Jacliz Cargo Alliance LLC

28/09/2016

26/09/2016

Report: Hanjin Shipping Has Enough Cash to Cover Offloading Costs

Cash held by Hanjin Shipping, coupled with commitments from the company’s leading shareholder, the leading creditor, and the parent group’s CEO, should be enough to cover the costs of unloading cargo from the company’s container ships stranded offshore, Reuters reported a South Korean government official as saying.

The vessels have been stranded ever since the South Korean biggest container carrier filed for bankruptcy protection in late August.

Korea Development Bank, the company’s largest creditor, will provide KRW 50 billion (USD 45.2 million) in cash to help Hanjin offload cargo from the stranded ships. Korean Air Lines Co., Hanjin’s largest shareholder, decided to provide KRW 60 billion to the company, and Hanjin Group’s chairman Cho Yang-ho reportedly offered 40 billion won in personal assets to help the carrier complete the offloading.

Following the announcement of the start of the bankruptcy proceedings, 97 of Hanjin’s container ships, carrying cargo worth around USD 14 billion, were left stranded across the globe and unable to load or offload containers in fear of either the vessels or the cargo being seized by creditors or port operators.

Out of the 97 container ships stranded, 35 have unloaded their cargo as of September 22. The majority of the remaining 62 ships is expected to complete the unloading by the end of October.

The courts in Germany, the UK, Japan, and reportedly Singapore have allowed Hanjin Shipping to unload vessels at the ports in these countries.

The government of South Korea plans to unveil a set of new measures in October which are expected to provide other carriers with measures to avoid the Hanjin scenario.

09/09/2016

Earlier this week, oil giant Royal Dutch Shell started production from the Stones development, the world’s deepest offshore oil and gas project, located in the U.S. Gulf of Mexico.

The host facility for the Stones field is the Turritella floating, production, storage and offloading (FPSO) unit owned and operated by a Joint Venture owned by affiliated companies of SBM Offshore, Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha in which SBM Offshore’s shareholding is 55%.

SBM Offshore on Friday launched a video of the FPSO that is now installed at the Stones development, located in 2,896 meters (9,500 feet) of water approximately 320 kilometers (200 miles) offshore Louisiana in the Walker Ridge area.

According to Shell, Stones is expected to produce around 50,000 barrels of oil equivalent per day (boe/d) when fully ramped up at the end of 2017.

SBM Offshore also said on Friday that FPSO Turritella is formally on hire as of September 2, 2016, after achieving Commencement of Commercial Production (CoCP). The CoCP certificate was issued on September 8, 2016. The lease and operate contracts include an initial period of 10 years with future extension options up to a total of 20 years.

The FPSO’s production capacity is 60,000 barrels of fluids per day. It is specially designed to operate safely during storms. In the event of a severe storm or hurricane, it can disconnect and sail away from the field. Once the weather event has passed, the vessel would return and resume production.

09/09/2016

Expansion of Ghana’s Tema Port Starts in October

Construction works on the USD 1.5 billion Tema Port expansion project is expected to commence on October 1, 2016, according to Ghana Ports and Harbours Authority (GPHA).

Meridian Port Services (MPS), a joint venture between APM Terminals, Bolloré Africa Logistics (Meridian Port Holdings) and the Ghana Ports and Harbours Authority (GPHA), has awarded the contract for the expansion of the port to the China Harbour Engineering Company and AECOM.

The Tema project will result in four deep-water berths, a new breakwater and an access channel able to accommodate the world’s largest containerships, according to APM Terminals. The expansion works will add 3.5 million TEUs in annual throughput capacity.

The new project consists of both greenfield port outside the present facility and a needed upgrade of the adjacent road network.

Scheduled to be completed by the fourth quarter of 2019, the project is expected to expand trade flows and links across West Africa, GPHA said.

The immediate cash-flow need for the project realization is USD 1 billion. MPS has signed a USD 667 million financing package with the International Finance Corporation (IFC), a member of the World Bank group, while the MPS shareholders will provide the rest of the funding amounting to USD 333 million.

Back in November 2014, MPS and GPHA inked an initial memorandum of understanding (MoU) for the expansion plans.

In June 2015, MPS formally signed an agreement to invest USD 1.5 billion in the new port and logistics hub in Tema.

09/09/2016

MSI: Container Lines Shift Focus from Technology to Flexibility

Container lines have shifted their focus towards alliance structures for operational efficiency, rather than relying on large scale technological innovation, according to research and consultancy firm Maritime Strategies International (MSI).

With container lines continuing to seek cost savings, MSI Analyst Jamie Seneviratne said that any equipment manufacturer looking to drive innovation must consider how vessels employing their systems can be compatible with other ships operated in the same alliance structure.

