DRY
Glencore sees battery minerals powering profit in 2017 and beyond
Miner and trader Glencore said on Tuesday its battery minerals, especially cobalt, should spur profit in 2017 and beyond in an update for investors that also promised to grow the business, especially through partnerships. It said its marketing, or trading, division’s 2017 EBIT (earnings before interest and tax) would be at the top end of its previous guidance at $2.8 billion, steady from 2016 but effectively an increase given that Glencore sold half of its agriculture business last year. (Reuters)
Algerian wheat purchase raises U.S. farmer hopes for exports
Falling prices have lured a big buyer to U.S.-grown, low-protein wheat, raising the prospect for farmers of more exports and the hope that the market for low-protein wheat may have reached its nadir. U.S. wheat prices have tumbled 60 percent since reaching a four-year high in 2012 as large harvests around the world have reduced export demand. (Reuters)
Louis Dreyfus to sell Australian fertiliser unit to Agrium
Global commodity trader Louis Dreyfus Company has agreed to sell its fertiliser business to Canada’s Agrium Inc. as it continues an overhaul in response to tough agricultural markets. Louis Dreyfus is to sell Macrofertil Australia Pty Ltd, which has annual sales of around $120 million, to Agrium’s Australian unit Landmark Operations Ltd in a deal expected to close in the first quarter of 2018, the companies said on Tuesday. (Reuters)
U.S. soybean, wheat ending stocks up as exports fall
Stockpiles of U.S. soybeans and wheat are expected to rise due to lower export demand amid heightened competition from rival global suppliers, government data on Tuesday showed. In a monthly supply and demand report, the U.S. Agriculture Department (USDA) raised its ending stocks forecast for domestic wheat and soybeans, and trimmed its supply view for corn due to rising usage from the ethanol sector. (Reuters)
Glencore to restart Australia’s Lady Loretta zinc mine
Swiss-based trading house and miner Glencore plans the progressive ramp-up of its Lady Loretta zinc mine in Queensland, Australia, in the first half of 2018, the company said Tuesday on an investors conference call.
Lady Loretta is a high-grade underground zinc mine near Mount Isa in North Queensland. Production was suspended in 2015 because of falling zinc prices.
Glencore’s production guidance on zinc showed around 100,000 mt of zinc concentrate is expected to come back to the market in 2018 with the restart of Lady Loretta, representing 20% of the 500,000 mt of production suspended in 2015.
The mine will run at full capacity until 2020.
Glencore also announced the development of the Zhairem (Kazzinc) brownfield mine, with 160,000 mt/year capacity. It will replace/exceed the Maleevsky and Tishinsky mines in Kazakhstan, as they gradually reach their end of life close to 2023. First production from Zhairem is expected in 2020.
Overall, Glencore expects zinc production to rise 18% for the 2017-2020 period.The company said the market needed more zinc, so it did not expect negative impacts on pricing.
It said the market was ready to absorb production, but it would continue to monitor events and respond accordingly.
The LME three-months zinc price was $3,125/mt at Monday’s close, up 11.2% year on year. On a potential increase in production from the McArthur River mine in Australia, the company said “there was no additional guidance to increase production.” (Platts)
Javelin, Uniper and Blackjewel form JV, buy Noble Group’s US coal business
A joint venture formed Tuesday by Javelin Global Commodities, Uniper Global Commodities and producer Blackjewel has bought Noble Group’s US coal business.
Noble Group announced Tuesday it has sold its interests in MR Coal Marketing & Trading, which handles its domestic and international US coal book, to an unnamed company for about $34.5 million. Javelin confirmed to S&P Global Platts that its newly formed JV, Blackjewel Marketing and Sales Holdings, bought that coal business but provided no further comment.
One former Noble Group employee said “the writing has been on the wall for months” that the US coal marketing group would be dissolved by the end of the year as part of the company’s downsizing.
Hong Kong-based Noble Group has struggled this year, posting a $1.2 billion loss in the third quarter and a $3.05 billion loss through nine months. Co-CEO Jeffrey Frase resigned in November.
