There is a desperate shortage of seafarers throughout the entire world. Despite the prevalence of opportunities available on the sea, there was still a huge shortage of seafarers throughout the world, with the situation expected to worsen in the next two years.
As of August 29, 2009, there was a shortfall of 10 000 seafarers worldwide, and that number is expected to rise to 30 000 by 2011.
The fact that no matter how technologically advanced ships become, there will always be a need for seafarers to man ships and therefore countless opportunities existed, especially for young people.
No matter how much automatic facilities are introduced onto ships, there will always be a need for people to keep that ship going in areas such as piloting, marine engineering and maintenance, food and beverage and live on board entertainment. There is also the need for pilots, ship managers, marine superintendants and surveyors, amongst other jobs.
Skilled personnel such as coastal protection, marine biology, maritime security and environmental planning are also required.
Tuesday 29 September 2009
Sunday 27 September 2009
Japanese Investors Eyeing Indonesian Sectors
With a nod of approval toward the country’s economic prospects, a group of Japanese corporate leaders has indicated their intention to invest in Indonesia, particularly in the consumer and infrastructure sectors, a leader of the group said. Koken-Kai is a group of about 200 Japanese corporate executives from Tokyo, Osaka and Fukuoka. Its members are involved in industries ranging from manufacturing to financial services. “I see a lot of potential in Indonesia,” said Kenichi Ohmae, who led a delegation of about 40 Koken-Kai members to the country last week to meet with political and business leaders.
“That’s why Japanese colleagues of mine will come to Indonesia to take advantage of the country’s very dynamic economic growth.” Ohmae, president of Business Breakthrough and an author of popular business books, said the country was now seen as one of the world’s new economic growth engines, behind China and India.
“People have high expectations for the new government and new cabinet, with Vice President-elect Boediono directing economic policy,” he said. Ohmae noted that Japan was already one of the country’s largest investors as well as one of its biggest export markets, but added that trade between the two sides should increase. “Our member companies will focus on investing in the consumer products and infrastructure sectors,” Ohmae said. “With a huge population of more than 200 million people, I think it would be a mistake for Japan not to pay close attention to the domestic market in Indonesia.”
He added that he was urging Japanese companies to invest in production facilities in Indonesia as well as in China and Vietnam to take advantage of low costs, abundant natural resources and skilled labor. “In my opinion, Indonesia is well-practiced at global competitiveness,” he said. Eric Alexander Sugandi, an economist at Standard Chartered Bank who met with the Koken-Kai delegation, shared Ohmae’s view about the resilience of the economy and the prospects for investment in the domestic consumer goods sector. “Indonesia’s economy is expected to grow by 4 percent this year and by 5 percent next year,” he said during a presentation to Koken-Kai on Friday.
Eric said the second government of President Susilo Bambang Yudhoyono would likely be stronger than the first, giving it more power to enact its reform agenda and providing Boediono greater influence on economic policy. “Indonesia has been less affected by the global crisis and the consumer sector was the most resilient to the downturn,” he added.
“That’s why Japanese colleagues of mine will come to Indonesia to take advantage of the country’s very dynamic economic growth.” Ohmae, president of Business Breakthrough and an author of popular business books, said the country was now seen as one of the world’s new economic growth engines, behind China and India.
“People have high expectations for the new government and new cabinet, with Vice President-elect Boediono directing economic policy,” he said. Ohmae noted that Japan was already one of the country’s largest investors as well as one of its biggest export markets, but added that trade between the two sides should increase. “Our member companies will focus on investing in the consumer products and infrastructure sectors,” Ohmae said. “With a huge population of more than 200 million people, I think it would be a mistake for Japan not to pay close attention to the domestic market in Indonesia.”
He added that he was urging Japanese companies to invest in production facilities in Indonesia as well as in China and Vietnam to take advantage of low costs, abundant natural resources and skilled labor. “In my opinion, Indonesia is well-practiced at global competitiveness,” he said. Eric Alexander Sugandi, an economist at Standard Chartered Bank who met with the Koken-Kai delegation, shared Ohmae’s view about the resilience of the economy and the prospects for investment in the domestic consumer goods sector. “Indonesia’s economy is expected to grow by 4 percent this year and by 5 percent next year,” he said during a presentation to Koken-Kai on Friday.
Eric said the second government of President Susilo Bambang Yudhoyono would likely be stronger than the first, giving it more power to enact its reform agenda and providing Boediono greater influence on economic policy. “Indonesia has been less affected by the global crisis and the consumer sector was the most resilient to the downturn,” he added.
Eitzen calls bond holders meeting
As part of the process of putting forward a new financial plan, on 21st September 2009, Eitzen Chemical called for a bond holders' meeting.
This was called to propose certain amendments to the loan agreement for the FRN Eitzen Chemical Callable Bond Issue 2006/2011.
It will be held on 29th September 2009.
The company has proposed to change the maturity date of the bond loan to October 2014 and to remove certain covenants.
Eitzen Chemical is also in the process of negotiating amendments to its current credit facility agreements to achieve a new and more favourable debt repayment schedule and covenant structure.
It has proposed to postpone all scheduled instalments until fourth quarter 2012; however, with a potential for variable instalments from 2010 based on Eitzen Chemical's financial performance.
It also proposed to remove covenants to achieve a new structure, which fits the current market environment and the company's financial position.
Eitzen also plans to complete a new issue of $100 mill to strengthen its liquidity buffer and balance sheet.
The proposed amendments to the loan agreements, including the bond loan, will be conditional upon successful completion of the equity issue, and in turn this will be conditional upon the lenders approving the proposed loan amendments.
This was called to propose certain amendments to the loan agreement for the FRN Eitzen Chemical Callable Bond Issue 2006/2011.
It will be held on 29th September 2009.
The company has proposed to change the maturity date of the bond loan to October 2014 and to remove certain covenants.
Eitzen Chemical is also in the process of negotiating amendments to its current credit facility agreements to achieve a new and more favourable debt repayment schedule and covenant structure.
It has proposed to postpone all scheduled instalments until fourth quarter 2012; however, with a potential for variable instalments from 2010 based on Eitzen Chemical's financial performance.
It also proposed to remove covenants to achieve a new structure, which fits the current market environment and the company's financial position.
Eitzen also plans to complete a new issue of $100 mill to strengthen its liquidity buffer and balance sheet.
The proposed amendments to the loan agreements, including the bond loan, will be conditional upon successful completion of the equity issue, and in turn this will be conditional upon the lenders approving the proposed loan amendments.
Friday 25 September 2009
Russia could take quarter of world LNG market - Gazprom CEO
Friday, 25 September 2009
Russia could increase its share on the world liquefied natural gas market to 25%, the CEO of Russian energy giant Gazprom said on Thursday. "Russia could take a leading position on the world LNG market and get 25% of the global market," Alexei Miller said at a meeting on the development of gas deposits. The global market for liquefied natural gas (LNG) will double by 2020, Miller said."The [LNG] market has grown 70% since 2000, and according to our forecasts it will double by 2020," Miller said.
The Gazprom CEO said that the project for the construction of a liquefied natural gas plant on Yamal Peninsula in West Siberia would be ready by 2015-2017."Currently we are at the pre-project stage; I don't believe this will happen earlier than 2015-2017," Miller said in response to the question about when the project would be ready and Gazprom would start selecting foreign partners for its implementation.Russian Energy Minister Sergei Shmatko said earlier in the day that the potential of natural gas production at explored fields alone on Yamal Peninsula was estimated at 360 billion cubic meters a year for many years to come, with the peninsula's reserves estimated at over 50 trillion cubic meters.
Source: RIA Novosti
Russia could increase its share on the world liquefied natural gas market to 25%, the CEO of Russian energy giant Gazprom said on Thursday. "Russia could take a leading position on the world LNG market and get 25% of the global market," Alexei Miller said at a meeting on the development of gas deposits. The global market for liquefied natural gas (LNG) will double by 2020, Miller said."The [LNG] market has grown 70% since 2000, and according to our forecasts it will double by 2020," Miller said.
