A.P. Møller – Mærsk A/S Will Become An Integrated Transport And Logistics Company With Digitized and Individualized Customer Solutions.
Oil and oil related businesses, either individually or in combination, to be separated from A.P. Møller – Mærsk A/S. Maersk Oil will focus on optimizing and strengthening its strong position in the Danish, British and Norwegian parts of the North Sea.
Reorganising A.P. Møller – Mærsk A/S into two separate divisions; Transport & Logistics and Energy.
As announced on 23 June 2016, the Board of Directors has tasked the management of A.P. Møller – Mærsk A/S to perform a review focusing on the strategic and structural options for the Maersk Group with the objective of generating growth, increasing agilities and synergies and unlocking and maximising shareholder value with the long-term view.
The main growth focus of A.P. Møller – Mærsk A/S going forward will be delivering best in class transportation and logistics services as an integrated Transport & Logistics company. Building on the Group’s unique position within container transport and port operations, and significant position in supply chain management and freight forwarding, Transport & Logistics will leverage its leading position through new product offerings, digitalised services and individualised customer solutions.
The Board of Directors expect that the oil and oil related businesses in A.P. Møller – Mærsk A/S will require different solutions for future development including separation of entities individually or in combination from A.P. Møller – Mærsk A/S in the form of joint-ventures, mergers or listing. Depending on market development and structural opportunities, the objective is to find solutions for the oil and oil related businesses within 24 months.
To enable the new strategic direction the Board of Directors has decided to reorganise A.P. Møller – Mærsk A/S’ portfolio of businesses into two independent divisions; an integrated Transport & Logistics division and an Energy division. This will ensure focus on driving synergies and developing new products and services in Transport & Logistics as well as focus on separately developing structured solutions for our oil and oil related businesses.
The Board of Directors continues to focus on ensuring a strong capital structure and defined key financial ratio targets in line with an investment grade rating.
Chairman of the Board, Michael Pram Rasmussen says:
“The industries in which we are operating are very different, and both face very different underlying fundamentals and competitive environments. Separating our transport and logistics businesses and our oil and oil related businesses into two independent divisions will enable both to focus on their respective markets. This will increase the strategic flexibility by enhancing synergies between businesses in Transport & Logistics, while ensuring the agility to pursue individual strategic solutions for the oil and oil related businesses”.
Transport & Logistics – Focus on growth and synergies
Transport & Logistics will consist of Maersk Line, APM Terminals, Damco, Svitzer and Maersk Container Industry based on a one company structure with multiple brands. The mission of these businesses is to enable and facilitate global supply chains and provide opportunities for our customers to trade globally.
Since 2008, the Group has focused on building a lean transparent global conglomerate with each business unit operating on arm’s-length principles. Managing and operating the business activities in Transport & Logistics in a more integrated manner will enable profitable growth through stronger collaboration and disciplined capital allocation.
The strategy of Transport & Logistics rests on three pillars to deliver long term profitable growth.
Product offering and customer experience will be improved based on the combined capabilities of Maersk Line, APM Terminals and Damco in combination with industry leading digital solutions.
By operating as one entity, Transport & Logistics will be able to harvest synergies and optimize operations to secure the industry’s most effective and reliable network.
Strong capital discipline and better utilization of assets will be ensured. When making investments, acquisitions will be the preferred option.
The strategies for the individual businesses will be adjusted accordingly.
Maersk Line will grow market share organically and through acquisitions.
APM Terminals will focus on cost and utilization and increase its focus on operational excellence to enhance returns and deliver improved service to existing and new 3rd party customers.
Damco and Maersk Line will collaborate to deliver new innovative customer solutions supported by significant investments into digital technology.
Svitzer will pursue a growth strategy based on its market leading position and synergies with APM Terminals and Maersk Line will increasingly be explored.
Maersk Container Industry will collaborate with Maersk Line on technology development and efficient production planning.
Commercial as well as cost synergies will be unlocked by better utilization of existing assets and by the development of new digital solutions. We expect to deliver revenue growth, cost efficiency and margin improvements. The estimated synergies are expected to generate up to two percentage points ROIC improvement over a period of three years. No material synergies are expected in 2016.
Energy – Optimizing value
Energy will consist of Maersk Oil, Maersk Drilling, Maersk Supply Service and Maersk Tankers.
Long term growth in energy demand and sharp reductions in investments in the global E&P industry in recent years, leading to an expected reduction in oil supply in the coming years provide opportunities to grow Maersk Oil based on the company’s key technical competencies. Maersk Oil will adjust its current strategy to focus its portfolio in fewer geographies to gain scale in basins, particularly in the North Sea, where it can leverage its strong capabilities within subsurface modelling, well technology and efficient operations. Maersk Oil will aim to strengthen its portfolio through acquisitions or mergers.
Further, Maersk Oil will mature existing key development projects, while keeping exploration activities and expenses at a low level. While the strategic focus will be reflected in a disciplined capital allocation, investments in strategic projects already sanctioned or under development will continue as planned.
Maersk Drilling, Maersk Supply Services, and Maersk Tankers will continue to optimise their market position and operation with the existing fleet and order book. Additional investments in the Group’s offshore service businesses and Maersk Tankers will be limited.
Reorganisation and communication
Financial reporting for the new structure will be effectuated from the financial year 2017.
The registered management of A.P. Møller – Mærsk A/S will be composed and changed as follows:
Søren Skou will continue as Group CEO of A.P. Møller – Mærsk A/S and CEO of the Transport & Logistics division,
Claus V. Hemmingsen will be appointed Group Vice CEO of A.P. Møller – Mærsk A/S effective on 1 October 2016 and CEO for the Energy division,
Jakob Stausholm will be appointed Group CFO of A.P. Møller – Mærsk A/S as of 1 December 2016. On the same date, Group CFO Trond Westlie will step down as member of the registered management and leave the Group,
Jakob Thomasen will step down as member of the registered management and CEO of Maersk Oil effective on 1 October 2016 and will leave the Group on 1 November 2016.
Kim Fejfer will step down as member of the registered management effective on 1 October 2016 and as CEO of APM Terminals effective on 1 November 2016 when he will also leave the Group.
For further information about the individual members of management, please see the appendix.
Group CEO of A.P. Møller – Mærsk A/S, Søren Skou says:
“Both Energy and Transport & Logistics have strategies positioning them for growth and strategic agility. Transport & Logistics will be able to provide new and digitised world-class solutions for customers, while at the same time capture functional cost synergies and better utilization of existing assets. Energy is well positioned to leverage Maersk Oil´s expertise and gain scale in select geographies, particularly in the North Sea. Its structural agility will enable management to pursue new and different structural solutions and investment.”
Chairman of A.P. Møller Holding A/S, Ane Mærsk Mc-Kinney Uggla says:
“A.P. Møller Holding was established mainly to safeguard the long term viability of the A.P. Møller – Mærsk activities. Since then, A.P. Møller Holding has developed its considerations about the future of A.P. Møller – Mærsk. These have been given to the Board of Directors of A.P. Møller – Mærsk A/S.
Historically the Maersk activities’ strategy and structure have always undergone changes. And these changes will continue in order to stay agile.
While we are rooted in shipping and energy, we must never become static in a dynamic world. We therefore welcome the new strategy and structure announced by the A.P. Møller – Mærsk A/S. A.P. Møller Holding will continue to be an active and influential owner of A.P. Møller – Mærsk activities, applying our core values and name where relevant; and as stated in the trust deed of the A.P. Møller Foundation.
This means that we see A.P. Møller Holding remaining as an influential shareholder in business units undergoing separate structural changes: they will continue to be part of the A.P. Møller family.”
A.P. Møller – Mærsk A/S will in fourth quarter 2016 be hosting a Capital Markets Day, where Group Management and the management teams for Transport & Logistics and Energy will provide further insights into the reorganization and future strategy.
Following today’s update on the announced strategic review, A.P. Møller – Mærsk A/S will host a press conference later today (September 22, 2016) at 11.30-12.30 (CET) at Maersk Group Headquarter at Esplanaden 50, 1263 Copenhagen K. The press conference will be held in Danish. International media will be catered for at a later stage. Present at the press conference will be Chairman of the Board Michael Pram Rasmussen, Group CEO Søren Skou and Group Vice CEO Claus V. Hemmingsen.
Online Registration Renewal System Available for Foreign-Based Non-Vessel-Operating Common Carriers
In support of the Commission’s 2013 final rule concerning registration of foreign-based unlicensed Non-Vessel-Operating Common Carriers (NVOCCs), the Commission has developed an online filing system for the renewal of registrations.