The company has shed essentially all its US-based business this year to cut costs during what it called a “strategic review” as it turned focus to the Asian commodities markets.
The sale of Noble Group’s US coal business to Blackjewel Marketing comes after the Noble Group sold its US-based natural gas and power business to Mercuria Energy Trading and its Americas-focused oil business to Vitol. MARKETING CAPP, PRB TONS
The formation of Blackjewel Marketing came a day after producer Contura Energy announced it had sold its Powder River Basin assets — the Eagle Butte and Belle Ayr mines in Wyoming — to Blackjewel, one of a group of coal companies controlled by Jeff Hoops.
A statement issued by Blackjewel Marketing on Tuesday said it will market 100% of Blackjewel’s 28 thermal and metallurgical mines in Kentucky, Virginia and West Virginia, as well as the Eagle Butte and Belle Ayr mines. The Central Appalachian mines produce 5 million st/year and Blackjewel said production is expected to grow to 11 million st/year by 2020, including 7 million st of metallurgical coal. Combined, the Eagle Butte and Belle Ayr mines produce about 35 million-40 million st/year.
“We expect the joint venture to make an immediate impact by developing new strategies for marketing our thermal and metallurgical coal in both the domestic and export markets,” Hoops, Blackjewel’s CEO, said in the statement.
Javelin will have exclusive marketing rights for domestic and export metallurgical coal and domestic thermal coal, with Dusseldorf, Germany-based Uniper the marketing rights for export thermal coal. Javelin and Uniper will both provide hedging, logistics, execution and optimization services to Blackjewel through the JV, which will be managed by Javelin.
“Javelin’s marketing agreement helps expand our range of metallurgical coals for our customers in the domestic and international steel industry,” Javelin CEO Peter Bradley said in the statement. “We are particularly pleased to work with a company like Blackjewel, which has such a strong history of growth and broad suite of high-quality met and steam coals, which fits well with Javelin’s desire to become a dynamic force in the global coal markets.”
Uniper CEO Keith Martin added that the “transaction represents a key step in our long-term strategic vision and a vehicle to continue to grow our presence in US coal markets.” (Platts)
BALTIC INDEX
Last Index Published Date: 13 DECEMBER 2017
Baltic Exchange Dry Index 1730 -13
Baltic Exchange Capesize Index 4211 -82
Baltic Exchange Panamax Index 1718 +46
Baltic Exchange Supramax Index 943 +1
Baltic Exchange Handysize Index 633 0
TIMECHARTER
‘Densa Cobra’ 2011 180491 dwt dely CJK 15/17 Dec trip via Australia redel Singapore-Japan $28,500 – Pacific Bulk
‘LDN Fortuna’ 2011 93318 dwt dely Yantai 14 Dec trip via East Australia redel Singapore-Japan $12,500 – cnr
‘Iolcos Pride’ 2010 87375 dwt dely Ghent spot trip via Baltic and Mediterranean min 40 days duration redel Skaw-Passero $23,000 – ACB
‘Semiramis’ 2013 82620 dwt dely Cai Mep 13/15 Dec trip via Australia redel India $14,000 – Fractal
‘Velsheda’ 2012 82172 dwt dely Phu My 14 Dec trip via Indonesia redel India $13,000 – Uniper – <recent>
‘Tomahawk’ 2017 82056 dwt dely retro Lianyungang 08 Dec trip via NoPac redel Singapore-Japan $13,250 – Cofco
‘Vulcania’ 2015 82036 dwt dely Swinoujscie 17 Dec trip via Baltic redel Continent $25,000 – Oldendorff
‘Sea Ace’ 2012 81755 dwt dely CJK 13 Dec Pacific round voyage redel Singapore-Japan $12,500 – MOL
‘Yangtze Xing Hua’ 2012 81678 dwt dely EC South America 19/20 Dec 2 laden legs redel Singapore-Japan $14,500 + $450,000 bb – Cargill
‘Sakizakya Leader’ Noble relet 2017 81657 dwt dely Tomogashima 14 Dec trip via Australia redel Singapore-Japan $13,000 – Chinese charterers
‘Medi Chiba’ 2016 81400 dwt dely Richards Bay 01/10 Jan trip redel India $13,500 + $350,000 bb – PWSL
