Page 91: of Maritime Reporter Magazine (November 2011)

November 2011www.marinelink.com 91Containerships?Top 3? Driving Rates into the Seabed by Greg Knowler, Hong Kong, Posted October 26, 2011Looking at the container shippingrates, it seems that for a carrier to even achieve zero rate would be an improve- ment. The bunker adjustment factors being charged are more than the rate per TEU, which means the lines are paying shippers to transport their cargo. That?s very generous of carriers that are known more for extracting blood from stones than for their philanthropy. The bargain basement rates, of course, are not an early Christmas pres-ent to shippers. They are the result of a price war being waged by the top three carriers, Maersk Line, MSC and CMACGM. Even OOCL financial boss Ken Cambie criticized the practice in HongKong last week during an operational update. He told reporters that the threebig carrier?s chase for market share was impacting freight rates.With demand way down, the only way for rates to improve is if capacity is withdrawn from the Asia-Europe trade. But instead of taking ships out, the topthree carriers are leaving capacity in service or adding new vessels to the trade. The shipping companies are so large that they can withstand the losses being accumulated in the bloody pricewar that some have suggested is a way to force smaller lines out of business. That may be the big three?s strategy, but you have to wonder who will blink first. It was the headlong and mindless rush for market share that saw the lines pushed to the brink in 2009, and herewe go again. You also have to wonder whether the market would be better served by a di- verse collection of carriers rather than being concentrated in the hands of asmall number of lines. The bigger the carrier, the less the flexibility and the more impersonal the service.But ultimately, cost and reliability are the two factors that matter to shippers. If a carrier doesn?t charge too much and the goods are delivered intact and on time, it doesn?t matter whether the ship- ping line has 10 ships or 1,000.That reliability is what the DailyMaersk service that started officially on Monday is offering, but with so much space and low rates available there is plenty of choice available to shippers. Subscribe to the Maritime Industry?s Most Exciting PrintPublication Launchsince 1939!The largest maritime professional group on the internet with more than 19,000 members has its very own print maga-zine, Maritime Professional. Published Quarterly and led by seasonedMaritime Editor Joseph Keefe, MaritimeProfessional delivers four hard-hitting, tightly focused editions in 2012, includ-ing editions covering: Q1Training & Maritime Security  Q2Maritime Risk Q3Classification Societies, Quality & Design Q4Environmental Stewardship & ComplianceDon?t miss a single copy. To subscribe, simply visitwww.MaritimeProfessional.com and clickthe magazines on the righthand side.MaritimeProfessional Maritime RiskARCTIC OPS TO SHIP VETTINGTOPIRACY ... 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Part of a fleet of work boats servicing this wet-footedgenerating station located in the watersof the outer River Thames estuary willbe from Brightlingsea based builder CTruk Boats who recently announced the delivery of the first of three multi- purpose catamaran work boats con-tracted by windfarm project leaders Siemens. This first boat, CWind Alliance was delivered last week to skipper/owner Andy Harman in homeport Ramsgate and features an innova- tive ?flexible pod? construction, an entryshortlisted in the Sea Work 2011 ?Inno- vation Showcase? international competi-tion.? Ben Simpson, Managing Director of CTruk Boats explains the modular flexible pod concept: ?Our design teamknew there was scope to improve the types of work boats supporting the growing wind farm industry whilst keep- ing the safety aspect of offshore work at the forefront of the design.? The mod- ular, flexible pod build enables opera- tors themselves to change the vessel?s layout within a few hours to suit thework of the day. What is going on in theAsia-Europe trade? Freight rates have fallen to ?sell the ships and let?s justgo home? levelsNot Smooth Sailing for SCISCI's losses compel it to cut down on its acquisition program By Joseph Fonseca, Mumbai,Posted October 19, 2011Two weeks after its Golden Jubilee celebrations of October 1, 2011 inMumbai, the state-owned Shipping Corporation of India Ltd. (SCI) ac-cepted delivery of a 80 T BP Anchor Handling, Towing & Supply vessel ?m.v. SCI Ratna.? But the glitter of the anniversary celebrations nor its present on-going acquisitions in any way indicate that it is all that hunky dory for SCI in its 50th year, after its scintillating growth trajectory it dis- played in the past few years despite the global economic downturn. In fact SCI has cancelled plans tobuy three new containerships. Be- sides the company has reported losses in the past two quarters. This has sent signals that India?s biggest ocean carrier is treading cautiously in its expansion plans as the globaloversupply of ships, low freight rates and rising costs hit margins of fleet owners. SCI had signed contracts for acqui-sition of four new-buildings 80 T BP Anchor Handling, Towing & Supply vessels with Bharati Shipyard Lim- ited, India. The first vessel, ?m.v. SCI Panna? was delivered to SCI on 23rd August, 2011 and the remaining two vessels are scheduled for delivery by the end of 2011.The new acquisition has a gross ton- nage of 2,039 tonnes and deadweightof 1,983 tonnes. The vessel which is classed with the Indian Register of Shipping is equipped with DP I sys-tem and has been built to comply with the latest and most stringent interna- tional regulations. In the offshore sector, SCI presently has a fleet of 12 vessels of which 10 vessels were acquired during the eighties. These vessels have been ded- icatedly serving the oil exploration and production sector in India for thelast 25 years. The four AHTSVs or- dered with Bharati Shipyard are 1st phase replacement of SCI?s 10 AHTSVs & comply with superiorspecifications like Dynamic Position- ing, Reverse Osmosis Plant and UKOOA compliance as required by Indian E&P operators, etc. As a National carrier, SCI has been aiming to increase its presence inIndia?s offshore sector. To promote In- dian Shipbuilding industry, SCI has ordered four AHTSVs of 120 BP ca- pacity and two PSVs with Cochin Shipyard on nomination basis. MR Nov.11 # 12 (89-97):MR Template 11/7/2011 10:33 AM Page 91