Copenhagen
DenmarkWeather
Latest News
May 9, 8:44
Maersk gains from U.S. military’s $11.5 bln war shipments
The Alliance St...
seagull May 9, 8:44
Maersk gains from U.S. military’s $11.5 bln war shipments
The Alliance St. Louis docked at the Port of Beaumont in Texas this month and rolled out 179 armored trucks. Two weeks later, it was at a Delaware port loading 1,000 General Motors Co. cars and trucks bound for overseas, Bloomberg reports. This mixing of military and commercial cargo is a shift for the 11-deck container ship operated by A.P. Moeller-Maersk A/S. (MAERSK
Until 2008, it ferried commercial freight between the U.S. and Asia. Maersk dropped that route for one to the Middle East, where the Alliance St. Louis picks up desert-tan trucks and other equipment that survived the Iraq war.
The Department of Defense is increasingly shipping war supplies on commercial lines. Since 2001, companies such as Maersk and Neptune Orient Lines Ltd. (NOL) have been awarded at least $11.5 billion in defense contracts and have handled more than 90 percent of all military cargo to and from Iraq and Afghanistan.
“The Defense Department doesn’t have enough ships by itself to do all of that in a timely manner,” Gordon Holder, a retired Navy vice admiral, said in an interview. “It would take a decade, it would be more expensive and it would detract from its ability to do other missions. The partnership with our commercial carriers is essential.”
The company, based in Copenhagen, received almost half the military’s $1.82 billion in contracts last year to ship supplies and equipment around the globe, most of it tied to Iraq and Afghanistan, according to Defense Department data. Maersk also arranges rail and truck transport as part of the agreements.
Maersk got $800 million from the Pentagon in the fiscal year that ended Sept. 30, up almost sixfold from the previous year, according to data compiled by Bloomberg. That represents 1.3 percent of the company’s $60.2 billion in 2011 revenue, and 2.9 percent of its container shipping business.
While the military accounts for a small share of Maersk’s revenue, the work tends to offer higher margins because of its specialized nature, said Jacob Pedersen, an analyst with Sydbank A/S (SYD in Denmark. It also may help offset a commercial shipping slowdown tied to a glut of new vessels, he said.
“It is quite logical that the Afghanistan exit would increase the business done with Maersk Line -- but of course only temporarily,” Pedersen said in an e-mail.
Afghanistan Withdrawal
American President Lines Ltd., part of Neptune Orient Lines Ltd. of Singapore, received $421 million in defense contracts in fiscal 2011. That represented 4.6 percent of the the parent company’s revenue of $9.21 billion in 2011, and 5.4 percent of Neptune’s shipping business.
A spokesman for American President Lines didn’t return an e-mail request for comment.
With the Iraq war’s end last year and the planned withdrawal from Afghanistan in 2014, the market may not support the number of commercial ships now operating, according to Eric Ebeling, vice president and general manager at American Roll-on Roll-off Carrier LLC, part of American Shipping & Logistics Group Inc. of Park Ridge, New Jersey.
The fleet increased to 60 ships from 47 ships in 2005 to accommodate war demand, yet military cargo volume will probably decline by 50 percent or more by 2015, he said.
“The present fleet size and cargo pool are becoming unsustainable,” Ebeling said in an interview. If the government doesn’t re-examine the size of the fleet and how much it pays carriers, “some may reconsider participating in the program.”
Container Fees
The military estimates it has saved $5.7 billion on equipment transportation costs since fiscal 2003, partly by relying more on the cheaper and more efficient commercial carriers, according to the U.S. Transportation Command, based at Scott Air Force Base in Illinois.
Even so, U.S. lawmakers accuse the Defense Department of wasteful spending on shipping containers. The containers are supposed to be returned to the commercial lines within 15 days. Instead, troops in Afghanistan sometimes use them for storage, shelter or even offices.
The Defense Department has spent at least $649 million on container late fees since fiscal 2001, according to a Jan. 30 letter co-signed by Senator Tom Carper, a Democrat from Delaware.
Wasting “hundreds of millions of scarce taxpayer dollars as a result of late fees and poor contracting on shipping containers is unacceptable,” Carper said in an e-mail.
Port of Beaumont
Beaumont is the largest U.S. commercial port handling gear from the war zones, according to John Roby, a port spokesman. About 40 miles upstream of the Gulf of Mexico, it’s centrally located with rail and highway access to military bases and depots across the country. Commercial ports such as Charleston, South Carolina, and Jacksonville, Florida, also handle war equipment.
As the U.S. military’s shipping business has grown, the Navy’s gray warships have gradually been displaced by commercial vessels at Beaumont and other ports.
“When the war first started, it was all gray bottoms,” Jim Heldreth, a transportation officer for an Army battalion based at the Texas port, said in an interview, using the local term for the warships’ color. He said he hadn’t seen a Navy ship in months.
Alliance St. Louis
The Alliance St. Louis, which is 656 feet long and capable of carrying 6,500 cars, typifies the commercial vessel being used by the military.
It is part of a fleet of so-called “ro-ro” ships owned by Jericho, New York-based Alliance Navigation LLC and operated by Farrell Lines, part of Maersk Line Ltd. The term is short for roll-on, roll-off, applied to vehicular cargo.
