Overall confidence levels in the shipping industry rose to their highest level for two and a half years in the three months ended May 2013, according to our shipping confidence survey. The survey produced evidence of increased enthusiasm for new investment, although doubts persisted about the availability of bank finance. Fuelled by ongoing concern about a surfeit of tonnage on the market, freight rates in the dry bulk sector in particular were expected to come under more pressure over the next twelve months, although the outlook for the tanker markets looked more encouraging.

In May 2013, the average confidence level expressed by respondents in the markets in which they operate was 5.9 on a scale of 1 (low) to 10 (high), compared to the figure of 5.8 recorded in the previous survey in February 2013. This is the highest figure since the 6.0 recorded in November 2010. The survey was launched in May 2008 with a confidence rating of 6.8. The confidence rating for owners was unchanged at 5.7, while that for brokers was up from 5.6 to 5.9, the highest figure since November 2010. Confidence on the part of managers and charterers, however, was down to 6.0 and 5.5 respectively, from 6.2 and 6.0 in February 2013. Geographically, confidence in Asia was up (from 5.6 to 5.8), unchanged in Europe at 5.8, and down in North America from 6.1 to 6.0

A number of respondents felt that there were positive signs that a recovery was under way. One said, “The shipping market is dynamic in nature, and we are starting to see signs of exponential growth,” while another predicted with great confidence, “The shipping markets will continue growing over the next fifteen years!” Elsewhere the predictions were less expansive, ranging from, “The market will recover in 2014,” to, “Overall, we believe that 2013 will end up better than last year, and 2014 will show further improvement, even if some niche markets may not be able to maintain their current rate of growth.” Other respondents, meanwhile, continued to express concern about a surfeit of tonnage in the market. One said, “As soon as there is any hint of a sector with positive potential, owners run to the yards and start ordering” while another noted, “New orders need to be halted for two years in order to correct the over-supply situation.”

Elsewhere it was noted, “There are still too many owners ordering new vessels which will hit the water in the next two years. If we are to believe estimates that the world’s shipyards turned out five times as much tonnage in 2012 as they did in 2005, it is clear that the problems are far from being solved.” Another respondent commented, “Newbuildings from China continue to be delivered, and that will doubtless continue because the yards are major employers of local labour and huge consumers of indigenous steel and other raw materials.” And it was not just China which was referenced in this context, with one respondent pointing out, “There are competitive prices on offer for newbuilding orders, even from Japanese shipyards.” Another respondent predicted a continuing over-supply of tonnage in all sectors except those below 20,000 dwt, adding, “Too many larger ships continue to be ordered and delivered due to perceived low newbuilding costs, but these deals do not come close to making sense based on current market returns.”

Despite significant increases in scrapping levels in the past eighteen months, a number of respondents felt that much more still needed to be done. “The level of new ordering is alarming,” said one, “particularly as some reports suggest that rates of scrapping may now be slowing down again. At current levels the fleet will continue expanding into 2014 and 2015.” Another respondent said, “The industry faces significant increased costs in terms of meeting new regulations over the next few years and, given the lack of available

finance, this may accelerate the scrapping of older vessels, particularly those coming up for their fourth survey, but this is unlikely to be sufficient to get the industry out of the over-supply hole it finds itself in.”  

One respondent said,  “We are increasingly pessimistic about the ability of smaller, privately owned European-based shipowners to compete in the main non-niche markets due to lack of scale and financial muscle, as well as evidence of protectionist practices which render certain trades inaccessible.” Elsewhere it was noted, “We have some way to go before we can expect to see any improvement in freight rates, especially if a new wave of cheap, fuel-efficient ships is ordered for 2015 onwards.”

Regulatory demands featured in the responses from a number of respondents, with one commenting, “The increasing burden of regulation, and the desire on the part of Brussels to be more proactive in its control of what is a global business, is likely to lead a large number of marginal players exiting the market completely. Whether this will be sufficient to accelerate a return to a better supply/demand balance remains to be seen.” 

