Hanjins Move Displays Container Carriers Breaking Points

first_imgzoom The impending bankruptcy of Korea’s container carrier Hanjin Shipping should serve as a warning that carriers do have breaking points and that they will not always be rescued, shipping consultancy Drewry said.In 2009 when the container industry posted operating losses of nearly USD 20 billion and many lines were said to be minutes from bankruptcy, none died. The “zombie” carriers’ survival methods were varied and complex, ranging from off-hiring ships to requesting government support, but ultimately they worked.“Having survived the worst crisis the industry has ever faced the assumption grew in strength that major carriers could not be killed off,” Drewry said, adding that some smaller players have fallen by the wayside this decade, however, none were remotely in the same league as Hanjin Shipping, which with a containership fleet of around 100 ships and total capacity of 620,000 TEU ranks it seventh in the world.Hanjin’s move into administration shatters the complacency that major carriers are immune to failure and can stomach prolonged years of low rates and financial losses.The company was in financial trouble as its operating loss amounted to approximately USD 580 million from 2010 to the first-half 2016, with most of the damage emanating from the container division.While Hanjin’s compatriot Hyundai Merchant Marine (HMM) negotiated a debt restructuring plan, which included reduced charter rates, sale of non-core assets and reaching a deal to join 2M carriers Maersk Line and MSC in a new alliance next April, Hanjin’s self-rescue plan has not proceeded as smoothly as over at HMM.Vessel charterers, most publically Seaspan, refused to lower their rates and despite selling a number of assets the plan to sell two tranches of new shares to sister company Korean Air fell short of raising the sums expected by creditors.The lack of progress led to Hanjin’s directors calling for court receivership on August 31.“While the company is not technically bankrupt during administration it is difficult to see how the company will be able to continue trading as customers are now desperately trying to locate and find alternative ways for their goods to be delivered. It’s unlikely any would entrust their cargoes to Hanjin again,” Drewry said.Drewry added that the immediate collateral damage of Hanjin’s situation would be widespread.Ports and terminals that have recently accepted Hanjin ships and containers will not only lose a customer but might not get paid for work carried out; the same applies to container lessors, and charter shipowners, particularly Seaspan and Danaos, which were Hanjin’s biggest suppliers of non-owned ships.Furthermore, shippers unaffected by Hanjin’s situation are expected to feel a short-term shock as the reduction of capacity will inflate freight rates. Notwithstanding the general rate increases (GRIs) already in-place freight rates out of Asia surged the day after Hanjin’s announcement. The World Container Index reported that spot rates from Shanghai to Los Angeles in the US and Rotterdam in Europe, increased by 42% and 39%, respectively, on September 1 against the previous week.“Perhaps the most far-reaching consequence of Hanjin’s situation, alongside the recent defensive M&A activity, will be that all stakeholders will now finally understand that carriers cannot survive on a diet of ultra-low freight rates if they want to see healthy competition,” Drewry concluded.last_img read more

GOVT EMBARKS ON 74 MILLION ELECTRICITY EXPANSION PROJECT

first_imgFacebook Twitter Google+LinkedInPinterestWhatsAppKINGSTON, Dec. 16 (JIS): Most of the three per cent of rural households that are without electricity will be provided with the service under a $74 million expansion project that the Government has initiated through the Petroleum Corporation of Jamaica (PCJ).The project will be implemented by the Rural Electrification Programme (REP). “The PCJ has allocated $74 million to the REP project, and we are going to take light across to all communities,” said Minister of Science, Technology, Energy and Mining, Hon. Phillip Paulwell. “We are going to do it in every single parish,” he added.The Minister was addressing a brief ceremony held on Monday (December 15) at the Hyde Park United Church in Brooklyn, Manchester, before switching on lights to serve three communities in the parish. The areas are Mike Town, Evergreen and Brooklyn.Some 70 households in the three communities are now receiving electricity under the project. It was implemented by REP at a cost of $14.5 million, with $3 million coming from the Constituency Development Fund (CDF), through Member of Parliament for North West Manchester, Mikael Phillips.Mr. Phillips, who also addressed the commissioning ceremony, said that with the electricity, residents can now embark on projects to develop the community.He urged them to pay for the energy that they consume.Come next week, lights will be turned on in sections of the Llandilo community of Central Westmoreland.The REP aims to extend electricity to rural Jamaica as part of the Government of Jamaica’s commitment to provide the entire island with access to the service to stimulate economic and social activity, and improve the quality of life of citizens. RESIDENTS WELCOME INTERNET CAFÉ IN TREADWAYS, ST. CATHERINE Students Of Cavaliers All-Age Receive Tablet Computers Recommended for you Facebook Twitter Google+LinkedInPinterestWhatsApp Related Items:Mikael Phillips, Petroleum Corporation of Jamaica, phillip paulwell NATIONAL CYBERSECURITY STRATEGY LAUNCHEDlast_img read more

