Containership MOL Comfort - CORRECTION

This is really unusual.  The vessel broke in two and sunk.
CORRECTION
The vessel apparently has not sunk.  The 2 halves of the ship are each floating (which
I find rather amazing).

From gCaptain

MOL Comfort Suffers Broken Back

New Service between South Africa and South America

New direct service between South Africa and Argentina and Brazil.  Only problem is it operates only fortnightly (which is every 2 weeks).

Press Release from Hamburg Sued

Press Release

 

Hamburg Süd launches a new service between South Africa – Argentina/Brazil

 

Hamburg, 12 June 2013. From July 2013, Hamburg Süd will be offering a new service from South Africa to Argentina and Brazil (SABR Service) in cooperation with Nile Dutch. The new fixed-day fortnightly service will provide shippers with a regular and reliable westbound link from South Africa to South America with connections to Europe and North America.

 

The new service rotation will be: Durban – Port Elizabeth – Buenos Aires – Rio Grande – Itajai – Santos – Rio de Janeiro.

 

Further destinations in South America, North America and Europe will be offered in transhipment.

 

The first westbound call at Durban will be with “Buxfavourite” on 21 July 2013.

 

In the opposite direction to the SABR Service Hamburg Süd serves the trade from South America to South Africa with its New Good Hope Express Service offering twice-weekly direct links from Brazil and the River Plate to South Africa.

 

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How Long Before Recovery in International Shipping?

I was always told that international shipping had one of the longest business cycles out of all types
of industries.   I never experienced this myself, as apparently the last really bad downturn was
in the 1960's, and I'm a bit old, but not that old.

I guess we are in the 5th year of the downturn, and many people have said there is a 7
year business cycle, which would mean 2 more years of tough times.  Of course, one
cannot know for certain (for if I did, I would be quite wealthy!).

Carriers want to continue replacing old ships with new, bigger and more efficient tonnage.
The scrapping rates of older tonnage has increased a bit, but the carriers have been a bit
too optimistic, expecting business to pick up at a brisk pace (rather than picking up at a slow
pace).  So once again the carriers have shot themselves in the foot, have too much space,
and now they find it difficult to raise rates up to levels which are required to make a profit.

Some carriers are looking for financing for new ships, which I expect will be difficult to come
by.   Only the carriers with their own money, or ones who are secure enough to issue their
own bonds  will have the funds for new buildings.   But, considering charter rates are
once again quite low (rumours of 10,000 TEU vessel chartered at USD 6,000 per day),
the benefit of new buildings is reduced.

This continued downturn will force carriers to become more efficient, as when times are
tough, they must trim the fat.   It would be really nice if the carriers would take this time
and invest and implement extremely efficient computer systems, but so far everyone is
pretty much stuck with their 1970 computer systems.  

Perhaps Federal Express will buy an ocean carrier, and really shake up the industry.

Hamburg Sud and Hapag-Lloyd merger talks halted

Press Release from Hamburg Sud

 

Suspension of project work relating to a merger of Hapag-Lloyd and Hamburg Süd

25-Mar-2013

Press Release

The shareholders of Hapag-Lloyd and Hamburg Süd have jointly arrived at the conclusion to discontinue talks temporarily.
Hamburg Süd does not wish to comment publicly on the subject matter of the points under discussion. It does, however, expressly point out that the owners of Hamburg Süd – unlike the impression conveyed in various press articles – positively favour a flotation of the merged new company if certain conditions are met.
The Advisory Board and Executive Board of Hamburg Süd remain firmly of the view that the merger of Hapag-Lloyd and Hamburg Süd would be of enormous benefit for both companies as well as for Hamburg as a shipping location.

Hum.  It would be interesting be to a "fly on the wall" during these discussions.

Will U.S. Dockworkers Strike?

What a shock.  The ILWU (representing the U.S. West Coast) went on strike for 8 days in December.

They came to an agreement, but, low and behold., yesterday the members did not vote for the agreement.
What now?  

No one knows.  Will there be another strike in Los Angeles/Long Beach?

And then what about the U.S. Atlantic and Gulf ports?   The union reached a "tentative agreement", but
the contract (to my knowledge) expired Feb. 6.   So presumably they are working without a contract.

Today reports say they will continue negotiations and expect to conclude in March. ??

Perhaps the carriers don't get this, but it looks to me that the unions are in a very good spot
to really shut down the country.  What would happen if the U.S. Atlantic and Gulf port went
out on strike, as well as the Long Beach/Los Angeles port?

Somebody better ask for a contract extension for the U.S. East/Gulf Port until the new contract
is place.

ILA ReachesTentative Agreement

Looks as if there won't be a strike at the U.S. Atlantic and Gulf Ports.   The agreement is
not yet signed, but they are close.

Here's the press release

Friday, February 1, 2013 Contact: John Arnold
For Immediate Release Director of Public Affairs
Web site: www.fmcs.gov Phone: (202) 606-8100

Update on United States Maritime Alliance
And International Longshoremen’s Association
Labor Negotiations

WASHINGTON, D.C. — Federal Mediation and Conciliation Service Director George H.
Cohen issued the following statement today on the labor negotiations between the United States
Maritime Alliance and the International Longshoremen’s Association:
“I am extremely pleased to announce that the parties have reached a tentative agreement for a
comprehensive successor Master Agreement. The tentative agreement is subject to the
ratification procedures of both parties and, as well, to agreements being achieved in a number of
local union negotiations. Those local negotiations are ongoing and will continue without
interruption to any port operation. Out of respect for the parties’ ratification processes, and
consistent with the Agency’s long-standing confidentiality policy, we will not disclose any
details concerning the substantive provisions that have been reached.”
“However, as the negotiations have been conducted under the auspices of the FMCS,
commencing last September and continuing to date, I can report that the tentative agreement
reflects the culmination of good faith negotiations in which the parties successfully
accommodated strongly held competing positions because of their commitment to problem
solving. Again, collective bargaining has proven its worth by avoiding a potential work stoppage
that would have had a severe negative impact on the nation’s economy.”
“On behalf of the FMCS, I want to especially convey my thanks to ILA President Harold
Daggett and USMX Chairman and CEO James Capo for their leadership, patience, and
persistence and to their respective hard-working negotiating committees. Finally, my colleagues
Deputy Director Scot Beckenbaugh, Director of Mediation Services Jack Sweeney, and
Commissioner Pete Donatello provided valuable assistance both to me and the parties throughout
this lengthy process.”
###
The Federal Mediation and Conciliation Service, created in 1947, is an independent U.S. government
agency whose mission is to preserve and promote labor-management peace and cooperation.
Headquartered in

U.S. East/Gulf Port Strike Postponed for 30 days

It has been agreed to extend the current contract for 30 days, which will postpone the
strike until Jan. 29 (I guess).

I still think there will be a strike, so this will give a chance for everyone to increases their
inventories to get them through the strike.