Thursday, March 15, 2012

ITF newsletter on the economic crisis

ITF newsletter on the economic crisis

Link to Economic Crisis Newsletter

Company shorts - 15 Mar. 12

Posted:

APM Terminals is to invest US$150 million into a $600 million new container terminal with an annual capacity of 860,000 teu at Savona-Vado, in Italy, expected to be operational by 2016.

Hong Kong-based container line Orient Overseas Container Line (OOCL) reported a six per cent increase in volumes, but has gone into red in the second half of 2011.

Port Spencer in South Australia could become a deepwater dry bulk port after a US$250 million development, pending approval of the South Australia state government.

Japan's Mitsui OSK Lines (MOL) has announced a new feedership route between Singapore and Yangon in Myanmar, a twice-weekly service offered in cooperation with Thailand's Regional Container Lines.

Taiwan-based Evergreen Line is to start next month weekly services in cooperation with the CKYH Alliance (Cosco, K-Line, Yang Ming and Hanjin Shipping) on the Asia-Europe route. 

Hong Kong-listed dry bulk operator Sinotrans Shipping has posted 2011 profits of US$92 million, 28 per cent lower than the previous year, as its operation costs soared by 21 per cent to $198.7 million.

Sources: International Freighting Weekly, Lloyd's List; 15 March 2012

CMA CGM looks for investors

Posted:

French shipping line CMA CGM has stopped the newbuilding programme and seeks funds to restructure its US$5 billion debt and return to profit. The world's third largest carrier wants to sell a minority stake in its wholly owned ports unit Terminal Link, after raising $300 million from an earlier disposal of half of the shares held in Malta Freeport. CMA CGM has been in talks with French sovereign wealth fund Fonds Stratégique d'Investissement, but does not exclude the option of asking Turkish group Yildirim for a further cash injection of $500 million in return for a 20 per cent stake.

Source: Lloyd's List; 14 March 2012

Automatic operations at TraPac

Posted:

Terminal operator TraPac Inc, a subsidiary of Mitsui OSK (MOL), which handles freight for members of the New World Alliance, is to become the first automated container terminal on the US west coast. The Port of Los Angeles has confirmed that automated straddle carriers would be operational this year, as part of an expansion plan aimed at dealing with megaships. TraPac is expecting the delivery of ten Kalmar automatic stacking cranes and 17 automatic shuttle carriers until 2013. In two years, almost two-thirds of TraPac handling operations are planned to be automated.

Source: Lloyd's List; 14 March 2012

Rate hikes after 2011 losses

Posted:

The 15 container lines members of the Transpacific Stabilization Agreement (TSA) have recommended a general rate increase of US$300 per feu, effective from 15 March 2012. It is the second rate increase this year and a further one of at least $500 per feu is planned for May, as shipping lines are trying to bring the freight rates closer to their 2011 levels. Fuel prices have gone up since January and the market is still uncertain. Last year's carriers fight to secure the market share brought them huge losses, about $11.4 billion, according to the Danish consultancy firm SeaIntel Maritime.

Source: International Freighting Weekly; 14 March 2012

Maersk Flagship services

Posted:

Danish carrier Maersk Line has signed a partnership agreement with the US railroad BNSF to provide dedicated non-stop rail services scheduled to arrive at an agreed time. Further to the launch of the Daily Maersk Asia-Europe service, freight will be delivered directly from Asia to five key markets in North America: Chicago, Dallas-Fort Worth, Houston, Memphis, and Northwest Ohio. The vessels of Maersk Line are handled by APM Terminals Los Angeles Pier 400. In another development, Maersk Tankers announced that six vessels, three on the French second register and three Danish, are to be reflagged to Singapore as a cost-cutting measure.

Source: Lloyd's List; 14 March 2012