Image courtesy Orient Overseas Container Line

Members of the G6 Alliance announced today that their groundbreaking cooperation in Asia-Europe container shipping will begin operation in the first week of March – one month ahead of schedule.

“We are eager to roll out our competitive products to benefit customers by offering a comprehensive and increased coverage of 40 ports in the Asia-Europe market with more sailing frequency,” the members said in a statement.  “Customer response to the G6 Alliance is strong, the latest economic condition in the trade supports the timing of the launch, and we are ready to meet the market’s expectations.”

The G6 Alliance, serving the Asia-to-Europe-and-Mediterranean market was announced last December.  The G6 Alliance members are the carriers in the Grand Alliance and New World Alliance: APL, Hapag-Lloyd AG, Hyundai Merchant Marine, Mitsui O.S.K Lines, Nippon Yusen Kaisha and Orient Overseas Container Line.

The G6 Alliance will launch six services between Asia and North Europe in the first week of March.  Those serving Japanese ports will commence after completion of consultations with the Japan Harbor Transportation Association and labor unions.

A seventh service will follow when it can be supported by sustainable trade conditions.  The service will provide direct coverage to the Bohai Bay ports in Dalian and Xingang.

The G6 Alliance will continue the existing Asia-Mediterranean Express Service (EUM) and will also launch a new Asia-Black Sea Express service (ABX) in the first week of April.

The base-plan port rotation of the G6 Alliance loops is as follows, subject to the confirmation of berth availability:

Loop 1

Kobe – Nagoya – Shimizu – Tokyo – Hong Kong – Cai Mep – Singapore – Jeddah – Rotterdam – Hamburg – Southampton – Le Havre – Singapore – Hong Kong – Kobe

Loop 2

To be finalized

Loop 3

Shanghai – Ningbo – South China – Singapore – Tangier – Rotterdam – Bremerhaven – Gdansk – Gothenburg – Rotterdam – Jeddah – Singapore – South China – Hong Kong – Shanghai

Loop 4

Ningbo – Shanghai – South China – Singapore – Southampton – Hamburg – Rotterdam – Singapore – South China – Ningbo

Loop 5

Kwangyang – Pusan – Shanghai – South China – Singapore – Rotterdam – Hamburg – Thamesport – Singapore – Kwangyang

Loop 6

Kaohsiung – Xiamen – South China – Hong Kong – Singapore – Colombo – Southampton – Antwerp – Hamburg – Rotterdam – Jebel Ali – Singapore – South China – Kaohsiung

Loop 7

Qingdao – Shanghai – Hong Kong – South China – Singapore – Salalah – Le Havre – Rotterdam – Hamburg – Southampton – Tangier – Salalah – Singapore – South China – Qingdao

ABX Service

Ningbo – Shanghai – South China – Hong Kong – Singapore – Port Said – Ashdod – Istanbul – Constanza – Odessa – Istanbul – Ashdod – Port Said – Singapore – Ningbo

EUM Service

Pusan – Shanghai – Ningbo – South China – Hong Kong – Singapore – Port Klang – Jeddah – Damietta – Genoa – FOS Sur Mer – Barcelona – Valencia – Damietta – Jeddah – Singapore – Hong Kong – Pusan

Image courtesy Global Workboats

Otto Marine Limited, a leading offshore marine services and shipbuilding company announced that it has entered one of it’s AHTS’ into a time charter contract for an initial value of USD $20.8 million over 3 years, with an option to extend for a further 1 + 1 year.  The potential value of this contract is up to USD $35.0 million.

The 7,200 bhp AHTS with DP class 2 capabilities “Beluga 1” vessel will be operated by Global Workboats Private Limited (“Global Workboats”) and deployed off the coast of Nigeria, and be part of a growing fleet of vessels servicing the West African offshore market. The vessel is currently undergoing routine maintenance at Otto Marine’s Batam shipyard.

image courtesy Otto Marine

Including “Beluga 1”, Global Workboats will have a total of 4 offshore support vessels deployed in African waters. Other 3 vessels already deployed include two 61 meters utility vessels and one 8,000 bhp AHTS.