‘Ming De’ 2014 81200 dwt dely Fangcheng 16 Dec trip via Indonesia redel Hong Kong $12,500 – Norden
‘Omicron Trader’ 2001 76623 dwt dely Fuzhou 14/19 Dec trip via Indonesia redel China $13,500 – cnr
‘Star Iris’ 2004 76466 dwt dely CJK 13/15 Dec 2 laden legs max 40 days redel Singapore-Japan$12,000 – Klaveness
‘Shao Shan 1’ 1997 74009 dwt dely Hong Kong 15/16 Dec trip via Indonesia redel South China $11,750 – DHL
‘Elpida’ 2001 73311 dwt dely EC South America end December trip Skaw-Passero $19,250 – Cofco
‘SBI Puma’ 2014 63542 dwt dely Hong Kong 14/15 Dec trip redel Singapore intention aggregates $9,500 – cnr
‘SBI Thalia’ 2015 63500 dwt dely CJK 12/13 Dec trip via Indonesia redel WC India $8,850 – cnr
‘Ocean Venus’ 2012 61464 dwt dely Recalada prompt trip redel Chittagong $15,000 + $500,000 bb – Agricorp
‘Desert Harrier’ 2017 60447 dwt dely Brownsville prompt trip via Mississippi redel north coast South America $21,000 – cnr
‘Warrior’ 2012 56785 dwt dely Gibraltar prompt trip via Morocco redel West Africa $17,000 – Thoresen
‘Jin Yi ‘ 2007 55496 dwt dely Ho Chi Minh 14/15 Dec trip via Indonesia redel China $9,500 – Century Scope
‘Dubai Knight’ 2007 55418 dwt dely Tuticorin 12 Dec two laden legs via South Africa redel west coast India $10,600 – cnr
‘Valovine’ 2016 52000 dwt dely Singapore prompt trip via Australia redel Indonesia intention salt $10,500 – cnr
‘Hamburg Pearl’ 2016 39359 dwt dely Singapore prompt trip redel Continent $6,000 for the 1st 62 days and $10,500 thereafter – cnr
PERIOD
‘Aeolian Fortune’ 2011 82099 dwt dely CJK 12/14 Dec 4/7 months redel worldwide $13,000 – Pacific Bulk
‘Athanasia C’ 2012 80988 dwt dely Vizag prompt 5/7 months redel worldwide $13,000 – Norden
‘Soroco’ 2008 78888 dwt dely CJK 01/15 Jan 12/15 months redel worldwide $11,500 – cnr
‘Sasebo Green’ 2014 77880 dwt dely Haldia prompt 3/5 months option further 6/8 months declarable from minimum period redel worldwide $13,250 – Norden
‘Lady Maria Ocean’ 2007 76596 dwt dely Nanao 24 Dec 5/7 months redel worldwide – cnr
‘Stahla’ 2012 76059 dwt dely Taichung 10/15 Dec min 4 / about 7 months redel worldwide $11,500 – Phaethon – <corrects rate 12/12>
‘Danae’ 2001 75106 dwt dely Oita 17/29 Dec 16/19 months redel worldwide $10,250 – cnr
COMMODITY NEWS
Oil prices rose as industry data showed a larger-than-expected drawdown in U.S. crude stockpiles, while expectations for an extended shutdown of a major North Sea crude pipeline also continued to bolster markets. Gold traded within a range after hitting the lowest in nearly five months in the previous session, with investors in a holding pattern ahead of the outcome of a two-day meeting of the U.S. Federal Reserve. London copper trading was little changed, as volumes thinned throughout the complex in the lead-up to holidays and ahead of a U.S. monetary policy meeting which may spell out higher interest rates. Chicago wheat futures ticked up, with the market steadying after dropping for the past seven sessions during which it touched its lowest since January due to pressure from record global inventories. The dollar slipped from a four-week high against a basket of currencies after a Democrat won a bitter fight for a U.S. Senate seat in deeply conservative Alabama, reducing Republicans’ already narrow Senate majority further. (Reuters)
TANKERS
EIA raises 2018 U.S. oil output forecast to highest on record
The U.S. Energy Information Administration said on Tuesday that the 2018 average oil production rate will hit the highest level for any year on record in the United States. In its monthly short-term energy outlook, the agency forecast that U.S. crude oil output will rise by 780,000 barrels per day (bpd) to 10.02 million bpd in 2018. Last month, it expected a 720,000 bpd year-over-year increase to 9.95 million bpd. (Reuters)
BHP hires four banks for U.S. shale exit ahead of early 2018 deadline