Any foreign-based NVOCC not licensed with the Federal Maritime Commission (FMC) must file a registration Form FMC-65 (Foreign-based Unlicensed NVOCC Registration/Renewal), before performing services in the U.S. foreign oceanborne trades. A registration for an unlicensed, foreign-based NVOCC is effective for a 3-year period. There is no fee to file Form FMC-65 for a registration renewal.
Beginning August 3, 2016, foreign-based NVOCCs currently registered with the FMC will receive an email notification from the FMC alerting the NVOCC of their upcoming renewal date. FMC email notifications will be issued no more than 30 days prior to an NVOCC’s registration renewal date. The email will provide instructions on how to renew registration using the online filing system, and include a unique user name and password to access the system. Once logged in, the foreign registered NVOCC will have the option to self-renew its registration, or assign the renewal process to its tariff publisher or other third party filer. Please note, with the implementation of this new electronic filing system, paper, email, or facsimile renewals will no longer be accepted.
The renewal process will include a pre-populated Form FMC-65 containing the most current information for the registered NVOCC on file with the FMC. If the information on file with the FMC is correct, the NVOCC, or authorized tariff publisher or third-party filer will simply click the “submit” button to file the renewal. If any change to the pre-populated information is required, the filer will have the option to update the form electronically before clicking the “submit” button. Filers will receive a confirmation of receipt. Once the FMC reviews the renewal application, filers will receive another message indicating whether the renewal submission was accepted or if additional information is required.
How to Confirm Registration Renewal Dates:
All foreign-based NVOCCs registered with the FMC to provide services in the U.S. foreign oceanborne trades are listed on the FMC’s Ocean Transportation Intermediaries (OTI) List. This List also includes the date by which each foreign registered NVOCC must renew its registration with the FMC.
Important Note:
Failure to timely renew a registration by filing Form FMC-65 via the new automated renewal system can result in the termination or suspension of an NVOCC’s registration.
For more information about this new, automated registration renewal process for foreign-based NVOCCs or if you have difficulty accessing or using the system, please send email inquiries to the FMC’s Office of Ocean Transportation Intermediaries or call (202) 523-5843.
The Federal Maritime Commission is responsible for regulating the Nation’s international ocean transportation for the benefit of exporters, importers, and the American consumer. The Commission’s mission is to foster a fair, efficient, and reliable international ocean transportation system while protecting the public from unfair and deceptive practices.
GE Technology to Power One of the World’s Largest Crane Vessels
SINGAPORE — Solid partnerships and reliable technologies are needed to realize bold goals and surmount herculean challenges. Recently, such a partnership was forged between GE (NYSE: GE) and Sembcorp Marine to realize one of the most challenging offshore projects in recent times—Heerema’s new Semi-Submersible Crane Vessel.
Based on a recently signed deal between GE’s Marine Solutions business and Sembcorp Marine, GE is set to provide technology that will be at the heart of the operations of Heerema’s new SSCV Sleipnir. At 220 meters long and 102 meters wide, Sleipnir is to become the world’s largest crane vessel. It will be equipped with two cranes, each boasting a lifting capacity of 10,000 tons, and will be used for offshore construction and heavy lifting.
To enable smooth operations onboard the vessel, GE is set to provide the electrical part of the power and propulsion system including 12 sets of 8-megawatt (MW) generators, eight units of 5.5-MW propulsion motors, medium-voltage switchboards, transformers and MV7000 drives. The power generated from the system will position and propel the vessel and provide electricity to the vessel’s onboard systems.
Overcoming various technical challenges, the solution provided by GE has been conceived from the ground up to meet requirements specific to this project. As a result, the entire power system is designed for fault tolerance in accordance with Lloyds Register’s Rules (DP AAA). While being more compact than standard solutions, GE’s solution has advanced sensors built in to help operators monitor the health of each piece of equipment in real time and signal possible malfunctions. Together, these measures result in a compact, yet highly sophisticated solution, which facilitates operations while helping to minimize downtime and increase availability.
Commenting on the deal, Martijn Wijdeveld, senior project manager, Heerema Offshore Services, said, “To power our newest SSCV, we wanted to collaborate with some of the best in business. In GE, we have found a partner that brings considerable experience and know-how into the project. We’re confident that their technology onboard our vessel will facilitate reliable operations.”
Mr. William Gu Wei Guang, head of Sembcorp Marine Rigs & Floaters, said, “To build this mammoth vessel for Heerema, we’re happy to be partnering with GE. We look forward to working with GE in installing high-quality and best-in-class solutions onboard the vessel.”
“We’re excited to be working on this project with Heerema,” said Tim Schweikert, president & CEO, GE’s Marine Solutions business. “Building a SSCV of such proportions comes with its own set of challenges. With our deep technical expertise, we’re confident of tackling these challenges and delivering a high-quality solution to enable flawless operations of the vessel. We also believe that this project will strengthen the relationship between GE, Heerema and Sembcorp Marine.”
GE leveraged its widespread diverse supply chain to source its scope of supply for this project, with the generators, switchboards, motors and variable frequency drives being sourced from various countries in Europe. The delivery plan of GE’s scope of supply is spread between September 2016 and May 2017, with the vessel scheduled to be commissioned by December 2018.
About GE
GE (NYSE: GE) is the world’s Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive. GE is organized around a global exchange of knowledge, the “GE Store,” through which each business shares and accesses the same technology, markets, structure and intellect. Each invention further fuels innovation and application across our industrial sectors. With people, services, technology and scale, GE delivers better outcomes for customers by speaking the language of industry. www.ge.com
About GE’s Marine Solutions
GE’s Marine Solutions is dedicated to power and propulsion systems for customers in the workboat, merchant, offshore and naval industries. Smart engineering coupled with software analytics, we provide customers with data-driven efficiency. Connecting the physical and digital worlds, GE helps power, propel, position and predict the marine industry for operational excellence. www.gemarinesolutions.com
Hyundai Merchant Marine, FESCO and CMA CGM To Launch A New Joint Loop That Connects China, Korea and Russia
Hyundai Merchant Marine (HMM), FESCO and CMA CGM announced the launch of a new China-Korea-Russia weekly service, under the name ‘CRS (China Russia South Service).’
Prior to the launch, HMM has been jointly operating two services ‘KRS (Korea Russia Service)’ and ‘KR2 (Korea Russia Service 2)’ with FESCO. HMM merged the two joint loops and broaden its service coverage to the South China and the Middle China, and changed the service name to CRS, which was also joined by a French carrier CMA CGM.
The new weekly service turns in three weeks with three ships of 2,700-4,600 teus those were provided by each company. The service calls at Hong Kong, Chiwan, Xiamen, Ningbo, Shanghai, Busan, Vladivostok (Commercial Port), Vostochny, Busan, Hong Kong.
While cooperating with FESCO and CMA CGM for CRS, HMM has also been joining hands with FESCO for ‘CRN (China Russia North Service),’ which connects China and Russia with two 1,700 teu container ships.
On March 24, the Hyundai Unity started its service from Hong Kong. HMM official said “By launching CRS and joining in CRN, HMM can provide premium direct services connecting South China/Middle China and Russia” and added “with two services connecting China-Korea-Russia, HMM will enhance its presence in Russia shipping market.”
CMA CGM S.A. Launches All-cash Voluntary Conditional General Offer To Acquire NOL
CMA CGM S.A. (CMA CGM), a global leader in container shipping, today launched an all-cash voluntary conditional general offer (Offer) for all outstanding shares of Neptune Orient Lines Limited (NOL) other than those it already owns, controls or has agreed to acquire. This follows approvals by the relevant regulatory authorities in the European Union and China.
CMA CGM currently owns 10.5% of all NOL shares, and intends to delist and privatise NOL through the Offer. NOL’s majority shareholders (Temasek Holdings (Private) Limited and its affiliates), which own 66.78% of all NOL shares, will tender all of their NOL shares in acceptance of the Offer.
Maybank Kim Eng Securities Pte. Ltd. (MKES) has been appointed as the independent financial adviser (IFA) to advise the directors of NOL who are considered independent for the purposes of the Offer (Independent Directors).
The Offer Price is SGD 1.30 per NOL share in cash, which CMA CGM does not intend to increase.
The Offer provides NOL shareholders with an opportunity to realise their investment in NOL at a 49% premium to NOL’s unaffected share price on 16th July 2015[1] and a 33% premium to NOL’s 3-month volume-weighted average share price prior to 16th July 2015.
