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.:Maritime News :.
August-2019
16-Aug-2019 [8]
14-Aug-2019 [13]
13-Aug-2019 [10]
12-Aug-2019 [13]
10-Aug-2019 [5]
9-Aug-2019 [8]
8-Aug-2019 [12]
7-Aug-2019 [12]
6-Aug-2019 [11]
5-Aug-2019 [11]
3-Aug-2019 [12]
July-2019
31-Jul-2019 [8]
30-Jul-2019 [12]
29-Jul-2019 [9]
27-Jul-2019 [9]
26-Jul-2019 [10]
25-Jul-2019 [11]
24-Jul-2019 [14]
23-Jul-2019 [12]
22-Jul-2019 [12]
19-Jul-2019 [14]
18-Jul-2019 [11]
17-Jul-2019 [10]
16-Jul-2019 [15]
13-Jul-2019 [12]
9-Jul-2019 [8]
8-Jul-2019 [13]
6-Jul-2019 [5]
5-Jul-2019 [10]
4-Jul-2019 [11]
3-Jul-2019 [12]
2-Jul-2019 [8]
1-Jul-2019 [14]
June-2019
29-Jun-2019 [6]
27-Jun-2019 [14]
26-Jun-2019 [15]
25-Jun-2019 [12]
24-Jun-2019 [11]
22-Jun-2019 [6]
21-Jun-2019 [10]
20-Jun-2019 [12]
19-Jun-2019 [14]
18-Jun-2019 [14]
17-Jun-2019 [12]
14-Jun-2019 [9]
13-Jun-2019 [17]
12-Jun-2019 [10]
10-Jun-2019 [14]
8-Jun-2019 [7]
7-Jun-2019 [10]
6-Jun-2019 [14]
5-Jun-2019 [11]
4-Jun-2019 [8]
3-Jun-2019 [9]
May-2019
30-May-2019 [12]
29-May-2019 [14]
27-May-2019 [12]
25-May-2019 [6]
24-May-2019 [10]
23-May-2019 [18]
22-May-2019 [14]
21-May-2019 [15]
20-May-2019 [14]
17-May-2019 [17]
16-May-2019 [15]
15-May-2019 [17]
14-May-2019 [11]
13-May-2019 [13]
11-May-2019 [11]
9-May-2019 [12]
8-May-2019 [12]
7-May-2019 [14]
6-May-2019 [12]
3-May-2019 [13]
2-May-2019 [11]
April-2019
30-Apr-2019 [11]
27-Apr-2019 [5]
26-Apr-2019 [7]
25-Apr-2019 [14]
24-Apr-2019 [16]
23-Apr-2019 [14]
22-Apr-2019 [14]
18-Apr-2019 [15]
17-Apr-2019 [18]
16-Apr-2019 [13]
15-Apr-2019 [13]
13-Apr-2019 [8]
12-Apr-2019 [15]
11-Apr-2019 [15]
10-Apr-2019 [11]
9-Apr-2019 [13]
8-Apr-2019 [16]
5-Apr-2019 [11]
4-Apr-2019 [14]
3-Apr-2019 [17]
2-Apr-2019 [15]
1-Apr-2019 [14]
March-2019
30-Mar-2019 [7]
29-Mar-2019 [9]
28-Mar-2019 [14]
27-Mar-2019 [11]
25-Mar-2019 [9]
23-Mar-2019 [7]
22-Mar-2019 [18]
20-Mar-2019 [16]
19-Mar-2019 [16]
18-Mar-2019 [11]
16-Mar-2019 [9]
15-Mar-2019 [16]
14-Mar-2019 [13]
13-Mar-2019 [16]
12-Mar-2019 [15]
11-Mar-2019 [9]
9-Mar-2019 [5]
8-Mar-2019 [18]
7-Mar-2019 [13]
6-Mar-2019 [16]
4-Mar-2019 [12]
1-Mar-2019 [17]
February-2019
28-Feb-2019 [9]
27-Feb-2019 [14]
25-Feb-2019 [14]
23-Feb-2019 [10]
22-Feb-2019 [15]
21-Feb-2019 [16]
20-Feb-2019 [16]
19-Feb-2019 [14]
18-Feb-2019 [11]
16-Feb-2019 [10]
15-Feb-2019 [9]
14-Feb-2019 [15]
13-Feb-2019 [15]
12-Feb-2019 [14]
11-Feb-2019 [14]
7-Feb-2019 [14]
6-Feb-2019 [13]
5-Feb-2019 [14]
4-Feb-2019 [11]
2-Feb-2019 [9]
1-Feb-2019 [12]
