• 2024 May 22 13:59

    HD KSOE, SHI faces 1trn won contract delays

    HD Korea Shipbuilding & Offshore Engineering (HD KSOE) and Samsung Heavy Industries (SHI) are allegedly facing a three- to four-year delay on contracts for 14 LNG carriers worth around 3 trillion won (about $2.25 billion) that they signed four years ago, according to The Chosun Daily. This delay was caused by the circumstances surrounding the shipowners. The shipbuilders have already secured orders for the next 3-4 years, and their yards are fully occupied, so the recently rescheduled contracts have allowed them some breathing room in their building timelines. Furthermore, because new ship costs have almost reached record highs, they will find it easy to get new contracts at greater prices.

    On May. 17, SHI revealed that the contract for eight LNG carriers (about 1.6267 trillion won, $1.19 billion), purchased by shipowners in Oceania and Africa had been postponed owing to the shipowners’ circumstances. Similarly, on May. 14, HD Korea Shipbuilding & Offshore Engineering said that the final contract for six LNG carriers (about 1.2097 trillion won, $887 million), secured by its subsidiary HD Hyundai Samho Heavy Industries (HD HSHI), had been postponed. The final contract dates, which were originally scheduled between this month and early next year, have been moved back to 2028-2029, almost three to four years later.

    Although the two shipbuilders did not reveal the clients, the industry assumes the LNGCs are for the “Mozambique LNG Project,” which were awarded in 2020. This project, spearheaded by France’s TotalEnergies, is being delayed owing to the rising influence of local insurgents and the accompanying insecurity in Mozambique.

    Despite the delay in trillions of winning contracts, the impact on the two corporations is beneficial. It is stated that they got a portion of the contract money in advance, making contract termination improbable. Even if the contracts were terminated, it would be easy to acquire new orders. The industry believes that “many shipowners are currently seeking quick deliveries of LNGCs or containerships, making it easy to secure new contracts.” Furthermore, if the contracts are resigned, the corporations might demand greater ship prices.”

    On May 3, HD Korea Shipbuilding & Offshore Engineering received an order for two LNGCs for roughly 733.4 billion won (about $537.25), with each ship costing over 270 million dollars, the biggest in history.

    The record-high ship prices benefit the shipbuilding sector. Clarksons Research’s “Newbuilding Price Index,” a major profitability indicator for the shipbuilding and shipping sectors, rose to 183.9 points in April, over 96% of its all-time high (191.6 points) set in September 2008. Maintaining high newbuilding pricing enables local shipbuilders to avoid low-cost competition from Chinese businesses while selectively accepting profitable projects.

    Meanwhile, rising demand for containerships and LNG carriers is boosting the worldwide shipbuilding sector. Contrary to forecasts, shipping rates have risen, exceeding 2,500 points on May. 16. for the first time in 20 months, owing to the Red Sea impact. This has resulted in increasing demand for new containership orders.

    In mid-May, prominent shipping corporations like France’s CMA CGM and China’s COSCO would purchase containerships for 7.5 billion dollars (about 10.226 trillion won). Some shipping companies are apparently contacting shipyards about the potential of obtaining containerships earlier than normal.

2024 June 15

14:15 VARD hosts a christening ceremony for third VARD 8 02 design stern trawler
12:03 TECO 2030, BLOM Maritime and Samskip receive ENOVA grant to retrofit Samskip LNG Vessel with fuel cells and hydrogen fuel
10:06 The 3rd of 12 plug-in hybrid vessel joins Swedish shortsea operator's fleet
09:51 S&P Global: Guangdong province's market-based power subsidy supports gas demand growth

2024 June 14

18:09 Strategic R&D alliance formed to standardize materials for LH2 carriers
17:44 BSEE conducts first offshore wind turbine inspection
17:23 Aker Artic completes ice-going SOV concept for offshore wind farms
17:19 Orsted completes construction of combined wind and solar project in Texas
16:57 MPA: Oil spill clean-up in progress at Pasir Panjang Terminal
15:37 ADNOC awards $5.5 billion of contracts for Ruwais LNG plant
15:11 Allseas awarded Troll extension pipeline
14:26 Havila Shipping inks deals for its three PSVs with Equinor
14:03 LR partners with COFCO International on fleet emissions reduction programme
13:18 Bulk carriers second-hand market overperforms
12:53 CMA CGM announces PSS from Spain (Med) to West Coast South America, Central America & the Caribbean
12:00 QatarEnergy enters 10-year naphtha supply agreement with India's HPL
11:46 ABS releases new notation that enables vessel operators to carry an additional tier of containers
11:33 Holland Shipyards announces successful convertion of an inland vessel into dredger
11:17 DNV joins technical cooperation programme for medical devices (TCP III)
10:42 TES and “K” LINE partner for sustainable maritime shipping solutions
10:11 CMA CGM announces Peak Season Surcharge for Middle East Gulf & Pakistan-West Africa trade
09:48 MOL and INDU establish JV with for self-operated warehouses in JAFZA Dubai

