China’s Iron Ore Bargain-Hunting Wins Reprieve for Shipping… For Now

capesize bulk carrier

By Naomi Christie (Bloomberg) -- The bear market in iron ore is sending Chinese steel mills on a bargain hunt and giving shipping companies their best rates this year. Analysts and brokers are already warning the good times won’t last. The acceleration in bookings of Capesizes, 960-foot-long vessels that dominate the ore trade, pushed daily rates to the most since … [Read more...]

South Korean Shipyards Struggling As Offshore Strategy Fails

DSME Shipyard file photo: Shutterstock/Christopher Poe

  By Rose Kim, Jungah Lee and Michael S. Arnold (Bloomberg) -- The deep-ocean strategy is coming back to bite South Korean shipyards. Hyundai Heavy Industries Co., Daewoo Shipbuilding & Marine Engineering Co. and Samsung Heavy Industries Co. -- South Korea’s Big Three shipbuilders -- ventured into offshore oil rigs starting around 2010. The goal was to avoid … [Read more...]

China Probing Car Carrier Lines on Antitrust Claims

Car_carrier_Galaxy_Leader

By Bloomberg News (Bloomberg) -- China’s top economic planning agency is investigating allegations of monopolistic practices by shipping lines that move vehicles, according to people familiar with the matter. The National Development and Reform Commission probe involves several companies but focuses on Japan’s Mitsui OSK Lines, Kawasaki Kisen Kaisha and Nippon Yusen KK … [Read more...]

China Answers Japan Oil Rig Concern With Offer

One of many photos released by Japan's Foreign Ministry showing Chinese oil and gas structures in the East China Sea. Photo: Japan Foreign Ministry

By Bloomberg News (Bloomberg) -- China repeated a call Friday for talks with Japan over joint development of gas and oil resources in contested waters in the East China Sea. The offer comes days after Japan disclosed a map and photographs of what it said were 16 Chinese marine platforms close to Japan’s side of a geographical median line that it contends should mark the … [Read more...]

Idling Drillships Turn Gulf of Mexico Into One Big Expensive Parking Lot

Ensco 9 drillship file photo courtesy Ensco Plc

By David Wethe (Bloomberg) -- Imagine parking your $300 million boat for months out in the open sea, with well-paid mechanics hovering around it and the engine running. The Gulf of Mexico and the Caribbean Sea have become a garage for deepwater drillships -- at a cost of about $70,000 a day each. It’s either that or send your precious rig to a scrapyard. The dilemma … [Read more...]

LNG Seen Overtaking Iron Ore as Australia’s Main Export Driver

Photo: Shutterstock/Oleksandr Kalinichenko

By James Paton (Bloomberg) -- Liquefied natural gas will overtake iron ore as the main driver of Australia’s exports with annual shipments surging to more than A$50 billion ($37 billion) by 2020, according to Australia & New Zealand Banking Group Ltd. The contribution of LNG to Australia’s economic growth will surpass iron ore next year and peak at 0.75 percentage … [Read more...]

U.S. Arctic Drilling Permits for Shell Stop Shy of Oil Zone

MSV Fennica. Photo: Shell Alaska

  By Mark Drajem (Bloomberg) -- Royal Dutch Shell Plc received limited permits to drill two wells off Alaska’s Arctic coast, leaving the company still short of its desire to tap into the offshore oil reserves. The U.S. Interior Department approved Shell’s applications to drill in the Chukchi Sea, while saying the company may not reach the oil reserves until safety … [Read more...]