January-2019
31-Jan-2019 [14]
30-Jan-2019 [12]
29-Jan-2019 [13]
28-Jan-2019 [14]
25-Jan-2019 [8]
24-Jan-2019 [14]
23-Jan-2019 [13]
22-Jan-2019 [15]
21-Jan-2019 [10]
18-Jan-2019 [15]
16-Jan-2019 [19]
12-Jan-2019 [8]
11-Jan-2019 [18]
10-Jan-2019 [18]
9-Jan-2019 [15]
8-Jan-2019 [12]
7-Jan-2019 [14]
5-Jan-2019 [8]
4-Jan-2019 [16]
3-Jan-2019 [13]
2-Jan-2019 [9]
December-2018
31-Dec-2018 [5]
29-Dec-2018 [12]
27-Dec-2018 [9]
26-Dec-2018 [11]
22-Dec-2018 [7]
21-Dec-2018 [15]
18-Dec-2018 [9]
17-Dec-2018 [11]
15-Dec-2018 [8]
14-Dec-2018 [13]
13-Dec-2018 [16]
12-Dec-2018 [15]
11-Dec-2018 [15]
10-Dec-2018 [17]
7-Dec-2018 [14]
6-Dec-2018 [14]
5-Dec-2018 [14]
4-Dec-2018 [14]
3-Dec-2018 [12]
1-Dec-2018 [8]
November-2018
30-Nov-2018 [13]
29-Nov-2018 [13]
28-Nov-2018 [14]
27-Nov-2018 [13]
26-Nov-2018 [13]
23-Nov-2018 [14]
22-Nov-2018 [11]
21-Nov-2018 [17]
20-Nov-2018 [13]
17-Nov-2018 [10]
16-Nov-2018 [13]
15-Nov-2018 [14]
14-Nov-2018 [16]
13-Nov-2018 [14]
12-Nov-2018 [13]
10-Nov-2018 [9]
8-Nov-2018 [13]
6-Nov-2018 [12]
5-Nov-2018 [12]
3-Nov-2018 [10]
2-Nov-2018 [12]
1-Nov-2018 [17]
October-2018
31-Oct-2018 [16]
29-Oct-2018 [14]
26-Oct-2018 [15]
25-Oct-2018 [11]
22-Oct-2018 [11]
20-Oct-2018 [11]
19-Oct-2018 [20]
17-Oct-2018 [17]
16-Oct-2018 [15]
15-Oct-2018 [15]
13-Oct-2018 [10]
12-Oct-2018 [15]
11-Oct-2018 [17]
10-Oct-2018 [14]
9-Oct-2018 [17]
6-Oct-2018 [10]
5-Oct-2018 [15]
4-Oct-2018 [14]
3-Oct-2018 [15]
1-Oct-2018 [13]
September-2018
29-Sep-2018 [10]
28-Sep-2018 [14]
27-Sep-2018 [18]
26-Sep-2018 [16]
25-Sep-2018 [20]
24-Sep-2018 [12]
22-Sep-2018 [4]
21-Sep-2018 [17]
20-Sep-2018 [15]
19-Sep-2018 [15]
18-Sep-2018 [15]
17-Sep-2018 [12]
15-Sep-2018 [11]
12-Sep-2018 [16]
11-Sep-2018 [15]
10-Sep-2018 [8]
7-Sep-2018 [13]
6-Sep-2018 [15]
5-Sep-2018 [10]
4-Sep-2018 [17]
3-Sep-2018 [11]
August-2018
30-Aug-2018 [14]
27-Aug-2018 [15]
24-Aug-2018 [11]
23-Aug-2018 [16]
22-Aug-2018 [15]
21-Aug-2018 [16]
20-Aug-2018 [12]
18-Aug-2018 [9]
17-Aug-2018 [17]
16-Aug-2018 [17]
14-Aug-2018 [20]
13-Aug-2018 [8]
11-Aug-2018 [9]
10-Aug-2018 [16]
9-Aug-2018 [18]
8-Aug-2018 [16]
7-Aug-2018 [13]
6-Aug-2018 [14]
4-Aug-2018 [9]
3-Aug-2018 [16]
2-Aug-2018 [18]
1-Aug-2018 [17]
July-2018
31-Jul-2018 [15]
30-Jul-2018 [11]
28-Jul-2018 [9]
27-Jul-2018 [12]
26-Jul-2018 [11]
25-Jul-2018 [13]
21-Jul-2018 [11]
19-Jul-2018 [9]
18-Jul-2018 [13]
17-Jul-2018 [13]
16-Jul-2018 [10]
14-Jul-2018 [6]
13-Jul-2018 [17]
12-Jul-2018 [13]
11-Jul-2018 [15]
10-Jul-2018 [18]
