Shipping recovery benefits professionals

In the global shipping market the first half of 2021 has seen a remarkable revival although one of the main sectors remained subdued, writes the London and South East Branch Committee, Institute of Chartered Shipbrokers. A weak tanker sector contrasted with strong rebounds in the container and bulk carrier markets, which resulted in a pattern of improved freight rates and profitability.

This change in the shipping industry’s fortunes, welcomed by many professionals, reflected several influences. Probably the most visible contribution was seaborne trade’s revival from the worst effects of the coronavirus pandemic. Global cargo movements picked up more rapidly than many expectations. Higher movements were particularly notable in container services.

Another factor also contributed: moderating growth in the world fleet of merchant ships. Combined with the trade expansion, this enable the basic balance between demand for, and supply of shipping capacity to become tighter. Several other changes assisted, boosting market rates. Many observers see prospects for some of the recent pattern of events to continue into next year and perhaps beyond.

World seaborne trade volume could grow by 3–5% in 2021 according to predictions by a number of analysts, after the severe downturn seen last year when the economic recession caused by the pandemic reduced import demand for cargoes. Moreover disruptive influences in some trades, such as greater port congestion, have a positive effect on the market balance. Meanwhile, estimates suggest that growth in the deadweight capacity of the world merchant ship fleet may not exceed 3% this year.

Improvements in trends and expectations have been notably reflected in the sale and purchase market. Provisional figures indicate that the tonnage of second hand ships changing hands in the first half of 2021 may have been an all-time record high, while vessel values rose. Rising container ship and bulk carrier prices were especially prominent.

ADVANTAGES FOR INSTITUTE MEMBERS Many professionals employed in shipping can expect to benefit from a buoyant market. Members of the Institute of Chartered Shipbrokers will be in a strong position to take advantage of career opportunities becoming available.

The Institute of Chartered Shipbrokers is the professional body for all those involved in commercial shipping worldwide. Its qualification has a well-deserved reputation, confirming a high standard of maritime knowledge, competence and integrity. This combination of qualities proves valuable to employers at any stage of the shipping market cycle.

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SOME THINK SHIP LOADING CANNOT BE CUSTOMISED. WE THINK DIFFERENT.

Damen has received an order for a Transshipment Crane Barge from the Australian company Transhipment Services Australia (TSA). As it is able to supply the new Crane Barge 6324 directly from stock, Damen will fulfil the order in a period of only four weeks.

TSA has been contracted by Metro Mining to provide transshipment services for its Bauxite Hills Project located along the Skardon River on Cape York Peninsula, north of Weipa in Far North Queensland. With a presence in three sites across Australia, TSA will operate the Damen Floating Crane Barge and has a fleet of five tugs and six dumb barges that have been successfully transshipping for Metro for four years.

The company has also operated Damen tugs and Shoalbusters in the past.

Sjoerd de Bruin, Damen Sales Manager Asia Pacific, responsible for Australia, New Zealand and the South Pacific, comments: “We are delighted that we could make this happen and very quickly, in just four weeks from the initial client enquiry to delivery into Australia. Not only are we partly customizing the barge during this time, we have also arranged the finance through our Customer Finance Department.”

CUSTOMER FINANCE De Bruin explains: “Damen was keen to make every effort to support TSA. If we had gone to the external financing options the lead time could take up to sixteen weeks given the summer holiday period, therefore our Customer Finance Department stepped in.

“All the different Damen departments worked together to support our client –Design & Proposal, Finance, Legal and all of our colleagues in Yichang, China. And given the financial arrangements, our Board also had to approve the deal. It is an impressive team effort.”

Joint owner of TSA, Darren Hedley stated that Damen is renowned worldwide for its quality marine fleet, reliable floating cranes and professional service. “Our previous experience with Damen vessels has always been rewarding and we are all very excited to welcome this new vessel into the fleet and to commence loading Capesize ships in October of this year.”

At 63 x 24 metres, the Damen Crane Barge is equipped with a grab with a 15 cubic metre capacity and TSA is expecting to load at an impressive rate of 16,000 to 20,000 tonnes per day.

BRISBANE SERVICES HUB Once the client- and class requirements are completed, the new Crane Barge will be transported from Shanghai to Australia by an oceangoing tug by one of TSA’s contractors. Damen is also offering an extended warranty to TSA and support from the Damen Brisbane Service Hub. On the day of the vessel’s arrival, a Service Engineer will be present and support TSA with all the documentation and paperwork, carry out the technical handover and provide maintenance training.

TSA’s new Damen Crane Barge 6324 is expected to be operational in Q4 2021.

Metro Mining Limited has earmarked an expansion strategy to ultimately achieve an annual production of six million tonnes. A key element of this was for Metro to have the capability to load Capesize vessels. Converting to larger Capesize vessels will reduce the unit freight rates.

DAMEN SHIPYARDS GROUP – OCEANS OF POSSIBILITIES Damen Shipyards Group has been in operation for over 90 years and offers maritime solutions worldwide, through design, construction, conversion and repair of ships and ship components. By integrating systems, Damen creates innovative, high-quality platforms, which provide its customers with maximum added value.

The company’s core values are fellowship, craftsmanship, entrepreneurship and stewardship. Its goal is to become the world’s most sustainable shipbuilder, via digitalization, standardization and serial construction of its vessels.

Damen operates 35 shipyards and 20 other companies in 20 countries, supported by a worldwide sales and service network. Damen Shipyards Group offers direct employment to more than 12,000 people.