The cost and availability of bank finance was uppermost in the minds of a number of respondents. “If the banks do not improve their funding resources,” said one, “shipping will remain depressed for years to come.” Another commented, “The banks are not willing to invest in older ships.” This was a view echoed by the respondent who remarked, “We have looked at several secondhand ship purchase deals which appear to be good enough to replace older tonnage, but our main lending bank is still not willing to finance them, even with high un-mortgaged equity values within our business able to back the loans.” Elsewhere it was noted, “The banks are behaving illogically, and their lack of support frustrates the shipping industry.”

Generally speaking, respondents were more positive than for some time with regard to the state of global and national economies. One said, “The US economy is slowly starting to recover, which will impact positively on demand and on freight rates, plus the likelihood of interest rates remaining unchanged for a few more years will serve to stimulate the market.”

The likelihood of respondents making a major investment or significant development over the next twelve months was up marginally on the previous survey, on a scale of 1 to 10, from 5.5 to 5.6 – the highest level since the 5.7 recorded in February 2011. Owners (down two points to 5.7) were the only category of main respondent to show a fall-off in expectation in this regard. Both charterers and managers, meanwhile, recorded an increased expectation (each from 5.7 to 6.0) of making new investments over the coming year, a view shared also by brokers (up from 4.8 to 5.2).

The percentage of owners who assessed the likelihood of their making an investment at 7.0 out of 10.0 or higher was up by one percentage point to 45%, while the number of charterers who thought likewise was also up by the same margin, from 46% to 47%. Meanwhile, 45% of managers rated the likelihood of their making a new investment over the next twelve months at 7.0 out of 10.0, or higher.

Geographically, expectation levels of major investments were up in all the main geographical areas covered by the survey – in Asia, from 5.4 to 5.5, in Europe from 5.5 to 5.6 (their highest level since February 2011), and in North America from 4.9 to 5.9. One respondent noted, “Regulatory demands on shipping are such that the industry cannot cope with large investments in a financially tight market.  Trust in shipping in general is low, given the market sentiment.

Demand trends, competition and finance costs once again featured as the top three factors cited by respondents overall as those likely to influence performance most significantly over the coming twelve months. The overall numbers for demand trends were down one percentage point to 22%, static for competition at 20%, and unchanged also in the case of finance costs at 16%. Tonnage supply (down one percentage point to 12%) featured in fourth place, ahead of operating costs (up two percentage points to 11%), and fuel costs, which were one percentage point down on last time at 10%.

Demand trends remained the number one performance-affecting factor for owners, although down by one percentage point to 21%. Competition featured in second place at 18% (up from 15% last time), followed by finance costs, up one percentage point to 17%. Tonnage supply, having featured in second place in terms of owners’ priorities last time, was down by two percentage points to 16%. For managers, meanwhile, competition, although down from 20% to 18%, still featured in equal first place with demand trends (down one percentage point to 18%), followed by finance costs, down from 17% to 16%. For charterers, demand trends, while down by five percentage points to 24%, took over first place from competition, which was down from 31% to 17%. Finance costs featured in third place, with 16%.

Geographically, demand trends were the most significant factor for respondents in both Asia and Europe (up by three percentage points in Asia to 23% but down in Europe from 24% to 22%.) Competition and finance costs, in that order, made up the top three performance-affecting factors in both Asia and Europe. In North America, meanwhile, competition featured in first place (up eight percentage points to 28%), followed by demand trends, where there was a fall from 38% to 26%,  and operating costs, at 11%. Operating costs were referenced by a number of respondents. One said, “Owners who are in a position to control fuel costs by operating very efficient vessels, with highly skilled crews, will be at a clear advantage,” while another expected “further shortages of well-qualified and experienced crew, and an increase in their salary demands.”

