Weekly edition 2nd December

All-Australian crew for Rio Tinto ship

THE MARITIME Union of Australia (MUA) has hailed Rio Tinto Marine’s decision to employ an all-Australian crew for its new ship as a “significant breakthrough.

Shipping industry celebrates its best in Year of Seafarer

AUSTRALIA’S shipping, ports and maritime industry gathered at the 15th Lloyd’s List DCN Shipping and Maritime Industry Awards on Thursday November 25, to celebrate excellence and achievement over the past year.

Questions over demand for iron ore answered with confidence

IN SIGNS of global economic recovery, the World Steel Association has reported global production of 118m tonnes in the month of October, 2.4% higher than October last calendar year.

Commodity prospects bulk up as better conditions hint at a good year ahead

A BULLISH outlook for the Chinese economy is expected to fuel more demand for Australian dry-bulk commodities, analysts Commodore Research say.

CBFCA and AFIF merger proposal falls apart

A PROPOSED merger between two trade bodies has fallen apart. Now, a referendum of members of the Customs Brokers and Forwarders Council of Australia (CBFCA) early next year is shaping as the best hope for proponents of a joint organisation. It would involve the CBFCA and the Australian Federation of International Forwarders (AFIF).

Fremantle example of the dilemma of port developments

URBAN encroachment was a key theme for the four Australian ports chief executives who spoke at the recent AusIntermodal 2010 conference, held at the Langham Hotel in Melbourne.

Salvage convention talks show deep divisions in the industry

DISCUSSIONS hosted this October by the Comite Maritime International (CMI) regarding the review of the 1989 Salvage Convention, have revealed deep-set industry divisions, with the International Salvage Union (ISU) and shipping property insurers pushing strongly for the convention to be overhauled, while the International Chamber of Shipping (ICS) and the International Group of Protection & Indemnity (P&I) Clubs campaigned staunchly to preserve the status quo.

Boxship charter rates weaken as low demand hits 2500 teu vessels

Weekly fixtures show that few segments escape seasonal slump except smaller ships, reports PATRICK HAGEN

Traders back new Baltic India-Japan tanker index

THE BALTIC Exchange is to trial a new route for medium-range tankers from the beginning of 2011, shipping 35,000-tonne cargoes of clean petroleum product from the west coast of India to Chiba, Japan.

Indonesian group enters dry bulk sector with panamax buy

INDONESIAN shipping group Trada Maritime is venturing into the dry bulk sector with its purchase of a Japanese-controlled panamax for US$26.8m.

Box carriers increase Panama Canal tolls

MAJOR container shipping lines are planning to lift their Panama Canal charges following the introduction of a rate hike by the canal authority next year.

Boskalis offers payment to plug Smit pension gap

BOSKALIS has offered a one-off €30m (US$40.9m) voluntary payment to stop a 13.2% cut in pension entitlements for Smit employees from January 2011.

Container lessors keep a close eye on the lines

NO-ONE predicted how rapid and severe the contraction in the boxship industry during 2008 and 2009 would be, leaving an alarming amount of tonnage in lay-up.

Hyundai Eng in line for HMM funding

THE HYUNDAI group is planning to pour Won20trn (US$17.5bn) in investment into Hyundai Engineering & Construction over the next decade if its takeover bid goes through as planned.

MOL, Vietnam companies in tugs venture

JAPAN’S Mitsui OSK Lines has entered the tugs business in Vietnam by forming a joint-venture company with two Vietnamese firms.

Niche and regional box players hold their own in latest survey

Despite introducing bigger boxships, leading liner companies’ share of the global container fleet remains relatively unchanged, writes MATTHEW BEDDOW*

Yards see boosted inquiry for mid-sized boxships

CONTAINERSHIP ordering is picking up for mid-sized ships, with yards receiving a growing number of inquiries now that recovery in the freight trades looks set to continue.

Greek newbuilding orders favour boxships over other vessel types

CONTAINER vessels have taken over as the prime focus of Greek owners inking newbuilding contracts in recent weeks, according to a prominent Piraeus-based ship broker.

Floating into new era

TRADE FOR the port of Brisbane last year was steady but things are looking better for 2010/11.

Repairer faces future with real world view

SHIPBUILDER and repairer Forgacs Engineering has enjoyed a string of jobs in the last year but it has been no thanks to the strength in the Australian dollar.

Graincorp’s new system to ease road congestion

A TRUCK scheduling system has reduced vehicle congestion at GrainCorp’s handling facility at the port of Brisbane by 30%.

Heavy equipment specialist sees brighter times ahead

THE HEALTH of cargo volumes handled by freight forwarder Skelton Sherborne is on the mend.

Prospects pick up for graduates in shipping

A recovery in the commercial jobs market has been accompanied by more rigorous selection processes, writes LIZ McCARTHY

Wage bills are now rising with skills at a premium

The overall cost of operating a ship is dropping for the first time in years, but the message on pay is a mixed one, reports DAVID OSLER

Switch from banking pays admirably for Hanjin boss

Kim Young-min says his time at Citibank has taught him to be wary of the herd instinct in buying that is apparent with some container lines. Interview by TOM LEANDER

Box recovery takes lines by surprise

MANY of the chief executives of container lines regarded this year’s recovery in box trades in January as a surprise.