CMA CGM believes that the acquisition of NOL would enable CMA CGM to reinforce its position as a leader in the container shipping industry, with a capacity of approximately 2.35 million TEUs, a market share of approximately 11.7%, a fleet of approximately 540 vessels[2] and a combined annual turnover of approximately US$21 billion[3]. Leveraging the complementary strengths of the two entities, the combined group’s customers will have access to an enlarged and well-balanced shipping coverage across the strategic trades of global commerce, and to an extended range of products and services. CMA CGM further believes that the combination of the two groups would also create scale to enhance competitiveness and deliver sustainable performance.
Commitment to Singapore: Reinforcing Singapore’s leadership in the maritime and shipping industry
CMA CGM attaches significant importance to Singapore and the region for the deployment of its strategy in Asia. The combined entity would reinforce Singapore’s leadership in the maritime and shipping sector as the city-state seeks to increase maritime services and transportation volumes, including committing more volumes through Singapore. CMA CGM will also contribute to reinforce Singapore as a center of excellence in the field of maritime activities as CMA CGM plans to use Singapore as a key hub in Asia. In this regard, CMA CGM plans to establish its regional head office in Singapore. This consolidation of CMA CGM’s longstanding presence in Asia in Singapore aims at providing efficient and quality services to customers in the region.
“The Independent Directors, having considered carefully the fairness opinion rendered to the NOL board by Citigroup Global Markets Singapore Pte. Ltd., as NOL’s financial adviser in this transaction; the terms and conditions of the Offer; as well as the advice given and recommendation made by MKES as the IFA, concur with the recommendation of MKES in respect of the Offer. Accordingly, they recommend that NOL shareholders accept the Offer, unless NOL shareholders are able to obtain a price higher than the Offer Price on the open market, taking into account all brokerage commissions or transaction costs in connection with open market transactions,” said NOL non-executive independent Chairman, Kwa Chong Seng.
“6 months after the announcement, and after receiving the relevant authorizations, CMA CGM today opens its Offer for NOL shares. We offer each and every NOL shareholder SGD 1.30 per share in cash. In a particularly challenging international context in the shipping sector, our Offer fully and fairly values NOL. We believe this is an attractive Offer for all shareholders, as it was for Temasek and its affiliates, which have committed to tender their 66.78% stake”, said Rodolphe Saadé, Vice-Chairman of CMA CGM.
Acceptances of the Offer must be received not later than 5.30 p.m. (Singapore time) on 4 July 2016, or such later date(s) as may be announced from time to time by or on behalf of CMA CGM.
Full details of the Offer are set out in the Composite Document (containing the terms and conditions of the Offer and enclosing the relevant acceptance forms), which has been despatched today to NOL shareholders.
For more information about the Offer, please visit the website of the SGX-ST at www.sgx.com or the dedicated website for the Offer at www.ccn-web.com.
__________________
1 The closing price of NOL shares on 16th July 2015 (Unaffected Date) being the last full day of trading in NOL shares on the Singapore Exchange Securities Trading Limited (SGX-ST) immediately preceding the announcement by NOL on 19th July 2015 in relation to media reports regarding a potential sale of NOL.
2 Based on information as at the end of the first quarter of 2016 of the CMA CGM group and the NOL group respectively.
3 Based on information as at the end of the financial year in respect of 2015 of the CMA CGM group and the NOL group respectively.
About the CMA CGM Group:
CMA CGM, founded and led by Jacques R. Saadé, is a leading worldwide shipping group.
Its 450 vessels call atmore than 400 ports in the world, across all 5 continents. In 2015, they carried 13million TEUs (twenty-foot equivalent
units).
CMA CGM has grown continuously, and has been constantly innovating to offer its clients new sea, land and logistics solutions.
With a presence in 163 countries, through its 426 agencies, the Group employs 22,000 people worldwide, including 2,400 at its
headquarters in Marseille.
www.cma-cgm.com
About NOL:
Headquartered in Singapore, NOL is the largest shipping company listed on the Singapore Exchange. Its container shipping arm, APL, provides world-class container shipping and terminal services, as well as intermodal operations supported by leading-edge IT and e-commerce.
APL offers transcontinental cargo shipping across Asia, North and South America, Europe, the Middle East, the Indian subcontinent and Australia through more than 80 weekly services calling at 160 ports worldwide.
www.nol.com.sg
Lockheed Martin and Daewoo Shipbuilding & Marine Engineering Sign Teaming Agreement to Build Multi-mission Combat Ships
SEOUL, South Korea, – Lockheed Martin (NYSE: LMT) and Daewoo Shipbuilding & Marine Engineering (DSME) have signed a comprehensive teaming agreement to partner on the Multi-mission Combat Ship (MCS), which is based on a DSME hull design and intended for the corvette market.
Both companies bring valuable experience and unique capabilities to the teaming arrangement. Lockheed Martin has a proven track record of developing and integrating complex systems into a wide variety of U.S. and international naval vessels. DSME is one of the world’s largest shipbuilders and has a rich history of producing highly capable naval vessels for the Republic of Korea and other international customers.
“DSME’s MCS hull design coupled with Lockheed Martin’s expertise in program and systems integration will allow the team to bring this capable ship to the international marketplace at an affordable price,” said Joe North, vice president of Littoral Ships and Systems at Lockheed Martin Mission System and Training. “Together, we bring not only the best experience, expertise and resources, but also the right dedication and focus to offer coalition navies a multi-mission corvette-sized ship designed to meet future threats.”
“This Teaming Agreement on MCS and strategic cooperation will not only provide our customers with high capability vessels on time, but also further facilitate our two companies’ joint efforts in exploring opportunities on a global scale.” said Deog-Soo Kim, vice president and the head of the Naval & Special Ship Business Management Division at DSME. “Moreover, the Korean government is pursuing ‘New-Economic Growth Activation by Defense Industry’ as one of the state development agendas and this agreement is a good example of achieving the objective.”
Lockheed Martin and DSME are continuing to explore additional business opportunities in the international naval market where integrated, multi-mission corvettes will play a vital role in coastal protection as well as regional operations.
For additional information, visit our website: www.lockheedmartin.com.
About Lockheed Martin
Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 125,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.
About DSME
As one of the largest shipbuilders in the world, DSME is the market leader which specializes in building various commercial vessels, large scale offshore platforms, and complex naval ships. DSME has maintained a strong position as a naval solution provider, which has served as the backbone for the Republic of Korean navy’s as well as international navies’ capability with high quality and on-time products.
HMM, FESCO and CMA CGM to launch a new joint loop that connects China, Korea and Russia
Hyundai Merchant Marine (HMM), FESCO and CMA CGM announced the launch of a new China-Korea-Russia weekly service, under the name ‘CRS (China Russia South Service).’
Prior to the launch, HMM has been jointly operating two services ‘KRS (Korea Russia Service)’ and ‘KR2 (Korea Russia Service 2)’ with FESCO. HMM merged the two joint loops and broaden its service coverage to the South China and the Middle China, and changed the service name to CRS, which was also joined by a French carrier CMA CGM.
The new weekly service turns in three weeks with three ships of 2,700-4,600 teus those were provided by each company. The service calls at Hong Kong, Chiwan, Xiamen, Ningbo, Shanghai, Busan, Vladivostok (Commercial Port), Vostochny, Busan, Hong Kong.
While cooperating with FESCO and CMA CGM for CRS, HMM has also been joining hands with FESCO for ‘CRN (China Russia North Service),’ which connects China and Russia with two 1,700 teu container ships.
On March 24, the Hyundai Unity started its service from Hong Kong. HMM official said “By launching CRS and joining in CRN, HMM can provide premium direct services connecting South China/Middle China and Russia” and added “with two services connecting China-Korea-Russia, HMM will enhance its presence in Russia shipping market.”
Chairman Cordero Testifies to Congress Regarding The State of the U.S. Maritime Industry
Chairman Fischer; Senator Booker; members of the committee—thank you for inviting me to join you today to provide the perspective of the Federal Maritime Commission on the state of U.S. maritime industry and related infrastructure.
As you know, the Federal Maritime Commission is the independent agency charged with promoting the fair, efficient, and reliable transportation of cargo into and out of the United States via international, ocean-borne shipping. We do this primarily through enforcing the Shipping Act of 1984. We regulate all ocean shipping entering and leaving the United States and we engage entities involved in every aspect of moving cargo internationally via the water. Our mission, and exposure to the people who make ocean shipping work, gives the Commission a unique perspective to review and summarize trends in the shipping business.
