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News AbstractsDry Bulk Terminals Group – November 2016 – Issue 162

For your personal interest and information. These News Abstracts are compiled by the DBTG Secretariat from direct sources. Publications including Fairplay (FP),and various international agencies, as well as the research division of Clarkson and Fearnleys. They cover a wide range of issues of direct and indirect relevance to dry bulk terminal operators as well as the aims and activities of the DBTG.

Welcome to the selection of news extracts for November 2016. By the time you read this I will me in Merida, Mexico representing DBTG at the AAPA Latin American Congress. If any member is also attending, please do find me and I will be very happy to chat with you over some chilled.

The dates are now confirmed for the DBTG Spring meeting in Gijon, Northern Spain. It will be held from Tuesday 28th to Thursday 30th of March 2017. I will be writing to you all in early December with more details and we expect to make reservation forms available on the website in early January 2017.

In the October issue I raised the Ballast Water Management Convention. The media are already starting to writing more articles on this Regulation and I expect that will only increase. I have drafted an information paper on this subject, specifically what it means to Dry Bulk Terminal owners/operators. It might be that you will have received that paper before you receive this but if you have any concerns or questions about BWM, please do not hesitate to contact me.

Finally, I had the pleasure of accompanying Julia to the IBJ awards on Monday 21st November. We were both excited to see DBTG members and

associate Members being recognised at the awards. Those recognised were; Euroports Belgium for specialist dry

bulk port DBIS for IT solutions in cargo handling Solent Stevedores for customer

services Nectar Sierra Leone for best dry bulk

port Guy Wilkes of Nectar for Entrepreneur

of the year Stuart Cullen of Solent Stevedores for

personality of the year Siwertell for best ship loading/

unloading system

From the 13th to the 17th December I will be visiting some Members in New Orleans. It will be my first visit to the South of the USA and I am looking forward very much to meeting our Members there.

As the next edition will not come out until the end of December may I take this opportunity to wish you all a restful Christmas and a very happy, and I hope prosperous New Year.

Nic Ingle - Executive [email protected]

DIARY DATES AAPA Mexico, 29 November – 2

December Intermodal Europe, 15-17 November TOC Middle East, 6-7 December

IN THIS ISSUE

Shipping Matters Economy/Finance/Trade Commodities Terminals/Ports Ballast Water Management Freight Market

SHIPPING MATTERS

1www.drybulkterminals.org

mailto:[email protected]


Taiwan Navigation looks to bulk fleet expansion – SMN 8th Nov

Dry bulk shipowner Taiwan Navigation is looking to

expand its fleet by taking delivery of four new ships this

year and another four next year, according to chairman

Liu Qingjin.

The Taiwanese shipowner will take delivery of four new

handymaxes this year, and four 82,000-84,000 dwt

kamsarmaxes in 2017. All eight units are built at Japan’s

Oshima Shipbuilding.

In view of the current low newbuilding prices, Liu was

reported saying that the company is mulling the

possibility of buying more new ships next year.

Taiwan Navigation currently boasts a fleet of 19 ships

comprising of six panamaxes and 13 handymaxes, as

well as two chartered-in cross-strait boxships.

‘Change agent’ Jeremy Penn defends Baltic Exchange sale in swansong – SMN 8th Nov

Last Friday in a swansong, before the sale of the Baltic

Exchange to the Singapore Exchange (SGX) was finalised

today, outgoing chief executive Jeremy Penn made a

speech defending the deal that sees the sale of one of

shipping’s oldest institutions moving from London to

Asia.

Penn’s comments came at Capital Link’s 6th Annual

‘Operational Excellence & Maritime CSR Forum’ in

London on November 2, where he was presented with

the Maritime CSR (Corporate Social Responsibility)

Leadership Award. Introducing the award, last year’s

recipient Clay Maitland said it was richly deserved as

Penn had proven himself a “change agent” at both the

Baltic and previous employer Reuters.

SGX confirmed the deal to buy the Baltic Exchange had

been completed on Tuesday 8 November and that Alex

Lenhart, currently UK country manager for SGX, would

serve as interim ceo of the historic institution until the

previously announced Mark Jackson takes over the role

on 31 January 2017.

In his final speech on Friday as chief executive of the

Baltic Penn, after thanking the organisers, began by

noting his good fortune in having worked for “two

organisations with fabulous names and traditions -

Reuters, now Thomas Reuters, and the Baltic Exchange.”

Both stood for the principles of “independence, integrity

and freedom from bias,” he said, with the Baltic also

representing “fair dealing in the marketplace”.

“Correct and appropriate behaviour is important, it is

possible to conduct a business cleverly and aggressively

but honestly,” he stressed.

Penn went on to describe the processes of how the

Baltic rates are put together, saying that transparency

and daily supervision of the Baltic indices production

process is proof of these principles.

With the Baltic being sold to SGX of Singapore, its

independence will remain unaffected, he emphasised.

“I firmly believe this deal with SGX protects and even

enhances the Baltic Exchange,” he said. “Is it a loss to

London? Absolutely not, as with the London Stock

Exchange joining with Deutsche Börse, the purchase of

the Baltic will not affect its role in London.


News AbstractsDry Bulk Terminals Group – November 2016 – Issue 162“These are global businesses,” he added. “We want to

attract investment into London. SGX want to expand

into the UK, and use the Baltic Exchange as the platform

for doing that.”

On the wider subject on London as a global maritime

centre, Penn admitted that the city was facing

“challenges” - such as changes to the non-dom rules and

now Brexit - but he remained confident that it would

maintain its current role as what he called “the world’s

most important maritime centre.”

Penn will continue to be director and treasurer of

Maritime London and director of Maritime UK, as well as

chairing the Steering Group for London International

Shipping Week 2017 among other appointments.

New bulker safety guide warns of bauxite liquefaction risk – SMN 8th Nov

For the first time bauxite has been listed as a dry bulk

cargo subject to liquefaction risk in a new updated

safety guide jointly published by Lloyd’s Register,

Intercargo and the UK P&I Club.

“Carrying solid bulk cargoes safely: Guidance for crews

on the International Maritime Solid Bulk Cargoes

(IMSBC) Code”, is an updated version of a 2013-

published guide for ships’ officers and agents who

arrange cargoes for loading, explains the UK P&I Club.

The pocket guide addresses the risk that bulk cargoes

should shift, liquefy, catch fire or explode due to poor

loading procedures, potentially affecting a vessel’s

structural stability and seaworthiness.

Included in a list of the primary hazards associated with

specific types of cargo is a new warning on the possible

liquefaction properties of bauxite - which was

considered until recently a cargo not liable to

liquefaction, points out the UK Club.

Also covered are the issue of cargo residues deemed

harmful to the marine environment, changes to the

IMSBC Code’s structure, advice on SOLAS mandatory

enclosed space entry and rescue drills, and updated

references to supporting IMO Circulars.

Sam James, Lloyd’s Register’s Head of Regulatory Affairs,

said the guide is extremely useful to crew members as

an aide memoire: "Since the release of the original guide

in 2013, it has heightened the awareness of seafarers,

managers, charterers and shippers to the hazards

associated with carrying solid bulk cargoes.

Stuart Edmonston, Loss Prevention Director at UK P&I

Club, added: "The main purpose of the guide is to

provide on-the-spot references to help in practical

situations."

The guide can be downloaded from the Lloyd’s Register

website www.lr.org/imsbc or hard copies ordered from

www.ukpandi.com.

Protectionist Trump the next US President - view on shipping impact from New York – SMN 8th Nov

In a stunning upset, Donald Trump defeated Hillary

Clinton in the just finished US elections. The new

administration will take office in January 2017, Seatrade

Maritime News New York correspondent Barry Parker

gives his take on the impact on shipping.

Trump’s run for the top job was remarkably short on

specifics of what he might do if elected, so analysts can

only conjecture about impacts on the maritime sector.

Political analysts and media pundits, mostly predicting

an easy win for Clinton, were proven wrong as a populist

current, evoking the “Silent Majority” of the late 1960’s,

flowed throughout the middle of the country.

Trump is regarded as protectionist; his administration -

supported by Republican majorities in both the House

and the Senate - will try to roll back existing trade deals

which, he argued, had the impact of exporting jobs

abroad. The “re-shoring” movement will gain new


News AbstractsDry Bulk Terminals Group – November 2016 – Issue 162currency under a Trump regime. Incrementally, such

moves might have the effect of shifting, if not

necessarily reducing, trade flows.

However, speaking at the Marine Money Forum in New

York, the day after the election, noted investor Wilbur

Ross, best known for his Diamond S tanker outfit, an

advisor to the President-elect, stressed that economic

gains in the US could lead to a trade stimulating

environment. Ross added that Trump's energy-friendly

views may stimulate addition licensing, and eventual

export of LNG- plentiful in the US.

The “dangers”, if any, would lie in the reactions of other

countries; pro-Clinton supporters had warned that a

trade war might be triggered. The impacts, if the dire

predictions come to pass - and the word “if” should be

stressed - might extend beyond liner shipping; in recent

years; the US had seen a resurgence of agricultural

exports. However, on the world scene, cargoes may

come from other origins, with impacts on ton-miles not

readily possible to forecast.

Trump will likely be a supporter of the US domestic

energy markets, which would benefit fossil fuels

producers, including the miners of steam coal. Again,

impacts on shipping will depend on shifts occurring in a

global matrix of origins and destinations.

At a high level, more US oil production could auger for

an incremental widening of the Brent- WTI spreads, and

the resultant impacts on arbitrages for refined products.

However, pricing is determined on world markets, and

take into account the actions of buyers and sellers

worldwide.

One perennial question for shipping observers is the

impact on “The Jones Act”, the U.S. version of cabotage,

which restricts coastal trades to US owned/ built/ and

crewed vessels. The shipyard and related businesses

have been powerful politically. Organised labour

interests generally backed Clinton, and it is unclear how

the shipbuilding industry might be treated by a Trump

administration.