The Gazprom CEO said that the project for the construction of a liquefied natural gas plant on Yamal Peninsula in West Siberia would be ready by 2015-2017."Currently we are at the pre-project stage; I don't believe this will happen earlier than 2015-2017," Miller said in response to the question about when the project would be ready and Gazprom would start selecting foreign partners for its implementation.Russian Energy Minister Sergei Shmatko said earlier in the day that the potential of natural gas production at explored fields alone on Yamal Peninsula was estimated at 360 billion cubic meters a year for many years to come, with the peninsula's reserves estimated at over 50 trillion cubic meters.
Source: RIA Novosti
Middle East gas demand to remain strong
Friday, 25 September 2009
Gas demand in the Middle East will remain strong for the foreseeable future, due to the needs of the power sector, according to an industry analyst. While demand for gas in the rest of the world has fallen, domestic requirements have remained steady in the Middle East, and much of this due to the increasing amount of power needed in the region reported George Sarraf, principal at Boooz and Company. “If you look at most of the Middle East countries, the gas demand is pretty strong. In Abu Dhabi there is a strong demand for gas mainly due to the need of the power sector which has had to grow significantly,” said Sarraf.“
It is the same story for all the other countries, the demand for gas domestically is high and it’s primarily driven by the growth in the power sector. There is an over consumption of electricity so this is driving all these projects building big power plants which require gas as a feedstock,” Sarraf added. Before the recession hit analysts were predicting world gas demand to rise 2% per annum for the foreseeable future, however due to gas demand correlating with industrial output, this has not been the case.
Source: Arabian Oil & Gas
Gas demand in the Middle East will remain strong for the foreseeable future, due to the needs of the power sector, according to an industry analyst. While demand for gas in the rest of the world has fallen, domestic requirements have remained steady in the Middle East, and much of this due to the increasing amount of power needed in the region reported George Sarraf, principal at Boooz and Company. “If you look at most of the Middle East countries, the gas demand is pretty strong. In Abu Dhabi there is a strong demand for gas mainly due to the need of the power sector which has had to grow significantly,” said Sarraf.“
It is the same story for all the other countries, the demand for gas domestically is high and it’s primarily driven by the growth in the power sector. There is an over consumption of electricity so this is driving all these projects building big power plants which require gas as a feedstock,” Sarraf added. Before the recession hit analysts were predicting world gas demand to rise 2% per annum for the foreseeable future, however due to gas demand correlating with industrial output, this has not been the case.
Source: Arabian Oil & Gas
Wednesday 23 September 2009
Eitzen Chemical - Summons for bondholders' meeting
As previously announced, Eitzen Chemical ASA is in the process of developing a long term financial plan. The plan is built around a new debt repayment schedule and covenant structure to fit the current market conditions in addition to a new equity issue. Eitzen Chemical is currently in the process of negotiating amendments to its main loan agreements. The Company has proposed that installments are deferred and certain covenants are amended, among other proposed changes in the main loan agreements.As part of the restructuring process, the Company has called for a bondholders' meeting to consider a proposal for amendments to the loan agreement for the FRN Eitzen Chemical ASA Callable Bond Issue 2006/2011 bond loan, consisting of a USD tranche with ISIN NO 00133433.7 and a NOK tranche with ISIN NO 001033434.5.The meeting will be held in the premises of Norsk Tillitsmann ASA (the loan trustee for the bond loan).
Asian Development Bank Upgrades Forecasts for Indonesia
The Asian Development Bank raised its growth forecasts for Indonesia on Tuesday, as it did for regional heavyweights China and India, saying the region is leading a global recovery but warning against ending stimulus efforts too quickly. The ADB forecast that Indonesia’s economy would expand 4.3 percent this year, compared with its 3.6 percent estimate in March.
The bank said “robust growth in private consumption, underpinned by easing inflation and a surge in election-related government spending, drove better-than-expected economic growth in the first half of 2009.” The report added that the country’s “fiscal stimulus measures supported growth. Net exports contributed to the expansion as imports contracted faster than exports, though investment weakened. “Relative to forecasts made in March this year, the full-year growth projections are revised up for 2009 and 2010, and inflation will likely be lower.
The bank said “robust growth in private consumption, underpinned by easing inflation and a surge in election-related government spending, drove better-than-expected economic growth in the first half of 2009.” The report added that the country’s “fiscal stimulus measures supported growth. Net exports contributed to the expansion as imports contracted faster than exports, though investment weakened. “Relative to forecasts made in March this year, the full-year growth projections are revised up for 2009 and 2010, and inflation will likely be lower.
Monday 21 September 2009
The Capture of Asia's Most Wanted Terrorists
So glad today to hear about the death of terror mastermind Noordin Top and this has shown that the Indonesian police has managed to continue to perform well after all the raids and captures of many other terrorists for the past 5 years. I salute Police excellent performance for this achievement. This time it is striking at the heart of the terrorist network behind a deadly campaign of suicide attacks in Indonesia. If i remember all the bombings that have happenned over the past few years, actually these terrorists have killed about nearly one thousands people.
These masterminds are actually Malaysian nationals and they were member of JI and regiional leaders for Al-Qaeda and linked to Osama Bin Laden. First one was Dr. Azahari who was shot dead on a raid in 2005 but the more cunning and and charismatic figure, Noordin had eluded capture for more than seven years. Indonesia has mounted Indonesia had mounted one of the biggest manhunts in its history to try to capture Noordin, widely distributing his photo and offering a $100,000 reward for information that led to his arrest. Yet he repeatedly managed to evade authorities, most recently in August when, after an all-night raid on a safe house, the police discovered they had killed the wrong man.
Noordin had an extensive support network, from Islamic schools to sympathetic radical groups, that helped him slip across Indonesia's vast island chain undetected, resettling and taking new wives as he recruited followers and plotted attacks. One of his wives was among those rounded up in the aftermath of the July hotel bombings, though she told authorities she was unaware of her husband's true identity.
With the death of the imporant person and most wanted terrorists, it will reduce substantially the leadership in this group and will reduce the terrorists threat. President Susilo Bambang Yudhoyono hailed Thursday's operation, saying it had removed a feared figure who "disturbed the life of this country, ruined our image in the international community and paralyzed the national economy." Still, he cautioned that Noordin's death should not be used as a reason for complacency.
With the Indonesian economy has shown resilience in the facing of the crisis and many analysts has put Indonesia at par with the rest of BRIC economic growth, its ability to continue to show strong growth will be further enhanced with the news of the death of Noordin M. Top. Tourism will hopefully increase considerably as Indonesia has improved its image of being able and has shown consistent results in combating terrorism.
Business confidence will also improve and there will be more investment coming into Indonesia as the threat of terrorism has reduced. Country risk will decline and sovereign ratings will be better. The will result in higher return and better investment case for Indonesia which have already given a strong and positive view by business comunities.
fights for ideology - eradicate poverty and backwardness
President Susilo Bambang Yudhoyono hailed Thursday's operation, saying it had removed a feared figure who "disturbed the life of this country, ruined our image in the international community and paralyzed the national economy." Still, he cautioned that Noordin's death should not be used as a reason for complacency.
A skilled bombmaker, Noordin has been implicated in every major recent attack in Indonesia, including 2002 and 2005 suicide bombings on the resort island of Bali that together killed 222 people, mostly foreigners.
Jemaah Islamiyah, and later Noordin's more militant splinter group, are also blamed for attacks in Jakarta, including the J.W. Marriott and Ritz-Carlton suicide bombings in July, an earlier attack on the Marriott in 2003 and a bombing at the Australian Embassy in 2004.
With Thursday's raid, police have now killed seven militant suspects since the July 17 hotel bombs and are still hunting three fugitives. Terrorism experts said Noordin's removal from the radical scene will improve the country's security outlook.
"You can't say that the terrorism threat is over, but you can say that a major figure has been taken out of the picture," said Sidney Jones, a leading terrorism adviser to the International Crisis Group think tank. "The threat had probably been diminished with his death and the inspiration he gave to follow al-Qaida line is finished."
