28-December-2023
The recent Houthi disturbances have primarily impacted container ships, with gas carriers also affected, though to a lesser degree. According to the latest data from London-based the world’s biggest shipbroker Clarksons’ research arm Clarksons Research, covering the five days leading up to December 26, there has been a significant decline in ship arrivals in the Gulf of Aden. This 40% drop in arrivals, compared to the first half of December, follows major shipping companies’ decision to steer clear of the route due to concerns over rebel attacks near Yemen. Interestingly, bulk carriers and tankers seem to have been less impacted by these disruptions so far, as per the figures released by Clarksons Research.
28-December-2023
Japanese shipowner and operator NYK Line (Nippon Yusen Kabushiki Kaisha) is embarking on an ambitious project to conduct extensive biofuel bunker trials starting in 2024. This initiative is driven by the need to gain more experience regarding the compatibility of biofuels with existing onboard machinery. Through these trials, NYK Line aims to deepen its understanding of biofuels as a viable alternative to traditional bunker fuels. NYK Line (Nippon Yusen Kabushiki Kaisha) plans to test biofuels over extended periods, with multiple ship types utilizing biofuel continuously for up to three months in each trial phase. Following these initial trials, NYK Line (Nippon Yusen Kabushiki Kaisha) intends to progressively increase the duration of biofuel use. This step-by-step approach will allow for comprehensive evaluation and validation of biofuels over longer periods, contributing significantly to the shipping industry’s knowledge base and efforts towards sustainable bunker solutions.
28-December-2023
In a recent incident in the Black Sea, two crew members were injured when a Greek-managed general cargo ship encountered a mine. This event occurred early on Wednesday as the MV Vyssos was en route to load grain at a Danube river port. The mine strike triggered a fire on the upper deck of the Panama-flagged 2007 built coaster ship 8K DWT MV Vyssos. Following the explosion, MV Vyssos experienced a loss of speed and control, further complicating the situation. This incident has prompted plans for a cleanup operation in the region, as storms have dispersed mines, posing risks to maritime navigation.
28-December-2023
Athens-based New York-listed shipowner and operator Star Bulk Carriers (SBLK) has successfully completed another lucrative ship sale, marking a dynamic end to their year. This sale of an eight-year-old ultramax bulk carrier is the 13th instance this year where the Petros Pappas-led shipowner and operator Star Bulk Carriers (SBLK) has offloaded a ship in the secondary market. This move is part of their ongoing strategy for gradual fleet renewal. Market insiders reveal that the New York-listed shipping titan sold the 2015 built ultramax bulk carrier 61K DWT MV Star Bovarius for a sum of $25 million. Additionally, Star Bulk Carriers (SBLK) has provided insights into the company’s cautious approach towards fueling decisions.
27-December-2023
The dry bulk shipping sector could face challenges in 2024 due to potential constraints in ship supply. This market has historically been highly reactive to fluctuations in ship availability. In recent years, the industry has navigated a series of unprecedented challenges, including dam failures, the COVID-19 pandemic, port congestions, and the implementation of the IMO (International Maritime Organization) 2020 bunker regulations, along with rapidly changing trade sanction policies. These events have tested the sector’s resilience and adaptability. The current situation in the Red Sea, with maritime trade adjusting to new threats to vessel safety, raises concerns about the future, particularly for 2024. The sensitivity of the dry cargo trading fleet to such changes has been clearly observed, particularly in 2021, demonstrating the potential for significant impact from shifts in ship supply. This scenario suggests that the industry might once again have to brace for a turbulent period if ship availability becomes restricted.
25-December-2023
Performance Shipping (PSHG), a Greek tanker owner listed on Nasdaq Stock Exchange, has successfully chartered its 2013-built aframax tanker, MT P. Long Beach, to Marathon Maritime Company, an affiliate of Marathon Petroleum. This arrangement guarantees the 105K DWT tanker a daily rate of $37,200 for approximately two years, beginning at the end of December. Marathon Maritime has the flexibility to extend or shorten the charter by up to 40 days. From this agreement, Performance Shipping (PSHG) anticipates generating around $25.7 million for the charter’s minimum duration. Andreas Michalopoulos, the CEO of Performance Shipping (PSHG), noted that this deal places over half of the company’s fleet on time charter contracts, with daily earnings ranging from $23,000 to $37,200. This secures a revenue backlog of roughly $54 million, based on the shortest duration of each charter. Athens-based shipowner and operator Performance Shipping (PSHG), which currently owns seven aframax tankers and has three new builds scheduled to join its fleet soon, is looking to boost its profitability by taking advantage of strong freight rates. They plan to operate their remaining tankers under pool arrangements, thereby ensuring steady cash flow. This will not only strengthen Performance Shipping’s position in the market but also support their strategy for fleet expansion and renewal. It will partially fund their capital investments in three new LNG-ready LR2 Aframax tankers, slated for delivery in 2025 and 2026.
24-December-2023
Qingdao-based Hong Kong-listed shipowner and operator Seacon Shipping Group Ltd has made a significant expansion to its fleet by ordering four additional 62K DWT multipurpose dry cargo ships from Huanghai Shipbuilding. This order is part of a deal with the leasing arm of China Merchants. Chinese shipowner and operator Seacon Shipping Group Ltd, which is listed on the Hong Kong Stock Exchange, has entered into an agreement with subsidiaries of China Merchants Financial Leasing. Under this agreement, Seacon Shipping Group Ltd will bareboat charter the newbuilds for a period of up to 15 years. These vessels are scheduled for delivery in the fourth quarter of 2025, with each ship priced at approximately $41.5 million. Notably, the agreement includes purchase options for Seacon Shipping Group Ltd. Initially, the charter is set for a three-year term, and Seacon Shipping Group Ltd has the opportunity to extend this period. If the extension options are not exercised, Seacon Shipping Group Ltd will proceed to purchase the ships directly from the shipowning entities of China Merchants. In addition to this new order, Seacon Shipping Group Ltd, based in Qingdao, has also arranged a similar sale and leaseback financing structure with Hong Kong-incorporated units of China Merchants for the first two 62K DWT ships. These ships were previously ordered at Huanghai and are expected to be delivered by Q4 2024. This strategic move by Seacon Shipping Group Ltd indicates a robust commitment to expanding and modernizing its fleet, utilizing innovative financing solutions like sale and leaseback arrangements. Such deals provide flexibility in fleet management and financial planning, allowing shipping companies to grow their operations while managing capital expenditures effectively. The use of bareboat charters coupled with purchase options also offers a versatile approach to fleet expansion, balancing operational needs with financial prudence.
24-December-2023
The US has reported an incident involving a drone attack on the Ace Quantum Chemical Tankers ship in the Indian Ocean, attributing the origin of the drone to Iran. This event occurred during a weekend marked by heightened maritime violence, including attacks by Houthi forces on two tankers in the Red Sea. According to a Defense Department official, the 21K DWT chemical tanker MT Chem Pluto, built in 2012, was targeted by a one-way attack drone launched from Iran. The attack took place while the vessel was positioned 370 kilometers off the coast of India. In response to these incidents, a US Navy warship intervened after receiving distress calls and successfully shot down four drones in the southern Red Sea. This action by the US Navy represents a direct response to the escalating threats in these key maritime regions. These incidents highlight the ongoing tensions and security challenges in key maritime areas, including the Indian Ocean and the Red Sea. Such events underscore the importance of maintaining maritime security and the readiness of naval forces to respond to threats in international waters. The involvement of different state and non-state actors in these incidents further complicates the geopolitical landscape, impacting the safety and security of international maritime trade routes.
23-December-2023
Montreal-based Canada Steamship Lines (CSL) has formed a groundbreaking partnership with Adelaide Brighton Cement (Adbri) to construct and operate the world’s first fully electric, battery-capable self-unloading bulk carrier. This innovative ship, boasting a deadweight tonnage (DWT) of 11K, is slated for delivery in Q1 2026. Under a 20-year strategic alliance, the specially designed ship will replace Adbri’s Accolade II and play a crucial role in the company’s limestone operations in South Australia. The new ship is expected to transport up to 2.7 million tonnes of limestone annually, marking a significant 35% increase in carrying capacity compared to the current vessel. The newbuild will feature hybrid diesel-electric propulsion, supplemented by one of the most advanced battery installations on a bulk carrier. According to Canadian shipping company CSL, about 50% of the self-unloading vessel’s energy needs will be met through a mix of shore power and battery energy storage. There are also plans to equip the ship with enough batteries in the future to enable 100% electric operations. Louis Martel, President and CEO of Canada Steamship Lines (CSL), highlighted the self-unloading vessel’s alignment with CSL and Adelaide Brighton Cement’s (Adbri) joint commitment to decarbonization. Initially, the ship will operate on a hybrid system combining diesel and electric power, reducing diesel usage by 25% and cutting Scope 1 emissions by 40% compared to the Accolade II. By 2031, the goal is to operate the ship entirely on electric power, thereby further reducing Scope 1 emissions to less than 10%. This initiative represents a significant step forward in the maritime industry’s efforts towards sustainability and decarbonization. The development of such a ship demonstrates a proactive approach to addressing environmental concerns and signifies a notable advancement in green shipping technologies.
23-December-2023
Eastern Mediterranean Maritime (Eastmed), a prominent Greek shipping company, has recently marked a significant development in its fleet expansion strategy. After a hiatus of ten years without placing any bulker orders, Eastmed has signed contracts for a series of ultramax newbuildings with the Chinese shipyard Nantong Xiangyu Shipbuilding & Offshore Engineering. Controlled by Thanassis Martinos, Eastmed has confirmed the order of four new 63K DWT ultramax bulk carriers. This move signals a strategic expansion and modernization of Eastmed’s fleet, and it also represents a renewed confidence in the bulker market. The scheduled delivery of these ultramax bulk carrier newbuildings is set to occur between Q1 and Q4 2026. This order signifies a notable commitment by Eastmed to enhancing its presence in the global shipping industry, particularly in the bulk carrier segment. The decision to invest in these new vessels after a decade-long gap reflects Eastern Mediterranean Maritime’s (Eastmed) assessment of market conditions and future prospects in maritime trade.
23-December-2023
Helsinki-based Aspo Group’s shipping arm ESL Shipping is actively transitioning its fleet with a focus on sustainability, as evidenced by its recent financial restructuring. The parent group of ESL Shipping, Aspo, has entered into a loan agreement amounting to $41.4 million. This funding is earmarked to refinance existing loans associated with two of their ships, both built in 2018. These two ships, notable for their 25K DWT ice-class and LNG-fuelled capabilities, represent ESL Shipping’s commitment to environmentally friendly maritime operations. The ships, MV Vikki and MV Haaga, are part of ESL Shipping’s fleet of 15 owned vessels, all of which boast ice-class status, with these two being dual-fuelled, operating on both traditional and LNG fuel. The Helsinki-listed Aspo specified that the new loan agreements with OP Corporate Bank are intended to replace loans of a similar size. This financial move underlines ESL Shipping’s strategic approach to managing its fleet’s financial and environmental aspects. By refinancing these loans, CEO Mikki Koskinen-led shipowner and operator ESL Shipping demonstrates its dedication to maintaining a modern, eco-friendly fleet while ensuring financial sustainability. Such decisions are increasingly important in the maritime industry, where environmental considerations are becoming paramount, and companies are seeking to balance ecological responsibility with economic viability.
