Thursday, April 27
2000
Income
up at Teekay
Teekay Shipping Corporation yesterday reported net income of
$19.9 million, for the quarter ended March 31, 2000, compared
to $1.9 million for the quarter ended March 31, 1999. Results
for the current quarter included a loss of $1.0 million, or 3
cents per share, on the sale of two of the company's oldest vessels.
Net voyage revenues for the quarter were $120.1 million, compared
to $70.0 million recorded in the same period last year, while
income from vessel operations increased to $37.8 million, from
$10.6 million. The results for the current quarter reflect an
improvement in tanker charter rates and an increase in fleet
size as a result of the acquisition of Bona Shipholding Ltd.
on June 11, 1999.
Teekay says it benefited from a significant
increase in Aframax charter rates during the past three months
as tanker demand increased, while tanker supply declined slightly.
The International Energy Agency estimated
that global crude oil consumption, an indicator of tanker demand,
averaged 76.2 million barrels per day, down 0.1% from the quarter
ended March 31, 1999 but is forecasting that oil consumption
during the remainder of 2000 will be 2.8% higher than in the
corresponding period in 1999.
Teekay notes that the size of the world
tanker and OBOfleet declined to 301.2 million deadweight tonnes
(``mdwt'') at the end of the quarter, down 0.2% from last quarter,
as the pace of scrapping exceeded newbuilding deliveries. Deliveries
of tanker newbuildings during the quarter totalled 5.6 mdwt,
down from 5.7 mdwt in the previous quarter, while scrapping totalled
6.5 mdwt despite a strong tanker market, compared to 7.0 mdwt
scrapped in the previous quarter.
The world tanker and OBO orderbook measured
39.5 mdwt at March 31, 2000, representing 13.1% of the total
world tanker and OBO fleet. The Aframax tanker orderbook declined
from 37 vessels last quarter to 36 vessels as of March 31, 2000,
or from 5.9% to 5.8% of the world Aframax fleet (including OBOs).
The following is a summary of the Teekay
fleet as of this date:
Type Number Dwt
Double-hull or double-sided
Aframaxes (1): 38 3,765,600
Single-hull Aframaxes: 18 1,828,300
Ore/Bulk/Oil Carriers (2): 8 625,900
Time-chartered-in Aframaxes: 5 514,000
Other size tankers (3): 5 670,200
Total: 74 7,404,000
(1) Includes one 50%-owned Aframax tanker.
(2) Includes one 67%-owned OBO carrier & one 52%-owned OBO carrier.
(3) Includes two 50%-owned Suezmax tankers.
Sulzer RTA96C past the 50 mark
Wärtsilä NSD Corporation reports that orders for Sulzer
RTA96C two-stroke engines, the most powerful engines in its marine
engine program, have reached 51 engines of 4,026.330 bhp (2,960
MW), making them popular choices among the world's leading containership
owners and shipyards. The engines are all for fast post-Panamax
containerships of up to 6.800 TEU capacity.
As industry experts predict that the trend
towards larger containerships will continue, Wärtsilä
NSD is in close contact with leading operators as well as shipyards
and engine builders in Asia and Europe discussing the propulsion
requirements for the next steps in these ever larger container
ships. Case studies are being developed for ships with capacities
of 10,000 TEU (Suezmax) and 15,000 TEU (Malaccamax). Apart from
the traditional single-engine arrangement (including alternatives
possibly with 13- and 14-cylinder RTA96C engines), alternative
propulsion concepts with twin two-stroke engines, direct- and
podded-drive combinations, and diesel-electric drives are being
evaluated in detail.
Meantime, the most recent orders added
seven 9RTA96C and five 12RTA96C engines to the orderbook. The
nine-cylinder engines are for Reederei Claus-Peter Offen's recent
order of 4.700 TEU container vessels at Samsung Heavy Industries
Co Ltd, while the twelve-cylinder engines will power a series
of five 6200 TEU post-Panamax container ships contracted by NYK
Line also at Samsung. The 9RTA96C has an output of 67,230 bhp
(49 410 kW), while the 12RTA96C engine gives 89,640 bhp (65 880
kW) at 100 rev/min. All RTA96C engines are built under licence
by Wärtsilä NSD's largest licensees: Diesel United
Ltd (Japan), Hyundai Heavy Industries Co Ltd (South Korea), and
HSD Engine Co Ltd (South Korea).