The Obama administration welcomed the operation as "a significant step forward for Indonesia in its battle with political extremists," said State Department spokesman P.J. Crowley. Asked about any U.S. involvement, he said the U.S. did not take part or provide intelligence that led to the raid.
Noordin, 41, formed his radical ideas in the early 1990s at a Malaysian boarding school headed by an Indonesian Muslim cleric, Abdullah Sungkar, who founded the regional Jemaah Islamiyah network. Noordin joined in 1998 after training in the southern Philippines.
He fled to Indonesia in 2002 amid a crackdown on Muslim extremists in Malaysia following the Sept. 11, 2001, attacks in the United States, leaving behind a wife and three young children. He rose to prominence following the Bali bombings, coordinated by his close associate Dr. Azahari bin Husin, who was killed in a raid in late 2005.
A disagreement over targeting civilians caused a split in Jemaah Islamiyah and Noordin formed a more violent faction, Tanzim Qaidat al-Jihad, aimed at creating a common Muslim state in Indonesia, Malaysia, Brunei and the Philippines.
Authorities in the Philippines, who are fighting an Islamist insurgency in the south, said Noordin's death was a welcome sign that terrorists cannot hide forever.
"It's a major accomplishment, it's a big blow to their leadership, to their capability to train new bombers," said Maj. Gen. Benjamin Dolorfino, who leads assaults against al-Qaida-linked militants. "There are gains being made in the anti-terrrorism campaign in the region."
Noordin's death follows the killings of several key al-Qaida and Taliban figures, including Pakistani Taliban chief Baitullah Meshud, who died in a CIA missile strike in August, and al-Qaida operative Saleh Ali Saleh Nabhan, who was killed Monday in a U.S. commando raid in Somalia.
These masterminds are actually Malaysian nationals and they were member of JI and regiional leaders for Al-Qaeda and linked to Osama Bin Laden. First one was Dr. Azahari who was shot dead on a raid in 2005 but the more cunning and and charismatic figure, Noordin had eluded capture for more than seven years. Indonesia has mounted Indonesia had mounted one of the biggest manhunts in its history to try to capture Noordin, widely distributing his photo and offering a $100,000 reward for information that led to his arrest. Yet he repeatedly managed to evade authorities, most recently in August when, after an all-night raid on a safe house, the police discovered they had killed the wrong man.
Noordin had an extensive support network, from Islamic schools to sympathetic radical groups, that helped him slip across Indonesia's vast island chain undetected, resettling and taking new wives as he recruited followers and plotted attacks. One of his wives was among those rounded up in the aftermath of the July hotel bombings, though she told authorities she was unaware of her husband's true identity.
With the death of the imporant person and most wanted terrorists, it will reduce substantially the leadership in this group and will reduce the terrorists threat. President Susilo Bambang Yudhoyono hailed Thursday's operation, saying it had removed a feared figure who "disturbed the life of this country, ruined our image in the international community and paralyzed the national economy." Still, he cautioned that Noordin's death should not be used as a reason for complacency.
With the Indonesian economy has shown resilience in the facing of the crisis and many analysts has put Indonesia at par with the rest of BRIC economic growth, its ability to continue to show strong growth will be further enhanced with the news of the death of Noordin M. Top. Tourism will hopefully increase considerably as Indonesia has improved its image of being able and has shown consistent results in combating terrorism.
Business confidence will also improve and there will be more investment coming into Indonesia as the threat of terrorism has reduced. Country risk will decline and sovereign ratings will be better. The will result in higher return and better investment case for Indonesia which have already given a strong and positive view by business comunities.
fights for ideology - eradicate poverty and backwardness
President Susilo Bambang Yudhoyono hailed Thursday's operation, saying it had removed a feared figure who "disturbed the life of this country, ruined our image in the international community and paralyzed the national economy." Still, he cautioned that Noordin's death should not be used as a reason for complacency.
A skilled bombmaker, Noordin has been implicated in every major recent attack in Indonesia, including 2002 and 2005 suicide bombings on the resort island of Bali that together killed 222 people, mostly foreigners.
Jemaah Islamiyah, and later Noordin's more militant splinter group, are also blamed for attacks in Jakarta, including the J.W. Marriott and Ritz-Carlton suicide bombings in July, an earlier attack on the Marriott in 2003 and a bombing at the Australian Embassy in 2004.
With Thursday's raid, police have now killed seven militant suspects since the July 17 hotel bombs and are still hunting three fugitives. Terrorism experts said Noordin's removal from the radical scene will improve the country's security outlook.
"You can't say that the terrorism threat is over, but you can say that a major figure has been taken out of the picture," said Sidney Jones, a leading terrorism adviser to the International Crisis Group think tank. "The threat had probably been diminished with his death and the inspiration he gave to follow al-Qaida line is finished."
The Obama administration welcomed the operation as "a significant step forward for Indonesia in its battle with political extremists," said State Department spokesman P.J. Crowley. Asked about any U.S. involvement, he said the U.S. did not take part or provide intelligence that led to the raid.
Noordin, 41, formed his radical ideas in the early 1990s at a Malaysian boarding school headed by an Indonesian Muslim cleric, Abdullah Sungkar, who founded the regional Jemaah Islamiyah network. Noordin joined in 1998 after training in the southern Philippines.
He fled to Indonesia in 2002 amid a crackdown on Muslim extremists in Malaysia following the Sept. 11, 2001, attacks in the United States, leaving behind a wife and three young children. He rose to prominence following the Bali bombings, coordinated by his close associate Dr. Azahari bin Husin, who was killed in a raid in late 2005.
A disagreement over targeting civilians caused a split in Jemaah Islamiyah and Noordin formed a more violent faction, Tanzim Qaidat al-Jihad, aimed at creating a common Muslim state in Indonesia, Malaysia, Brunei and the Philippines.
Authorities in the Philippines, who are fighting an Islamist insurgency in the south, said Noordin's death was a welcome sign that terrorists cannot hide forever.
"It's a major accomplishment, it's a big blow to their leadership, to their capability to train new bombers," said Maj. Gen. Benjamin Dolorfino, who leads assaults against al-Qaida-linked militants. "There are gains being made in the anti-terrrorism campaign in the region."
Noordin's death follows the killings of several key al-Qaida and Taliban figures, including Pakistani Taliban chief Baitullah Meshud, who died in a CIA missile strike in August, and al-Qaida operative Saleh Ali Saleh Nabhan, who was killed Monday in a U.S. commando raid in Somalia.
Sunday 20 September 2009
Indonesia Should Aim Higher: The Economist
The Jakarta Post , Jakarta Tue, 09/15/2009 12:12 PM World
Indonesia has not only survived the catastrophic financial crisis and a political calamity in 1998, it has now turned into a stable democracy with a robust economy, The Economist says.
The London-based weekly newspaper gave the glowing assessment in a special report on Indonesia in its Sept. 12 edition, highlighting the success this country has made in the past decade.
"Foreigners may not realize, its boosters defensively suggest, that the world's third-largest democracy and fourth most populous country, with more Muslims than any other, is actually doing rather well," the Economist said in its 15-page report titled "A Golden Chance".
Indonesia has managed to achieve a remarkable turnaround in a relatively short period of time, and with its impressive economic growth, it can now be considered as a serious contender against the other fast-growing emerging markets, or BRIC countries: Brazil, Russia, India and China.
Yet, less than a decade ago Indonesia was considered a basket case.
The influential newspaper says the Indonesian economy has proven to be resilient enough to withstand the recent global downturn and maintain solid growth rates for years to come.
The country's economy will continue to grow with the swelling number of Indonesians living in cities serving as the engine of growth.
By next year, about half of Indonesia's population will be living in urban areas, which will lead to surging consumption, the country's main driver for growth, the newspaper says.
While its democracy is still "messy" and "needs fixing", the newspaper says Indonesia will likely enjoy political stability, a condition that will give Yudhoyono the "breathing space" needed to bring the nation out of its current state.
"Indonesian policymakers, naturally, congratulate themselves on having steered the country away from the abyss." The newspaper however warns against complacency, as Indonesia is not yet out of the woods. "Instead, policymakers should be worrying about the fragility of the gains they have made, and about how far the country still is from realizing its potential."
