Fitch Upgrade the Ratings for 8 Indonesian Banks from BB to BB+.
Those banks include PT Bank Mandiri Tbk, PT Bank Rakyat Indoensia, PT Bank Central Asia Tbk, PT Bank Internatnioal Indonesia Tbk, PT Bank CIMB Niaga Tbk, PT Bank Danamon Indonesia Tbk, PT Bank OCBC NISP Tbk, PT Bank UOB BUana.
Another testament that Indonesia's economy continues to improve even at the back of the severe global crisis.
Thursday 28 January 2010
Indonesia May Be Ready To Join BRICs, Fund Says
Indonesia looks increasingly like a worthy member of the economically enviable “BRIC” group of nations, following this week’s upgrade of its sovereign debt and a nod of recognition from influential global asset manager Templeton Asset Management After boasting Asia’s second-best performing stock market last year, the country may be ready for full-fledged membership in the BRIC group of major emerging nations, Templeton said. “Indonesia’s political and economic outlook has improved tremendously in recent years,” Templeton portfolio manager Dennis Lim wrote in a note on chairman Mark Mobius’s blog.
“So clearly, it would not look out of place beside the BRIC countries.” Inclusion in the category — Brazil, Russia, India and China — coined by Goldman Sachs chief economist Jim O’Neill may increase demand for Indonesian stocks. Investors should “stick with the BRICs,” a group that “tends to outperform in non-recession years,” Morgan Stanley strategists said last week. The Jakarta Composite Index rose 87 percent last year as the country largely skirted the global recession.
President Susilo Bambang Yudhoyono’s re-election in July boosted confidence that he will maintain policies that helped the economy, Southeast Asia’s biggest, expand by more than 6 percent annually in the two years until 2008. Growth may average 6.6 percent over the next five years, Yudhoyono said this month.
On Monday, Fitch Ratings raised Indonesia’s credit ratings to one level below investment grade. The move reflected the country’s economic resilience and an improving balance of payments, said Bank Indonesia Deputy Governor Hartadi Sarwono. Foreign-exchange reserves rose to $69 billion as of last week, he said. BRIC funds are gaining in popularity. “The BRICs theme, which played well in 2009, continues to resonate in early 2010,” according to EPFR Global, a Cambridge, Massachusetts-based funds tracker, on Jan. 21. In the third week of January, “dedicated BRIC equity funds recorded inflows of $182 million, right around their weekly average year-to-date versus the $103 million they averaged last year.”
Source: Bloomberg
“So clearly, it would not look out of place beside the BRIC countries.” Inclusion in the category — Brazil, Russia, India and China — coined by Goldman Sachs chief economist Jim O’Neill may increase demand for Indonesian stocks. Investors should “stick with the BRICs,” a group that “tends to outperform in non-recession years,” Morgan Stanley strategists said last week. The Jakarta Composite Index rose 87 percent last year as the country largely skirted the global recession.
President Susilo Bambang Yudhoyono’s re-election in July boosted confidence that he will maintain policies that helped the economy, Southeast Asia’s biggest, expand by more than 6 percent annually in the two years until 2008. Growth may average 6.6 percent over the next five years, Yudhoyono said this month.
On Monday, Fitch Ratings raised Indonesia’s credit ratings to one level below investment grade. The move reflected the country’s economic resilience and an improving balance of payments, said Bank Indonesia Deputy Governor Hartadi Sarwono. Foreign-exchange reserves rose to $69 billion as of last week, he said. BRIC funds are gaining in popularity. “The BRICs theme, which played well in 2009, continues to resonate in early 2010,” according to EPFR Global, a Cambridge, Massachusetts-based funds tracker, on Jan. 21. In the third week of January, “dedicated BRIC equity funds recorded inflows of $182 million, right around their weekly average year-to-date versus the $103 million they averaged last year.”
Source: Bloomberg
IMF Revised GDP Growth Forecast on Indonesia
IMF has revised the prediction on GDP growth on Indonesia from previous 4.8% to 5.5% for 2010. At the same time, it has also revised China economic growth as well.
Wednesday 27 January 2010
Top 10 product tanker charterers 2009
Clean fixtures rise 16% as spot rates hit bottom
Poten & Partners compiles list of top 10 charterers in 2009
Michelle Wiese Bockmann - Wednesday 27 January 2010
ROCK-bottom freight rates for product tankers saw the number of clean fixtures on the spot market rise by 16% in 2009 to 5,688, based on data from New York-based Poten & Partners.
Even though global demand for oil fell, the total number of fixtures for medium range tankers of between 37,500 dwt and 59,999 dwt actually rose by 22% in 2009 to 66...
Poten & Partners compiles list of top 10 charterers in 2009
Michelle Wiese Bockmann - Wednesday 27 January 2010
ROCK-bottom freight rates for product tankers saw the number of clean fixtures on the spot market rise by 16% in 2009 to 5,688, based on data from New York-based Poten & Partners.
Even though global demand for oil fell, the total number of fixtures for medium range tankers of between 37,500 dwt and 59,999 dwt actually rose by 22% in 2009 to 66...
StealthGas to take hit from Lauritzen resale cancellation
Nigel Lowry - Tuesday 26 January 2010
ATHENS-based StealthGas has confirmed cancellation of its purchase from Denmark’s Lauritzen group of a medium-range chemical product tanker newbuilding.The Greek company said it had engaged in “protracted negotiations with the seller of the Stealth Argentina in regard to various technical deficiencies identified in the design of the ve...
Source: Lloyd's List
ATHENS-based StealthGas has confirmed cancellation of its purchase from Denmark’s Lauritzen group of a medium-range chemical product tanker newbuilding.The Greek company said it had engaged in “protracted negotiations with the seller of the Stealth Argentina in regard to various technical deficiencies identified in the design of the ve...
Source: Lloyd's List
Tuesday 26 January 2010
IMF Revises Up Global Forecast to Near 4% for 2010
Wednesday, 27 January 2010
The global economy, battered by two years of crisis, is recovering faster than previously anticipated, with world growth bouncing back from negative territory in 2009 to a forecast 3.9 percent this year and 4.3 percent in 2011, the International Monetary Fund said in its latest forecast. But the recovery is proceeding at different speeds around the world, with emerging markets, led by Asia relatively vigorous, but advanced economies remaining sluggish and still dependent on government stimulus measures, the IMF said in an update to its World Economic Outlook, published on January 26.
“For the moment, the recovery is very much based on policy decisions and policy actions. The question is when does private demand come and take over. Right now it’s ok, but a year down the line, it will be a big question,” said IMF Chief Economist Olivier Blanchard in an IMF video interview.
IMF Managing Director Dominique Strauss-Kahn has warned that countries risk a return to recession if anti-crisis measures are withdrawn too soon.The IMF said it had revised upwards its earlier forecast for global growth by ¾ percentage point from the October 2009 forecast.Risk appetite returningAlong with the update to its forecast, the IMF also released a new assessment of global financial conditions in its Global Financial Stability Report (GFSR). It said that financial markets have rebounded since the lows of last March, the result of improving economic conditions and wide-ranging policy actions by governments.“Notwithstanding the recent sell-off, risk appetite has returned, equity markets have improved, and capital markets have reopened,” Jose Viñals, Director of the IMF’s Monetary and Capital Markets Department, said.But policymakers still face extraordinary challenges as they seek to unwind the unprecedented fiscal, monetary, and financial support they provided to keep their economies and financial markets from collapsing, the GFSR update pointed out.
Strength of U.S. consumption
The WEO forecast said that in advanced economies, the beginning of a rebuilding of corporate inventories and the unexpected strength of U.S. consumption had contributed to a rebound in confidence, and inflation was expected to remain contained. But high unemployment rates, rising public debt, and, in some countries, weak household balance sheets present further challenges to the recovery.The IMF report said that the varying pace of recovery across countries called for a differentiated response in the unwinding of measures used to stimulated the economy and combat the crisis.
Due to the still-fragile nature of the recovery, fiscal policies need to remain supportive of economic activity in the near term, and the fiscal stimulus planned for 2010 should be implemented fully. However, given growing concerns about fiscal sustainability, countries should also make progress in devising and communicating exit strategies.Financial sector repairCrucially, there remains a pressing need to continue repairing the financial sector in advanced and hardest-hit emerging economies. In these cases, policies are still needed to tackle bank’s impaired assets and restructuring. Unwinding the financial sector support measures gradual; it can be facilitated by incentives that make measures less attractive as conditions improve.