There was a three percentage-point fall (from 40% to 37%) in the number of respondents overall who expected finance costs to increase over the next twelve months. This is the lowest figure in the life of the survey to date. The number of respondents expecting finance costs to come down, meanwhile, reached its highest figure (11%) since November 2010. Owners were the only main category to record a fall in the numbers of respondents expecting an increase in finance costs (down from 37% to 32%). The figure for charterers was unchanged at 50%, while for managers and brokers it was up 3 and 6 percentage points respectively, to 44% and 38%. The number of respondents in Asia anticipating an increase in finance costs was up by 2 percentage points to 40% compared to last time, but the corresponding figure for Europe was down from 39% to 32%. In North America, meanwhile, 52% of respondents thought that finance costs were likely to rise, compared to 42% previously.

While the majority of respondents bemoaned the lack of available, affordable finance, one respondent noted, “Shipowners appear to be resorting more frequently to bond financing, and it seems that these investors are looking through rose-tinted spectacles when it comes to assessing the future and are prepared to support owners in this respect.”

Turning to freight rates, it was the tanker markets this time which generated the most positive comments. The number of respondents overall who expressed an increased expectation of higher rates in the tanker sector over the next twelve months was up by two percentage points to 37% – just one percentage point below the figure recorded when the survey was launched in May 2008, but some way short of the survey high of 50% posted in May 2010. Owners (up five percentage points to 41%) led the way in terms of increased expectations of better rates, while charterers unsurprisingly set their sights much lower, at an unchanged 29%. The number of managers expecting improved rates was meanwhile down by one percentage point to 31%. Geographically, the prospects for increased tanker rates were deemed lower this time by respondents in Asia (down from 33% to 31%) and in North America (down by 23 percentage points to 24%), but higher in Europe, up from 36% to 40%.

In the dry bulk sector, meanwhile, there was a 10 percentage-point fall, from the highest figure in the life of the survey three months ago to 40% this time, in the overall numbers of those anticipating rate increases. All the indicators were down – in the case of owners from 50% to 43%, managers (52% to 36%), charterers (60% to 48%), and brokers (44% to 32%). It was the same story from a geographical perspective. In Asia, expectations of higher dry bulk rates fell from 52% to 33%, in Europe from 51% to 44%, and in North America from 65% to 35%. One respondent said, “The dry bulk market is in crisis and will remain so in the small-to-medium size sectors for at least two more years due to overbuilding.” Another noted, “The dry bulk market is structurally unhealthy due to the massive overbuilding of vessels.” Others were more optimistic however, with one claiming to be hopeful that dry bulk rates will soon improve due to an improved balance between supply and demand.

In the container ship market, there was an eight percentage-point fall, to 26%, in the overall numbers expecting rates to go up. Indeed, expectation levels in relation to rate increases were down across all categories of respondent, most notably in the case of brokers (by 25 percentage points to 19%). Meanwhile, 26% of owners (compared to 36% last time), 28% of managers (down 5 percentage points on last time), and 38% of charterers (down from 47% last time) expected container ship rates to rise in the next twelve months.

Geographically, expectations of improved container ship rates were unchanged in Asia at 24%, just one percentage point up on the numbers in that part of the world who are expecting container ship rates to go down over the next twelve months. The numbers anticipating higher rates were also down in Europe, from 38% to 29%. In North America, meanwhile, the 39% of respondents expecting container ships rates to fall over the coming year  was more than double the number (17%) who though they would increase.
One respondent said, “In the container ship sector, the long-haul market sentiment is very bleak, with continued deliveries of mega tonnage and ongoing weak demand in the main western trades.” Another claimed, “The container ship fleet will grow by eleven per cent this year. Everybody seems to think that ever bigger ships are beautiful.”

Shipping partner, Richard Greiner, says, “For the third successive quarter, we have seen a small increase in confidence. This encourages the belief that we are witnessing the start of a sustainable recovery, although some difficult issues remain to be resolved.