The ship left the Texas port on April 2. From Beaumont, it headed up the East Coast, docking in Jacksonville, Charleston and Wilmington, Delaware, before crossing the Atlantic for stops including Egypt, Jordan, Saudi Arabia and Kuwait.
Companies often combine military and commercial cargo on the same ship to maximize space and profit, said Army Lieutenant Colonel Michael Arnold, the battalion commander.
“You would have never heard of anything like that during the Gulf War, with GM cars on the upper deck and MRAPs down below,” he said in an interview, using the military moniker for Mine Resistant Ambush Protected trucks.
Last Truck
With the last U.S. armored truck returning from Iraq scheduled to arrive at Beaumont next month, the military and its shipping contractors are now focusing on Afghanistan.
“If the drawdown takes place the way we envision it, there will be some opportunities,” Rick Boyle, a vice president at Maersk Line Ltd., a U.S. subsidiary of Maersk, said of the exit from Afghanistan.
Pulling out of the landlocked, mountainous country is more expensive after Pakistan closed two key NATO supply routes, Navy Commander Bill Speaks, a Pentagon spokesman, said in an interview. The price of moving supplies through the north is $15,800 per container, compared to $6,200 per container through Pakistan, he said.
Pakistan in November closed the routes after a coalition air strike killed two dozen Pakistani soldiers at a border post. The decision forced the U.S. and NATO allies to move equipment from a longer, northern route through countries such as Tajikistan, Uzbekistan and Russia.
“It is two completely different worlds,” Navy Captain Kevin Carrier, operations director for the Military Surface Deployment and Distribution Command, said of the differences between the Afghanistan and Iraq drawdowns. “It will be much, much more difficult.”
en.portnews.ru
Maersk gains from U.S. military’s $11.5 bln war shipments
The Alliance St. Louis docked at the Port of Beaumont in Texas this month and rolled out 179 armored trucks. Two weeks later, it was at a Delaware port loading 1,000 General Motors Co. cars and trucks bound for overseas, Bloomberg reports. This mixing of military and commercial cargo is a shift for the 11-deck container ship operated by A.P. Moeller-Maersk A/S. (MAERSK
Until 2008, it ferried commercial freight between the U.S. and Asia. Maersk dropped that route for one to the Middle East, where the Alliance St. Louis picks up desert-tan trucks and other equipment that survived the Iraq war.The Department of Defense is increasingly shipping war supplies on commercial lines. Since 2001, companies such as Maersk and Neptune Orient Lines Ltd. (NOL) have been awarded at least $11.5 billion in defense contracts and have handled more than 90 percent of all military cargo to and from Iraq and Afghanistan.
“The Defense Department doesn’t have enough ships by itself to do all of that in a timely manner,” Gordon Holder, a retired Navy vice admiral, said in an interview. “It would take a decade, it would be more expensive and it would detract from its ability to do other missions. The partnership with our commercial carriers is essential.”
The company, based in Copenhagen, received almost half the military’s $1.82 billion in contracts last year to ship supplies and equipment around the globe, most of it tied to Iraq and Afghanistan, according to Defense Department data. Maersk also arranges rail and truck transport as part of the agreements.
Maersk got $800 million from the Pentagon in the fiscal year that ended Sept. 30, up almost sixfold from the previous year, according to data compiled by Bloomberg. That represents 1.3 percent of the company’s $60.2 billion in 2011 revenue, and 2.9 percent of its container shipping business.
While the military accounts for a small share of Maersk’s revenue, the work tends to offer higher margins because of its specialized nature, said Jacob Pedersen, an analyst with Sydbank A/S (SYD
in Denmark. It also may help offset a commercial shipping slowdown tied to a glut of new vessels, he said.“It is quite logical that the Afghanistan exit would increase the business done with Maersk Line -- but of course only temporarily,” Pedersen said in an e-mail.
Afghanistan Withdrawal
American President Lines Ltd., part of Neptune Orient Lines Ltd. of Singapore, received $421 million in defense contracts in fiscal 2011. That represented 4.6 percent of the the parent company’s revenue of $9.21 billion in 2011, and 5.4 percent of Neptune’s shipping business.
A spokesman for American President Lines didn’t return an e-mail request for comment.
With the Iraq war’s end last year and the planned withdrawal from Afghanistan in 2014, the market may not support the number of commercial ships now operating, according to Eric Ebeling, vice president and general manager at American Roll-on Roll-off Carrier LLC, part of American Shipping & Logistics Group Inc. of Park Ridge, New Jersey.
The fleet increased to 60 ships from 47 ships in 2005 to accommodate war demand, yet military cargo volume will probably decline by 50 percent or more by 2015, he said.
“The present fleet size and cargo pool are becoming unsustainable,” Ebeling said in an interview. If the government doesn’t re-examine the size of the fleet and how much it pays carriers, “some may reconsider participating in the program.”
Container Fees
The military estimates it has saved $5.7 billion on equipment transportation costs since fiscal 2003, partly by relying more on the cheaper and more efficient commercial carriers, according to the U.S. Transportation Command, based at Scott Air Force Base in Illinois.