Indonesia has not only survived the catastrophic financial crisis and a political calamity in 1998, it has now turned into a stable democracy with a robust economy, The Economist says.
The London-based weekly newspaper gave the glowing assessment in a special report on Indonesia in its Sept. 12 edition, highlighting the success this country has made in the past decade.
"Foreigners may not realize, its boosters defensively suggest, that the world's third-largest democracy and fourth most populous country, with more Muslims than any other, is actually doing rather well," the Economist said in its 15-page report titled "A Golden Chance".
Indonesia has managed to achieve a remarkable turnaround in a relatively short period of time, and with its impressive economic growth, it can now be considered as a serious contender against the other fast-growing emerging markets, or BRIC countries: Brazil, Russia, India and China.
Yet, less than a decade ago Indonesia was considered a basket case.
The influential newspaper says the Indonesian economy has proven to be resilient enough to withstand the recent global downturn and maintain solid growth rates for years to come.
The country's economy will continue to grow with the swelling number of Indonesians living in cities serving as the engine of growth.
By next year, about half of Indonesia's population will be living in urban areas, which will lead to surging consumption, the country's main driver for growth, the newspaper says.
While its democracy is still "messy" and "needs fixing", the newspaper says Indonesia will likely enjoy political stability, a condition that will give Yudhoyono the "breathing space" needed to bring the nation out of its current state.
"Indonesian policymakers, naturally, congratulate themselves on having steered the country away from the abyss." The newspaper however warns against complacency, as Indonesia is not yet out of the woods. "Instead, policymakers should be worrying about the fragility of the gains they have made, and about how far the country still is from realizing its potential."
Saturday 19 September 2009
Shipping finds itself at the crest and the bottom of a wave
Friday, 18 September 2009
On Monday morning the full complement of new trainees arrived at Ince & Co, the maritime law specialist. Unlike the picture at many other City law firms, there had been no need for deferrals. In fact, it took on two more young lawyers than last year. There is a similar picture at Holman Fenwick Willan, another great maritime firm, where recruitment has held up well. Partners, senior associates and even three to four-year qualified assistants say they need more trainees to help them to cope with the volume of work.In other words, business is booming for shipping-based law firms.
And so it is highly pertinent that this week Norton Rose has published The Way Ahead for Transport, a heavyweight report that analyses the state of the market for shipping, aviation and rail as seen by industry insiders.It comes, unsurprisingly, to gloomy conclusions — especially about shipping. “Shipping respondents appear to be the biggest victims of the drop in global trade while also suffering from the lack of available finance,” it says.So what is going on? The Norton Rose figures point to a sector in which two thirds of the industry expect widespread bank enforcement of troubled shipping loans and 80 per cent predict that it will be at least 12 months before the number of banks actively lending to the sector increases. A similar number expect no return to pre-crisis levels of available bank debt within three years. Almost 70 per cent of the sector regard the market as poor.
It is this crisis in confidence that is fuelling the unprecedented level of activity among law firms. Shipping lawyers take no pleasure in the problems facing their clients. Yet now that the sector has slid into crisis their services are urgently needed to sort out the tangled wrecks into which many shipping businesses have collapsed.“I’ve been in the shipping field for 26 years and the downturn took me totally by surprise,” says Harry Theochari, the Norton Rose asset finance partner who inspired the survey.
“The fallout has been striking. For example, on behalf of our clients we have arrested more ships in the past six weeks than in the past six years.”Although shipping is the preeminent global business with the leading players coming from countries such as Greece, Norway, China and Singapore, the preferred jurisdiction for contracts and dispute resolution is England. Nigel Thomas, of Watson, Farley & Williams, says: “English law works better than any other system and it gives us, as English lawyers, a tremendous advantage. Recently there have been pressures from the Norwegians to use Norwegian law but international clients don’t want to use it.”
London’s position as a financial centre reinforces the primacy of English law given that, as Theochari points out, this is a sector that has heavily relied upon bank debt for most of its history. Moreover, the complex network of relationships of those who charter, sub-charter and sub-sub-charter means that once something goes wrong there is a massive knock-on effect luring more and more people into the web of litigation. So it is very convenient for everyone to be operating under the same code (especially given New York law’s absence from the international shipping business).
One of the biggest things to have gone wrong, of course, over the past year is the extraordinary slump in the rates that owners can charge. For large bulk carriers the drop has been from $200,000 (£121,000) a day to just $10,000. This has left parties with gaping holes in their income in relation to their outgoings. Ben Knowles, of Clyde & Co, says: “Last autumn there was an unprecedented collapse in the dry shipping market. The fallout of that collapse has benefited many of London’s medium-sized shipping and trading practitioners.”For James Wilson, of Ince & Co, the imperative is to ensure that legal advice is delivered in a wholly commercial — not purely legalistic — way. “There is no point in this market to adopt a rottweiller approach if the people on the other side do not have the money to hand over and therefore your client, the claimant, cannot effect the claim,” he says. “So you need a pragmatic approach to mediation or negotiation in order to get a result.
The original agreement for a charter may be for $100,000 a day but if $25,000 is all the party can afford to pay then it’s better to negotiate for $30,000 than end up with nothing by not being prepared to compromise.”Pragmatism is also starting to bite in the distressed shipbuilding market. The boom years lead to a massive over-ordering of ships that in many cases are being mothballed as soon as they are launched. However, Marcus Bowman, of Holman Fenwick Willan, says that there are some signs that bargains are starting to come on the market and being snapped up. “What’s important for us is to have activity in the market,” he says. “Ships are now cheap. It’s not all gloom and doom.”
Source: Times Online
On Monday morning the full complement of new trainees arrived at Ince & Co, the maritime law specialist. Unlike the picture at many other City law firms, there had been no need for deferrals. In fact, it took on two more young lawyers than last year. There is a similar picture at Holman Fenwick Willan, another great maritime firm, where recruitment has held up well. Partners, senior associates and even three to four-year qualified assistants say they need more trainees to help them to cope with the volume of work.In other words, business is booming for shipping-based law firms.
And so it is highly pertinent that this week Norton Rose has published The Way Ahead for Transport, a heavyweight report that analyses the state of the market for shipping, aviation and rail as seen by industry insiders.It comes, unsurprisingly, to gloomy conclusions — especially about shipping. “Shipping respondents appear to be the biggest victims of the drop in global trade while also suffering from the lack of available finance,” it says.So what is going on? The Norton Rose figures point to a sector in which two thirds of the industry expect widespread bank enforcement of troubled shipping loans and 80 per cent predict that it will be at least 12 months before the number of banks actively lending to the sector increases. A similar number expect no return to pre-crisis levels of available bank debt within three years. Almost 70 per cent of the sector regard the market as poor.
It is this crisis in confidence that is fuelling the unprecedented level of activity among law firms. Shipping lawyers take no pleasure in the problems facing their clients. Yet now that the sector has slid into crisis their services are urgently needed to sort out the tangled wrecks into which many shipping businesses have collapsed.“I’ve been in the shipping field for 26 years and the downturn took me totally by surprise,” says Harry Theochari, the Norton Rose asset finance partner who inspired the survey.
“The fallout has been striking. For example, on behalf of our clients we have arrested more ships in the past six weeks than in the past six years.”Although shipping is the preeminent global business with the leading players coming from countries such as Greece, Norway, China and Singapore, the preferred jurisdiction for contracts and dispute resolution is England. Nigel Thomas, of Watson, Farley & Williams, says: “English law works better than any other system and it gives us, as English lawyers, a tremendous advantage. Recently there have been pressures from the Norwegians to use Norwegian law but international clients don’t want to use it.”
London’s position as a financial centre reinforces the primacy of English law given that, as Theochari points out, this is a sector that has heavily relied upon bank debt for most of its history. Moreover, the complex network of relationships of those who charter, sub-charter and sub-sub-charter means that once something goes wrong there is a massive knock-on effect luring more and more people into the web of litigation. So it is very convenient for everyone to be operating under the same code (especially given New York law’s absence from the international shipping business).