There are also considerable uncertainties about how a

Trump policy apparatus would regard the “national

security” aspects of shipping, including programs from

the Bill Clinton years that allow US flagged (but not

necessarily US built) liner vessels in foreign trades to

gain annual subsidies. Likewise, a US tanker fleet in

coastal trades, an important visage of the Jones Act,

may be regarded as a bulwark for U.S. national security

by a Trump administration- we don’t know yet.

One barometer to watch will be the upcoming split of

the large tanker owner OSG into an international and

domestic components; the Jones Act entity, to keep the

OSG name, will be listed as will the “International

Seaways” foreign flag unit, and its performance will

provide an insight into investor views on the likely

prospects for the Jones Act.

Chinese boss gets suspended death sentence over Tianjin blast – SMN 10th Nov

China’s Tianjin courts have meted out a suspended

death sentence to the head of a Chinese logistics firm

and jailed 48 others for their involvement in the deadly

explosion at Tianjin port last year, which left 165 people

dead and eight missing.

Yu Xuewei, chairman of Tianjin Dongjiang Port Ruihai

International Logistics Co, was sentenced to death by

Tianjin High Court with a two-year reprieve after being

found guilty of bribing government officials, obtaining

certificates by illegal means to store hazardous

chemicals at a warehouse in Tianjin port, and providing

fake environmental assessment papers, according to

court papers.

Under Chinese law, a suspended death sentences

commonly refers to life imprisonment.


News AbstractsDry Bulk Terminals Group – November 2016 – Issue 162Tianjin No. 2 Intermediate People’s Court and other

local courts also handed down prison terms ranging

from one year to life for another 48 people.

The courts said officials at Tianjin’s transport, port,

customs, workplace safety supervision and maritime

departments showed serious negligence of duty in their

jobs, with some taking bribes and issuing unlawful

permits, leading to the disaster on 12 August 2015.

The devastating blast was caused by hazardous goods

stored in a chemical warehouse of Tianjin port. The

explosion destroyed 304 buildings, 12,428 vehicles,

7,533 containers, and incurred economic losses of nearly

RMB7bn ($1bn), as well as contaminating the air, water

and soil in the surrounding areas.

Philippines rebels in failed attack on capesize bulker – SMN 22nd Nov

Concerns are rising as rebels in the southern Philippines

targeting commercial shipping have taken to trying

attack large vessels.

In an incident alert the ReCAAP Information Sharing

Centre (ISC) said the 179,171 dwt capesize bulker Kumiai

Shagang came under attack on Sunday in the Sulu Sea

between Sabah in East Malaysia and the Southern

Philippines.

Philippines terrorist group Abu Sayyaf Group has been

targeting shipping in kidnap for ransom attacks, but until

recently restricted attacks to small vessels such as tugs

and barges.

According to ReCAAP there have been nine actual

attacks and two attempted attacks since March this year

with 44 crew abducted and 11 currently still held

hostage.

“Since October 2016, the perpetrators have begun to

target ships of larger tonnage,” ReCAAP said.

“Nonetheless, the latest attempted incidents of

Southern Falcon and Kumiai Shagang show the vigilance

of the crew and effective activation of anti-piracy

measures had successfully prevented boarding by the

perpetrators.”

The 9,051 dwt chemical tanker Southern Falcon came

under attack on 13 November.

“The ReCAAP ISC reiterates its advisory to all ships to re-

route from the area, where possible,” the alert added.

Courage Marine losses widen to $1.3m in Q3 – SMN 16th Nov

Dry bulk group Courage Marine saw its losses widen in

the third quarter to $1.29m from $1.21m previously as

the group incurred additional administrative expenses

during the quarter as it tried to shuffle its business into

the logistic service and merchandise trading segments.

Revenue fell by almost half from $2.42m previously to

$1.29m in the period under review.

Reflecting the continued low demand in the dry bulk

market, revenue from vessel chartering decreased to

$1.12m, the company said in a stock market

announcement.

Earlier this year on 31 March 2016 the group acquired

some units in the logistics, custom clearance and

auxiliary services business as well as import and export

of goods.

However, the move seems to be unsuccessful, as these

subsidiaries were subsequently disposed of on 10

November 2016 as their business and financial


News AbstractsDry Bulk Terminals Group – November 2016 – Issue 162performance could not meet the group’s expectations,

Courage said. In the third quarter this segment

generated trading income of just $136,000.

The lack of activity also reduced the group's cost of sales

by 36% from $2.75m in the previous corresponding

period to $1.76m in the current quarter.

The vessel chartering business continues to bleed,

recorded an operating loss of $461,000, an increase

from $328,000 in the previous corresponding period.

The apparently ill-fated foray into the logistics services

and merchandise trading business caused an operating

loss of $43,000 in just one quarter.

Untangling the mess, caused administrative expenses to

jump by 48% to $797,000 from $537,000 previously as

the group had incurred additional costs during the

quarter.

Looking ahead, Courage said: "The dry bulk market

remains difficult during 9M 2016. The BDI, which has a

close correlation to freight rates, was hovering at the

300 to 700 level during 9M 2016."

It also repeated the tired refrain that low demand for

commodities in the Greater China Region and

oversupply of vessels is putting additional pressure on

freight rates in dry bulk market.

The group's fleet has a tonnage capacity of

approximately 114,000 dwt currently, but due to the

"challenging operating environment of the vessel

chartering business," it will "continue to explore various

options for reducing costs and increasing revenue of the

business", suggesting that more scrappings and

disposals are in store.

Diana Shipping ends talks with lenders without a deal, posts bigger Q3 loss – SMN 18th Nov

Athens-based Diana Shipping has terminated discussions

with lenders without a deal but the shipowner

maintained that it is “current in all payments” for

existing loans, as it announced a deeper third quarter

loss.

Dry bulk shipowner Diana Shipowner previously

announced talks with lenders related to certain

proposed amendments of its outstanding loan facilities,

but the discussions have ended without an agreement.

The company has also terminated its engagement of a

financial advisor in connection with such discussions.

“The company is current in all payments of principal and

interest under each of its existing loan facilities. The

company does not currently anticipate resuming such

discussions with its lenders,” Diana Shipping stated.

The shipowner also posted a third quarter net loss of

$78.31m, widening from the deficit of $17.4m in the

same period of last year, due mainly to a $54.4m

impairment made to its investment in Diana

Containerships.

Time charter revenues were recorded at $27.12m for

the third quarter, down from $38.85m in the previous

corresponding period.

Logic needed for dry bulk shipping recovery – SMN 23rd Nov


News AbstractsDry Bulk Terminals Group – November 2016 – Issue 162There is very limited scope for consolidation in the dry

bulk sector and what is needed for recovery is logic.

Clarksons Platou director and global head of dry bulk

freight analysis Henriette Van Niekerk explained that

economic logic dictates that the Chinese government

will not support shipbuilding companies that cannot

survive, otherwise known as "zombie" yards while

business logic should see owners not ordering new ships

and picking up bargains in the secondhand market.

Speaking at the dry bulk panel at the Asian Logistics and

Maritime Conference in Hong Kong, Precious Shipping

md Khalid Hashim however declared that "economic

logic has been stood on its head". Explaining he said that

with easy credit and big incentives from government

finance agencies to keep the yards going, the situation

with the yards now is "a gambler's dream".

While Hashim acknowledged the need for owners to be

responsible, he expressed little hope that this would be

the case. "Owners have no logic" when it comes to

newbuilding orders, he declared. Combined with the

likely incentives from the yards, the prospects for

shipyard capacity reduction and better control of

capacity supply seems bleak.

This sentiment was echoed and reinforced by Bimco Asia

regional manager Zhuang Wei who believed the Chinese

would not do so as the development of the yards has

already been flagged in the 13th five-year plan and they

employ many people and thus have a social imperative

to be kept going. The long term trend is towards yard

capacity reduction, he said, but noted that there is still a

long way to go.

CNCo christens handysize in Japan – SMN 18th Nov

The China Navigation Company (CNCo) has christened its

last newbuild MV Tunsin at Japan’s Imabari Shipyard,

making Tunsin the 241st CNCo newbuilding and the 86th

vessel in this series.

Handysize bulk carrier (Imabari38 loggers) Tunsin was

named by lady sponsor Sara Cutler, wife of Robert

Cutler, staff director of John Swire & Sons.

CNCo ordered four handysizes from Imabari Shipbuilding

in 2014. Deliveries of the first three ships, MV Taiyuan,

MV Tientsin and MV Tsingtao took place between July

and October this year. The names chosen for the vessels

reflect CNCo’s long history in the Asia-Pacific region

since its first ships sailed on the Yangtze River in 1872.

The four new ships, alongside five long term chartered

Imabari38s and 24 Swire B.Delta39 handysize bulk

carriers, will operate in Swire Bulk, CNCo’s handysize dry

bulk division.

Sara Cutler, lady sponsor of MV Tunsin

With three additional long term chartered Imabari38

loggers for delivery in 2017 and 2018, Swire Bulk

continues to grow its fleet of modern eco-friendly handy

tonnage and expands its service in the Pacific and

Atlantic basins.

Six seafarers kidnapped from Vietnamese bulker in southern Philippines – SMN 11th Nov

Six seafarers have been kidnapped from a Vietnamese

bulker sailing in the southern Philippines.


News AbstractsDry Bulk Terminals Group – November 2016 – Issue 162The ReCAAP Information Sharing Centre (ISC) said in an

alert that the 2,999 gt bulker Royal 16 was boarded by

an unidentified number of armed men at 3-30am on

Friday, 8.3 nm southeast of Coco Island, while heading

from Haiphong to Davao.

The armed men abducted six crew members – the

master, chief mate, 2nd and 3rd officer, and the bosun

and assistant bosun – and fled in a speedboat.

The 13 crew remaining on the vessel reportedly sailed to

Zamboanga following the attack.

Philippines Islamic militant group Abu Sayaaf have taken

to targeting commercial shipping in the southern

Philippines for kidnap for ransom of their crew.