23-December-2023
Bulgarian shipowner and operator Navibulgar (Navigation Maritime Bulgare) is currently facing two critical situations involving its vessels. The company has offered its full support in the investigation of a significant drug haul discovered on one of its ships, the Malta-flagged bulk carrier MV Verila, by Irish authorities. The 2022-built, 32K DWT handysize bulk carrier was found with a substantial quantity of drugs on board earlier this week in Ireland. In a rare public statement, Bulgarian shipowner and operator Navibulgar (Navigation Maritime Bulgare) has firmly denied any involvement or connection with the drug load found on the MV Verila. Navibulgar (Navigation Maritime Bulgare) emphasized that drug trafficking aboard its vessel would be a severe crime and a blatant violation of its values, internal rules, policies, and procedures. Concurrently, Navibulgar (Navigation Maritime Bulgare) is dealing with a separate and equally pressing issue regarding another of its vessels, which is believed to be held captive in Africa, possibly by resurgent Somali pirates. In contrast to their open response to the drug incident, Navibulgar (Navigation Maritime Bulgare) has maintained strict silence about this situation. These two concurrent crises – the drug investigation in Ireland and the possible piracy situation in Africa – represent significant challenges for Navibulgar (Navigation Maritime Bulgare), testing the company’s crisis management and operational integrity. Navibulgar’s (Navigation Maritime Bulgare)response and cooperation with the authorities in the Irish drug investigation are critical, as is its handling of the potential piracy situation, reflecting the complex and multifaceted risks faced by global shipping operators.
23-December-2023
Performance Shipping (PSHG), a Greek tanker company listed on the Nasdaq, is advancing its fleet expansion with the commissioning of two new LNG-ready LR2 aframax tankers for product and crude oil transportation. These LNG-ready LR2 aframax tankers priced at approximately $64.5 million, are being constructed by China Shipbuilding Trading and CSSC-affiliated Shanghai Waigaoqiao Shipbuilding (SWS). The scheduled delivery dates are set for Q1 2026. These new LNG-ready LR2 aframax tankers will feature advanced technology, including electronic main engines, high-pressure selective catalytic reactors (HPSCR), scrubbers, and ballast water treatment systems (BWTS). Athens-based New York-listed shipowner and operator Diana Shipping (DSX) offshot Performance Shipping (PSHG) currently operates a fleet of seven aframax tankers and is set to further expand with three newbuild LR2s slated for service in the near future. This expansion follows a previous contract in March 2023 with Shanghai Waigaoqiao Shipbuilding (SWS) for a similar ship, expected to be delivered around Q4 2025 at a cost of $62.5 million. Consequently, Performance Shipping (PSHG) is preparing to welcome three identical sister ships between late 2025 and early 2026. These acquisitions are a significant part of Performance Shipping’s strategy to expand and renew its core fleet. Performance Shipping (PSHG) anticipates that the growth of the tanker fleet will reach historical lows in the coming years. By maintaining a modern fleet amidst an aging global fleet, especially during periods of high demand for seaborne trade, Performance Shipping (PSHG) aims to achieve sustainably strong fundamentals and higher asset values.
23-December-2023
In response to escalating safety concerns in the Southern Red Sea, largely due to Houthi attacks, the International Bargaining Forum (IBF) has revised its collective bargaining agreement (CBA) to include a new high-risk area. This change reflects the heightened risk to seafarer safety in this region. The IBF CBA, a significant agreement in the shipping industry negotiated between employers and the International Transport Workers’ Federation (ITF), covers approximately 9,200 ships. The inclusion of the Southern Red Sea as a high-risk area in this agreement is a significant development, as it acknowledges the increased dangers faced by seafarers navigating these waters. This adjustment to the CBA likely involves the implementation of a wage bonus for seafarers operating in this newly designated high-risk area. Such measures are typically introduced to compensate crew members for the added risks they face while transiting through regions with heightened security threats. The decision to expand the high-risk area under the IBF CBA underscores the ongoing concern for the safety and wellbeing of maritime workers. It also reflects the shipping industry’s need to adapt to changing geopolitical situations and ensure that the terms of employment adequately reflect the risks involved in certain sea routes. This update to the CBA demonstrates a proactive approach by employers and the ITF in addressing the challenges and dangers in the Southern Red Sea, aiming to ensure the safety and fair compensation of seafarers.
23-December-2023
One of the world’s largest supramax bulk carrier operators Oslo-headquartered Western Bulk Carriers (WBC) endured a difficult 2023, suffering heavy losses after maintaining a negative market stance that left Western Bulk Carriers (WBC) exposed to higher charter rates when freight markets moved sharply upward. Oslo-listed operator Western Bulk Carriers (WBC), active across supramax, ultramax, and handysize bulk carriers, said two distinct market spikes in the second half of 2023 drove chartering costs materially higher, and Western Bulk Carriers (WBC) ended up paying up for ships at precisely the wrong moments because its market view had been too pessimistic for too long. The misread on bulker market direction translated into weaker trading performance, highlighting how quickly results can swing for an operator that relies on chartering ships rather than owning a large fixed fleet. Western Bulk Carriers (WBC) disclosed that it expects a net loss in the range of $14 million to $16 million for the full year, a result that underscores the operational and financial risk of being positioned incorrectly when the market turns. The setback is particularly notable given the way Western Bulk Chartering (WBC) operates as a chartering-focused platform, where Western Bulk Chartering (WBC) sources bulk carriers from a broad mix of shipowners and deploys them into cargo flows worldwide, aiming to create value through market execution, positioning, and risk management rather than through balance-sheet-heavy ownership. Western Bulk Chartering (WBC) is designed to benefit from volatility by adjusting exposure, timing fixtures, and balancing spot coverage with period commitments, but the 2023 experience shows that volatility can work against a chartering platform when its trading stance remains short or defensive through a sudden upswing. When charter rates spike quickly, Western Bulk Chartering (WBC) can face immediate cost inflation on replacement ships and new fixtures, and if the trading book is positioned on the wrong side, the operator can be forced to cover at higher levels, compressing margins and locking in losses. Western Bulk Chartering (WBC) must therefore continuously manage the interaction between market forecasting, charter coverage, and fleet positioning, because the cost of chartering ships is a direct input to profitability and can rise sharply during short, intense rallies like those seen in the latter half of 2023. Western Bulk Carriers (WBC)’s results underline how challenging strategic planning can be in the dry bulk sector, where freight moves can be violent, sentiment can shift quickly, and the timing of coverage decisions can dominate earnings outcomes. In that sense, Western Bulk Carriers (WBC) and Western Bulk Chartering (WBC) provide a clear reminder that even large, experienced operators with broad market access can suffer meaningful financial consequences when market trends are misjudged and chartering exposure is not recalibrated fast enough in a volatile shipping environment.
23-December-2023
Wilhelmsen Ship Management and MPC Capital have successfully negotiated a deal to fully acquire Zeaborn Ship Management GmbH & Co. KG, a move that represents a major advancement in their collaborative efforts in the ship management sector. This acquisition serves to enhance their existing partnership, which includes the joint venture Wilhelmsen Ahrenkiel Ship Management and integrates the expertise of Barber Ship Management in tanker operations. Zeaborn Ship Management, which currently manages a fleet of around 100 vessels, has a global operational footprint with offices located in Hamburg, Limassol, Singapore, and Manila. Following the acquisition, the combined operations will continue to operate under the well-established brand names of Wilhelmsen Ahrenkiel Ship Management and Barber Ship Management. The leadership of these joint activities will be shared between Dr. Michael Silies and Michael Brandhoff. Dr. Silies, who has been with MPC Capital since 2003 and has led Wilhelmsen Ahrenkiel since 2020, will join forces with Michael Brandhoff, the managing director of Zeaborn Ship Management GmbH & Co. KG since 2021. The finalization of this transaction is expected in the first quarter of 2024, subject to the approval of relevant regulatory authorities. Carl Schou, the CEO of Wilhelmsen Ship Management, has pointed out the growing trend towards consolidation within the industry and the increasing importance of achieving economies of scale and establishing a global presence. This is particularly pertinent in light of new regulatory demands facing the maritime sector. Furthermore, CEO Carl Schou has underscored the strategic significance of being among the top 10 players in the industry to make a meaningful impact. This acquisition positions Wilhelmsen Ship Management and MPC Capital favorably within the competitive landscape, enabling them to leverage combined strengths and resources for greater market influence and operational efficiency.
23-December-2023
Wilhelmsen Ship Management and MPC Capital have reached an agreement to fully acquire Zeaborn Ship Management GmbH & Co. KG. This marks a significant step in the partnership of Wilhelmsen and MPC Capital, complementing their joint venture in ship management, Wilhelmsen Ahrenkiel Ship Management, and the tanker expertise of Barber Ship Management. Zeaborn Ship Management, overseeing approximately 100 vessels, operates from offices in Hamburg, Limassol, Singapore, and Manila. Post-acquisition, the unified operations will maintain the brand identities of Wilhelmsen Ahrenkiel Ship Management and Barber Ship Management. Dr. Michael Silies and Michael Brandhoff will jointly lead these activities. Dr. Michael Silies, part of MPC Capital since 2003 and leading Wilhelmsen Ahrenkiel since 2020, joins Michael Brandhoff, who has been the managing director of Zeaborn Ship Management GmbH & Co. KG. since 2021. The transaction’s completion is anticipated in the first quarter of 2024, pending regulatory approvals. Wilhelmsen Ship Management CEO Carl Schou highlighted the industry’s shift towards consolidation and the necessity for economies of scale and global presence, especially with new regulatory demands. Wilhelmsen Ship Management CEO Carl Schou emphasized the importance of being in the top 10 for significant industry impact.
22-December-2023
Irish authorities recently discovered a significant drug haul on a Malta-flagged bulk carrier, the MV Verila, controlled by Navibulgar (Navigation Maritime Bulgare), a Bulgarian shipowner and operator. The vessel, a 32K DWT bulker built in 2022, was found with 300 kilograms of cocaine in its cargo department while docked at the port of Foynes. This shipment, which had arrived from Montreal, Canada, with a grain cargo, contained cocaine estimated to have a street value of at least $23 million. The cocaine was ingeniously concealed with a buoyancy aid and a GPS locator beacon, indicating that it was likely intended to be thrown overboard at a designated location. As the investigation proceeds, the crew of the MV Verila is currently undergoing interviews by the police, though no arrests have been made so far. This incident comes amid another challenging situation for Navibulgar, as they are concurrently dealing with the reported hijacking of another of their vessels, the 41K DWT MV Ruen (built in 2016), by Somali pirates earlier this week. The MV Verila had departed from Canada on December 9, 2023, and arrived in Foynes on the following Thursday morning. The discovery of such a large quantity of cocaine in the cargo area raises significant concerns and underscores the ongoing challenges faced by shipping companies in combating illegal activities at sea.