One of the biggest things to have gone wrong, of course, over the past year is the extraordinary slump in the rates that owners can charge. For large bulk carriers the drop has been from $200,000 (£121,000) a day to just $10,000. This has left parties with gaping holes in their income in relation to their outgoings. Ben Knowles, of Clyde & Co, says: “Last autumn there was an unprecedented collapse in the dry shipping market. The fallout of that collapse has benefited many of London’s medium-sized shipping and trading practitioners.”For James Wilson, of Ince & Co, the imperative is to ensure that legal advice is delivered in a wholly commercial — not purely legalistic — way. “There is no point in this market to adopt a rottweiller approach if the people on the other side do not have the money to hand over and therefore your client, the claimant, cannot effect the claim,” he says. “So you need a pragmatic approach to mediation or negotiation in order to get a result.
The original agreement for a charter may be for $100,000 a day but if $25,000 is all the party can afford to pay then it’s better to negotiate for $30,000 than end up with nothing by not being prepared to compromise.”Pragmatism is also starting to bite in the distressed shipbuilding market. The boom years lead to a massive over-ordering of ships that in many cases are being mothballed as soon as they are launched. However, Marcus Bowman, of Holman Fenwick Willan, says that there are some signs that bargains are starting to come on the market and being snapped up. “What’s important for us is to have activity in the market,” he says. “Ships are now cheap. It’s not all gloom and doom.”
Source: Times Online
Tuesday 15 September 2009
Indonesia: Local shipbuilders to benefit from oil and gas sector needs
Monday, 07 September 2009
The local shipbuilding industry expects its currently idle shipping capacity, which has now reached about 50 percent, to be fully exploited under a new government rule that requires the oil and gas sector to rely on Indonesian vessels for its shipping needs. Industry Ministry director for maritime and engineering Soerjono, who like many Indonesian uses only one name, has said the new rule would allow the industry to recover next year from the negative impacts of the financial crisis which started to hit the industry in the second half of last year. Soerjono said under the new rule, production sharing contractors in the oil and gas sector could reclaim expenses made for renting vessels to support their operations as long as the vessels were constructed in Indonesia.
He further explained that these shipping expenses would be eligible items as part of the oil and gas cost recovery scheme to be reimbursed by the government on the approval of the upstream oil and gas regulator BPMigas. "BPMigas has the authority to request PSCs to hire locally produced vessels if they want to recover costs they spend (on vessels for their operations)," Soerjono told The Jakarta Post recently. A memorandum of understanding for the implementation of the new rule, based on the 2008 Maritime Law, was signed by the Industry Ministry and BPMigas last month, he said.
Iperindo chairman Harsusanto previously said it was estimated that the industry could benefit by up to 20 percent of US$1.5 billion in average annual charter costs spent by oil and gas contractors. According to ministry data, at present there are 631 vessels comprising 541 national-flag vessels and 90 foreign-flag vessels working in support of the sector. Prior to the amendment of the maritime law, which introduced the local shipping quota, foreign operators once controlled 90 percent of vessels operating in Indonesian waters. Echoing Soerjono, Indonesian National Shipbuilding Industry Association (Iperindo) secretary-general Wing Wirjawan said he expected "as much as possible" to benefit from the MoU. He said the domestic shipbuilding industry was able to build almost all 20 types of vessels needed by oil and gas contractors, for example anchor handling tugs, tug boats, mooring boats, barges and utility vessels.
"What we are incapable of is to build FSOs *floating storage and offloading facilities* and FPSO *floating production, storage and offloading facilities*. They are too big at this time. Our shipbuilding production facilities are not *big* enough yet," he told the Post. He said the domestic industry would be able to start producing FSOs and FPSOs with a capacity of between 300,000 and 400,000 dead weight tons within three to four years at the shipyards being developed at Lamongan in East Java. Currently, China, Japan and South Korea are the main countries able to build these facilities.
Source: The Hellenic
The local shipbuilding industry expects its currently idle shipping capacity, which has now reached about 50 percent, to be fully exploited under a new government rule that requires the oil and gas sector to rely on Indonesian vessels for its shipping needs. Industry Ministry director for maritime and engineering Soerjono, who like many Indonesian uses only one name, has said the new rule would allow the industry to recover next year from the negative impacts of the financial crisis which started to hit the industry in the second half of last year. Soerjono said under the new rule, production sharing contractors in the oil and gas sector could reclaim expenses made for renting vessels to support their operations as long as the vessels were constructed in Indonesia.
He further explained that these shipping expenses would be eligible items as part of the oil and gas cost recovery scheme to be reimbursed by the government on the approval of the upstream oil and gas regulator BPMigas. "BPMigas has the authority to request PSCs to hire locally produced vessels if they want to recover costs they spend (on vessels for their operations)," Soerjono told The Jakarta Post recently. A memorandum of understanding for the implementation of the new rule, based on the 2008 Maritime Law, was signed by the Industry Ministry and BPMigas last month, he said.
Iperindo chairman Harsusanto previously said it was estimated that the industry could benefit by up to 20 percent of US$1.5 billion in average annual charter costs spent by oil and gas contractors. According to ministry data, at present there are 631 vessels comprising 541 national-flag vessels and 90 foreign-flag vessels working in support of the sector. Prior to the amendment of the maritime law, which introduced the local shipping quota, foreign operators once controlled 90 percent of vessels operating in Indonesian waters. Echoing Soerjono, Indonesian National Shipbuilding Industry Association (Iperindo) secretary-general Wing Wirjawan said he expected "as much as possible" to benefit from the MoU. He said the domestic shipbuilding industry was able to build almost all 20 types of vessels needed by oil and gas contractors, for example anchor handling tugs, tug boats, mooring boats, barges and utility vessels.
"What we are incapable of is to build FSOs *floating storage and offloading facilities* and FPSO *floating production, storage and offloading facilities*. They are too big at this time. Our shipbuilding production facilities are not *big* enough yet," he told the Post. He said the domestic industry would be able to start producing FSOs and FPSOs with a capacity of between 300,000 and 400,000 dead weight tons within three to four years at the shipyards being developed at Lamongan in East Java. Currently, China, Japan and South Korea are the main countries able to build these facilities.
Source: The Hellenic
Chinese economy may keep 8% growth for two years: economist
Tuesday, 08 September 2009
The Chinese economy is experiencing a "V" shape recovery and the growth rate may reach 8 percent both this year and next year, said Chinese economist Fan Gang said. Fan, a monetary policy adviser to China's central bank, said at the 2009 annual conference of CEO in Beijing, that the economy will see a sustainable recovery and will be back to normal in 2011,according to a report of the China News Service.
He predicted that the real estate investment will increase by around 30 percent in 2010, which will add one percentage point to economic growth. Corporate investment is expected to grow prominently next year and as the global trade is warming up, Chinese export, which still enjoys the cost advantage, will recover. "After the economy is back to normal in 2010, the government will adjust the macro-economic policy. But before that happens, the current stimulus policy should stay to sustain the recovery," he said. Fan said people should adjust their expectation of economic growth and not regard recovery simply as a double-digit growth. A growth grate of 8 percent to 9 percent is sustainable growth.
Source: Xinhua
The Chinese economy is experiencing a "V" shape recovery and the growth rate may reach 8 percent both this year and next year, said Chinese economist Fan Gang said. Fan, a monetary policy adviser to China's central bank, said at the 2009 annual conference of CEO in Beijing, that the economy will see a sustainable recovery and will be back to normal in 2011,according to a report of the China News Service.
He predicted that the real estate investment will increase by around 30 percent in 2010, which will add one percentage point to economic growth. Corporate investment is expected to grow prominently next year and as the global trade is warming up, Chinese export, which still enjoys the cost advantage, will recover. "After the economy is back to normal in 2010, the government will adjust the macro-economic policy. But before that happens, the current stimulus policy should stay to sustain the recovery," he said. Fan said people should adjust their expectation of economic growth and not regard recovery simply as a double-digit growth. A growth grate of 8 percent to 9 percent is sustainable growth.