Even so, U.S. lawmakers accuse the Defense Department of wasteful spending on shipping containers. The containers are supposed to be returned to the commercial lines within 15 days. Instead, troops in Afghanistan sometimes use them for storage, shelter or even offices.
The Defense Department has spent at least $649 million on container late fees since fiscal 2001, according to a Jan. 30 letter co-signed by Senator Tom Carper, a Democrat from Delaware.
Wasting “hundreds of millions of scarce taxpayer dollars as a result of late fees and poor contracting on shipping containers is unacceptable,” Carper said in an e-mail.
Port of Beaumont
Beaumont is the largest U.S. commercial port handling gear from the war zones, according to John Roby, a port spokesman. About 40 miles upstream of the Gulf of Mexico, it’s centrally located with rail and highway access to military bases and depots across the country. Commercial ports such as Charleston, South Carolina, and Jacksonville, Florida, also handle war equipment.
As the U.S. military’s shipping business has grown, the Navy’s gray warships have gradually been displaced by commercial vessels at Beaumont and other ports.
“When the war first started, it was all gray bottoms,” Jim Heldreth, a transportation officer for an Army battalion based at the Texas port, said in an interview, using the local term for the warships’ color. He said he hadn’t seen a Navy ship in months.
Alliance St. Louis
The Alliance St. Louis, which is 656 feet long and capable of carrying 6,500 cars, typifies the commercial vessel being used by the military.
It is part of a fleet of so-called “ro-ro” ships owned by Jericho, New York-based Alliance Navigation LLC and operated by Farrell Lines, part of Maersk Line Ltd. The term is short for roll-on, roll-off, applied to vehicular cargo.
The ship left the Texas port on April 2. From Beaumont, it headed up the East Coast, docking in Jacksonville, Charleston and Wilmington, Delaware, before crossing the Atlantic for stops including Egypt, Jordan, Saudi Arabia and Kuwait.
Companies often combine military and commercial cargo on the same ship to maximize space and profit, said Army Lieutenant Colonel Michael Arnold, the battalion commander.
“You would have never heard of anything like that during the Gulf War, with GM cars on the upper deck and MRAPs down below,” he said in an interview, using the military moniker for Mine Resistant Ambush Protected trucks.
Last Truck
With the last U.S. armored truck returning from Iraq scheduled to arrive at Beaumont next month, the military and its shipping contractors are now focusing on Afghanistan.
“If the drawdown takes place the way we envision it, there will be some opportunities,” Rick Boyle, a vice president at Maersk Line Ltd., a U.S. subsidiary of Maersk, said of the exit from Afghanistan.
Pulling out of the landlocked, mountainous country is more expensive after Pakistan closed two key NATO supply routes, Navy Commander Bill Speaks, a Pentagon spokesman, said in an interview. The price of moving supplies through the north is $15,800 per container, compared to $6,200 per container through Pakistan, he said.
Pakistan in November closed the routes after a coalition air strike killed two dozen Pakistani soldiers at a border post. The decision forced the U.S. and NATO allies to move equipment from a longer, northern route through countries such as Tajikistan, Uzbekistan and Russia.
“It is two completely different worlds,” Navy Captain Kevin Carrier, operations director for the Military Surface Deployment and Distribution Command, said of the differences between the Afghanistan and Iraq drawdowns. “It will be much, much more difficult.”
en.portnews.ru
Feb 28, 5:17
Maersk Line posts 2011 net loss of $521 million
A.P. Moeller-Maersk A/S said i...
seagull Feb 28, 5:17
Maersk Line posts 2011 net loss of $521 million
A.P. Moeller-Maersk A/S said its container line, the world’s largest, will report a loss again this year, depressed by lower freight rates and slower market growth, Bloomberg reports. Maersk’s container division had a net loss of 2.88 billion kroner ($521 million) last year compared with a profit of 14.9 billion kroner a year earlier, the Copenhagen-based company said today in a statement. That exceeded an estimated loss of 2.28 billion kroner in a survey by SME Direkt. The container result for 2012 will be “negative” as overcapacity will continue to hurt the market, Maersk said today.
Global rates have dropped because the industry has added too many ships in anticipation of an economic recovery, causing overcapacity. Container demand growth will slow to as little as 4 percent this year compared with 7 percent in 2011, while expansion on Maersk’s most important lane, Asia to Europe, will be lower than the global average, the company said today. Maersk also predicted that earnings from its oil division will decline.
“We agree with Maersk on the challenges seen in the liner industry and while the recent rate increases will lift earnings somewhat, it does not seem to be sustainable,” Erik Nikolai Stavseth, an Oslo-based analyst at Arctic Securities, said in a note to clients today.
Maersk fell as much as 4.4 percent to 43,520 kroner in Copenhagen trading and was down 2.3 percent at 10:42 a.m. That pared the stock’s gain this year to 17 percent.
Higher Rates
To help restore earnings, Maersk has said it will increase freight rates on Asia-Europe trade. The company said Feb. 17 that it will cut 9 percent of capacity on the route.