“The ReCAAP ISC is concerned about the situation of

abduction of crew from ships while underway in the

Sulu-Celebes Sea region; and advised all slow moving

ships to re-route from the area, where possible,”

ReCAAP said. “Otherwise, ship masters and crew are

strongly urged to exercise extra vigilance while transiting

the area; and report immediately to Eastern Sabah

Security Command (ESSCOM) when transiting nearer to

eastern Sabah, particularly when sighting any suspicious

activities or boats; and to the Operation Centre in the

PCG District Southwestern Mindanao for monitoring and

immediate responses in any eventualities,” it added.

First Somali piracy attack in two and half years confirmed by EU Navfor – SMN 7th Nov

The first Somali piracy attack in two half years has been

confirmed by EU Navfor.

The Offen Tankers chemical carrier CPO Korea was

attacked by six armed men 330 nm off the East Coast of

Somalia on 22 October.

Confirming the attack EU Navfor said that shots were

exchanged by the six armed men on the fast moving skiff

and a security team onboard the CPO Korea.

“The suspected pirates eventually broke away after CPO

Korea’s crew successfully implemented self-protection

measures by increasing speed, altering course and

rigging fire hoses to thwart the attack,” EU Navfor said.

It is the first reported piracy attack off Somalia in two

and half years and EU Navfor said it was confirmed after

a thorough investigation. There have been unconfirmed

reports other attempted attacks in the region in the

period, mainly by private maritime security companies

(PMSCs).

The Operation Commander of the EU Naval Force

(Somalia), Major General Rob Magowan said: “This

attack shows that pirates still have the intent to attack

ships for ransom and cause misery to seafarers and their

families. It is imperative that the international

community remains vigilant.

“The EU Naval Force is working with counter-piracy

partners to coordinate efforts to ensure pirates do not

once again terrorise the waters off the Somali coast.”

Offen Tankers commented: “Despite the decreasing

number of attacks in the region the imminent risk of

Somalian piracy still exists and needs to be addressed

accordingly by owners and charterers alike.”

Huge oil tanker explosion kills at least 12 at Pakistani shipbreaking yard – SMN 2nd Nov


News AbstractsDry Bulk Terminals Group – November 2016 – Issue 162A huge explosion of an oil tanker at a shipbreaking yard

in Gaddani, Pakistan has killed at least 12 workers and

injured more than 50 others on Tuesday, reports said.

The blast occurred in the fuel tank of the oil tanker,

which was moored in Gaddani, 45km northwest of the

port city of Karachi, Reuters reported. It was still unclear

the name and owner of the ship.

“There’s an unclear number of workers said to be

trapped in the burning ship,” Basheer Mehmoodani,

president of the shipbreaking workers union, was

quoted saying. It is feared that the death toll may rise

further.

Firefighters, the air force and navy were on site to put

out the raging blaze, it was reported.

Workers at shipbreaking yards, particularly those in

Pakistan and Bangladesh, often work in hazardous and

poor conditions without basic protective gear.

Smuggled oil led to deadly explosion at Pakistani shipbreaking yard – SMN 22nd Nov

An explosion at a Pakistani shipbreaking yard that

claimed the lives of more than two dozen workers is

believed to have been caused by sizable amounts of

smuggled oil that caught fire, local reports said.

Investigations from the prosecutors and Pakistan’s

ministry for shipping showed that during the dismantling

of the oil tanker, recognised as the 149,235-dwt and

1982-built Aces, there were 132 tonnes of furnace oil,

27 tonnes of diesel oil, 1,100 tonnes of sludge and

30,000 tonnes of lubricant oil.

The large quantity of lubricant oil is believed to be part

of a smuggling scheme for illegal import of oil products

into the country, according to the investigation report.

“A huge quantity of lubricants smuggled by the

shipowner had caught fire due to mishandling of work

managers,” Hasil Khan Bizenjo, minister of ports and

shipping, was reported saying.

“According to the customs rules and regulations,

decommissioned vessels are only allowed to carry a

fixed quantity of oil required for their voyage from a

port of departure to Gadani shipbreaking yard in

Pakistan,” he said.

“Businessmen acquire decommissioned ships for scrap

from different parts of the world and bring them to the

UAE where they are filled with lubricants which are then

smuggled into Pakistan,” he added.

On 1 November, a blast occurred in the fuel tank of the

oil tanker, which was moored in Gadani, 45km

northwest of the port city of Karachi, Pakistan.

The investigation also found many safety lapses and dire

working conditions for the shipbreaking workers at the

Gadani yard. Work at the yard has stopped after the

accident and will be resumed in the beginning of next

week.

At last count, at least 26 people died from the Aces

explosion, where the raging fire burnt for four days.

Ballast water disruption looms for shipping – SMN 1st Nov

Ship delays, port penalties and frequent spells of off-hire

are the price that ship operators will pay unless they

choose ballast water treatment systems with great care.

This is the message from experts who reveal a number

of cases where owners have taken short cuts to save

money; where European treatment systems copied and

reproduced in the Far East fail to perform; and where

South Korean shipyards demand premiums running into

millions of dollars if an owner chooses not to install the

builder’s system of choice.

The IMO’s Ballast Water Convention is due to enter

force on September 8, 2017. After that, ship operators

will need to install type-approved ballast water


News AbstractsDry Bulk Terminals Group – November 2016 – Issue 162treatment systems by the time that the International Oil

Pollution Prevention (IOPP) certificate falls due for

renewal, usually at Special Survey.

Estimates over the number of ships affected by the

Convention vary, and the new regulation will certainly

hasten the disposal of old ships for which the chunky

capital outlay makes no sense. In recent analysis,

Clarkson Research Services identified about 35,000 ships

less than 20 years old which are likely to require

installations.

The company’s database lists more than 250 shipyards

and 520 drydocks with potential repair capacity. But

various sources suggest that when demand for

treatment systems peaks, shortages of dock capacity,

hardware, engineering expertise and pre-installation

planning could all lead pose problems.

Quite apart from these practical issues, however, there

is growing dismay over the Convention itself, the type

approval process itself and how it is carried out in

different jurisdictions, and of course the lack of a global

agreement which includes the US. Following its entry

into force, there are also worries over a potential lack of

uniform testing standards between port states.

However, the biggest challenge for ship operators is the

choice of treatment technology. Most systems work on

one or more of filtration, electro chlorination (EC), ultra

violet (UV) or ozone. All have shortcomings and cannot

be completely effective but the challenge for ship

operators is to identify a system that is as fit for purpose

as possible, to minimise the risk of operational

disruption and financial penalties in the future.

Briefly, system disadvantages are as follows. Even with

back-flushing, filters get blocked and ballast flow rates

fall, causing delay and affecting power requirements.

Meanwhile the size and shape of planktonic organisms

varies widely and many smaller ones pass through

filters, typically of 40 microns, into ships’ ballast tanks.

EC systems use sodium hypochlorite but regulations

restrict the dosage level to less than 12 ppm to avoid

damage to coatings and ultimately, the structure of the

vessel. Lloyd’s Register recommends a limit of five ppm.

The cleaning product Domestos contains 100,000 ppm

of sodium hypochlorite but, for those who remember

the advertisement, it still only kills “99% of all known

germs”.

UV treatment relies on effective transmission through

water and this is sharply reduced by sediment. In waters

of high turbidity with many particles in suspension, UV

efficacy can be reduced by more than a third. Coastal

waters where ships often take on ballast often contain

high levels of sediment.

Ozone can only be used in low concentrations and has

been shown to be effective at killing microscopic

organisms but not larger ones. It must be distributed

evenly within ships’ ballast tanks to work effectively and

its efficacy depends on the characteristics of the source

water.

If a ship’s ballast water fails to meet discharge

standards, her operator may be forced to sail for

international waters, re-ballast and then return to port

when space is available. Over time, such delays could

cost millions of dollars.

If a ship continues to fail tests, both her and her

operator are likely to be ‘named and shamed’, causing

further possible operational disruption. Similarly, when

port states identify treatment systems which don’t work

properly, ships with those systems on board are more

likely to attract attention.

However, one of the biggest concerns – not effectively

addressed by either the IMO’s type approval process or

the US Coast Guard’s regulations – is the issue of in-tank

organism re-growth after treatment. In a letter to IMO

Secretary General Kitack Lim earlier this year,


News AbstractsDry Bulk Terminals Group – November 2016 – Issue 162Coldharbour Marine, a ballast water treatment system

manufacturer with its own unique patented technology

based on inert gas, pointed out that the IMO’s testing

protocol for type approval only requires ballast water to

be held for five days whilst the USCG’s process calls for a

holding time of just one day.

Thousands of ships have ballast hauls lasting more than

one week during which organisms not killed initially

could thrive and multiply, feeding on an abundance of

dead organisms. Therefore a treatment system which

passed the IMO’s type approval process after five days

might not pass again if the type approval test protocol

had been set at 10 or 20 days.

Ship operators who opt to save a few dollars now by

choosing a second-rate treatment system could pay a

very high price later. Delays, deviation, extra time on the

terminal and off-hire all mount up and ultimately, a poor

choice now could even affect a ship’s value in the future.

BWM Convention to accelerate scrapping of tankers: Drewry – 17th Nov

The scrapping of tanker vessels will gain pace over the

next two years as a result of persistent weakness in

freight rates as well as the coming into force of the IMO

regulation on ballast water, according to global shipping

consultancy Drewry.

Despite the recent drop in tanker freight rates,

demolitions have not yet picked up, Drewry noted. But

once owners start feeling the heat of persistent, low

freight rates, scrapping will increase in the next two

years, though at a moderate rate due to the relatively

young global fleet.

And with the Ballast Water Management (BWM)

Convention set to be imposed on 8 September 2017,

owners will look to scrap those tonnage that fail to

install the Ballast Water Treatment System (BWTS).

Drewry noted that existing tankers will have a grace

period to carry out the retrofit during their next special

survey if this occurs after the BWM Convention

implementation date.