Source: Xinhua
World oil demand to grow again in 2010: OPEC
Wednesday, 16 September 2009
World oil demand will decline slightly in 2009 but start growing again next year, the OPEC oil producers' cartel said on Tuesday in its monthly report, standing by its previous forecast. World oil demand in 2009 this year was expected to contract by 1.56 million barrels per day (bpd) to 84.05 million bpd, the Organization of Petroleum Exporting Countries said in its September report.A month ago, OPEC had been pencilling in a fractionally bigger contraction of 1.65 million bpd for this year.
Then, "in 2010, global demand is forecast to return to growth following two years of consecutive declines, increasing 0.5 million bpd to stand at 84.6 million bpd," the cartel said.That figure was unchanged from the previous report.Improved economic activity in the United States last month was helping world oil demand to stabilise, OPEC said."The US is playing a significant role in world oil demand, showing a comeback and reducing the contraction from 0.7 million bpd in July to almost flat in August. This is due to improved economic activity, summer driving consumption and the low base in the same month of 2008," the report explained.
On top of this, oil demand was strong in developing countries such as China, India and the Middle East.Those same regions would remain the driving force behind world oil demand growth next year, OPEC continued."As seen in recent years, most of the growth will take place in non-OECD (Organisation for Economic Cooperation and Development), mainly China, India, the Middle East and Latin America," it said.Overall, "in anticipation of a slow economic recovery next year, world oil demand growth is expected at 500,000 bpd," the report said.
Source: AFP
World oil demand will decline slightly in 2009 but start growing again next year, the OPEC oil producers' cartel said on Tuesday in its monthly report, standing by its previous forecast. World oil demand in 2009 this year was expected to contract by 1.56 million barrels per day (bpd) to 84.05 million bpd, the Organization of Petroleum Exporting Countries said in its September report.A month ago, OPEC had been pencilling in a fractionally bigger contraction of 1.65 million bpd for this year.
Then, "in 2010, global demand is forecast to return to growth following two years of consecutive declines, increasing 0.5 million bpd to stand at 84.6 million bpd," the cartel said.That figure was unchanged from the previous report.Improved economic activity in the United States last month was helping world oil demand to stabilise, OPEC said."The US is playing a significant role in world oil demand, showing a comeback and reducing the contraction from 0.7 million bpd in July to almost flat in August. This is due to improved economic activity, summer driving consumption and the low base in the same month of 2008," the report explained.
On top of this, oil demand was strong in developing countries such as China, India and the Middle East.Those same regions would remain the driving force behind world oil demand growth next year, OPEC continued."As seen in recent years, most of the growth will take place in non-OECD (Organisation for Economic Cooperation and Development), mainly China, India, the Middle East and Latin America," it said.Overall, "in anticipation of a slow economic recovery next year, world oil demand growth is expected at 500,000 bpd," the report said.
Source: AFP
Monday 14 September 2009
World Bank Raised GDP Growth For Indonesia
The World Bank has raised its 2009 Indonesia growth forecast to 4.3 percent from 3.5 percent, largely due to the strong domestic market and increased government spending on stimulus measures, the bank’s quarterly report released on Monday said.
“Indonesia’s large domestic market, along with the fact that it was never highly dependent on exports, has always been the country’s saving grace in this global financial crisis,” said Joachim von Amsberg, the World Bank’s country director for Indonesia. “These factors, coupled with a strong banking sector and prudent macroeconomic management, have allowed Indonesia to weather the storm on a much stronger footing than its regional neighbors.”
The anticipated recovery is in line with an improving global economy, he said. Most of the nation’s major export markets exited recession by mid-year and prices for the country’s commodity exports have gradually recovered from their late-2008 declines. “The mid-2009 trend of gradual recovery is to continue over the coming year and a half,” said World Bank senior economist Shubham Chauduri, who was one of the principal authors of the quarterly report.
“Domestic demand is likely to continue as the main driver of growth, as the government continues to disburse its fiscal stimulus and, in 2010, investors regain confidence.” The report says that the domestic financial sector is going from strength to strength, with a robust banking industry and the return of foreign investors. Employment is also expected to grow faster than the labor force. The bank’s 2009 growth forecast is in line with the government’s estimate of 4.3 percent. It expects growth to reach 5.4 percent in 2010, also up from its earlier prediction of 5 percent, although still lower than the government’s forecast of 5.5 percent.
The World Bank also said the budget deficit would be lower this year, estimating it at 2.2 percent, compared with the government’s earlier forecast of 2.5 percent. However, the bank also sees inflation rising to 9 percent by the end of year, compared with the government’s forecast of 5 percent.
“Indonesia’s large domestic market, along with the fact that it was never highly dependent on exports, has always been the country’s saving grace in this global financial crisis,” said Joachim von Amsberg, the World Bank’s country director for Indonesia. “These factors, coupled with a strong banking sector and prudent macroeconomic management, have allowed Indonesia to weather the storm on a much stronger footing than its regional neighbors.”
The anticipated recovery is in line with an improving global economy, he said. Most of the nation’s major export markets exited recession by mid-year and prices for the country’s commodity exports have gradually recovered from their late-2008 declines. “The mid-2009 trend of gradual recovery is to continue over the coming year and a half,” said World Bank senior economist Shubham Chauduri, who was one of the principal authors of the quarterly report.
“Domestic demand is likely to continue as the main driver of growth, as the government continues to disburse its fiscal stimulus and, in 2010, investors regain confidence.” The report says that the domestic financial sector is going from strength to strength, with a robust banking industry and the return of foreign investors. Employment is also expected to grow faster than the labor force. The bank’s 2009 growth forecast is in line with the government’s estimate of 4.3 percent. It expects growth to reach 5.4 percent in 2010, also up from its earlier prediction of 5 percent, although still lower than the government’s forecast of 5.5 percent.
The World Bank also said the budget deficit would be lower this year, estimating it at 2.2 percent, compared with the government’s earlier forecast of 2.5 percent. However, the bank also sees inflation rising to 9 percent by the end of year, compared with the government’s forecast of 5 percent.
Eitzen Chemical Bondholders grand temporary waiver
Eitzen Chemical bondholders grant temporary waiver(Sep 11 2009) Eitzen Chemical has won an important decision to postpone loan repayments.
At a bondholders' meeting held on 8th September 2009, Eitzen Chemical obtained consent for a proposed temporary waiver of bond loan covenants.
This is in relation to the bond loan consisting of a US dollar tranche and a Norwegian kroner tranche, which the company proposed a temporary waiver until 1st October 2009 of certain loan covenants, including the value adjusted equity ratio.
At a bondholders' meeting held on 8th September 2009, Eitzen Chemical obtained consent for a proposed temporary waiver of bond loan covenants.
This is in relation to the bond loan consisting of a US dollar tranche and a Norwegian kroner tranche, which the company proposed a temporary waiver until 1st October 2009 of certain loan covenants, including the value adjusted equity ratio.
OSG gets loan from Chinese Ex-Im Bank
Overseas Shipholding Group Inc. said it has entered into a $389 million loan agreement for new ships with the Export-Import Bank of China. OSG said this is the first financing arrangement that the China Ex-Im Bank has extended to a U.S. company. Borrowings under the 12-year secured facility will be used toward financing three very large crude carriers and two Aframax crude oil tankers constructed in China. The two Aframaxes are the Overseas Yosemite and Overseas Yellowstone, delivered in the first half of this year.
Thursday 3 September 2009
MISC liquidates 4 chemical tankers
MISC Bhd has completed the en-bloc sale of its Anggerik Class vessels comprising four 29,900 deadweight tonne (DWT) single-hull chemical tankers for US$14 million.These vessels are built between 1989 and 1991.
Jacob Stolt-Nielsen to step down as Chairman of the Stolt-Nielsen S.A. Board of Directors
LONDON, September 1, 2009 - Stolt-Nielsen S.A. (Oslo Børs: SNI)
announced today that Jacob Stolt-Nielsen, who founded the Company and
served as its Chairman since 1959, will step down as Chairman
effective December 15, 2009, the 50 year anniversary date of the
Company. He will continue to serve as a Director of the Board.