Policymakers will also need to move boldly to reform the financial sector with the objectives of reducing the risks of future instability and rethinking how the potential fallout of financial crises would be borne in the future, while at the same time making the sector more effective and resilient.At the same time, some emerging market countries will have to design policies to manage a surge of capital inflows. Macro-prudential policies can be used to address the potential for bubbles at an early stage by limiting a buildup in risks.
Source: IMF
The global economy, battered by two years of crisis, is recovering faster than previously anticipated, with world growth bouncing back from negative territory in 2009 to a forecast 3.9 percent this year and 4.3 percent in 2011, the International Monetary Fund said in its latest forecast. But the recovery is proceeding at different speeds around the world, with emerging markets, led by Asia relatively vigorous, but advanced economies remaining sluggish and still dependent on government stimulus measures, the IMF said in an update to its World Economic Outlook, published on January 26.
“For the moment, the recovery is very much based on policy decisions and policy actions. The question is when does private demand come and take over. Right now it’s ok, but a year down the line, it will be a big question,” said IMF Chief Economist Olivier Blanchard in an IMF video interview.
IMF Managing Director Dominique Strauss-Kahn has warned that countries risk a return to recession if anti-crisis measures are withdrawn too soon.The IMF said it had revised upwards its earlier forecast for global growth by ¾ percentage point from the October 2009 forecast.Risk appetite returningAlong with the update to its forecast, the IMF also released a new assessment of global financial conditions in its Global Financial Stability Report (GFSR). It said that financial markets have rebounded since the lows of last March, the result of improving economic conditions and wide-ranging policy actions by governments.“Notwithstanding the recent sell-off, risk appetite has returned, equity markets have improved, and capital markets have reopened,” Jose Viñals, Director of the IMF’s Monetary and Capital Markets Department, said.But policymakers still face extraordinary challenges as they seek to unwind the unprecedented fiscal, monetary, and financial support they provided to keep their economies and financial markets from collapsing, the GFSR update pointed out.
Strength of U.S. consumption
The WEO forecast said that in advanced economies, the beginning of a rebuilding of corporate inventories and the unexpected strength of U.S. consumption had contributed to a rebound in confidence, and inflation was expected to remain contained. But high unemployment rates, rising public debt, and, in some countries, weak household balance sheets present further challenges to the recovery.The IMF report said that the varying pace of recovery across countries called for a differentiated response in the unwinding of measures used to stimulated the economy and combat the crisis.
Due to the still-fragile nature of the recovery, fiscal policies need to remain supportive of economic activity in the near term, and the fiscal stimulus planned for 2010 should be implemented fully. However, given growing concerns about fiscal sustainability, countries should also make progress in devising and communicating exit strategies.Financial sector repairCrucially, there remains a pressing need to continue repairing the financial sector in advanced and hardest-hit emerging economies. In these cases, policies are still needed to tackle bank’s impaired assets and restructuring. Unwinding the financial sector support measures gradual; it can be facilitated by incentives that make measures less attractive as conditions improve.
Policymakers will also need to move boldly to reform the financial sector with the objectives of reducing the risks of future instability and rethinking how the potential fallout of financial crises would be borne in the future, while at the same time making the sector more effective and resilient.At the same time, some emerging market countries will have to design policies to manage a surge of capital inflows. Macro-prudential policies can be used to address the potential for bubbles at an early stage by limiting a buildup in risks.
Source: IMF
Monday 25 January 2010
Growth Probably Accelerated as 2009 Ended: U.S. Economy Preview
Monday, 25 January 2010
The U.S. economy probably grew in the closing months of 2009 at the fastest pace in almost four years as factories stepped up production and companies purchased new equipment, economists said before reports this week. Gross domestic product expanded at a 4.6 percent pace from October through December, more than double the prior quarter’s growth rate and the strongest since the first three months of 2006, according to the median estimate of 74 economists surveyed by Bloomberg News. Other reports may show orders for durable goods increased and home sales declined. Manufacturers such as Intel Corp. are leading the recovery as growing demand and dwindling inventories prompt companies to speed up assembly lines. Slower consumer spending after the third-quarter’s “cash for clunkers” rebound is a reminder that 10 percent unemployment is causing Americans to hold back, one reason why the Federal Reserve may keep interest rates low. “Inventories are going to be responsible for at least half of the growth, if not more,” said Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez Inc. in New York. “There’s been an enormous amount of government stimulus that will be fading as we go through the year, so it’s unclear how much the economy can do on its own.” Fed policy makers will do their part to spur growth by keeping borrowing costs near zero after their two-day meeting this week, economists forecast in a Bloomberg survey. Central bankers, who meet Jan. 26-27, may reiterate their pledge to keep rates “exceptionally low” for “an extended period.” Fed Forecast The target rate for overnight lending among banks will stay in a range from zero to 0.25 percent through September before going up by half a point in the fourth quarter, according to the median forecast of economists surveyed earlier this month. The Commerce Department’s first estimate of fourth-quarter GDP is due Jan. 29. The world’s largest economy grew at a 2.2 percent pace from July through September, the first gain in more than a year, after shrinking 3.8 percent in the 12 months to June. That marked the worst recession since the 1930s. Stocks rallied last year on mounting signs the economic slump was ending. The Standard & Poor’s 500 Index climbed 65 percent in 2009 after reaching a 12-year low on March 9. Additional gains in the first part of this month evaporated last week after President Barack Obama proposed limiting risk- taking at banks and as concern grew that China will have to do more to cool its economy. Chip Demand Intel, the world’s largest chipmaker, posted its biggest quarterly revenue in more than a year last quarter, a sign the computer industry has emerged from last year’s global recession. “My expectation for 2010 is that we’re going to see robust unit growth,” Chief Financial Officer Stacy Smith said in an interview this month. “The consumer segments of the market will stay pretty strong, and I do believe we’re going to see a resurgence in PC client sales.” Smaller declines in inventories contributed to growth for a second consecutive quarter as companies picked up the pace of orders, economists said. Stockpiles rose 0.4 percent in November, marking the first back-to-back increase in more than a year. Consumer spending, which accounts for about 70 percent of the economy, probably increased at a 1.8 percent annual rate after rising at a 2.8 percent pace in the previous three months, the GDP report is also projected to show. Third-quarter purchases received a boost from the government’s auto-incentive program that offered buyers discounts to trade in older cars and trucks for new, more fuel- efficient vehicles. The plan expired in August. Business Investment Orders for long-lasting goods probably rose 2 percent in December, economists project the Commerce Department will report Jan. 28. While companies are buying new equipment, they’re reluctant to hire workers. Payrolls fell by 85,000 last month after a 4,000 gain in November that was the first increase in almost two years. The U.S. has lost 7.2 million since the start of the recession in December 2007, the most of any slowdown in the post-World War II era. The jobless rate held at 10 percent in December, the Labor Department said on Jan. 8. A jump in the number of discouraged workers leaving the labor market kept the rate from rising. Property values are showing signs of stabilizing. A report from S&P/Case-Shiller, due Jan. 26, may show home prices in 20 U.S. metropolitan areas declined 5 percent in the year ended in November, the smallest drop since September 2007, according to the survey median. Existing home sales dropped 9.8 percent in December, the month after a government tax credit was originally due to expire, the survey showed ahead of a Jan. 25 report from the National Association of Realtors. Purchases decreased to a 5.9 million pace from 6.54 million the prior month. New-home sales last month rose 4.2 percent to an annual pace of 370,000, according to the survey median before a Commerce Department report on Jan. 27.