Skills: the big issue

With Australia’s sea freight task forecast to double by 2025, the ongoing success of Australian shipping hinges on the supply of a highly skilled workforce. And while recruiters will say there is no shortage of applicants applying for jobs in maritime, qualified personnel are in short supply. Long-term chronic skills shortages across many of maritime’s sectors are limiting the industry’s growth. The role of training in helping to solve this problem is paramount. Yet industry lacks a nationalised and agreed approach to training, Australia’s flagged-shipping fleet continues to diminish along with opportunities for seagoing experience, and many in the industry believe that government reforms to address these issues are just not happening quickly enough, reports JENNIFER PERRY.

Clicking onto a maritime career

ONLINE career portals are helping to tackle the maritime industry’s recruitment challenges.

Solving maritime’s training dilemma

THE CURRENT state of training in maritime is indeed a complex picture.

Still too early to invest in dry bulk newbuildings

NOW IS not the time to invest in dry bulk tonnage, according to speakers and delegates at the Informa Maritime Events Ship Finance and Investment Conference in London.

Philippines urged to keep up seafarer training standards

THE Philippines must stay on the International Maritime Organization white list of nations that meet seafarer training requirements if shipowners are to maintain confidence in Filipino certificates and training institutions, International Shipping Federation (ISF) president Spyros Polemis has told an industry audience in Manila.

Bankers see signs that lending is to resume

LENDING to the shipping industry is set to increase, albeit incrementally, according to a survey of top shipping bankers.

Big ships to cut 70 capesize cargoes from Brazil trades

THE BOOM in building very large and ultra large bulk carriers for mining multinationals is threatening to steal market share from large capesize vessels on the spot market.

Indonesian coal deal

PULAU Seroja Jaya, a unit of Singapore- listed Seroja, has secured a coal barging contract from Adaro Indonesia worth US$150m.

Vale’s giant ore carrier costs lower than 10-year average

ESTIMATED cash break-even costs for Vale’s fleet of 36 giant ore carriers are just under US$40,000 per day, or US$20 per tonne, according to fresh estimates from German bank DVB.

First spot US-Asia LNG deals for Golar Commodities

THE NEW trading subsidiary of Oslo and US-listed Golar LNG – Golar Commodities Ltd – initiated its first spot cargo transactions, exporting a US cargo into the Asian markets.

Asian naphtha boosts product tanker view

STRONG Asian demand for naphtha has seen daily rates for long range two product tankers surge to nearly US$14,000, up from record lows of under US$1000 seen 10 days ago.

The market December 2, 2010

THE CAPESIZE market flirted with recovery last week, but that prospect, along with hopes of a year-end spike, has faded. The entry of iron ore producer Vale into the market, expected to be the catalyst that would push rates up, turned out to be limited.

Brussels to get tough on poorly trained seafarers from outside the EU

THE EUROPEAN Commission is understood to be examining the withdrawal of recognition of Standards of Training, Certification and Watchkeeping (STCW) certificates from several countries that provide seafarers to European Union-flagged ships.

China P&I eyes group move

THE International Group of P&I Clubs comprises 13 members, but the question is: does it need a 14th? “There are a lot of rumours flying around about China P&I Club,” said IG secretary and executive officer Andrew Bardot.

Kenya enforces security corridor off Mombasa

KENYA is to institute a security corridor for ships entering the key regional hub of Mombasa, amid speculation that a Somali pirate cell is operating in the country’s territorial waters.

Germany begins first piracy trial in 400 years

THE FIRST piracy trial to be held in Germany for more than 400 years opened in Hamburg last month.

Florida hubs eye Panama expansion possibilities

FLORIDA harbours have an upbeat view on the Panama Canal expansion, believing that their unique geographical location would enable them to straddle the twin areas that have come into focus as a result – post-panamax cargoes and transhipment.

Insurer rises to the anti-piracy challenge

Joint Hull Committee chairman recognises the expanded role the market must play to combat piracy, writes GAVIN VAN MARLE

Another privateer joins the ranks of anti-piracy escorts

ANOTHER company has joined the growing number of military contractors offering private escort vessels to the shipping industry.

UK may send ex-special forces to fight pirates

THE UK Foreign Office has held talks with private military company Drum Cussac to discuss the possibility of employing former special forces personnel to train Somali nationals to fight local pirates on land, according to the Sunday Telegraph newspaper.

Casualty briefs: 2 December 2010

GREEN VALLEY (BAHAMAS) London, November 25

Owners to fight low-sulphur fuel rules

SHIPOWNERS operating shortsea ro-ro and container services in the Baltic and North Sea are warning of a huge shift in cargo to road transport unless they are granted an exemption from tough new emission rules that come into force in 2015.

Antarctic White Ribbon Day

SEAFARERS on the underside of the Earth itself celebrated “International White Ribbon Day,” which was held on November 25. The White Ribbon Campaign in Australia aims to raise awareness among Australian men and boys about the roles they can play to prevent violence against women.

Letter: Stuart Macbeth Benefit Night a moving success

To the attendees at the Stuart Macbeth benefit night:

Working towards Utopia in 1861

READER Terry Halling was most amused by a short list he came across while working on archives in the NSW State Library. It pertains to Dalgety, a ship chandler of the mid 1800s, based in Sydney. Modern day readers may be quite envious of the “near-Utopian” working conditions enjoyed by the administrative staff at Dalgety.

Looking aft: Sheepish attempt at public relations

RESIDENTS of New South Wales were astounded to discover free sheep were on offer twenty years ago. Not, mind you, free lamb or mutton. No, it was actual walking, grass-chomping, wool-bearing live sheep that were being given away.