Christer Olsson, who has been a Director of SNSA since 1993, has been
nominated to succeed Mr. Stolt-Nielsen.
Mr. Olsson is Vice Chairman of Wallenius Lines AB and has extensive
shipping-industry experience.
Commenting on the transition, Mr. Stolt-Nielsen, said, "It has been
my privilege to lead this Company and its people for the last 50
years. I step down as Chairman with sadness, but at the same time
with an extraordinary sense of satisfaction and confidence, knowing
that Mr. Olsson as Chairman, and Niels G. Stolt-Nielsen, the Chief
Executive Officer, and his management team, will continue to capably
operate the Company going forward. I anticipate this transition with
the peace of mind that comes from knowing that SNSA is in good hands
and in good order."
Mr. Olsson said, "Jacob's remarkable achievements speak for
themselves. I enthusiastically look forward to the opportunity to
carry forth his legacy of success."
In addition to his responsibilities at Wallenius, Mr. Olsson also
serves as a director on the boards of Transatlantic AB, Atlantic
Container Line AB, United European Car Carriers and Singapore
Shipping Corporation. He holds a Bachelor of Law degree from
Stockholm University and is a Swedish citizen.
Source: Stolt-Neilsen
announced today that Jacob Stolt-Nielsen, who founded the Company and
served as its Chairman since 1959, will step down as Chairman
effective December 15, 2009, the 50 year anniversary date of the
Company. He will continue to serve as a Director of the Board.
Christer Olsson, who has been a Director of SNSA since 1993, has been
nominated to succeed Mr. Stolt-Nielsen.
Mr. Olsson is Vice Chairman of Wallenius Lines AB and has extensive
shipping-industry experience.
Commenting on the transition, Mr. Stolt-Nielsen, said, "It has been
my privilege to lead this Company and its people for the last 50
years. I step down as Chairman with sadness, but at the same time
with an extraordinary sense of satisfaction and confidence, knowing
that Mr. Olsson as Chairman, and Niels G. Stolt-Nielsen, the Chief
Executive Officer, and his management team, will continue to capably
operate the Company going forward. I anticipate this transition with
the peace of mind that comes from knowing that SNSA is in good hands
and in good order."
Mr. Olsson said, "Jacob's remarkable achievements speak for
themselves. I enthusiastically look forward to the opportunity to
carry forth his legacy of success."
In addition to his responsibilities at Wallenius, Mr. Olsson also
serves as a director on the boards of Transatlantic AB, Atlantic
Container Line AB, United European Car Carriers and Singapore
Shipping Corporation. He holds a Bachelor of Law degree from
Stockholm University and is a Swedish citizen.
Source: Stolt-Neilsen
Wednesday 2 September 2009
All bad things must end - economists say recession is over
Wednesday, 02 September 2009
The most severe economic recession since the Great Depression is history, economists said Tuesday, after key early data for economic conditions in August came in much stronger than expected. Early on Tuesday, there was a report of a sharp jump in the Institute for Supply Management's factory index. The index rose above the key psychological 50% threshold indicating expansion for the first time since Jan. 2008.
"The rise in the ISM manufacturing overall activity index to a level firmly above 50 and the surge in the new orders index to the highest level since December 2004 are the clearest signs yet that the recession is over," said John Ryding, economist at RDQ Economics in New York.
Millan Mulraine, economics strategist at TD Securities agreed.
"Given the very good historical performance of this indicator in predicting U.S. economy activity, the [ISM] report provided further evidence that the U.S. economic recession may have now come to an end," Mulraine said in a note to clients.
Economists are calling for an inventory-driven recovery. With goods on their shelves now at low levels, businesses will have to order more in order to restock. This could turn into a virtuous cycle leading to more and more production.
"Even if it is slow and cautious, the change from drawdown to build up will require additional production and the process will take a long time to complete," said Joel Naroff, president of Naroff Economic Advisors.
Once purchasing managers are confident in stronger demand, "not only will they restock, but they should also begin to unleash pent-up hiring, capital spending, etc," said Steve Stanley, chief economist at RBS Capital.
"In our view, if/when we get to that point, the recovery will have crossed the point of no return," Stanley said.
Hold your horses
No official timing of the end of the downturn is expected for more than a year.
The National Bureau of Economic Research in Cambridge Mass. is the independent group given the responsibility for calling the end to recession. The firm is known to be very deliberate.
In the past two recessions, the NBER waited 20 months before pinpointing the trough.
That's because the NBER is mandated to certify a turning point, not forecast one, said Ed McKelvey, a senior economist at Goldman Sachs Group
For his part, McKelvey thinks the recession might have ended in June.
The nature of this recovery may delay the NBER further, economists said.
Economic research from Harvard professor Kenneth Rogoff suggests that economies are very slow to recover following severe financial crises.
Consumer demand, which accounts for more than half of U.S. economic activity, is expected to remain weak. And businesses are not expected to hire workers until they "see the whites in the eyes" of a vibrant economy, analysts said. The most recent forecasts from the White House, Federal Reserve, and the Congressional Budget Office all point to a "jobless recovery."
Questions about the durability of this recovery will remain on the radar screen for several months, according to Asha Bangalore, economist at Northern Trust in Chicago.
Pick a letter - W, V, or U. (with apologies to West Virginia University)
Letters are a quick short-hand for economists discussing the road ahead.
Analysts expecting the economy to weaken again speak in terms of a W-shape growth path. A quick turnaround is called a V-shape recovery, while a slow but steady recovery might look like a U.
There are strong arguments for each letter.
Some analysts are worried about a W or double dip. They note the recovery has been boosted by short-term initiatives like "cash for clunkers" in the auto sector, which has ended, and the first-time homebuyers tax credit that ends in November.
These programs can "pull spending forward," at the risk of a subsequent re-weakening of activity, said Joseph LaVorgna, chief U.S. economist at Deutsche Bank.
"It is possible this may happen to some degree, but we are confident the economy, as a whole, will not double-dip, because the drag from housing has dissipated and government stimulus spending is likely to add substantially to output over the next few quarters," LaVorgna wrote in a note to clients.
Sam Stovall, the chief investment strategist at Standard and Poor's Equity Research, says the improving economic is likely "to take root and actually make for more of a firm recovery." However, Stovall still looks for this recovery to take time and be a gradual improvement, and be more of "an elongated 'U'," as opposed to a 'V' shape bounce back.
Source: Marketwatch
The most severe economic recession since the Great Depression is history, economists said Tuesday, after key early data for economic conditions in August came in much stronger than expected. Early on Tuesday, there was a report of a sharp jump in the Institute for Supply Management's factory index. The index rose above the key psychological 50% threshold indicating expansion for the first time since Jan. 2008.
"The rise in the ISM manufacturing overall activity index to a level firmly above 50 and the surge in the new orders index to the highest level since December 2004 are the clearest signs yet that the recession is over," said John Ryding, economist at RDQ Economics in New York.
Millan Mulraine, economics strategist at TD Securities agreed.
"Given the very good historical performance of this indicator in predicting U.S. economy activity, the [ISM] report provided further evidence that the U.S. economic recession may have now come to an end," Mulraine said in a note to clients.
Economists are calling for an inventory-driven recovery. With goods on their shelves now at low levels, businesses will have to order more in order to restock. This could turn into a virtuous cycle leading to more and more production.
"Even if it is slow and cautious, the change from drawdown to build up will require additional production and the process will take a long time to complete," said Joel Naroff, president of Naroff Economic Advisors.
Once purchasing managers are confident in stronger demand, "not only will they restock, but they should also begin to unleash pent-up hiring, capital spending, etc," said Steve Stanley, chief economist at RBS Capital.
"In our view, if/when we get to that point, the recovery will have crossed the point of no return," Stanley said.
Hold your horses
No official timing of the end of the downturn is expected for more than a year.
The National Bureau of Economic Research in Cambridge Mass. is the independent group given the responsibility for calling the end to recession. The firm is known to be very deliberate.