9-Jul-2018 [16]
6-Jul-2018 [16]
5-Jul-2018 [16]
4-Jul-2018 [16]
3-Jul-2018 [15]
June-2018
30-Jun-2018 [8]
29-Jun-2018 [17]
28-Jun-2018 [12]
27-Jun-2018 [19]
26-Jun-2018 [16]
25-Jun-2018 [15]
22-Jun-2018 [14]
21-Jun-2018 [16]
20-Jun-2018 [11]
19-Jun-2018 [11]
18-Jun-2018 [18]
16-Jun-2018 [7]
15-Jun-2018 [13]
14-Jun-2018 [18]
13-Jun-2018 [17]
12-Jun-2018 [11]
11-Jun-2018 [14]
8-Jun-2018 [15]
7-Jun-2018 [15]
6-Jun-2018 [15]
5-Jun-2018 [18]
4-Jun-2018 [11]
2-Jun-2018 [9]
1-Jun-2018 [16]
May-2018
31-May-2018 [19]
30-May-2018 [21]
29-May-2018 [18]
28-May-2018 [17]
26-May-2018 [10]
25-May-2018 [18]
24-May-2018 [21]
23-May-2018 [13]
22-May-2018 [10]
21-May-2018 [10]
19-May-2018 [17]
17-May-2018 [15]
16-May-2018 [12]
15-May-2018 [20]
14-May-2018 [14]
12-May-2018 [12]
10-May-2018 [18]
9-May-2018 [13]
8-May-2018 [18]
7-May-2018 [14]
4-May-2018 [14]
3-May-2018 [15]
2-May-2018 [21]
April-2018
30-Apr-2018 [11]
28-Apr-2018 [9]
27-Apr-2018 [15]
26-Apr-2018 [11]
25-Apr-2018 [17]
24-Apr-2018 [14]
23-Apr-2018 [12]
20-Apr-2018 [15]
18-Apr-2018 [14]
17-Apr-2018 [11]
16-Apr-2018 [12]
13-Apr-2018 [17]
12-Apr-2018 [15]
11-Apr-2018 [16]
10-Apr-2018 [18]
7-Apr-2018 [8]
6-Apr-2018 [14]
5-Apr-2018 [8]
4-Apr-2018 [15]
3-Apr-2018 [10]
2-Apr-2018 [17]
March-2018
31-Mar-2018 [9]
30-Mar-2018 [15]
29-Mar-2018 [13]
28-Mar-2018 [16]
27-Mar-2018 [14]
26-Mar-2018 [13]
24-Mar-2018 [7]
23-Mar-2018 [12]
22-Mar-2018 [13]
21-Mar-2018 [14]
20-Mar-2018 [11]
19-Mar-2018 [15]
16-Mar-2018 [12]
15-Mar-2018 [15]
14-Mar-2018 [2]
13-Mar-2018 [14]
12-Mar-2018 [11]
10-Mar-2018 [8]
9-Mar-2018 [15]
8-Mar-2018 [10]
7-Mar-2018 [14]
6-Mar-2018 [12]
5-Mar-2018 [15]
3-Mar-2018 [16]
1-Mar-2018 [17]
February-2018
28-Feb-2018 [16]
27-Feb-2018 [16]
24-Feb-2018 [8]
23-Feb-2018 [15]
22-Feb-2018 [13]
21-Feb-2018 [19]
19-Feb-2018 [12]
16-Feb-2018 [13]
15-Feb-2018 [18]
14-Feb-2018 [15]
13-Feb-2018 [18]
12-Feb-2018 [12]
10-Feb-2018 [8]
9-Feb-2018 [16]
8-Feb-2018 [15]
7-Feb-2018 [15]
6-Feb-2018 [15]
5-Feb-2018 [16]
3-Feb-2018 [9]
2-Feb-2018 [18]
1-Feb-2018 [14]
January-2018
31-Jan-2018 [15]
30-Jan-2018 [15]
29-Jan-2018 [17]
27-Jan-2018 [14]
25-Jan-2018 [20]
24-Jan-2018 [15]
23-Jan-2018 [18]
22-Jan-2018 [19]
19-Jan-2018 [18]
18-Jan-2018 [18]
17-Jan-2018 [14]
16-Jan-2018 [2]
15-Jan-2018 [12]
13-Jan-2018 [15]
12-Jan-2018 [17]
11-Jan-2018 [15]
10-Jan-2018 [17]
9-Jan-2018 [13]
8-Jan-2018 [15]
6-Jan-2018 [8]
5-Jan-2018 [14]
4-Jan-2018 [17]
3-Jan-2018 [13]
2-Jan-2018 [16]
December-2017
