CSG Responds to Overcapacity in Newbuilding Market

first_imgzoom Responding to challenges in the newbuilding market plagued by overcapacity and decline in new orders, Chinese shipbuilding conglomerate COSCO Shipyard Group (CSG) has decided to switch focus so as to adapt to these changes.In 2014, due to the sluggish global economy, global shipbuilding orders declined 34.7% year-on-year to 39.69 million CGT.As a result, the company announced plans to direct its resources to specialized products such as the 3000+teu containerships, LR1/LR2/SUEZ shuttle tankers, small to mid-sized product oil tankers, module carriers and livestock carriers.“We expect the short term performance of the dry bulk shipping market and bulk carrier building market to remain sluggish. However, we can see some demand for eco-ships, semi-sub carriers as well as LNG and LPG carriers,” CSG said in a presentation at its annual general meeting held on April 24th.The key steps will see CSG strengthen its offshore repair and conversion market aimed at surpassing low-end competition and staying ahead of competition.“As falling oil prices have helped shipping companies to reduce the bunker cost, ship owners’ demand to own and repair vessels has increased. Upon the pending implementation deadlines for international regulations on ballast water treatment and exhaust gas emission reductions, the ship conversion market has expanded in 2014, and will further grow in 2015. Ship Repair and Conversion Market Meanwhile, although the global oil prices are on the decline, we can still see some demand for FPSO conversions.”“In addition, low oil prices have increased oil and gas consumptions. With the growth of clean energy such as LNG, the conversion market for FLNG and FSRU will continue to expand, especially in the Asia Pacific region,” the company added.The shipbuilder said that while maintaining a position in the drilling rig market, it aims to move into the construction of FPSOs and high-end offshore support vessels such as OCV and SSV.“We will also actively develop technologies for FSRU and FLNG and try to achieve breakthroughs in the conversion market of the above-mentioned projects,” the company revealed.CSG has six subsidiary shipyards, located in Dalian, Nantong, Qidong, Zhoushan, Guangdong and Shanghai.World Maritime News Stafflast_img read more

Lawyers seek extension of settlement talks in soybean suit

MEMPHIS, Tenn. — Lawyers on both sides of a federal lawsuit claiming a soybean seed company purposely sold faulty seeds to black farmers in Mississippi are asking a judge for more time to reach a settlement.U.S. District Judge John Fowlkes had set a Friday deadline for mediation talks in a lawsuit filed in Memphis, Tennessee, by a handful of black farmers against Stine Seed Co. A court filing Friday asks Fowlkes to extend the deadline by three weeks.The suit alleges Stine conspired with a seed salesman to sell defective seeds to the farmers because they are black. The suit claims the good seeds the farmers thought they had bought from Stine were replaced by inferior seeds before delivery.Adel, Iowa-based Stine says allegations including discrimination and fraud are baseless and irresponsible.The Associated Press read more

Bribery Commission takes three people to court

The Commission to investigate allegations of Bribery or Corruption today filed cases at the Colombo High Court against three people.Director Investigations Priyantha Chandrasiri said that the cases were filed in relation to two incidents on which investigations have been completed. One case relates to an incident which took place in 2013 where an officer of the Wildlife Conservation Department was accused of obtaining a bribe while another officer of the department assisted him to obtain the bribe.The Wildlife Conservation Department officer had allegedly obtained a Rs. 15,000 bribe. Both officers were later arrested. (Colombo Gazette) read more