“Despite increased scrapping, it is clear that there are still too many ships on the market. For as long as that situation persists, the freight markets will struggle to bounce back. Although the tanker market is looking healthier than it has for some time, the dry bulk trades in particular seem to be suffering from an over-supply of tonnage.

“Owners’ appetite for new vessels has not, it seems, been terminally affected by five very difficult years for the shipping industry. Some reports suggest that current newbuilding business is almost one thousand per cent up on last year, with Greek owners alone having reportedly ordered almost twice as many ships in the first four months of 2013 as they did in the corresponding period last year. This is not a complete surprise.

Our survey revealed evidence of an increased enthusiasm for investment, and the history of shipping confirms that it is an industry which is not reluctant to spend money.

“Increased newbuilding activity is also somewhat inevitable, not least because of the strong state support which governments in the Far East are providing to their strategically important shipbuilding industries. Neither is it a bad thing. Every industry needs new investment to survive, and if that is coupled with regulatory and environmental compliance – for example, in the shape of eco-friendly ships – then so much the better.

“If pulling the plug on newbuilding activity is not the way to resolve shipping’s problems, the answer must lie with addressing the issues which seem to militate against solutions built on new investment. We need more scrapping, for example, and fewer proposals such as the one currently before the European Parliament to ban the beaching of vessels for demolition. We need a more innovative approach to securing finance, embracing everything from bond financing to leasing, as well as the ability to convince potential investors of the credibility of business plans. We need a more concerted focus on risk management, which is not as well developed in shipping as it is in many other industries. And we need early identification of the need for restructuring, and awareness of the options available in that connection.

“Shipping is in reasonably good shape, given the problems it is facing. Indeed, it is difficult to think of another industry which is so capital-intensive in nature, so reliant on skilled personnel, and so heavily impacted by competition, politics, risk, protectionism, and regulation, yet able to remain optimistic in the teeth of a global financial downturn. Three months is a long time in shipping, but it is to be hoped that our next survey will complete a full twelve months of improving confidence. Shipping is an industry in which long-term investments have tended to bring long-term rewards. As such, it is worthy of a long-term outlook.” 

Source: Moore Stephens

It turns out most of Korea's overseas funds tucked away in so-called tax havens are used by companies in the shipping industry and are not necessarily set up to evade taxes.

Local management evaluation company CEO Score says 80-percent of the 280 branches found to have funds in tax havens were either in shipping finance or shipping transportation, or were otherwise holdings companies or investment firms.

Over 85 percent of the funds are based in Panama a country that is on the 'White List' of transparent tax regimes.

This means Panama has met international standards on the exchange of tax information.

Shipping companies, like STX or Hanjin Shipping, need to set up a so-called Special Purpose Company to acquire or operate a vessel.

Source: Arirang

The Oslo 2013 Maritime Summit, coordinated by the Norwegian Government and attended by Ministers and senior officials from Greece, Japan, Norway, Russia, Singapore, United States and the European Commission, underlined the need for government and industry cooperation in order to take advantage of the opportunities presented by the Arctic in a way that reconciles the need for both environmental and economic sustainability.

ICS Chairman, Masamichi Morooka, explained: "ICS was keen to stress the importance of Arctic nations avoiding unilateral measures that might cut across IMO Conventions or the provisions of the United Nations Convention on the Law of the Sea."

He stressed the immediate priority for ICS was to continue to work within IMO to assist in the completion and adoption by governments of the IMO Polar Code, which is expected to become mandatory via amendments to the SOLAS and MARPOL Conventions in 2014.

"ICS believes that the development of the Polar Code needs to be risk-based, so that requirements imposed on ships take full account of the hazards relevant to the type of ship operation, the ship location and the season of operation," said Mr Morooka.

ICS members also set out a number of further principles regarding the future governance of Arctic waters.  These included the need for Arctic coastal states to avoid imposing discriminatory treatment that might prejudice the rights of ships registered with non-Arctic nations, as well as the importance of appropriate fees for services.