Looking only at overall container volumes imported and exported into the United States, 2015 was an impressive year for shipping. Total container volumes were 31.5 million Twenty Foot Equivalent Units (TEUs), which represents a two-percent increase in container volumes year-on-year. The imbalance in the container trades grew for the second-year in a row with 20 million TEUs entering the United States and container-based exports dropped to 11.5 million TEUs—a five percent decrease from export volumes of the previous year. The U.S. share of the world’s container trade was nearly 17 percent and according to our analysis, this is the second consecutive year that imported container volumes have surpassed the previous record of 18.6 million containers that was established in Fiscal Year 2007.
In terms of container cargo volumes, Asia remains our largest trading region and China our largest trading partner. In Fiscal Year 2015, Asia was responsible for 62 percent of U.S. container trade volumes, 53 percent of that volume being tied to north Asia. Our annual report, which will be published in the next few weeks, has a very useful summary of ocean shipping trends as they relate to the United States on a region-by-region basis. We will be certain to get copies of our report to you and your staff as soon as it has been printed.
The vessel capacity among the global fleet that is available to meet demands for increased container volumes seems more than sufficient. The world’s containership fleet continued to expand with nominal capacity growing by approximately 9 percent. At the end of the fiscal year, there are 5,143 containerships with a capacity of 19.7 million TEUs in the global fleet. Additionally, there were orders worldwide for 511 new containerships with an aggregate capacity of 4.1 million TEUs—an increase of 21 percent over the existing fleet capacity. This generous supply of container capacity suggests that shippers will likely benefit from continued low transportation rates for their international ocean cargo.
Regarding competition in the shipping industry, we may see considerable consolidation among container carriers this year. France-based carrier CMA-CGM (CMA) is acquiring Singapore-based carrier NOL; and, China Ocean Shipping Company (COSCO) is absorbing China Shipping as part of a merger. Pending approval by regulators in the United States and other nations, both CMA-CGM and COSCO will grow in size; capabilities; market share; and possibly market power. The FMC has the vital responsibility to monitor possible changes in the marketplace and analyze potential impact on shippers. The CMA and COSCO transactions are complex, far-reaching, and will require careful on-going analysis for some time into the future.
One of the most significant areas of responsibility for the Federal Maritime Commission is its review of operating agreements filed with the agency, particularly as the industry rapidly reacts to changing global economic conditions.
Under the law, Vessel Operating Common Carriers (VOCCs) and Marine Terminal Operators (MTOs) who file agreements with the FMC enjoy a limited exemption from the Nation’s antitrust laws. These exemptions are designed to help facilitate efficiencies and provide reliable and fair international ocean-borne transportation services to domestic shippers. Such agreements are thoroughly monitored and analyzed by Commission staff on a continuing basis to confirm that the law is followed and the American shipping public is not harmed.
In Fiscal Year 2015, the Commission received 258 agreement filings—both new agreements and amendments to existing agreements—which is the largest number of agreements filed during a 12-month period since 2006. The nature of international trade has changed tremendously over the nine-years between 2006 and 2015: trade volumes have grown; vessels have become larger in size; and supply chains have become more sophisticated. Corresponding trends in the shipping business are consequentially changing the nature of many of the agreements we consider.
Many of these agreements now filed at the FMC reflect the trend in which carriers and MTOs increasingly work in cooperation with each other, sharing resources and assets. These agreements are much more complex and time-consuming to analyze than previously was the case. Additionally, the complexity and potentially anti-competitive effect of these agreements, require consistent oversight and critical analysis.
As a result of merger and acquisition developments in the container shipping business, we are likely to see much more activity on the agreements front. Carriers that are purchasing other carriers, or are merging, are likely to modify their existing agreements or enter into new agreements and competing lines may change their agreements in reaction to the new reality of the shipping business. These developments warrant careful review and will demand more time, attention, and resources of the FMC.
It is very easy to report a statistic via testimony, but there is a real world impact to all the record breaking volumes of containers landing in the United States and that is the continuing stress on maritime gateways—ports and intermodal connectors that are already congested with trade traffic. Marine Terminal Operators (MTOs) are working to find ways to more efficiently move cargo from ship-to-shore and out the gate.
While the FMC is an enforcement and regulatory agency, it is also an organization that seeks actively to facilitate trade. It has been our experience that sometimes the best solution to a problem in an area under our purview is not simply regulation, but encouraging private sector parties to find their way to a private sector solution. That is the path we have mostly taken when it comes to port congestion.
International trade begins at our Nation’s ports and it is through marine terminals that cargo enters and exits the country. International trade moving through America’s coastal gateways accounts for 32 percent of America’s Gross Domestic Product and some predict that by 2030 this figure may rise to 60 percent. Ensuring that U.S. ports handling international ocean-borne commerce are able to efficiently handle current and projected volumes is a key priority for the Commission.
Over the past two years, the Federal Maritime Commission has actively engaged in surveying the status of the nations’ ports and identifying not only what the causes of congestion are, but how private sector, mutually agreeable, and results driven solutions might be found.
In latter FY2014, and throughout FY2015, the Commission hosted four separate listening events at major gateway cities throughout the United States—Los Angeles; Baltimore; New Orleans; and Charleston—to gather input from stakeholders about what problems they were experiencing and how congestion was impacting their ability to move goods. These listening sessions, which were always headed by at least one Commissioner, led to the issuance of two separate publications:
Rules, Rates, and Practices Relating to Detention, Demurrage, and Free Time for Containerized Imports and Exports Moving Through Selected United States Ports
(April 2015–http://www.fmc.gov/NR15-03/)
U.S. Container Port Congestion & Related International Supply Chain Issues: Causes, Consequences & Challenges
(July 2015–http://www.fmc.gov/NR15-11/)
The Commission voted unanimously in February to approve the facilitation of “Supply Chain Innovation Teams”—working groups comprised of industry stakeholders doing business in, at, or with the combined port facilities in the San Pedro Bay, which is our Nation’s largest and busiest port complex. Supply Chain Innovation Team members will work to develop commercial solutions to supply chain challenges and related port congestion concerns. This effort will be led by Commissioner Dye and will culminate in a report that will be issued to the FMC. The real value of this undertaking is that we believe it will lead to collaborative, practical solutions that will increase efficiencies and terminal throughput at port facilities.
An issue that the Commission is currently hearing much about is that of Safety of Life at Sea Treaty (SOLAS) amendments coming into force this July that will require shippers to declare a “Verified Gross Mass” (VGM) of containers to ocean carriers before a shipment will be allowed to be loaded on a vessel. Carriers and shippers have not yet resolved the issue, and on February 18, 2016, the FMC hosted a meeting at its headquarters that brought together all interested parties, including the Coast Guard, which is the U.S. Government agency with responsibility and jurisdiction for this matter. The meeting was convened to pursue guided discussion and seek consensus on how to proceed on the VGM matter. At this particular juncture, it seems more work needs to be done to achieve consensus. I reiterate that the Coast Guard is the lead agency on this matter—it represents the United States at the International Maritime Organization; it is responsible for implementing SOLAS; and it is responsible for enforcement matters in terms of vessel and facility safety. That noted, the FMC will maintain a vigilant watch on this issue and carefully monitor developments to see if the situation ever reaches a point where it would warrant intervention by the Commission under the relevant and applicable portions of the Shipping Act. The Commission is prepared to continue its informal role of promoting dialog among all relevant parties and is willing to continue to facilitate meetings.
Earlier in my testimony, I noted that though the Federal Maritime Commission has regulatory and enforcement powers, trade facilitation is very much also at the core of its mission and activities. The ultimate goal of our work is to give the U.S. shipper confidence that when they contract for ocean freight services they are doing so with an honest actor, who is charging a fair rate, and is capable of actually having the shipment moved from origin to destination. We review, analyze, and monitor carrier and marine terminal operator agreements to assure these entities do not engage in anticompetitive behavior; we maintain and review confidentially filed service contracts; we provide forums for exporters, importers, and other members of the shipping public to obtain relief from ocean shipping practices or disputes that impede the flow of commerce; and we guard against unfair and unfavorable conditions caused by foreign government business practices in U.S. foreign shipping trades. The sum total of our efforts is that international trade flows efficiently and at a reasonable cost. When ocean transportation services begin to take longer or cost more, we want to know why this happening and how we can potentially fix any problems.
