Weekly Edition 6th of August 2009

Pirates may be prolonging ransom negotiations as stakes become higher

THE release of 11 Indonesian seafarers almost eight months after their ship was first hijacked has highlighted growing industry concern that ransom negotiation are dragging on longer than ever before.

Hidden agendas lurk behind Navfor anti-piracy operation

While there is no question who the common enemy is, navies operating off Somalia are pawns in a much larger power game

Hansa Stavanger is released

HANSA Stavanger, the German boxship held by Somali pirates since April, has been released.

Armed gang kidnaps Lithuanian reefer crew

AN ARMED gang in a speedboat has taken hostage of five crew members of a Lithuanian reefer ship off Nigeria.

Anger at Hansa Stavanger ransom deal

GERMAN politicians have criticised the payment of a ransom to Somali pirates to effect the release of containership Hansa Stavanger , writes Anne-Christin Gröger in Cologne .

Is piracy in Asia about to return to the bad old days?

Piracy attacks are on the rise in Asia for the first time in five years. Marcus Hand examines whether this means a resurgence in attacks in a region that was once the world’s top piracy black spot

Croatia to join piracy fight

EU mission off Somalia accepts assistance after human rights agreement

Croatia to join EU anti-piracy mission

CROATIA is to join the European Union’s Atalanta mission off Somalia after promising to respect the human rights of pirates.

Linfox bites off biggest deal

LINFOX has signed a 10-year, $2bn logistics deal with National Foods.

Scale of feedback slows reply

SYDNEY Ports Corporation was this week still sifting through an unprecedented volume of feedback on its proposed Port Botany peak pricing system.

Asciano heads change for new era

THE SUM of experience and understanding of Asciano’s core ports and rail businesses will be reduced significantly as the company loses Doug Schultz and Don Telford within a few months of each other.

Airfreight exports hold, imports plummet

EXPORTS have again emerged as the sole source of light in an increasingly-gloomy outlook for Australia’s air cargo sector.

Big business joins union for big push on coastal shipping

THE MARITIME Union of Australia (MUA) joined Rio Tinto last week in calling for the speedy introduction of coastal shipping reforms.

Port Hedland pulls clear as biggest port

TRADE through Port Hedland and the port of Dampier in Western Australia’s Pilbara region reached a record 300m tonnes in the 2008/09 financial year.

Felix in spat over coal deal: calls on Asciano to ‘put up or shut up’

FELIX Resources managing director Brian Flannery issued a “put up or shut up” challenge to Asciano this week over claims relating to a Felix deal with QR Coal.

Salvaging an element of speed to save lives and vessels at sea

The long history of disasters at sea has evolved increasingly effective salvage methods and systems. Michael Underdown details how today’s contracts can speed the process, saving lives and property

Dark cloud looms over heavy imports sector

SKELTON Sherborne director Brad Skelton issued a gloomy outlook for the the transport of mining and construction equipment in the coming year as the global credit crisis forces companies to tighten budgets and downsize their operations.

Riverwijs bolsters fleet with four new tugs

THE BURGEONING demand for natural gas and the increase in size of tankers has driven Queensland tug operator Riverwijs to undertake a $30m upgrade of its fleet.

Portland chips in for big deal

GUNNS has convinced Port of Portland Ltd (POPL) that it was best placed to create a second hardwood chip export facility in the western Victorian coastal town.

Port Alma to expand

COAL was expected to drive the development of Port Alma to become a major Queensland export facility, Gladstone Ports Corporation (GPC) confirmed last week. The news came as GPC said it had begun developing a strategic plan for the port and related infrastructure over the next 12-18 months.

POTA acquires empties rival

P&O Trans Australia (POTA) has confirmed a binding agreement to acquire all of the shares in Sydney rival Maritime Container Services (MCS).

Port Botany sees record box trade despite downturn

WHILE total, full-containerised imports at Port Botany dipped by 1.3% in 2008/09, the port still managed to set a new container trade record of 1.78m teu.

No sale as Tasmanian rail deadline passes

THE SALE deadline for the Pacific National Tasmania (PNT)-owned Melba Line passed last Friday without the deal being finalised.

Farmers seek better deal from rail

NEW South Wales farmers will ramp up pressure on the state government to give greater attention to rail transport for freight and produce.

National rail reform lagging – ARA chief

AUSTRALIA was not meeting the challenges of rail regulation and operation quickly enough, Australasian Railway Association chief executive Bryan Nye has told a Melbourne conference.

Sea SA bucks the trend with revenue increase

SEA SA has defied the economic downturn posting an 11% rise in revenue, the Spencer Gulf ro-ro company has revealed.