ICS also called for clarity regarding the legal status of Arctic waters. "As remote Arctic sea routes become accessible these once academic issues are becoming increasingly important," said Mr Morooka.

ICS argues that the UNCLOS regime of 'transit passage' for straits used in international navigation takes precedence over the rights of coastal states to enact unilateral measures against international shipping.

The Summit concluded by emphasising the importance of governments and shipowners, as represented by ICS, co-operating to ensure that the draft IMO Polar Code is adopted and implemented as soon as possible.

Source: ICS

COSCO's presence at the port of Piraeus is a successful example of cooperation between Greece and China which can encourage further bilateral collaboration, Greek President Karolos Papoulias said during a visit to the Chinese company's Piraeus Container Terminal (PCT) in Athens.

"We hope that this successful example of collaboration between Greece and China will encourage more Chinese to come to Greece," he told Xinhua after a tour at the container terminal site, where the largest container cranes worldwide are in operation.

Papoulias expressed confidence that with COSCO's case of success and following Greek Prime Minister Antonis Samaras' official visit to China two weeks ago, more Chinese companies will come to invest in Greece.

In statements to Greek news agency AMNA, Greek Shipping Minister Costis Moussouroulis who accompanied the president on the visit, noted that the company's new investment projects "verify the strategic position the port of Piraeus holds in the global sea transport system".

PCT launched operations at Pier II at Piraeus port in 2009 with a plan to turn it into the leading container terminal in Greece and the Mediterranean region.

Source: China Daily

Dry bulk shipping demand is highly dependent on the global economy. One great tool that money managers and policymakers rely on to assess short to medium-term economic outlook is the composite leading indicator published by the OECD (Organization for Economic Co-operation and Development).

The components of the composite leading indicators differ from one country another, but common factors include manufacturing inventory orders, financial markets and business confidence surveys. Rising figures suggest higher economic growth, which is positive for dry bulk shipping, whereas falling figures point to lower growth, which is a negative.

Rising leading indicators
The latest data shows that leading indicators continued to rise for the Euro area, the five major developed Asian countries (Japan, China, Indonesia, India and Korea), and the United States in April, suggesting the global economy will continue to recover in 2013. According to the institution, the magnitude of change does not translate to the strength of weakness in economic growth, because of how the index was constructed. Thus, it is best used as an indicator of whether economic activity will be better or worse in the medium-term.

In the past, leading indicators have done fairly well in predicting the start of economic recession and recoveries. Leading indicators for the Euro area and the five major Asian countries have all bottomed during the second half of last year as policymakers loosened monetary policy and some announced stimulus programs to support economic activity. Although economic fundamentals remain weak due to Europe’s austerity measures and China’s tightening of property market, which has had people worried from time to time, OECD’s leading indicator suggests economic activity should continue to recover throughout 2013.

Dry bulk demand
As the global economy recovers, shipping companies, such as DryShips Inc. (DRYS), Diana Shipping Inc. (DSX), Navios Maritime Partners LP (NMM) and Safe Bulkers Inc. (SB), should benefit from higher demand for key dry bulk materials, such as iron ore and coal. Given that policymakers have room to lower interest rate to incentivize people or businesses to borrow more or spend more, leading indicators should continue to rise in the short to medium-term. The Guggenheim Shipping ETF (SEA), which invests in global shipping companies that transport dry bulk raw materials, oil, and other industrial products, should also benefit from higher demand this year.

Source: Market Realist

The Norwegian government said Thursday it gave its consent to energy explorers to start drilling activity in the North Sea.The Norwegian Petroleum Safety Authority said it gave German company RWE-Dea consent to start drilling offshore in shallow waters. Drilling is expected to start at some point this month and last about 92 days, depending on whether the company makes a discovery.

Swedish energy company Lundin Petroleum secured similar concessions for a 13-month drilling program offshore Norway, the agency said.

Lundin said this month that new developments offshore Norway through 2015 will help push production to 70,000 barrels of oil equivalent per day, twice the current rate.