Some owners are expected to bring forward fourth

special surveys, if they fall around the scheduled

deadline, in order to delay retrofitting BWTS to the fifth

special survey. But vessel owners for which the survey is

due after mid-2018 will probably have to either retrofit

BWTS or scrap their tonnage.

The additional cost of retrofitting BWTS along with the

special survey will force many owners to scrap younger

vessels before the next survey is due, according to

Drewry.

Drewry estimates that about 74 crude tankers of 14m

dwt and 114 product tankers of 5.6m dwt will have their

fourth special survey due between mid-2018 and 2021,

making them potential victims of the new regulation.

“We do not expect all these vessels to be scrapped since

many of them are on long term charter at attractive

rates, justifying the additional cost of retro-fitting

BWTS.,” said Rajesh Verma, Drewry’s lead analyst for

tanker shipping.

“As tanker rates will remain well above operating costs

during the forecast period, many owners might opt to

operate their vessels after incurring this additional cost

in anticipation of a recovery in rates,” Verma said.

“However, since the tanker market will be oversupplied,

older vessels will find it difficult to get employment,

which in turn will force many owners to scrap their

tonnage just before their next survey is due.”

Shorter dry bulk sailing distances limit upside of higher Chinese coal imports: Bimco – SMN 23rd Nov

Dry bulk shipping is witnessing Chinese imports of coal

rising to two-year high, but shorter sailing distances are


News AbstractsDry Bulk Terminals Group – November 2016 – Issue 162limiting the upside of the higher imports, according to

Bimco.

The latest Bimco report said Australia and Indonesia,

being the main exporters of coal to China, are growing

their market share at the expense of longer haul exports

like the US and South Africa. Therefore dry bulk shipping

is not enjoying full tonne-mile demand when Chinese

imported coal volumes increase.

“After dropping in 2015, the commodity trades into

China are now showing great support to the dry bulk

shipping industry,” said Peter Sand, chief shipping

analyst at Bimco.

“The coal imports are achieving levels as before in 2015

and together with the highest level of imported iron ore,

which is the most influential dry bulk trade, China is

keeping the wheels rolling in terms of shipped volumes,”

Sand said.

“Despite a solid surge in coal volumes, the demand side

of the dry bulk shipping industry will not benefit to the

same extent as before. Since 2014, there has been a

change in the coal trade patterns where China has

singled out its key distributors and focused increasingly

on them. This has brought around shorter sailing

distances, due to the proximity of exporters.”

For the third quarter this year, Chinese seaborne coal

imports achieved the highest tonne-miles since the

fourth quarter of 2014, with the main drivers being

Australia and Indonesia. Unfortunately for the tonne-

miles in the dry bulk shipping, Indonesia has absorbed

80% of the additional sheer seaborne volume in the

third quarter.

“In 2013 China’s coal imports achieved high tonne-miles

for the dry bulk shipping industry, due to China sourcing

23% of its seaborne coal volumes from origins other

than Australia and Indonesia; primarily long haul routes

from the eastern part of the US and South Africa,” Sand

commented.

These trade patterns have since changed to only

sourcing 16% from other origins instead of Australia and

Indonesia in 2016, Sand noted. The origins have also

changed to primarily shorter hauls from the western

part of Canada and Malaysia – and not importing any

significant moaunt from the US and South Africa, since

October 2014.

“For the main exporters, it would be preferable if

Australia can keep their coal supply growing like the coal

demand growth in China, as Australia coal travels 50%

further than Indonesian coal,” he said.

Dry bulk FFA market: Truly a thanksgiving – SMN 25th Nov

The freight market is having its best Thanksgiving Day

for a good couple of years after a topsy-turvy 12 month

of wildly swinging rates.

The signs are clear that 2016 is not going to be ‘”annus

horribilis” for the freight market, thanks to the upturn in

commodity prices and speculation about an upcoming

stimulus infrastructure programme in the US during

2017.

Last Friday, the Baltic Dry Index (BDI) had achieved a

level of 1,257, a two year high, before sliding toward the

1220 region seen in this week. The catalyst for the index

surge might be attributable to Donald Trump’s US

presidential win and his campaign trail promises of an

injection of $1trn over 10 years period on infrastructure

stimulus projects.

Promise or not, the BDI has since reacted strongly –

jumping almost 50% to its recent high and despite its

subsequent slide, iron ore restocking in China has lent

further support, helped by the ongoing ship scrapping

programme that lifted the overall freight rates.

Despite the good market mood, capesize time charter

rates have been slowly slipping downward throughout


News AbstractsDry Bulk Terminals Group – November 2016 – Issue 162the week. According to FIS reports, spot rates began the

week at $18,593, then declined to $16,918 on

Wednesday, dropping 9% in the process.

“Whilst there's no doubt the physical picture is

worsening, the decline would need to accelerate in

order to catch up with the already heavily discounted

paper,” explained an FIS broker.

Panamax rates started the week in similar fashion

opening at $11,063 before losing steam and see-sawing

to sit around 11,066 by mid-week. In the meantime,

supramaxes proved to be the best gainer of the week so

far, with time charter rates increasing from $6,795 on

Monday before settling around the $7,113 region on

Wednesday.

As a result the BDI has dipped to $1,224 mark on

Wednesday but this slip-up is a minor one compared to

the nadir of February 2016, where the index barely

achieved past 290 points.

In retrospect, we need to be thankful for the fact that

freight rates seem to be have passed out of the “valley

of the death” and may have re-entered the “land of milk

and honey” with loads of turkeys, of course, plus a drink

or two, to celebrate the start of the festive season.

Siva Bulk addresses debt rumours, shifts HQ to Dubai – FP 25th Nov

Dry bulk operator Siva Bulk Ltd has clarified the extent

of its debts in a letter to reassure customers.

A copy of the letter obtained by IHS Fairplay indicates

that Siva Bulk, which mainly operates chartered-in bulk

carriers and is part of the Siva Shipping group, has an

overdue loan from Standard Chartered Bank (SCB).

“It is true that the Siva family has been discussing with

SCB to settle an overdue loan,” said the letter. “These

discussions have been ongoing since the beginning of

the year. Back in 2012, as security for this loan, the Siva

family had pledged the shares of Siva Shipping.”

SCB has also recently appointed directors to the board

of Siva Shipping. Given SCB’s aversion to high risk, this

has also restricted Siva Bulk’s expansion.

“With high-profile incidents like [the receivership of]

Hanjin Shipping, we don’t blame the bank for taking a

conservative stance,” added the letter.

Formerly known as Crossbridge Shipping Singapore, Siva

Bulk began operations in 2009, tapping into India’s

surging coal demand as the South Asian nation built

more power plants.

Saravana Sivasankaran, the head of India-based Siva

Group, also has interests in palm oil and commodities

trading.

At any one time, Siva Bulk was said to operate 50

bulkers. However, amid a global economic slowdown

and the Baltic Dry Index hitting an all-time low in 2015,

rumours began to surface of financial problems.

IHS Maritime & Trade's Sea-web data indicate that Siva

Bulk currently has just one period-chartered ship, the

Veenus.

Siva Bulk’s letter also revealed that the company has

moved its headquarters from Singapore to Dubai and

future chartering activities will be handled by Dubai-

based Siva Bulk

DMCC and its other office in London, Siva Bulk UK

Limited.

The company’s letter suggested lower operating costs

were among the motives for relocating.


News AbstractsDry Bulk Terminals Group – November 2016 – Issue 162“In line with similar moves by many other shipping

companies, we see a lot of strategic and financial

benefits in moving our base to Dubai,” the company

said.

Rickmers Maritime clarifies demolition sale – FP 25th Nov

Embattled Rickmers Maritime clarified on Friday that a

2009-built Panamax container ship has not yet been sold

for scrap, contrary to media reports.

Reports claimed that the 4,250 teu India Rickmers had

been sold for scrap, after the value of the ship

depreciated by 66% this year.

Demand for Panamax box ships has plunged following

the expansion of the Panama Canal in June. The canal

expansion now means that post-Panamax container

ships can transit the canal, offering better economies of

scale than Panamax vessels.

In response to the media reports, the Singapore-based

trust denied the sale in a Singapore Exchange filing on

Friday.

It said, “The trustee-manager is in negotiations with one

of the trust’s senior lenders in relation to agreeing terms

of a debt settlement agreement. In connection with the

potential debt settlement agreement, the trust is

considering, amongst other things, the sale of the vessel.

The negotiations in relation to the potential debt

settlement agreement are ongoing and no sale of the

vessel has been concluded.”

The trust has defaulted on an interest payment due to

holders of an SGD100 million (USD70 million) bond issue

on 15 November. The following day, trading of Rickmer

Maritime’s stocks on the Singapore Exchange was

suspended amid growing concerns of an eventual

winding-up.

Rickmers fell to a wider loss of USD74.68 million for the

third quarter of 2016 because of reduced charter rates

and utilisation amid adverse market conditions,

especially for Panamaxes. It had cumulative losses of

USD131.65 million for the first nine months of 2016 and

is likely to incur a full-year loss.

As at 30 September, the trust had a massive working

capital deficit of USD320.58 million but leverage was still

manageable as its equity of USD231.9 million far

exceeded long-term debt of USD12.16 million.

Under these conditions, the trust is unable to repay

USD179.7 million in senior debt due in 2017 and is

unable to meet interest and principal repayments of the

aforementioned bond issue, which matures on 15 May

2017.

The trust is proposing to reduce interest payouts for the

SGD100 million bond issue, from 8.45%/annum to

2.7%/annum from November 2016 to November 2019,




and 5.2%/annum from November 2022 to November

2023.

Just two bondholders turned up at a consent solicitation

exercise on 9 November, and that was inadequate to

meet the 75% approval the trust needs to restructure

the bonds.

The trust said it will hold a consent solicitation exercise

again between 23 November and 21 December, and

before then, it will continue to talk to the bondholders

through dialogue sessions. Should there be insufficient

support from the bondholders, the trust could be wound

up.

