The cyber attack that hit Danish-based A.P. Moller – Maersk on June 27 is expected to damage the company’s business performance by up to USD 300-million in the upcoming quarter. “Business volumes were negatively affected for a couple of weeks in July and as a consequence, our Q3 results will be impacted. We expect the cyber-attack will impact results negatively by USD 200-300 million,” Maersk group’s CEO Søren Skou said. The vast majority of the impact of the cyber-attack was
U.S.-based commodities funds posted the largest withdrawals of 2017, bleeding $1.2 billion during the latest week and sending a contrarian signal to rising oil and gold markets, Investment Company Institute (ICI) data showed. Crude oil futures and gold have both generated more than 4 percent returns apiece over the last month, but withdrawals accelerated for U.S. funds heavily invested in those assets. Kristina Hooper, global market strategist at Invesco Ltd, said the selling
In 2016 the shipping industry saw significant supply side adjustments in reaction to continued market pressures. For shipbuilders this meant a historically low level of newbuild demand with fewer than 500 orders reported in 2016, and the volume of tonnage on order declined sharply. Meanwhile, higher levels of delivery slippage and strong demolition saw fleet growth fall to its lowest level in over a decade. Pressure Building Up 2016 was an extremely challenging year for the s
The United States and Canada are moving closer to phase out the use of heavy fuel oil (HFO) from vessels operating in the Arctic waters through a strategy to rid the region of the dirtiest marine fuel, according to the Clean Arctic Alliance. Namely, the countries are launching the first processes ever to identify sustainable shipping lanes throughout their connected Arctic waters, in collaboration with Northern and Indigenous partners. The US and Canada have also agreed to pr
Mexican authorities have seized some 278 kilograms of cocaine from a container carried by the 63,200 dwt containership Laura Maersk. According to the information provided by the Mexican government, the vessel, operated by Danish shipping giant Maersk, brought the container to the port of Manzanillo, where the illicit content was discovered. A total of 295 packages were hidden inside a cargo of magnetic rollers. The container with the cocaine was reportedly loaded onto the 200
Maersk Line, Mediterranean Shipping Company (MSC) and Hyundai Merchant Marine (HMM) have reached an agreement to enter into a new strategic cooperation. The cooperation is a combination of slot exchanges and slot purchases between the three parties, as well as Maersk Line and MSC taking over a number of charters and operations of vessels currently chartered to HMM. Although the cooperation is outside the scope of MSC and Maersk Line’s 2M vessel sharing agreement, it “will pro
Dynamic and bustling: Shanghai is the world’s busiest container port and China’s economic powerhouse. Moving through Shanghai during rush hour requires steady nerves. Millions of people on their way to work throng into the urban canyons of the economic metropolis at the same time on buses, in cars and on motorbikes. The streets are jammed, noise levels are high and the air is heavy. “Commuters on the underground trains are lucky if they find a place to stand – although you ca
Without mentioning President-elect Donald Trump by name, Federal Reserve officials warned that the incoming administration’s fiscal policy must be intelligently designed to spur the economy while maintaining a rainy-day fund to help the economy withstand another downturn. “Smart” government spending and tax reform could help the economy grow, said Chicago Fed President Charles Evans in a speech to the Executives Club of Chicago, according to Reuters. Earlier, New York Fed Pre
Investors seem to think that the newly elected American President, Donald Trump will prove beneficial to the shipping industry, as the latest shipping stocks surge has shown. On the other hand, it could just be a blip of the markets and normal service will be resumed as soon as more information regarding policies emerge. Still, as Allied Shipbroking pointed out in its latest weekly report, it looks as though the market started to have severe mood swings as to what a Trump pre
Back in May, BIMCO disclosed a projected “road to recovery” for the dry bulk shipping industry. The main message back then on what the dry bulk sector must do to return to profitability was, and still is: “Scrapping ships and no new builds is the fastest road to recovery for the dry bulk market”. As promised, BIMCO will monitor and report back to the dry bulk shipping industry on the progress made towards a recovery. 2016 must be the turning point in addressing the fundamenta
As Maritime Holland readers undoubtedly know, the 2015 Paris Climate Agreement makes no reference to the shipping industry. However, this doesn’t mean that the sector is not making its own progressive steps on the matter. The recent contract between Switijnk Shipping, a family-owned Dutch shipping company, and C-Job Naval Architects for a Flettner Freighter is one example of how the shipping sector is independently and pro-actively looking for sustainable shipping solutions.
Global oil demand will rise by 1.2 million barrels per day (bpd) in 2017, steady from 2016 global demand growth levels, despite gains in Chinese consumption, the chief of the International Energy Agency (IEA) said on Tuesday in Singapore. Talking on the sidelines of Singapore’s International Energy Week, the IEA’s executive director Fatih Birol said that oil demand growth could weaken, if prices kept rising. International benchmark Brent crude oil futures have almost doubled
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Hanjin Group Chairman Cho Yang-ho, the largest stakeholder of the group’s cash-strapped Hanjin Shipping, said Tuesday the recent shipping fiasco sparked by court receivership of the shipping line was “unavoidable.” “It was an unavoidable situation derived from the aggressive supply of government-backed foreign shipping lines and their low price strategies,” Cho said in a parliamentary audit for the state-run Korea Development Bank. KDB is the main creditor of Hanjin Shipping.