Maersk is “positive” that it will succeed in raising rates even as industry overcapacity adds “risk” to the ambition, Chief Financial Officer Trond Westlie said today on a conference call with analysts. The container unit may consider cutting capacity further, the CFO said in a Bloomberg television interview earlier today.
Maersk, which has a market share of about 16 percent, said the industry may increase capacity by about 10 percent in 2012 as shipping lines launch new ships they have already ordered.
Global freight rates dropped 25 percent last year on average, according to RS Platou Markets AS. Prices fell the most on Asia-to-Europe routes where the decline was almost 60 percent, the Oslo-based broker said in a Jan. 4 note.
Oil Pressure
Parent company Maersk’s 2011 net income fell to 15.2 billion kroner from 26.5 billion kroner a year earlier. That compared with an average estimate of 14.8 billion kroner in a Bloomberg survey of 13 analysts. Sales rose 2.3 percent to 323 billion kroner.
The company, Denmark’s biggest, was helped by the performance of its oil and gas unit. The division recorded net income of 11 billion kroner last year compared with 9.33 billion kroner a year earlier, helped by higher oil prices.
Maersk Oil’s (MAERSK earnings this year will be “significantly below” results in 2011, the company said today. The unit will have a reduced share of production in Qatar, and earnings will also slip on the maturation of fields in the North Sea, it said.
en.portnews.ru
Maersk Line posts 2011 net loss of $521 million
A.P. Moeller-Maersk A/S said its container line, the world’s largest, will report a loss again this year, depressed by lower freight rates and slower market growth, Bloomberg reports. Maersk’s container division had a net loss of 2.88 billion kroner ($521 million) last year compared with a profit of 14.9 billion kroner a year earlier, the Copenhagen-based company said today in a statement. That exceeded an estimated loss of 2.28 billion kroner in a survey by SME Direkt. The container result for 2012 will be “negative” as overcapacity will continue to hurt the market, Maersk said today.
Global rates have dropped because the industry has added too many ships in anticipation of an economic recovery, causing overcapacity. Container demand growth will slow to as little as 4 percent this year compared with 7 percent in 2011, while expansion on Maersk’s most important lane, Asia to Europe, will be lower than the global average, the company said today. Maersk also predicted that earnings from its oil division will decline.
“We agree with Maersk on the challenges seen in the liner industry and while the recent rate increases will lift earnings somewhat, it does not seem to be sustainable,” Erik Nikolai Stavseth, an Oslo-based analyst at Arctic Securities, said in a note to clients today.
Maersk fell as much as 4.4 percent to 43,520 kroner in Copenhagen trading and was down 2.3 percent at 10:42 a.m. That pared the stock’s gain this year to 17 percent.
Higher Rates
To help restore earnings, Maersk has said it will increase freight rates on Asia-Europe trade. The company said Feb. 17 that it will cut 9 percent of capacity on the route.
Maersk is “positive” that it will succeed in raising rates even as industry overcapacity adds “risk” to the ambition, Chief Financial Officer Trond Westlie said today on a conference call with analysts. The container unit may consider cutting capacity further, the CFO said in a Bloomberg television interview earlier today.
Maersk, which has a market share of about 16 percent, said the industry may increase capacity by about 10 percent in 2012 as shipping lines launch new ships they have already ordered.
Global freight rates dropped 25 percent last year on average, according to RS Platou Markets AS. Prices fell the most on Asia-to-Europe routes where the decline was almost 60 percent, the Oslo-based broker said in a Jan. 4 note.
Oil Pressure
Parent company Maersk’s 2011 net income fell to 15.2 billion kroner from 26.5 billion kroner a year earlier. That compared with an average estimate of 14.8 billion kroner in a Bloomberg survey of 13 analysts. Sales rose 2.3 percent to 323 billion kroner.
The company, Denmark’s biggest, was helped by the performance of its oil and gas unit. The division recorded net income of 11 billion kroner last year compared with 9.33 billion kroner a year earlier, helped by higher oil prices.
Maersk Oil’s (MAERSK
earnings this year will be “significantly below” results in 2011, the company said today. The unit will have a reduced share of production in Qatar, and earnings will also slip on the maturation of fields in the North Sea, it said.en.portnews.ru
Feb 19, 12:29
Oil tanker rates seen staying low, supply up-BIMCO
The supply of crude oil tank...
seagull Feb 19, 12:29
Oil tanker rates seen staying low, supply up-BIMCO
The supply of crude oil tankers is expected to grow by 6 percent this year and daily rates are seen staying low due to oversupply and slack demand, shipping industry association BIMCO said on Wednesday, Reuters reports. Copenhagen-based BIMCO, which says its members control two-thirds of the world's total shipping tonnage, forecast daily oil tanker rates will settle around $10,000 to $20,000 this year.
That forecast, which is an average of rates for very large crude carriers (VLCCs), Aframax and Suezmax tankers, compares with an average daily 2011 rate for VLCCs of about $17,000 which was a record low annual average.
VLCC rates are down from historical peaks above $200,000 per day in an exceptional spike in 2007 and down from an average of around $32,000 per day in 2009 which was a disastrous year for shipping as global economic growth hit the skids.
BIMCO said it saw daily rates for long-range and medium-range product tankers staying this year in a range of $5,000 to $10,000, with more upside potential than downside.