30-Dec-2017 [8]
29-Dec-2017 [16]
28-Dec-2017 [13]
27-Dec-2017 [15]
23-Dec-2017 [12]
22-Dec-2017 [12]
21-Dec-2017 [17]
20-Dec-2017 [17]
19-Dec-2017 [15]
18-Dec-2017 [17]
16-Dec-2017 [12]
15-Dec-2017 [14]
14-Dec-2017 [17]
13-Dec-2017 [18]
12-Dec-2017 [12]
11-Dec-2017 [15]
9-Dec-2017 [11]
8-Dec-2017 [15]
7-Dec-2017 [16]
6-Dec-2017 [16]
5-Dec-2017 [15]
4-Dec-2017 [16]
2-Dec-2017 [10]
1-Dec-2017 [15]
November-2017
30-Nov-2017 [15]
29-Nov-2017 [16]
28-Nov-2017 [18]
27-Nov-2017 [14]
25-Nov-2017 [6]
24-Nov-2017 [14]
23-Nov-2017 [15]
22-Nov-2017 [14]
21-Nov-2017 [15]
20-Nov-2017 [12]
18-Nov-2017 [9]
17-Nov-2017 [18]
16-Nov-2017 [19]
15-Nov-2017 [19]
14-Nov-2017 [16]
13-Nov-2017 [17]
11-Nov-2017 [11]
10-Nov-2017 [20]
9-Nov-2017 [7]
8-Nov-2017 [16]
7-Nov-2017 [16]
6-Nov-2017 [19]
4-Nov-2017 [19]
3-Nov-2017 [18]
1-Nov-2017 [13]
October-2017
31-Oct-2017 [15]
30-Oct-2017 [12]
28-Oct-2017 [14]
27-Oct-2017 [9]
26-Oct-2017 [10]
25-Oct-2017 [9]
24-Oct-2017 [9]
23-Oct-2017 [5]
18-Oct-2017 [3]
16-Oct-2017 [5]
13-Oct-2017 [1]
12-Oct-2017 [2]
11-Oct-2017 [1]
10-Oct-2017 [1]
9-Oct-2017 [2]
September-2017
22-Sep-2017 [1]
August-2017
11-Aug-2017 [1]
July-2017
27-Jul-2017 [1]
12-Jul-2017 [1]
10-Jul-2017 [1]
7-Jul-2017 [1]
3-Jul-2017 [1]
June-2017
30-Jun-2017 [1]
29-Jun-2017 [1]
23-Jun-2017 [1]
22-Jun-2017 [1]
21-Jun-2017 [1]
13-Jun-2017 [1]
May-2017
31-May-2017 [1]
29-May-2017 [1]
26-May-2017 [1]
25-May-2017 [1]
23-May-2017 [1]
22-May-2017 [2]
18-May-2017 [1]
16-May-2017 [1]
15-May-2017 [1]
12-May-2017 [1]
8-May-2017 [1]
4-May-2017 [1]
3-May-2017 [1]
2-May-2017 [1]
April-2017
28-Apr-2017 [1]
26-Apr-2017 [1]
25-Apr-2017 [1]
20-Apr-2017 [1]
18-Apr-2017 [1]
10-Apr-2017 [1]
7-Apr-2017 [1]
5-Apr-2017 [1]
3-Apr-2017 [1]
March-2017
31-Mar-2017 [1]
29-Mar-2017 [1]
27-Mar-2017 [1]
21-Mar-2017 [1]
17-Mar-2017 [1]
15-Mar-2017 [1]
8-Mar-2017 [1]
7-Mar-2017 [1]
6-Mar-2017 [1]
3-Mar-2017 [1]
2-Mar-2017 [1]
1-Mar-2017 [1]
February-2017
28-Feb-2017 [1]
27-Feb-2017 [1]
24-Feb-2017 [1]
23-Feb-2017 [1]
22-Feb-2017 [2]
20-Feb-2017 [1]
17-Feb-2017 [1]
16-Feb-2017 [1]
15-Feb-2017 [1]
13-Feb-2017 [1]
10-Feb-2017 [1]
9-Feb-2017 [1]
7-Feb-2017 [1]
6-Feb-2017 [1]
2-Feb-2017 [1]
1-Feb-2017 [2]
January-2017
30-Jan-2017 [1]
27-Jan-2017 [1]
25-Jan-2017 [2]
24-Jan-2017 [1]
23-Jan-2017 [1]
18-Jan-2017 [1]
16-Jan-2017 [1]
13-Jan-2017 [1]
12-Jan-2017 [1]
11-Jan-2017 [1]
10-Jan-2017 [1]
9-Jan-2017 [2]
6-Jan-2017 [2]
4-Jan-2017 [1]
3-Jan-2017 [1]
December-2016
30-Dec-2016 [1]