Chief Financial Officer of Otto Marine, Mr. Michael See, commented, “we are delighted with this charter contract which is a reflection of our increasing presence in Africa and together with the recent sale of our 10,800 bhp AHTS vessel to a third party for US$31.0 million demonstrates our commitment to steadily strengthen and improve our cash position.
We will continue to work on strengthening our chartering fleet through organic growth to enhance our operating and logistics capabilities. We believe the positive synergies harnessed within our business offerings will land us in a commanding position to tap on the growth opportunities within the Asia-Pacific region and Africa.”

Managing Director of Global Workboats, a 100% owned subsidiary of Otto Marine specializing in offshore supply vessel operations, Capt. Mike Kelly, commented that “we are all very proud to be a part of the ExxonMobil project. The Beluga 1 has been custom fitted with a 25 ton deck crane which will enable her to successfully deliver on the specific requirements for the project.”

The contract is expected to have marginal contribution to the Company’s FY 2012 earnings.

About Otto Marine Limited (OTML.SP)

Singapore-based Otto Marine Limited is an offshore marine group engaged in specialized shipbuilding of offshore vessels for primarily deep sea applications. In addition, Otto Marine is chartering out its own fleet of sophisticated and environmentally friendly (clean/comfort class) Anchor Handling Tugs and Offshore Supply vessels.

In continuation of its expansion strategy, Otto Marine is the majority shareholder in the seismic operator, Reflect Geophysical.

Otto Marine owns and operates one of the largest shipyards in Batam, Indonesia – one of the most sophisticated yards in Asia Pacific. The yard is building to DNV and Norwegian class standards. Its customers are primarily deep sea and offshore operators and equipment companies who provide logistics support and offshore services to companies operating globally in the oil and gas industry.

Image courtesy Knightsbridge Tankers

Bermuda-based Knightsbridge Tankers Ltd (NASDAQ:VLCCF) reported yesterday a net income of USD 9.5 million (EUR 7.1m) for the fourth quarter of 2011, up from USD 6 million a year earlier.  Net income increased primarily due to an improvement in the results of the VLCC Kensington, which is operating in the spot market.  Last year at this time, VLCC Kensington was in drydock which resulted in a subsequent revenue loss of $3.6M.

The average daily time charter equivalents (“TCEs”) earned by the Company’s VLCCs and Capesize vessels were $26,900 and $36,500, respectively, compared with $25,300 and $36,800 in the preceding quarter.

Operating revenue grew to USD 25.9 million from USD 21.6 million. Earnings per share (EPS) improved to USD 0.39 from USD 0.25. The board of directors proposed a dividend of USD 0.50 per share for the fourth quarter of 2011.

Net income for the full 2011 declined to USD $34.4 million from USD $38.6 million in 2010. EPS fell to USD $1.14 from USD $2.02. Revenue rose to USD $96.2 million from USD $95.9 million.

BREAK-EVEN FIGURES

As of February 2012, Knightsbridge reports an average cash breakeven rate for the remainder of 2012 for its VLCCs and Capesize vessels, (excluding bareboat charters), of $14,100 and $7,600, respectively, per vessel per day.

The VLCCs which are on bareboat charters have a cash break even rate of $5,300 per vessel per day.

THE TANKER MARKET

The market rate for a VLCC trading on a standard ‘TD3’ voyage between the Arabian Gulf and Japan in the fourth quarter of 2011 was WS 54, representing an increase of approximately WS 7.5 points from the third quarter of 2011 and a decrease of approximately WS 4 points from the fourth quarter of 2010. Present market indications are approximately $20,000/day in the first quarter of 2012.

Bunkers at Fujairah averaged $672/mt in the fourth quarter of 2011 compared to $664/mt in the third quarter of 2011; an increase of approximately $9/mt. Bunker prices varied between a low of $629/mt at the beginning of October and a high of $711/mt on November 14, 2011.

The International Energy Agency’s (“IEA”) January 2012 report stated an average OPEC oil production, including Iraq, of 30.53 million barrels per day (mb/d) during the fourth quarter of the year. This was an increase of 0.6 million barrels per day compared to the third quarter of 2011 and an increase of 1.1 million barrels per day compared to the fourth quarter of 2010.