BHP, the world’s largest miner, has asked four investment banks to help it prepare for either a sale or spin-off of its underperforming U.S. shale oil and gas unit, with a view to taking a decision in early 2018, sources said. BHP said in August it aimed to sell its unconventional onshore shale assets in the Eagle Ford, Permian, Haynesville and Fayetteville basins, which it acquired at the height of the oil boom and could be valued at more than $10 billion. (Reuters)
Gasoline tankers face delays, diversions as Europe’s exports slow
Gasoline tankers are taking longer than usual to discharge in Amsterdam and at least one was diverted from the northwest European port as exports from the trading hub slow. The STI Hammersmith and the STI Milwaukee each loaded gasoline cargoes in Spain last month to go to Amsterdam but had to wait by up to six days outside the port. (Reuters)
Asia crude buyers turn to Russia, US on Forties shutdown
The closure of the North Sea Forties pipeline late Monday and a corresponding spike in the Brent-Dubai spread could prompt Asian sweet crude buyers to shift focus to Far East Russian and North American supplies as many light sweet oils priced against the European benchmark rapidly lose appeal to low sulphur grades linked to other global benchmarks including Dubai and WTI.
The Brent/Dubai Exchange of Futures for Swaps – a key indicator of Brent’s premium to the Middle Eastern benchmark that often serves as a barometer of general strength in the European crude complex – was assessed at $3.73/b Tuesday in Singapore, a jump of more than 70 cents/b from $3.02/b on Monday, and the highest level since $3.76/b on June 7, 2016.
Regional sweet crude traders noted that the latest benchmark price development would work heavily in favour of suppliers of Dubai-linked sweet crude grades, such as Far East Russian Sokol, Sakhalin Blend and ESPO Blend.
“All Dubai [-linked grades] should be supportive, especially ESPO Blend and Sokol,” said one Southeast Asian sweet crude trader.
In contrast, most regional crude grades are priced against Platts Dated Brent assessments and are less likely to be favoured as Brent futures contracts command a more than $3/b premium to Dubai swaps following the pipeline closure.
“If you ask me whether I would rather buy Dubai-linked crudes than Dated Brent or ICE Brent-linked, I will buy Dubai-linked,” said a Singapore-based crude trader.
The EFS spread widened in Asia as the Brent crude benchmark rallied late Monday in London after a spokesman for Forties pipeline operator Ineos said the shutdown is likely to last for weeks, implying a significant hit to global crude supplies.
The Forties pipeline, the UK’s largest crude oil supply artery, was closed in late European trade Monday for a “controlled shutdown” after a crack discovered late last week was found to have widened, the pipeline’s operator Ineos said.
Spot differentials for Far East Russian grades could outperform in the Asia Pacific sweet crude complex in the coming weeks as Asian refiners show preference for cheaper Dubai-linked feedstocks, while spot supply for loading in February appears tight, market participants said.
Light sweet Sokol crude will likely be closely monitored by many potential Northeast Asian buyers as the February loading program obtained by S&P Global Platts showed 11 cargoes of the Far East Russian grade being allocated, less than the 12-13 cargoes seen offered in the January program.
Indian upstream player ONGC Videsh recently emerged with its monthly tender, offering 700,000 barrels of Sokol crude for loading over February 9-15.
“That’s the next step to watch – I think Sokol [premiums] will jump,” the Southeast Asian trader said.
Medium sweet ESPO Blend could also receive plenty of support amid the fast-growing popularity of low sulphur grades priced against Dubai, traders said.
