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15/07/2014

Captain Phillips strikes back: Off Horn of Africa, pirates go bye-bye
Posted on July 15, 2014 by admin
Three years ago, Isse Yuluh’s pirate gang hijacked a yacht being sailed around the world by a Danish family with three teens. The Danes were eventually freed for a ransom of $3 million.

Mr. Yuluh went to sea again. This time he returned to his beachfront base in northern Somalia with a Liberian-flagged oil tanker and an Emirati chemicals carrier, and their 48 crew members, in tow. After 10 months of negotiations and a handover of $12 million, all were released.

But despite being one of Somalia’s most feared and wealthiest gang leaders, Yuluh announced in May that he had “renounced piracy” and would tell his “fellow comrades to leave this dirty business, too.”

Recommended: How much do you know about pirates? Take our quiz
Yuluh is not the first and not the only pirate to quit. Mohamed Abdi Hassan, another notorious pirate nicknamed Afweyne, or “Big Mouth,” said earlier he was getting out of the game.

Things are changing in East Africa’s high-profile pirate business: A combination of greater force at sea and swifter justice on land means the bottom has fallen out of the kind of Somali piracy vividly depicted in “Captain Phillips,” the 2013 film about the hijacking of the Maersk Alabama.

In 2011 at the height of piracy, 237 attacks took place in the zone of the Horn of Africa, theRed Sea, and the northwest Indian Ocean. So far in 2014, there have been seven attacks, all of which failed, according to the International Maritime Bureau.

The number of pirate hostages has also dropped, from 1,206 in 2011 to 38 today.

In June, 11 sailors from Bangladesh, Sri Lanka, Iran, and India were freed after nearly four years, with little or no ransom paid.

“With a few very small exceptions, we’ve had two years now without any successful piracy attacks,” says Alan Cole, regional coordinator of the maritime crime program for the United Nations Office on Drugs and Crime(UNODC).

“What’s happened is that the odds of success for the pirates have dropped, and it’s become an increasingly hazardous business to be in,” Mr. Cole adds. “The chance of getting killed or captured is pretty high now, and watching so many men disappear off over the horizon and not coming back does suppress interest in this as a career path.”

To be sure, security analysts caution that the shipping industry has taken these favorable outcomes as a reason to reduce expensive antipiracy measures. For their part, the pirates say they are simply waiting for international vigilance to slacken, at which point they will come roaring back.

The Maersk Alabama

When a skiff carrying a handful of menacing armed men swung alongside the Maersk Alabama in 2009, piracy was the best job going for a young Somali.

That hijacking, in part because of the movie that followed, is the highest-profile such attack that is familiar to Americans. But it was only one of hundreds.

Somali pirate methods have been straightforward for much of the past decade: Gangs that gathered on land and shore were financed by faceless kingpins, mostly in Kenya or the United Arab Emirates. The gangs put to sea in “mother ships” stocked with many weeks’ worth of food, water, fuel, and weapons, towing litters of smaller skiffs behind them.

Once a potential target was sighted, often hundreds of miles from Somalia’s shores, the skiffs were launched and would speed to the slow-moving prize ahead. Until recently, most commercial ships were undefended and pirates could easily board them.

Then, the captured ships would be sailed to Somali waters to be followed by the first calls for ransom to owners or family. Everything captured was monetized – crew, cargo, and vessels. Hostages were mostly well treated and released without harm when an agreed-upon ransom was paid.

Typically, the pirate gang then lived large on land for a week or two off their spoils, then put to sea again. The pickings were rich. Dozens of large container vessels, cargo ships, and oil tankers representing a chunk of global trade pass each day through the Red Sea via the Suez Canal on journeys to and from Asia and Europe.

Firhan Ali, a pirate who now finds himself unemployed, can testify from personal experience that these were “the good days.”

He went to sea a dozen times, and was involved in five successful hijackings, including that of a Greek oil tanker he refuses to name. The Monitor talked with him by phone from the Somali town of Galkayo.

Today, Mr. Ali and his former comrades-in-arms say things are very different. “Life is pretty bad now,” Ali says. “What used to be my daily income is now my monthly income. It’s all about struggle to make ends meet. During the heydays, none of us expected such an inferior life could come back.”

What has changed: The world has fought back. Three coordinated international naval forces run antipiracy patrols off Somalia.

One is the US-led Combined Task Force 151, with navies from six nations. The second, Operation Atalanta of the European Union Naval Force, has a special mandate to protect aid shipments to Somalia. The third flotilla is NATO’s Operation Ocean Shield.

Across the three deployments, dozens of warships from more than 40 countries have been involved. Patrols can include vessels from otherwise antagonistic nations: South Korea and North Korea have taken part, as have Ukraine and Russia. At any one time, an average of 20 warships are at sea.

Changes have occurred on land, too. Most important, justice systems in Indian Ocean countries including Kenya and the Seychelles have been boosted so their courts can process suspected pirates and their prisons can host them while they serve their sentences.

In Somalia, the UNODC has coordinated international efforts to refurbish dilapidated prisons in the northern city of Hargeisa, capital of semiautonomous Somaliland, and in neighboring Puntland.

