Concordia Maritime Reels In USD 5 Mn for IMOIIMAX Success
Image Courtesy: Concordia Maritime
Swedish tanker owner Concordia Maritime is to receive a payment of USD 5 million related to its IMOIIMAX tankers.
The amount is based on the cooperation between Stena Bulk and Concordia Maritime related to the IMOIIMAX concept.
The company explained that the payment is “a consequence of the commercial successes of the IMOIIMAX fleet since delivery.”
Expected to be made during the third quarter of 2019, the payment would be reported as other income.
During the second quarter ended June 30, 2019, Concordia Maritime reported an operating loss of SEK 7.8 million (USD 0.8 million), against an operating loss of SEK 55.5 million (USD 5.7 million) seen in the same period a year earlier.
“Developments during the second quarter were largely as we expected – namely, weak but still stronger than the corresponding quarter the previous year. Among the reasons were OPEC’s production cuts, extended seasonal maintenance of refineries prior to IMO 2020 and extensive deliveries of new vessels.”
During the first half of 2019, the tanker markets produced voyage result per day levels that exceeded the corresponding period in the slump year 2018 by 50-100 percent.
“Our view of market development going forward is largely unchanged. Several factors still point to a gradually stronger market in autumn,” the company noted.
UK: Uncertain Times Make Strong Ports More Vital Than Ever
Illustration; Source: PxHere under CC0 Creative Commons license
Global trade, and the maritime sector that enables so many of its flows, faces uncertain and challenging times, according to the UK Major Ports Group.
Research from maritime industry research experts Drewry has identified a small number of key factors that will make a port resilient and robust through all weathers.
The five key characteristic of Strong Ports for long term success are:
1. Productivity and efficiency – fundamentally, the success of any port will remain underpinned by the competitiveness it offers to customers both on the water and inland;
2. Active role in supply chains – A compelling proposition to customers has to be more than just the traditional role of goods handling. Ports can play a vital role in creating and realizing shared value for as proactive links in broader supply chains as a whole;
3. Logistics zones – A modern major ports is much more than a point of transit. It is the home to a range of other economic activity and value addition. A particularly significant opportunity is port-centric logistics, realizing both economic and environmental benefits. To maximise the potential for port-centric development models, the right planning processes have to be in place to unlock the ambition and capital of the port operator;
4. Digital platforms – the modern port is increasingly a gateway for data as well as goods. Digital platforms can realise major value through providing better visibility and increased supply chain efficiency – both contractual and physical;
5. Hinterland connectivity – The value of the UK’s ports to the economy is already considerable, as it reached GBP 9.7 billion in 2017, but this value and maximizing the growth ambitions of the UK’s port operators is largely dependent to how well ports are connected to the major inland economic and population centres.
Each of these characteristics are built on the essential foundations of safe and sustainable operation, Drewry noted.
Port owners and operators relish the responsibility to deliver a number of these factors themselves. But many can only be fully delivered through partnership with others – customers, supply chain partners and, crucially, Governments at all levels.
“As an island nation with 95% of the UK trade arriving or departing by sea, we have always relied on our ports. Brexit and uncertain times make Strong Ports more vital than ever for the U.K.,” Tim Morris, CEO of the UK Major Ports Group, said.
“Delivering Strong Ports requires action from both ports & the Government. The ports are ready to play their part. We look forward to working with Government to do more, boosting the UK’s capability to trade and jobs and prosperity in the UK’s coastal communities.”
French shipping major CMA CGM has reported a strong growth in its volumes in the second quarter of 2019, despite an uncertain worldwide geopolitical environment.
The company said that its shipping business remained strong in the second quarter, with significant improvement in volumes carried and in profitability, enabling the shipping activity to post a positive net result.
In the second quarter, volumes transported by CMA CGM increased by 6.3% compared to the second quarter of 2018 and by 6.8% compared to the first quarter of 2019. This positive trend, which is above market, is driven by the strong growth of intra-regional lines (short sea) and the United States lines, which remain particularly dynamic, the company said.
Second-quarter revenue stood at USD 7.7 billion, a year-on-year increase of 35%. The activity of the group’s maritime division has particularly benefited from the dynamisms of its intraregional lines and has posted a growth in volumes above global market growth.
Adjusted EBITDA came to USD 954 million for the period, of which USD 464 million from the impact of applying IFRS 16 and USD 147 million from the consolidation of CEVA Logistics. Excluding these two factors, adjusted EBITDA was up by a strong 60.1% year-on-year, at USD 343.6 million versus USD 214.6 million in second quarter 2018. This performance reflected both the sustained growth in revenue and the impact of the performance improvement and cost control plan under way since the beginning of the year.
“In a context of geopolitical uncertainty, the CMA CGM Group continues to focus its efforts on operational efficiency, cost control and the rationalization of its industrial activities and brands. In addition, the positive momentum generated by the acquisition of CEVA Logistics will gradually enable the group to benefit from a less volatile and more diversified environment than the maritime sector,” according to the company.
CMA CGM expressed confidence in the second half of 2019, “which should be better than the first one.”
Oman Shipping Company Welcomes New Ultramax to Its Fleet
Image Courtesy: Oman Shipping Company
Muscat-based Oman Shipping Company (OSC) held a naming ceremony for its newest dry bulk carrier, the Jabal Shams, on September 9.
Built at China’s Changhong International Shipyard, the 63,500 dwt vessel was officially handed over to OSC, a member of the ASYAD Group.
The Jabal Shams is one of four Ultramax bulkers scheduled for delivery to the company in 2019, joining a fleet of over 50 world-class vessels including LNG carriers, LPG carriers, VLCCs, tankers, VLOCs, dry cagro, and container ships.
The ceremony follows the naming and delivery of Jabal Shams’ sister vessel, the Jabal Almisht, in Zhoushan in August.
“The delivery of the Jabal Shams and Jabal Almisht is part of OSC Dry Cargo expansion program that will enhance our position in the segment as a key shipping provider for GCC and global markets. Both vessels will be operating under long-term cargo contracts,” Michael Jorgensen, OSC’s Acting Chief Executive Officer, said.
Under the patronage of Said Al Masoudi, CEO Sohar Aluminium, #OmanShipping has launched its new Ultramax carrier “Jabal Shams” of 63,500 DWT, in Changhong International Shipyard in Zhoushan, China. pic.twitter.com/AuCO5h147n
Illustration; Source: Pxhere under CC0 Creative Commons license
Mexican authorities have found two packages of drugs aboard a bulk carrier in the port of Altamira.
According to a statement from the Mexican naval forces, the packages allegedly containing cocaine were found aboard the Cyprus-flagged general cargo vessel UBC Tokyo.
The 37,900 dwt ship arrived at the port of Altamira on September 5 from Colombia’s Barranquilla port. Upon arrival, the vessel was inspected and the authorities located the drugs in the bulk carrier’s cargo hold that was loaded with iron ore.
Initial reports suggest that the packages contained around 49 kilograms of cocaine.
Naval teams continued supervising the discharge of the ship’s cargo in order to rule out the possibility of more hidden packages.