“The beauty of [Far East] Russian sweet grades is that they are the rare Dubai-linked oils offered in the regional market,” said a trader at a South Korean refining company.
Four Northeast Asian traders surveyed by Platts said they expect ESPO Blend for loading in February to receive premiums of around $3.50-$4.50/b to Platts Dubai later this month. In comparison, premiums for late-January ESPO cargoes were heard to have changed hands at premiums of around $3.85/b to Platts Dubai.
Demand for light sweet US crude could also pick up sharply as some South Korean and Chinese refining companies seek alternatives to North Sea and Mediterranean grades.
South Korean refining companies combined have been purchasing at least 2 million-3 million barrels/month of North Sea crude to date this year, but the companies could opt to completely replace European supply with light sweet grades from the US, at least for the next few months, said a trading manager based in Seoul.
“The Brent-WTI premium spiked so there’s little price merit [for North Sea arbitrage deals],” the trader added.
Apart from the widening Brent-Dubai EFS spread, the latest North Sea development also led to the ICE Brent/WTI spread widening to settle at $6.64/b Monday from less than $5/b on November 4. The spread stood at $6.98/b as of 0830 GMT Tuesday.
A weaker WTI versus Brent and Dubai typically makes North and Central American crude grades priced against the US benchmark more competitive.
“I suspect Asian refiners could ramp up US crude purchases because WTI pricing remains very attractive,” said a sweet crude trader based in Beijing.
Since the beginning of fourth quarter, Asian refiners have been searching for affordable North American crude supplies for processing in winter, and at least four VLCC vessels carrying WTI Midland, Eagle Ford crude and condensate for lifting in November will make the journey to the East, three market sources familiar with the matter told Platts.
In addition, regional sweet crude traders noted Indian refiners that typically buy large volumes of Brent-linked West African grades could also shift their focus to light sweet US crude, at least in the near term.
Earlier this month, India’s state-owned Mangalore Refinery and Petrochemicals Ltd. struck its maiden deal for US crude by contracting 1 million barrels of the high sulphur Southern Green Canyon grade for delivery over February 1-10.
MRPL joined the league of state-owned refiners such as Indian Oil Corp. and Hindustan Petroleum Corp. Ltd. that have bought US crude since July. (PLatts)
Delays expected to LPG liftings following Forties pipeline shutdown
Liftings of propane and butane exports from Ineos’ Grangemouth, Scotland, export terminal are expected to be delayed for weeks following a shutdown of the UK Forties oil pipeline Monday evening, according to market sources.
A hairline crack on the 600,000 b/d Forties pipeline will result in a closure for a “number of weeks,” a spokesman for operator Ineos said Tuesday. The expected length of the shutdown is not yet clear as the company is still investigating the extent of the leak, Ineos added.
That is expected to result in delays on both propane and butane exports out of the Grangemouth terminal, which have already been affected by an extended period of maintenance on the field-grade export terminal, according to market sources.
Works on the terminal were expected to last roughly a month over the summer, but were repeatedly extended into mid-November, with some initial liftings pushed back into December, according to market sources.
“I imagine there will be delays to liftings, maybe even adding to the delays that were caused by the jetty work and commissioning taking longer than expected,” said a source.
Those delays mainly affect the Northwest Europe butane market, of which Grangemouth is a major supplier. Scarce product throughout the autumn had helped support prices for vessels loading in the region, but those prices have recently softened due to weak gasoline blending buying on a spot basis, as the arbitrage from Europe to the US is closed, restricting demand. (Platts)
SHIPPING
BIMCO: Tanker Shipping Benefits from Rise in US Crude Oil Exports
Increased demand from Asia and Europe has seen US seaborne export of crude oil surpass the US seaborne export of oil products in terms of billion tonne miles in September and October 2017.
The development, which occurred less than two years after the US government lifted their restrictive policy on crude oil exports in December 2015, is due to US crude oil being exported twice the sailing distance of US oil products.
BIMCO informed that in October the seaborne exports of crude oil amounted to 46 billion tonne miles whereas the US export of oil products was equivalent to 43 billion tonne miles.
