A.P. Moller – Maersk Delivers Increase By 17% In Earnings In Q2

As compared to the same quarter in last year, this year Maersk delivers a 17% increase in earnings before interest, tax, depreciation and amortization (EBITDA) to USD 1.4 bn in Q2. There is a slight growth in revenue to USD 9.6bn, which is on par with last year, and the underlying profit increased to USD 134m from USD 15m in Q2 2018.

“Q2 was a quarter of solid progress. EBITDA was up 17% and cash flow improved 86% year on year, driven by continued recovery in Ocean,” says Søren Skou, CEO of A.P. Moller – Maersk.

On the back of the increases in volume and freight rates, Ocean EBITDA in Q2 increased 25% to USD 1.1bn. The Ocean business continued to recover with enhanced unit cost, utilization and reliability and there is growth in revenue of 2.9% to USD 7.2bn as compared to Q2 2018.

Revenue in Terminals & Towage grew 13% to USD 957m compared to Q2 last year. In gateway terminals, volume in Q2 grew by 8.5% as compared to last year, leading to higher utilization. EBITDA increased by 11%, which is partly offset by one-off items.

In Logistics & Services EBITDA grew to USD 61m in Q2 as compared to USD 52m in the same quarter last year. Revenue was at USD 1.5bn, which is positively impacted by increased revenue in supply chain management, but offset by declining revenue from sea and air freight forwarding.

A.P. Moller – Maersk distributed USD 615m in cash to shareholders through an ordinary dividend of USD 469m in Q2 and USD 146m related to the first phase of the share buy-back programme announced in May 2019 of DKK 10bn (around USD 1.5bn) over a period of up to 15 months.

Progressing well on transformation
A. P. Moller – Maersk formed one sales organisation during the first half of 2019. Now its focus is on giving customers an integrated experience and offering them even more products, thus improving the financial results across the business and accelerating the transformation.

“The transformation progressed further with an improved cash return on invested capital of 6.9% and synergies of USD 1bn realised earlier than expected. Growth in revenue and gross profit in Logistics & Services still need to improve as we continue to build capabilities within logistics and services,” Skou elaborates.

The digital innovation’s latest example to improve customer experience is Maersk Spot, which simplifies the buying process and offers increased visibility and reliability by enabling customers to search and get competitive rates online, while ensuring cargo gets on board the selected vessel. TradeLens, the blockchain platform developed together with IBM, also progressed with several new commitments from carriers and port authorities during the quarter.

Guidance for 2019
While for the first half year EBITDA improved by USD 500m to USD 2.6bn, A.P. Moller – Maersk reiterates it’s full-year guidance for 2019 of an EBITDA of around USD 5.0bn including effects from IFRS 16.

“We reaffirm our guidance for 2019, while the macro environment continues to be subject to considerable uncertainties,” says Skou.

The guidance continues to be subject to considerable uncertainties due to the weaker macroeconomic conditions and other external factors impacting container freight rates, bunker prices and foreign exchange rates.

Reference: maersk.com

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DHT Holdings Announces It Enters 3-Year Time Charter

It has been announced by DHT Holdings, Inc. (“DHT”) that the Company has entered into a three-year time charter with a leading refining company for one of its 2012 built VLCCs that is set to commence post scrubber retrofitting in the fourth quarter this year.

A base rate of $30,000 per day with all earnings up to $37,500 has been set by the time charter by DHT following a profit-sharing structure that includes scrubber economics for earnings in excess to be shared between the customer and DHT.

Reference: dhtankers.com

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Scandlines Signs Agreement With Norsepower To Install Rotor Sail Solution On Board Hybrid Ferry

Ferry operator Scandlines announced that it has signed an agreement with Norsepower Oy Ltd, leading clean technology and engineering company pioneering modern wind propulsion technology, to install Norsepower’s Rotor Sail Solution onboard the M/V Copenhagen, a hybrid passenger ferry.

The M/V Copenhagen belongs to the world’s largest fleet of hybrid ferries operating between Rostock in Germany and Gedser in Denmark, combines diesel and battery power. Since 2013, Scandlines has invested more than EUR 300 million in building and retrofitting ferries from conventional diesel-driven to hybrid ferries. With the addition of Norsepower’s technology, the vessel will further reduce its emissions.