In September, the trust was offered a loan facility of

USD260.2 million from two syndicates that include BNP

Paribas, HSH Nordbank, ING Bank, and DBS Bank, but

this is on condition that its restructuring, including the

tweaking of the bonds, is successful.


News AbstractsDry Bulk Terminals Group – November 2016 – Issue 162Consent from at least 75% of the shareholders was

required for the issuance of new shares to be approved

and at an extraordinary general meeting (EGM), 98.67%

of holders of 361,693,414 shares voted for the issuance

of new shares, and 90.09% of holders of 367,420,080

shares approved winding up the trust should it fail to

restructure.

The trust has said that it cannot survive without the

bondholders’ support. Rickmers Holding AG, which holds

34.2% of the trust’s shares, undertook to vote in favour

of the proposal.

Not long before the EGM, Rickmers Group sold all of its

shares in Rickmers Trust Management, in a move that

was widely seen as distancing itself from the troubled

trust.

The shares were sold to Brick Holding International

Invest GmbH, whose ultimate beneficial owner is

Rickmers Trust Management’s chairman, Bertram

Rickmers.

Capesize rates up as iron ore firms – FP 10th Nov

Capesize timecharter rates have soared with more

ships being booked to ship iron ore to China, coinciding

with a surge in prices of the steel-making ingredient.

Spot iron ore prices hit USD70/tonne on 9 November,

rising to a level not seen since January 2015, as Chinese

steel mills sought top-grade iron ore amid curbs on

domestic ore mining. Iron ore futures prices in China

also hit a 30-month high of CNY571.50 (USD84) on

Thursday, amid high trades for coking coal and rising

steel prices.

On 10 November Capesize timecharter rates

averaged USD13,606 per day, up USD1,447 from 8

November. Comparatively, rates averaged USD7,062 per

day exactly a year ago, as the market reeled from the

Baltic Dry Index’s crash to an all-time low.

German bulk carrier Oldendorff was reported to have

fixed the Anangel Hope for USD18,000/day this week

and sources told IHS Fairplay that monthly cargo

volumes from Atlas Iron, a minor Australian iron ore

miner, have remained steady at 12 small Capesize

shipments.

This was even as Chinese customs data showed that

China imported 80.8 million tonnes of iron ore in

October, down from the 87.7 million tonnes imported in

September. The country imported a record 88.4 million

tonnes of iron ore in August. Iron ore imports in October

were however, up 7% year on year and China’s iron ore

imports for 2016 could exceed 1 billion tonnes for the

first time.

In an effort to bring down air pollution, the Chinese

government introduced curbs on domestic iron ore

mining, reducing the number of days that mines can

operate. In May, the mine owners were told that the

mines can only operate 276 days a year, down from 330

previously.

As the world’s largest consumer of iron ore, China

imports 70% of its requirements.

A Singapore-based Capesize broker said, “Owners have

been raising their ideas due to the positive sentiment

and to make up for the negativity seen in the early part

of the year.”

Italian broker Banchero Costa noted that the market

depression helped to speed up scrapping activity, which

provided support to freight rates.

In the first eight months of the year, 72 Capesizes and

very large ore carriers, totalling 12.3 million dwt, were

scrapped, up 10.3% year on year.

Banchero Costa said, “On the demand side, there are

some positive developments as China has continued

importing large volumes of iron ore.”


News AbstractsDry Bulk Terminals Group – November 2016 – Issue 162However, the shipbrokers warned that any gains from

iron ore shipments would be balanced out by slowing

demand for coal-fired generation due to growing

awareness of air pollution.

“The outlook for European coal imports remains very

bleak, and volumes into Japan and South Kore are also

likely to decline this year. Overcapacity still remains.

However, limited contraction of new orders, strong

demolition, and seaborne iron ore trade going forward

could shed some light at the end of the long tunnel,”

said Banchero Costa.

Bulk operator Caria Shipping International made insolvent – FP 8th Nov

Singapore-based dry bulk carrier operator Caria Shipping

International is being wound up after a bunker supplier

took action over failure to pay for marine fuels.

The company was founded in April 2013 by Turkish

national Halit Barkin Yazicioglu and Erik Park, a South

Korean. Both men knew each other when they were

colleagues in Eagle Bulk Shipping’s Singapore office, but

Park left Caria earlier this year.

Market sources told IHS Fairplay that before its demise,

Caria specialised in transporting coal on a spot basis,

chartering ships from the market after securing cargoes.

Shipbrokers who worked with Caria said that more than

half of the company’s cargoes comprised coal, with

smaller amounts of sand and clinker.

“Caria Shipping International carried around two million

tonnes of cargoes in its first year of business and we

were told it aimed to grow this to five million tonnes this

year,” said one broking source.

However, signs of trouble appeared in June when

Scandinavian Bunkering began a winding-up action

against Caria. The latter is said to have negotiated a

payment arrangement, but fell behind on payments

again.

There were also rumblings among shipbrokers that were

owed commissions by Caria.

Around the time Caria was incorporated, Yazicioglu also

set up another similarly named company, Caria Shipping

Pte Ltd, which was the majority shareholder in Vector

Bulkers, a Singapore-based commercial manager of a

fleet of four Supramax bulkers.

The latter's ships, HTC Alfa, HTC Bravo, HTC Charlie, and

HTC Delta, are listed in IHS Maritime & Trade’s Sea-Web

data as belonging to CE Line Corporation, which

according to ship chartering sources, is controlled by

South Korean steel-maker Dongkuk Steel.

IHS Fairplay understands that Yazicioglu operated Vector

Bulkers concurrently with Caria. Both companies shared

the same phone line.

Greek newbuild orders slow but shipowners taking advantage of resale deals – SMN 8th Nov

There is no doubt the pace of ordering new ships has

slowed in recent years, but Greek shipowners continue

to expand and upgrade their fleets ordering new ships

and moving re-sale opportunities buying ships off the

newbuilding berth.

By mid-October Greek shipping interests had a

confirmed 303 ships on order, research into Greek

shipping orderbook by Naftiliaki / Newsfront revealed.

The contracted newbuilding projects was likely larger as

a handful of the 72 companies believed to have ships on

order would not confirm, or more interestingly deny,

they had ships inked to be delivered over the next three

years.

At the same time, at least three mayor projects were

known to be under negotiation, involving up to a dozen

more ships.

As drivers of the world shipping industry Greek owners

presently control the largest commercial armada ever,


News AbstractsDry Bulk Terminals Group – November 2016 – Issue 162which is powering ahead on a strengthening foundation

of modern tonnage.

Greeks are major customers of shipyards around the

globe and in October 2016 some 33m dwt was on order

in China, Japan, South Korea, Finland, Philippines,

Romania and Vietnam, worth an estimated $22.6bn to

the shipbuilders, with more in the pipeline. By

comparison at the same stage of 2010, 127 companies

had 698 ships on order of a total 61.2m dwt worth an

estimated $55bn.

Continuing the fleet’s diversification, the orderbook

included all ship types; VLCC, suezmax, aframax, LNG

and LPG carriers, dry bulk carriers, multi-purpose vessels

and container ships, drillships, offshore supply vessels

and ro-pax units.

At the same time Greeks are leaders in the sale and

purchase market as they upgrade and expand their

fleets through the purchase of newbuilding re-sales. In

2016 to beginning of November some 23 vessels had

been purchased off the berth from VLCCs downwards

for delivery in 2016 and 2017.

In the same period the potential Greek orderbook has

been stripped of 16 newbuildings which have been sold

before, or on, delivery. Another four ships have been

sold by the Greek contracting company to another

company under the same controlling owner.

This is particularly in the case of companies listed in the

US, with interests of 14 of the 32 Greek US quoted

companies involved in new ship projects, with 19 VLGC

obvious drop-down candidates.

Reflecting the needs of the marketplace plus the

demands of the regulators, it is hardly surprising energy

carrying ships dominate this orderbook. There are 132

tankers of various types on order, plus 32 LNG carriers

and 21 LPG carriers. In the past bulkers have been the

vessel of choice, but today there are just 119 on order.

There are 31 container ships, from the maxi to the mini-

size,18 offshore supply vessels, three drillships and two

vehicle carriers also on the orderbook.

DNV GL prepares for 2019 shipping upturn with a digitalisation focus – SMN 8th Nov

With newbuilding orders down roughly 75% this year

the chief of the world’s largest classification society

Remi Eriksen says they are preparing for an upturn in

the shipping industry in 2019.

“This year of course there has been a massive reduction

in the number of newbuildings orders being placed,”

Eriksen, president and ceo of DNV GL, told Seatrade

Maritime News on the sidelines of the recent Danish

Maritime Forum in Copenhagen.

To date around 15 – 16m gt of newbuildings have been

ordered this year, compared to 80 – 82m gt for the full

year in 2015, so overall ordering in 2016 is expected to

be just a quarter of the previous year. When it comes to

the offshore rig space DNV GL says the picture is even

more grim with no orders at all this year.

Remi Eriksen, president and ceo of DNV GL

With most sectors of shipping grappling with severe

overcapacity, as to when Eriksen sees a recovery in

ordering, he commented: “I think it will be 2019 until we

see things getting better for many types of companies in

shipping”, and broadly the classification society is

preparing for 2019. When it comes to the offshore rig

sector this date would be 2020 or 2021.

DNV GL has not been spared the difficult times that have

hit the shipping and offshore sectors but Eriksen says

most of the pain is now behind them as it had already

been taking measures to consolidate as result of the

2013 merger of DNV and GL, although it did have to take

“extraordinary measures” in the shipping and oil and gas


News AbstractsDry Bulk Terminals Group – November 2016 – Issue 162sectors. In total DNV GL’s headcount has reduced from

16,000 in 2014 to around 14,000 today.

“It’s a tough time, but we have taken steps and are

optimistic about the future that we will be to adapt and

help the industry to get out of this mess,” he stated.