2024 June 13

18:07 Jan De Nul and partners start AquaForest project for construction of mangrove island in Ecuador
17:31 UECC: Biofuels boost puts the leading European shortsea carrier on course to beat emissions reduction target
17:23 MacGregor secures crane order for MMA Offshore
16:40 KR grants approval to HD HHI’s next generation K-Ammonia Storage & Powered PCTC
16:13 Damen Shipyards signs contract with UK’s Portland Harbour Authority at Seawork 2024 for the supply of one of its latest tugs
15:52 First 800m3/h multifunctional amphibious dredger successfully completed
15:07 French engineering firm Doris contracted by Mexican operator on its $4.5 billion oil project
14:51 Damen unveils fully electric FCS 3210
14:38 KR, Hanwha Ocean, Amogy and HanwhaAerospace team up for application of ammonia reformers and ammonia fuel cellsystems to ships
13:44 Seabourn's expedition ship Seabourn Pursuit sails into Australia for the first time
13:26 BIMCO: Newbuilding prices climb 3% to highest level in 16 years
12:31 MABUX: Bunker Outlook, Week 24, 2024
12:23 KR grants AiP for 150K ULAC and signs MoU with SHI for development of ammonia-fueled container ships
10:49 DNV leads global joint industry project to set standards for crucial CO2 flow meter traceability and accuracy in CCUS
10:18 Avantis and T.J. Giavridis join forces to enhance support for Greek shipowners
09:36 Berg secures Louis Dreyfus Armateurs propulsion package for wind-assisted Airbus Ro-Ro vessels

2024 June 12

16:47 Solstad bags multiple contract awards in Brazil
13:18 Panama Canal announces new increase in draft and daily transit
11:37 Port of Salalah expansion on track to further reduce port stay by year end
11:06 DP World wins four finance and sustainability awards
09:53 Record number of cruise ships call at Port of Southampton in May

2024 June 11

18:17 WSC releases containers lost at sea report
17:41 SLSMC Board of Directors names new President and CEO
17:24 Hanwha Ocean launches Korea’s first large offshore wind turbine installation vessel
17:16 Kalmar continues to drive decarbonisation of cargo handling with new electric empty container handler
16:34 Bollinger Shipyards hosts christening ceremony for USNS Cherokee Nation (T-ATS 7)
16:15 Kongsberg Maritime expands JCS to its S4-series stainless steel waterjets
16:11 Cargotec' Hiab launches mobile app MyHiab for operators
15:44 VARD launches a 171-meter cable layer for Prysmian
15:19 Ulstain Verft completes successful sea trial of the first CSOV for Olympic
14:23 Danelec achieves DNV Cyber Security Type Approval for DM100 VDR platform
13:19 Baltimore Port key channel is fully operational
12:19 Two major US seaports receive $112 million for maintenance and repair projects
11:41 German line TUI Cruises adds newbuild Mein Schiff 7 to its fleet
10:28 DEME gears up for Grand-Lahou job in Ivory Coast
09:48 CSDC' ammonia-fueled MR chemical tanker design obtained BV's AiP

2024 June 10

18:19 Qatar Shipyard receives remote survey approval from ABS
17:42 JDN joins forces with Fortescue to lay sub-sea cables and deliver green electrons from North Africa to Europe
17:39 Strategic Marine inks contract with Ventus Marine for four 27m CTVs for Asia and Europe
17:19 DP World’s SeaRates and CP World accelerate growth of small cargo owners as demand rises for LCL shipments
16:17 New Zealand to introduce bill to reverse oil and gas exploration ban
15:44 BIMCO: Charter owners' share of fleet drops to 40%, lowest since 2002
15:31 Singapore sees strong growth in container volumes in Jan-May 2024
14:18 Cargo Integrity Group highlights cargoes that can compromise supply chain safety
13:42 Glocal Green and Norwegian Hydrogen join forces for green hydrogen in conjunction with bio-methanol production
13:12 CMA CGM to enhance its NWUK & SCUK services
13:07 Vessev unveils world’s first premium tourism electric hydrofoiling vessel - the VS–9
12:43 MV Sheila Ann crew assists stranded sailboat in rough seas