28-Dec-2016 [1]
27-Dec-2016 [1]
26-Dec-2016 [1]
22-Dec-2016 [1]
21-Dec-2016 [1]
20-Dec-2016 [1]
19-Dec-2016 [1]
15-Dec-2016 [1]
14-Dec-2016 [1]
13-Dec-2016 [1]
12-Dec-2016 [2]
9-Dec-2016 [1]
8-Dec-2016 [1]
7-Dec-2016 [1]
5-Dec-2016 [1]
2-Dec-2016 [1]
November-2016
30-Nov-2016 [1]
29-Nov-2016 [1]
28-Nov-2016 [1]
25-Nov-2016 [2]
24-Nov-2016 [2]
23-Nov-2016 [1]
22-Nov-2016 [1]
21-Nov-2016 [2]
18-Nov-2016 [1]
17-Nov-2016 [1]
16-Nov-2016 [1]
15-Nov-2016 [1]
14-Nov-2016 [1]
11-Nov-2016 [1]
10-Nov-2016 [1]
9-Nov-2016 [1]
8-Nov-2016 [1]
7-Nov-2016 [2]
3-Nov-2016 [1]
2-Nov-2016 [1]
October-2016
28-Oct-2016 [1]
27-Oct-2016 [1]
26-Oct-2016 [1]
25-Oct-2016 [1]
24-Oct-2016 [1]
20-Oct-2016 [1]
19-Oct-2016 [1]
17-Oct-2016 [1]
14-Oct-2016 [1]
13-Oct-2016 [1]
12-Oct-2016 [1]
10-Oct-2016 [1]
7-Oct-2016 [1]
6-Oct-2016 [1]
5-Oct-2016 [1]
4-Oct-2016 [2]
3-Oct-2016 [2]
September-2016
30-Sep-2016 [1]
29-Sep-2016 [1]
28-Sep-2016 [1]
27-Sep-2016 [1]
26-Sep-2016 [1]
23-Sep-2016 [1]
22-Sep-2016 [1]
21-Sep-2016 [1]
20-Sep-2016 [1]
16-Sep-2016 [1]
14-Sep-2016 [1]
9-Sep-2016 [2]
8-Sep-2016 [2]
7-Sep-2016 [2]
6-Sep-2016 [1]
2-Sep-2016 [1]
1-Sep-2016 [1]
August-2016
31-Aug-2016 [1]
30-Aug-2016 [1]
29-Aug-2016 [1]
26-Aug-2016 [2]
24-Aug-2016 [1]
23-Aug-2016 [1]
22-Aug-2016 [1]
19-Aug-2016 [2]
17-Aug-2016 [1]
16-Aug-2016 [2]
12-Aug-2016 [2]
11-Aug-2016 [3]
10-Aug-2016 [2]
9-Aug-2016 [1]
8-Aug-2016 [1]
2-Aug-2016 [2]
1-Aug-2016 [1]
July-2016
29-Jul-2016 [1]
28-Jul-2016 [1]
27-Jul-2016 [1]
26-Jul-2016 [1]
25-Jul-2016 [2]
22-Jul-2016 [2]
21-Jul-2016 [2]
20-Jul-2016 [3]
19-Jul-2016 [1]
18-Jul-2016 [1]
14-Jul-2016 [4]
13-Jul-2016 [2]
12-Jul-2016 [1]
11-Jul-2016 [2]
8-Jul-2016 [1]
7-Jul-2016 [1]
6-Jul-2016 [1]
5-Jul-2016 [1]
4-Jul-2016 [2]
1-Jul-2016 [1]
June-2016
30-Jun-2016 [1]
29-Jun-2016 [1]
28-Jun-2016 [1]
27-Jun-2016 [2]
23-Jun-2016 [1]
22-Jun-2016 [1]
21-Jun-2016 [2]
20-Jun-2016 [1]
16-Jun-2016 [1]
13-Jun-2016 [2]
10-Jun-2016 [2]
9-Jun-2016 [1]
8-Jun-2016 [2]
7-Jun-2016 [1]
6-Jun-2016 [1]
3-Jun-2016 [2]
2-Jun-2016 [2]
1-Jun-2016 [1]
May-2016
31-May-2016 [2]
30-May-2016 [2]
27-May-2016 [1]
26-May-2016 [2]
25-May-2016 [1]
24-May-2016 [2]
23-May-2016 [3]
20-May-2016 [2]
19-May-2016 [3]
18-May-2016 [2]
13-May-2016 [1]
12-May-2016 [2]
11-May-2016 [2]
10-May-2016 [2]
9-May-2016 [3]
6-May-2016 [2]
5-May-2016 [1]
April-2016
28-Apr-2016 [2]
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.: 3-Oct-2016 :.
Ukraine - Fines for Dirty Ballast Water