Part of how DNV GL believes in can help shipping is

through its involvement in other growing sectors such as

renewables sector and power transmission. This he

believes not only makes DNV GL more robust as whole,

but also “gives us experience and inspiration that we can

take back to shipping”, in particular the development of

battery power and digitalisation.

Digitalisation is major area of investment for DNV GL

with it putting half of the 5% of revenues it pledges for

R&D into this sector. In particular a role is seen in big

data where a move is seen from being an analogue data

hub with for example paper ship designs, to one of being

a digital data bub.

“I think going forward class societies will be the digital

hub for data because they can the trusted partner,

equipment makers are also positioning themselves in

this data platform regime, but I think class societies are

more neutral and better positioned,” Eriksen said.

Dry bulk market faces sharp dip in Q1 2017 if scrapping doesn't increase: Precious Shipping – SMN 4th Nov

Precious Shipping managing director Khalid Hashim has

warned that if scrapping of bulkers does not pick-up in

Q4 the market could dip sharply in the first quarter of

2017.

In the Bangkok-headquartered shipowner’s third quarter

report Hashim said, “things had not gone as well as

expected on the supply side” for dry bulk with a slowing

up in scrapping.

While some 14.09m dwt of bulkers were scrapped in Q1,

this dropped 8.65m dwt in Q2 and for the third quarter

it dropped to 3.24m dwt which he described as “a truly

disappointing number”.

The result has been that while zero fleet growth had

been hoped for this year, for the first nine months of the

year the fleet grew 13.88m dwt or 1.77%.

“If scrapping doesn’t pick up in Q4 we think that you

may see the market dipping back sharply in Q1 2017 due

to the January impact on the supply side (when more

ships are delivered in this one month than any other

month in the year) and the expected slowdown in

demand due to the approaching Chinese New Year. This

is not good news for the market,” Hashim warned.

Indeed it is a market that is still underwater, if improved

on earlier this year, Baltic Dry Index (BDI) peaking at 941

points on 23 September. In February this year the BDI

hit an all time low of 290 points.

Precious Shipping reported a third quarter net loss of

$24.75m compared to $4.9m a year earlier.

The company has cancelled all 12 newbuildings it had on

order at troubled Chinese yard Sainty Marine due to

delivery delays. It has commenced arbitration

proceedings over 11 shipbuilding contracts with the yard

including for two newbuildings delivered in 2014 to

recover warranty claims.

Songa Bulk raises USD74 million and plans Oslo IPO – FP 7th Nov

Songa Bulk, a new venture set up by the Blystad group,

former Golden Ocean group CEO Herman Billung and a

third party, has raised USD74 million in a private

placement of shares and the company plans to

eventually go public in Oslo.

Songa Bulk had set a target of USD50 million to USD100

million for the private placement. The three founding

partners of the company agreed to subscribe for a total


News AbstractsDry Bulk Terminals Group – November 2016 – Issue 162of USD15.4 million of the shares, the company said in an

offer prospectus.

"It is not that easy to raise money for shipping these

days. We had a target of USD50 million to USD100

million, so we are very pleased with the outcome," Per

Kristian Aamlid, a director at the Blystad group, told IHS

Fairplay.

Songa Bulk acquired its first vessel, a Kamsarmax built in

2008 in Japan, from the Blystad group before the share

placement, for USD11.1 million. In the offer prospectus,

the company said it has no debt, no legacy issues nor an

expensive organisation, which means that it will have a

low cash break-even point.

Trading in the shares of Songa Bulk will start on the OTC

list in Oslo immediately and the company will seek full

listing within the next 12 months. Aamlid said that the

listing would take place in Oslo. This would make Songa

Bulk the first shipping IPO in Oslo since the first quarter

of 2014, when Aurora LPG went public there.

Songa Bulk will acquire second-hand dry bulk carriers

that will be owned by single purpose companies that will

be entered in the Norwegian tonnage two system, the

company said in the offer prospectus.

This news indicates that investors are starting to believe

that the end of a prolonged and deep weak cycle in the

dry bulk shipping sector appears to be nearing. The fact

that Songa Bulk is backed by well-known names in the

dry bulk sector obviously has added credibility to the

venture and facilitated the success of the placement.

However, it is also true that Songa Bulk was not able to

raise the full USD100 million that was the ceiling of its

target range, is also noteworthy. It suggests that

investors remain cautious about the outlook in dry bulk,

which appears to have been brightened somewhat by a

stronger than anticipated demand side.

That said, Songa Bulk is now able to proceed with its

business and start looking for vessels to buy. In the

words of Aamlid, that gives reason to be pleased.

Press releases

22nd November

LEADING MANUFACTURER OF PRECAST

CONCRETE PARTS OPTS FOR

HANDLING MACHINE FROM TEREX PORT

SOLUTIONS

Consolis uses Terex® reach stacker at its plant

in Malaysia

Montceau-les-Mines, France, 22 November 2016 –

Reach stackers from Terex Port Solutions (TPS) stand up

beyond container terminals. Consolis Malaysia, a

subsidiary of the Consolis Group, a leader in precast

concrete solutions and headquartered in France, has

used a Terex® TFC 45 R reach stacker at its plant in Port

Dickson, Malaysia since summer 2016. Consolis Malaysia

uses the robust machine for handling and transporting

concrete pipes and components produced on site for the

construction of a water-cooling circuit.

High flexibility of use thanks to specially developed grabThe Terex reach stacker used by Consolis Malaysia is

equipped with a grab developed especially for pipe

components. Guillaume Beduneau, Operation Manager

at Consolis in Malaysia, explains: “With the Terex reach

stacker we can selectively grab and position the

components. In this way we achieve greater flexibility of

use than with other handling machines such as mobile

cranes. So far the machine has also impressed us in

everyday work with its robustness and cost-effective

operation.”

Versatile in container handling and for industrial usePaolo Dazi, Global Sales Director Lift Trucks TPS, is

delighted to have gained Consolis as another industrial

customer for the reach stacker technology of TPS: “The

fact that Consolis has opted for the TFC 45 R proves the

versatility of our reach stackers. Besides container

spreaders, we can also equip them with the appropriate

lifting gear for various industrial applications. In

addition, Consolis benefits from the advantages typical


News AbstractsDry Bulk Terminals Group – November 2016 – Issue 162of all our reach stackers, namely cost-effectiveness,

serviceability and ergonomic design.”

Complete reach stacker model rangeTPS offers customers an extensive range of reach

stackers. The Terex TFC 45 R belongs to the portfolio of

proven machines that has been extended since spring

2015 to include the Terex Liftace™ reach stackers from

the new-generation lift trucks of TPS. TPS completed the

Liftace portfolio mid-year, which now consists of five

models with wheelbases of 6,200 mm to 7,000 mm.

Paolo Dazi: “Taken together, there is now a model range

available to customers, in which container terminals can

find the right reach stacker just as easily as multimodal

terminals or industrial companies.”

7th NovemberTEREX PORT SOLUTIONS FURTHER

STRENGTHENS ITS BUSINESS RELATIONSHIP

WITH ITALIAN TERMINAL OPERATOR

LORENZINI & C. S.R.L.

Third Terex® Gottwald Model 7 mobile harbour

crane since 2014 will be put in operation in

Livorno

Düsseldorf, Germany, 07. November 2016 – Terex Port

Solutions (TPS) has again strengthened its business

relations with a leading Italian terminal operator.

Lorenzini & C. S.r.l. (Lorenzini) will put another diesel-

electric Terex® Gottwald Model 7 mobile harbour crane

in the G HMK 7608 two-rope variant into operation mid-

November. The machine is the third Terex Gottwald

Model 7 crane that Lorenzini acquired in the past two

years. In autumn 2014, a first crane in the G HMK 7608

variant went to the terminal in Livorno, followed in

summer 2015 by a G HMK 7408. With the new machine,

the fleet size of Terex Gottwald mobile harbour cranes

at Lorenzini has increased to five.

Homogenous fleet of TPS machines at LorenziniLike the two other machines, the new G HMK 7608

crane will mainly help Lorenzini to handle containers.

The crane features a maximum lifting capacity of 150 t,

up to 54 m outreach and maximum lifting speeds of

100 m/min. Thanks to a tower extension, it can load and

unload vessels with containers stacked very high on

deck. Francesco Lorenzini, Managing Director of the

company: “With the new crane, we continue to focus on

homogeneity, reliability and performance in our fleet.

Our existing machines from TPS have so far helped us

increase our handling rates, and it is hence logical that

we now opted for another Terex Gottwald machine.

Moreover, we highly appreciate the flexibility of the

technology and the reliable support assured by the

Service Team. Beyond containers, we have regular

demand for the handling of general cargo, and with the

mobile harbour crane we will be able to quickly respond

to respective requests from our international

customers.”

Continuing success for cranes from TPS in ItalyGino Gherri, Regional Director Sales & Services Terex

Port Solutions: “The new machine is another milestone

in our business relations with Lorenzini that started with

the delivery of two used HMK 300 E of Generation 4

from TPS. The positive experience with these first two

cranes has obviously convinced Lorenzini. We are

delighted that the customer has ordered a total of three


News AbstractsDry Bulk Terminals Group – November 2016 – Issue 162Model 7 machines of our Generation 5 within two

years.” Gherri concludes: “With the new G HMK 7608,

TPS confirms its series of success in Italy. Since 2014, we

have taken a total of eight Model 7 cranes into

operation throughout Italy.”

Clarkson commentaries – DBTO (Volume 22, No 11 – November 2016)Dry Bulk Supply & Demand HighlightsAverage bulker earnings rose 5% m-o-m to a high of

$7,495/day in October 2016. Earnings have continued to

improve in recent weeks, with Capesize spot earnings

and the BDI hitting two year highs of $21,964/day and

1,257 points respectively in mid-November. The rise in

bulker earnings has reflected seasonal trends, firm

Chinese iron ore and coal imports and strong US grain

exports. However historically speaking, earnings in the

sector still remain subdued.