Source: Bloomberg
The U.S. economy probably grew in the closing months of 2009 at the fastest pace in almost four years as factories stepped up production and companies purchased new equipment, economists said before reports this week. Gross domestic product expanded at a 4.6 percent pace from October through December, more than double the prior quarter’s growth rate and the strongest since the first three months of 2006, according to the median estimate of 74 economists surveyed by Bloomberg News. Other reports may show orders for durable goods increased and home sales declined. Manufacturers such as Intel Corp. are leading the recovery as growing demand and dwindling inventories prompt companies to speed up assembly lines. Slower consumer spending after the third-quarter’s “cash for clunkers” rebound is a reminder that 10 percent unemployment is causing Americans to hold back, one reason why the Federal Reserve may keep interest rates low. “Inventories are going to be responsible for at least half of the growth, if not more,” said Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez Inc. in New York. “There’s been an enormous amount of government stimulus that will be fading as we go through the year, so it’s unclear how much the economy can do on its own.” Fed policy makers will do their part to spur growth by keeping borrowing costs near zero after their two-day meeting this week, economists forecast in a Bloomberg survey. Central bankers, who meet Jan. 26-27, may reiterate their pledge to keep rates “exceptionally low” for “an extended period.” Fed Forecast The target rate for overnight lending among banks will stay in a range from zero to 0.25 percent through September before going up by half a point in the fourth quarter, according to the median forecast of economists surveyed earlier this month. The Commerce Department’s first estimate of fourth-quarter GDP is due Jan. 29. The world’s largest economy grew at a 2.2 percent pace from July through September, the first gain in more than a year, after shrinking 3.8 percent in the 12 months to June. That marked the worst recession since the 1930s. Stocks rallied last year on mounting signs the economic slump was ending. The Standard & Poor’s 500 Index climbed 65 percent in 2009 after reaching a 12-year low on March 9. Additional gains in the first part of this month evaporated last week after President Barack Obama proposed limiting risk- taking at banks and as concern grew that China will have to do more to cool its economy. Chip Demand Intel, the world’s largest chipmaker, posted its biggest quarterly revenue in more than a year last quarter, a sign the computer industry has emerged from last year’s global recession. “My expectation for 2010 is that we’re going to see robust unit growth,” Chief Financial Officer Stacy Smith said in an interview this month. “The consumer segments of the market will stay pretty strong, and I do believe we’re going to see a resurgence in PC client sales.” Smaller declines in inventories contributed to growth for a second consecutive quarter as companies picked up the pace of orders, economists said. Stockpiles rose 0.4 percent in November, marking the first back-to-back increase in more than a year. Consumer spending, which accounts for about 70 percent of the economy, probably increased at a 1.8 percent annual rate after rising at a 2.8 percent pace in the previous three months, the GDP report is also projected to show. Third-quarter purchases received a boost from the government’s auto-incentive program that offered buyers discounts to trade in older cars and trucks for new, more fuel- efficient vehicles. The plan expired in August. Business Investment Orders for long-lasting goods probably rose 2 percent in December, economists project the Commerce Department will report Jan. 28. While companies are buying new equipment, they’re reluctant to hire workers. Payrolls fell by 85,000 last month after a 4,000 gain in November that was the first increase in almost two years. The U.S. has lost 7.2 million since the start of the recession in December 2007, the most of any slowdown in the post-World War II era. The jobless rate held at 10 percent in December, the Labor Department said on Jan. 8. A jump in the number of discouraged workers leaving the labor market kept the rate from rising. Property values are showing signs of stabilizing. A report from S&P/Case-Shiller, due Jan. 26, may show home prices in 20 U.S. metropolitan areas declined 5 percent in the year ended in November, the smallest drop since September 2007, according to the survey median. Existing home sales dropped 9.8 percent in December, the month after a government tax credit was originally due to expire, the survey showed ahead of a Jan. 25 report from the National Association of Realtors. Purchases decreased to a 5.9 million pace from 6.54 million the prior month. New-home sales last month rose 4.2 percent to an annual pace of 370,000, according to the survey median before a Commerce Department report on Jan. 27.
Source: Bloomberg
Sunday 24 January 2010
Fitch Upgrades Indonesia to 'BB+'; Outlook Stable
Fitch Ratings-Singapore/London-25 January 2010:
Fitch Ratings has today upgraded the Republic of Indonesia's Long-term foreign and local currency Issuer Default ratings (IDRs) to 'BB+' from 'BB', respectively. The Outlooks on the ratings are Stable. At the same time, the agency upgraded the Country Ceiling to 'BBB-' from 'BB+' and affirmed the Short-term foreign currency IDR at 'B'. "The rating action reflects Indonesia's relative resilience to the severe global financial stress test of 2008-2009 which has been underpinned by continued improvements in the country's public finances, a fundamental sovereign rating strength, and a material easing of external financing constraints," says Ai Ling Ngiam, Director, in Fitch's Sovereign Ratings team.
Public debt ratios continued to decline throughout 2009, falling to 30% of GDP (compared to a 'BB' median of 40%), and international reserves including gold, rose 28% to USD66bn, as the economy recorded the eighth-highest economic growth rate (4.6%) among all Fitch-rated sovereigns. Indonesia's sovereign creditworthiness is backed by its strong public finance track record relative to its peers. Indonesia was one of 15 Fitch-rated sovereigns which registered a year-on-year decline in the general government (GG) debt position as a share of GDP in 2009.
With the current macroeconomic path and fiscal policy framework, Indonesia's public debt/GDP looks set to continue on a downward trend during Fitch's forecast period. "There is fiscal flexibility for the authorities to embark on an ambitious agenda to tackle longer-term developmental issues, such as addressing infrastructure constraints and investment promotion as well as raising industrial and export competitiveness, which are central to further alleviating Fitch's concerns on risks surrounding Indonesia's external finances," adds Miss Ngiam.
However, Fitch says longer-term developmental priorities risk becoming sidelined if fiscal expenditure inefficiencies remain unresolved due to delays in electricity tariff and fuel price adjustments. As a result, incentivised smuggling of oil may add volatility to the balance of payments through abnormal spikes in oil imports. Further, sudden investor risk aversion and capital outflows may arise on the back of more severe or abrupt administrative price adjustments in 2011. Looking ahead, Indonesia's relatively shallow capital markets remain vulnerable to risks surrounding a reversal of high-yield carry trades or sudden emerging-market risk aversion. Policy credibility against potential "hot money" reversals would be bolstered by further strengthening of the monetary policy framework, including achieving greater price and exchange rate stability; deepening of the country's debt and capital markets; and building additional foreign exchange buffers.
The economy is better placed than before to face abrupt portfolio outflows on the back of sudden investor risk aversion or oil price hikes, due to exchange rate flexibility, further improvement in external finances resulting from foreign reserves (FXR) accumulation, lower gross external financing requirements, and a stronger international liquidity position. Fitch forecasts Indonesia's gross external financing requirement, including short-term external debt, at 43% of FXR in 2010, compared with the 'BB' median of 82%. Indonesia's international liquidity ratio is forecast at 192% in 2010 (liquid external assets > liquid external liabilities), the highest since 1990 and higher than the 'BB' median of 185%.
This provides a buffer against temporary closures of international capital markets or sudden reversals in capital flows. In contrast to heightened market volatility and corporate sector loan restructuring during previous periods of global stress, Indonesia fared relatively well during the global financial crisis, which proved to be an important test case for dollar demand pressures, exchange rate stresses and capital flows. Fitch estimates that rollover rates on private sector external debt exceeded 160% during Q109-Q309 as corporates secured sufficient financing from abroad to meet scheduled debt repayment.
Corporates likely benefited from improved profitability, external debt leveraging since the Asian financial crisis and favourable relationships with affiliate foreign parent companies and affiliates. In addition, the systemically important larger banks' low reliance on wholesale funding did not require sovereign support measures and are now well-placed for stronger credit expansion.
Applicable criteria, 'Sovereign Rating Methodology', dated 16 October 2009, are available on www.fitchratings.com. Contact: Ai Ling Ngiam, Singapore, +65 6796 7216. Media Relations: Shivani Sundralingam, Singapore, Tel: + 65 6796 7215, Email: shivani.sundralingam@fitchratings.com. Investor Relations: Shirley Oh, Singapore, +65 6796 7213 / shirley.oh@fitchratings.com. Investor Relations: Wayne Li, Hong Kong, +852 2263 9915 / wayne.li@fitchratings.com. Ratings Desk: Maggie Tang, Hong Kong, +852 2263 9898 / maggie.tang@fitchratings.com. Additional information is available on www.fitchratings.com.
Fitch Ratings has today upgraded the Republic of Indonesia's Long-term foreign and local currency Issuer Default ratings (IDRs) to 'BB+' from 'BB', respectively. The Outlooks on the ratings are Stable. At the same time, the agency upgraded the Country Ceiling to 'BBB-' from 'BB+' and affirmed the Short-term foreign currency IDR at 'B'. "The rating action reflects Indonesia's relative resilience to the severe global financial stress test of 2008-2009 which has been underpinned by continued improvements in the country's public finances, a fundamental sovereign rating strength, and a material easing of external financing constraints," says Ai Ling Ngiam, Director, in Fitch's Sovereign Ratings team.
