ITF newsletter on the economic crisis |  |
- Company shorts - 26 Jan. 12
- Defaults rise at Nordic lender
- Drewry predicts no new mergers for box lines
- NYK container volumes stable
| Posted: Brittany Ferries expects to make a profit for the first time in four years. Growth in services to Spain have contributed to the turnaround. Chile based shipping line CSAV has raised a further $129 million in a share issue. The firm's $1.2 billion fundraising drive is on track with $788 million raised so far. Dubai Ports World and ABP have sold their stakes in London's Tilbury Container Services to Forth Ports. Norden, a Danish shipping line, says it will replace 24 Danish officers with Indian and Fillipino officers in a cost cutting drive. The Port of Long Beach and OOCL have tentatively agreed a $4.6 billion, 40 year lease for a new terminal. The Port of Long Beach says the deal is the largest in US port history. The Port of Rotterdam predicts that its container volumes will outstrip major rivals until 2017. The report was released in response to a €900 million compensation suit from Hutchison Port Holdings operated ECT, which claims that new Maasvlakte 2 terminal will create overcapacity. The governments of South Sudan and Kenya have signed an agreement to build a pipeline to the proposed deepwater Port of Lamu in Northern Kenya. The pipeline will allow South Sudan to export oil to China more easily. Stolt Tankers posted an operating profit of $7 million for the last three months of 2011. The company says an oversupply of chemical tankers is holding down profits. Source: Lloyds List, Tradewinds 26 Jan 2012 |
| Defaults rise at Nordic lender Posted: Nordea has reported a substantial increase in shipping related losses. The Sweden based bank's loss ratio for shipping increased by seventeen fold in 2011. A loss ratio is defined as uncoverable debt as a percentage of total debt. The tanker market was the biggest source of losses, while other shipping sectors were more stable. The increased losses may be a sign that shipping related defaults will increase as banks become less willing to continue to restructure debts. Source: Lloyds List; 26 January 2012 |
| Drewry predicts no new mergers for box lines Posted: Shipping consultants Drewry are doubtful that there will be any major new mergers. The container trade is still suffering from over-capacity. But recent experience, particularly Maersk Line's costly acquisition of P&O Nedlloyd, means that mega-mergers are unlikely to be considered by industry leaders. Meanwhile, Drewry predicts that overcapacity will continue on the crucial Asia-Europe trade. Scheduled deliveries are predicted to increase capacity by 14 per cent. Source: Lloyds List; 26 January 2012 |
| Posted: NYK, Japan's largest shipowner, has reported minor increases on most of its major routes for the third quarter of 2011. Volumes between Asia and US were up by 3% compared to the same period in 2010, while volumes between Asia and Europe were unchanged. The Japan Credit Rating Agency (JCR), has downgraded NYK's bond rating due to difficult trading conditions in the shipping industry. However, JCR predicts that NYK's losses will decrease substantially to JPY22.5bn for the financial year ending March 2012. NYK's losses last year were JPY136.7bn. Source: Tradewinds; 26 January 2012 |
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