vessel arrival tonnage - the cargo-carrying capacity of ships rather than their weight - is estimated to have hit 2.33 billion gross tons, up 3.2 per cent on 2012's previous record of 2.25 billion gross tons. The port is estimated to have handled a record 32.6 million containers, a rise of 2.9 per cent from a year earlier. The figures were announced last night by Transport Minister Lui Tuck Yew at the Singapore Maritime Foundation (SMF) New Year cocktail reception at the Regent Singapore. The numbers show that Singapore remains the world's busiest port by vessel arrival tonnage. It is also the world's top bunkering port. About 42.5 million tonnes of bunker fuel - burnt by ships on their voyages - were sold here last year, although that was a dip from 42.7 million tonnes in 2012. Singapore remains second in terms of containers handled, after Shanghai which handled 33.6 million boxes last year, a rise of 3.4 per cent from 2012. Mr Lui said last year was "yet another challenging year for the maritime industry".

"Shipping companies continued to grapple with high energy costs and overcapacity. However, the global economy is slowly showing signs of recovery, largely driven by growth in Asia and other emerging markets."

Mr Lui added that Singapore is not spared these industry challenges but he is "heartened by the resilience of Maritime Singapore, which continues to register good growth".

The maritime sector contributes 7 per cent of Singapore's economic output and employs more than 170,000 people.

Mr Lui said the Government "remains committed to developing this key pillar of our economy".

"We will continue to strengthen our port infrastructure, with the opening of Pasir Panjang Terminal Phase Three later this year."

The Government will also continue working with schools and industry partners to grow local talent and prepare them to take on maritime careers. The SMF added four maritime leaders to its board yesterday, bringing it to 10 members.

The new members are Mr Andrew Tan, chief executive of the Maritime and Port Authority of Singapore, BW Maritime chief executive Andreas Sohmen-Pao, Mr Tan Puay Hin, regional chief executive for South-east Asia at PSA International, and Mr Lee Keng Mun, head of shipping for Asia at HSH Nordbank.

The reception also marked SMF's 10-year anniversary.

http://business.asiaone.com/news/new-rec...-estimates

Hi buddies,

There is a question on my mind which I have problem understanding.

Singapore is the 2nd or 3rd busy port in the world, so the goods are definitely not for Singapore alone.

What would a ship call Singapore a port, and then let the goods load to another ship to go to asean countries, why not go straight to the nearest port of destination? Like go straight to Thailand, Malaysia or what you have?

Is Shenzhen really competing with Shanghai? Will goods mean for delivery at guangzhou area be send to Shanghai? Doesn't make sense isn't it? So they are competing for goods for other areas, but don't other areas have their own ports too??

How did Singapore manage its port status with such a small domestic market??

(10-01-2014, 09:48 AM)Greenrookie Wrote: Hi buddies,

There is a question on my mind which I have problem understanding.

Singapore is the 2nd or 3rd busy port in the world, so the goods are definitely not for Singapore alone.

What would a ship call Singapore a port, and then let the goods load to another ship to go to asean countries, why not go straight to the nearest port of destination? Like go straight to Thailand, Malaysia or what you have?

Is Shenzhen really competing with Shanghai? Will goods mean for delivery at guangzhou area be send to Shanghai? Doesn't make sense isn't it? So they are competing for goods for other areas, but don't other areas have their own ports too??

How did Singapore manage its port status with such a small domestic market??

Hi Greenrookie,

Most container shipping is done along standardized routes and sailing schedules. Think of them like buses, containers get on and off while the ship itself continues along it's route. Presumably, ship operators plan such routes because they maximize ship utilization and slot revenues.

As to why Singapore was chosen as a transshipment hub, I would like to think the reason is the efficiency of our port services.

(10-01-2014, 12:10 PM)Clement Wrote:

(10-01-2014, 09:48 AM)Greenrookie Wrote: Hi buddies,

There is a question on my mind which I have problem understanding.

Singapore is the 2nd or 3rd busy port in the world, so the goods are definitely not for Singapore alone.

What would a ship call Singapore a port, and then let the goods load to another ship to go to asean countries, why not go straight to the nearest port of destination? Like go straight to Thailand, Malaysia or what you have?

Is Shenzhen really competing with Shanghai? Will goods mean for delivery at guangzhou area be send to Shanghai? Doesn't make sense isn't it? So they are competing for goods for other areas, but don't other areas have their own ports too??

How did Singapore manage its port status with such a small domestic market??

Hi Greenrookie,

Most container shipping is done along standardized routes and sailing schedules. Think of them like buses, containers get on and off while the ship itself continues along it's route. Presumably, ship operators plan such routes because they maximize ship utilization and slot revenues.

As to why Singapore was chosen as a transshipment hub, I would like to think the reason is the efficiency of our port services.

Hi Clement,

using your analog, there is no such thing as bus stop A is in competition with bus stop B for passengers, isn't it? With exceptions rather than norm, people using bus stop A to get to Bus stop B will not care how well/ how many passengers bus stop C is, isn't it?

The fact that bus stop A is crowded than B, is due to the fact that A is in a more populated town, so Shanghai with its higher economic activities, has higher container volumes, but how is it a competition to ShenZhen or Singapore??

Malacca straits is one of the busiest lane in the world. Hence the ports already got natural advantage

Singapore also have a good sheltered safe harbour

So it is a matter of comparative advantage in terms of legal deed, efficiency, corruption and logistics. That mainly explains the advantage vs our neighbours.

Ships like planes have a range due to their fuel capacities. So they need hubs to dock at as well. So Singapore has to position as a hub vs say Shanghai

(10-01-2014, 09:48 AM)Greenrookie Wrote: Hi buddies,

There is a question on my mind which I have problem understanding.

Singapore is the 2nd or 3rd busy port in the world, so the goods are definitely not for Singapore alone.

What would a ship call Singapore a port, and then let the goods load to another ship to go to asean countries, why not go straight to the nearest port of destination? Like go straight to Thailand, Malaysia or what you have?

Is Shenzhen really competing with Shanghai? Will goods mean for delivery at guangzhou area be send to Shanghai? Doesn't make sense isn't it? So they are competing for goods for other areas, but don't other areas have their own ports too??

How did Singapore manage its port status with such a small domestic market??

i use to have similar thinking until i find out it's cheaper for a ship from Indonesia to ship to Singapore then to China or anywhere else in the world, then shipping directly. There must be many reasons why this is so. Why?