Public debt ratios continued to decline throughout 2009, falling to 30% of GDP (compared to a 'BB' median of 40%), and international reserves including gold, rose 28% to USD66bn, as the economy recorded the eighth-highest economic growth rate (4.6%) among all Fitch-rated sovereigns. Indonesia's sovereign creditworthiness is backed by its strong public finance track record relative to its peers. Indonesia was one of 15 Fitch-rated sovereigns which registered a year-on-year decline in the general government (GG) debt position as a share of GDP in 2009.
With the current macroeconomic path and fiscal policy framework, Indonesia's public debt/GDP looks set to continue on a downward trend during Fitch's forecast period. "There is fiscal flexibility for the authorities to embark on an ambitious agenda to tackle longer-term developmental issues, such as addressing infrastructure constraints and investment promotion as well as raising industrial and export competitiveness, which are central to further alleviating Fitch's concerns on risks surrounding Indonesia's external finances," adds Miss Ngiam.
However, Fitch says longer-term developmental priorities risk becoming sidelined if fiscal expenditure inefficiencies remain unresolved due to delays in electricity tariff and fuel price adjustments. As a result, incentivised smuggling of oil may add volatility to the balance of payments through abnormal spikes in oil imports. Further, sudden investor risk aversion and capital outflows may arise on the back of more severe or abrupt administrative price adjustments in 2011. Looking ahead, Indonesia's relatively shallow capital markets remain vulnerable to risks surrounding a reversal of high-yield carry trades or sudden emerging-market risk aversion. Policy credibility against potential "hot money" reversals would be bolstered by further strengthening of the monetary policy framework, including achieving greater price and exchange rate stability; deepening of the country's debt and capital markets; and building additional foreign exchange buffers.
The economy is better placed than before to face abrupt portfolio outflows on the back of sudden investor risk aversion or oil price hikes, due to exchange rate flexibility, further improvement in external finances resulting from foreign reserves (FXR) accumulation, lower gross external financing requirements, and a stronger international liquidity position. Fitch forecasts Indonesia's gross external financing requirement, including short-term external debt, at 43% of FXR in 2010, compared with the 'BB' median of 82%. Indonesia's international liquidity ratio is forecast at 192% in 2010 (liquid external assets > liquid external liabilities), the highest since 1990 and higher than the 'BB' median of 185%.
This provides a buffer against temporary closures of international capital markets or sudden reversals in capital flows. In contrast to heightened market volatility and corporate sector loan restructuring during previous periods of global stress, Indonesia fared relatively well during the global financial crisis, which proved to be an important test case for dollar demand pressures, exchange rate stresses and capital flows. Fitch estimates that rollover rates on private sector external debt exceeded 160% during Q109-Q309 as corporates secured sufficient financing from abroad to meet scheduled debt repayment.
Corporates likely benefited from improved profitability, external debt leveraging since the Asian financial crisis and favourable relationships with affiliate foreign parent companies and affiliates. In addition, the systemically important larger banks' low reliance on wholesale funding did not require sovereign support measures and are now well-placed for stronger credit expansion.
Applicable criteria, 'Sovereign Rating Methodology', dated 16 October 2009, are available on www.fitchratings.com. Contact: Ai Ling Ngiam, Singapore, +65 6796 7216. Media Relations: Shivani Sundralingam, Singapore, Tel: + 65 6796 7215, Email: shivani.sundralingam@fitchratings.com. Investor Relations: Shirley Oh, Singapore, +65 6796 7213 / shirley.oh@fitchratings.com. Investor Relations: Wayne Li, Hong Kong, +852 2263 9915 / wayne.li@fitchratings.com. Ratings Desk: Maggie Tang, Hong Kong, +852 2263 9898 / maggie.tang@fitchratings.com. Additional information is available on www.fitchratings.com.
MSC to purchase Sevmash's 43.000-ton 4 chemical tankers
Saturday, 23 January 2010
Murmansk Shipping Company (MSC JSC) plans purchasing four chemical tankers with deadweight of 43.000 tons built by Sevmash JSC (Severodvinsk, Arkhangelsk Region), said the MSC General Director Alexander Medvedev in his interview with journalists. "Just recently we have had a delegation of Chinese shipbuilders, with whom we have been negotiating over construction of a series of 30.000-ton bulkers, in order to continue the program of our company’s fleet upgrade. We also carry out negotiations with several Russian enterprises, such as "Sevmash" over construction of such tankers. The Sevmash is currently building on its dockyards four chemical tankers with deadweight of 43.000 tons, and the MSC has entered into negotiations for the purchase of the tankers," Mr. Medvedev was quoted as saying by the MSC’s newspaper. Murmansk Shipping Company is a highly integrated corporation, which includes the fleet of three Russian shipping companies: Murmansk Sea Shipping Company JSC, Northern Sea Shipping Company JSC, Northern River Shipping Company JSC, with total deadweight of about 1.2 million tons. By August 4, 2004 presidential decree Murmansk Shipping Company is listed among top strategic enterprises and strategic joint-stock companies. Russian government holds 25.5% stocks in the authorized capital of the company.
Source: PortNews
Murmansk Shipping Company (MSC JSC) plans purchasing four chemical tankers with deadweight of 43.000 tons built by Sevmash JSC (Severodvinsk, Arkhangelsk Region), said the MSC General Director Alexander Medvedev in his interview with journalists. "Just recently we have had a delegation of Chinese shipbuilders, with whom we have been negotiating over construction of a series of 30.000-ton bulkers, in order to continue the program of our company’s fleet upgrade. We also carry out negotiations with several Russian enterprises, such as "Sevmash" over construction of such tankers. The Sevmash is currently building on its dockyards four chemical tankers with deadweight of 43.000 tons, and the MSC has entered into negotiations for the purchase of the tankers," Mr. Medvedev was quoted as saying by the MSC’s newspaper. Murmansk Shipping Company is a highly integrated corporation, which includes the fleet of three Russian shipping companies: Murmansk Sea Shipping Company JSC, Northern Sea Shipping Company JSC, Northern River Shipping Company JSC, with total deadweight of about 1.2 million tons. By August 4, 2004 presidential decree Murmansk Shipping Company is listed among top strategic enterprises and strategic joint-stock companies. Russian government holds 25.5% stocks in the authorized capital of the company.
Source: PortNews
Tanker owners have many reasons to cheer for
Saturday, 23 January 2010
As most analysts expected from the beginning of 2010 in their annual projections, the tanker market seems to be getting all the ingredients necessary for a swift recovery after a more than challenging 2009. Just this week, Mcquilling Services, a leading US-based business consultancy reiterated this notion, by releasing its latest tanker report estimates for the period 2010-2014.
The company said that it expects 2010 to see the beginnings of a recovery in the growth of international trade volumes, including increasing crude oil and petroleum products transportation demand. “Given the oil demand destruction seen in 2009, it will be at least until 2012 before oil consumption is back to 2008 levels. The long-awaited end-date for mandatory IMO 13-G phase-out of single-hull tankers arrives in 2010, with vessels not receiving Condition Assessment Scheme (CAS) extensions to be removed” the company said. But it also warned that excess tonnage supply continues to challenge a corresponding recovery in freight rates in the tanker sector.
We anticipate another year with a historically high number of new vessels slated to enter the trading fleet, overtaking exits and resulting in net fleet growth in 2010 across most sectors.Still, last week proved one of the best in months, especially for owners of larger crude tanker tonnage. In its latest weekly report UK-based Gibson said that after averaging just below $30,000/day in 2009, VLCC spot earnings (tce) on the benchmark trade from the Middle East Gulf to Japan (TD3) briefly spiked above the 100,000/day mark a few days ago, the highest level since early October 2008. On the same note, Suezmax daily earnings on the key route from West Africa to the US Atlantic Coast (TD5) ore than doubled from a monthly average of $25,500/day in December to a high of 66,500/day earlier this week, once again the highest level of returns in more than a year.
In its comment Gibson mentioned that “there are a number of factors behind such an impressive and rapid spike in spot freight ates for larger crude tankers. Generally, trading conditions in the VLCC market had been mproving during the last two months of 2009, with TD3 spot earnings rising from around 22,000/day in the first week of November to $47,000/day by the end of the year. Thus, themore finely tuned balance between tanker supply and demand by the end of 2009 (not least supported by ongoing floating storage) appeared to be the foundation which underpinned the latest hike in freight rates. As a result, only a minor extra push was needed to transform “just enough” tonnage supply into “extremely limited availability” the broker said.