The world's crude oil tanker fleet grew by 6.2 percent in 2011 as 33 deadweight tonnes (DWT) of new vessels was launched, up significantly from 2010, BIMCO said in a new market overview.
The association said it expected the supply of product tankers, which are used to transport refined oil products, to grow in 2012 by a little more than 3 percent.
Nine new VLCCs have been launched this year, while only a few new product tankers have entered the market, BIMCO said.
The oil tanker market has been rattled by threats from Iran to close the Strait of Hormuz, the world's most important crude export route, if western sanctions aimed at halting its nuclear programme prevent it from selling oil.
BIMCO said it considered it very unlikely that Iran would close the Strait, but it would have a big impact on tanker shipping if it did, and some tanker owners were looking elsewhere for their next cargoes, which could help bring balance to supply and demand on the key routes out of the Gulf region.
BIMCO said it estimated the potential for scrapping to amount to 5.9 percent of the existing double-hulled VLCC fleet.
en.portnews.ru
Oil tanker rates seen staying low, supply up-BIMCO
The supply of crude oil tankers is expected to grow by 6 percent this year and daily rates are seen staying low due to oversupply and slack demand, shipping industry association BIMCO said on Wednesday, Reuters reports. Copenhagen-based BIMCO, which says its members control two-thirds of the world's total shipping tonnage, forecast daily oil tanker rates will settle around $10,000 to $20,000 this year.
That forecast, which is an average of rates for very large crude carriers (VLCCs), Aframax and Suezmax tankers, compares with an average daily 2011 rate for VLCCs of about $17,000 which was a record low annual average.
VLCC rates are down from historical peaks above $200,000 per day in an exceptional spike in 2007 and down from an average of around $32,000 per day in 2009 which was a disastrous year for shipping as global economic growth hit the skids.
BIMCO said it saw daily rates for long-range and medium-range product tankers staying this year in a range of $5,000 to $10,000, with more upside potential than downside.
The world's crude oil tanker fleet grew by 6.2 percent in 2011 as 33 deadweight tonnes (DWT) of new vessels was launched, up significantly from 2010, BIMCO said in a new market overview.
The association said it expected the supply of product tankers, which are used to transport refined oil products, to grow in 2012 by a little more than 3 percent.
Nine new VLCCs have been launched this year, while only a few new product tankers have entered the market, BIMCO said.
The oil tanker market has been rattled by threats from Iran to close the Strait of Hormuz, the world's most important crude export route, if western sanctions aimed at halting its nuclear programme prevent it from selling oil.
BIMCO said it considered it very unlikely that Iran would close the Strait, but it would have a big impact on tanker shipping if it did, and some tanker owners were looking elsewhere for their next cargoes, which could help bring balance to supply and demand on the key routes out of the Gulf region.
BIMCO said it estimated the potential for scrapping to amount to 5.9 percent of the existing double-hulled VLCC fleet.
en.portnews.ru
Feb 16, 10:24
Maersk leads shipping industry developing fuels to cut emissions
A.P. Moeller M...
seagull Feb 16, 10:24
Maersk leads shipping industry developing fuels to cut emissions
A.P. Moeller Maersk A/S, the world’s biggest container ship owner, is leading its industry in developing biofuels made from organic waste that could cut its carbon emissions and reduce a $6 billion-a-year fuel bill, Bloomberg reports. Maersk is conducting tests with companies including Man Diesel & Turbo SE and two Danish universities to develop clean fuels tailored for ships and has worked with the U.S. Navy to run vessels using fuel produced from algae, encountering “very few problems,” said Jacob Sterling, head of climate and environment at Maersk, which is based in Copenhagen.
“The beauty of biofuels is that they work with the engines as they are today,” Sterling said in an interview. “There is a very, very strong link between reducing emissions and reducing costs.”
The efforts represent some of the most advanced work in the shipping industry to restrain greenhouse gases as the European Union works to broaden its carbon cap-and-trade system. Shipping accounts for about 3.3 percent of CO2 emissions, said Drewry Shipping Consultants Ltd. That’s more than the 2 percent to 3 percent produced by airlines, now included in the EU rules.
Maersk is a “frontrunner” among companies seeking to drive down pollution, said Ana Davila Martinez, consultant for corporate distribution and logistics at Heineken NV. The Dutch brewer is among brands including Adidas AG, Wal-Mart Stores Inc. and Volkswagen AG that select their shipping supplier based on sustainability, Sterling said.
‘Pioneered by Maersk’
Lloyd’s Register, which checks ships’ compliance with maritime rules, has given technical advice and independent verification to the projects. Maersk is “one of the leading companies seeking new and innovative approaches” to fuel supplies, said Timothy Wilson, product manager for Lloyd’s specialist fuel oil service known as FOBAS.
Mediterranean Shipping Co., the No. 2 container shipping line, said it’s implementing “new technological systems” on its ships as well as alternative fuels. Carnival Corp., the biggest cruise line and owner of the Costa Concordia that ran aground off Italy on Jan. 13, said it always looks at efficiency measures including biofuels, though it gave no details.
