For those with strong balance sheets and sound corporate banking relationships, it is tempting to order new ships when newbuilding prices are well off their highs and look set to climb again in the months ahead. But the business logic seems unfathomable at a time when there are already too many ships on order, with many owners seeking to defer deliveries, switch their original contracts or bale out completely. Today, the orderbook comprises well over a third of the existing fleet and most of it will deliver within the next 30 months. Clarkson statistics reveal that the contracted tankers of more than 10,000 dwt equate to 27.5% of today’s fleet, container ships almost 26% and bulkers a daunting 56%. In the specialised sectors, offshore vessels equivalent to more than a fifth of the existing fleet have been contracted and the car carrier fleet is due to grow sharply, with around a quarter of existing capacity still waiting to deliver. These numbers don’t seem to deter some brave shipowners, it would seem. According to a recent Clarkson commentary, there has been a flurry of new orders recently, “despite the flaky state of the world economy”, with a total of 61m dwt of ships contracted so far this year, including nearly 16m dwt of tankers, 41m dwt of bulk carriers and 2.4m dwt of container ships. Part of the reason for the apparent confidence in the dry bulk sector – apart from the relatively buoyant market – is the gap between the cost of new ships and secondhand prices. In the 1980s, Clarksons estimates, the cost of a five-year old Panamax bulker was around 58% of its new price while an Aframax could be picked up for 55%. Assuming that ships have an average life of 20 years – itself a conservative assumption – this meant that secondhand vessels could be bought for little more than half of their initial cost but with three quarters of their working lives left. A bargain, it would seem. A decade later, the figures had adjusted to reflect a more balanced demand supply backdrop. The five-year-old price averaged about 74% of the new ship price, roughly as one would expect. However, in the 2000s, “there...
Read MorePosidonia Exhibition Organizers announced again this year their good prospects for an increase of the participants by overseas and local Companies involved with Shipping Activities and even more Companies of collateral activities independent of Shipping interests had at an early stage declared interest to be present at the Exhibition. Reasonably one can say that the Organizers were satisfied with the results of the number of Companies that accepted the cost of the Exhibition Stands despite of certain increase of the actual costs and relative expenses involved. Therefore those concerned of the Greek Public had the opportunity to visit several Stands and Exhibitors and accordingly to renew their interests on Shipping and other Activities. Lambos Maritime Services Ltd basis their long standing with successful cooperation with important overseas Principals have extended again good services and assistance to our Principals in the presentation of their Stands in the Exhibition as well as the necessary Marketing Activities as required by our Clients before and during the Operation of the Exhibition. Specifically it maybe of interest to refer to the following Principals of our Company and their Stand in the Exhibition: 1. JURONG SHIPYARD LTD participated with a Stand within the Singapore Pavilion and their Delegates provided information and Brochures to those concerned regarding the present activities of the Shipyard as well as the expansion of the integrated new Shipyard Facilities. The New Yard Facilities at Tuas already now Phase 1 is to be completed and the Ground Breaking Ceremony took place on Monday 21st June 2010 at Tuas Jurong. 2. SOBRENA SHIPYARD of Brest, France – The major Shiprepair Yard in North – West Europe with modern Facilities and experienced Workforce with Specialists and Engineers for any kind of Repairs regarding Tankers VLCCs & Gas Carriers, Bulkers, Container Vessels etc. have exhibited this year with their own Stand. Several major Shipping Companies with Tankers, Gas Carriers Bulkers etc are giving preference to the Facilities of the Shipyard and their location without Deviation during the Northbound or Southbound destination of Vessels through the English Channel. 3. QINGDAO BEIHAI SHIPYARD of North China exhibited with in the CSIC Pavilion and again attracted interests by Shipowners and Operators as a major Shiprepair Yard in North...
Read MoreThis Article is republished under the kind permission of BIMCO (www.bimco.org) BIMCO is an independent international shipping association, with a membership composed of ship owners, managers, brokers, agents and many other stakeholders with vested interests in the shipping industry. One of its activities is to inform its Members on current Issues as per the Article below and for additional information regarding the activities of BIMCO please visit www.bimco.org. Explosion and sinking of the Deepwater Horizon – Important information In relation to the explosion and sinking of the drilling rig Deepwater Horizon, which has caused loss of life and severe oil pollution in the Gulf of Mexico, the Secretary-General of the International Maritime Organization has received a formal communication from the Government of the United States requesting that the following information to be circulated to all ships and shipmasters operating in the area: The US Coast Guard is providing Broadcast Notices to Mariners, NAVTEX, AIS messages and voice reports to mariners both in transit and when calling at US ports in the Gulf of Mexico to warn of the presence of the oil spill and to advise mariners of precautionary measures they can take to minimize threats to their vessels and to the marine environment. Websites have been established to provide the latest information on the location and projection for the location of the oil spill, information on the response measures taken and other information that may be of use to the IMO, Governments and ships and shipmasters. The websites are: http://www.deepwaterhorizonresponse.com...
Read MoreThis Article is republished under the kind permission of BIMCO (www.bimco.org) BIMCO is an independent international shipping association, with a membership composed of ship owners, managers, brokers, agents and many other stakeholders with vested interests in the shipping industry. One of its activities is to inform its Members on current Issues as per the Article below and for additional information regarding the activities of BIMCO please visit www.bimco.org. ISM Code Amendments – 1 July 2010 Members are kindly reminded about the changes to the International Safety Management (ISM) Code that enters into force 1 July 2010 by IMO Resolution MSC.273(85) and members are also urged to ensure that these amendments are reflected in the Company and Ship Safety Management Systems. Summary of the above mentioned changes to the ISM Code: Paragraph 1.1.10 – The definition of a major non-conformity makes it clear that this can be either a lack of effective and systematic implementation of a requirement of this Code or an identifiable deviation that poses a serious threat to the safety of personnel or the ship or a serious risk to the environment that requires immediate corrective action. Paragraph 1.2.2. – The objectives explicitly require assessment of all identified risks to the Company’s ships, personnel and the environment; the requirement to establish appropriate safeguards remains. Paragraph 5.1.5. – The Master’s responsibility to review the Safety Management System (SMS) and report its deficiencies to the shore based management have to be periodic. Paragraph 7 – The requirement to establish procedures for key shipboard operations is rephrased to concern the safety of the ship and protection of the environment and now also includes the safety of personnel. Paragraph 9.2 – The requirement for implementation of corrective action includes measures intended to prevent recurrence. Paragraph 12.1 – Internal safety audits are required to be carried out on board and ashore at intervals not exceeding twelve months; can in exceptional circumstances be exceeded by three months. Paragraph 12.2 – The Company evaluation of the safety management system is required to address the effectiveness of the system. Paragraph 13 – New paragraphs introduced to bring International Safety Management Certificates into line with the provisions in SOLAS relating to the extension of statutory certificates....
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