20-December-2023
Istanbul-based shipowner and operator Beks Shipping (Beks Ship Management and Trading), under the control of the Bekmezci family, has successfully sold its first and only newcastlemax bulk carrier, the 206K DWT MV Beks Brown (ex MV Cape Maple), a 2005-built newcastlemax bulk carrier. This sale, after a year of ownership, resulted in a $1.5 million profit. At the start of the year, the MV Beks Brown (ex MV Cape Maple) was acquired for about $15 million from Japanese interests. Constructed by Imabari, the MV Beks Brown (ex MV Cape Maple) is part of Turkish shipowner and operator Beks Shipping’s (Beks Ship Management and Trading) sizable fleet, which includes 17 bulk carriers. This year, Beks Shipping (Beks Ship Management and Trading) the highest bids for 14 ships, a decrease from last year’s 17. Currently, Beks Shipping’s (Beks Ship Management and Trading) expanding fleet comprises approximately 44 ships, collectively valued at nearly $900 million. This growth underscores the Beks Shipping’s (Beks Ship Management and Trading) active presence and strategic maneuvers in the maritime industry.
20-December-2023
Limassol-based shipowner and operator Castor Maritime (CTRM), which specializes in bulkers and container ships, has confirmed its departure from the capesize segment with the sale of its 2006-built MV Magic Orion. The Nasdaq-listed Castor Maritime (CTRM), led by Petros Panagiotidis, anticipates completing the sale of the 180K DWT capesize bulk carrier MV Magic Orion, built by Imabari, by the end of the Q1 2024. The transaction, with an undisclosed buyer, is valued at $17.5 million, and Castor Maritime (CTRM) expects to realize a net profit of approximately $2 million, not accounting for transaction-related expenses. Additionally, Castor Maritime (CTRM) has recently concluded the sale of the 2009 built kamsarmax bulk carrier MV Magic Argo, generating a profit of about $3 million. Following these transactions, Castor Maritime’s fleet, once fully delivered, will comprise 13 bulk carriers — five kamsarmax and eight panamax — along with two container ships.
20-December-2023
The international shipping community has responded positively to the announcement of a US-led naval coalition, Operation Prosperity Guardian, aimed at reducing tensions in the Red Sea. This initiative, involving 10 countries including the UK, France, and Canada, seeks to protect navigation in a region recently plagued by attacks, primarily by Iranian-backed Houthis targeting Israeli-affiliated ships. Despite the coalition’s formation, there remains a cautious atmosphere in the shipping industry, with many companies opting to divert their routes rather than navigate through the southern Red Sea. This hesitancy is evident as several large containerships, previously stranded between Houthi-controlled areas and the costly Suez Canal, have begun rerouting via the Mediterranean and the west coast of Africa to reach Asia, incurring additional tolls and extended travel times. The effectiveness and operational readiness of Operation Prosperity Guardian are still unclear. Shippers and shipowners have been advised that the disruptions in the Red Sea are likely to persist into the new year. The recent attack on the MT Swan Atlantic, a chemical tanker owned by Norwegian company Inventor Chemical Tankers, highlights the ongoing risk, even for ships without clear Israeli affiliations. The Red Sea is a critical maritime route, with the Suez Canal at its northern end facilitating about 10% of global seaborne trade volumes. Clarksons Research, a subsidiary of the world’s largest shipbroker Clarksons based in London, reports over 24,000 transits through the Suez Canal in 2023 alone, with bulk carriers, oil tankers, and containerships being the most common types of ships. The additional distance and time incurred by avoiding the Red Sea are substantial. For instance, diverting from Asia to North Europe via the Cape of Good Hope (COGH), instead of the Suez Canal, adds approximately 3,200 miles (or 30%) to the journey. This increases the travel time for a typical containership from 31 to 40 days at standard operating speeds, as noted by Clarksons Research. The shipping industry’s continued wariness suggests a wait-and-see approach regarding the new naval initiative’s impact on regional security and trade.
20-December-2023
Harim Group, in collaboration with a local private equity partner, has been chosen by state creditors to acquire a majority share in South Korean shipowner and operator Hyundai Merchant Marine (HMM). The Korea Development Bank and Korea Ocean Business Corp, two government institutions, are set to finalize a stock purchase agreement with Harim Group. The negotiations for this agreement and the completion of the deal are expected to occur in the first half of the next year, focusing on acquiring a 57.9% stake in Hyundai Merchant Marine (HMM). While Harim Group is predominantly known for its poultry business, it is not new to the shipping industry. Harim Group has previously expanded its business portfolio by acquiring Pan Ocean, which stands as one of South Korea’s largest bulk ship owners. This acquisition of Seoul-based shipowner and operator Hyundai Merchant Marine (HMM) represents a further significant investment by Harim Group in the maritime sector, illustrating its growing interest and presence in shipping beyond its core business areas.
20-December-2023
London-based Lomar Shipping, a prominent UK shipowner, is charting a course for expansion and new investments by appointing Peter Mellis as a senior adviser for corporate development. This strategic move signifies the company’s commitment to growth and business development. Peter Mellis, formerly the commercial director at V.Group, brings a wealth of experience to Lomar Shipping, particularly from his over 20 years in the US banking and private equity sectors. His expertise is expected to be instrumental in advancing Lomar Shipping’s investment strategies and fostering business growth. Lomar Shipping, which is a part of the Libra Group owned by the Logothetis family, has specifically tasked Mellis with enhancing its investment strategy and steering the company’s business development efforts. This appointment underscores Lomar Shipping’s focus on leveraging expert insights and experience to navigate the dynamic maritime industry and pursue new investment opportunities.
20-December-2023
Wind propulsion is increasingly being recognized as a crucial element in the shipping industry’s decarbonization efforts. In a significant development, Paris-based Louis-Dreyfus Armateurs (LDA) has chosen its chartered juice carrier, the MT Atlantic Orchard, for the installation of four innovative suction sails. These sails are developed by the Spanish engineering firm bound4blue. The MT Atlantic Orchard, a tanker built in 2014 and owned by Sweden’s Wisby Tankers, is scheduled to be retrofitted with four eSAILs in 2024. This upgrade is expected to reduce the vessel’s annual fuel consumption and CO2 emissions by at least 10%. The eSAIL system, designed by bound4blue, employs a thick aerodynamic profile and intelligent suction mechanisms to significantly boost propulsive efficiency. According to bound4blue, these sails can generate seven times more lift than an airplane wing. The decision to adopt bound4blue’s suction sails for the MT Atlantic Orchard was based on a comprehensive third-party assessment by Lloyd’s Register (LR). LR’s study evaluated various solutions and identified bound4blue’s suction sails as the most promising option. Bound4blue asserts that its sails are versatile and can be fitted on a wide range of vessels, including tankers, bulk carriers, roros, gas carriers, general cargo ships, cruisers, and ferries, irrespective of their size or age. The retrofit project for the MT Atlantic Orchard is partly financed by the European Innovation Council (EIC) Acceleration Program. Earlier in the year, Louis-Dreyfus Armateurs (LDA), along with LNG containment system leader GTT and the European Commission, among others, participated in bound4blue’s $17 million Series A funding round. This investment made these entities shareholders in the firm, further cementing the commitment to sustainable innovations in maritime transportation.
20-December-2023
Ocean Yield, a Norwegian sale-and-leaseback shipowner controlled by KKR, has recently undergone significant changes in its board of directors. According to an announcement in an Oslo Stock Exchange filing, the Norwegian maritime investor Ocean Yield will now operate with a reduced board comprising three directors. Chief Executive Officer Andreas Rode and Chief Financial Officer Eirik Eide have resigned from their positions on the board. However, they will continue to serve in their executive roles within the company. This reshuffle marks a strategic shift in Ocean Yield’s governance structure. In conjunction with these resignations, Norwegian maritime investor Ocean Yield has welcomed Rebecca Lund Nakkim as a new director. Nakkim is a managing associate at the Norwegian law firm BAHR, bringing legal expertise to the board. Rebecca Lund Nakkim’s appointment took effect from Wednesday, as stated in the Ocean Yield’s announcement. This restructuring of the board, particularly the addition of Rebecca Lund Nakkim, reflects Ocean Yield’s ongoing efforts to strengthen its governance and strategic capabilities, aligning with Ocean Yield’s broader objectives in the competitive maritime finance sector.
20-December-2023
Limassol-based alternative investment fund Pelagic Partners (Pelagic Yield Fund) is bolstering its investment in Golden Energy Offshore Services (GEOS), a company with backing from Oaktree Capital Management. Co-founded by Atef Abou Merhi, Pelagic Partners (Pelagic Yield Fund) recently made a significant move by purchasing additional shares in Golden Energy Offshore Services (GEOS). As detailed in a stock exchange filing, the Pelagic Investment Fund RAIF, closely linked to Abou Merhi, acquired an additional 6.12 million shares in Golden Energy Offshore Services (GEOS). This purchase, executed on Tuesday, was made at a price of $0.13 per share, amounting to a total investment of nearly $770,000. This strategic investment underscores Pelagic Partners’ growing interest and confidence in Golden Energy Offshore Services (GEOS), a Norway-based owner of platform supply vessels. By increasing its stake in Golden Energy Offshore Services (GEOS), Pelagic Partners (Pelagic Yield Fund) is not only diversifying its portfolio but also strengthening its position in the maritime industry, particularly in the offshore services sector. This move reflects the ongoing shifts and investment trends within the maritime and offshore energy markets.
20-December-2023
Athens-based New York-listed shipowner and operator Diana Shipping (DSX) offshot Performance Shipping (PSHG) is making a strategic move in its fleet expansion and renewal efforts. Aliki Paliou, the principal of Performance Shipping (PSHG), emphasized that this initiative is a key part of the company’s core strategy. Despite earlier speculations last month about a potential interest in ordering new bulk carriers, Performance Shipping (PSHG) has instead decided to focus on expanding its traditional tanker business. This decision was clarified on Wednesday when the Athens-based shipowner and operator Performance Shipping (PSHG) announced a significant investment in its tanker fleet. New York-listed shipowner and operator Performance Shipping (PSHG) has signed contracts for two LR2 product tankers, both of which are to be built in China. These tankers will be equipped with scrubbers and are LNG-ready, aligning with current environmental and efficiency standards. The total cost for these two vessels is $64.84 million, marking a substantial addition to Performance Shipping’s tanker fleet and reflecting its commitment to growing and modernizing its operations in the tanker segment.
20-December-2023
New York-listed shipowner and operator Safe Bulkers (SB) has finalized an agreement for an additional kamsarmax bulk carrier newbuilding, set for delivery in the Q1 2026 from a Japanese shipyard. This 82K DWT kamsarmax bulk carrier newbuilding, akin to several of Safe Bulkers’ other newbuildings, is designed in compliance with the IMO (International Maritime Organization) Phase 3 Energy Efficiency Design Index requirements and NOx-Tier III regulations. With this latest deal, Polys Hajioannou-led shipowner and operator Safe Bulkers (SB) has a total of eight new ships scheduled for delivery between 2024 and 2027, including two methanol dual-fuel vessels ordered in October. As part of its fleet renewal strategy, Safe Bulkers (SB) has recently arranged to sell two of its bulk carriers. This newly acquired bulk carrier, featuring a comparatively prompt delivery timeline, aligns with the Safe Bulkers’ ESG (Environmental, Social, and Governance) strategy and underscores its commitment to leading in environmental advancements. Currently, New York-listed shipowner and operator Safe Bulkers (SB) boasts a fleet of 46 bulk carriers, comprising 11 panamax bulk carriers, 9 kamsarmax bulk carriers, 18 post-panamax bulk carriers, and 8 capesize bulk carriers.
