Newbuilding ship prices to decline further in 2009

Amid slack demand and contract cancellations, prices of new buildings are expected to continue their downward trend set from the fall of this year up until today.

‘ This prediction was given by Clarksons at a latest report, where it is indicated that a significant drop in newbuilding prices should be expected for 2009, in fact such a fall is “inevitable”. This should happen, in order to generate newbuilding demand. “The yards can look forward to a very difficult year in which they can expect to spend more time addressing their clients’ problems than actually selling ships! It is at least some comfort to the yards in an otherwise gloomy environment that they can also expect to see their cost bases deflating as steel, equipment and labour costs all moderate so, they may well be able to protect their margins in the short term even if prices fall significantly” Clarksons said. Looking back in 2008, anyone involved in the shipping business can assert that it has been a year of mixed emotions. The first half of the year was a buoyant one, with high freight rates and a newbuilding market that was defying gravity in terms of pricing. According to Clarksons however, “the strength of prices disguised the looming problem that volume was thin and, although the yards were enjoying very high prices, demand was insufficient to replenish or extend their orderbooks as buyers baulked at ever higher prices.

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Eni acquires licenses in Gabon

Gabon: Italian oil and gas company Eni acquired two new offshore licenses and four onshore licenses in Gabon.

‘Together, the licenses cover 8,000 square kilometers (3,088 sq miles). Licenses D3 and D4 are in the conventional waters of the north Gabonese Basin. Licenses E2, F3, F4 and F7 are in the onshore basin. All the licenses have been attributed for a four-year exploratory phase, renewable for two periods of four and three years. The agreement, signed with the Gabonese government, is an application of Eni’s cooperation model in West Africa. The model integrates sustainable activity in the area with traditional hydrocarbon exploration and production. Technical and operational investments will be supported by initiatives for local communities and projects for training, research and development.

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HPH pulls out Thessaloniki bidding process

Athens: Greece’s second largest port has revealed that Hutchison Port Holdings and Greek pharmaceutical group Alapis, highest bidders for Thessaloniki port’s (OLTH) cargo facilities have pulled out of the tender.

‘The port said the two sides were about to draft contracts after the joint venture led by HPH, the port operating arm of conglomerate Hutchison Whampoa, prevailed in the tender to run and upgrade container facilities at OLTH. “The consortium of Hutchison Port Holdings, Hutchison Port Investments, Alapis and LYD informed OLTH that it is withdrawing its interest in the container facilities of the port,” OLTH said in a bourse filing. “The reasons for the withdrawal have to do with the economic crisis which has affected many sectors, especially shipping, and the difficulty of banks to finance Hutchison’s ambitious plans,” OLTH spokesperson Chrysanthi Athanasiou said. Greece, with two of the largest harbours in the eastern Mediterranean, launched tenders earlier this year to privatise the outdated port facilities at the northern city of Thessaloniki and Piraeus Port, which serves Athens. Greece’s conservative government wants to turn Piraeus and Thessaloniki ports into regional hubs and boost their cargo business.

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