It went further on to explain that such a push was offered by high levels of chartering activity out of West Africa and the Middle East Gulf in the first half of January as well as further weather related delays across the Northern Hemisphere. This resulted in rapidly diminishing spot tonnage availability, with spot tanker supply in West Africa becoming particularly tight. Suezmax tankers in West Africa also saw more opportunities, as charterers had to split cargoes into smaller parcels due to the lack of VLCCs in the region.Still, it appears that the market has peaked for now, with with both VLCC and Suezmax spot rates and earnings down from the highs reached earlier in the week, as charterers withheld enquiry from the market. “However, the spike that we have seen indicates how finely the market is balanced and how little it takes for rates to sky rocket. And we also should not forget that although the market is weakening, TD3 earnings are still at $88,000/day and TD5 earnings are at $42,000/day”, Gibson concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide
As most analysts expected from the beginning of 2010 in their annual projections, the tanker market seems to be getting all the ingredients necessary for a swift recovery after a more than challenging 2009. Just this week, Mcquilling Services, a leading US-based business consultancy reiterated this notion, by releasing its latest tanker report estimates for the period 2010-2014.
The company said that it expects 2010 to see the beginnings of a recovery in the growth of international trade volumes, including increasing crude oil and petroleum products transportation demand. “Given the oil demand destruction seen in 2009, it will be at least until 2012 before oil consumption is back to 2008 levels. The long-awaited end-date for mandatory IMO 13-G phase-out of single-hull tankers arrives in 2010, with vessels not receiving Condition Assessment Scheme (CAS) extensions to be removed” the company said. But it also warned that excess tonnage supply continues to challenge a corresponding recovery in freight rates in the tanker sector.
We anticipate another year with a historically high number of new vessels slated to enter the trading fleet, overtaking exits and resulting in net fleet growth in 2010 across most sectors.Still, last week proved one of the best in months, especially for owners of larger crude tanker tonnage. In its latest weekly report UK-based Gibson said that after averaging just below $30,000/day in 2009, VLCC spot earnings (tce) on the benchmark trade from the Middle East Gulf to Japan (TD3) briefly spiked above the 100,000/day mark a few days ago, the highest level since early October 2008. On the same note, Suezmax daily earnings on the key route from West Africa to the US Atlantic Coast (TD5) ore than doubled from a monthly average of $25,500/day in December to a high of 66,500/day earlier this week, once again the highest level of returns in more than a year.
In its comment Gibson mentioned that “there are a number of factors behind such an impressive and rapid spike in spot freight ates for larger crude tankers. Generally, trading conditions in the VLCC market had been mproving during the last two months of 2009, with TD3 spot earnings rising from around 22,000/day in the first week of November to $47,000/day by the end of the year. Thus, themore finely tuned balance between tanker supply and demand by the end of 2009 (not least supported by ongoing floating storage) appeared to be the foundation which underpinned the latest hike in freight rates. As a result, only a minor extra push was needed to transform “just enough” tonnage supply into “extremely limited availability” the broker said.
It went further on to explain that such a push was offered by high levels of chartering activity out of West Africa and the Middle East Gulf in the first half of January as well as further weather related delays across the Northern Hemisphere. This resulted in rapidly diminishing spot tonnage availability, with spot tanker supply in West Africa becoming particularly tight. Suezmax tankers in West Africa also saw more opportunities, as charterers had to split cargoes into smaller parcels due to the lack of VLCCs in the region.Still, it appears that the market has peaked for now, with with both VLCC and Suezmax spot rates and earnings down from the highs reached earlier in the week, as charterers withheld enquiry from the market. “However, the spike that we have seen indicates how finely the market is balanced and how little it takes for rates to sky rocket. And we also should not forget that although the market is weakening, TD3 earnings are still at $88,000/day and TD5 earnings are at $42,000/day”, Gibson concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide
Pertamina looks to expand
(Jan 22 2010) PT Berlian Laju Tanker (BLT) has won a charter contract worth up to $90 mill from state-owned Indonesian oil and gas company, PT Pertamina.
Under the terms of the contract, BLT will provide a VLGC to PT Pertamina for a period of up to seven years.
To service the contract, BLT will purchase the 'Commander N', a VLGC built by Japan's NKK Corporation.
In a filing to the Singapore Stock Exchange, BLT declined to say how much it is paying for the vessel.
According to local reports, Pertamina plans to buy up to 12 tankers valued at $333 mill this year.
The tanker order is expected to be finalised between 2012 and 2013, Suhartoko, Pertamina's senior vice president of shipping reportedly said last weekend to local newspapers.
He said that four of the 12 vessels have already been through the tender process. “These four vessels alone will require a total investment of $128 mill,” he said.
The four vessels will be LPG carriers, two with a capacity of 3,500 cu m and two with a capacity of 23,000 cu m.
Suhartoko said Pertamina was still awaiting shareholder approval for the procurement of eight other tankers, including three of 3,500 dwt each; one of 6,500 dwt; two of 17,500 dwt each; an LPG tanker with a capacity of 3,500 cu m and a Very Large Gas Carrier (VLGC) with a capacity of about 45.000 dwt.
He added that Pertamina would buy the smaller capacity tankers from domestic companies, but for the big one, Pertamina would go overseas.
Suhartoko said Pertamina was currently operating 170 tankers and expect to acquire 47 more by 2014.
Source: Tanker Operator
Under the terms of the contract, BLT will provide a VLGC to PT Pertamina for a period of up to seven years.
To service the contract, BLT will purchase the 'Commander N', a VLGC built by Japan's NKK Corporation.
In a filing to the Singapore Stock Exchange, BLT declined to say how much it is paying for the vessel.
According to local reports, Pertamina plans to buy up to 12 tankers valued at $333 mill this year.
The tanker order is expected to be finalised between 2012 and 2013, Suhartoko, Pertamina's senior vice president of shipping reportedly said last weekend to local newspapers.
He said that four of the 12 vessels have already been through the tender process. “These four vessels alone will require a total investment of $128 mill,” he said.
The four vessels will be LPG carriers, two with a capacity of 3,500 cu m and two with a capacity of 23,000 cu m.
Suhartoko said Pertamina was still awaiting shareholder approval for the procurement of eight other tankers, including three of 3,500 dwt each; one of 6,500 dwt; two of 17,500 dwt each; an LPG tanker with a capacity of 3,500 cu m and a Very Large Gas Carrier (VLGC) with a capacity of about 45.000 dwt.
He added that Pertamina would buy the smaller capacity tankers from domestic companies, but for the big one, Pertamina would go overseas.
Suhartoko said Pertamina was currently operating 170 tankers and expect to acquire 47 more by 2014.
Source: Tanker Operator
Thursday 21 January 2010
Maersk LNG takes delivery of MAERSK MERIDIAN
21. januar 2010 09:50
GAS CARRIER OF THE WEEK: M/V "MAERSK MERIDIAN", the last in a series of six 165,500 m³ DF electric LNG carriers from Samsung Heavy Industries Co. Ltd., was taken over by Maersk LNG on 15 January 2010 in South Korea.
M/V "MAERSK MERIDIAN" is 286 metres in length and has a service speed of 19.6 knots on design draft. The propulsion train consists of two electrical motors coupled to the propeller shaft via a reduction gear. The four Wärtsilä dual fuel engines installed are equipped with exhaust gas economisers, creating a fuel saving of approximately 5 tons per day. MAERSK MERIDIAN has a "triple" fuel application, enabling the vessel to operate on gas, heavy fuel or diesel oil. The gas handling system has been upgraded with a boil-off gas (BOG) cooler which helps reducing the cargo loss by minimising the liquid used as a cooling medium when the propulsion plant is operated in gas mode. This ensures efficient transportation to our customers.