20-December-2023
Vega Bulk Carriers hires general manager for supramax from Eastern Bulk. Norwegian dry bulk operator Vega Bulk Carriers recruits Andreas Skajaa to lead supramax desk. Kenneth Fjeld director of Vega Bulk Carriers. Vega Bulk Carriers hired Andreas Skajaa as its new general manager for its supramax segment. Andreas Skajaa will strengthen the commercial team and build up the dedicated supramax desk, the Oslo-based company Vega Bulk Carriers said. Andreas Skajaa was head of chartering at Eastern Bulk Carriers.
20-December-2023
Athens-based Velos Dry Ltd, owned by Greek shipowner Paschalis Diamantides, is stepping up its presence in the bulk shipping market through a focused acquisition programme valued at more than $50 million, underlining a deliberate push to build scale and relevance in the dry bulk sector. Roughly a year after entering the bulk carrier arena, Paschalis Diamantides has materially increased his commitment to dry bulk through Velos Dry Ltd, accelerating fleet growth and signalling that the bulk carrier move is intended to be a core pillar rather than a small side venture. Velos Dry Ltd has recently been identified as the new owner of the 81K DWT kamsarmax bulk carrier now named MV Velos Star, previously MV Geneva Star, built in 2015, and the kamsarmax bulk carrier officially joined the Velos Dry Ltd fleet in December 2023 as one of the most notable additions to the platform. The transaction has been viewed as a defining marker of Velos Dry Ltd’s strategy: acquiring modern, commercially versatile bulk carriers that can trade across a wide range of routes and cargoes, while fitting into operating profiles increasingly shaped by efficiency requirements and emissions-related expectations. These recent purchases have effectively tripled the size of the Velos Dry Ltd dry cargo fleet, highlighting an ambitious build-out that aims to move Velos Dry Ltd from a new entrant status toward a more meaningful owner-operator footprint in the global dry bulk space. The approach suggests Velos Dry Ltd is prioritising ships that can deliver strong utilisation and reliable operating performance, allowing Velos Dry Ltd to compete for a broader mix of chartering opportunities while maintaining disciplined cost control. The expansion also reflects Paschalis Diamantides’ broader intent to grow a diversified maritime platform, with Velos Dry Ltd providing exposure to dry bulk commodity flows that can behave differently from tanker markets and thereby offer diversification across cycles. By adding modern and eco-friendly bulk carriers, Velos Dry Ltd is positioning itself to benefit from the market’s gradual preference shift toward more efficient tonnage, where fuel consumption, technical condition, and regulatory readiness can influence earning power and employment options. Velos Dry Ltd’s fleet build-up has been relatively discreet, yet the scale and timing indicate a structured strategy to capture opportunities in bulk carriers when pricing, availability, and forward fundamentals align. In combination, the acquisitions, the rapid fleet increase, and the emphasis on modern tonnage point to Velos Dry Ltd establishing itself as an emerging dry bulk player with clear growth ambitions and a developing operating platform anchored in Athens under Paschalis Diamantides.
20-December-2023
Eyal Ofer-led diversified shipowner and operator Zodiac Maritime is entering an ambitious phase by partnering with Lloyd’s Register (LR), HD Korea Shipbuilding & Offshore Engineering (HD KSOE), and KEPCO E&C to develop nuclear-propelled ship designs. This collaboration marks a significant step in the shipping industry’s exploration of nuclear energy as a potential marine fuel. The partnership, formalized through a memorandum of understanding signed at HD Hyundai Global R&D Center, will focus on designing nuclear-powered bulk carriers and containerships. HD KSOE and KEPCO E&C, renowned in shipbuilding and nuclear industries, aim to create a nuclear propulsion ship with a life cycle cost (LCA) significantly lower than that of carbon-neutral ships. Under this joint development project, HD Korea Shipbuilding & Offshore Engineering (HD KSOE) and KEPCO E&C will contribute their expertise in ship and reactor design. Meanwhile, Lloyd’s Register will oversee the safety operation standards and compliance with regulatory models. This collaboration will enable Zodiac Maritime to assess ship specifications and the implications of nuclear technology for maritime voyages. Zodiac Maritime, based in London, is known for its environmental commitment, reflected in its growing order book of dual-fuel ships. The company manages a diverse fleet of over 130 ships, with more than 20 newbuilding ship on order, predominantly LNG dual-fuel containerships and car carriers. This initiative is part of the broader shift in the shipping industry towards zero-carbon solutions. Nuclear technology presents a promising avenue, though it is still in the early stages of maritime application. This joint development project (JDP) with HD Korea Shipbuilding & Offshore Engineering (HD KSOE), KEPCO E&C, and Lloyd’s Register (LR) represents Zodiac Maritime’s commitment to advancing nuclear power technology in shipping. Globally, various nuclear shipping projects are underway. For instance, China’s Jiangnan Shipyard recently unveiled a container ship design featuring molten salt reactor technology. A survey by the International Chamber of Shipping (ICS) indicated that 9% of C-suite executives anticipate nuclear-powered ships within the next decade. Lloyd’s Register recognizes the significant potential of nuclear technology to facilitate the maritime energy transition and offer a sustainable, low- or zero-carbon fuel solution for the long term.
19-December-2023
Tokyo Stock Exchange-listed Japanese shipping giant MOL (Mitsui O.S.K. Lines) has commissioned the construction of five LNG-powered newcastlemax bulk carriers. The order is divided between Nihon Shipyard in Japan and CSSC Qingdao Beihai Shipbuilding in China. These carriers are scheduled for delivery between 2026 and 2027. With this addition, Japanese shipping giant MOL’s (Mitsui O.S.K. Lines) fleet will expand to include a total of 13 LNG-fueled capesize bulk carriers.
18-December-2023
As the European Union Emissions Trading Scheme (EU ETS) is set to include shipping starting from 1 January 2024, London-based the world’s biggest shipbroker Clarksons’ subsidiary Clarksons Research has analyzed the potential financial impact on various ship types. Under the European Union Emissions Trading Scheme (EU ETS), ships docking at EU ports will need to compensate for their CO2 emissions during the voyage by buying an equal number of EU Allowances (EUAs). Based on the average EUA price of $90 per tonne of CO2 and the shipping patterns of 2022. CEO Andi Case-led world’s largest shipbroker Clarksons’ subsidiary Clarksons Research’s data indicates significant costs for ships like VLCCs (Very Large Crude Carriers), MRs (Medium Range tankers), capesize bulk carriers, and panamax bulk carriers. For instance, a VLCC (Very Large Crude Carrier) journey from Ras Tanura to Rotterdam is projected to incur European Union Emissions Trading Scheme (EU ETS) costs of about $200,000 per voyage next year, which is roughly 4% of the current freight cost. By 2026, when the regulation is fully implemented at 100%, the cost for the same voyage could escalate to $0.5 million, accounting for 10% of the freight cost. This analysis highlights the growing financial implications of environmental regulations on the shipping industry.
18-December-2023
London-based the world’s biggest shipbroker Clarksons’ subsidiary Clarksons Research, led by Managing Director Stephen Gordon, has projected that the shipping industry’s costs related to the European Union’s carbon trading allowance could reach approximately $8 billion by 2026. Gordon emphasized that while this figure appears substantial, it should be considered in relation to the industry’s larger expenditures on fuel bunkers and new vessel construction. This significant financial impact comes as the “milestone” Emissions Trading System (ETS) begins to include ships starting from January 1.
18-December-2023
South Korean shipowner and operator Hyundai Merchant Marine (HMM) has joined other liner companies in halting its Red Sea trade routes following a series of assaults on merchant vessels in the region. In light of escalating geopolitical tensions in the Red Sea, HMM has chosen to navigate via South Africa’s Cape of Good Hope, bypassing the Suez Canal. This decision is likely to result in HMM discontinuing its visits to Saudi Arabia’s Jeddah Islamic Port on its Far East-India-Mediterranean (FIM) service route. Seoul-based shipowner and operator Hyundai Merchant Marine (HMM) is currently reassessing the Far East-India-Mediterranean (FIM) service’s sailing itinerary, including potential stops, especially Jeddah, should the company choose to reroute around the Cape of Good Hope. HMM is the second Asian liner to opt for this diversion. Previously, Orient Overseas Container Line (OOCL) announced an immediate suspension of cargo services to and from Israel due to operational challenges. On December 3, an OOCL-chartered vessel, the MV Number 9, was targeted by a Houthi drone strike. The Houthi faction, which dominates large areas of Yemen, began attacking commercial ships in the Red Sea last month as a response to Israel’s military actions in Gaza, which have reportedly resulted in over 18,000 casualties. Other shipping companies that have ceased operations through the Red Sea include AP Moller Maersk, Hapag Lloyd, MSC Mediterranean Shipping Company, and CMA CGM.
18-December-2023
The Panama Canal Authority (ACP) plans to increase the number of daily ship transits to 24 starting in January, a rise from the current limit of 22. This change comes after substantial rainfall in the past six weeks, which is a shift from the previous plan of allowing 20 transits in January and 18 in February. The current daily allowance includes six neopanamax and 16 panamax vessels. This limitation was initially due to the low water levels in Gatun Lake, a crucial part of the canal, caused by the El Niño-induced drought. The drought had forced the Panama Canal Authority (ACP) to reduce the maximum draft of the larger locks and cut daily transit numbers by nearly half, leading to a significant diversion of maritime traffic. Many ships chose longer routes, either around the capes or through the Suez Canal. However, the Suez Canal has recently faced its challenges with Houthis in Yemen targeting commercial sea traffic in the southern Red Sea.
18-December-2023
The United States is preparing to launch a security initiative, named Operation Prosperity Guardian, in response to the recent series of attacks in the Bab al-Mandeb Strait, primarily attributed to Houthi militants. This new coalition, aimed at safeguarding maritime shipping, is expected to be officially announced during the upcoming visit of US Secretary of Defense Lloyd Austin to Bahrain this week, as reported by various media sources.
18-December-2023
The captain of a Scorpio Tankers ship has reported an explosion near their vessel amid ongoing Red Sea hostilities. UK authorities are urging ships still navigating the area to be vigilant. Additional information about two more incidents linked to the Houthi rebels surfaced from the Red Sea on Monday. The United Kingdom Maritime Trade Operations (UKMTO) disclosed that it got a report earlier in the day near Bab-el-Mandeb, about 30 nautical miles south of Yemen’s Mokha port. The report, from an unidentified ship’s captain, described a potential explosion approximately two miles away from their ship.
16-December-2023
The shipping industry is currently facing significant challenges due to issues affecting its two most renowned canals. The Suez and Panama Canals are facing difficulties, one because of climate change and the other due to conflict. Major shipping companies like Maersk have suspended their vessels from navigating through the Red Sea following attacks by Yemen’s Houthi forces, who are involved in the conflict with Israel in the Gaza Strip. After recent incidents, including an attack on the MV Maersk Gibraltar and another container ship, Maersk has ordered its vessels to avoid the Bab al-Mandab Strait temporarily. Similarly, Hapag-Lloyd has halted its container ship operations in the Red Sea until Monday. There are rumors that the US is nearing the formation of an international coalition to safeguard merchant ships in the southern Red Sea, which has seen over 10 ship attacks in the last month by the Houthis. Concurrently, in the western hemisphere, the number of ships queuing for the Panama Canal, which is facing severe limitations due to drought, has significantly dropped. This has led to a substantial shift in shipping routes, with many vessels now opting for alternative, lengthier paths. This shift in shipping patterns is expected to have a considerable impact on the Suez Canal.