Despite the US seaborne exports of crude oil, being half the amount of seaborne oil product exports in October 2017 in terms of volume, it is now more important to the tanker shipping industry.
“The increased US crude oil exports during 2017 benefits the crude oil tanker shipping industry. The demand on that trade is up by 151% compared to last year. Not only are the volumes more than doubling, the sailing distances are increasing as well,” Peter Sand, BIMCO’s Chief Shipping Analyst, said.
“US crude oil exports are now more important to shipping than US oil product exports. Asia and Europe are the importers demanding most US crude oil in 2017. With Asia in particular being responsible for the longer sailing distances,” Sand added.
For the first 10 months of 2017, the US seaborne export of crude oil has increased 151% compared to same period last year. This amounts to an additional 20 million tonnes of crude oil being available to the shipping market, equivalent to 7.5 VLCC cargoes being exported more per month compared to last year.
While the average distance per exported tonne of US crude oil for the first 10 months of 2016 was 4,277 nautical miles, it has been 7,090 nautical miles for the same period in 2017.
China, being the main importer of US crude in 2017 is not only due to rising Chinese crude oil demand. China imported 55% from the Middle East in 2015, whilst importing 45% from the Middle East during the first 10 months of 2017.
“China is diversifying their crude oil supplier portfolio by shifting away from being too dependent on Middle Eastern crude oil,” Sand said, adding that the sailing distance to China is double the distance of Middle Eastern export to China and thereby tonnage is tied up for longer periods, benefitting crude oil tanker demand. (World Maritime News)
Chinese Shipbuilders Claim the Throne
Chinese shipbuilders have beaten their Korean counterparts this year having snapped up the biggest share of orders, totalling in 290 vessels, data from VesselsValue shows.
The country’s orderbook has hit USD 10.2 billion mark.
South Korean builders are lagging behind considerably behind their Chinese competitors having collected orders for 170 ships. However, the ships ordered at Korean yards have attracted an investment of USD 11.8 billion, due to the fact that the Big Three builders- DSME, HHI, and SHI- specialize in constructing more technologically advanced ships.
Korean shipbuilders have held the top spot on the global shipbuilding scene for years, in particular during the 2011-2015 period.
Attractive pricing has been one of the key strategic advantages employed by the Chinese shipbuilders, who have also made strides in acquiring the required know-how for the construction of ultra-large containerships.
A testament to this is CMA CGM’s decision to order nine 22,000 TEU giants at China’s Hudong-Zhonghua Shipbuilding and Shanghai Waigaoqiao Shipbuilding (SWS), which raised many eyebrows in the market, including that of the Korean yards.
What is more, these will be the largest containerships to be powered by liquefied natural gas, a major technological undertaking for Chinese shipbuilders as well.
Japan has secured the third place in the ranking, having received newbuildings orders for 97 ships, worth USD 2.6 billion.
The Philippine and Vietnamese shipbuilders are ranked as the fourth and fifth shipbuilding nations respectively based on their newbuilding tally for this year.
Owners have placed orders for a total of 27 ships with Philippine shipyards, while their Vietnamese counterparts won orders for 13 ships, totalling in USD 370 million, according to VesselsValue. (World Maritime News)
Capes pass $30,000 mark, hitting four-year highs
Capesize freight rates crashed through the $30,000 mark yesterday, hitting highs not seen for four years. Brokers pointed to the tight supply situation in the Atlantic basin for the rapid improvement in fortunes for the cape market seen over the past week. Gas shortages in China have also sparked a notable uptick in coal imports over the past six weeks.
The bullish tone in dry bulk was noticeable at last month’s Maritime CEO Forum held in Hong Kong where Keith Denholm, managing director at Lorentzen & Stemoco Singapore, commented: “We are on a steady path of growth. Steel prices are soaring. Raw material prices are still relatively low. China is lacking in quality coking coal and iron ore – their imports are going to continue to grow. A lot of infrastructure projects shelved earlier are coming back.”