We do all of this with less than 125 employees and with a budget in Fiscal Years 2015 and 2016 of only $25.6 million. I am very proud of the hard work our employees do, and the commitment they bring to the office each and every.
While acknowledging and commending the hard work of Commission staff, I am not certain how much longer the Commission can sustain current operations if we do not receive modest relief in terms of some additional personnel in key positions and a corresponding realistic increase in funds to carry out our functions.
The demands on the Commission are significant in terms of accepting, processing, analyzing, and acting upon just the routine filings that provide the foundation for a transparent and competitive international ocean shipping network. In just the first quarter of Fiscal Year 2016 (calendar months October, November, and December 2015) 8,491 new service contracts were filed and 177,382 service contract Amendments were filed. Last year, the FMC received 51,109 new service contracts and 653,315 service contract amendments. As I mentioned above, merger and acquisition activity in the container industry will generate substantial new monitoring and analysis requirements.
Simply put, the demands on the agency’s resources are continually increasing, but the resources available to the FMC to execute its mission never seem to keep pace with the work that must be done. At some point, we may not be able to provide service at the rate our constituents require to be able to do their business; and if that day comes, we will not be facilitating trade, we will instead risk becoming an impediment to the free flow of cargo.
In summary, the state of the maritime industry is mixed. On the one hand, increasing trade volumes are an encouraging indicator about the strength of the economy and it is fortunate that there is sufficient capacity in terms of vessels and container capacity that the costs of moving cargo internationally via the ocean will likely remain reasonable. On the other hand, if unaddressed congestion at U.S. ports presents a serious potential impediment to continued economic growth as well as the competitiveness of the nation. Continued attention by Congress to ports and the intermodal connectors that link the quayside to the countryside is absolutely requisite. Financing ports, port infrastructure, and goods movement networks are investments that benefit the whole economy.
Chairman Fischer, Senator Booker, once again, I appreciate this opportunity to appear before you and I am happy to answer any questions that anyone may have regarding the Federal Maritime Commission or developments on the waterfront where our insight would be helpful.
Ship Captain Pleads Guilty to Felony Obstruction Related to Pollution from Tanker Ship Traveling to Charleston
A Filipino citizen and the captain of the tanker ship, T/V Green Sky, pleaded guilty today to one felony count in federal court in Charleston, South Carolina, for obstructing a U.S. Coast Guard investigation into pollution crimes aboard the vessel.
Genaro Anciano, 52, who was the highest ranking officer aboard the ship, pleaded guilty to one count of Obstruction of an Agency Proceeding. The charge stems from a Coast Guard investigation in late August 2015 into the bypass of pollution prevention equipment, including the use of a “magic device,” on the Green Sky. In court papers, the defendant stated that members of the ship’s engine room, including a senior officer, admitted to illegally discharging overboard. These admissions occurred prior to the August 2015 Coast Guard inspection at the Port of North Charleston. During the investigation, Anciano made several false and misleading statements to the Coast Guard to cover up the illegal conduct.
The T/V Green Sky is a 30,263 gross ton, ocean-going vessel that operates as a petroleum and chemical tanker. The vessel is approximately 600 feet in length and is registered in Liberia. The vessel is owned by an entity incorporated in the Marshall Islands. Over the course of several days, the normal operation of the Green Sky generates thousands of gallons of bilge wastes that are contaminated with petroleum products and oil residues. These bilge wastes must be removed for the vessel to operate safely.
Both the United States and Liberia are parties to the MARPOL treaty, which regulates the overboard discharge of bilge waste. It was prohibited to discharge bilge wastes from the T/V Green Sky without first running that effluent through the ship’s oily water separator. According to the MARPOL treaty, all overboard discharges from the vessel’s bilges had to be recorded in the T/V Green Sky’s oil record book. A bypass of the oily water separator, which is not recorded in the oil record book, jeopardizes the accuracy and integrity of that document. It is a separate federal crime for oceangoing vessels to enter a U.S. port with a false oil record nook.
Anciano’s sentencing has not been scheduled.
The case was investigated by the U.S. Coast Guard Investigative Service with assistance from inspectors from Sector Charleston as well as Legal from U.S. Coast Guard in Miami. The case is being prosecuted by Christopher L. Hale of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division and Assistant U.S. Attorney Matt Austin of the U.S. Attorney’s Office for the District of South Carolina in Charleston.
Maritime Administration Announces Funding Availability for Small U.S. Shipyards
WASHINGTON–The U.S. Department of Transportation’s Maritime Administration (MARAD) today announced the availability of $4.9 million in Federal funding to support capital improvements and employee training at small U.S. shipyards. The grants, provided through the Small Shipyard Grant Program, will support efficiency improvements and modernizations that allow U.S. shipyards to compete more effectively in the global marketplace.
“Investments in our shipyards and American workers is critical to ensuring America’s economic growth and global competitiveness,” said U.S. Transportation Secretary Anthony Foxx. “These grants support and strengthen both local communities and our national economy.”Shipyards across the nation continue to create new jobs and strengthen their local economies. Since 2009, the Obama Administration has provided more than $164 million to help U.S. shipyards and their workers reap the benefits of increased production capabilities delivered by emerging technologies and a highly skilled workforce.
Grants are available to support a variety of projects including capital and related improvements, and equipment upgrades that foster ship construction, repair and reconfiguration in small shipyards across the United States. The grants can also be used to support maritime training programs that improve technical skills to enhance shipyard worker efficiency and productivity. The Small Shipyard Grants, which are limited to no more than 75 percent of the estimated improvement costs, are available to U.S. shipyards with less than 1200 production employees.
“American shipyards are currently producing some of the most modern and innovative vessels in the world,” said Maritime Administrator Paul “Chip” Jaenichen. “They’re also creating quality jobs and supporting economic growth in local communities that complement the immense economic impact of our Nation’s ports and waterways.”
Applications for the grants are due by 5 p.m. EST on February 16, 2016. MARAD intends to award grants no later than April 18, 2016. Additional information can be found in the Federal Register here, or by contacting David M. Heller, Director, Office of Shipyards and Marine Engineering, Maritime Administration, Room W21-318, 1200 New Jersey Ave., S.E., Washington, DC 20590; David.Heller@dot.govEmail links icon.
GE Marine Enables Efficient Training from World Renowned Maritime Center
Alexandra, Egypt – In 2012, the AAST-GE DP Center was established through a joint effort between GE and the Arab Academy for Science, Technology & Maritime Transport (AASTMT) in northern Egypt for the training of mariners. Operated by AASTMT, the facility joins an elite group of only 12 centers in the world that are qualified by the Nautical Institute (NI) to offer Sea Time Reduction courses. This means that trainees are credited with 30 days of Sea Time when they complete 5 days of intensive training in the Class A Dynamic Positioning (DP) simulator.
Selected to continue supplying and operating the simulator as a joint project with the Academy for the next five years, GE has upgraded the facility with GE Marine’s Class A training simulator. It reinforces GE Marine’s commitment towards promoting more efficient and safe maritime operations in the offshore industry.
“Since its inauguration the center has trained up to 800 students to become certified in operating DP systems. Today’s announcement marks an even higher standard of training being offered,” said Dr. Ismail Abd Ghafar, President of the AASTMT. “GE has been a central partner from the initial stages of this training center and they continue to play a role in ensuring the smooth upgrade of our systems. The technology they are providing for the training of mariners will allow us to offer a service that few other centers in the world can.”
In order to run this Class A simulator the center is utilizing hardware and software from GE Marine, including its C-series Dynamic Positioning and a simulator system. DP is an advanced ship position-control system which enables the vessel to maintain a stationary position or a precise course using its propulsion system, thrusters and rudders. Many of today’s advances in deep water exploration may not be possible without it, thus this technology has become essential in offshore operations and DP training is now crucial to any professional offshore mariner.
Applied Research International (ARI) is the preferred simulator supplier for GE’s DP training projects. “Driving innovation through the invention of new technologies and key partnerships are key priorities for GE Marine. We highly value our long-term relationship with ARI, who has helped us to drive innovation to new heights in the marine training space,” said Tim Schweikert, VP, GE Marine.
The center will also be equipped with a new Class A offshore crane simulator, the first of its kind for local operators to obtain offshore crane training in the Arab world.
“With over 900 of our DP systems deployed worldwide, the training center in Egypt will add to our capability in training future mariners for more efficient and safe maritime operations and also help meet the needs of the offshore and petroleum services in the Middle East and beyond,” added Schweikert.