IEA further estimates that world oil demand averaged 89.53 mb/d in the fourth quarter of 2011, which is the same level as the previous quarter, and a decrease of approximately 0.25 mb/d from the fourth quarter of 2010. Additionally, the IEA estimates that world oil demand will average approximately 90 mb/d in 2012, representing an increase of 1.2 percent or approximately 1.07 mb/d from 2011.

The global VLCC fleet totalled 594 vessels at the end of the fourth quarter of 2011, up from 584 vessels at the end of the previous quarter. 11 VLCCs were delivered during the quarter whilst one was deleted. The orderbook counted 123 vessels at the end of the fourth quarter, down from 131 orders from the previous quarter. Three new orders were placed during the quarter, and the current orderbook represents about 21 percent of the VLCC fleet. According to Fearnleys the single hull fleet stands at 30 vessels.

Greatship Vimla is a Class II DP vessel equipped with Fire Fighting Capability and has been built complying with the new SPS Code 2008, capable of supporting offshore exploration and production.

With the delivery of Greatship Vimla, GIL and its subsidiaries currently own and operate four PSVs, nine AHTSVs, three MPSSVs, three ROVSVs and two jack up rigs. GIL and its subsidiaries also have an order book of three ROVSVs in Sri Lanka and one jack-up rig in Dubai.

GIL is a subsidiary of The Great Eastern Shipping Company.  The vessel’s full specifications can be found HERE.

Teekay Corporation (NYSE:TK) and König & Cie are pleased to announce that Diamond S Shipping Group has joined the Gemini Tankers Suezmax Pool as a full member. The Gemini fleet currently has 17 modern Suezmax vessels. This is expected to grow to 26 vessels by the end of 2012 as vessels redeliver from time-charters and Diamond S’ eight additional newbuildings are added to the Pool.

“We are delighted that Diamond S Shipping has joined the Gemini Tankers Suezmax Pool. The addition of their eight, high quality newbuild Suezmax tankers delivering over the course of 2012 further modernizes our fleet and solidifies our position as the premier Suezmax tanker pool,” commented Håkan Svedin, Gemini’s Managing Director.

“We have a great team in place providing a transparent, reliable and flexible management service to our customers, with whom we have long-term relationships. To them we can offer a fantastic modern Suezmax fleet operating across the globe, with a focus on the Atlantic spot markets,” Mr. Svedin added.

Craig Stevenson, CEO, Diamond S Shipping Group commented, “We are pleased to pool our Suezmax tankers with Teekay and König in the Gemini Tankers Suezmax Pool. We are excited by the opportunities this relationship will create for Diamond S. We were attracted by the modern fleet of Suezmax tankers operated by the Gemini Tankers Pool and their established track record of successfully managing that fleet in the key Suezmax tanker markets around the world.”

Bruce Chan, President, Teekay Tanker Services, commented, “Teekay is very pleased to continue with its long-standing cooperation with König, and excited about working with a first-class owner in the Craig Stevenson-led Diamond S Shipping. The addition of eight, high quality newbuild Suezmax tankers over the course of 2012 ensures that Gemini will be able to continue to provide excellent service to our customers.”

Tobias König, Managing Partner, König, agreed. “We have worked with Teekay for many years, and believe that the new relationship we have with Diamond S will support the long-term success of Gemini Tankers,” said Mr. König. “We have real competence in the pool: each partner brings a proven commercial record, strong financial backing, and long-term commitment to the Suezmax segment,” continued Mr. König.

“We have strong, reliable pool owners who are with us for the long-term,” added Mr. Svedin. “However, we will also consider taking further owners and tonnage into the Pool over time. The future for Gemini Tankers is exciting and the team will continue providing the best service in the market to our pool partners and customers.”

About Gemini

Gemini commercially manages a pool of Suezmax tankers. The Gemini team, including key chartering, commercial operations and post-fixture staff, operate from the pool’s headquarters in Stamford Connecticut, headed by Managing Director, Håkan Svedin, who has successfully led the Gemini Pool since 2009.

