27-August-2015
Chinese shipowner and operator Fujian Guohang Ocean Shipping Group Co Ltd, a corporation primarily engaged in the dry bulk shipping industry, has officially declared that the board has sanctioned a proposal to establish an oil shipping division in the prestigious city of Tianjin.Chinese shipowner and operator Fujian Guohang Ocean Shipping Group Co Ltd will allocate an impressive sum of $4.7 million to this newly formed oil shipping arm, which shall be duly registered within the esteemed confines of Tianjin Dongjiang Bonded Area. Regrettably, during the initial half of 2015, Fujian Guohang Ocean Shipping Group Co Ltd encountered a nettlesome net loss of $21 million. This financial setback was ascribed to a downturn in the ship charter business and a significant reduction in overall capacity.
20-August-2015
Aristides Pittas strongly expresses his desire to remain in Greece, echoing a sentiment prevalent among his peers in the Greek shipping industry. However, Pittas, serving as the chairman and CEO of Euroseas, finds himself at a crossroads, facing a dilemma between national loyalty and operational feasibility, especially in light of the recent resignation of the Greek prime minister. The economic challenges in Greece, prompting calls for the shipping community to increase their economic contributions through higher taxes, alongside restrictive capital controls, have cast a shadow of uncertainty. This situation has led many within the Greek shipping sector to contemplate relocation to more favorable jurisdictions like Cyprus or Asian maritime hubs. Pittas, however, hopes to retain as much of the company’s operations within Greece as possible. Euroseas Ltd, alongside its affiliate Eurobulk Ltd and other related entities, manages a fleet of about 30 vessels from Maroussi, Athens, facing higher operational costs in Greece compared to other locations. Despite this, Pittas acknowledges the importance of contributing to Greece’s economy, albeit wary of the potential exodus of companies should fiscal demands escalate excessively. He takes pride in Greece’s stature as a leading global maritime player but warns of the repercussions of overburdening the industry. Despite the gloomy market conditions, particularly in the dry bulk sector, Pittas remains moderately optimistic, drawing on his experience of previous downturns, notably the mid-1980s. He views the current market lows as an opportune moment for acquisition, particularly second-hand vessels, advocating for strategic purchases during cyclical lows. Euroseas Ltd is poised for expansion, expecting the delivery of two kamsarmax and two ultramax bulk carriers ordered in 2014 from Chinese shipyards. Despite contemplating the sale of these newbuilds at one point, the decision to retain them underscores Euroseas Ltd’s commitment to growth and confidence in a market rebound. Euroseas Ltd’s strategy of short-term charters for its container and dry bulk vessels positions it well to capitalize on market improvements. The company’s recent rights issue, aiming to raise up to $20 million for its newbuilding program, reflects Pittas’s belief in investing during downturns to leverage future market corrections. Eurobulk Ltd, integral to the operations of Euroseas and under the Pittas family’s leadership, exemplifies excellence in maritime management. Specializing in the ownership and management of bulk carriers and container ships, Eurobulk Ltd is recognized for its operational proficiency and strategic foresight. With a focus on enhancing fleet efficiency and capitalizing on market opportunities, Eurobulk Ltd’s partnership with Euroseas Ltd highlights a shared vision for navigating the complexities of the global shipping industry, reinforcing their commitment to Greece’s maritime legacy while adapting to the demands of a changing economic landscape.
13-August-2015
Germany’s RWE group has secured a charter agreement for six ultramax bulk carriers from Norwegian shipowner and operator Spar Shipping AS. These vessels are set on five-year time charters with undisclosed floating rates, while Bergen-based Spar Shipping AS retains the flexibility to fix a rate at any time throughout the charter period. The bulk carriers in this deal include the MV Spar Aries and MV Spar Pyxis, each with a deadweight of 64K DWT, and the MV Spar Apus with a deadweight of 63K DWT, all built in 2015. Additionally, the charter includes three unnamed newbuildings still under construction at Jiangsu Hantong shipyard in China, with expected delivery by the fourth quarter of 2015. Spar Shipping AS, headquartered in Bergen, Norway, has a longstanding reputation in the maritime industry for its robust fleet management and operational efficiency. The company specializes in the ownership and operation of dry bulk carriers, ranging from supramax to ultramax vessels. Spar Shipping AS is known for its strategic fleet expansions and modernizations, consistently investing in vessels that offer both environmental benefits and operational efficiency. Spar Shipping AS’s fleet, noted for its young age profile and technical reliability, enables Spar Shipping AS to meet diverse client needs in the global shipping market, adhering to the highest safety and environmental standards. This recent charter agreement with RWE group not only underscores Spar Shipping AS’s capacity for significant maritime operations but also its role as a key player in the European shipping sector.
6-August-2015
Fujian, located on China’s southeast coast, has long been a pivotal maritime hub. It gained historical significance when the renowned explorer Zheng He embarked on his inaugural voyage from Quanzhou, Fujian, in 1405, marking a significant chapter in China’s maritime history. To bolster its maritime influence, the Fujian Provincial Communication Transportation Group consolidated major shipping entities in the region to form the Fujian Shipping Group at the end of 2014. This new entity amalgamated the three largest shipping companies in Fujian—Fujian Shipping Company, Xiamen Shipping Company, and Orient Shipping Company—along with over 40 smaller firms. As a result, Fujian Shipping Group emerged as the leading shipping and crew management organization in the province, boasting a fleet of 45 vessels. Yang Jinchang, previously the general manager of Fujian Shipping Company, was appointed as the general manager of the newly formed Fujian Shipping Group. The annual cargo throughput in Fujian exceeds 300 million tons. Historically, 90% of this was handled by non-local shipping companies, but the formation of Fujian Shipping Group is set to gradually change this dynamic. The group has strategically divided business sectors among its major companies: Fujian Shipping Company now specializes in bulk shipping, Orient Shipping in container shipping, and Xiamen Shipping focuses on passenger transport after transferring its bulk assets to Fujian Shipping Company. The consolidation under Fujian Shipping Group has optimized the region’s fleet assets and enhanced its maritime capabilities. It serves as a model for promoting mergers and alliances in the local shipping industry, particularly in response to market downturns. In line with Beijing’s push for maritime mergers during economic challenges, the Fujian Free Trade Zone (FTZ) was inaugurated, following the examples of Shanghai, Tianjin, and Guangzhou. Spanning 118 square kilometers across Fuzhou, Xiamen, and Pingtan, the Fujian FTZ aims to intensify trade between mainland China and Taiwan, a venture from which Fujian Shipping Group is poised to benefit significantly. Fujian Shipping Group is authorized by the Ministry of Transport to operate direct container services to Taiwan and plans to expand its China-Taiwan services. The group anticipates a surge in shipping demand, correlating with the commencement of various steel and power projects in Fujian. Additionally, Fujian Shipping Group is restructuring its port assets. Significant developments include the 2014 restructuring of Xiamen Port and the establishment of Putian Port Group, integrating port assets in Meizhou Bay. Fujian’s government has outlined plans to centralize container shipping in Xiamen and Jiangyin ports, dry bulk in Luoyuanwan and north Meizhou Bay, and liquid bulk in Zhangzhou and south Meizhou Bay. Fujian Shipping Group envisages that the concurrent development of shipping and port sectors will attract more traders and suppliers, stimulating the entire industrial chain and solidifying its role in regional economic advancement.