“Historically, container shipping has seen some of the most pioneering uses of technology and new vessel designs, with bold movements towards innovation. Pushing the bounds of technology were independent owners who built a series of containerships designed with specific objectives in mind. These ships were built with an eye on sustainable development and efficiency in ways many others had not considered,” he said.

Despite these achievements, the drive for innovation in container shipping has proceeded at an uneven pace, with technical innovations such as eco-ships and new vessel sizes, have been followed by an increase in ordering. However, the dynamics of the new alliance structures within the industry may challenge the speed, and shape of technological innovation, according to MSI.

“The containership industry is in a state of transition and whilst some liner companies and owners are trying to embrace and drive change, others have struggled to shift their business model. Liner companies need to find a way to consolidate their operations sufficiently to gain economies of scale, achieve cost synergies and eventually obtain some degree of pricing power,” Seneviratne said.

Within this context, any distinct design features or technical innovations on those ships must be compatible in terms of operating alongside a string of other vessels, potentially of different designs

09/09/2016

MSI: Container Lines Shift Focus from Technology to Flexibility

Container lines have shifted their focus towards alliance structures for operational efficiency, rather than relying on large scale technological innovation, according to research and consultancy firm Maritime Strategies International (MSI).

With container lines continuing to seek cost savings, MSI Analyst Jamie Seneviratne said that any equipment manufacturer looking to drive innovation must consider how vessels employing their systems can be compatible with other ships operated in the same alliance structure.

“Historically, container shipping has seen some of the most pioneering uses of technology and new vessel designs, with bold movements towards innovation. Pushing the bounds of technology were independent owners who built a series of containerships designed with specific objectives in mind. These ships were built with an eye on sustainable development and efficiency in ways many others had not considered,” he said.

Despite these achievements, the drive for innovation in container shipping has proceeded at an uneven pace, with technical innovations such as eco-ships and new vessel sizes, have been followed by an increase in ordering. However, the dynamics of the new alliance structures within the industry may challenge the speed, and shape of technological innovation, according to MSI.

“The containership industry is in a state of transition and whilst some liner companies and owners are trying to embrace and drive change, others have struggled to shift their business model. Liner companies need to find a way to consolidate their operations sufficiently to gain economies of scale, achieve cost synergies and eventually obtain some degree of pricing power,” Seneviratne said.

Within this context, any distinct design features or technical innovations on those ships must be compatible in terms of operating alongside a string of other vessels, potentially of different designs

02/09/2016

Drewry: Spot Container Rates Surge after Hanjin Collapse

Spot container freight rates on the major routes from Asia soared by up to 42% on September 1 following the collapse of South Korean container carrier Hanjin Shipping, according to data provided by Drewry’s World Container Index.

Rate assessment increased by 42% to USD 1,674 per 40ft container on the Shanghai-Los Angeles route, by 19% to USD 2,151 on the Shanghai-New York route and by 39% to USD 1,826 on the Shanghai-Rotterdam route.

“Unpredictable freight rates are not new phenomenon in the container industry, however a major upheaval of supply like this is likely to cause extreme short-term price volatility. Shippers should expect increasing freight costs and tight allocation for several weeks at least,” said Richard Heath, general manager of WCI.

“The Hanjin bankruptcy means a shock to the market – some of our shipper customers are making contingency plans and asked us to assess the impact of this on their supply chains,” said Philip Damas, director at Drewry, which jointly owns WCI alongside Cleartrade Exchange.

26/07/2016

NIMASA to certify Naval Officers, Ratings in line with STCW

The Nigerian Maritime Administration and Safety Agency is set to certify Officers and Ratings of the Nigerian Navy in line with the requirements of Standards of Training Certification and Watch-Keeping.
This was contained in a statement by the Head of the Corporate Communications Team of NIMASA, Hajia Lami Tumaka, on Sunday in Lagos.
According to the statement, the Director-General of NIMASA, Dr. Dakuku Peterside, made the disclosure when the Flag Officer Commanding Naval Training Command, Rear Admiral Ifeola Mohammed, led a delegation to NIMASA.
The International Convention on STCW, 1978 sets qualification standards for Masters, Officers and Watch personnel on sea-going merchant ships.
The STCW was adopted in 1978 by a Conference at the International Maritime Organisation in London and entered into force in 1984.
Peterside said training was pivotal to the development of an excellent officer.
He assured the FOC that the agency would immediately commence the process of certifying the Officers and Ratings of the Nigerian Navy, who had satisfied all the requirements.
According to him, training is the way to go in order to ensure professionalism in responding to marine incidences.
He said: “If we must achieve our shared objective of securing our maritime sector, synergy is key and as the Regional Coordinator for Search and Rescue in West and Central Africa, we have to ensure that our training conforms to the needs of protecting our maritime space.”
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The director-general said the agency “welcomes the suggestion by NAVTRAC to train some of NIMASA’s personnel”.
He assured the Navy of continuous collaboration for the overall growth and development of the Nigerian maritime industry.
In his remarks, Mohammed called on NIMASA as the Agency in charge of certification of seafarers to certify Officers and Ratings of the Nigerian Navy trained by NAVTRAC.
The Naval Chief said this would develop them to become useful to the maritime industry, even after retirement from the Navy.
The FOC also mentioned areas of cooperation between NIMASA and the Flag Command, comprising training in search and rescue operations and Global Maritime Distress and Safety System.
Mohammed said the Navy had dedicated ships and simulators, amongst other relevant training equipment, which NIMASA staff could take advantage of.
He said: “We will need to synergise with NIMASA in some specific training such as Search and Rescue, Global Maritime Distress and Safety System and other relevant trainings.”
The FOC said this would prepare officers to be competent and rise to the challenges, which could be encountered in the course of working at sea now and after retirement.
Mohammed agreed with Peterside that NIMASA and the Nigerian Navy operated in the same jurisdiction.
He noted: Therefore, there is the need for the two agencies to foster a closer working relationship and understanding for the benefit of securing the Nigerian maritime domain.”