Alongside the improved demand picture, several key

commodity prices, particularly coal and iron ore, have


News AbstractsDry Bulk Terminals Group – November 2016 – Issue 162risen sharply in recent weeks. This has been driven by

cuts to Chinese domestic output and the country’s

robust imports, as well as speculative trading on

commodity futures markets. While current price levels

are widely considered to be unsustainable, they have

the potential to impact dry bulk trade flows in the

coming months.

Global seaborne dry bulk trade growth is projected to

remain subdued in 2016, at around 1.4%, with a drop

in seaborne coal trade coinciding with 5% growth in iron

ore trade. Growth in seaborne dry bulk trade is expected

to improve marginally to around 1.9% in 2017, given an

expected stabilisation in seaborne coal trade.

Meanwhile, bulker fleet capacity is projected to record

conservative growth of around 2.3% in 2016,

compared to an average 7.6% p.a. growth rate in the

preceding five years. This is largely due to high levels of

bulkcarrier demolition. In 2017, continued firm

demolition activity and a drop in deliveries are expected

to see bulker fleet growth ease to a 17-year low of 0.7%.

Overall, while seasonal trends could still provide some

support to the dry bulk market in the remaining months

of the year, the outlook for 2017 remains challenging.

Continued supply side measures are helping to bring

bulkcarrier fleet growth levels in line with limited trade

growth. However, given the extent of existing

oversupply, further than expected acceleration in

demand growth appears necessary in order to see

sustained improvements in dry bulk market conditions.

Seaborne Iron Ore Trade

CommentaryGlobal seaborne iron ore trade is projected to increase

5% to around 1,429mt in 2016, before going on to

expand a further 4% in 2017. Shipments into China are

expected to provide the stimulus for global seaborne

iron ore trade growth in both years, with current

projections indicating an 8% and a 5% rise in Chinese

iron ore imports in 2016 and 2017 respectively.

Meanwhile, iron ore shipments into other Asian

countries are expected to drop 3% to around 242mt in

2016, reflecting the financial pressure on steel

producers in the region, given the historically high levels

of steel products exports from China and the low steel

price environment. This is also the case in Europe, with

current projections indicating a 3% decline in iron ore

shipments into the EU to around 106mt in 2016. Looking

further forward, easing Chinese steel products exports

and an improvement in global steel prices are expected

to reduce pressure on steel manufacturers in the EU and

other Asian countries, with iron ore shipments into

these regions likely to stabilise in 2017.

Iron Ore NewsTotal Chinese iron ore imports rose 9% y-o-y to 844mt in

January-October 2016, supported by three key factors.

Firstly, domestic Chinese iron ore output fell 7% to 1.1bn

tonnes in January-October 2016. Secondly, Chinese

construction activity has been surprisingly firm,

supported by government stimulus measures. This has

seen an improvement in Chinese steel production since

early 2016, although overall total output has been flat y-

o-y in the first ten months of the year. Finally, Chinese

iron ore stockpiles have increased and hit a 26-month

high of 109mt at the start of November. Overall, current

projections indicate an 8% rise in Chinese iron ore

imports in full year 2016. Looking further forward, while

there are concerns regarding the outlook for steel

production and conditions in China’s real estate market,

the country’s iron ore imports are expected to grow 5%

in 2017, supported by the availability of competitively

priced imported ore and further domestic output cuts.

Continued firm Chinese imports and speculative trading

in the iron ore futures market by Chinese investors has

supported a recent sharp rise in iron ore spot prices. The

benchmark Qingdao CIF iron ore spot price hit $80/t in

mid-November, up 39% from a $58/t average in

October. However, this is broadly considered to be

unsustainable, partly reflecting the increasing availability

of competitively priced iron ore in the global market.

Total Brazilian iron ore exports are projected to grow 4%

in 2016 and 8% in 2017, with the first cargoes from

Vale’s S11D mine set to be shipped in Q1 2017.


News AbstractsDry Bulk Terminals Group – November 2016 – Issue 162Production at the mine is set to rise towards an eventual

90mtpa in the coming years. In Australia, output at Roy

Hill is expected to expand to a target capacity of 55mtpa

in early 2017, while BHP and Rio Tinto’s output is

expected to grow at a relatively conservative pace.

Overall, total Australian iron ore exports are projected

to rise 5% in 2016 and 3% in 2017.

Seaborne Coking Coal Trade

CommentaryGlobal seaborne coking coal trade is projected to drop

4% to 239mt in 2016. This is expected to be largely

driven by a 12% drop in total European seaborne coking

coal imports, to a seven year low of 43mt. The decline in

European coking coal import demand in the year to date

has largely reflected the pressure placed on the region’s

steel manufacturers, given historically low steel prices in

1H 2016 and firm competition from a steady flow of

Chinese steel products exports. Outside of China, steel

producers across much of Asia have also been

undermined by a flood of Chinese steel products

exports. This has contributed to a slide in coking coal

imports into the region, with current projections

indicating a 4% drop in total Asian coking coal imports

(excluding China) to 136mt in full year 2016. Global

seaborne coking coal trade is then expected to stabilise

in 2017, with current projections indicating a 1%

increase to around 241mt. This reflects expectations for

a gradual slowdown in Chinese steel products exports

and a slight recovery in steel production across much of

Europe and Asia.

Coking Coal NewsGlobal coking coal prices have recorded a significant rise

in recent months, supported by increased tightness in

the Chinese coal market. Chinese domestic coking coal

output fell 11% y-o-y in January-September 2016, while

growth in the country’s steel output also supported a 4%

y-o-y increase in imported coking coal shipments into

the country in the same period, to 28mt. Combined with

a recent rise in speculative trading on coal futures

markets, this saw the Australian FOB hard coking coal

spot price reach a five year high of $315/t in early

November. While prices have since stabilised in recent

weeks, the current high price environment has

stimulated a destocking response in several major

importing countries such as India and Japan and has the

potential to disrupt coking coal trade in the coming

months.

Indian coking coal imports fell 8% y-o-y to total 35mt in

the first nine months of 2016. This was initially driven by

the pressure placed on the country’s steel industry by a

44% y-o-y rise in steel products imports from China to

15mt in Q1 2016. This saw coking coal shipments into

India drop 19% y-o-y to 12mt in the same period. New

Delhi responded by introducing minimum steel prices,

supporting the country’s steel manufacturers and a 2%

y-o-y increase in Indian coking coal imports in April-June

2016, to total 13mt.

However, the recent rise in global coking coal prices has

seen many Indian importers hold back in recent

months, with coking coal shipments into the country

down 8% y-o-y to 11mt in Q3 2016. Overall, Indian

coking coal imports are projected to drop 6% to 45mt in

2016, followed by a 2% increase to 46mt in 2017.

This reflects a potential easing of coking coal prices in

the coming months, combined with the impact of

continued government measures to support the

country’s steel industry.

Seaborne Thermal Coal Trade

CommentaryGlobal seaborne steam coal trade is currently projected

to drop 1% to total around 879mt in 2016, largely due to

a significant decline in European import demand. Total

seaborne steam coal imports into the EU fell 18% to

73mt in the first nine months of 2016, driven by a dearth

in shipments into the UK, given the impact of

environmental policies and the availability of

competitively priced gas imports. Meanwhile, following

a slow start to the year, total Asian seaborne steam coal

imports are projected to grow 2% to 687mt in 2016,


News AbstractsDry Bulk Terminals Group – November 2016 – Issue 162supported by a strong increase in Chinese import

demand in recent months. Looking ahead, global

seaborne steam coal trade is projected to grow

marginally to 882mt in 2017. Steam coal shipments into

Asia are projected to remain relatively steady, with a

potential drop in Chinese and Indian imports offset by

growing demand among developing countries in the

region, such as Vietnam and the Philippines.

Meanwhile, the pace of decline in seaborne steam coal

imports into the EU is expected to ease from 19% in

2016, to 8% in 2017.

Steam Coal NewsChinese total coal imports rose 18% y-o-y to 202mt in

January-October 2016, supported by a decrease in

domestic output. The government’s enforcement of a

276pa working day limit on Chinese coal mines in March

2016 contributed to a 10% y-o-y drop in domestic steam

coal production in the first nine months of the year, to

2.0bn tonnes. Beijing removed these restrictions in

October, given the significant rise in coal prices, with the

Qinhuangdao 5,500kcal CIF price hitting $92/t at the

start of November, up 61% from the start of the year.

The government has since encouraged domestic miners

to ramp up steam coal output and ordered the country’s

rail lines to prioritise steam coal cargoes. Provisional

reports indicate a firm rise in railings from north-east

China to levels not seen since March. While an increase

in domestic supply is expected to dampen the country’s

steam coal import demand growth in the coming

months, Chinese seaborne steam coal imports are still

projected to increase 15% to 148mt in full year 2016.

This is expected to be followed by a drop of around 1%

in 2017, reflecting the likely impact of stabilising

domestic output. However, this is subject to uncertainty,

given the potential for further policy changes.

Indonesian steam coal exports fell 6% y-o-y to 204mt in

January-July 2016, with limited Indian import demand

and a drop in global steam coal prices putting pressure

on Indonesian coal miners in 1H 2016. The 5,900kcal

FOB price averaged $46/t in the first six months of the

year, down from an average of $63/t in 2013-15.

Coupled with a number of disruptions, this saw coal

output from Indonesia’s Coal Contract of Work holders

drop 22% y-o-y to 153mt in January-September 2016.

While the recent increase in steam coal prices will have

come as a relief to many coal miners, reports indicate

that Indonesia’s coal output has remained subdued,

with companies citing concerns over the sustainability of

price levels, as well as logistical and bureaucratic

barriers to growth. Overall, current projections indicate

a 6% drop in Indonesian steam coal exports in full year

2016, followed by a 1% drop in 2017.

Grain Imports

Grain Trade NewsGlobal wheat and coarse grain trade is projected to drop

around 2% to 337mt in the 2016/17 crop year. This

would represent the first decline since 2009/10.