Further to our previous new article concerning the access rights of ecological inspectors to vessels fitted with segregated ballast tanks, we have been advised by Club correspondents Dias Marine Consulting PC, Odessa that the practice of ecological inspectors attempting to get on board vessels is still ongoing at ports in the Ukraine.

Ecological inspectors in Ukraine are no longer included in the list of official personnel required to board vessels in order to issue inward clearance. Additionally, under the new legislation which came into force on the 3 April 2015, they are no longer authorised to board vessels with segregated ballast tanks and demand to take samples of the ballast water.

Masters are advised to reject any attempts to board their vessel and invite the inspectors to return once a Club correspondent or local lawyer is in attendance.

Incidents continue to be reported where ecological inspectors have been permitted by vessel's Masters to take samples from the segregated ballast water tanks, leading to spurious fines being imposed on the grounds that the ballast water was allegedly contaminated. In one case the penalty levied was USD 18,500.

Recently a new tactic has been employed by inspectors in their efforts to circumvent the new legislation, when access to the ballast water tanks for sampling has been rightly denied by a vessel. The inspectors are reportedly sending letters to the Harbour Master making accusations of "unsatisfactory" test results following analysis of samples taken from the waters adjacent to the vessel. Based on this information the Harbour Authorities have ordered vessels to be shifted to another berth while the allegations are investigated. The costs associated with such actions are high, with the Harbour Authorities charging between USD 10, 000 and USD 20, 000 for performing the shifting operation, and stevedoring companies levying penalties of USD 1, 000 per hour for idle berth occupation.