The Norsepower Rotor Sail Solution is a modernised version of the Flettner rotor, which is a spinning cylinder that uses the Magnus effect to harness wind power to thrust a ship.

It is the first data-verified and commercially operational auxiliary wind propulsion technology for the global maritime industry. When wind conditions are favourable, it enables the electric propulsion thrusters and center propel to be throttled back, reducing emissions while providing the power needed to maintain speed and voyage time. As it generates supplementary thrust from wind, the solution is compatible with all other emissions saving technologies.

The route between Gedser to the north and Rostock to the south is almost perpendicular to the prevailing wind from west giving Scandlines favourable conditions for using Rotor Sails on the ferry crossing.

In November 2019, preparations for the retrofit will take place with the installation scheduled for Q2 2020. M/V Copenhagen is set to be retrofitted with one large-sized Norsepower Rotor Sail unit that is 30m in height and 5m in diameter.

“By installing a Rotor Sail, we can reduce CO2 emissions on the Rostock-Gedser route by four to five percent,” says Scandlines CEO Søren Poulsgaard Jensen.

NABU, the German Nature and Biodiversity Conservation Union, is pleased with Scandlines’ decision to further reduce CO2 emission:

“NABU welcomes Scandlines’ various efforts towards sustainable shipping. With rotors besides hybrid drives, the company sets new standards in terms of integrating different technical solutions to mitigate especially climate and air pollution emissions. To reach the Paris climate goals, more corporate responsibility by other shipping companies is needed,” says Malte Siegert, Head of Environmental Policy at NABU.

Commenting on the deal, Tuomas Riski, CEO, Norsepower says: “As a leading clean technology and engineering company, we are proud to be partnering with Scandlines as we work towards a modern era of auxiliary wind propulsion for the global maritime fleet, while supporting shipping’s transition to a low-carbon future.”

Reference: scandlines.com

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Port Of Long Beach Cargo Volumes Decreases In July By 9.7%

Last month Port of Long Beach cargo volumes were down as compared from the previous July, where the number of containers moved through the harbor neared 700,000 twenty-foot equivalent units (TEUs). In the July 2019, the total was 621,780 TEUs, which was 9.7% less as compared to last year. There is a decrease of 9.9% to 313,350 TEUs in imports, and exports shrank 6.8% to 111,654 TEUs. Empties were 11% lower, at 196,777 TEUs.

“The trade war is hitting the West Coast hard,” said Port of Long Beach Executive Director Mario Cordero. “For more than a year, the supply chain has bent under the weight, and there’s very little give left. If the tariffs continue and escalate as planned next month, American consumers could see higher prices during the holiday season as businesses pass along their costs.”

About more than 4.3 million TEUs have moved through the Port’s terminals through July,which is  7.2% fewer than at the same point last year.

Reference: polb.com

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IMB Maritime Crime Reports Armed Robberies And Crimes In Indonesian Waters

The International Maritime Bureau (IMB) worldwide 24-hour Piracy Reporting centre (PRC) reports about the maritime crime that indicates a spike of incidents in Indonesian waters. The reports suggest a recent wave in attempted armed robbery and other attacks although there has been concerted action by marine police and maritime authorities in the South East Asian region to combat piracy and robbery.

Currently, West Africa remains the most dangerous hotspot for pirate attacks, kidnapping and armed robbery.

Recent incidents worldwide reported to the IMB PRC include the following.