About GE
GE (NYSE: GE) is the world’s Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive. GE is organized around a global exchange of knowledge, the “GE Store,” through which each business shares and accesses the same technology, markets, structure and intellect. Each invention further fuels innovation and application across our industrial sectors. With people, services, technology and scale, GE delivers better outcomes for customers by speaking the language of industry. www.ge.com
GE Marine offers solutions dedicated to the merchant, offshore and naval industries, helping customers drive operational excellence, efficiency and environmental responsibility. Smarter engineering coupled with GE Marine’s latest technologies ensures the best solutions to suit the precise needs of each ship, powering, propelling and positioning a more efficient, safer and cleaner marine industry.
GE Marine Present at the Heart of the Shipbuilding Industry with Cutting Edge Marine Technology
Busan, South Korea – South Korea is a global shipbuilding hub where some of the world’s largest shipbuilders operate competitively to ensure the highest standards. GE Marine has long been a partner for Korea in this market, recognizing both Korea’s global leadership position and the vital importance that the sector has for the country’s economy.
Korea’s shipbuilders produce a wide range of vessel types with production targeting high-value ships. GE is a leading player in the digital transformation of the marine industry, helping the industry harness the power of data to improve uptime, operational efficiency and return on investment. Given the high costs of production and operation of high-end vessels, even incremental improvements in efficiency generate substantial gains in terms of additional revenues and reduced costs.
“Present macroeconomic conditions have pressed significant challenges on local shipbuilders. Operators are looking for technological rich solutions to reduce costs while increasing efficiency. It’s a clear time of opportunity when ‘disruptive innovations’ such as the Industrial Internet will drive the industry forward,” said Tim Schweikert, VP, GE Marine. “GE is one of the few global companies with the extensive industry expertise coupled with the ability to build software solutions that can drive customer profitability even during an industry down cycle. In helping customers reach excellence in digital marine capability, we believe Korea’s shipbuilding industry will possess a powerful differentiator in the global market to increase competitiveness.”
Today at booth 3J09 at Kormarine 2015, GE Marine will demonstrate how its presence and expertise across industries provides value for shipyards, ship operators and owners. From design, solution to service, GE’s digital marine has 360o capability to help operators get connected, get insight, and get vessels optimized. Key technology showcases include:
· SeaLab and Vessel Performance Analyzer (VesPA):
GE’s SeaLab brings together the company’s expertise (analysis and tools) and solutions (products and systems) to work directly with naval architects and vessel designers to help create better ships through design. In a recent design investigation in GE’s SeaLab, careful system design reduced the installed power requirement by 25% compared to the baseline design, making it possible for vessels to operate with smaller engines and thereby reducing CAPEX and fuel costs while increasing payload within the hull.
GE’s VesPA provides real-time comparisons of multiple electrical configurations, enabling GE to design, configure and enhance power, propulsion and electrical solutions in collaboration with our customers to match their vessel performance requirements. VesPA also calculates the annual operational expenditures of the design, so equipment selections can be made to minimize fuel consumption and reduce operational expenditure.
· GE Marine Mapper
GE’s new map based search tool provides visibility of over 1,000 vessels supported by GE’s fleet management team. GEMM provides our experts instant access to recent vessel location with details of installed equipment including service and maintenance data, helping resolve problems, no matter what or where they are. GE’s global network of local service centres— ready with spare parts and field engineers — help ensure that you’ll have the resources to prevent and correct issues, even on highly complex systems deployed in inaccessible locations.
· SeaStream* DP
GE’s mariner-friendly package of marine acknowledges the unique skills and high expectations of the mariners operating the dynamic positioning system, allowing them to re-focus on seamanship and ship handling rather than operating a complex system. It includes an ecomagination* energy efficient mode which is anticipated to deliver up to 10% or potentially more in fuel savings while reducing NOx by up to 20% depending on environmental factors and exact operational profile.
· SeaStream* Insight
SeaStream* Insight, the new addition to GE Marine’s SeaStream* package, is the latest innovation in marine remote monitoring and asset support. It provides a holistic view of on-board systems, allowing operators to access the true state of the assets and empowering them to make smart decisions. It offers remote monitoring capability which allows GE experts to track problems in real time, reducing third party service cost and solving problems faster. It also uses predictive analytics to transit from prescriptive (time-based) maintenance to predictive (plan-based) maintenance, reducing downtime and potentially increasing customers’ revenues.
Other technology showcases will include:
· 250 Series Diesel Engine
GE is one of the leading manufacturers of medium-speed diesel engines in the world. In our 250 series marine engine, we’ve combined the best features of earlier engine designs with advanced features to deliver efficiency, reliability and performance advantages. In South Korea, we have delivered five 16V250 marine diesel engines to power tuna purse seiners. Our latest 250 series engine development meets IMO Tier III in-engine, without the use of Selective Catalytic Reduction (SCR) or urea after-treatment.
· Integrated Compressor Line (ICL)
ICL is a centrifugal compressor directly driven by high-speed electric motors for applications up to 15 MW / 20,000 hp. It delivers high efficiency and reliability, fast start/stop, low maintenance, low operating cost, and a much broader operating range than conventional compressors. Clean, efficient and convenient, ICL is the ideal compression solution when a small footprint and low noise level are important.
· Exhaust Heat-to-Power Products
Echogen Power Systems’ exhaust heat-to-power products use CO2 in a closed loop configuration. These products enhance GE’s mechanical, hybrid and all-electric propulsion system solutions, allowing the overall system thermal efficiency to increase up to 50%.
GE Marine to Showcase Technologies at the Pacific 2015 International Maritime Exposition
Sydney – Today at the Pacific 2015 maritime exposition at booth number 3Q-10, GE is proud to showcase some of its most recent technologies that are helping to transform the global marine industry.
GE Marine offers integrated full electric propulsion and hybrid auxiliary propulsion systems for a wide range of naval ships. GE’s naval expertise includes gas turbine and diesel engine prime movers, power generating equipment, electrical distribution, variable speed drives and propulsion motors, vessel automation, dynamic positioning (DP), and damage control. These reliable and flexible solutions help customers drive operational excellence, efficiency and meet environmental regulations.
GE Marine has the latest propulsion system solutions to fit the needs of future Australian programs such as the SEA 5000 frigate, support ship and Antarctic research vessel. Currently 16 LM2500 gas turbines power the RAN’s Adelaide- and ANZAC-class frigates. The LM2500 also will power five new RAN ships: HMAS Canberra Landing Helicopter Dock, the largest ship commissioned into RAN’s fleet; sister LHD HMAS Adelaide, under construction; and three Hobart-class Air Warfare Destroyers.
Separately, GE will provide the RAN with an LM2500 gas turbine in-service support contract — all with the aim of helping to ensure optimum fleet readiness and lower total cost of ownership. GE will also provide program management and on-site field service support, and will handle warehouse and inventory management including spare parts and inventory replenishment throughout the life of the contract.
The showcase technology is GE Marine’s hybrid propulsion system, similar to the arrangement used aboard the United States Navy’s USS Makin Island. Hybrid systems feature shaft wound or gearbox mounted electric propulsion motor replacing the propulsion diesel in the typical combined diesel and gas turbine propulsion architecture. The motor can deliver propulsion power or as a generator for power take-off to supply the ships distribution bus. Electric propulsion motors combined with gas turbines put overall efficiency and operational flexibility in the hands of the ship’s crew.
These power-dense gas turbines (i.e., high power in a light weight, small footprint) and efficient motors reduce noise, vibration and generally provide for a quieter warship.
Other advantages include:
Reduced life cycle cost: Greater fuel economy, improved reliability, decreased maintenance and reduced down time can result in substantial savings over the 30-year life of a typical warship.
Reduced noise and vibration: GE’s solution can achieve significant noise reduction through waveform smoothing technology on drives, electromagnetic design and patented anti-vibration technology in the motors. This enables good Anti-Submarine Warfare (ASW) capability without the need for resilient mounts and flexible couplings for the motor.
Configuration flexibility for maximum redundancy: Naval frigates are often designed around a single, large gas turbine for boost power. However having multiple gas turbines, along with efficient shaft wound motors, can provide much higher levels of redundancy.
Commercial Distribution Finance And Brunswick Corporation Renew Marine Dealer Financing Through 2019
CHICAGO — Commercial Distribution Finance (CDF), a division of GE Capital, announced today that its joint inventory-financing venture with Brunswick Corporation, Brunswick Acceptance Company (BAC), has been extended through 2019.
