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Alphaliner: Minimal Disruptions Expected in ONE Switch
The Ocean Network Express (ONE) will introduce only minor changes to the existing service offerings of K Line, MOL and NYK Line’s individual services from April 1, Alphaliner writes.
The Day ONE service network covering the revised East-West trade network of THE Alliance and Intra-Asia networks shows only minor changes to the service offerings, with no significant fleet rationalizations planned.
Additionally, the Africa and Oceania routes will see no changes to the existing service network, with all current 3J service coverage to be retained.
The Latin America coverage will also be largely retained, apart from the revision of the FE-WCSA network.
The main changes are expected to occur on the Intra-Asia network, where the existing overlap and duplication of some routes by K Line, MOL and NYK will see several services consolidated, with rationalizations expected to be limited to only some of the current slot arrangements on third party carriers without any significant removal of existing 3J tonnage.
“The transition to the ONE network is expected to be smooth, with customers expected to shift over to the new network with minimal disruptions during the switchover,” according to Alphaliner.
Cosco Shipping Leasing to Raise Cash for Loan Repayment
China-based Cosco Shipping Leasing is looking to raise CNY 2.02 billion (USD 318.2 million) through the issuance of asset-backed securities.
The company plans to use the proceeds from the proposed issuance to repay its loans.
The securities, which will be listed on the Shanghai Stock Exchange, will be divided into senior and subordinated classes, according to a release by the company’s parent, Hong Kong-listed Cosco Shipping Development.
The senior classes would be in the principal amount of not more than CNY 1.86 billion, which will account for 92.04% of the proposed issuance and will be issued to qualified investors in the PRC, while the subordinated class would be in the principal amount of not more than CNY 161.1 million, or around 7.96% of the proposed issuance and will be subscribed by Cosco Shipping Leasing.
The securities will have a term of not more than four years and will be backed by the creditor’s rights and collateral interests of Cosco Shipping Leasing pursuant to certain finance leases.
The completion of the issuance is subject to, among other things, the obtaining of the no objection letter to be issued by the Shanghai Stock Exchange.
Strong Container Demand Pushes Maersk Line’s Profit Up
Danish shipping giant Maersk Line reported a net profit of USD 584 million in 2017, against a net loss of USD 376 million seen a year earlier.
The company’s revenue for the year increased by 14.9% to USD 23.8 billion, from USD 20.7 billion reported in 2016, driven by an 11.7% increase in the average freight. Underlying profit for the period was at USD 521 million, against a loss of USD 384 million.
The year was challenged by a cyber-attack and bunker price increases, however, Maersk Line returned to profit with a significant improvement compared to the disappointing 2016.
The global container demand was strong in 2017, despite a slowdown in the second half of the year following a strong first half, which resulted in increased freight rates compared to the previous year. Maersk Line grew volumes by 3% to 10,731k FFE, compared to 10,415k FFE, despite the negative impact of the cyber-attack.
The volume increase was driven East-West by 2.4%, North-South by 2.2% and Intra-regional by 7.3%. The rise reflects a strong market demand, with estimated growth of around 5% compared to 2016.
The acquisition of German container shipping line Hamburg Süd and the divestment of Brazil’s container shipping line Mercosul Line were completed in December 2017.
The Maersk Line fleet consisted of 287 owned vessels and 389 chartered vessels with a total capacity of 3,564k TEU by the end of 2017, an increase of 10% compared to the end of 2016. The rise is partly due to more capacity being deployed to accommodate the incoming volumes from the slot purchase agreement signed in Q1 2017 with Hamburg Süd and Hyundai Merchant Marine.
Idle capacity at the end of 2017 was 24.1k TEU (three vessels), which was flat compared to 24.7k TEU of idle capacity at the end of 2016.
Report: HMM to Start Ordering ULCVs from Next Month
South Korean shipping major Hyundai Merchant Marine is expected to place orders for up to 20 ultra large container vessels (ULCVs), starting from March, according to local media.
The company would commence the ordering spree on the back of South Korea’s plan to support the ordering of up to 50 vessels this year.
Namely, the Ministry of Oceans and Fisheries is expected to present its five-year plan for the reconstruction of the shipping industry later this month. The Founding Committee for Korea Maritime Promotion Corporation will then start providing financial support.
The corporation can issue bonds up to four times its capital, amounting to KRW 3.1 trillion, and manage up to KRW 12 trillion in funds.
Hyundai Merchant Marine has delivered a net loss of KRW 479.5 billion in book value of 10 vessels that were sold to Korea Shipping and Maritime Transportation in March 2017.
The company’s total revenue increased by 10 percent year-on-year to KRW 5.028 trillion, while its handling volumes surged by 30 percent to 4.03 million TEU from 3.09 million TEU seen in the previous year.
Source: World Maritime News