Efforts by shipping companies to cut emissions follow those of airlines that this year joined the EU’s carbon cap-and-trade program. Airlines in July won approval to start flying passenger planes with fuel made from organic waste and non-food plants, prompting Thai Airways International PCL, Deutsche Lufthansa AG and Air France-KLM Group to start biofuel flights.
Fuel Quantity, Price
The problem facing both aviation and shipping is producing the fuels in sufficient quantities and at prices competitive with traditional fossil fuels. Airplanes use kerosene and ships a heavier fuel typically low in grade and high in sulfur.
Alternative fuels made from feedstocks such as algae give the U.S. Navy “increased insulation from a volatile petroleum market,” said Pamela Kunze, special assistant in public affairs in the Navy secretary’s office. Solazyme Inc. supplied fuel for the test Maersk did with the U.S. Navy.
“The use of alternative fuels in our ships provides increased energy security and mitigates the operational risks,” Kunze said in an e-mail.
‘More Expensive’
Biofuels “are often more expensive, and that is what we are trying to change, so that’s why it’s a bit more longer term,” Sterling said, adding that he could “easily imagine” a process that makes biofuels both for airlines and ships.
The International Maritime Organization, the United Nations’ shipping agency, is considering two proposals to spur the shipping industry to slash emissions by 20 percent by 2020. One would create a cap-and-trade system like the EU Emissions Trading Scheme. The second would tax ship fuel in what would be known as a “bunker compensation fund.”
The IMO reached agreement in July on new energy-efficiency regulations that take effect next January. The rules aim to promote the use of more energy-efficient equipment and engines and apply to new and existing ships.
Funds raised from the industry could contribute to the $100 billion a year in aid pledged by industrial countries to help developing nations cope with climate change. Shipping could raise at least 10 percent of that target, said Jonathan Grant, assistant director for sustainability at PricewaterhouseCoopers LLP.
Pollution Curb
Maersk’s Sterling said biofuels could both cut pollution and make the company more attractive to customers concerned about the carbon footprints of their products.
“What we do on the environmental side we hope will both help us secure the big clients who have a focus on sustainability and also reduce our costs by lowering the fuel bill,” he said.
Maersk supports the compensation fund because it puts a predictable fixed fee on the fuel, Sterling said. It’s also interested in biofuels because of the potential cost savings. Fuel represents at least half of Maersk’s operating expenses, and reducing the speed of ships in transit helped the company cut emissions 7 percent and save $300 million a year, he said.
The company wants to “be out early” in tapping alternatives to oil, Sterling said. It plans to test fuels made from plant waste and non-food crops and some of its vessels have already tested canola-blended fuels.
“With a fuel bill of $5 billion to $6 billion a year, even one-digit percentage savings are very significant,” Sterling said. “There is such a strong link between reducing the cost and thereby improving the competitiveness of the company and improving the carbon footprint.”
en.portnews.ru
Maersk leads shipping industry developing fuels to cut emissions
A.P. Moeller Maersk A/S, the world’s biggest container ship owner, is leading its industry in developing biofuels made from organic waste that could cut its carbon emissions and reduce a $6 billion-a-year fuel bill, Bloomberg reports. Maersk is conducting tests with companies including Man Diesel & Turbo SE and two Danish universities to develop clean fuels tailored for ships and has worked with the U.S. Navy to run vessels using fuel produced from algae, encountering “very few problems,” said Jacob Sterling, head of climate and environment at Maersk, which is based in Copenhagen.
“The beauty of biofuels is that they work with the engines as they are today,” Sterling said in an interview. “There is a very, very strong link between reducing emissions and reducing costs.”
The efforts represent some of the most advanced work in the shipping industry to restrain greenhouse gases as the European Union works to broaden its carbon cap-and-trade system. Shipping accounts for about 3.3 percent of CO2 emissions, said Drewry Shipping Consultants Ltd. That’s more than the 2 percent to 3 percent produced by airlines, now included in the EU rules.
Maersk is a “frontrunner” among companies seeking to drive down pollution, said Ana Davila Martinez, consultant for corporate distribution and logistics at Heineken NV. The Dutch brewer is among brands including Adidas AG, Wal-Mart Stores Inc. and Volkswagen AG that select their shipping supplier based on sustainability, Sterling said.
‘Pioneered by Maersk’
Lloyd’s Register, which checks ships’ compliance with maritime rules, has given technical advice and independent verification to the projects. Maersk is “one of the leading companies seeking new and innovative approaches” to fuel supplies, said Timothy Wilson, product manager for Lloyd’s specialist fuel oil service known as FOBAS.
Mediterranean Shipping Co., the No. 2 container shipping line, said it’s implementing “new technological systems” on its ships as well as alternative fuels. Carnival Corp., the biggest cruise line and owner of the Costa Concordia that ran aground off Italy on Jan. 13, said it always looks at efficiency measures including biofuels, though it gave no details.
Efforts by shipping companies to cut emissions follow those of airlines that this year joined the EU’s carbon cap-and-trade program. Airlines in July won approval to start flying passenger planes with fuel made from organic waste and non-food plants, prompting Thai Airways International PCL, Deutsche Lufthansa AG and Air France-KLM Group to start biofuel flights.