BAC provides boat dealers with a long-term source of wholesale inventory financing. The programs provided by BAC are exclusive to dealers of Brunswick boat brands and Mercury Marine engines in the United States. Brunswick boat brands include such prominent names as Sea Ray, Boston Whaler, Harris, Bayliner, Lund, Crestliner, and Lowe. BAC was originally formed in 2002; currently more than 600 dealers participate in the programs, often with multiple Brunswick brands in their dealerships.
“This successful partnership has provided a stable and competitive source of wholesale floor plan financing along with high-quality service to Brunswick marine dealers for more than a decade,” said Brunswick Chairman and Chief Executive Officer Dustan E. McCoy. “Through this extension, we are looking to ensure continued stability through 2019, while our partner, CDF, transitions to new ownership. BAC will continue to be an important part of our offering to dealers, and enhances the competitiveness of our brands.”
“We have built an even stronger relationship with Brunswick dealers as a result of the joint venture over the last 13 years, and we are delighted to continue to serve them,” said Bruce Van Wagoner, president of CDF’s marine business. “We will continue our successful collaboration with Brunswick to ensure the growth and health of the dealer network.”
For more than 50 years and through all business and economic cycles, CDF has offered customer-centric floorplan financing programs that enable marine dealers to stock a broad selection of new and pre-owned products. Floorplan financing, also known as inventory financing, is an important element of a successful manufacturer-dealer business model as manufacturers and distributors benefit from enhanced product flow and increased sales opportunities, and dealers obtain improved terms and credit availability.
About Commercial Distribution Finance
Commercial Distribution Finance (CDF) provided $46 billion in financing for more than 40,000 dealers and more than 2,000 distributors and manufacturers globally in 2014. CDF operates in 60 countries and provides inventory financing solutions, service and intelligence through in-depth industry expertise and commitment. Programs include inventory and accounts receivable financing, asset-based lending, private label financing, collateral management, and related financial products. For more information, visitgecdf.com or follow company news via Twitter (GEInventoryFin).
GE (NYSE: GE) imagines things others don’t, builds things others can’t and delivers outcomes that make the world work better. GE brings together the physical and digital worlds in ways no other company can. In its labs and factories and on the ground with customers, GE is inventing the next industrial era to move, power, build and cure the world. www.ge.com
About Brunswick
Headquartered in Lake Forest, Ill., Brunswick Corporation endeavors to instill “Genuine Ingenuity”(TM) in all its leading consumer brands, including Mercury and Mariner outboard engines; Mercury MerCruiser sterndrives and inboard engines; MotorGuide trolling motors; Attwood and Whale marine parts and accessories; Land ‘N’ Sea, Kellogg Marine, Diversified Marine, BLA and Bell RPG parts and accessories distributors; Bayliner, Boston Whaler, Brunswick Commercial and Government Products, Crestliner, Cypress Cay, Harris, Lowe, Lund, Meridian, Princecraft, Quicksilver, Rayglass, Sea Ray and Uttern boats, and Life Fitness, Hammer Strength and SCIFIT fitness equipment, and Brunswick billiards tables, accessories and game room furniture and InMovement products and services for productive well-being. For more information, visit http://www.brunswick.com
Hapag-Lloyd Improves Service Between West Africa and Northern Europe
Effective August 10, Hapag-Lloyd will offer its customers a significantly improved service between West Africa and Northern Europe. The new West Africa Express service (WAX) provides highly competitive transit times to and from key markets – for instance 13 days from Antwerp to Dakar, and from Abidjan to Antwerp in only 11 days.
The improved service will be the only direct full container service from Hamburg and neighboring countries to West Africa. Furthermore, Hapag-Lloyd will offer this service as a standalone solution with high reliability and multiple connections to its comprehensive global service network at major transshipment ports. The future port rotation will be Antwerp – Hamburg – Algeciras – Dakar – Tema – Abidjan – Antwerp.
“Within the last years we have seen continuous growth from and to West Africa due to rising investments, growing import and export volumes as well as an increased demand for selected products from West Africa. We are absolutely confident that, with the new service, Hapag-Lloyd offers its customers an excellent and competitive product from and to this emerging market”, says Michael Pradel, Managing Director Region Europe of Hapag-Lloyd.
The first sailing of the new service is Antwerp on August 10 followed by Hamburg on August 12.
Treasury Sanctions Supporters of North Korea’s Ocean Maritime Management Company and Updates Sanctions List
WASHINGTON – The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today designated one individual and one company, and identified as blocked property a vessel in which the company has an interest. The individual and the company designated today are linked to Ocean Maritime Management Company (OMMC), a North Korean shipping company that OFAC had previously designated. Today’s designations were made pursuant to Executive Order (E.O.) 13551, which blocks the property of persons who, among other things, have attempted to import arms or related material into the DPRK or have provided support for such activities or to other persons designated under this E.O. As a result of today’s actions, any property or interests in property of the designated persons that are or come within U.S. jurisdiction must be frozen. Also, transactions by U.S. persons or within the United States involving the property of designated persons, including the identified vessel, are generally prohibited.
In addition to these designations, OFAC also updated the entries on OFAC’s Specially Designated Nationals and Blocked Persons List (SDN List) to include known aliases for OMMC and two Tanchon Commercial Bank officials. Tanchon Commercial Bank is known as the primary financial facilitator of North Korea’s ballistic missile program.
“Arms shipments transported by OMMC serve as a key resource for North Korea’s ongoing proliferation activities. Sales from these shipments contribute to North Korea’s other illicit programs,” said Acting Under Secretary for Terrorism and Financial Intelligence Adam J. Szubin. “We are working to make it as challenging as possible for North Korea to continue its unlawful behavior by actively targeting anyone or any business that supports these illicit arms transfers.”
Designation of Senat Shipping Company and its President
In July 2014, the United States and the United Nations (UN) imposed sanctions on OMMC, a shipping company that attempted to import a concealed shipment of arms and related materiel into the DPRK. Today, OFAC designated Singapore-based Senat Shipping Company (Senat) for providing material support to OMMC. This extensive support to OMMC includes arranging the purchase, repair, certification, and crewing of OMMC vessels. OFAC also designated Senat’s President, Leonard Lai, for providing material support to and acting for or on behalf of Senat. Also, OFAC identified the vessel “Dawnlight” as property of Senat.
Updates to the entries on OFAC’s Specially Designated Nationals and Blocked Persons List
Since its designation in July 2014, OMMC has continued to operate through multiple front companies and representative offices to evade sanctions. OMMC’s headquarters in Pyongyang, North Korea created aliases – such as Haeyang Crew Management Company and Korea Mirae Shipping Company Ltd – to evade sanctions. For this reason, Haeyang Crew Management Company and Korea Mirae Shipping Company Ltd are being added to OMMC’s SDN List entry as alternative names for OMMC.
Kim Tong-Myo’ng and Ra Ky’ong-Su were initially designated under E.O. 13382, an authority aimed at freezing the assets of proliferators of weapons of mass destruction and their supporters. Kim is actively working for Tanchon Commercial Bank and travels under an alias. Ra is actively working for Tanchon Commercial Bank and also uses an alias. For this reason, new aliases for both Kim and Ra are being added to their respective SDN List entries as alternative names.
GE Capital, Commercial Distribution Finance is Preferred Lender to American Boat Builders Association through 2018
CHICAGO — GE Capital, Commercial Distribution Finance (CDF) announced today that it has extended its inventory financing agreement with the American Boat Builders Association (ABA), a major buying group for independent boat builders in the U.S., through 2018. CDF has been a preferred lender to ABA’s members since the organization’s inception in 1992.
“We are happy to extend our mutually beneficial relationship with CDF and look forward to growing with them in the years ahead,” said Bill Yeargin, chairman of ABA and CEO of Correct Craft. “CDF has been a trusted resource for many years and provides ABA companies with much more than just inventory financing.”
The ABA’s board of directors has extended the agreement designating CDF a preferred inventory financing provider to its members through model year 2018. Those members, and their brands, are as follows:
Chaparral and Robalo Boats
Cobalt Boats
Correct Craft (Nautique Boat Company and Fineline Industries (Centurion and Ski Supreme Boats) and Arkansas Boat Company (Basscat Boats and Yarcraft Boats)
Grady White Boats
Nautic Global Group (Aqua Patio Pontoons, Godfrey Pontoons, Hurricane Boats, Polarkraft Boats, Rinker Boats, Sanpan Pontoons and Sweetwater Pontoons)
Nautic Star Boats
Porter, Inc. (Formula Boats)
Regal Marine Industries
S2 Yachts, Inc. (Tiara Yachts and Pursuit Boats)
Seabring Marine Industries (Monterey Boats)
Stingray Boats
Tige Boats
“We are thrilled that the ABA has extended its financing program with us, which is a testament to our longstanding relationship and commitment with its members and the industry,” said Bruce Van Wagoner, president of CDF’s marine group. “Our goal will be to continue to provide the ABA with a value proposition that includes reliable financing, business intelligence, integrated systems and outstanding customer service that they have come to know and expect over the last 20+ years.”
