Category Archives: Uncategorized

A taste of irony: LNG tanker transits new Panama Canal locks

LNG is an area in which we can expect the new bigger Panama Canal to make a great difference in trade patterns. The major source of US export LNG will be in the deep south, the US Gulf Coast. There are also major LNG processing and storage facilities in the Caribbean island nations.  Transit times to Asia and to South America will be substantially improved, making US LNG exports competitive from a transportation standpoint.  And it appears the canal is accomplishing that.

So why hasn’t the flow of tankers happened yet?  The Canal management expects it to happen soon.  But wait a minute!  Just as for container ships, it appears that the Gulf Coast tanker ports cannot handle the larger vessels. They need operational and infrastructure improvements to support the larger ships’ needs for berthing, loading, and unloading.

Isn’t it ironic?  All the angst over dredging East Coast ports for container ships and rigging terminals to unload big ships fast, and no one thought of the same issues for tankers? Is no one in shipping thinking about supply chains?

Here’s the nice story by Deepa Vijiyasingam of Platts.

Platts Source: First LNG tanker transits new Panama Canal locks; 54 vessels through: ACP – Shipping | Platts News Article & Story

‘Bizarre twist’ – HMM woos 2M Alliance

More about alliances!  Obviously there are not strong ties.

Speculation and debate continued today as to why Hyundai Merchant Marine has found itself in talks with Maersk and MSC

Source: ‘Bizarre twist’ as HMM changes tack and starts to woo 2M Alliance for membership – The Loadstar

OOCL launches first capacity cuts on transpacific

Supply and demand hits again.  Freight rates on Asia to US routes are ultra low right now.  This service will stop for 6 weeks.  Perhaps it’s gone forever, as supply chains get used to doing without it.  The 6 weeks gives them a chance to see about bookings for the big summer buildup for the US holidays.

Capacity cuts on the transpacific trade were likely to be on their way. OOCL and the G6 alliance led today with CC1 service suspension.

loadstar-logo  Source: OOCL launches the first capacity cuts on the transpacific as freight rates sink to unsustainable levels – The Loadstar