Thursday, February 9, 2012

ITF newsletter on the economic crisis

ITF newsletter on the economic crisis

Link to Economic Crisis Newsletter

Company shorts - 09 Feb. 12

Posted:

Hamburg-based Albert Ballin consortium could increase its 61.6 per cent stake in container line Hapag-Lloyd after negotiations with the German tourism group Tui.

Box volumes at China's port of Shanghai declined to 2.6 million teu in January from 2.7 million teu a month earlier, while the port's total cargo throughput dropped 800,000 tonnes to 40.5 million tonnes.

The French port of Nantes-St Nazaire has announced a €40 million investment to expand its container and ro-ro activities and raise its annual throughput.

Australia's mining, oil and gas company BHP Billiton has teamed up with Japanese corporations Itochu and Mitsui to invest US$917 million in expanding the annual capacity of Port Hedland, scheduled to be open by 2016.

Seago Line, a subsidiary of Danish giant Maersk, has launched a weekly service between Barcelona and four Turkish ports at the Marmara Sea, in cooperation with Turko Line.

Seadrill, the largest deepwater driller in the world, has won jack-up rig contracts worth US$311 million from Brunei Shell Petroleum, ExxonMobil E&P Malaysia and Colombia's Equion Energia.

Source: International Freighting Weekly; Lloyd's List; 8-9 February 2012

Growth for ports and losses for Korean shipping lines

Posted:

Transhipment cargo has assisted the container throughput at South Korea's seaports to grow seven per cent to 1.81 million teu, a new record for the first month of 2012. The fifth busiest seaport in the world, the port of Busan, handled 1.36 million teu. On the other hand, the country's largest carriers, Hanjin Shipping and Hyundai Merchant Marine (HMM), reported combined operating losses of more than US$900 million for 2011. South Korea's shipbuilder Hyundai Mipo Dockyard has seen its annual profit slashed in half, but plans to sign orders worth more than $3 billion in order to balance its accounts. Korean shipbuilders and owners in trouble are looking to benefit from a $3 billion programme announced by the Export-Import Bank of Korea for ship financing.

Sources: International Freighting Weekly; Lloyd's List; 8 February 2012

Strong results for Spanish ports

Posted:

Valencia Port Authority (PAV) posted a 2.9 per cent increase in 2011 volumes, to 4.3 million teu. The largest container seaport in Spain, Valencia saw its exports surging 12.4 per cent, although imports declined by 5.3 per cent. The port of Valencia is the fifth biggest container hub in Europe and is rethinking its 10-year strategy aimed at reaching six million teu by 2020 . The container throughput at the port of Barcelona was more than two million teu last year, a four per cent growth over 2010. Exports and auto terminals performed better last year.

Source: Lloyd's List; 8 February 2012

Slow growth for Asia to Europe trades

Posted:

Asia to Europe volumes declined in the last quarter of 2011, after slowing down from a six per cent growth in the first three months of the year, according to the latest data from Container Trades Statistics. However, the overall annual dry and reefer traffic for 2011 was 13.9 million teu, a 3.3 per cent rise compared to 2010. Freight rates continued to fall with the Asia-Europe price index dropping to 64 in December from 95 a year ago. In addition, sea carriers are expected to deploy more capacity this year on the Far East to North Europe services, including several mega-ships. Spot rates could rise again if rate-restoration programmes of up to $900 per teu announced by several shipping lines are implemented.

Source: Lloyd's List, International Freighting Weekly; 8 February 2012

Several carriers on the brink of bankruptcy

Posted:

Slowdown in volumes and a delay of at least a year in improving the freight market could see several shipping lines forced to file for bankruptcy. Between five and seven carriers will run out of liquidity and will not have the means to pay their lenders in 2012, according to New York-based investment bank and consultancy AMA Capital Partners. Banks are expected to be open to discussions, but have to make tough decisions in some cases. Hedge funds and private equity firms have diminished their interest in maritime investments lately, and retail investors are still waiting for better times before buying shares in shipping initial public offerings.

Source: Lloyd's List; 9 February 2012