Fuel Quantity, Price
The problem facing both aviation and shipping is producing the fuels in sufficient quantities and at prices competitive with traditional fossil fuels. Airplanes use kerosene and ships a heavier fuel typically low in grade and high in sulfur.
Alternative fuels made from feedstocks such as algae give the U.S. Navy “increased insulation from a volatile petroleum market,” said Pamela Kunze, special assistant in public affairs in the Navy secretary’s office. Solazyme Inc. supplied fuel for the test Maersk did with the U.S. Navy.
“The use of alternative fuels in our ships provides increased energy security and mitigates the operational risks,” Kunze said in an e-mail.
‘More Expensive’
Biofuels “are often more expensive, and that is what we are trying to change, so that’s why it’s a bit more longer term,” Sterling said, adding that he could “easily imagine” a process that makes biofuels both for airlines and ships.
The International Maritime Organization, the United Nations’ shipping agency, is considering two proposals to spur the shipping industry to slash emissions by 20 percent by 2020. One would create a cap-and-trade system like the EU Emissions Trading Scheme. The second would tax ship fuel in what would be known as a “bunker compensation fund.”
The IMO reached agreement in July on new energy-efficiency regulations that take effect next January. The rules aim to promote the use of more energy-efficient equipment and engines and apply to new and existing ships.
Funds raised from the industry could contribute to the $100 billion a year in aid pledged by industrial countries to help developing nations cope with climate change. Shipping could raise at least 10 percent of that target, said Jonathan Grant, assistant director for sustainability at PricewaterhouseCoopers LLP.
Pollution Curb
Maersk’s Sterling said biofuels could both cut pollution and make the company more attractive to customers concerned about the carbon footprints of their products.
“What we do on the environmental side we hope will both help us secure the big clients who have a focus on sustainability and also reduce our costs by lowering the fuel bill,” he said.
Maersk supports the compensation fund because it puts a predictable fixed fee on the fuel, Sterling said. It’s also interested in biofuels because of the potential cost savings. Fuel represents at least half of Maersk’s operating expenses, and reducing the speed of ships in transit helped the company cut emissions 7 percent and save $300 million a year, he said.
The company wants to “be out early” in tapping alternatives to oil, Sterling said. It plans to test fuels made from plant waste and non-food crops and some of its vessels have already tested canola-blended fuels.
“With a fuel bill of $5 billion to $6 billion a year, even one-digit percentage savings are very significant,” Sterling said. “There is such a strong link between reducing the cost and thereby improving the competitiveness of the company and improving the carbon footprint.”
en.portnews.ru
Jan 12, 11:33
Safmarine names new CEO
Safmarine has appointed Grant Daly as its new CEO, effe...
seagull Jan 12, 11:33
Safmarine names new CEO
Safmarine has appointed Grant Daly as its new CEO, effective February 1, 2012, the Company said Tuesday.
South African-born Daly, currently Safmarine’s Head of MPV (Multi-Purpose Vessel) unit, replaces Tomas Dyrbye, who has been Safmarine’s CEO for the past two and a half years. Daly joined Safmarine 17 years ago after graduating from the University of Stellenbosch with a Bachelor of Economics degree.
The appointment of a new Safmarine CEO follows the announcement, in October 2011, of the Maersk Liner Business’ intention to integrate the corporate and regional management activities of Safmarine into those of the Maersk Line, whilst retaining and growing a separate Safmarine brand and operating model.
Safmarine will continue to have its own independent pricing, capacity, sales and customer services structure, supported by more than 1,400 Safmariners located in 130 countries around the world.
As new CEO, Daly will be based at the new Safmarine headquarters in Copenhagen, Denmark where he will report to Hanne B. Sørensen, Maersk Line’s Chief Commercial Officer.
Daly says: “For close on two decades I have been fortunate to enjoy a varied, exciting and immensely fulfilling career with Safmarine and it’s an honour to take the helm as chief custodian of the Safmarine brand. My immediate priority is to establish the Safmarine Centre team in Copenhagen and to ensure we provide Safmariners in the countries with the support they need to deliver on our Safmarine promise to customers. I also look forward to meeting, and working with, Safmariners and customers in the months ahead; together we can build an even stronger Safmarine for the future.
He continues: “I also wish to thank outgoing CEO, Tomas Dyrbye, for his contribution to Safmarine. Under his tenure, Safmarine achieved record volume growth in 2011 and record profits in 2010.”
Hanne B. Sørensen adds: “The challenge - of making brand segmentation work without a separate management structure - is a new one in the shipping industry and we are delighted that Grant has accepted this challenge. We know he has the necessary Safmarine experience, skills and knowledge to build and grow a resilient and highly respected brand.
She continues: “We strongly believe that our multi-brand strategy, which will allow us to serve several and more customer segments with different products, is the path to a prosperous future for the Maersk Liner Business and we are committed to providing Grant and his new team with the support they need to grow the Safmarine brand info the future.”
Safmarine Container Lines NV is a Belgian shipping company, based in Antwerp and specialising in sea transportation of cargoes between Africa, the Middle East and the Indian Subcontinent as well as operating in other trades.
en.portnews.ru
Safmarine names new CEO
Safmarine has appointed Grant Daly as its new CEO, effective February 1, 2012, the Company said Tuesday.
