Asian MR tanker rates hit six-year high

Rates to ship oil products within Asia have achieved a six-year high, with time-charter equivalent earnings averaging USD26,378.
Shipments out of South Korea have been leading the gains.
The Baltic Exchange’s BITR-Asia index assessed the South Korea-Singapore rate at USD15,855/day on 14 July, up

Iran deal impact ‘limited’

The Iranian nuclear accord will not provide a major lift to crude tanker rates in the near or intermediate term, according to several industry analysts.
The landmark agreement finalised on 14 July will be submitted to the UN Security Council for approval. Ninety days after approval, sanctions would

Daewoo Shipbuilding Shares Tumble

By Reuters 2015-07-14 20:34:12

South Korea’s Daewoo Shipbuilding & Marine Engineering shares fell 12 percent on Wednesday after a newspaper reported the company had losses of about two trillion won ($1.75 billion) that had not been booked.

Daewoo, the world’s largest shipyard in terms of tonnage of ships on order as of May, had accumulated the losses from businesses such as construction of offshore plants and semisubmersible drilling rigs for the Arctic, the Chosun Ilbo reported, citing an unnamed government source and an unnamed official in Korea Development Bank, the shipbuilder’s major shareholder.

A Daewoo spokesman said some losses were expected and the company was reviewing the matter, but the extent of the losses had not been determined and the company expected to file its findings when it announced quarterly earnings as late as early August.

($1 = 1,142.3400 won)


E.U. Funds Next Step in Digital Traffic Control

By MarEx 2015-07-14 19:24:50

The E.U. has decided to contribute 21 million Euros ($23 million) to the Sea Traffic Management (STM) Validation Project. STM is developing the information technology platforms needed to boost voyage planning and traffic flow in shipping. The project aims to overcome many of the current challenges in communication and information sharing that exist between stakeholders in the maritime transport industry.

Test beds in Northern Europe and Mediterranean Sea will engage 300 vessels, 10 ports of different sizes and three shore centers. These will validate the STM concept and pave the way for smooth deployment of new collaborative services previously unknown to sea transport but existing for many years in other transport sectors.

The preceding E.U. MONALISA projects have brought advancements in technology and digital innovation to the maritime sector. The first MONALISA project, implemented in 2010-2013, showed that providing vessels with the ability to see each other’s planned routes gives navigators a more complete picture of how surrounding vessels will influence their onward voyage.

From this picture, shore services are able to retrieve valuable information and offer advice to vessels on their routes, such as recommendations to avoid congestion in areas with high traffic, avoidance of environmentally sensitive areas and maritime safety information.

The MONALISA 2.0 project has defined STM, assessed the strengths and weaknesses of the current maritime ship and transport systems, operations and interactions and defined a target concept and key performance indicators for four STM strategic enablers:

1. Voyage management services will provide support to individual ships in both the planning process and during a voyage including: route planning, route exchange and route optimization services.

2. Flow management services will support both land organizations and ships in optimizing overall traffic flow through areas of dense traffic and areas with particular navigational challenges.

3. Port Collaborative Decision Making (Port CDM) services will increase the efficiency of port calls and departures for all stakeholders through improved information sharing, situational awareness, optimized processes and collaborative decision making during port calls and departures.

4. SeaSWIM (System Wide Information Management) will ensure interoperability of (STM) services facilitating data sharing using a common information environment and structure (e.g. the Maritime Cloud).

The STM concept has been defined within the MONALISA 2.0 project where a technical protocol for route exchange has been developed and is undergoing international standardization. This is a pre-requisite for further development and deployment of Sea Traffic Management.

Europe has a leading position in traffic management solutions and e-Navigation globally. The potential to explore the benefits of STM and deploying STM Services are great, both for European industry and the whole global society.

“True demonstrations of the value of Sea Traffic Management services will help avoid setbacks in deployment and make industry and other important stakeholders engage fully,” says Magnus Sundström, Project Leader of the STM Validation Project.

The STM Validation Project encompasses 39 partners (private, public and academic) from 13 countries and with a total budget of 43 million Euros ($47 million). The project will run from 2015 to 2018.

More information on the project is available here.


Fatal Accident on Skandi Pacific

By MarEx 2015-07-14 18:33:43

DOF Management has confirmed that there was a fatal incident on board the AHTS Skandi Pacific on Tuesday, 175 Kilometers off the West Australian Coast.

The company has not provided details of the accident, but stated that operations were suspended immediately. The emergency response team was mobilized, and the vessel is now on its way back to port.

DOF issued a statement saying: “People’s safety and the welfare of their families is our priority. We are doing everything we can to support the families and other crew members. The Skandi Pacific will be met by DOF representatives and a team of professional counselors will be on-hand to offer support and care for the crew on board. An investigation will commence immediately.”

The Skandi Pacific is a high powered anchor handling vessel designed for field installation operations across a wide range of water depths and environmental conditions. It can accommodate 27 people.