About The American Boat Builders Association
Based in Marietta, GA, the American Boat Builders Association is a coalition of 12 leading independent U.S. boat manufacturers with 25 brands. ABA member companies have approximately 5,000 employees in the U.S., with 17 facilities in eleven states. They produce more than 15% of all the fiberglass boats greater than 16′ built in America. For more information, go to http://www.ababoats.com/.
About GE Capital, Commercial Distribution Finance
GE Capital, Commercial Distribution Finance provided $36 billion in financing for more than 30,000 dealers and more than 3,000 distributors and manufacturers in the U.S. and Canada in 2014. Programs include inventory and accounts receivable financing, asset-based lending, private label financing, collateral management and related financial products. For more information, visit gecdf.com or follow company news via Twitter (GEInventoryFin).
GE (NYSE: GE) imagines things others don’t, builds things others can’t and delivers outcomes that make the world work better. GE brings together the physical and digital worlds in ways no other company can. In its labs and factories and on the ground with customers, GE is inventing the next industrial era to move, power, build and cure the world. www.ge.com
Hapag-Lloyd Improves Safety of Dangerous Goods Transportation – New Watchdog Software Developed
Last year, Hapag-Lloyd discovered 2,620 cases of incorrectly declared dangerous goods that were prevented from being shipped. Dangerous goods experts at Hapag-Lloyd investigated over 162,000 suspicious cases which were recorded using a newly developed watchdog software. The watchdog programme continuously examines Hapag-Lloyd’s cargo data to identify anything conspicuous and has a database of more than 6,000 keywords that is constantly being added to and refined. Dangerous goods that are declared imprecisely, incorrectly or not at all have the potential to pose a major risk to crews, ships, the environment and other cargo on board. The exact number of dangerous goods shipments in containers that are – knowingly or unknowingly – declared either incorrectly or not at all was difficult to estimate up until now. Hapag-Lloyd has now provided exact figures for the first time.
“The percentage of incorrectly declared dangerous goods shipments may not seem all that high in light of the six million standard containers transported by Hapag-Lloyd annually. However, if you consider that a single incorrectly declared container is enough to cause a disaster, the devastating potential of every single incorrect or non-declaration becomes clear,” says Ken Rohlmann, head of the dangerous goods department at Hapag-Lloyd. “As one of the market leaders in the transportation of dangerous goods, we have therefore looked for a solution to ensure much greater safety. The same cargo does not pose an acute risk if it is transported correctly.” Rohlmann also presented Hapag-Lloyd’s findings and its watchdog software at a recent meeting of the Port Safety Commission in Hamburg. “Other shipping companies have also shown significant interest in our software as the issue is one of the main challenges for the whole shipping industry in the dangerous goods sector. The safer the entire sea transport system is, the better for everyone,” he says.
Hapag-Lloyd has been developing the watchdog programme since 2011. With their many years of experience, Hapag-Lloyd’s dangerous goods experts played a key role in programming effective search routines. The dangerous goods department was created almost 50 years ago and was the first in the shipping industry. Since then, Hapag-Lloyd’s internal specifications on dangerous goods have repeatedly formed the basis for statutory regulations and have thus become mandatory for the entire industry.
Maritime Companies APL, MOL, NYK Launch Joint Service Between Asia and South America
APL, Mitsui O.S.K. Lines (MOL) and Nippon Yusen Kaisha (NYK) today announced the launch of a new joint service between the major trading hubs of Asia and key ports in Mexico, Colombia and Panama.
In a joint statement made by the carriers, APL, MOL and NYK said Asia is an important market for exporters in Latin America. By providing weekly sailings, competitive transit times, as well as regional connectivity to Central America, West Coast South America and the Caribbean basin, the lines are confident that shippers would be well-served, in particular those who are moving refrigerated cargo from Latin America to the fast growing Asian markets.
The Asia- South America Service (ASA) service replaces the Southeast Asia 1 (SE1) service. Eight post-Panamax ships of about 6000 TEUs will be deployed in the joint service. APL will operate six vessels while MOL and NYK will operate one vessel each.
Port rotation for the current SE1 service: Singapore – Chiwan – Kaohsiung – Los Angeles – Manzanillo – Lazaro Cardenas – San Pedro – Yokohama – Kaohsiung – Singapore
Port rotation for the new ASA service: Pusan – Yangshan – Chiwan – Hong Kong – Kaohsiung – Manzanillo – Lazaro Cardenas – Buenaventura – Balboa – Lazaro Cardenas – Manzanillo – Yokohama – Pusan
The first sailing of the new ASA service will depart Pusan 22 May 2015.
Rolls-Royce Builds on a Decade of Marine Research Collaboration
Ten years ago, Rolls-Royce partnered with the Norwegian University of Science and Technology (NTNU) and the Marintek Research Centre to create a unique research centre in Norway. The partners have today renewed their agreement in Trondheim, Norway, pledging to continue to develop high-tech solutions for the maritime sector, focusing on improving ship performance in rough seas.
Rune Garen, Director of Propulsion Research &Technology, Rolls-Royce, said: “This is a very close collaboration between industry and academia, where we as a company not only contribute funds, but also take part in the research effort.”
The research centre follows a model that Rolls-Royce has developed with universities worldwide: the Rolls-Royce University Technology Centre (UTC). This is the only centre of its kind in Norway, and one of two in the Nordic region. The second Nordic UTC, in collaboration with the Chalmers University of Technology in Gothenburg, Sweden, is also focused on marine technology. Rolls-Royce has established 31 UTC partnerships around the world.
Attending the event, Ric Parker, Director of Research & Technology, Rolls-Royce, said: “Rolls-Royce has a proud history of innovation and continues to develop its Marine business with cutting edge products and services. The Trondheim UTC makes a significant contribution to our understanding of the behaviour of ships and propulsion systems in extreme sea conditions, feeding into our award-winning designs. Trondheim is a key member of our strategic academic network of 31 UTCs worldwide and we are happy to be extending this successful partnership.”
Depending on the number of ongoing projects, Rolls-Royce meets 25-40 per cent of the Norwegian centre’s funding requirement. The partnership also receives substantial support from the Research Council of Norway. Rolls-Royce plays an active role in the research effort itself and the centre’s work contributes real value for the maritime industry, one of Norway’s most important industries.
“This is an exceptionally good example of how R&D contributes to the development of strong business clusters. The aim of the collaboration in Trondheim is to boost research in areas that are strategically important for Rolls-Royce and that have the potential for commercialisation,” said Rune Garen. The UTC in Trondheim currently has a research staff of seven researchers and four PhD candidates.
About Rolls-Royce Holdings plc
Rolls-Royce’s vision is to create better power for a changing world via two main business divisions, Aerospace and Land & Sea. These business divisions address markets with two strong technology platforms, gas turbines and reciprocating engines. Aerospace comprises Civil Aerospace and Defence Aerospace. Land & Sea comprises Marine, Nuclear and Power Systems.
Rolls-Royce has customers in more than 120 countries, comprising more than 380 airlines and leasing customers, 160 armed forces, 4,000 marine customers including 70 navies, and more than 5,000 power and nuclear customers.
Our business is focused on the 4Cs:
Customer – placing the customer at the heart of our business
Concentration – deciding where to grow and where not to
Cost – continually looking to increase efficiency
Cash – improving financial performance.
Annual underlying revenue was £14.6 billion in 2014, around half of which came from the provision of aftermarket services. The firm and announced order book stood at £73.7 billion at the end of 2014.
In 2014, Rolls-Royce invested £1.2 billion on research and development. We also support a global network of 31 University Technology Centres, which position Rolls-Royce engineers at the forefront of scientific research
Rolls-Royce employs over 54,000 people in more than 50 countries. Over 15,500 of these are engineers.
The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills. In 2014 we employed 354 graduates and 357 apprentices through our worldwide training programmes. Globally we have over 1,000 Rolls-Royce STEM ambassadors who are actively involved in education programmes and activities; we have set ourselves a target to reach 6 million people through our STEM outreach activities by 2020.
