Blogs

The last week has been quite exciting in the marine industry, with a mixture of expected or unexpected changes. The new year is heralded with much gusto as the marine industry is constantly developing new ideas and newer ventures. So, let us quickly browse through the latest happenings that created a stir in the maritime world and has made it to the headlines! Colossal Number of Boxship Deliveries Due in January The new year could not have started on a better note with January setting the record for box ship deliveries in the maritime industry.  According to the latest report of the Alphaliner, January is gearing up for a mammoth delivery consisting of a great number of ULCS, ranging from 14,000-21,000 TEU . Unfortunately, few analysts have stated that a few carriers have postponed their delivery dates to 2019. For instance, China’s Cosco has deferred taking out the transaction involving 10 of a total of 28 ULCS, until next year. Similarly, Taiwan’s Yang Ming has delayed the planned delivery of three ships (each of 14,000 TEU size) in its own vessel pipeline and shifted it to 2019 as well. However, these delayed transactions have not affected the Alphaliner’s course of action and have moved on to the planning of total new containership capacity, and putting immense pressure on the weak trade lanes, as a result.  As predicted, the new additions along with the slow rate of container ship scrapping can clog and pressurize the shipping market. Fairfax Financial Holdings and Seaspan Strike a Deal for Investment The Fairfax company is well-known for exceptional credibility in the field of property and insurance investment. Recently, it has decided to invest in Seaspan, a Canadian company that provides tonnage, an incredible sum of $250m in exchange of 5.5 percent interest that includes unsecured debentures and Class A common share purchase warrants too. Seaspan has great long-term plans with the generous funding, which incorporates repayment of debt, future growth initiatives and other corporate business ventures. Seaspan’s active fleet has expanded with five new buildings that house 110 containerships. Cape Shipping Signs Contract with Huangpu Wenchong The famous Greek company, Cape Shipping, has teamed up with the equally famous Huangpu Wenchong, a shipbuilding company in the People’s Republic of China for building two refrigerated containerships (each of 600 feu ) and two general containerships (each of 2,700 feu ). Cape Shipping is responsible for managing vessels for Principals in Athens, while Huangpu Wenchong (CSSC affiliated) deals with public service, container feeder, offshore support, etc. However, the prices and the delivery dates are yet to be disclosed. Looking back at 2017, Cape Shipping handled the delivery of three containerships (6,900 feu , 2190 feu and 2190 feu respectively) and its present fleet consists of 8 containerships and 3 bulkers. Great Discount on Suez Canal Tolls On a happy note, the Suez Canal Authority (SCA) has extended the toll discounts to 75% that is applicable for both ballast or laden vessels. The new discount has been introduced right from 1 st January 2018 and will last the entire year, expiring on 31 st December 2018. This decision has been taken and implemented by the SCA in order to allow more traffic in the Suez Canal and to make the voyage more cost-effective . Blockchain System to go Live in June Launched in the August of 2017 in Hong Kong, a tech initiative startup called 300cubits has decided the debut date (in June) for the first blockchain system of container shipping. As part of the campaign organized by the company, free TEU tokens shall be distributed on a first-come, first-served basis to the industry participants. There are limited tokens available and the distribution will start from 1 st February 2018. 300cubits has also declared that they will put up 18m TEU for sale to the public from 15 th March-12 th April. The co-founder of the startup, Johnson Leung, has stated that instead of just focusing on concept tests and trials, the first blockchain solution will be implemented for liner shipping. Mr Leung is also of the opinion that the TEU will serve as a great currency unit for container shipping to reconstruct discipline and, as a booking deposit to eliminate the troublesome issue of ‘rolling’ or ‘ghost booking’. Early Peak Season Surcharges on the Transpacific The members of The Alliance had suffered setbacks due to the failure to secure the peak season surcharge during last year. However, the tables shall turn in 2018 as the full vessels on the Transpacific shall definitely notice an early onset of peak season surcharges. Yang Ming, a fellow Alliance member, is determined to seek a general rate increase of $1,000 per FEU. As per current reports, other alliances like 2M and the Ocean Alliance have also put the general rate increment to good use. --- Want to know more news Around the World ? Stay tuned every Monday to ODeX and get the latest in shipping.