MAERSK MERIDIAN can accommodate 38 crewmembers and passengers. The delivery of MAERSK MERIDIAN also marks the completion of the present series of LNG carriers for A.P. Møller – Mærsk and brings the LNG fleet to a total of eight vessels. SpecificationGENERAL Vessel name: MAERSK MERIDIAN Hull number: Hull No. 1633 Builder and yard: Samsung Heavy Industries Year built: 2010 Country of registry: Denmark Port of registration: Skovshoved Classification society: Bureau Veritas DIMENSIONS, TONNAGE Length overall: 286,175 m Beam (mid): 43,4 m Depth (mid): 26,6 m Design draft (mid): 11,9 m Summer draft (mid): 12,1 m TONNAGE Deadweight at design draft: 79998,3 MT Gross register tonnage: 104169 Net register tonnage: 32537 Suez Canal net tonnage: 98436.45 MACHINERY Propelling machinery: Type and make: Wartsila 3 X 12V50DF 1 X 6L50DF Maximum continuous rating: 26200 KW @ 86 rpm Total available power: 39900 KW Normal service power: 30000 KW CARGO TANKS Total capacity: 100.0/98.5% full 165682,7 m3 / 163197,5 m3 Number of cargo tanks: 4 CARGO PUMP Number: 8 Type and make: Ebara Rated capacity of each pump: 1750 m3/hour
GAS CARRIER OF THE WEEK: M/V "MAERSK MERIDIAN", the last in a series of six 165,500 m³ DF electric LNG carriers from Samsung Heavy Industries Co. Ltd., was taken over by Maersk LNG on 15 January 2010 in South Korea.
M/V "MAERSK MERIDIAN" is 286 metres in length and has a service speed of 19.6 knots on design draft. The propulsion train consists of two electrical motors coupled to the propeller shaft via a reduction gear. The four Wärtsilä dual fuel engines installed are equipped with exhaust gas economisers, creating a fuel saving of approximately 5 tons per day. MAERSK MERIDIAN has a "triple" fuel application, enabling the vessel to operate on gas, heavy fuel or diesel oil. The gas handling system has been upgraded with a boil-off gas (BOG) cooler which helps reducing the cargo loss by minimising the liquid used as a cooling medium when the propulsion plant is operated in gas mode. This ensures efficient transportation to our customers.
MAERSK MERIDIAN can accommodate 38 crewmembers and passengers. The delivery of MAERSK MERIDIAN also marks the completion of the present series of LNG carriers for A.P. Møller – Mærsk and brings the LNG fleet to a total of eight vessels. SpecificationGENERAL Vessel name: MAERSK MERIDIAN Hull number: Hull No. 1633 Builder and yard: Samsung Heavy Industries Year built: 2010 Country of registry: Denmark Port of registration: Skovshoved Classification society: Bureau Veritas DIMENSIONS, TONNAGE Length overall: 286,175 m Beam (mid): 43,4 m Depth (mid): 26,6 m Design draft (mid): 11,9 m Summer draft (mid): 12,1 m TONNAGE Deadweight at design draft: 79998,3 MT Gross register tonnage: 104169 Net register tonnage: 32537 Suez Canal net tonnage: 98436.45 MACHINERY Propelling machinery: Type and make: Wartsila 3 X 12V50DF 1 X 6L50DF Maximum continuous rating: 26200 KW @ 86 rpm Total available power: 39900 KW Normal service power: 30000 KW CARGO TANKS Total capacity: 100.0/98.5% full 165682,7 m3 / 163197,5 m3 Number of cargo tanks: 4 CARGO PUMP Number: 8 Type and make: Ebara Rated capacity of each pump: 1750 m3/hour
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Wednesday 20 January 2010
Tuesday 19 January 2010
RS Platou: Chemical Outlook - POSITIVE
Shipping Quarterly, January 2010
Please find enclosed the latest edition of our Shipping Quarterly.
The publication covers an equity market and shipping markets outlook in addition to covering 26 international shipping companies. Full coverage of Teekay Corporation has been added since our previous report.
For more details, please see the attached file (our apologies for the file size).
Our recommendations:
Executive summary:
Chemical tankers
Outlook: - Positive
Market expected to turn demand driven with improving earnings and asset values. Share prices trading at below mid-cycle EBITDA multiples and mostly with a discount to net asset value and book values, hence good risk/reward.
Tankers
Outlook: - Mixed
We have forecasted a stronger 2010 for some time as single hull phase out are expected to reduce fleet growth and a rebound in OPEC output is expected to improve tanker demand. However, stock picking will be increasingly important as some names already reflect our positive view on 2010 after recent rally.
Car Carriers
Outlook: - Positive
Pent-up demand and restocking expected to give car carriers a demand boost. Supply side still seeing a substantial orderbook but owners are showing good scrapping and cancellation discipline. Expected to turn demand driven again from low levels. Wilh.Wilhelmsen trading at attractive valuation.
LNG
Outlook: - Steadily improving
Demand to outpace supply over the next three years as newbuilding deliveries decline and significant volumes from new LNG capacity are added. For the Golar companies, new FSRU deals to Golar Energy may trigger while Golar LNG is an attractive yield case.
Drybulk
Outlook: - Mixed
Fleet utilization and average earnings expected to see few changes from 2009. However, we believe the market is starting out in the high end of the volatility range and that rates will gradually decline through the year. Valuation is showing huge differences, hence pair trading is still recommended.
Container
Outlook: - Still challenging
Past the worst, though owners will have to struggle at least through 2010 with earnings around operational costs before the tonnage overhang is absorbed. Distress risk especially among non-operators in this period. Demand expected to rebound first on the intra-Asia trades, hence favouring the smaller vessels. No coverage yet of container companies.
Please find enclosed the latest edition of our Shipping Quarterly.
The publication covers an equity market and shipping markets outlook in addition to covering 26 international shipping companies. Full coverage of Teekay Corporation has been added since our previous report.
For more details, please see the attached file (our apologies for the file size).
Our recommendations:
Executive summary:
Chemical tankers
Outlook: - Positive
Market expected to turn demand driven with improving earnings and asset values. Share prices trading at below mid-cycle EBITDA multiples and mostly with a discount to net asset value and book values, hence good risk/reward.
Tankers
Outlook: - Mixed
We have forecasted a stronger 2010 for some time as single hull phase out are expected to reduce fleet growth and a rebound in OPEC output is expected to improve tanker demand. However, stock picking will be increasingly important as some names already reflect our positive view on 2010 after recent rally.
Car Carriers
Outlook: - Positive
Pent-up demand and restocking expected to give car carriers a demand boost. Supply side still seeing a substantial orderbook but owners are showing good scrapping and cancellation discipline. Expected to turn demand driven again from low levels. Wilh.Wilhelmsen trading at attractive valuation.
LNG
Outlook: - Steadily improving
Demand to outpace supply over the next three years as newbuilding deliveries decline and significant volumes from new LNG capacity are added. For the Golar companies, new FSRU deals to Golar Energy may trigger while Golar LNG is an attractive yield case.
Drybulk
Outlook: - Mixed
Fleet utilization and average earnings expected to see few changes from 2009. However, we believe the market is starting out in the high end of the volatility range and that rates will gradually decline through the year. Valuation is showing huge differences, hence pair trading is still recommended.
Container
Outlook: - Still challenging
Past the worst, though owners will have to struggle at least through 2010 with earnings around operational costs before the tonnage overhang is absorbed. Distress risk especially among non-operators in this period. Demand expected to rebound first on the intra-Asia trades, hence favouring the smaller vessels. No coverage yet of container companies.
MISC builds up its chemical tanker fleet
Tuesday, 19 January 2010
MISC Berhad (MISC) reports it has held the naming ceremony of its 10th chemical tanker, the 38,000dwt Bunga Allium, the third in a series of eight IMO II chemical tankers ordered from the STX shipyard in South Korea by MISC. Bunga Allium was delivered on January 5 and has sailed on her first voyage from South Korea to Pasir Gudang. Her delivery brings the number of MISC’s owned and in-chartered chemical tankers to 21, further strengthening MISC’s position as a reliable and safe transporter of chemicals and vegetable oils.The coming into service of Bunga Allium is part of MISC’s rapid chemical fleet expansion programme, which will see MISC receiving a total of 15 chemical tankers over the next 2 years. The naming ceremony was held at the Malaysia Marine and Heavy Engineering (MMHE) Yard in Pasir Gudang, Johor, officiated by Ms. Ngau Sue Ching, daughter of Ngau Boon Keat, Chairman of Dialog Group (Dialog). MISC and Dialog are joint venture partners in developing, managing and operating a tank terminal at the Port of Tanjung Langsat, Johor, Malaysia. Also present at the ceremony were MISC President/Chief Executive Officer (CEO),En. Amir Hamzah Azizan and the President and Chief Shipbuilding Officer (CSO) of STX Shipyard, G.S. Chung.