About Teekay

Teekay Corporation provides a comprehensive set of marine services to the world’s leading oil and gas companies, helping them seamlessly link their upstream energy production to their downstream processing operations. Teekay is growing its operations in the offshore oil production, storage and transportation sector through its publicly-listed subsidiary, Teekay Offshore Partners L.P. (NYSE:TOO), and its investment in Sevan Marine ASA (OSE:SEVAN). Teekay also continues to expand its significant presence in the liquefied natural gas shipping sector through its publicly-listed subsidiary, Teekay LNG Partners L.P. (NYSE:TGP), and seeks to grow its conventional tanker business through its publicly-listed subsidiary, Teekay Tankers Ltd. (NYSE:TNK). With a fleet of approximately 150 vessels, offices in 16 countries and approximately 6,300 seagoing and shore-based employees, Teekay transports approximately 10 percent of the world’s seaborne oil and its reputation for safety, quality and innovation has earned it a position with its customers as The Marine Midstream Company.

Teekay’s common stock is listed on the New York Stock Exchange where it trades under the symbol “TK”.

About König:

König & Cie. is a leading privately owned developer of investment projects as well as a fund & asset manager in Germany, and has currently €4.2 billion assets under management. Investment projects have focused on the following industries: Shipping, Infrastructure, Real Estate, Private Equity & Renewable Energy. König currently controls a fleet of 83 vessels ranging from Container Vessels, Tankers, Bulk Carriers and a Car Carrier. König sponsors and manages the stock listed “Marenave Schiffahrts AG” that controls a fleet of currently 13 vessels. König issued over 80 KG-Funds approved by the German SEC, thereby investing into shipping investments valued at approx. €2.9 billion. The company is representing approx. 31,000 investors with about 42,000 KG-shares.

About Diamond S

Headquartered in Greenwich, Connecticut, USA, Diamond S Shipping Group is a global owner/operator of modern, efficient crude and refined product tankers. Diamond S Shipping’s current fleet consists of 30 medium-range refined product tankers on long-term charter, a newly built Suezmax tanker operated in the spot market and seven newbuild Suezmax and two LR2 tankers scheduled for delivery in 2012 and 2013. Diamond S Shipping has invested or committed US$2.0 billion in building its fleet.

Damen PSV 3300

Norwegian shipowner World Wide Supply (WWS) has ordered another two PSV 3300 CD’s with Damen Shipyards. The two platform suppliers are added to the four that WWS announced to be built in December 2011. The extra vessels will be delivered end of 2013 and operated by Remøy Management AS.

Mr. Ståle Remøy, Managing Director of Remøy, says:

“We are glad we have been able to achieve another two ships from Damen of this modern design. With the special wave piercing bow and the extremely slim waterlines, these ships will have an increased operational window, higher transit speed, reduced fuel consumption and increased crew comfort. The living quarters are developed according to strict demands for noise reduction, which also improves comfort and safety for the crew. We have a lot of faith in these new vessels and are looking forward to service the offshore market.”

The PSV 3300 CD design, one of Damen’s new offshore support series, is developed to service oil and gas rigs safely and economically, especially in adverse weather conditions.

Jan van Os, Product Director Offshore, says:

“We’ve aimed for a ‘workhorse’, a PSV with excellent seakeeping qualities, low maintenance and in line with the latest Clean Design and Environmental Protection requirements of the major classification societies. Also, it should be an efficient vessel for the crew to operate and to live on when at sea. As to maintenance, it should be low. For example, we’ve reduced the number of angles to achieve this. This has resulted in long smooth lines, which has a positive effect on the durability of coatings, reduces the formation of rust etc.”

The PSV 3300 is designed according to Damen’s E3 principles: Environmentally friendly, Efficient in operation and Economically viable. Hull shape, coatings, the location of oil tanks, refrigerants, recovery of waste heat and engine emissions have all been thoroughly researched and (re-)designed accordingly in order to create cost efficient, emission friendly offshore supply vessel.