Norway is a European leader in terms of oil and natural gas production. Lundin said it finished drilling a well in the Brynhild field in the shallow waters off the Norwegian coast in the North Sea.

"The well encountered no hydrocarbons and is being plugged and abandoned as a dry hole," the company said in a statement.

After a street-beating profitable first quarter, analysts say that AP Moller-Maersk will likely to cut its full-year outlook because of a 41 per cent fall in freight rates since April, Reuters reports.According to the Shanghai Shipping Exchange, Asia-Europe rates have fallen from US$1,140 per TEU to $668 in less than two months.

Maersk Line has insisted that will more than double that rate from on its main Asia-Europe route, but analysts doubt customers will pay.

"If they do not succeed we are expecting a downgrade of the full-year outlook in connection with the second-quarter earnings report," said Denmark's Alm [asset and liability management] Brand Markets equity analyst Jesper Christensen said.

Maersk Line, whose vessels make up 15 per cent of world container shipping capacity, is to report second-quarter earnings in August.

The company was not immediately available to comment on whether it would lower its guidance.

"If current rates stay on this level for the rest of this year, there is no doubt they will have trouble reaching the full-year guidance," said Nykredit Markets equity analyst Ricky Rasmussen.

The Italian Ministry of Infrastructure and Transport (MIT) released the long awaited English translation of its report on the safety technical investigation into the marine casualty on January 13, 2012 involving the cruise ship Costa Concordia.

The ship capsized as a result of large-scale internal flooding from a 53-meter long breach of its hull involving five watertight compartments. The breach occurred when the ship allided at a speed of 16 knots with the Scole Rocks off Giglio Island in the Tyrrhenian Sea at 21 45 07 local time.

The main cause of the casualty is attributed to "the Master's unconventional behavior". The incident resulted in the death of 32 persons and the injury of 157 others, as well as the loss of the ship and significant environmental damage.

Initial findings of the report include the following:

• Poor route planning and navigation direction;
• BTW management shortcomings;
• Poor management of emergency evacuation procedures;
• EDG functionality Criticalities

Actions to be taken as reported include the following :

• More detailed passengers info;
• Voyage plan requested by Solas R V/34 should be made available by the Master to the Company prior ship's departure;
• Instructions to passengers to be implemented;
• Muster of passengers to be performed in each port for embarking passengers;
• Company Audit follow up as a consequence of the casualty;
• Amending procedures (Emergency instructions / Decision support system for Master);
• Creation of a new Maritime Development & Company Dept by the Company;
• Implementation of "High Tech Safety Monitoring System";
• Dedicated Fleet Operations Centre in Genoa;
• Deck Officers training implementation.

 

Finally the report indicates that there are the following findings affecting international regulations :

1. Double-skin for protecting the WTCs containing equipment vital for the propulsion and electrical production;
2. Limiting of the down flooding points on the bulkhead deck;
3. Provision of a computerized stability support for the master in case of flooding;
4. Interface between the flooding detection and monitoring system and the on board stability computer;
5. Discontinuity between compartments containing ship's essential systems;
6. More detailed criteria for the distribution, along the length of the ship, of bilge pumps and requirement for the availability of at least one pump having the capacity to drain huge quantities of water;
7. Relocation of the main switchboard rooms above the bulkhead;
8. Relocation of the UHF radio switchboard above the bulkhead deck;
9. Increasing the emergency generator capacity to feed also the high capacity pump(s);
10. Provision of a second emergency diesel generator located in another main vertical zone in respect to the first emergency generator and above the most continuous deck;
11. Provision of an emergency light (both by UPS and emergency generator) in all cabins in order to directly highlight the life jacket location;
12. Bridge management, considering aspects such as the definition of a more flexible use of the resources;
13. Bridge Team Management course for certifications renewal should be mandatory by the 1st January 2015;
14. Principles of Minimum Safe Manning (resolution A.1047(27) as amended by resolution A.955(23)) that should be updated to better suit to large passenger ships;
15. Muster list, showing the proper certification/documentary evidence necessary for crew members having safety tasks;
16. Inclusion of the inclinometer measurements in the VDR;
17. SAR patrol boat supplied with fix fenders, blocked in the upper side of the hull, to approach safe other ships/boats in case of extraordinary evacuation of persons. This should be able to load at list 100 passengers in their deck;
18. Divers speleologist, able to rescue, even in dark condition, persons standing into the ravines of ships/wrecks.