25/07/2016

NIMASA will no longer tolerate IOCs’ disregard for Cabotage, Environmental Laws – Dr. Peterside


Dr. Dakuku Peterside, the Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA) has said that the Agency will no longer tolerate the disregard for Cabotage and environmental laws by the International Oil Companies (IOCs) operating in Nigeria.

Dr. Peterside who stated this when he held an engagement with representatives of the IOCs in Lagos on ways of fostering a closer synergy towards Nigeria’s economic development also charged the IOCs to be mindful of all existing laws and regulations in the discharge of their duties as applicable sanctions will be meted out to erring companies.

The DG highlighted areas of interest to NIMASA to include the flouting of Cabotage law, negative impact to the environment from oil exploration activities, none payment of statutory levies due to the government and inadequate information sharing.

He stressed that a situation where the IOCs engage foreign vessels to do jobs that Nigerian operators have adequate capacity and equipment will no longer be tolerated as this has been a major bane in the development of Nigeria’s shipping industry.

The DG therefore charged IOCs that “you must give us ample notice of vessel requirements so that we can engage indigenous operators who have the capacity to do the job instead of giving it to foreign operators”.

According to the DG, “the spirit of the Cabotage Act is not to generate revenue in terms of waivers but to build the requisite capacity for indigenous players which will in the long run generate wealth and create employment for Nigeria’s teeming population”.

Dr. Peterside who commended the IOCs for their compliance level with payment of statutory levies so far however noted that the argument on the payment of Cabotage levies on Floating Production Storage and Offloading (FPSOs) facilities and other offshore platforms is unnecessary.

“By our laws, FPSOs and other offshore platforms are Cabotage vessels that are subject to NIMASA’s regulation and payment of statutory levies” the DG said.

The DG called for closer synergy with the oil companies for the benefit of the Nation even as he promised that the Agency will deepen its collaboration with the Nigerian Content Development and Monitoring Board (NCDMB) for the benefit of indigenous operators in Nigeria’s maritime environment.

In his words,” whether you are into shipping or shipping related business, NIMASA has a role to play in ensuring that the business is done seamlessly without security risk and not at the detriment of the Nigerian state. Therefore there is the need for you to cooperate with NIMASA especially in the area of information sharing”.

The DG said that the new NIMASA under his watch is committed to raising a high level of service delivery and that there is the need for all key players to cooperate with the Agency by sharing relevant information that would assist the Agency in carrying out its statutory responsibilities.

The DG noted that the era of some of the IOCs carrying out their businesses in violation of Nigeria’s laws especially as regards Cabotage and the environment is over stressing that “we will not fold our arms and watch while you do damage to our environment because environmental pollution is life threatening”.

25/07/2016

NIMASA approves 3 firms sea time training cadets .
The Nigerian Maritime Administration and Safety Agency, NIMASA, has commenced sea-time training for cadets abandoned for years after the completion of their theoretical studies in various maritime institution across the globe. Already, three firms have been approved to carry out the trauining exercise and the first batch of cadets that benefitted from the National Seafarers Development Programme, (NSDP) have commenced sea time training. Disclosing this in Lagos at a one day programme organised by Platform Communications with the theme, “The Youths and the Future of Nigeria’s maritime industry,” Juliana Gunwa, NIMASA’s Director in charge of Labour Services, said that the agency is working at approving more vendors to create a wider opportunity for cadets in the country. Gunwa said the approval of more vendors will enable cadets undergo their compulsory sea time training, a requirement for qualification as seafarer. She explained that sea time training programme would have commenced much earlier but for the change in government. According to her, “the change brought some slight delay but the Director General of NIMASA has contacted all the vendors that have indicated interest to provide sea time training for cadets. “As I speak, we have three vendors that are providing sea time training for our earlier batches; senior students are at sea services as I speak. “There are also two vendors that have gone very far in the process of meeting the requirement for providing sea time training for other cadets. More vendors are also being invited to submit their papers and make the necessary presentation,” she said. She assured cadets that the agency is working hard to create the enabling environment for sea time training for them, even as she stressed that the agency left them stranded. “NIMASA will never send you to school and leave you without going for sea time, it cannot happen. NIMASA is the agency that regulates the theoretical training and the very vital aspect which is sea time training, there is no way we will not fulfill that obligation,” she concluded.