• On July 30, six robbers armed with knives boarded a chemical tanker around five nautical miles off Tanjung Priok, Indonesia. They injured the chief engineer. The alarm was raised and the crew mustered, and the robbers escaped empty-handed.
• On July 30, two robbers boarded a bulk carrier anchored at Belawan, Indonesia. The alarm was raised and the crew mustered, and the robbers escaped empty-handed.
• On July 29, three robbers armed with metal sticks boarded a containership berthed at Lagos, Nigeria. They attacked and injured the duty crew member. They stole his personal belongings and escaped.
• On July 29, armed robbers boarded a bulk carrier anchored at Monrovia Roads, Liberia, stole ship’s property and escaped.
• On July 27, four armed robbers boarded a tanker berthed at Lubuk Gaung, Indonesia. The alarm was raised and the robbers escaped.
• On July 26, an unauthorised person with a hose was spotted jumping overboard from a vessel anchored at Lagos, Nigeria. The alarm was raised and the crew mustered, and investigations indicated an attempt to steal cargo. A navy patrol boat searched the surrounding waters.
• On July 25, an unauthorised person was spotted throwing items over the side of a cargo ship anchored at Lotus Port, Pu My Bridge, Vietnam. The alarm was raised and the robber escaped.
• On July 22, four robbers boarded an offshore tug berthed at Batam, Indonesia. The alarm was raised and the crew mustered. Ship’s property was reported stolen. The following day, a suspicious boat with two people, one of them armed, came alongside the tug. The crew raised the alarm and the boat moved away.
• On July 21, seven pirates armed with a pistol and knives boarded a bulk carrier around 16 nautical miles off Pulau Damar, Indonesia. They took the master and second officer hostage, tied up and assaulted them, and stole cash and crew personal belongings before they escaped.

Reference: itfseafarers.org

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Prominent Shipbuilders Austal & Incat Employs MAN Engines For Building Fast Ferry

An order has been placed by Prominent Australian shipbuilders, Austal and Incat Tasmania, with a total of eight MAN 16V28/33D STC engines in connection with the decision of the Government of the Republic of Trinidad & Tobago to build one fast ferry at each yard.

For providing high-speed passenger and vehicle operations on the seabridge between the islands of Trinidad and Tobago each vessel will be powered by 4 × MAN 16V28/33D STC units. Each engine will provide 7280 kW at full speed.

The Austal vessel will be of length 94 metres and designed to carry 926 passengers and 250 cars at speeds of 37.5 knots. The ship will be built in Austal’s new shipyard in Vung Tau, Vietnam.

Incat’s 100-metre wave-piercing catamaran will be a new fast passenger/cargo ferry with the capacity for 1,000 persons and will carry 239 cars or a combination of trucks and cars with a service speed of 39.5 knots. Incat will build the vessel at its shipyard in Tasmania, Australia.

Lex Nijsen, Head of Four-Stroke Marine Sales, MAN Energy Solutions said, “MAN Energy Solutions has long had very good working relations with both Incat and Austal. With these orders, we have further strengthened our position as the leading engine provider for large, high-speed ferries. The MAN 28/33D STC type is the market segment’s most fuel-efficient engine, a vital consideration when a vessel’s fuel bill can easily account for 90% of its operating costs.”

Thomas Huchatz, Sales Manager, MAN Energy Solutions, said: “The 28/33D STC has been selected for seven of the last 14 large high-speed-ferry projects since 2015. This makes it the best-selling engine type in this competitive market segment and shows the confidence that ship operators have in MAN Energy Solutions’ product portfolio and extensive service network.”

It has been further announced by MAN Energy Solutions that its after-sales division, MAN PrimeServ, will open a hub in Trinidad & Tobago to best support the operator.

Reference: mandieselturbo.com

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Port Of Los Angeles Becomes Busiest July With Record Of 912,154 TEUs

The Port of Los Angeles has set a new single-month cargo record for the fourth consecutive month. The Port moved 912,154 Twenty-Foot Equivalent Units (TEUs) in July and became the busiest July in the Port’s 112-year history.

“Container exchange per vessel reached 9,915 TEUs, the highest and most efficient level we’ve ever experienced,” said Port of Los Angeles Executive Director Gene Seroka. “Despite the continued decline in exports and high level of uncertainty driven by trade tensions, we continue to optimize our facilities and are grateful for the support and confidence of our supply chain partners.”

July 2019 imports increased 8.7% to 476,438 TEUs as compared to that in the previous year. There is a decrease in exports of 4% to 161,340 TEUs while empty containers increased 20.7% to 274,376 TEUs. Combined, July overall volumes were 912,154 TEUs. In the port’s history it was the third busiest month and the fourth time the Port eclipsed the 900,000 TEU mark.

In seven months of 2019 overall volumes have increased 6% as compared to 2018, when the Port set an all-time cargo record.

Reference: portoflosangeles.org

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