During the same dry bulk panel, Angad Banga, the COO at the Caravel Group, said: “We have seen some improvements in the underlying fundamentals.” Banga said there had been most notable growth in coal and grains. “Underlying demand in China is strong,” he added. (Splash247)
Declaration on shipping emissions signed by 35 nations in Paris
Shipping proved a central plank of discussion at the Emmanuel Macron convened One Planet climate summit in Paris yesterday.
The Tony De Brum declaration was launched on Tuesday, named after a politician from the Marshall Islands who fought hard to get shipping emission regulations in place before he died earlier this year. The declaration states shipping must set a level of ambition for the sector that is compatible with that of the Paris Agreement, including a peak on emissions in the short-term and then reducing them to neutrality towards the second half of this century.
The declaration was signed by 35 countries including some signatories such as Chile who have been seen to have held up the emissions debate at the IMO in recent months.
“This is a welcome commitment to deliver a climate deal for the shipping sector that is ambitious and in line with the goals of the Paris Agreement,” said John Maggs from NGO Seas At Risk. “It’s significant that EU member states have been joined by Mexico, Chile, and others to signal the importance of getting next year’s IMO carbon cutting agreement right. As the declaration makes clear, time is running out for IMO and the shipping industry to deliver a fair contribution to tackling the climate crisis. A 2018 deal in line with limiting warming to below 1.5C requires a strong long term decarbonisation goal and short-term measures, like speed reduction, that will result in immediate emissions reductions.”
IMO member states are set to meet in April to thrash out a deal to cut shipping’s emissions.
Simon Bennett, director of policy and external relations at the International Chamber of Shipping (ICS), commented: “ICS welcomes the fact governments recognise that IMO is the only forum which can agree a suitably ambitious CO2 reduction strategy for international shipping, and the vital need for IMO member states to deliver at the critical MEPC meeting next April. But it’s important that the signatories recognise that this a political negotiation at IMO which requires them to understand the legitimate concerns of emerging economies about the potential impacts on trade and their continuing economic development, consistent with the UN Sustainable Development Goals.” (Platts)
Abu Dhabi Ports Signs Fujairah Port Development Deal
Port developer and operator Abu Dhabi Ports has signed an AED 500 million (USD 136.1 million) agreement to develop the Port of Fujairah.
Under the deal, the company is to develop the port infrastructure and deepen the berths to -16.5 meters as the port prepares to welcome larger vessels.
The works would also include building a 300,000 sqm yard of storage space, as well as an additional 1 kilometer quay to accommodate the expected growth in the number of ships arriving to the port.
In June 2017, Abu Dhabi Ports signed a 35-year concession deal to develop, manage and operate the Port of Fujairah. Through the establishment of Fujairah Terminals, the agreement granted Abu Dhabi Ports the exclusivity to enhance existing infrastructure in addition to managing all container, general cargo, RoRo and cruise ships in the port.
The port operator is set to launch the development of berths and yards in Fujairah in 2018, during which the port is expected to remain operational. Additional capacity and new quay cranes are scheduled to begin operations in 2021.
Fujairah is expected to handle 1 million TEUs and 700,000 tons of general cargo by 2030. (World Maritime News)
S&P
LGR di Navigazione exits MR segment, eyes gas
Naples-headquartered LGR di Navigazione is on the verge of selling the last two tankers in its fleet.
Brokers report that the Italian shipping company controlled by Carlo Pontecorvo is in the process of offloading sister ships Cenito and Posillipo. The 53,000 dwt MR2 tankers are set to change hands to an undisclosed buyer for some $18m each.
A spokesperson for LGR told Splash: “Negotiations are still pending and any deal is unlikely to be closed before the Christmas period.”
Allied Shipbroking in its latest report has Modi Mano’s Cyprus-based M Sea Capital as the likely buyer.
A statement sent by the CEO Leonardo Rondinella also added that while exiting the tanker business, Pontecorvo is considering investing in a different shipping market, namely gas.
Earlier this year LGR sold another pair of MR tankers – Miseno and Nisida – to the newly formed Danish investment vehicle Navigare Capital Partners. (World Maritime News)