As Royal Caribbean’s Oasis of the Seas departed Port Everglades, Florida last week, the hydrodynamic response of the ship as it interacted with the surrounding tidal areas left beach-goers puzzled, and for those who were in the water, perhaps even a bit worried as they were sucked toward the channel…

Video and Images shot by maritime headhunter and University of Miami sailing coach, Craig Johnson –  Flagship Management www.flagshipmgt.com

Photo Sequence:

On 24 January 2012, Dutch shipbuilder Damen Shipyards delivered three Cutter Suction Dredgers of its CSD 500 series to the Ministry of Emergency Situations (MES) in Azerbaijan.  After delivery, President Ilham Aliyev and Minister of Emergency Situations Kamaladdin Heydarov examined the dredgers at the premises of the Yacht Club in Baku. Damen representatives briefed the President and his party on the functions and features of the CSD 500 and on the expanding production programme of the Damen Shipyards Group.

Kura River

MES ordered the three Damen dredgers to avoid repetition of the events that occurred as result of the Kura River bursting its banks in previous years. The CSDs will be used to clean-up, deepen and maintain the Kura River water system. The three vessels come from a successful and long-standing series of cutter suction dredgers designed according to the Damen principles of standardization and continuous research & development.

CSD 500

The dredgers can work up to a maximum dredging depth of 14m and are able to pump 4.000 m3/h of water/soil mixture per hour. They are outfitted with a large number of options to enhance dredging efficiency, safety and comfortable working conditions for the vessel’s crew. Amongst them are day and night accommodations, anchor booms and spud carriage pontoons. A full communication package, dredge pump performance monitoring instrumentation and a position visualisation Navguard system are installed in the spacious operating cabin. In addition, Damen will supply basic spare parts and training for the crew and dredge masters.

Due to Damen’s philosophy of series production and delivery from stock it was possible to build, outfit, deliver and commission all three dredgers within six months after the contract became effective. The three dredgers will shortly be moved to Nefchala, where the crew will be trained. Afterwards the dredgers will commence their work at three different locations on the Kura River: Nefchala, Salayan and Sabirabad.

Specifications:

DELIVERY DATE:                                          October 2011

BASIC FUNCTIONS:                                    Maintenance dredging
CLASSIFICATION                                         Bureau Veritas sheltered area

DREDGING FEATURES
DREDGING DEPTH                                     14 m

DREDGE INSTALLATION
DREDGE PUMP TYPE                               BP5045MD
DIAM. SUCTION/DISCHARGE PIPE 550/500 mm
CUTTER TYPE                                              5-1625 (with changeable chisels)
CUTTER POWER                                        180 kW

ENGINE INSTALLATION

DREDGE PUMP DIESEL                          Caterpillar 3512B

CONTINUOUS POWER RATING        954 kW @ 1600 rpm
AUXILIARY DIESEL                                  Caterpillar 3406-DITA JWAC
PRIME POWER RATING                        345 kW @ 1800 rpm
HYDRAULIC INSTALLATION              driving cutter, winches and spuds
ELECTRICAL INSTALLATION             24 Volt DC and 230/400 Volt AC, 34 kVA

PRINCIPAL DIMENSIONS
LOA INCL. LADDER                                  49.10 m
LENGTH OVER PONTOONS                36.50 m
BEAM                                                               7.95 m
DRAUGHT                                                     1.00 m

Pacific Scirocco, image courtesy Pacific Drilling

Pacific Drilling S.A. (NYSE: PACD) (NOTC: PDSA) announced today that its ultra-deepwater drillship the Pacific Scirocco commenced operations in Nigeria on December 31, 2011. The drillship is contracted for an initial one-year term to a subsidiary of Total S.A. (NYSE: TOT). The contract further provides for options, to be exercised at the client’s discretion, which could result in up to four additional years of contract term.

The Pacific Scirocco is a dual-activity, dynamically positioned drillship, classed by ABS, and Liberian-flagged.  She was built by Samsung Heavy Industries in 2011 and is capable of operating in water depths of up to 12,000 feet and drilling wells 37,500 feet deep.

Speaking with Pacific Drilling this morning, they note that this rig will not be using dual gradient technology while on contract with Total, although this rig is upgradeable and ready to be fitted with this system should the client request it.  To learn about this game-changing technology, click HERE.