South African-born Daly, currently Safmarine’s Head of MPV (Multi-Purpose Vessel) unit, replaces Tomas Dyrbye, who has been Safmarine’s CEO for the past two and a half years. Daly joined Safmarine 17 years ago after graduating from the University of Stellenbosch with a Bachelor of Economics degree.
The appointment of a new Safmarine CEO follows the announcement, in October 2011, of the Maersk Liner Business’ intention to integrate the corporate and regional management activities of Safmarine into those of the Maersk Line, whilst retaining and growing a separate Safmarine brand and operating model.
Safmarine will continue to have its own independent pricing, capacity, sales and customer services structure, supported by more than 1,400 Safmariners located in 130 countries around the world.
As new CEO, Daly will be based at the new Safmarine headquarters in Copenhagen, Denmark where he will report to Hanne B. Sørensen, Maersk Line’s Chief Commercial Officer.
Daly says: “For close on two decades I have been fortunate to enjoy a varied, exciting and immensely fulfilling career with Safmarine and it’s an honour to take the helm as chief custodian of the Safmarine brand. My immediate priority is to establish the Safmarine Centre team in Copenhagen and to ensure we provide Safmariners in the countries with the support they need to deliver on our Safmarine promise to customers. I also look forward to meeting, and working with, Safmariners and customers in the months ahead; together we can build an even stronger Safmarine for the future.
He continues: “I also wish to thank outgoing CEO, Tomas Dyrbye, for his contribution to Safmarine. Under his tenure, Safmarine achieved record volume growth in 2011 and record profits in 2010.”
Hanne B. Sørensen adds: “The challenge - of making brand segmentation work without a separate management structure - is a new one in the shipping industry and we are delighted that Grant has accepted this challenge. We know he has the necessary Safmarine experience, skills and knowledge to build and grow a resilient and highly respected brand.
She continues: “We strongly believe that our multi-brand strategy, which will allow us to serve several and more customer segments with different products, is the path to a prosperous future for the Maersk Liner Business and we are committed to providing Grant and his new team with the support they need to grow the Safmarine brand info the future.”
Safmarine Container Lines NV is a Belgian shipping company, based in Antwerp and specialising in sea transportation of cargoes between Africa, the Middle East and the Indian Subcontinent as well as operating in other trades.
en.portnews.ru
Oct 17, 9:08
Maersk’s CEO sees ‘difficult trading’ for shipping companies
Tim Smith, chief e...
seagull Oct 17, 9:08
Maersk’s CEO sees ‘difficult trading’ for shipping companies
Tim Smith, chief executive officer for North Asia at Maersk Line, comments on the outlook for the container-shipping market in an Oct. 12 interview in Shenzhen. Maersk Line is a unit of Copenhagen-based A.P. Moeller-Maersk A/S, Bloomberg reports.
On the outlook for rates:
“For the next year, it will be a difficult trading situation for shipping companies. I am not sure if it’s going to get worse, because on some routes, freight rates are already very, very low. I can’t see anything that’s going to happen in a very short term which will make it massively better.”
On cargo demand:
“We don’t see any dramatic change to the current situation, which is relatively mature growth in the U.S. and Europe. There will still be some increase in demand, but it will not be fast, and we see more growth to the emerging markets -- Africa, Middle East, South America, those places. If we look at this year, actually, demand is not that bad.”
On vessel orders:
“We want to have the most efficient tonnage, the lowest environmental footprint. The way to do that is to make sure we have a modern fleet, and we want to get the best economy of scale.
“We are responsible in our ordering. Some of our competitors are ordering much, much more relative to their size. We’ll continue to invest in new ships which make sense.”
Source: shippingazette.com
Maersk’s CEO sees ‘difficult trading’ for shipping companies
Tim Smith, chief executive officer for North Asia at Maersk Line, comments on the outlook for the container-shipping market in an Oct. 12 interview in Shenzhen. Maersk Line is a unit of Copenhagen-based A.P. Moeller-Maersk A/S, Bloomberg reports.
On the outlook for rates:
“For the next year, it will be a difficult trading situation for shipping companies. I am not sure if it’s going to get worse, because on some routes, freight rates are already very, very low. I can’t see anything that’s going to happen in a very short term which will make it massively better.”
On cargo demand:
“We don’t see any dramatic change to the current situation, which is relatively mature growth in the U.S. and Europe. There will still be some increase in demand, but it will not be fast, and we see more growth to the emerging markets -- Africa, Middle East, South America, those places. If we look at this year, actually, demand is not that bad.”
On vessel orders:
“We want to have the most efficient tonnage, the lowest environmental footprint. The way to do that is to make sure we have a modern fleet, and we want to get the best economy of scale.
“We are responsible in our ordering. Some of our competitors are ordering much, much more relative to their size. We’ll continue to invest in new ships which make sense.”
Source: shippingazette.com
Companies
Add Company
Current Traffic
Statistics
Visible vessels right now:
47Vessels today:
29Vessels this month:
813Vessels last month:
656More information on Wikipedia