Gener8 sets IPO target price

Peter Georgiopoulos-led Gener8 hopes to net USD246 million from its initial public offering, according to a new securities filing.
On 15 June, the tanker owner disclosed plans to sell 15 million shares for USD17-19/share, with 2.25 million additional shares available through the underwriter option.

US LNG exports spur orders

Teekay LNG Partners has ordered two newbuilds after sealing a charter agreement with BP for US export service.
BP Shipping will charter one LNG carrier from Teekay for 13 years and has an option for a second vessel under similar terms, exercisable by 30 September. BP will use the vessel or vessels

Carnival Orders World’s First LNG-powered Cruise Ships

By MarEx 2015-06-15 11:42:02

Carnival Corporation has signed a multi-billion dollar contract with Meyer Werft for four LNG-powered cruise ships, which will also have the largest guest capacity in the world.

The four new ships will be the first in the cruise industry to use LNG in dual-powered hybrid engines to power the ship both in port and on the open sea. LNG will be stored onboard and used to generate 100 percent power at sea. Using LNG to power the ships in port and at sea will eliminate emissions of soot particles and sulfur oxides.

Each of the four next-generation ships will be able to accommodate 6,600 guests. They will additionally have over 5,000 lower berths and will exceed 180,000 gross tons. A major component of the next-generation design involves making much more efficient use of the ship’s spaces, creating an enhanced onboard experience for guests.

Carnival Corporation CEO Arnold Donald said the contract is consistent with the company’s measured capacity growth strategy to replace ships with less efficient capacity with newer, larger and more fuel efficient vessels over time.

“We are looking forward to executing on the next step in our fleet enhancement plan,” said Donald. “At a cost per berth in line with our existing order book, these new ships will enhance the return profile of our fleet. These are exceptionally efficient ships with incredible cabins and public spaces featuring a design inspired by Micky Arison and Michael Thamm and developed by our new build teams.” Arison is chairman of the board of directors for Carnival Corporation & plc and Thamm is CEO of the Costa Group, which includes AIDA Cruises and Costa Cruises.

Meyer Werft will build two ships of the ships in Germany and two at its shipyard in Turku, Finland. Each new ship will be specifically designed and developed for the brand and the guests it will serve.

Bernard Meyer, CEO of Meyer Werft, said, “In past years, we have built seven highly successful ships for AIDA Cruises. We are honored that Carnival Corporation has entrusted us with the implementation of this ambitious shipbuilding program, and we look forward to building these four magnificent ships.”

The contract with Meyer Werft is part of larger previously announced strategic memo of understanding with leading shipbuilders Meyer Werft and Fincantieri S.p.A for nine new ship orders between 2019 and 2022.

The ten brands comprising Carnival Corporation will operate 100 ships in 2015 totaling 219,000 lower berths with eight new ships scheduled to be delivered between 2016 and 2018, along with four additional new ships on order between 2019 and 2022.

Delayed Reporting Complicates Search for Hijacked Tanker

By MarEx 2015-06-15 10:19:37

A 10 hour delay in incident reporting has complicated the search for a hijacked product tanker, according to Malaysian authorities.

The 7,301 dwt Orkim Harmony fell out of communication around 9:00pm June 11, but the Malaysian Maritime Enforcement Agency (MMEA) was only informed of the incident the next morning. Vice Admiral Ahmad Puzi Ab Kahar, deputy director general of the operations unit of the MMEA, criticized the shipowner for waiting too long before contacting authorities.

“Orkim only alerted authorities 10 hours after they lost contact with Orkim Harmony … The lapse after they lost communication made it very difficult for us,” he said.

Puzi went on to confirm that the missing tanker had been attacked by pirates and that it was believed to have been hijacked for economic reasons. All 22 crewmen compromised of 16 Malaysians, five Indonesians and one Myanmar citizen are still missing.

The MMEA launched a search and rescue operation last week to canvas a 20,000 sq km (7,722 sq mile) area. No sign of the vessel was detected, so authorities have expanded the search area to 50,000 sq km (19,305 sq mile). The MMEA has also asked for help from Vietnam, Singapore, Indonesia, Australia, America and Thailand in locating the ship.

Mohd Najib Tun Razak, Prime Minister of Malaysia expressed deep concern of the vessel’s disappearance saying on his official Twitter page, “I am distressed by the news of the missing Malaysian-owned tanker. I pray for the safety of the crews. The government will deploy our resources to locate it.”

This is the second incident involving product tankers owned by Orkim Ship Management in under two weeks. On June 4 armed pirates hijacked the Orkim Victory within a couple miles of the Harmony’s last known location, stealing over 770 metric tons of Automotive Diesel Oil (ADO).

Vice Admiral Ahmad Puzi noted that it would be more difficult for the hijackers to siphon off the RON 95 gasoline from the Harmony than it was to steal diesel from the Victory.

“In the earlier Orkim Victory case, the pirates siphoned the diesel via ship-to-ship transfer … The RON 95 will be more difficult to transfer as it is highly flammable,” he said.

“It needs special safety requirements and equipment. We believe they (pirates) are looking for facilities to transfer the petrol to their ‘customers’ … The closest registered facilities are in Thailand, Brunei, Vietnam,” he said.

Attacks on merchant naval vessels have been increasing in Asia, data from the Regional Cooperation Agreement on Combating Piracy and Armed Robbery against Ships in Asia (ReCAAP) shows.

There were 80 actual and attempted pirate attacks in Asia between January and May, up nearly 20 per cent compared with 67 in the same period last year, according to the most recent ReCAAP figures.