Source: SeaTradeAsia-Online
MISC Berhad (MISC) reports it has held the naming ceremony of its 10th chemical tanker, the 38,000dwt Bunga Allium, the third in a series of eight IMO II chemical tankers ordered from the STX shipyard in South Korea by MISC. Bunga Allium was delivered on January 5 and has sailed on her first voyage from South Korea to Pasir Gudang. Her delivery brings the number of MISC’s owned and in-chartered chemical tankers to 21, further strengthening MISC’s position as a reliable and safe transporter of chemicals and vegetable oils.The coming into service of Bunga Allium is part of MISC’s rapid chemical fleet expansion programme, which will see MISC receiving a total of 15 chemical tankers over the next 2 years. The naming ceremony was held at the Malaysia Marine and Heavy Engineering (MMHE) Yard in Pasir Gudang, Johor, officiated by Ms. Ngau Sue Ching, daughter of Ngau Boon Keat, Chairman of Dialog Group (Dialog). MISC and Dialog are joint venture partners in developing, managing and operating a tank terminal at the Port of Tanjung Langsat, Johor, Malaysia. Also present at the ceremony were MISC President/Chief Executive Officer (CEO),En. Amir Hamzah Azizan and the President and Chief Shipbuilding Officer (CSO) of STX Shipyard, G.S. Chung.
Source: SeaTradeAsia-Online
Monday 18 January 2010
BLT Won VLGC Contract worth up to USD90mil
Demikian diungkapkan Direktur BLTA Kevin Wong kepada BEI, tadi malam. "Periode kerjasama ini hingga 7 tahun dan kontrak ini merupakan kontrak pertama yang diberikan kepada perusahaan Indonesia," kata Kevin Wong.
Menurut Kevin, untuk memenuhi kontrak tersebut, Berlian Laju Tanker untuk membeli Commander N, sebuah kapal VLGC dengan total kapasitas sebesar 78,543 CBM yang dibandingkan oleh NKK Corporation, Jepang. Dengan diterima kapal itu, BLT akan mengganti bendera kapal tersbeut dengan kapal berbendera Indonesia dan meregistrasikannya di Indonesia sesuai dengan komitmen BLTA atas UU Pelayaran Indonesia No 17 Tahun 2008 Tentang Pelayaran.
Kapal itu juga secara spesifik dipilih Peraturan Indoensia yaitu Permendag Nomor 63/M-DAG/PER/12/2009 yang menghruskan umur kapal yang dikonversikan menjadi berbendera Indonesia dan terdaftar di Indonesia tidak boleh melebihi batas usia 20 tahun untuk memastikan kualitas dan standar yang tinggi atas kapal tersebut.
"Hal ini sangat penting untuk mengingat kebanyakan kapal yang digunakan di Perairan Indonesia berusia lebih dari 20 tahun," katanya.
Dengan rencana konversi bendera atas kapal Commander N ini, industri perkapalan Indonesia telah mengambil langkah besar guna mendukung komitmen strategis pemerintah dalam upaya untuk menggunakan sumber daya gas di seluruh pengganti minyak bumi.
"Kapal ini juga akan menandai era baru dalam perkembangan industri perkapalan Indonesia dimana kapal tersebut akan menjadi kapal VLGC pertama yang berbendera Indonesia dan merupakan kapal tanker gas terbesar diantara semua kapal tanker yang terdaftar di Indonesia," pungkasnya.
Kapal ini akan menjadi tambahan penting bagi perseroan yang kini memiliki kekuatan asrmada yang terdiri dari 104 kapal termasuk kapal-kapal yang masih dalam tahap pembangunan. [san/cms]
Source: Inilah.com
Menurut Kevin, untuk memenuhi kontrak tersebut, Berlian Laju Tanker untuk membeli Commander N, sebuah kapal VLGC dengan total kapasitas sebesar 78,543 CBM yang dibandingkan oleh NKK Corporation, Jepang. Dengan diterima kapal itu, BLT akan mengganti bendera kapal tersbeut dengan kapal berbendera Indonesia dan meregistrasikannya di Indonesia sesuai dengan komitmen BLTA atas UU Pelayaran Indonesia No 17 Tahun 2008 Tentang Pelayaran.
Kapal itu juga secara spesifik dipilih Peraturan Indoensia yaitu Permendag Nomor 63/M-DAG/PER/12/2009 yang menghruskan umur kapal yang dikonversikan menjadi berbendera Indonesia dan terdaftar di Indonesia tidak boleh melebihi batas usia 20 tahun untuk memastikan kualitas dan standar yang tinggi atas kapal tersebut.
"Hal ini sangat penting untuk mengingat kebanyakan kapal yang digunakan di Perairan Indonesia berusia lebih dari 20 tahun," katanya.
Dengan rencana konversi bendera atas kapal Commander N ini, industri perkapalan Indonesia telah mengambil langkah besar guna mendukung komitmen strategis pemerintah dalam upaya untuk menggunakan sumber daya gas di seluruh pengganti minyak bumi.
"Kapal ini juga akan menandai era baru dalam perkembangan industri perkapalan Indonesia dimana kapal tersebut akan menjadi kapal VLGC pertama yang berbendera Indonesia dan merupakan kapal tanker gas terbesar diantara semua kapal tanker yang terdaftar di Indonesia," pungkasnya.
Kapal ini akan menjadi tambahan penting bagi perseroan yang kini memiliki kekuatan asrmada yang terdiri dari 104 kapal termasuk kapal-kapal yang masih dalam tahap pembangunan. [san/cms]
Source: Inilah.com
BLT’s quick fix
Indonesia’s Berlian Laju Tanker (BLT) says it has been awarded a charter contract from compatriot oil and gas major Pertamina.
BLT was reported last week to have bought the Commander N.
BLT will employ the 78,500-cbm Commander N (ex-Berge Commander, built 1992) to fulfill the time-charter arrangement.
The very large gas carrier (VLGC) will be fixed for a period of up to seven years.
The contract is valued at approximately $90m.
As TradeWinds reported earlier this week, the Commander N was purchased by BLT from US-based shipowner General Ore for approximately $35m.
The vessel was reported to be earning $35,000 per day on a five-year storage charter to Pertamina.
Upon delivery, the VLGC is to be reflagged in the Indonesian registry.
The vessel will be the first-ever Indonesian-flagged VLGC.
BLT says the contract “marks a new era for the development of the Indonesian shipping industry.”
Source: Tradewinds
BLT was reported last week to have bought the Commander N.
BLT will employ the 78,500-cbm Commander N (ex-Berge Commander, built 1992) to fulfill the time-charter arrangement.
The very large gas carrier (VLGC) will be fixed for a period of up to seven years.
The contract is valued at approximately $90m.
As TradeWinds reported earlier this week, the Commander N was purchased by BLT from US-based shipowner General Ore for approximately $35m.
The vessel was reported to be earning $35,000 per day on a five-year storage charter to Pertamina.
Upon delivery, the VLGC is to be reflagged in the Indonesian registry.
The vessel will be the first-ever Indonesian-flagged VLGC.
BLT says the contract “marks a new era for the development of the Indonesian shipping industry.”
Source: Tradewinds
Wednesday 13 January 2010
Iran unlikely to risk blocking Strait of Hormuz
Saturday, 09 January 2010
Iran is unlikely to risk blocking or mining the Strait of Hormuz if tension with the West rises, because it stands to lose vital oil revenues from closing the strategic waterway and lacks the military capability. Iran has threatened to close the strait a vital route for world oil supplies, if it is attacked over its nuclear ambitions.Some Iran watchers say Tehran could opt to block the strait if more severe sanctions are imposed. Western powers suspect Iran's nuclear activities are aimed at developing atomic weapons, not generating electricity as Tehran insists.Analysts believe the threat itself is enough to raise oil prices to well above $100 a barrel, potentially damaging a still fragile global economic recovery."
Oil prices rose by around $12 a barrel when Israel went into Lebanon in 2006 and neither of those countries are even involved in oil production," said Paul Harris, head of natural resources risk management at Bank of Ireland."You'd be looking at least double that kind of jump from an event on that scale in the region."Many analysts say Tehran cannot afford to risk a prolonged disruption of the narrow waterway, which borders Iran's coastline at the mouth of the Gulf, and through which 40 percent of all seaborne oil trade, about 17 million barrels, passes daily.Iran itself exports around 2.4 million barrels daily -- most of it via the Strait of Hormuz."They would cut their own throats because two-thirds of the Iranian government's budget comes from exports from the same strait," said J. Peter Pham, an adviser on strategic matters to U.S. and foreign governments."Iran gains more from the threat of closing the strait than actually closing it.""