You can download here the full report

Gas carriers cornered the largest chunk of global shipping investment last year since 2005, just as the profits to be made from shipping liquefied natural gas are falling to their lowest in almost two years.According to Clarkson, the world's largest shipbroker, ship owners spent US$9.1 billion on orders for vessels to haul liquefied natural gas (LNG) and liquefied petroleum gases, equal to 10 per cent of total cash spent on building ships last year. And in the first four months of this year, $3.3bn was invested in gas ships out of $21.9bn in total, the report stated.

The figures come as daily earnings for gas carriers fell 6.3 per cent last week to $89,000, the lowest since June 2011, according to data from Fearnley LNG, the Oslo-based shipbrokers. Rates have fallen 41 per cent since a high of $150,000 last June, Fearnley reported.

LNG carrier rates reached a record last year as Japan, the biggest LNG importer, accelerated buying to compensate for its nuclear power plants closing after the Fukushima disaster in April 2011. All but two of its 50 plants remain shut down.

The profitability of LNG tankers had been in contrast with most of the rest of the shipping industry, which is enduring a glut after owners ordered too many vessels when cargo rates generally surged in 2007 and 2008.

The Baltic Dry Index, a measure of the cost of hauling coal and iron ore, plunged 60 per cent last year and the Baltic Dirty Tanker Index, reflecting rates for ships carrying oil, tumbled 18 per cent.

The current slump in LNG rates has been caused by cuts in production, particularly in Africa.

Nigerian production cuts have freed 10 vessels, Egypt is reducing cargoes to eight this year from 70, and maintenance in Norway gasfields will remove 70 more cargoes this year, according to Herman Hildan, an Oslo-based analyst at the investment-banking unit of Norway's largest shipbroker, RS Platou Markets.

A new facility in Angola expected to supply as many as 90 cargoes a year is delayed, with the seven vessels dedicated to the project adding to competition for spot cargoes.

"Low cargo availability is dampening the spot market currently," Mr Hildan said. "For spot market LNG rates to strengthen we believe the key is normalisation of Nigerian production by mid-March as some industry sources expect and successful start-up in Angola during the summer."

Owners will probably hold off ordering more ships for now because about 40 per cent of those already scheduled to be built at yards lack charters, Clarkson says. That means there is no certainty they will secure business once they are completed.

Source: The National

Greek Shipping Minister Kostis Moussouroulis said on Saturday that Greek shipowners have recently signed contracts to buy 142 new ships from Chinese shipbuilding companies.The orders, which were signed in April, accounted for more than 60 percent of the recent global orders of Greek shipowners, said the Greek official.

The shipping industry, including shipbuilding, is one of the most important sectors for economic and trade cooperation between the two countries.In the next decade, China will remain an important global exporter and become an increasingly important importer, according to the minister.

The new orders are the investment of Greek shipowners for the future, said Moussouroulis.

Wang Qi, general manager of Shanghai Waigaoqiao Shipbuilding Co.,Ltd, said Greece has become an important client of China's shipbuilding enterprises.

As one of China's major shipbuilding companies, Shanghai Waigaoqiao Shipbuilding Co.,Ltd has built a total of 67 ships for Greek shipowners in recent years, accounting for about 30 percent of the company's output, Wang said.

Greek Prime Minister Antonis Samaras is on an official visit to China from Wednesday to Sunday. Leaders of the two countries have vowed to boost cooperation.

Source: Xinhua