Connect with us

Archives

BIMCO: 40m of Dry Bulk Tonnage to Be Scrapped in 2016

Published

on

  • As NDLEA intercepts 3,000kg of Tramadol disguised as condoms

Dry bulk shipping capacity of 40 million DWT will be sold for demolition during 2016, making this year the busiest year on record for shipbreaking, according to BIMCO’s forecasts.

The prediction comes on the heels of a yet another miserable year start for the industry sector with eroding freight rates ranging from USD 3,361 per day for a panamax ship to USD 4,416 per day for a supramax since January 11, 2016.

Despite devastating market conditions in 2015, “only” 30 million DWT were demolished, BIMCO said, adding that even a modest improvement in the freight rates caused demolition to halt.

Limiting the inflow of new capacity into the market going forward also requires a low level of new orders to be placed. In that sense, 1.4 million DWT of new capacity ordered during Q4-2015 is just what is needed.

For 2015 as a whole, 17.7 million DWT was ordered, the lowest amount since 2001. Hopefully, 2016 will see even lower dry bulk tonnage being ordered, BIMCO added.

For 2016, BIMCO expects new deliveries of 50 million DWT despite extensive postponements, delays and rescheduling.

On record for scheduled deliveries, Clarksons reported 92 million DWT for 2016. BIMCO assess that 40% of the scheduled deliveries will be delayed by one year. Moreover, the majority of the capacity will be delivered in first half of the year.

The distribution of new capacity is likely to remain unchanged from 2015. In round numbers that means: 40% of the new capacity will be delivered into the capesize segment, 20% into panamax, 30 % into handymax and 10% into the handysize segment.

With respect to the market outlook, BIMCO predicts that coal imports into both India and China will go down in 2016, following the trend of 2015.

2016 is also likely to see a return of India to the iron ore export market – something that will be a positive for seaborne demand if market share is taken from Australian exporters, but a negative if it limits Brazilian Asia-bound exports.

For the coming months: January-April, BIMCO expects transported volumes to diminish as they traditionally do from the fourth quarter to the first. This increases a fundamental imbalance as the delivery of new ships in recent years has followed the opposite pattern.

Namely, more new ships are being delivered early in a new year rather than late in the year just about to end, achieving the newest “year of built” for the record. The downward pressure should ease somewhat in the second quarter of the year.

BIMCO said that it remains worried about the sustainability of freight rates in 2016.

“The demand side seems unable to buoy profits as both Chinese and Indian growth cool off and the rest of the world is still importing smaller volumes than before the financial crisis of 2008.

“A new record of shipbreaking volumes in 2016 could limit fleet growth to just 10 million DWT, so in fact “all we need” is an increase in transported volumes to around 60 million tons to balance out the inflow. As little as this may seem, growing from a base of 4,700 million tons – it can prove to be a high bar to jump before we start eating into the significant oversupply of ships,” BIMCO concluded.

In the meantime, the National Drug Law Enforcement Agency has intercepted a shipment of Tramadol disguised and packaged as condoms and other illicit drugs at the Tin Can Island Port, Lagos.

The two importers, who claimed to be pharmacists are also being investigated in connection with the unlawful importation.

Tramadol is a prescription drug belonging to the class of opioid. The total weight of the seized drug is 3,078.56kg.

A statement by the NDLEA Head of Public Affairs, Mr. Ofoyeju Mitchell, claimed that the drug was detected during a physical examination at the port by the officials of the agency and others.

The statement quoted the NDLEA Director of Operations and General Investigations, Mr. Olugbenga Mabo, as saying that prosecuting the suspects would address a lack of respect for due process by professionals.

Mabo said, “We have observed an infringement of laws with adverse consequences on the nation. The drugs were imported without permit by the relevant authorities. Prosecuting the suspects will serve as a warning to others. The case has been assigned to the Joint Task Force of the agency for investigation.”

NDLEA Commander at the Tin Can Port, Mr. Nse Inam, gave the names of the suspects as Onuchukwu Owulu (38) of Benow Pharmaceutical Impex Limited based in Lagos and Igboanugo Tochukwu (35) of Vingil Pharmaceuticals Limited, Asaba. According to Inam, the shipment of controlled drugs originated from India.

Owulu allegedly imported 107 cartons of Tramanow, a brand of Tramadol weighing 1,078.56kg while Tochukwu imported 250 cartons of Vingil Tramadol weighing 2,000kgs. Both suspects are being investigated.

Preliminary investigation by the NDLEA Joint Task Force headed by Mr. Olumuyiwa Adeniyi revealed that both pharmaceutical companies did not obtain import permit for the said drug which is contrary to section 11 subsection (a) of the NDLEA Act.

It was also gathered that the drugs were imported for illicit distribution as they were disguised in cartons of condoms and other illicit pharmaceutical products. The discovery of the drug was made during an examination of the container prior to delivery at their preferred destination outside the port. In addition, the companies could not produce either import or clearance permit for the said drugs.

World Maritime News with additional report from Punch

Archives

WAIVER CESSATION: Igbokwe urges NIMASA to evolve stronger collaboration with Ships owners

Published

on

…Stresses the need for timely disbursement of N44.6billion CVFF***

Highly revered Nigerian Maritime Lawyer, and Senior Advocate of Nigeria (SAN), Mike Igbokwe has urged the Nigeria Maritime Administration and safety Agency (NIMASA) to partner with ship owners and relevant association in the industry to evolving a more vibrant merchant shipping and cabotage trade regime.

Igbokwe gave the counsel during his paper presentation at the just concluded two-day stakeholders’ meeting on Cabotage waiver restrictions, organized by NIMASA.