McManaman I was surprised Real Madrid didnt replace Ronaldo

first_imgFormer Real Madrid midfielder Steve McManaman admits that their failure to sign a top-class replacement for Ronaldo came as a shock to himLos Blancos lost their all-time top scorer in the summer to Juventus in a €112m deal and have since struggled greatly in his absence.Without Ronaldo, Real have lost five of their last seven games with only four goals scored in the process following Sunday’s humiliating 5-1 thrashing to Barcelona.Speaking on his former club, McManaman cannot understand why Real didn’t sign a replacement for Ronaldo and fears they are suffering the consequences.“Everybody was surprised, weren’t they?” McManaman told Reuters.“They took a long, long time to bring in new signings. They didn’t bring anyone to replace Cristiano.“It was a big shock for everybody. Whether they could buy somebody of his quality I don’t know. The fact that they didn’t bring anybody in and they did slow business in the centre-forward area, it surprised everybody.”Fati and Suarez shine against Valencia at Camp Nou Tomás Pavel Ibarra Meda – September 15, 2019 With a mesmerizing first half from Ansu Fati and a brace from Luis Suarez in the second half, Barcelona demolished Valencia at Camp Nou.Valencia…McManaman had previously urged his old club to sign either Paris Saint-Germain stars Neymar or Kylian Mbappe to replace Ronaldo.Now the former England international feels it imperative that Real recruit in the January transfer window for some fresh faces after sticking with the same stars for a long time now.“They probably need to refresh the team a bit more, to be very honest. They have kept the majority of the same team for the last couple of years,” said McManaman.“If you look at the age group of the Real Madrid players now, four or five of them are in the 30s. It’s probably the time to start refreshing it and bring in more players and try and replicate the success.“They have got a hard job on their hands. They are not playing well, the manager is under pressure and the team as well. They need to do something and need to do it quickly.”McManaman made 158 appearances for Real across all competitions between 1999 to 2003 and won the Champions League twice at the club.last_img read more

Cardiff City manager Neil Warnock hails amazing 2018

first_imgCardiff City manager Neil Warnock insists the year 2018 has been the best of his entire coaching career.Speaking ahead of Tuesday’s Premier League clash against Tottenham Hotspur, Warnock who guided the Bluebirds to promotion reflected on the year as a whole.“For a calendar year, it’s probably the most amazing year I’ve ever had in my career,” he said, according to the club’s official website.“To think in 2018, after surviving beforehand and losing every game last Christmas, to turn that around and get automatic promotion, take the Club up and now have 18 points by the New Year has been an amazing thing.”AAIB responds to Sala’s family request to recover the plane’s wreckage Manuel R. Medina – August 14, 2019 The Air Accidents Investigation Branch says they already explained their decision not to recover the plane’s wreckage to Sala’s family and the pilot’s.“I don’t think any of it could have been done without everyone singing from the same hymn sheet. The fans have just been quite amazing – you’d really put them at the top of the list. The way they’ve got behind us, I’ve even got goose pimples now talking about it.”“At the end of last season at Hull City – I’ll never forget that. After the warm-up the lads came in saying: ‘have you ever heard anything like that?’ and it was 45 minutes before kick-off! That was the win that got us up, make no mistake about that.”“This year, every week has been the same. I’ve never heard anything like it either. On Saturday my daughter said that all you could hear on the radio was the Cardiff fans singing the national anthem and everything else!”“It’s just a fabulous place to be and you feel so proud to in charge of a Club like this at a time like this.”last_img read more