15-December-2023
In the past 24 hours, the Red Sea has witnessed increased maritime security threats, with two container ships attacked and one bulk carrier boarded. This escalation mirrors the violence observed during the peak of the Somali piracy crisis over a decade ago. In response to the deteriorating situation, the United States is expected to announce the formation of a special multinational task force to protect merchant shipping in the Red Sea. A significant incident involved the Hapag-Lloyd container ship MV Al Jasrah, which was hit by an aerial projectile while navigating the Bab Al Mandab Strait. The projectile struck the port side of the 14,500 TEU vessel, causing a container to fall overboard and a fire on deck. Shortly before this incident, the 11,500 TEU MV MSC Alanya had to perform evasive maneuvers near Yemeni waters. Another close incident was reported with the MV Maersk Gibraltar, a 10,000 TEU container ship. It narrowly escaped a missile attack near Yemen, marking one of several aggressive actions by the Houthi forces against merchant vessels in the region over the past month. Additionally, the MV Ruen, a 41K DWT bulk carrier owned by Bulgarian shipowner and operator Navibulgar (Navigation Maritime Bulgare), was boarded in an attack reminiscent of Somali pirate tactics. The crew retreated to the ship’s citadel and are currently safe, but the situation remains unresolved. Somali pirates have recently escalated their activities, targeting smaller ships with the intent of hijacking larger vessels and potentially holding crew for ransom. Moreover, Houthi forces have been actively targeting ships through VHF Channel 16, directing them towards Yemeni waters. These increasing attacks could lead to changes in trade routes, a rise in the formation of convoys for protection, and potentially higher insurance premiums for maritime operators.
15-December-2023
BIMCO (Baltic and International Maritime Council), the world’s largest international shipping association, together with major mining companies Anglo American, BHP, Rio Tinto, and Vale, have released a position paper advocating for the rapid adoption of digital technologies in the metals and mining supply chain. The paper is a collaborative effort from the Metals and Mining Digitalization Forum (MMDF), a working group formed by the four mining giants and supported by BIMCO (Baltic and International Maritime Council). This initiative aims to involve all stakeholders in the digitalization of trade, including solution providers and legislators, to overcome barriers to a digital future. The International Chamber of Commerce (ICC) reports that around 4 billion trade documents are currently in circulation, highlighting the environmental impact of paper-based trade processes. Shifting to paperless trade can significantly reduce the carbon footprint associated with trade documentation. Trade transactions in the metals and mining sector can be document-intensive, involving up to 40 different documents for a single transaction. A case study by digital trade platform MineHub illustrates the complexity of these transactions, involving multiple teams, logistics providers, and hundreds of documents.
14-December-2023
Burak Akdemir, the managing director of Range Shipping, expressed a characteristically optimistic outlook for the shipping industry. Burak Akdemir highlighted that in the current climate of global unpredictability, the shipping sector relies heavily on a forward-looking and optimistic mindset, coupled with agile decision-making. Range Shipping, established in 2017 and based in London, specializes in handymax and ultramax bulk carriers. Range Shipping is expecting healthier market conditions by the Q3 2024, bolstered by factors like China’s economic recovery, fluctuating interest rates, and a low orderbook at present. One of the key topics at the upcoming Geneva Dry event in May is the ever-changing regulatory landscape within the shipping industry. Akdemir emphasizes the importance of adaptability, not just for compliance but also for incorporating long-term changes in corporate culture and management practices.
14-December-2023
EGPN Bulk Carrier Co Ltd, a Chinese shipowning firm, is returning to its origins in the bulk shipping sector by acquiring three capesize vessels, taking advantage of the current stable and robust spot rates. Having invested approximately $320 million earlier in the year on a series of new chemical tankers, EGPN Bulk Carrier Co Ltd is now expanding its capesize bulk carrier fleet to four vessels. The company has purchased three capesize bulk carriers, built between 2010 and 2011 by New Times Shipbuilding, from Bocimar for around $59 million. These sister ships – MV Mineral Destelbergen, MV Mineral Temse, and MV Mineral Brugge – each have a capacity of 175K DWT. EGPN Bulk Carrier Co Ltd, which began as a shipowner in 2017 with a focus on bulk carriers, expanded into the tanker market two years later.
13-December-2023
Tor Olav Troim-backed Oslo and NYSE-listed Himalaya Shipping recently undertook a private placement to secure funding for its newcastlemax bulker newbuildings, successfully raising $17.5 million. The New York and Oslo-listed Himalaya Shipping announced that it issued 3.1 million new shares priced at $5.60 each. This pricing was slightly below the trading price of $5.79 observed on Wednesday morning. The private placement, targeted at both Norwegian and international investors, received an enthusiastic response and was significantly oversubscribed. This strong interest reflects investor confidence in Himalaya Shipping’s growth and expansion plans, particularly in its newcastlemax bulk carriers, which represent a significant segment of the shipping industry. The successful fundraising marks a notable milestone for Himalaya Shipping in its strategic development.
13-December-2023
Borealis Maritime Limited, a London-based firm, has strengthened its investment team by recruiting Peter Wessel-Aas from Fearnley Securities. Wessel-Aas, an experienced investment banker, will serve as an investment manager at Borealis Maritime’s office in Abu Dhabi, United Arab Emirates. This hire signifies Borealis Maritime’s commitment to enhancing its market presence, particularly in the Asian and Middle Eastern regions. The company expressed enthusiasm about adding such a strong candidate to its team, indicating a strategic move to bolster its coverage and expertise in these key markets. Norway-headquartered shipbroker Fearnleys’ subsidiary Fearnley Securities, where Wessel-Aas previously worked, is known for providing advisory and transaction services to companies in the shipping, offshore, and energy sectors, both public and private. Their Investment Banking Division specializes in a range of services including Equity and Debt Capital Market transactions, mergers and acquisitions, as well as restructuring and recapitalizations. Fearnley Securities leverages its extensive maritime expertise and global placing power to develop innovative solutions for its clients, helping them capitalize on market opportunities and execute their corporate strategies effectively. Wessel-Aas’s move to Borealis Maritime Limited is a significant development, reflecting the ongoing dynamic shifts within the maritime investment sector and the importance of regional expertise in fostering business growth and market expansion.
13-December-2023
Fujian Guohang Ocean Shipping Group Co Ltd, a shipowner and operator listed on the Beijing Stock Exchange, has announced a significant order for up to 10 methanol-ready kamsarmax bulk carriers. This move represents a substantial step forward in the adoption of more environmentally friendly and efficient shipping technologies. In their regulatory filing,Fujian Guohang Ocean Shipping Group Co Ltd revealed that they have confirmed contracts for four firm 89K DWT bulk carriers with China’s Wuhu Shipyard. These methanol-ready vessels are designed to reduce fuel consumption while also having the capability to carry more cargo, indicating a strategic move towards more sustainable and economically efficient operations. The choice of methanol-ready ships underscores the Fujian Guohang Ocean Shipping Group Co Ltd’s commitment to aligning with global environmental standards and preparing for future shifts in fuel technology. This order of bulk carriers is a clear indication of Fujian Guohang Ocean Shipping Group Co Ltd’s dedication to modernizing its fleet and enhancing its competitive edge in the global shipping industry.
13-December-2023
Lomar Shipping, a UK-based diversified shipowner and a subsidiary of the Libra Group, is entering into a collaborative partnership with the Hamburg start-up Turtle, a seafarer recruitment platform. This initiative represents a significant move to streamline and enhance the efficiency of the seafarer recruitment process. The collaboration will leverage Turtle’s innovative job-seeking platform, which was established in 2022 by its CEO, Isabelle Rickmers. Based in Hamburg, Turtle aims to address and rectify inefficiencies commonly found in the recruitment of maritime professionals. Lomar Shipping, headquartered in London, brings its extensive experience and expertise in the shipping industry to this partnership. The company’s corporate venture lab, lomarlabs, will play an instrumental role in this collaboration, signifying Lomar Shipping’s commitment to adopting and promoting technological advancements in the maritime sector. This collaboration marks a significant step towards modernizing seafarer recruitment practices, with both Lomar Shipping and Turtle aiming to create a more efficient, effective, and streamlined process for connecting maritime professionals with opportunities in the shipping industry.
13-December-2023
The Suez Canal Authority (SCA) has strategically introduced significant rebates for tankers and container ships on certain long-distance routes, in an effort to attract more maritime traffic and compete with its rival, the Panama Canal. This move comes in light of a 15% toll hike set to be implemented soon by the SCA. A key element of these new incentives is a substantial 75% discount offered to product tanker voyages traveling between the Americas and Asia. This substantial discount is specifically aimed at mitigating the impact of the upcoming toll increase and making the Suez Canal a more attractive option for these long-haul routes. The decision to offer these higher rebates appears to be a direct response to the challenges faced by the Panama Canal, which has been dealing with issues related to drought. By providing such attractive discounts, the Suez Canal is positioning itself as a more viable and cost-effective route for maritime traffic between these significant trading regions. This strategy reflects the SCA’s efforts to leverage its geographical and economic advantages in the highly competitive global shipping industry, where canal routes play a critical role in determining shipping costs and efficiency.
13-December-2023
The recent acquisition of New York Stock Exchange (NYSE) listed Connecticut-based shipowner and operator Eagle Bulk Shipping (EGLE) by Athens-based New York-listed shipowner and operator Star Bulk Carriers (SBLK), a Greek shipping company, marks a significant milestone in its expansion strategy. This acquisition, valued at approximately $500 million, is not only the largest for Star Bulk Carriers since 2014 but also a pivotal moment in its nearly decade-long series of consolidation efforts. The deal involves the Connecticut-based Eagle Bulk Shipping’s fleet of 52 supramax and ultramax bulk carriers. This latest acquisition underscores the strategic role of Star Bulk Carriers’ stock in facilitating its growth ambitions. The company has consistently used its stock as a financial backbone to support its acquisitions, a strategy that has been employed in all of its 10 major acquisition moves. These acquisitions have ranged from the purchase of a few ships to entire fleets or companies. The successful acquisition of Eagle Bulk Shipping is a clear demonstration of Star Bulk Carriers’ commitment to becoming a solidly mid-cap entity in the maritime industry, further cementing its position through strategic and substantial consolidation.
12-December-2023
Singapore based shipowner and operator Azure Maritime Pt Ltd’s vessel MV Blue Cecil encountered a tragic incident while at sea, requiring urgent medical assistance from the Philippines Coast Guard. The 32,600-dwt handysize bulker, built in 2004, was off the Philippines when three of its crew members were found unconscious after entering a hold. Despite the captain’s request for medical help on Friday evening and the immediate response from other crew members, the three seafarers were later declared dead by the ship’s duty doctor. The incident took place near Bolinao in the northeastern Pangasinan province, with the Marshall Islands-flagged MV Blue Cecil being approximately 149 nautical miles (275 km) from shore, heading towards Singapore. At the time, the ship was en route from Portland in the US, having departed on November 13. Opal Ship Management, responsible for managing the vessel, expressed deep sorrow over the loss of the crew members. They have since been in continuous communication with the families of the deceased. The company’s emergency response team had quickly initiated rescue procedures to recover the affected crew. Additionally, it was noted that the Singapore based shipowner and operator Azure Maritime Pt Ltd’s vessel MV Blue Cecil ’s insurance is provided by the UK P&I Club.