Expectations for a drop in the current crop year are

largely driven by projections for a 33% contraction in

total grain imports into China, reflecting the country’s

high existing inventories and firm levels of domestic

output. This is expected to lead to a 7% decline in

total Asian grain imports in 2016/17, to 109mt.

Meanwhile, grain shipments into the Middle East are

projected to drop 1% to 54mt in 2016/17, as a decline in

import demand in Iran and Saudi Arabia is nearly

balanced out by increasing grain shipments into a

number of smaller importing countries in the region.

Finally, grain imports into Africa are projected to drop

1% to 75mt in the 2016/17 crop year, with shipments

into the major importing countries in the region, Egypt

and Algeria, remaining unchanged.

Grain Imports

Grain Trade NewsChinese grain imports are projected to drop 33% to

around 16mt in 2016/17. This is expected to be driven

by a 50% drop in the country’s import demand for

maize, barley and sorghum, to a combined total of 12mt

in 2016/17. Chinese coarse grain import demand is

being dampened by the country’s high maize


News AbstractsDry Bulk Terminals Group – November 2016 – Issue 162inventories, which hit a record 240mt in Q1 2016, after a

state corn purchasing programme led to a glut of

domestic output. The policy has since been replaced by

a market-based system, yet stockpiles of the feed

remain at around 200mt. Furthermore in late October,

Beijing suspended sales of national maize stocks, in

order to promote sales of the current crop, directly from

producers. Given that the country’s maize harvest is

projected to hit 217mt in 2016/17, the third highest

level on record, this represents a further blow to China’s

import demand for coarse grains in 2016/17.

Grain Exports

Grain Export NewsIn the 2015/16 crop year, Brazil exported 37mt of maize:

second only to volumes exported from the US. However,

current projections indicate that Brazilian maize exports

will drop 54% to 18mt in 2016/17, which would see the

country relegated to the world’s fourth largest exporter.

This is largely expected to be driven by the country’s

limited domestic supplies, following a particularly poor

harvest in late 2015/16, when Brazilian maize output fell

18mt on 2014/15. Brazil’s livestock industry is also

currently looking to the next maize harvest to help

chicken and pork output recover from a 15% drop in 1H

2016, which was due to a shortage of animal feed.

Furthermore, in early October 2016, the Brazilian

authorities paved the way for imports of US maize,

further highlighting the scale of damage to Brazil’s

recent harvest and the country’s limited feed supplies.

Minor Bulk Trades

CommentaryChinese steel products exports hit a record 111mt in

2015, accounting for 27% of global seaborne steel

products exports. Steel products shipments from China

went on to grow 9% y-o-y to 83mt in the first seven

months of 2016. However, a rise in Chinese domestic

steel consumption has reduced the volumes of excess

steel tonnage available for export, which saw China’s

steel products exports fall 15% y-o-y in August and

September combined. Chinese steel mills are also

expected to come under continued pressure from tariffs

introduced in several importing regions. The EU recently

imposed duties of up to 74% on Chinese heavy plates,

while the election of Donald Trump as the US President

has cast doubt over future trade policies in the US.

Overall, Chinese steel products exports are projected to

grow 2% to 113mt in 2016, reflecting the firm start to

the year, before dropping slightly in 2017.

Bulkcarrier Fleet

CommentaryIn October 2016, MOL placed an order for a 140,000 dwt

Capesize unit, scheduled for delivery in 2020. This

represented the first reported Capesize contract since

April 2016, when the final 10 of a series of 30 Valemax

orders were placed. The 31 Capesize vessels ordered in

the first 10 months of the year, with a combined 12.1m

dwt, represent a significant increase on 2015, when a

combined capacity of only 5.8m dwt was contracted in

the full year. Nevertheless, Capesize contracting activity

has still been somewhat more subdued than the levels

seen in 2013-14, contributing to the Capesize orderbook

hitting a ten year low of 42.3m dwt, or 12.2% of the

fleet, at the start of November 2016.Fleet Watch – To 1st November 2016

Capesize vessels:

96 delivered 74 scrapped 31 ordered

CommentaryPanamax scrapping increased 55% y-o-y in terms of

tonnage in the first ten months of 2016, with 105 units

of a combined 7.6m dwt removed from the fleet. This

has already exceeded the average 5.5m dwt of Panamax

tonnage demolished annually in 2013-15. Difficult

market conditions have also seen an increasing number

of younger vessels scrapped in the year to date, with

51% of Panamax vessels removed from the fleet in


News AbstractsDry Bulk Terminals Group – November 2016 – Issue 162January to October 2016 below the age of 20 at the time

of demolition. Overall, the average age of Panamax

vessels demolished in the first ten months of 2016

dropped to historically low levels of 20.6 years, which

was down from 23.0 years in full year 2015.Fleet Watch – To 1st November 2016

Panamax vessels:


CommentaryHandymax contracting activity has declined sharply in

the year to date, with only a handful of orders placed in

January-October 2016. This compares to 104 Handymax

vessels of a combined 6.3m dwt ordered in the same

period in 2015. The siginficant decline in Handymax

contracting in the year to date has driven a 37% drop in

the size of the Handymax orderbook in dwt terms since

the start of the year. At the start of November 2016, the

Handymax orderbook consisted of 404 units of a

combined 24.7m dwt, which represented the smallest

size since December 2006 in terms of tonnage. Of those

vessels on order, Ultramax vessels accounted for 84% of

the total Handymax orderbook in terms of dwt and 81%

in terms of vessel numbers.Fleet Watch – To 1st November 2016Handymaxes:


Handysizes:


Commodity CountdownASEAN: A Complex Beast With Growth Potential

Feeding the Beast

ASEAN dry bulk imports rose 19% between 2013 and

2015, hitting 233mt last year, driven by growth in the

region’s steam coal imports, even if this was largely

sourced from Indonesia. ASEAN coal fired power

generation reached an estimated 400 TWh in 2015, up

from 250 TWh in 2013, while the region’s steam coal

imports rose 12% y-o-y to 71mt in 2015. In 2016,

continued firm steam coal imports and a rise in steel

products and grain volumes to record levels are

expected to drive a 7% increase in total ASEAN dry bulk

imports to 250mt, or 5% of global seaborne dry bulk

imports. This is expected to account for around 25% of

total dry bulk trade growth this year.

A Waking Dragon?

While volumes of dry bulk shipments into ASEAN are

overshadowed by those into China, India and the EU, the

outlook for demand in these major regions is uncertain.

In contrast, there is a consensus for continued ASEAN

dry bulk import growth, supported by urbanization and

rising demand for energy. 26 GW of additional ASEAN

coal fired power capacity (47% in Vietnam) is set to

come online by 2020, while a further 55 GW of capacity

additions has also been announced. This will more than

double ASEAN coal fired power capacity, supporting

steam coal import growth. Vietnamese steam coal

imports are expected to rise 32% to 13mt in 2016, while

some project total annual ASEAN steam coal imports to

hit 125mt by 2020. Furthermore, an emerging middle

class and a growing manufacturing sector are also set to

boost future ASEAN grain and minor bulk imports.

Export Growth Shackled

However, ASEAN is a net exporter of dry bulk

commodities, with an estimated total of 482mt, or 10%

of global seaborne dry bulk exports shipped in 2015.

ASEAN dry bulk exports have been in constant decline

since reaching a high of 643mt in 2013. This has been

driven by events in Indonesia, especially the


News AbstractsDry Bulk Terminals Group – November 2016 – Issue 162introduction of an unprocessed mineral export ban in

2014 and cuts in the country’s steam coal exports, which

hit a four year low of 366mt in 2015. This year, total

ASEAN steam coal exports are projected to drop a

further 5% to 355mt. Furthermore, ASEAN minor bulk

exports are expected to fall 25% to 85mt in 2016, driven

by bauxite and nickel ore mining bans in Malaysia and

the Philippines respectively. Overall, current projections

indicate a 4% drop in total ASEAN dry bulk exports to

439mt in 2016. So, while ASEAN dry bulk imports have

recently grown healthily, the overall picture has been

complicated by the region’s declining exports. However,

given that the import outlook remains positive, fewer

disruptions and easing downward pressure on ASEAN

steam coal exports could see the region provide a

growing net positive contribution to global seaborne dry

bulk trade in the coming years.

And Finally.......

I will take the lack of responses to mean you don’t care if the addition of some entertainment is included or not and will continue with it to amuse myself. If there is anything specific that you would like to see here, please do let me know.

*****

October Answers.....

*****

I asked how with only a 3 litre and 5 litre container you can you measure 4 litres?

The answer;

Fill the 5 litre container and from that fill the 3 litre container. Empty the 3 litres out and pour in the remaining 2 litres from the 5 litre container. Refill the 5 litre container and from that top up the 3 litre container which has space for 1 more litre. This will leave you with 4 litres in the 5 litre container.



*****

The logic puzzler asked;

What is greater than God,more evil than the devil,the poor have it,the rich need it,and if you eat it, you'll die?

The answer;

Nothing.

November Teasers......

There is no picture again this month but I am looking for something suitable for December.

*****

The maths question this month:

I am an odd number. Take away a letter and I become even: what number am I?

And a logic puzzle this month:

Arnold Schwarzenegger has a big oneMichael J Fox has a small oneMadonna doesn't have onethe Pope has one but he never uses itBill Clinton has one and he uses it all the time!What is it?

*****

That is it for November. Answers to [email protected] please and I will reveal the answers in the December issue.

Further Information:

Clarkson Research: www.crsl.comFairplay: www.fairplay.co.ukFearnleys: www.fearnresearch.com

==================FUTURE ABSTRACTS

DBTG members are active world-wide so please contribute any interesting items from your own daily reading for inclusion in future issues of News Abstracts.Please send by e-mail to the Secretariat address below=================DBTG SecretariatTel: +44 1273 933817 Fax: + 44 1273 933715E-mail: info@dry bulkterminals. org


http://www.fearnresearch.com/

http://www.fairplay.co.uk/

http://www.crsl.com/

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