In the past two recessions, the NBER waited 20 months before pinpointing the trough.
That's because the NBER is mandated to certify a turning point, not forecast one, said Ed McKelvey, a senior economist at Goldman Sachs Group
For his part, McKelvey thinks the recession might have ended in June.
The nature of this recovery may delay the NBER further, economists said.
Economic research from Harvard professor Kenneth Rogoff suggests that economies are very slow to recover following severe financial crises.
Consumer demand, which accounts for more than half of U.S. economic activity, is expected to remain weak. And businesses are not expected to hire workers until they "see the whites in the eyes" of a vibrant economy, analysts said. The most recent forecasts from the White House, Federal Reserve, and the Congressional Budget Office all point to a "jobless recovery."
Questions about the durability of this recovery will remain on the radar screen for several months, according to Asha Bangalore, economist at Northern Trust in Chicago.
Pick a letter - W, V, or U. (with apologies to West Virginia University)
Letters are a quick short-hand for economists discussing the road ahead.
Analysts expecting the economy to weaken again speak in terms of a W-shape growth path. A quick turnaround is called a V-shape recovery, while a slow but steady recovery might look like a U.
There are strong arguments for each letter.
Some analysts are worried about a W or double dip. They note the recovery has been boosted by short-term initiatives like "cash for clunkers" in the auto sector, which has ended, and the first-time homebuyers tax credit that ends in November.
These programs can "pull spending forward," at the risk of a subsequent re-weakening of activity, said Joseph LaVorgna, chief U.S. economist at Deutsche Bank.
"It is possible this may happen to some degree, but we are confident the economy, as a whole, will not double-dip, because the drag from housing has dissipated and government stimulus spending is likely to add substantially to output over the next few quarters," LaVorgna wrote in a note to clients.
Sam Stovall, the chief investment strategist at Standard and Poor's Equity Research, says the improving economic is likely "to take root and actually make for more of a firm recovery." However, Stovall still looks for this recovery to take time and be a gradual improvement, and be more of "an elongated 'U'," as opposed to a 'V' shape bounce back.
Source: Marketwatch
Odfjell buys and sells vessels with time charter swap
Wednesday, 02 September 2009
Odfjell yesterday, September 1st 2009, signed an agreement with Star Tankers Ltd, Isle of Man for the purchase of Jo Brevik (1986) built at Aker Florø Norway, 33,190 dwt with 17 stainless steel cargo tanks and 14 coated cargo tanks. Jo Brevik is a sister vessel of Bow Viking (1981). In addition, the agreement includes sales to Star Tanker Ltd. of Bow Pioneer (1982) and Bow Hunter (1983), 23,000 dwt with time charter back to Odfjell. At the same time, Odfjell terminates the current time charter agreement, also with Star Tankers Ltd., concerning Bow Asir (1982) and Bow Arar (1982). Star Tankers Ltd. is a company controlled by Torkel Alendal.The Odfjell Group is a leading participant in the global market of the seaborne transportation and storage of chemicals and other speciality bulk liquids. The Odfjell fleet exceeds 90 ships, trading both globally and regionally. The tank terminal division consists of eight fully or partially owned tank terminals and nine associated tank terminals strategically located. The Odfjell Group is headquarted in Bergen, Norway and has about 20 offices located world wide. Odfjell has about 3 700 employees and an annual gross revenue of about USD 1,5 billion.
Source: Odfjell
Odfjell yesterday, September 1st 2009, signed an agreement with Star Tankers Ltd, Isle of Man for the purchase of Jo Brevik (1986) built at Aker Florø Norway, 33,190 dwt with 17 stainless steel cargo tanks and 14 coated cargo tanks. Jo Brevik is a sister vessel of Bow Viking (1981). In addition, the agreement includes sales to Star Tanker Ltd. of Bow Pioneer (1982) and Bow Hunter (1983), 23,000 dwt with time charter back to Odfjell. At the same time, Odfjell terminates the current time charter agreement, also with Star Tankers Ltd., concerning Bow Asir (1982) and Bow Arar (1982). Star Tankers Ltd. is a company controlled by Torkel Alendal.The Odfjell Group is a leading participant in the global market of the seaborne transportation and storage of chemicals and other speciality bulk liquids. The Odfjell fleet exceeds 90 ships, trading both globally and regionally. The tank terminal division consists of eight fully or partially owned tank terminals and nine associated tank terminals strategically located. The Odfjell Group is headquarted in Bergen, Norway and has about 20 offices located world wide. Odfjell has about 3 700 employees and an annual gross revenue of about USD 1,5 billion.
Source: Odfjell
Nordea acquires Fionia Bank
Tuesday, 01 September 2009
Nordea continues to execute on its growth strategy and acquires the Danish Fionia Bank from Finansiel Stabilitet A/S. Nordea has signed an agreement to acquire Fionia Bank, excluding the ‘bad bank’ part, and thereby further strengthens its position and gets a very strong market position in the Funen region in Denmark. Nordea takes over leases and employees in the 29 branches, in total 400 employees.
In one go Nordea doubles its market share in the Funen region and will introduce its broad product offering to Fionia Bank’s customer base. By introducing Nordea’s operating model, sizeable cost synergies will be realised. Additional synergies will be achieved through Nordea’s competitive funding position.
The credit quality in the acquired bank is solid, since the ‘bad bank’ is separated out and is kept by Finansiel Stabilitet A/S. Impaired loans in the acquired portfolios are in line with the ratio in Nordea’s own Danish portfolio. – We have captured a unique opportunity. By acquiring Fionia we continue our growth in Denmark and get a very strong market position in the Funen region, to the benefit of both Fionia’s and Nordea’s customers and our shareholders, says Peter Schütze, Head of Nordic Banking.
In total the transaction means that Nordea acquires a customer portfolio comprising: 75,000 household customers 9,500 corporate customers Total lending of approx EUR 874m (DKK 6.5bn) The acquisition price is EUR 121m (DKK 900m). In addition Nordea will re-capitalise the bank. Nordea's lending in Nordic Banking Denmark amounted to EUR 68.9bn end-June, which means that the transaction increases the loan portfolio by approx. 1%. The deal is expected to have a clearly positive return on investment from 2011. The transaction is subject to approval from the Danish FSA and other relevant authorities. Nordea Corporate Finance has acted as financial adviser in connection with the transaction.
Source: Nordea
Nordea continues to execute on its growth strategy and acquires the Danish Fionia Bank from Finansiel Stabilitet A/S. Nordea has signed an agreement to acquire Fionia Bank, excluding the ‘bad bank’ part, and thereby further strengthens its position and gets a very strong market position in the Funen region in Denmark. Nordea takes over leases and employees in the 29 branches, in total 400 employees.
In one go Nordea doubles its market share in the Funen region and will introduce its broad product offering to Fionia Bank’s customer base. By introducing Nordea’s operating model, sizeable cost synergies will be realised. Additional synergies will be achieved through Nordea’s competitive funding position.
The credit quality in the acquired bank is solid, since the ‘bad bank’ is separated out and is kept by Finansiel Stabilitet A/S. Impaired loans in the acquired portfolios are in line with the ratio in Nordea’s own Danish portfolio. – We have captured a unique opportunity. By acquiring Fionia we continue our growth in Denmark and get a very strong market position in the Funen region, to the benefit of both Fionia’s and Nordea’s customers and our shareholders, says Peter Schütze, Head of Nordic Banking.
In total the transaction means that Nordea acquires a customer portfolio comprising: 75,000 household customers 9,500 corporate customers Total lending of approx EUR 874m (DKK 6.5bn) The acquisition price is EUR 121m (DKK 900m). In addition Nordea will re-capitalise the bank. Nordea's lending in Nordic Banking Denmark amounted to EUR 68.9bn end-June, which means that the transaction increases the loan portfolio by approx. 1%. The deal is expected to have a clearly positive return on investment from 2011. The transaction is subject to approval from the Danish FSA and other relevant authorities. Nordea Corporate Finance has acted as financial adviser in connection with the transaction.
Source: Nordea
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