Global Chartering

Earlier this year, it was disclosed by broker sources that Essar Shipping Ltd., based in Mumbai (formerly known as Bombay), was exploring the sale of its fleet of six mini-capesize bulk carriers. These carriers, all with a deadweight tonnage (DWT) of 106K and built between 2011 and 2012, represented a unique opportunity in the market, as sales of mini-capesize bulk carriers are not common. Recently, multiple shipbrokers have confirmed that these vessels have been sold en bloc for a total of $81 million. The ships, constructed by STX Dalian, are named MV Kamlesh, MV Ishwari, MV Shravan, MV Kishore, MV Ashok, and MV Arun. The buyer of these vessels is ArcelorMittal, a major player in the steel and mining industry. ArcelorMittal is traditionally known for its asset-light approach to shipping, primarily focusing on chartering, operating, and managing ships rather than owning them. However, this purchase represents a notable expansion of their fleet, aligning with the data from shipping databases indicating that ArcelorMittal owns 16 bulk carriers. This transaction signifies a strategic move by both Essar Shipping Ltd. in divesting these assets and ArcelorMittal in augmenting its shipping capabilities, reflecting the dynamic nature of the maritime shipping industry and the strategic decisions companies make in response to market conditions. 19-April-2021

 

ArcelorMittal Shipping controlled 2011 post-panamax bulk carrier 93K DWT MV AM Ghent was involved in a bunker spill in Gibraltar Bay during a bunkering operation on 12 February 2021. ArcelorMittal Shipping’s crew members ceased bunkering operation promptly and the crew started deck cleaning operations. ArcelorMittal Shipping controlled MV AM Ghent is managed by Anglo-Eastern. ArcelorMittal Shipping is working closely with the technical managers Anglo-Eastern and Gibraltar Port Authorities in the coordination of clean-up operations. Local media news announced around 1,000 liters of bunker was spilled due to the valve problem. The Gibraltar government announced that it was the first oil spill in the region since 2012. ArcelorMittal Shipping controlled 2011 post-panamax bulk carrier 93K DWT MV AM Ghent is flagged in Liberia and covered by North P&I (Protection and Indemnity). 13-February-2021

 

ArcelorMittal Shipping confronts with difficulty of chartering on frozen Great Lakes. ArcelorMittal Shipping projects its ship chartering and inventory around the Soo Locks that close for three (3) months each winter. Every year in December, ArcelorMittal Shipping is wishing not to see another winter like that of 2014. In the winter of 2014, the Great Lakes remained frozen into early spring, forcing ArcelorMittal Shipping’s chartered bulk carriers to follow an icebreaker through dangerous ice channels. ArcelorMittal Shipping’s chartered bulk carriers had to cross the Soo Locks to deliver iron-ore pellets from company mines on Lake Superior to its northwest Indiana steel plants at the lower tip of Lake Michigan. US Coast Guard’s icebreakers came to release the ArcelorMittal Shipping’s chartered bulk carriers. Luxembourg-headquartered ArcelorMittal’s US plants must stockpile enough iron-ore pellets in advance before and after the locks close from January through late March. ArcelorMittal Shipping chartered in bulk carrier 1980 lake-fitted bulk carrier 80K DWT MV Burns Harbor from American Steamship. Furthermore, ArcelorMittal Shipping chartered in bulk carrier 1971 lake-fitted bulk carrier 57K DWT MV Stewart J Cort from Interlake Steamship Co. ArcelorMittal Shipping charters in lake-fitted bulk carriers for around a year. ArcelorMittal Shipping starts plotting for shipments in July for the full calendar year ahead. Luxembourg-headquartered ArcelorMittal’s United States-based five (5) plants are located at the bottom of Lake Michigan take in 18 million tonnes of iron ore pellets per year and keep 5 million tonnes of iron ore pellets on the area at the end of each year to make it through the Great Lakes’ locks closures. In 2018, Luxembourg-headquartered ArcelorMittal’s plants worldwide produced around 92 million tonnes of steel, and ArcelorMittal’s mines put out around 58 million tonnes of iron ore. 23-May-2020

 

Greek shipping tycoon Peter Livanos backed DryLog bulks up with the acquisition of freight trader ED&F Man Shipping. Greek Peter Livanos-led Ceres Shipping is a majority shareholder of both DryLog and GasLog. DryLog has acquired ED&F Man Shipping’s freight trading desk. Previously, DryLog has acquired 50% of ArcelorMittal’s shipping subsidiary Global Chartering Ltd. ED&F Man Shipping has been acquired by the Livanos company and will change its name to DryLog Trading. ED&F Man Shipping has offices in London and Singapore. ED&F Man Shipping’s offices will continue their business in London and Singapore. During the transition of ED&F Man Shipping into DryLog Trading, there will be no interruption in service levels. Currently, ED&F Man Shipping operates around 35 time-chartered geared bulk carriers. ED&F Man Shipping is majority-owned by Agman Holdings, which is itself owned by group company ED&F Man Holdings. Currently, Greek Peter Livanos-led DryLog owns and operates 37 bulk carriers and is the dry shipping arm of Peter Livanos’ Ceres Shipping. In December 2019, ArcelorMittal sold a 50% stake of its wholly-owned shipping division Global Chartering Ltd to Peter Livanos-led DryLog. Global Chartering Ltd joint venture is going to operate around 28 bulk carriers. 19-February-2020

 

Piraeus based DryLog and ArcelorMittal are joining forces in a shipping joint venture. Greek shipping tycoon Peter Livanos backed DryLog took a 50% stake in ArcelorMittal’s shipping subsidiary Global Chartering Ltd. Global Chartering Ltd will retain its name. Global Chartering Ltd will control 28 bulk carriers. Shipowner and operator DryLog and steel giant ArcelorMittal’s joint venture Global Chartering Ltd aims to leverage ArcelorMittal’s cargo commitments and DryLog’s ship-management expertise. Lately, cargo owners have tightened their relationships with shipowners. For example, Cargill entered a pool with Maersk Tankers and Trafigura is working with John Fredriksen backed Frontline. According to DryLog vice-chairman Yannis Haramis, the new joint venture will allow both DryLog and ArcelorMittal to effectively explore synergies, optimize transport alternatives as well as take head-on challenges the shipping industry will face. DryLog and ArcelorMittal have had a close business relationship for more than 25 years. Furthermore, DryLog and ArcelorMittal jointly own the 2010 built capesize bulk carrier 176K DWT MV Bulk Mexico and 2011 built capesize bulk carrier 176K DWT MV Bulk Spain. According to ArcelorMittal Shipping CEO Viral Vora, the joint venture will further cement the long-standing and productive relationship between DryLog and ArcelorMittal. 28-December-2019

 

Norwegian shipowner and operator Torvald Klaveness has confirmed iron ore shipment deal with steel giant Arcelor Mittal. Arcelor Mittal has factories in 18 countries. Arcelor Mittal is one of the leading steel and mining companies. Norwegian shipowner and operator Torvald Klaveness will transport iron ore from South America to northern Europe. Arcelor Mittal preferred to maintain the company’s long-lasting relationship with Norwegian shipowner and operator Torvald Klaveness. ArcelorMittal’s shipping subsidiary Global Chartering Ltd. 20-March-2018