“NIMASA and shipowners should develop merchant shipping including cabotage trade. A good start is to partner with the relevant associations in this field, such as the Nigeria Indigenous Shipowners Association (NISA), Shipowners Association of Nigeria (SOAN), Oil Trade Group & Maritime Trade Group of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

“A cursory look at their vision, mission and objectives, show that they are willing to improve the maritime sector, not just for their members but for stakeholders in the maritime economy and the country”.

Adding that it is of utmost importance for NIMASA to have a through briefing and regular consultation with ships owners, in other to have insight on the challenges facing the ship owners.

“It is of utmost importance for NIMASA to have a thorough briefing and regular consultations with shipowners, to receive insight on the challenges they face, and how the Agency can assist in solving them and encouraging them to invest and participate in the maritime sector, for its development. 

“NIMASA should see them as partners in progress because, if they do not invest in buying ships and registering them in Nigeria, there would be no Nigerian-owned ships in its Register and NIMASA would be unable to discharge its main objective.

The Maritime lawyer also urged NIMASA  to disburse the Cabotage Vessel Financing Fund (CVFF)that currently stands at about N44.6 billion.

“Lest it be forgotten, what is on the lips of almost every shipowner, is the need to disburse the Cabotage Vessel Financing Fund (the CVFF’), which was established by the Coastal and Inland Shipping Act, 2003. It was established to promote the development of indigenous ship acquisition capacity, by providing financial assistance to Nigerian citizens and shipping companies wholly owned by Nigerian operating in the domestic coastal shipping, to purchase and maintain vessels and build shipping capacity. 

“Research shows that this fund has grown to about N44.6billion; and that due to its non-disbursement, financial institutions have repossessed some vessels, resulting in a 43% reduction of the number of operational indigenous shipping companies in Nigeria, in the past few years. 

“Without beating around the bush, to promote indigenous maritime development, prompt action must be taken by NIMASA to commence the disbursement of this Fund to qualified shipowners pursuant to the extant Cabotage Vessel Financing Fund (“CVFF”) Regulations.

Mike Igbokwe (SAN)

“Indeed, as part of its statutory functions, NIMASA is to enforce and administer the provisions of the Cabotage Act 2003 and develop and implement policies and programmes which will facilitate the growth of local capacity in ownership, manning and construction of ships and other maritime infrastructure. Disbursing the CVFF is one of the ways NIMASA can fulfill this mandate.

“To assist in this task, there must be collaboration between NIMASA, financial institutions, the Minister of Transportation, as contained in the CVFF Regulations that are yet to be implemented”, the legal guru highlighted further. 

He urged the agency to create the right environment for its stakeholders to build on and engender the needed capacities to fill the gaps; and ensure that steps are being taken to solve the challenges being faced by stakeholders.

“Lastly, which is the main reason why we are all here, cessation of ministerial waivers on some cabotage requirements, which I believe is worth applause in favour of NIMASA. 

“This is because it appears that the readiness to obtain/grant waivers had made some of the vessels and their owners engaged in cabotage trade, to become complacent and indifferent in quickly ensuring that they updated their capacities, so as not to require the waivers. 

“The cessation of waivers is a way of forcing the relevant stakeholders of the maritime sector, to find workable solutions within, for maritime development and fill the gaps in the local capacities in 100% Nigerian crewing, ship ownership, and ship building, that had necessitated the existence of the waivers since about 15 years ago, when the Cabotage Act came into being. 

“However, NIMASA must ensure that the right environment is provided for its stakeholders to build and possess the needed capacities to fill the gaps; and ensure that steps are being taken to solve the challenges being faced by stakeholders. Or better still, that they are solved within the next 5 years of its intention to stop granting waivers”, he further explained. 

Continue Reading

Archives

Breaking News: The Funeral Rites of Matriarch C. Ogbeifun is Live

Published

on

The Burial Ceremony of Engr. Greg Ogbeifun’s mother is live. Watch on the website: www.maritimefirstnewspaper.com and on Youtube: Maritimefirst Newspaper.

Continue Reading

Archives

Wind Farm Vessel Collision Leaves 15 Injured

Published

on

…As Valles Steamship Orders 112,000 dwt Tanker from South Korea***

A wind farm supply vessel and a cargo ship collided in the Baltic Sea on Tuesday leaving 15 injured.

The Cyprus-flagged 80-meter general cargo ship Raba collided with Denmark-flagged 31-meter wind farm supply vessel World Bora near Rügen Island, about three nautical miles off the coast of Hamburg. 

Many of those injured were service engineers on the wind farm vessel, and 10 were seriously hurt. 

They were headed to Iberdrola’s 350MW Wikinger wind farm. Nine of the people on board the World Bora were employees of Siemens Gamesa, two were employees of Iberdrola and four were crew.

The cause of the incident is not yet known, and no pollution has been reported.

After the collision, the two ships were able to proceed to Rügen under their own power, and the injured were then taken to hospital. 

Lifeboat crews from the German Maritime Search and Rescue Service tended to them prior to their transport to hospital via ambulance and helicopter.

“Iberdrola wishes to thank the rescue services for their diligence and professionalism,” the company said in a statement.

In the meantime, the Hong Kong-based shipowner Valles Steamship has ordered a new 112,000 dwt crude oil tanker from South Korea’s Sumitomo Heavy Industries Marine & Engineering.

Sumitomo is to deliver the Aframax to Valles Steamship by the end of 2020, according to data provided by Asiasis.

The newbuild Aframax will join seven other Aframaxes in Valles Steamship’s fleet. Other ships operated by the company include Panamax bulkers and medium and long range product tankers.

The company’s most-recently delivered unit is the 114,426 dwt Aframax tanker Seagalaxy. The naming and delivery of the tanker took place in February 2019, at Namura Shipbuilding’s yard in Japan.

Maritime Executive with additional report from World Maritime News

Continue Reading

Editor’s Pick

Politics