Today, 1,350 people convicted of connections to piracy off Somalia are in jail in 21 countries, according to the UNODC.

Warning shots

Yet by far the most successful tactic contributing to the drop in successful attacks has been sending commercial ships out to sea past Somalia with armed private security on board. [See related interview here.]

Teams of three or four guards – usually former British, American, South African, or Russian military – join vessels for the few days that they will be in what is known as the “high-risk zone” off the Horn of Africa.

For most, the passage is routine. But if a suspicious skiff approaches, under new “best practices” that most firms follow, they have a series of protocols designed to thwart a hijacking. Some are simple. Captains increase speed, trying to accelerate away or churn up a wake that is tough for a small speedboat to navigate. Decks are festooned with razor wire or electric fences to deter boarding. Powerful sonic devices have been used to repel pirates with directed, unbearable noise.

If a skiff continues to advance, security guards first show their weapons, then fire warning shots, or as a very last resort, use lethal force.

“It’s just not worth their bother coming after a vessel with armed security, if they can peel away and go and find someone else without,” says Conrad Thorpe, chief executive officer of Salama Fikira, a Kenya-based maritime security company.

Ali, the jobless pirate, confirms that the combined effect of prosecutions, navies, and security is keeping him ashore. He has returned to his former job as a security guard in Galkayo.

“Because of frequent arrests of some of our top-notch guys, which disabled our coordination, hijackings have stopped,” he says. “Every attempt ended up losing men and money. In the end, it looked like we were flogging a dying horse, and that discouraged everybody. Even our investors have lost hope. Enemy warships are watching every corner of the sea, and many of our heroes are still in jails.”

Chillingly, though, Ali says he and his friends are not finished. “We are still eyeing the waters,” he says. “Chances will come. I’m very much in no doubt those good days will come back. It’s very hard for now, but after some coordination, we shall return, and we will be stronger.”

These are not fanciful boasts. Pottengal Mukundan, the International Maritime Bureau director, says the fact that there were still occasional attempted hijackings showed that “the threat of Somali piracy is still clearly evident.”

“There can therefore be no room for complacency as it will take only one successful Somali hijacking for the business model to return,” he says.

Signs are emerging that firms may be letting down their guard. Already, shipping firms are advising their captains to slow down through the high-risk zone, and to lop miles off their route by cutting closer to Somalia’s shores. Both will save money, and boost profits.

Mr. Cole of the UNODC agrees that no one can relax yet. He reckons that the essential preconditions to running a piracy business are many ships passing; people willing to pay ransoms; young men and money for boats, guns, and fuel; and a place where the police leave one alone, which is still the case despite huge efforts to reform Somalia’s security sector.

“All of that still exists in Somalia. It’s just that the odds have been stacked against [the pirates] at sea where they now have a good chance of being killed or captured,” Cole says.

“But if those odds change back again because private security backs out, or the navies back out, I can’t think of any reason why they would not come back again.”

Source: The Christian Science Monitor

12/07/2014

Loading pipes Mumbai to Hamriyah

12/07/2014

Active in shipping business especially chartering for any kind and size dry, bulk and projects cargo

12/07/2014

We fixed and loaded iron ore from Lampung, Indonesia to Dar Es Salaam, Tanzania.
Berthing time : 16-09-2013. General agent : PT Inhua Maritime, Local agent : PT Samudera Indonesia Panjang branch

12/07/2014

PT Lautan Niaga Indonesia fixed and loaded iron ore from Muara Asam - Asam to Dar Es Salaam Tanzania by MV Princess K. Loading started 23-10-2013. General Agent : PT INHUA MARITIME, Local Agent : PT INDO DHARMA TRANSPORT

11/07/2014

Our company, Indo Ocean Transport Service ( www.indo-ocean.com ) base in Indonesia active in shipping business especially chartering for any kind and size dry, bulk and projects cargo and ship ( small ships, handy size, handymax, supramax, panamax, babycape, and capesize ) . We handle any export, import, international trading, domestic shipment and also logistics. We provide ocean transportation to mining goods suppliers, agricultural goods suppliers, factories, traders and buyers or consignee.

Active in shipping business especially chartering for any kind and size dry, bulk and projects cargo

11/07/2014

Dry Bulk Shippers – Performance Leaves Much To Be Desired For Investors
Posted on July 11, 2014 by admin
The Guggenheim Shipping ETF (SEA), an index weighted with dry bulk shipping companies, has risen 3.98% year-to-date – a positive sign for investors, especially since the Baltic Dry Index (BDIY) has fallen 21.34% year-to-date.

The Baltic Dry Index tracks the average daily prices of shipping major raw materials by sea. Since demand for raw materials like iron ore, grain and coal is the major demand driver for dry bulk shippers, the Baltic Dry Index is considered an indicator of demand and performance for the dry bulk shipping industry.

Market players

The two major market players in the dry bulk shipping industry are DryShips Inc (DRYS), which has a market share of 35%, and Navios Maritime Holdings Inc. (NM), which has a market share of 20%. The remaining companies constitute the remaining 45% of the market.