The Nigerian Maritime Administration and Safety Agency, NIMASA, has commenced sea-time training for cadets abandoned for years after the completion of their theoretical studies in various maritime institution across the globe.

21/07/2016

PIRACY: NIMASA assures the International Shipping Community of Security in Nigeria


The Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA) Dr. Dakuku Peterside has assured the international shipping community and stakeholders of the country's determination to eliminate piracy and criminality within her territorial waters.

The Director General who said this while addressing multilateral and development agencies on the sidelines of the on-going IMO/MOWCA sponsored integrated sub regional coast Guard function network in Brussels, Belgium also noted that Nigeria is working with both local and international counter piracy partners to eliminate criminality on her waterways.

According to the DG, “we have a close working relationship with the United Nations Office on Drugs and Crimes (UNODC) in order to foster an integrated approach to dealing with the menace. We have also increased surveillance and have deployed world class maritime domain awareness assets in conjunction with the Nigeria Navy and the Nigeria Ports Authority to monitor our maritime environment".

Dr Peterside said that in addition, the country has deployed Maritime Patrol Aircrafts (MPA) in collaboration with the Nigerian Air Force as well as other naval assets to patrol and monitor the country’s waterways.

The DG observed that as a signatory to all IMO instruments and regulations relating to maritime security, Nigeria is committed to their compliance in order to eliminate piracy and criminality on the high seas.

Healso said that Nigeria is mindful of the serious risk posed by piracy and maritime crimes to life, navigational safety and the environment saying this is why NIMASA is strengthening the Regional Rescue Coordination Centre located in the country as well as enhance information sharing activities.

While responding to questions on rising cases of militancy in the Niger Delta region of the country, Dr Peterside said Nigeria is adopting a multifaceted approach to deal with the challenge and assured the international shipping community that it is being tackled.

He urged the maritime community to draw a distinction between criminality, piracy and militancy reiterating that Nigeria is safe for shipping and other commercial activities in the maritime sector.

Dr. Peterside appealed to international development agencies to work with Nigeria in resolving maritime security challenges in the country because of its strategic position to the overall maritime development in the continent given the size of her economy, population and geographical location.

21/07/2016

PIRACY: NIMASA assures the International Shipping Community of Security in Nigeria


The Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA) Dr. Dakuku Peterside has assured the international shipping community and stakeholders of the country's determination to eliminate piracy and criminality within her territorial waters.

The Director General who said this while addressing multilateral and development agencies on the sidelines of the on-going IMO/MOWCA sponsored integrated sub regional coast Guard function network in Brussels, Belgium also noted that Nigeria is working with both local and international counter piracy partners to eliminate criminality on her waterways.

According to the DG, “we have a close working relationship with the United Nations Office on Drugs and Crimes (UNODC) in order to foster an integrated approach to dealing with the menace. We have also increased surveillance and have deployed world class maritime domain awareness assets in conjunction with the Nigeria Navy and the Nigeria Ports Authority to monitor our maritime environment".

Dr Peterside said that in addition, the country has deployed Maritime Patrol Aircrafts (MPA) in collaboration with the Nigerian Air Force as well as other naval assets to patrol and monitor the country’s waterways.

The DG observed that as a signatory to all IMO instruments and regulations relating to maritime security, Nigeria is committed to their compliance in order to eliminate piracy and criminality on the high seas.

Healso said that Nigeria is mindful of the serious risk posed by piracy and maritime crimes to life, navigational safety and the environment saying this is why NIMASA is strengthening the Regional Rescue Coordination Centre located in the country as well as enhance information sharing activities.

While responding to questions on rising cases of militancy in the Niger Delta region of the country, Dr Peterside said Nigeria is adopting a multifaceted approach to deal with the challenge and assured the international shipping community that it is being tackled.

He urged the maritime community to draw a distinction between criminality, piracy and militancy reiterating that Nigeria is safe for shipping and other commercial activities in the maritime sector.

Dr. Peterside appealed to international development agencies to work with Nigeria in resolving maritime security challenges in the country because of its strategic position to the overall maritime development in the continent given the size of her economy, population and geographical location.