12-December-2023
Limassol-based shipowner and operator Castor Maritime (CTRM) is expanding its bulk carrier sale efforts, recently parting with its sole capesize bulk carrier. This move aligns with the current trend where the secondhand market for larger bulk carriers is gaining momentum, reflecting positively on freight rates. Previously known for acquiring numerous bulk carriers, Petros Panagiotidis-led shipowner Castor Maritime (CTRM) has shifted its strategy to become more focused on selling. Nasdaq-listed shipowner and operator Castor Maritime (CTRM) is reported to have sold the 2006 built capesize bulk carrier 180K DWT MV Magic Orion to undisclosed buyers. The sale price for this capesize bulk carrier is said to be around $17.8 million, a decision made in the context of an increasingly favorable market for sellers of such ships.
12-December-2023
Copenhagen-based shipowner and operator Clipper Group subsidiary Clipper Bulk has successfully completed the sale of a handy bulk carrier to ZBB Bulkers, a relatively unknown entity in the shipowning sector based in Turkey. ZBB Bulkers, which is still establishing its presence in the industry, operates out of Istanbul. ZBB Bulkers’ website is currently under development, and some of its employees have been on board for just over a year. Istanbul-based shipowner and operator ZBB Bulkers has acquired 2010 built handysize bulk carrier 37K DWT MV ZBB Serenity (ex MV Clipper Cosmo), built by Huatai Heavy, for a sum just shy of $11 million. 2010 built handysize bulk carrier 37K DWT MV ZBB Serenity (ex MV Clipper Cosmo) has already been transferred to its new shipowners ZBB Bulkers. This transaction marks the second vessel sale by Copenhagen-based shipowner and operator Clipper Group subsidiary Clipper Bulk this year. In addition to selling, Clipper Bulk has also been active in acquisitions, having purchased an ultramax from Marine Capital, a UK-based marine asset management firm. This vessel, the 2014 built ultramax bulk carrier 63K DWT MV Cape Cross, was constructed at Yangzhou Dayang Shipbuilding. Following this latest sale, Clipper Bulk’s fleet in this segment now comprises five (5) bulk carriers, all of which are Chinese-built and have an average age of 12 years.
12-December-2023
New York Stock Exchange (NYSE) listed Connecticut-based shipowner and operator Eagle Bulk Shipping (EGLE) owned bulk carrier, the MV Gibraltar Eagle, was hit by a missile in the Gulf of Aden, as reported by the United Kingdom Maritime Trade Operations (UKMTO) and maritime security firm Ambrey. The incident took place approximately 95 nautical miles southeast of Aden, Yemen. The US Central Command identified the vessel as the Marshall Islands-flagged MV Gibraltar Eagle, which was traveling westbound in the International Recommended Transit Corridor (IRTC) towards the Suez Canal at the time of the attack. United Kingdom Maritime Trade Operations (UKMTO) has confirmed that there were no injuries or significant damage to the ship, a 2015-built ultramax bulk carrier MV Gibraltar Eagle. MV Gibraltar Eagle, with a 64K DWT, is proceeding to its next destination. Ambrey reported that the MV Gibraltar Eagle was struck in its fifth hold, noting that the Houthis launched a total of three missiles, with two failing to reach the sea and one hitting the bulk carrier. Ambrey’s analysis suggests the attack was a response to US military strikes on Houthi military positions in Yemen, targeting US interests. Following recent military advice to avoid the southern Red Sea and the Bab el-Mandeb Strait due to US and UK strikes on Houthi militants, the MV Gibraltar Eagle entered the Gulf of Aden. Gary Vogel-led Eagle Bulk Shipping (EGLE) confirmed in a Monday statement that the MV Gibraltar Eagle was struck by an unidentified projectile about 100 miles (161 km) offshore in the Gulf of Aden. The impact caused limited damage to one of the cargo holds, but the ship remains stable and is moving out of the area. All crew members on board are safe and uninjured. The MV Gibraltar Eagle was transporting steel products at the time of the incident. Eagle Bulk Shipping (EGLE) has stated that it is in close communication with the relevant authorities regarding this situation. 16-Jamuary-2023
Shares of New York Stock Exchange (NYSE) listed Connecticut-based shipowner and operator Eagle Bulk Shipping (EGLE) surged by 11% as the market responded to its acquisition by Star Bulk Carriers (SBLK), a Greek company. Eagle Bulk Shipping’s (EGLE) stock value approached the deal price and its net asset value, showing improvement after underperforming in 2023. Eagle Bulk Shipping’s stock price exceeded $51 in the early trading hours on Tuesday on the New York Stock Exchange, following the announcement of the all-stock acquisition. This increase of over 11% aligned with expectations, as investors adjusted the share value closer to the acquisition price of $52.60.
12-December-2023
Star Bulk Carriers (SBLK), a prominent shipowner and operator listed in New York and based in Athens, has successfully finalized an all-stock acquisition of Eagle Bulk Shipping (EGLE), also listed on the New York Stock Exchange and headquartered in Connecticut, for $500 million. This merger brings together two major New York-listed shipping entities under the leadership of Petros Pappas from Star Bulk Carriers. The resulting organization, maintaining the Star Bulk Carriers name, commands a fleet of 169 bulk carriers and boasts a market capitalization of around $2.1 billion. The exact valuation of Eagle Bulk Shipping in this deal is not precisely known, but it’s estimated that the transaction involves around $500 million in Star Bulk Carriers’ stock. The agreement between Star Bulk Carriers and Eagle Bulk Shipping signifies a significant merger in the bulk shipping sector, creating the largest dry bulk shipping company listed in the US. This merger received unanimous board approval from both companies and is an all-stock transaction. Under the terms of the deal, Eagle Bulk Shipping shareholders are set to receive 2.6211 shares of Star Bulk Carriers for each Eagle share, equating to an approximate value of $52.60 per share, which is a 17% premium over Eagle’s closing share price on December 8. Following the merger’s completion, expected in the first half of 2024, Star Bulk and Eagle Bulk shareholders will own about 71% and 29% of the new entity, respectively. The combined company will be headquartered in Athens, with additional offices in Stamford, Singapore, Copenhagen, and Limassol. The leadership team will include Petros Pappas as CEO and Spyros Capralos as chairman from Star Bulk Carriers, along with key executives from Eagle Bulk Shipping. The fleet of Star Bulk Carriers includes a range of 117 vessels, from newcastlemax to supramax carriers, while Eagle Bulk Shipping brings a fleet of 52 supramax and ultramax carriers. The majority of the merged fleet will be equipped with scrubber technology. The new Star Bulk Carriers Corp. is projected to have nearly $420 million in liquidity. Both companies expect to achieve at least $50 million in yearly cost and revenue synergies within 12 to 18 months after the merger, thanks to integrated operations and scale efficiencies. CEO Petros Pappas of Star Bulk Carriers has expressed enthusiasm about the merger, highlighting the creation of a global dry bulk shipping leader with a diverse and large fleet, focusing on performance, environmental goals, and maximizing earnings. Gary Vogel, CEO of Eagle Bulk Shipping, also voiced optimism about the merger’s potential, noting the substantial value and long-term advantages it promises for Eagle Bulk Shipping’s shareholders.
12-December-2023
Hong Kong-based Bermuda-registered Jinhui Shipping and Transportation Limited has entered into a substantial long-term agreement with Taiwanese shipowner First Steamship for a kamsarmax bulk carrier built in 2021. The ship, named MV Ever Shining, will be chartered by Jinhui Shipping and Transportation’s subsidiary, Goldbeam Shipping, for up to two years. The Oslo- and Hong Kong-listed company will start chartering the 81K DWT, Liberia-flagged vessel in December for at least 22 months, in a contract valued at approximately $8.5 million. The arrangement, which includes the option to extend for two more months, is set at a daily rate of $14,250 for the first year and $14,750 for the remaining period. This long-term charter, at a relatively fixed hire rate, is strategically beneficial for JHong Kong-based Bermuda-registered Jinhui Shipping and Transportation Limited, as it allows the company to avoid the fluctuations and uncertainties of inflation and other costs associated with purchasing a kamsarmax bulk carrier outright. As of September 30, Jinhui Shipping and Transportation’s fleet consisted of 25 supramax and ultramax bulk carriers, including 24 owned bulk carriers and one chartered bulk carrier.
12-December-2023
An increase in spot rates has led shipowners to refrain from scrapping old bulk carriers, affecting the demolition market. Indian ship recyclers, now facing a scarcity of bulkers and tankers, are turning to smaller container ships. The dry bulk sector’s rising rates have disrupted expectations for a significant boost in ship recycling activities in the Indian subcontinent towards the year’s end. While bulker owners were considering the disposal of older vessels at November’s close, they have now shifted focus to capitalize on the burgeoning spot rates. In a remarkable one-month span, daily spot rates for capesize vessels have tripled, reaching highs not observed since October 2021, and this surge has positively impacted other dry bulk carriers as well.
12-December-2023
Athens-based New York-listed shipowner and operator Star Bulk Carriers (SBLK) has completed a $500 million all-stock acquisition of New York Stock Exchange (NYSE) listed Connecticut-based shipowner and operator Eagle Bulk Shipping (EGLE). The merger, involving two New York-listed shipowners, positions Petros Pappas of Star Bulk Carriers (SBLK) at the helm of the enlarged entity. This Athens-based shipowner and operator Star Bulk Carriers (SBLK) now oversees a combined fleet of 169 bulk carriers, with the company’s market value estimated at approximately $2.1 billion. Although the precise valuation of Eagle Bulk Shipping (EGLE) in this transaction remains unclear, it’s believed that Star Bulk Carriers’ (SBLK) payment is around $500 million in stock value. Two major players in the bulk shipping industry, Greece’s Star Bulk Carriers (SBLK) and the US’s Eagle Bulk Shipping (EGLE), have agreed to merge, creating the largest US-listed dry bulk shipping firm. The merger, which involves 169 bulk carriers, has been unanimously approved by both companies’ boards and is structured as an all-stock deal, valuing the combined entity at $2.1 billion. Eagle Bulk Shipping (EGLE) shareholders will receive 2.6211 Star Bulk Carriers (SBLK) shares for each of their shares, amounting to a value of about $52.60 per share, a 17% premium over Eagle Bulk Shipping’s (EGLE) December 8 closing price. Post-merger, Star Bulk Carriers (SBLK) and Eagle Bulk Shipping (EGLE) shareholders will own approximately 71% and 29% of the new company, respectively. The transaction is expected to be finalized in the first half of 2024. The merged entity, retaining the Star Bulk Carriers Corp. name, will be based in Athens, with additional offices in Stamford, Singapore, Copenhagen, and Limassol. It will be led by Petros Pappas of Star Bulk Carriers (SBLK), with key Eagle Bulk Shipping (EGLE) executives joining the team. Spyros Capralos of Star Bulk Carriers (SBLK) will be the chairman, and a member of Eagle Bulk Shipping’s board will also join. Star Bulk Carriers (SBLK) currently operates a diverse fleet of 117 bulk carriers, ranging from newcastlemax to supramax bulk carriers, while Eagle Bulk Shipping (EGLE) has a substantial fleet of 52 supramax and ultramax bulk carriers. The majority of the combined fleet will feature scrubber technology. The new company Star Bulk Carriers Corp. is expected to have a liquidity pool of nearly $420 million. The partners anticipate at least $50 million in annual cost and revenue synergies within 12 to 18 months post-merger, through integrated operations and economies of scale. Star Bulk Carriers (SBLK) CEO Petros Pappas commented on the merger, emphasizing the creation of a global leader in dry bulk shipping with a large, diversified fleet. Petros Pappas highlighted the focus on performance optimization, safety, environmental goals, and maximizing earnings. Eagle Bulk Shipping (EGLE) CEO Gary Vogel also expressed confidence in the merger, noting the significant value and long-term benefits it will bring to Eagle Bulk Shipping’s (EGLE) shareholders.
