MarketLine Blog

Posts tagged to Shipping

Melting ice opens up Arctic shipping route for longer periods

MarketLine

As the melting of ice in the Arctic region intensifies due to increased human activity in the Arctic region, the possibility of using the region for marine transportation purposes also increases. Whereas in the past vessels would have to be escorted by heavy ice breakers, the complete disappearance of or reduction in size of ice has resulted in customized transportation vessels that can also act as moderate ice breakers to emerge. These customized vessels require no escort and have been able to cover vast distances in the Arctic region in… Read more

2M Alliance: Hyundai Merchant Marine deal is not a long-term solution

MarketLine

The agreement with the 2M Alliance marks an important step for Hyundai Merchant Marine. Despite the deal not meeting creditor demands, Hyundai M.M will have access to better business conditions than is possible under the soon to be defunct G6 alliance. Full membership, once the present agreement expires, has not been ruled out. Were the financial health of Hyundai to recover sufficiently the risk which deterred 2M customers would lesson, providing full access. The deal is not perfect and does not meet the memorandum of understanding signed earlier in the… Read more

No restructuring plan can save Hanjin

MarketLine

At the present time the primary difficulty with the ship freight industry is one of oversupply, and the gulf between capacity and demand is growing still further. Market conditions are reigning in even the most competitive companies: Maersk, the Danish conglomerate and a leading company in the sector, is cutting jobs and has cancelled an order for six of the huge Triple-E super tankers. In such an environment, Hanjin cannot hope to survive – the demand simply does not exist for such a company anymore. No matter the quality of… Read more

International Trade: Where do the ships sent to unsafe breaking yards come from?

MarketLine

The beaches of Alang in India and Gadani in Pakistan are major worldwide centres of the ship breaking industry. Together with Chittagong in Bangladesh, these breaking yards are also notorious for poor working conditions, health and safety issues and environmental concerns. In June 2014 for example, five people were killed and at least ten were injured following an explosion in a chemical tanker that was being salvaged and scrapped in Alang. The explosion was triggered by a suspected gas leak. With the nearest hospital 50km away in Bhavnagar, there are… Read more

Arctic Shipping; a future rival for the Suez Canal?

MarketLine

The melting of the Polar ice caps has opened the potential for a new shipping route which could cut thousands of kilometres between Asia and Europe, offering long-term hope for the shipping industry. The North Sea Route, a Russian regulated shipping lane between Murmansk in the Barents Sea and the Bering Strait, has seen over 213 applications to date in 2013, with 204 approved. Compared to 2012, where only 46 ships sailed, and two the previous year. Historically, the route was always limited by frozen waters. As climate change persists,… Read more