The Sulzer RTA96C engines in service and
on order now comprise:
- Eight 12RTA96C for P&O Nedlloyd
- Four 12RTA96C for undisclosed owners
- Five 12RTA96C for NYK Line
- Two 11RTA96C for NYK Line
- Two 10RTA96C for Hanjin Shipping
- Nine 10RTA96C for NSB/Conti
- Five 10RTA96C for P&O Nedlloyd
- Seven 10RTA96C for Yangming Marine
- Two 10RTA96C for Costamare
- Seven 9RTA96C for C.P. Offen
- Totals: 51 engines 4 026 330 bhp (2960
MW)
While the majority of the engines are to be installed in Korean-built
ships (from Hyundai, Hanjin and Samsung), the first six RTA96C
engines in service are propellingJapanese-built vessels and some
of the engines are or will be driving European-built containerships.
There are already eleven RTA96C engines
in service with aggregate running time totaling some 100 000
hours. The first RTA96C, an 11-cylinder engine, went into service
in October 1997 and has since accumulated almost 16,000 running
hours. The most powerful engines in operation are the four 12RTA96C
engines each of 89.640 bhp (65 880 kW) which entered service
from June 1998
onwards in the "P&O Nedlloyd Southampton" class
of 6,690 TEU containerships.
Wärtsilä NSD concedes that 'there
were some initial shortcomings on the first eight engines,"
but says these problems have now been overcome and the service
experience of the RTA96C is today to the satisfaction of shipowners
and engine builders.
European
Commission renews block exemption allowingconsortium agreements
in shipping
The European Commission has renewed for a period of five years
a block exemption allowing shipping companies to enter into consortium
agreements covering the maritime transport of cargo. The block
exemption regulation, which was adopted in 1995, automatically
covers liner shipping consortia which have a market share of
below 30 percent.
The Commission notes that "it is common
for shipping companies to conclude consortia agreements with
a view to provide a joint liner shipping service through the
coordination of sailing timetables, the exchange and sale of
space on vessels and the pooling of vessels and port facilities."
In 1995 the Commission adopted a block
exemption Regulation covering such consortium agreements. Acting
on a proposal from Mario Monti, Commissioner for Competition,
the Commission has now adopted a Regulation renewing the block
exemption for a further period of five years, "confirming
its favorable attitude towards liner shipping consortia."
The Commission says that consortia agreements
usually allow shipping lines to rationalize their activities
and achieve economies of scale, thus improving the productivity
and quality of liner shipping services. Provided consortia are
faced with sufficient competition, those advantages benefit exporting
firms, the customers of shipping lines. "The block exemption
therefore only automatically covers consortia which have a market
share of below 30% or 35% on any market on which they operate,
depending on whether they are inside or outside a so-called liner
conference."
A consortium that exceeds the market share
limits would not necessarily be unlawful, but would have to be
examined for compatibility with the competition rules on an individual
basis.
The block exemption forbids price-fixing.
It covers, however, both consortia operating within a liner conference
and consortia operating outside such conferences. Under a separate
block exemption, members of a liner conference may fix maritime
transport rates provided that they fulfil certain conditions
and meet certain obligations.
The consortium block exemption applies
only to consortia providing international liner shipping services
to or from one or more Community ports. The service must be exclusively
for the carriage of cargo; the exemption does not cover the transport
of passengers.
Navy
contract for NORSHIPCO
Norfolk Shipbuilding and Drydock Corp., Norfolk, Va., is being
awarded a $9,760,302 fixed-price contract for a phased maintenance
fixed price availability of the USS Whidbey Island (LSD 41) under
job order 0120. Work includes miscellaneous structural, electrical
and mechanical repairs and ship alterations. Work will be performed
in Norfolk, Va., and is expected to be complete by September
2000. Contract funds in the amount of $8,190,257 will expire
at the end of the current fiscal year. This contract was competitively
procured via the Internet, with seven proposals solicited and
four offers received. The Supervisor of Shipbuilding, Conversion
and Repair, USN, Portsmouth, Va., is the contracting activity
(N00024-92-H-8637).
RFP: Full-Scale design studies of ballast
water
treatment systems
The Great Lakes Ballast Technology Demonstration Project seeks
the assistance of the marine industry in designing cost-effective,
operationally sound and biologically effective ballast water
treatment solutions. To this end, the Project is offering funds
for six-month full-scale design studies by teams of ship owners/naval
architects and treatment vendors of promising ballast water treatment
systems. Designs for installation in both new and existing ships
are of interest. The RFP can be obtained by internet at www.nemw.org
and click on biological pollution, or contacting Allegra Cangelosi
at acangelo@nemw.org or At 202 544-5200.
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