If ecological inspectors claim that waters in the vicinity of a vessel with segregated ballast tanks are contaminated, or otherwise attempt to come onboard, the Master should always refuse access and contact the Club or the local correspondent for immediate assistance. Similarly, if the vessel is contacted by the Harbour Authorities about alleged "unsatisfactory" test results following analysis of samples taken from the waters adjacent to the vessel, then assistance should be sought at the earliest opportunity from the Club or local correspondent.
Source: West of England P&I Club

Posted On:3-Oct-2016

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Ocean Container Industry To Consolidate: Maersk Looks To Make Quick Acquisitions


A.P. Moeller-Maersk A/S's container altered its strategy this month by planning to expand its fleet through acquisition, breaking from its previous preference of building its own boats. Following from the bankruptcy of Hanjin Shipping last month, the market may see a rapid restructuring as the Danish shipper grabs an easy opportunity.

The recently announced splitting of its logistics and oil companies will allow the shipping entity to act with new freedoms to respond to short-term market changes.

Yesterday, the South Korean bankruptcy court that is handling the insolvency of Hanjin appeared to open the door to a quick acquisition.

"The sale of Hanjin is one of the options we’re considering. If we conclude that it’s the best way to rehabilitate the company, we'll do so," said Choi Ung-young, an adjudicating judge at Seoul Central District Court.

The fleet of the Korean company is certainly an attractive proposition. It operates 97 container ships, 69 of which are chartered and the remaining 60 are chartered. Crucially, it possesses five large vessels that can carry 13,000 containers.

Although Maersk Line, the shipping company of the Danish conglomerate, is already the world’s largest ocean-bound freighter, the acquisition would represent a major extension of its capacity.

Maersk's main rival in the acquisition is Hyundai Merchant Marine (HMM), another Korean shipper.

Given the family-own nature of the firms involved, there is a lot of nationalistic sentiment regarding the Korean flag-carrier. Many are calling for a government intervention to save Hanjin or to encourage the two to merge into a larger Korean powerhouse.

In another complication, Maersk is also musing with taking over HMM. HMM faces severe financial problems of its own. It is currently servicing a 5.2 trillion won ($6.2 billion) debt and has been unprofitable for many years. It also is a logical target for Maersk's drive to expand.

If The Danish carrier acquired both, it would take its global market share from 15% to 20%.

The shipping market has been struggling with over-capacity for some years. This has led to significant deflationary pressure upon carriers. For those that cannot innovate (Maersk, for instance, has pioneered 'slow steaming' initiatives to reduce fuel costs for customers willing to wait) or leverage scale will continue to face financial pressures.

The Procurement Leaders community is forecasting global prices to drop by -0.4% in 2017. We expect that given the persisting over-capacity, we may see further consolidation in the market going forward.

By acquiring more of its rivals, Maersk can control more of the world’s shipping lanes, capitalizing upon reduced supply competition and protecting itself from the over-capacity.
Source: Forbes

Posted On:3-Oct-2016

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