DryShips Inc (DRYS) has performed relatively poorly as compared to the benchmark index, with a year-to-date return of -35.32%. It posted a per share loss of $0.04 for the first quarter of fiscal 2014, missing the consensus forecast by $0.02 a share. It has missed analyst estimates and posted lower EPS during the last three quarters, which is a negative indicator. The results for the latest quarter have not been released yet, but analysts expect another loss of $0.05 per share.

Navios Maritime Holdings Inc.’s (NM) year-to-date return is -18.19% – better than DryShips Inc’s (DRYS), but lagging the benchmark index. The company posted earnings per share of $0.01 for its most recently-concluded quarter, compared to the consensus estimate of -$0.13. The reason given for the earnings surprise was that the company had been able to achieve significant economies of scale due to self-management of vessels. The results were also exceptional because the company had missed consensus forecasts for the previous three periods. Analysts expect EPS of -$0.13 for the company’s second quarter of FY14.

Given this data, Navios Maritime Holdings Inc. (NM) seems like better value for investors as compared to DryShips Inc. (DRYS). Analysts also believe that freight charges will increase in the upcoming quarter due to an increase in the export of raw materials like grain and iron ore due to the seasonality effect, which will have a positive impact on these companies’ earnings.

Source: Business ETC

11/07/2014

US oil product exports could benefit long-haul tanker trade

Thursday, 10/07/2014

With the US providing approval of exports of oil condensate, the product tanker freight market has been given some positive news. According to the latest report from shipbroker, “the massive growth in US crude oil production in recent years coupled with the decades’ long ban on crude oil exports has offered strong support to the US domestic refining industry. As a result, this has led to a vast expansion in US product exports, providing more trade opportunities for product tankers in the Atlantic Basin. However, at the same time, increasing US oil output has had a detrimental effect on crude tanker demand, with a significant decline in import requirements”.

According to the London-based shipbroker, “the ongoing political debate surrounding the crude oil export ban is followed closely by different industry stakeholders due to its potential implications on tanker trade. If export restrictions are lifted, this once again can reshape the tanker market (although the chances are slim that the US policy makers will make such a major decision anytime soon). Undoubtedly, it would OFFER strong support to crude tanker trade, but it is also likely to have a negative impact on US product exports”.

Gibson added that “the latest ruling by the US government to allow condensate exports subject to specific “processing” conditions is indeed a very interesting development. Two companies – Pioneer Natural Resources and Enterprise Products Partners have been granted permission to export condensates, which have gone through the minimal level of processing call stabilization – a process that involves stripping out volatile hydrocarbons to ensure safe transportation in pipelines. It is expected that other US companies will APPLY for similar permits. Some industry experts estimate current US condensate output at around 1.2 million b/d, with production rising to 1.8 million b/d by 2018. If the price is right, US condensate could head to the Asia Pacific, where demand is strong and this will support long haul tanker movements. Also, some condensate could be shipped to Latin America to be used as substitute for naphtha to lighten heavy crude. However, exports could be restricted by infrastructure limitations in terms of pipeline connections and port capacities. In addition, according to RBN Energy, large volumes of condensate are produced alongside crude from the same well and thus it is unclear how straightforward it will be to separate the two”.

Concluding its analysis, shipbroker said that “clearly, the latest development is not a game changer in terms of US policy regarding the crude oil ban, but it certainly opens the door to overseas shipments of growing condensate production. Yet, although the potential is quite significant, it remains to be seen how much can actually be exported”.

Meanwhile, in a similarly themed note, P & P said late last week that “the main subject in much of the tanker market delegates has been the latest turn in the US policy with regards to oil exports. According to many pundits “the Obama administration cleared the way for the first exports of unrefined American oil in nearly four decades, allowing energy companies to start chipping away at the longtime ban on selling U.S. oil abroad.”

P& P noted in a recent analysis that “the express permission via a Private Letter Ruling by the Department of Commerce Bureau of Industry and Security (BIS) that grants two companies, Pioneer Natural Resources Co. and Enterprise Products Partners LP, the ability to export stabilized condensate does raise some existential questions. The grey area results from the apparent catchall definition of condensate. Condensate is a petroleum liquid defined by an API gravity range (50-55°, UP TO that of NGLs) that is generally painted in two broad strokes: plant condensate or lease condensate. The BIS defines lease condensate as crude oil, and as such, it is subject to export restrictions. Lease condensates are often stabilized at the extraction site in order to remove some of light ends. Plant condensate, on the other hand, is separated from natural gas when it is removed at a gas processing plant. In a nutshell, the WSJ article and BIS permits raise questions and highlight the debate as to what constitutes processing, or refining, or manufacturing, which would make these hydrocarbon streams to be eligible for export”, P & P noted.

It added that “for shipowners, this throws one more wrench in a slowly turning policy wheel. While an actual reversal in the export ban is very unlikely before the mid-term elections in November, these developments should be taken seriously. The public reaction, seemingly muted at the moment, may suggest that crude oil exports are more palatable than was historically assumed. Regardless, the highly politicized nature of the petroleum markets in America make long-term betting on structural trade flows, and the SHIPPING sectors that support them, risky business”, P & P concluded.

11/07/2014

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