FRAUGHT WITH PROBLEMS"
The strait, just 21 miles wide at its narrowest point, lies between Oman and Iran. Neighbouring oil-producing countries, including Saudi Arabia, the world's largest crude oil exporter, are dependent on its shipping lanes."Closing the strait would reduce Iran's leverage in the region as it would put Persian Gulf countries squarely in the camp of America," Iran analyst Meir Javedanfar said, adding that it could tempt them into financing Iranian opposition movements.Many analysts believe that, if Iran retaliated, it would choose to mine the strait's sea lanes as it did during the Iran-Iraq war in the 1980s.Military analysts believe Iran has three mine-laying ships and three mine-laying helicopters, plus three Russian-built Kilo class submarines."Military operations on the offence are fraught with problems," said Eugene Gholz, professor of national security policy at the University of Texas."
The Iranians would have to do it over and over again every day to maintain the disruption."Global intelligence company Stratfor said the strait's cramped, shallow waters made submarine activity difficult."In any event, the Iranian navy does not have enough Kilos to have any confidence in its ability to sustain submarine operations for any meaningful period after hostilities began," it said in a study.
REVOLUTIONARY GUARDS
Some analysts said double-hulled oil tankers were able to withstand damage from mines more than their single-hulled predecessors, which were targeted in the 1980s when Iran and Iraq fired on each other's vessels during the "tanker war."John Dalby, chief executive of the maritime security company MRM which provides risk assessments and supplies former military personnel to ships in the region, said mines did not represent a real risk to tankers."Bearing in mind mines detonate under water, there is little risk of a spark-induced explosion," he said.Pham said Iran would have to sink three or four very large crude carriers daily, each holding up to 2 million barrels of oil, to have a significant effect on supply."This is nearly impossible," he said. "They can cause a shock, they can cause psychological panic, but their actual capacity to do something is not there."Military analysts have not ruled out Iran using speedboats to attack tanker traffic.The U.S. Office of Naval Intelligence said in a study last year Iran's Revolutionary Guards had control of smaller and faster boats which had "serious firepower" including torpedoes and the Iranian-made Kowsar anti-ship cruise missiles.However, few believe Iran will take that course because of fears of severe retaliation by the West, given that the U.S. Fifth Fleet is based in the region."That would be far too provocative. It would unleash hell," MRM's Dalby said.
Source: Reuters
Iran is unlikely to risk blocking or mining the Strait of Hormuz if tension with the West rises, because it stands to lose vital oil revenues from closing the strategic waterway and lacks the military capability. Iran has threatened to close the strait a vital route for world oil supplies, if it is attacked over its nuclear ambitions.Some Iran watchers say Tehran could opt to block the strait if more severe sanctions are imposed. Western powers suspect Iran's nuclear activities are aimed at developing atomic weapons, not generating electricity as Tehran insists.Analysts believe the threat itself is enough to raise oil prices to well above $100 a barrel, potentially damaging a still fragile global economic recovery."
Oil prices rose by around $12 a barrel when Israel went into Lebanon in 2006 and neither of those countries are even involved in oil production," said Paul Harris, head of natural resources risk management at Bank of Ireland."You'd be looking at least double that kind of jump from an event on that scale in the region."Many analysts say Tehran cannot afford to risk a prolonged disruption of the narrow waterway, which borders Iran's coastline at the mouth of the Gulf, and through which 40 percent of all seaborne oil trade, about 17 million barrels, passes daily.Iran itself exports around 2.4 million barrels daily -- most of it via the Strait of Hormuz."They would cut their own throats because two-thirds of the Iranian government's budget comes from exports from the same strait," said J. Peter Pham, an adviser on strategic matters to U.S. and foreign governments."Iran gains more from the threat of closing the strait than actually closing it.""
FRAUGHT WITH PROBLEMS"
The strait, just 21 miles wide at its narrowest point, lies between Oman and Iran. Neighbouring oil-producing countries, including Saudi Arabia, the world's largest crude oil exporter, are dependent on its shipping lanes."Closing the strait would reduce Iran's leverage in the region as it would put Persian Gulf countries squarely in the camp of America," Iran analyst Meir Javedanfar said, adding that it could tempt them into financing Iranian opposition movements.Many analysts believe that, if Iran retaliated, it would choose to mine the strait's sea lanes as it did during the Iran-Iraq war in the 1980s.Military analysts believe Iran has three mine-laying ships and three mine-laying helicopters, plus three Russian-built Kilo class submarines."Military operations on the offence are fraught with problems," said Eugene Gholz, professor of national security policy at the University of Texas."
The Iranians would have to do it over and over again every day to maintain the disruption."Global intelligence company Stratfor said the strait's cramped, shallow waters made submarine activity difficult."In any event, the Iranian navy does not have enough Kilos to have any confidence in its ability to sustain submarine operations for any meaningful period after hostilities began," it said in a study.
REVOLUTIONARY GUARDS
Some analysts said double-hulled oil tankers were able to withstand damage from mines more than their single-hulled predecessors, which were targeted in the 1980s when Iran and Iraq fired on each other's vessels during the "tanker war."John Dalby, chief executive of the maritime security company MRM which provides risk assessments and supplies former military personnel to ships in the region, said mines did not represent a real risk to tankers."Bearing in mind mines detonate under water, there is little risk of a spark-induced explosion," he said.Pham said Iran would have to sink three or four very large crude carriers daily, each holding up to 2 million barrels of oil, to have a significant effect on supply."This is nearly impossible," he said. "They can cause a shock, they can cause psychological panic, but their actual capacity to do something is not there."Military analysts have not ruled out Iran using speedboats to attack tanker traffic.The U.S. Office of Naval Intelligence said in a study last year Iran's Revolutionary Guards had control of smaller and faster boats which had "serious firepower" including torpedoes and the Iranian-made Kowsar anti-ship cruise missiles.However, few believe Iran will take that course because of fears of severe retaliation by the West, given that the U.S. Fifth Fleet is based in the region."That would be far too provocative. It would unleash hell," MRM's Dalby said.
Source: Reuters
Odfjell sells ship for recycling
Tuesday, 12 January 2010
Odfjell has entered into an agreement to sell the coated parcel tanker MT Bow Maasslot (38 039 dwt/built 1982) for recycling in India by the end of January 2010. The sales price is close to the book value. The vessel has Green Passport and Buyers undertake that the recycling yard shall submit a working plan corresponding to IMO guidelines for ship recycling.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 worldwide. Odfjell has about 3 700 employees and an annual gross revenue of about USD 1,5 billion.
Source: Odfjell
Odfjell has entered into an agreement to sell the coated parcel tanker MT Bow Maasslot (38 039 dwt/built 1982) for recycling in India by the end of January 2010. The sales price is close to the book value. The vessel has Green Passport and Buyers undertake that the recycling yard shall submit a working plan corresponding to IMO guidelines for ship recycling.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 worldwide. Odfjell has about 3 700 employees and an annual gross revenue of about USD 1,5 billion.
Source: Odfjell
Tuesday 12 January 2010
Stolt-Nielsen agrees to buy cancelled parcel tankers
Stolt-Nielsen S.A. (Oslo: SNI) says it has reached an agreement with Korea's SLS Shipbuilding Co. Ltd. (SLS) to buy four 44,000 dwt parcel tankers.
Stolt originally ordered the ships in June 2005. but had canceled the four newbuilding contracts, citing extensive construction delays.
The price of the ships under the agreement reached today is described as "in line with what is believed to be current newbuilding prices."
Terms of the agreement require SLS to deliver the four ships between mid-February and mid-July 2010.
Mr. Niels G. Stolt-Nielsen, Chief Executive Officer of Stolt-Nielsen S.A., said: "We are pleased to have reached this agreement with SLS, and it is now up to the yard to deliver these ships by the agreed dates."
Stolt originally ordered the ships in June 2005. but had canceled the four newbuilding contracts, citing extensive construction delays.
The price of the ships under the agreement reached today is described as "in line with what is believed to be current newbuilding prices."
Terms of the agreement require SLS to deliver the four ships between mid-February and mid-July 2010.
Mr. Niels G. Stolt-Nielsen, Chief Executive Officer of Stolt-Nielsen S.A., said: "We are pleased to have reached this agreement with SLS, and it is now up to the yard to deliver these ships by the agreed dates."
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