Banks shunning smaller Chinese shipbuilders

CHINESE banks remain cautious of financing the country’s small to medium-sized shipbuilders over fears of high default risks.

Cosco Corp counting cost of downturn

SINGAPORE-listed Cosco Corp’s first-half net profits fell 67% on higher costs and a difficult business environment for its Chinese shipyard business.

China yard moves into ship scrapping

GIVEN the dearth of newbuilding orders Chinese shipbuilder Jiangsu Yangzijiang Shipbuilding has set its sights on the booming demolition business.

Box terminal operators may find bargains in the slump

GLOBAL container terminal operators have reined back on port expansion plans due to the recession, but may gain from opportunistic purchases as cash strapped container lines sell port assets to keep afloat.

Index shows greater forwarder optimism

EUROPE’S freight forwarders have recorded a sharp decline in seasonal cargo volumes but, surprisingly, are optimistic about future growth for the rest of the year.

CSCL looks to locals

CHINA Shipping Container Lines (CSCL) is expanding its domestic box business in an effort to mitigate the decline of its international business.

Chinese ship prices to fall despite steel costs

ANALYSTS believe the price of Chinese newbuildings will continue to soften in the second half of the year, despite a 33% surge in the country’s steel price between April and June.

Darwin bucks the trend

While the rest of the world worries, the port of Darwin is expanding with confidence. Sineva Toevai reports on the secret of success in the top end.

Mines key to FreightLink growth

FREIGHTLINK, the operator and owner of the Darwin to Adelaide rail line, has had a surprisingly productive year considering the economic downturn.

Toll secures a shipping gem

DARWIN’S Perkins Shipping was acquired by logistics services provider Toll Group in June for an undisclosed sum making it the second time in as many years that the shipping operator has been sold.

China Cosco is braced for loss

CHINA Cosco Holdings, the Hong Kong-listed liner and dry bulk shipping subsidiary of China’s largest shipping company, warned it is likely to plunge into the red when it reports its first half results for this year in the next few weeks.

Royal Caribbean shrugs off big loss

SWINE flu, dollar fluctuations and Spanish economic conditions have taken their toll on second-quarter figures at Royal Caribbean Cruise Lines (RCCL).

Box lines may sell port assets to raise cash

CASH-strapped container lines may be forced to sell off their box terminal assets, fuelling keen interest from existing operators and non-industry investors attracted to one sector of the maritime world still making profits.

Vale’s ‘radical’ change for ore logistics arm

VALE has revealed how it has seized control of its shipping costs with a “radical” six-month restructure of its freight and logistics business.

Promising signs for new wheat harvest

A BETTER than expected start to the crop season has prompted National Australia Bank to revise higher its wheat production forecast for the next financial year.

GrainCorp upgrades its profit forecast

GRAINCORP has increased its 2009 net profit forecast by as much as 50% as demand from new bulk and wheat exporters generated a better than expected level of grain receivals.

Coal & Allied profit up despite lower volumes

THE PORT of Newcastle’s largest coal exporter, Coal & Allied, has posted a 66% jump in first half profits despite production cutbacks.

ABB Grain chief to retire

ABB Grain managing director Michael Iwaniw was to retire last week, the grains marketer said in a statement.

Did thinking big almost bring down Hapag-Lloyd?

Over ambitious CP Ships deal may have threatened German line, reports Janet Porter

Danaos is seeing box recovery

GREEK containership owner Danaos Corp has renewed a message of hope for revival this year in the hard-hit boxship sector.

Valencia port extension wins funding

VALENCIA will receive €74m (US$104.9m) from the European Union Cohesion Fund towards its €900m North Extension project, a port expansion plan that allows for a doubling of container capacity at Spain’s number one box hub.

Suez Canal offers 30% discount

THE SUEZ Canal is offering shipowners discounts of up to 30% in order to drive more traffic through the canal.

Breakeven near for Asia box trades

CONTAINER freight rates are reported to be nearing breakeven on intra-Asia trades as volumes pick up.

Singapore owners fear pay change

SINGAPORE shipowners and seafarers’ unions are united in opposition to a plan by the International Transport Workers Federation (ITF) to impose its benchmark pay rates for foreign nationals serving on Singapore-flagged vessels.

Korean shipbuilders stung by rising costs

TWO of South Korea’s largest shipbuilders – Samsung Heavy Industries and Hyundai Mipo Dockyard – saw their second quarter results badly hit by higher steel costs and a decline in orders in the second quarter of this year.

Forwarders recognise Lovell

THE AUSTRALIAN Federation of International Forwarders recognised chief executive Brian Lovell for his 15 years of service last week.

How to survive trading risks in the international supply chain

SERVICE providers in international trade logistics and supply chain management face a challenging business continuum with the downturn of international trade.