Samsung won't let CSAV renegotiate ship purchase

Samsung Heavy Industries, which is a shipbuilder, refuses to let CSAV cancel some orders for new ships they placed 2 years ago.

CSAV is in pretty severe financial trouble. They were going to get some concessions from German shipowners with whom they have charters, but now that Samsung is not budging, who knows.

You would think Samsung would look at what happened today with Chrysler. They filed for bankruptcy protection because some of the hedge funds who held their bonds wanted too much money.

I presume Chile (where CSAV is based) offers a company bankruptcy reorganization protection, as we do in the U.S.

If so, I think that is the only hope CSAV has to get out of this mess. Unless someone wants to buy them, which I doubt.

Here's more info from Lloyds List

CSAV in crisis as Samsung rebuffs rescue efforts

Patrick Hagen and Janet Porter - Thursday 30 April 2009

THE survival of embattled Chilean shipping group CSAV could rest with South Korean shipbuilder Samsung Heavy Industries after German owners attending crisis talks in Hamburg in April attached conditions to a rescue plan.

Hamburg Süd to join Grand Alliance

A press release received from Hamburg Süd basically says they are pulling their ships out of the Europe to U.S. trade and will buy slots from other carriers in the Grand Alliance (a group of carriers operating a joint service).

It also gives information regarding a revamping of the service between Europe and South America, which I am quoting, should anyone be interested.

In view of rapidly deteriorating market conditions on the
Transatlantic, Hamburg Süd has decided to indefinitely suspend its
announced standalone service and replace it by participating in the
Atlantic Express Service (ATX) of the Grand Alliance.

Initially chartering slots, Hamburg Süd will be providing a vessel to
the service at a later stage.

The agreement is still subject to FMC approval which is expected to
be received by mid-June at which time the Hamburg Süd stand alone
service will be phased out while the new arrangement will be
implemented.

Hamburg Süd indicated that their decision was triggered by fast
declining volume and revenue levels in the Transatlantic which could
no longer justify adding further tonnage to an already greatly
overtonnaged trade. The shipping group hopes that the capacity
reduction will contribute to improve the balance of supply and demand
in the trade. At the same time, the cooperation with the Grand
Alliance provides Hamburg Süd's customer base with a cost
competitive, proven high quality product.

North Europe - South America East Coast (ECSA)
In the North Europe-ECSA trade, Hapag-Lloyd and Hamburg Süd have
decided to continue their cooperation by operating two complementary
weekly services on a fixed day frequency. Rotations are reconfirmed
to be as follows:

Sling 1: Rotterdam - Tilbury - Hamburg - Antwerp - Le Havre - Santos
- Buenos Aires - Montevideo - Rio Grande - Santos - Sepetiba -
Rotterdam

Sling 2: Rotterdam - Hamburg - Antwerp - Le Havre - Sepetiba -
Paranagua - Navegantes - Santos - Salavador - Rotterdam

The complementation of both slings provides for the most
comprehensive port coverage in the trade.

Maersk will not arm ships

I find this rather surprising, considering the Maersk Alambama espisode.

DANISH shipping giant AP Moller-Maersk is opposed to weapons on board its ships that could be used to fend off piracy attacks.

Have we hit bottom?

Danaos chief detects first signs that worst is over for box trades

PIRAEUS-based containership owner Danaos Corp has said it believes the worst of the container shipping crisis may have passed, although it admitted its perception of a possible nascent recovery “remains to be tested” and might not be evident in new chartering activity for months.

Personally, I find this hard to believe.

I am sure there has been an uptick lately since we are over the Chinese New Year and orders have started for the peak season in the U.S.

However, I doubt carriers are really making any money. Maybe we have hit bottom in terms of drop in cargo, but I don't think that will translate into earnings for a number of years.

Russian Navy captures 29 suspected pirates

MOSCOW (Reuters) – A Russian warship captured a suspected pirate vessel with 29 people on board off the coast of Somalia, Russian news agencies reported on Wednesday, citing defense ministry sources.

Maersk sued by crewman over pirate attack

The carriers have been reluctant to arm their ships against pirate attacks, when sailing close to Somalia.
Maybe this lawsuit will make them reconsider.

Richard Hicks, chief steward of the recently-attacked boxship Maersk Alabama, filed a suit in a Houston court on Monday against Waterman Steamship and Maersk Line Ltd, alleging they knowingly sent him into the piracy-prone Gulf of Aden near Somalia without adequate protection. Mr Hicks is seeking at least $75,000, according to the suit.

BBC container unloads in Yokohama, Japan

The BBC Box discharged in Japan on 28 April 2009

NYKU8210506

APR-28-2009 14:07 Discharged from vessel at last port of discharge Yokohama, JPN NYK CLARA/107

Moves to Date Event Location Mode
APR-28-2009 13:20 Vessel Arrival Yokohama, JPN NYK CLARA/107