11-December-2023
Capesize bulk carrier rates have fluctuated dramatically in December, dropping by $20,000 from a peak of $55,000 just last week. Despite these volatile spot market changes, capesize bulk carrier transactions have remained steady. This is partly because many of these vessels are scheduled for delivery to their new owners in the first quarter, a period typically characterized by a weaker market. The most notable transaction last week involved the scrubber-equipped 2017-built Capesize bulk carrier MV Herun China, with a capacity of 181K DWT. This vessel, sold by Herun China Shipping, was reportedly linked to UK-based Union Maritime. The sale price for the Shanghai Waigaoqiao Shipbuilding-constructed MV Herun China was about $42 million, and it includes a time charter. Greek shipowners have also been active in the market, with several sales reported. For example, Athens-based Kassian Maritime, managed by the Papadakis family, is reducing its capesize fleet to just one vessel. Recently, Kassian Maritime sold its 177K DWT MV Mothership, built in 2006 at Mitsui Ichihara, to Chinese buyers for $17.3 million. This sale follows Kassian Maritime’s transaction in November 2023, when it sold a 2007-built sister ship to UAE-based Turkish company Densay Shipping.
9-December-2023
Capesize bulk carrier market recently experienced a significant surge, with rates climbing above $50,000 per day, followed by a rapid decline. John Michael Radziwill, who leads the dry bulk pool C Transport Maritime and GoodBulk, an ownership entity that has recently sold off its entire fleet, remains optimistic about the prospects for dry bulk owners in 2024. He bases his positive outlook on several factors, including advantageous fleet dynamics, anticipated strong grain volumes in the Atlantic, and the introduction of new environmental regulations in shipping. These regulations are expected to impact trade patterns and result in slower ship speeds. Radziwill, however, expresses some reservations, particularly regarding China’s market capacity. He questions whether China can continue to absorb commodities at the same or higher levels as before, citing concerns about the Chinese steel market and global economic challenges posed by inflation and high interest rates.
9-December-2023
Norwegian shipowner and operator Torvald Klaveness’s subsidiary Klaveness Combination Carriers (KCC) CEO Ernst Meyer emphasized the necessity of taxation in the shipping industry to achieve net zero emissions during the annual Klaveness Forum in London. CEO Ernst Meyer pointed out that regulation alone would be insufficient, especially given the current scarcity of green fuels. Torvald Klaveness’s subsidiary Klaveness Combination Carriers (KCC) CEO Ernst Meyer highlighted that the shipping industry had largely overlooked CO2 emissions until recently, which has led to a sudden and urgent need to accelerate efforts towards sustainability. Klaveness Combination Carriers (KCC believes that implementing a tax on carbon-based fuels is the most effective way to drive the necessary change towards achieving net zero in shipping.
9-December-2023
At the Marintec exhibition in Shanghai, China Shipbuilding unveiled the design of its inaugural methanol-powered ultramax bulk carrier. The pioneering design, developed by Limassol-based Lemissoler Navigation, has received the American Bureau of Shipping’s (ABS) preliminary nod. This 65K DWT ultramax vessel, touted as the first for China’s shipbuilding industry, is a collaborative effort between Lemissoler Navigation and the Shanghai Merchant Ship Design & Research Institute (SDARI). It marks a significant stride in exploring methanol as a sustainable fuel alternative to curb carbon emissions in shipping. The carrier’s design, optimized for energy efficiency, surpasses Phase 3 standards of the Energy Efficiency Design Index (EEDI). This development underscores methanol’s potential in reducing maritime emissions and positions Lemissoler Navigation at the forefront of China’s shipbuilding decarbonization efforts. Established in 1996 in Limassol and led by Philippos Philis, Lemissoler Navigation boasts a modern fleet of 12 eco-friendly supramax and ultramax carriers. The new 65K DWT methanol-powered design signals a potential expansion of their fleet, the first since 2017, and highlights their commitment to innovative and environmentally-friendly shipping solutions. This collaborative venture with SDARI and ABS exemplifies the significant advancements achievable through joint efforts. Lemissoler Navigation, aiming for net-zero emissions by 2045, continues to be a trailblazer in the industry. Until now, Japanese shipyard Tsuneishi Shipbuilding Co. Ltd. has been a key player in constructing methanol-fuelled carriers. Their first methanol dual-fuel ultramax bulk carrier order, slated for delivery in 2025, was placed earlier in February.
9-December-2023
Istanbul-based Akmar Shipping, a prominent shipowner and operator, has recently reinforced its partnership with Chinese shipyard Dalian Cosco KHI Ship Engineering (Dacks) by securing contracts for three additional ultramax bulk carriers. This new deal effectively doubles the number of ultramax vessels that Akmar Shipping has commissioned from Dacks, underscoring the strong relationship between the two entities. The latest vessel delivered to Akmar Shipping by Dacks is the 61K DWT MV Leyla Aksoy, built in 2022. This delivery marks the continuation of a successful collaboration between the Turkish shipowner and the Chinese shipyard. Akmar Shipping, controlled by the Aksoy family, has emerged with a significant ultramax newbuilding program at Dalian Cosco KHI Ship Engineering (Dacks). This new order for three ultramax bulk carriers follows the previous successful deliveries by the shipyard, reflecting Akmar Shipping’s confidence in Dacks’ capabilities and the quality of its vessels. Dalian Cosco KHI Ship Engineering (Dacks) represents a joint venture between China’s Cosco Shipping and Japan’s Kawasaki Heavy Industries. The shipyard’s partnership with Akmar Shipping demonstrates its strong position in the global shipbuilding industry and its ability to cater to international clients. This latest agreement not only strengthens the bond between Akmar Shipping and Dacks but also highlights the increasing demand for ultramax bulk carriers in the global maritime sector.
9-December-2023
Alan Cumming, the Head of Dry Freight Shipping at commodity trading and ship chartering giant Trafigura Maritime Logistics Pte Ltd, anticipates ongoing congestion in bulker markets. Trafigura Maritime Logistics Pte Ltd foresees potential disruptions at the Panama Canal, possibly extending over a year, impacting dry shipping operations. Trafigura Maritime Logistics, a prominent shipowner and trader, expects this continued congestion to positively influence the bulker markets for the foreseeable future. In the Trafigura Maritime Logistics Pte Ltd’s annual report, Alan Cumming noted an improvement in cargo movement demand during the second half of the financial year ending September 30, 2023. This increase in demand was reflected in rising freight rates, bolstered by strong global iron ore shipments, significant coal exports from Indonesia, and a large soybean harvest in Brazil. Trafigura Maritime Logistics Pte. Ltd. specializes in providing shipping and freight services on a global scale. shipments, significant coal exports from Indonesia, and a large soybean harvest in Brazil. Trafigura Maritime Logistics Pte. Ltd.’s primary focus is on facilitating freight for traders of oil, metals, and minerals. Their range of services includes issuing voyage orders, preparing stowage plans, negotiating with port agents, and managing demurrage claims. Through these services, Trafigura Maritime Logistics caters to the needs of a diverse customer base around the world, playing a key role in the logistics and transportation aspects of international trade.
8-December-2023
Teck Resources, a Canadian mining company, and Oldendorff Carriers, a prominent German dry bulk shipping firm, have announced a collaborative project to equip the 2020-built post-panamax bulk carrier MV Dietrich Oldendorff, with a capacity of 100K DWT, with Flettner rotors. This initiative, part of their efforts to embrace cleaner energy sources, is set for completion by mid-next year. The integration of these rotors, along with other emissions-reducing measures, is anticipated to cut emissions by 55%, translating to an annual CO2 reduction exceeding 17,000 tonnes. This development marks a significant step in reducing the carbon footprint of Teck’s supply chain and promotes the creation of eco-friendly transportation routes. Oldendorff Carriers has expressed its readiness to make joint investments crucial for this energy transition, highlighting that historical weather data supports the Pacific Northwest to Asia route as highly effective for harnessing wind energy. The rotors, produced by Norsepower, notably incorporate recycled materials from about 342,000 plastic bottles. Additionally, Teck Resources and Oldendorff Carriers are experimenting with biofuel on another bulk carrier to further decrease emissions.
8-December-2023
The United States is currently engaging in talks with its allies about forming a naval alliance to safeguard merchant vessels in the Red Sea, a response to the recent disruptions caused by Houthi militants. These disruptions include attacks on commercial ships and the hijacking of a car carrier along with its 25 crew members, who are currently stranded in Yemen. Additionally, the US Treasury Department has announced sanctions aimed at cutting off financial support to the Houthis. These sanctions target a network allegedly backed by Iran, accused of channeling millions of dollars from Iranian commodity sales to the Yemeni rebel group. The Treasury has identified 13 individuals and entities as part of this scheme, aiming to halt the flow of funds to the Houthis responsible for the maritime disturbances.
7-December-2023
Keeping a close eye on the secondhand market and swiftly finalizing transactions just before a spike in earnings has been pivotal to Lila Global’s remarkable growth. Recently, Dubai-based shipowner and operator Lila Global acquired the 2004 Daewoo-built capesize bulk carrier MV Lila Chios (ex MV Maran Innovation), with a capacity of 171K DWT, for around $13.5 million from Athens-based shipowner and operator Maran Dry Management. The purchase occurred a few weeks ago. MV Lila Chios (ex MV Maran Innovation) is set to enter a freight market that has recently surpassed the $50,000 per day mark. In just a month, daily earnings for capesize bulk carriers have soared to levels not seen since October 2021, more than tripling in value. This acquisition marks Lila Global’s, fifth capesize purchase in 2023 and further cements its position in the United Arab Emirates shipping sector. The deal is considered substantial given the abundance of Chinese-built bulk carriersavailable for sale. Lila Global’s, the ship owning subsidiary of the world’s largest cash buyer of end-of-life ships, GMS, strategy this year has involved adding approximately one bulk carrier per month, with a focus on older ships. Dubai-based shipowner and operator Lila Global’s fleet, consisting of 40 ships, is estimated to be worth around $500 million.
7-December-2023
Shandong Shipping has entered into an agreement with Qingdao Beihai Shipbuilding to construct four 325,000 dwt methanol dual-fuel very large ore carriers (VLOCs). These colossal carriers, measuring 340 meters in length, will be employed to transport iron ore from Brazil for Vale. Innovatively designed in China, these bulk carriers are equipped with wind rotors and facilities for high-voltage shore power connection. Notably, this new generation of methanol dual-fuel VLOCs boasts a shallower draft compared to existing models while retaining the same cargo capacity, thereby improving their compatibility with various ports. Beihai Shipbuilding, located in northeastern China, has recently solidified its reputation as the leading builder of newcastlemax bulk carriers and very large ore carriers (VLOCs) globally.
