gCaptain.com

DP World, a Dubai-government controlled holding company and one of the largest marine terminal operators in the world, awarded a £400m contract yesterday to British firm Laing O’Rourke and Belgium’s Dredging International for the development of the first phase of the new port at London Gateway and is the first major contract granted for the £1.5 billion project.

London Gateway will be Uk’s first deep sea container port for over 25 years and offers an exciting opportunity for the UK economy and shipping industry as a whole.  It is set to be the most technologically advanced container port in the world and will be fully integrated with Europe’s largest logistics park.

The 1500 acre site is situated on the north bank of the River Thames near Thurrock in Essex. London Gateway will provide unrivalled shipping access for the world’s leading businesses through an integrated road, rail and sea network.

The project will lead to the creation of over 12,000 new jobs and will eventually handle an estimated 3.5 million TEU’s per year to help meet recognized demand for extra container capacity in the UK.

Actual construction will begin later this year and the logistics park is due to open in the second of of 2010, with the first ships are said to be arriving early 2011.

Sources: DP World, AFP,

In spirit of the 2008 Olympics that kicked off today in Beijing, I came across this interesting article from The Economic Times explaining how this years Olympics brings down ship freight rates.  Now I’m no economist so I think you will be better off reading the article for yourself HERE.  But the gist of it is that China will effectively shut down for the next 17 days and the events leading up to, during and after the games are going to have a lasting effect on ship freight rates.

All factories, workshops, and industrial estates in and around Beijing province will be closed to ensure tourists and deadly serious sportspeople don’t get a whiff of smoke, see ugly machinery or the usual detritus of a country that has become the world’s factory yard.

Since Chinese factories will be shut, they would not need copious volumes of raw material, nor have giant ship-loads of finished goods to move out. Moreover, China had been stockpiling diesel and crude oil before the Games to ensure uninterrupted supplies. That record demand for tankers to carry crude is expected to drop 40% once the Games start. So basically, China needs very few ships right now. That has acted as a sledge hammer on ship freight rates.

Essentially, supply currently outweighs demand and that’s a good thing… right?

The shipping industry is currently the most profitable segment of the market with exploratory driling heading the way. The woldfleet of drillships alone will double in the next four years and this does not including countries with much larger plans. From seaman to CEO, if you are not connected to the offshore industry is some way you are missing out on the gold rush. Just make sure you call us before showing up late