6-December-2023
Today, the Busan Regional Maritime Safety Tribunal found Polaris Shipping at fault for insufficient maintenance, leading to the sinking of the MV Stellar Daisy. This converted ore carrier sank in the Atlantic near Uruguay in March 2017, resulting in 22 fatalities. The 1993-built MV Stellar Daisy, a highly publicized maritime disaster of this century, has been at the center of numerous legal challenges by the families of the deceased to determine the cause of its rapid capsizing and sinking. Only two of the 24 crew members survived. The tribunal revealed that one of the globe’s leading operators of large bulk carriers, South Korean shipowner and operator Polaris Shipping Co. Ltd. installed an unauthorized wastewater storage unit on the ship’s bottom and failed to inspect or reinforce the hull. Despite the need for repairs to safely carry cargo, Busan-based shipowner and operator Polaris Shipping Co. Ltd. allowed the MV Stellar Daisy to embark without the necessary reinforcements. The Marshall Islands, under whose flag the ship sailed, attributed the disaster in their April 2019 report to a catastrophic structural failure of the hull. Originally a Very Large Crude Carrier (VLCC) converted into an Ore Carrier, the MV Stellar Daisy took on water and split in two rapidly. Following this incident, another 1993-built converted ore carrier of Polaris Shipping Co. Ltd. was diverted to Cape Town for repairs due to a hull crack, leading the company to conduct urgent inspections across its fleet. This resulted in a 1992-built converted carrier also being sent to Cape Town for repairs, and eventually, all of Polaris Shipping Co. Ltd.’s older converted vessels were sold. The conversions of VLCCs to Very Large Ore Carriers (VLOCs) were driven by the dry bulk supercycle and IMO regulations mandating the phasing out of single-hull tankers by 2010. This created an opportunity for investors to repurpose cheap, obsolete tankers into VLOCs for long-term contracts, often lasting 10 years. In 2021, the CEO of Polaris Shipping Co. Ltd. was sentenced by an appellate court to six months in prison for violating the Ship Safety Act and is awaiting the final verdict from the Supreme Court. In 2022, seven individuals, including the CEO, were indicted on manslaughter by negligence charges, and these trials are ongoing.
5-December-2023
Beijing Stock Exchange-listed shipowner and operator Fujian Guohang Ocean Shipping Group Co Ltd is advancing its growth strategy with plans to increase its fleet by 12 new bulk carriers. Recently, Chinese shipowner and operator Fujian Guohang Ocean Shipping Group Co Ltd exercised its option for two additional 73K DWT panamax bulk carriers from Jiangsu Haitong Offshore Engineering Equipment, building on its January 2023 order for four similar bulk carriers. Additionally, Fujian Guohang Ocean Shipping Group Co Ltd placed an order in July 2023 with Jiangsu Haitong for two 76K DWT panamax bulk carriers. In another move, Fujian Guohang Ocean Shipping Group Co Ltd has ordered four methanol dual-fuel 89K DWT panamax bulk carriers from Wuhu Shipyard in China, with an option for six more. As of now, Fujian Guohang Ocean Shipping Group Co Ltd owns 19 bulk carriers, with six panamax bulk carriers scheduled for delivery in 2024 and 2025.
4-December-2023
On Sunday, several maritime incidents occurred off the coast of Yemen near Bab el-Mandeb, involving Houthi rebel attacks on at least two commercial vessels and a U.S. warship. Yemeni military spokesperson Yahya Saree acknowledged these actions, confirming naval strikes on two ships linked to Israel, with one being hit by a missile and another by a drone. Maritime security analysts from Diaplous and Ambrey Analytics reported that up to four merchant ships were impacted, either directly hit or narrowly missed by unmanned aerial vehicles (UAVs). The most significant of these incidents involved the MV Number 9, a container ship operated by Orient Overseas Container Line, which sustained damage from a drone attack near the Hodeidah port. Reports indicate that Yemeni authorities, whose identity remains unclear, instructed the vessel to change course towards Yemen under threat of further attacks. The ship’s master, however, reported an engine malfunction, rendering compliance impossible. Bernhard Schulte Shipmanagement (BSM), managing the MV Number 9, confirmed the ship was hit by a projectile in the Bab el-Mandeb Strait but reported all crew members safe and no pollution from the incident. The ship continues to sail with BSM’s emergency response team coordinating efforts with relevant authorities. Additionally, another ship, the MV Unity Explorer, controlled by Danny Ungar, was attacked by drones while heading south. This Bahamas-flagged, UK-owned, and Israeli-affiliated ultramax bulk carrier managed to avoid harm, with the crew sheltering in the ship’s citadel under armed protection. Similarly, the MV AOM Sophie II, a Panama-flagged kamsarmax bulk carrier, also experienced an attack but reported no injuries or damage. SK Shipping’s VLCC MT C Genuine also witnessed an explosion in its vicinity without sustaining damage. These incidents signify an escalation in Houthi actions against commercial vessels in the area, following the previous hijacking of the MV Galaxy Leader and attacks on the MV CMA CGM Symi and MT Central Park, both of which were targeted by suspected Iranian-made drones and pirates, respectively.
2-December-2023
Greek maritime tycoon George Economou has recently expanded his holdings in the shipping industry by acquiring a significant share in the capesize shipping company Seanergy Maritime (SHIP). According to a report filed with the US Securities and Exchange Commission, George Economou’s investment firm Sphinx, under the umbrella of Maryport Navigation, has purchased 1.12 million shares of New York-listed pure-play capesize owner Seanergy Maritime (SHIP). This acquisition represents a 5.7% ownership in the company, which is under the leadership of Stamatis Tsantanis. This move marks George Economou’s third major investment in 2023, following stakes in the Palios family’s tanker business Performance Shipping and the dry bulk enterprise OceanPal, an offshoot of Diana Shipping. George Economou has been forthright about his intentions with Performance Shipping, making a cash tender offer for control and initiating a lawsuit against its leadership, while his involvement with OceanPal has been less active. Despite George Economou’s recent investment, Seanergy Maritime, headed by Stamatis Tsantanis, remains firmly under his control, particularly through his holding of Series B preferred and a substantial number of common shares. Economou’s intentions with Seanergy Maritime (SHIP) are currently subject to speculation. George Economou joins Konstantinos Konstantakopoulos, the chairman and CEO of Costamare Inc. (CMRE), who disclosed a 5.1% stake in Seanergy Maritime in July 2023. Based in Athens, Seanergy Maritime (SHIP) operates a fleet of 17 vessels, including a newcastlemax bulk carrier and 16 capesize bulk carriers. Under the direction of Stamatis Tsantanis, Seanergy Maritime (SHIP) reported a net loss of $8.5 million in the first nine months of 2023, with revenues of $70 million. Despite this, Seanergy Maritime’s (SHIP) stock is trading at a 52-week high, likely fueled by a significant uptick in capesize charter rates.
1-December-2023
George Economou, a notable figure in the maritime industry, has recently emerged as a 5% shareholder in Seanergy Maritime (SHIP), a New York-listed company specializing in capesize bulk carriers. This development places Greek shipowner Stamatis Tsantanis-led shipowner and operator Seanergy Maritime (SHIP) among a group of companies in which Economou has taken a significant interest, a list that already includes Performance Shipping and OceanPal, both spinoffs from the Palios family’s Diana Shipping. For New York-listed shipowners, particularly those operating in specific segments of the shipping industry, the news of George Economou acquiring a stake can be quite impactful. George Economou’s investment in Seanergy Maritime (SHIP) indicates his growing involvement and interest in companies with a focus on capesize shipping, a sector known for its large bulk carriers primarily used for transporting cargo like coal and iron ore. George Economou’s track record and influence in the maritime sector make his investments noteworthy, often signaling potential strategic shifts or new developments within the companies he chooses to invest in. George Economou’s stake in New York-listed pure-play capesize owner Seanergy Maritime (SHIP) thus marks an important moment for the company and could potentially herald changes or new directions in its operational strategies.
1-December-2023
Taylor Maritime Investments (TMI), a London-listed entity and spin-off of the Hong Kong-based shipowner Taylor Maritime, is experiencing positive developments in its operations, particularly through its subsidiary, Grindrod Shipping. Edward Buttery, CEO of TMI, maintains an optimistic perspective on the geared bulk carrier sector. Singapore-based Grindrod Shipping, under the ownership of TMI, is taking advantage of rising bulker rates in the Q4 2023 to reduce its debt. This strategic move comes at a time when the Grindrod Shipping is witnessing an increase in earnings from its fleet. In the Q3 2023, handysize bulk carrier TCE (time charter equivalent) earnings stood at $9,744 per day, while supramax/ultramax vessels brought in $12,380 per day. These figures have already been exceeded in the ongoing Q4 2023. The financial strategy of paying off debt, facilitated by the climbing rates, indicates a strong period for Grindrod Shipping and by extension, Taylor Maritime Investments (TMI). This approach aligns with the Grindrod Shipping’s broader goals of financial stability and capitalizing on favorable market conditions in the maritime industry.
1-December-2023
Supramax bulk carriers operating in the Atlantic are currently commanding their highest premium over Pacific rates since 2017, a result of various converging factors that have led to an exceptionally strong Atlantic market. This disparity in earnings between the two basins marks a significant split, with spot rates for round-voyages in the Atlantic notably outperforming those in the Pacific. However, this lucrative period for supramax carriers in the Atlantic is expected to be transient. The beginning of the new year is anticipated to bring a change, as a substantial influx of fresh tonnage arrives from the Pacific. This increase in available vessels is likely to exert downward pressure on the current high rates in the Atlantic, aligning with the typical cyclical nature of the shipping industry. Therefore, while the Atlantic supramax market is experiencing a notable peak in earnings, stakeholders and market observers should be prepared for a potential adjustment in January, reflecting the dynamic and often unpredictable nature of global shipping markets.
1-December-2023
Vale, the Brazilian mining powerhouse, has recently embarked on its first iron ore voyage using a blend of biofuels, in collaboration with Lubeck-based shipowner and operator Oldendorff Carriers. This initiative represents a significant step in Vale’s journey towards more sustainable shipping practices. The voyage was conducted using the Oldendorff Carriers’ 2016 built newcastlemax bulk carrier 209K DWT MV Hinrich Oldendorff. MV Hinrich Oldendorff, loaded with iron ore at Guaiba in Brazil, was powered for this journey by a mixture of biofuels derived from residual cooking oil, marking a departure from conventional bunker fuels. Brazil’s iron ore mining giant Vale, headquartered in Rio de Janeiro, undertook this project in partnership with the German bulker operator Oldendorff Carriers. This trial voyage is a part of Vale’s broader Ecoshipping program, which aims to test and implement green technologies in maritime operations. The Ecoshipping program has already explored various sustainable solutions, including methanol fuel, wind propulsion, and air lubrication technologies. This biofuel-powered voyage is particularly significant for Vale, as it aligns with its commitment to environmental sustainability, especially in the crucial Brazil-to-China iron ore trade route. By integrating biofuels into its operations, Vale is showcasing its commitment to reducing the environmental impact of its shipping activities.