Shipping

Hong Kong dockers’ pay sets tone for future strife

7 May 2013

Port workers have ended a month-long strike and accepted a 9.8 pct pay rise - half their original demand. Yet the conflict highlighted Hong Kong’s growing inequality and rising living costs. As China’s economy slows and shifts, dockers and employers will be increasingly at odds.

China export mystery fuels statistical scepticism

10 Apr 2013

Exports to Hong Kong jumped a staggering 93 percent in March, even as trade with the developed world fell. What’s going on? Companies may be disguising capital flows as trade. But however the aberration is explained, it provides another reason to mistrust official data.

Vietnam floats a lifeboat for foreign creditors

8 Feb 2013

The government has helped end a two-year standoff between bankrupt shipbuilder Vinashin and overseas lenders by guaranteeing a new $620 million bond. That will aid the country’s capital market rehabilitation. But the victims of other shipwrecks shouldn’t count on similar rescues.

Titanic’s century-old metaphor misses the point

11 Apr 2012

The famous 1912 sinking tells us something eternal. Life, even the most privileged, is like an ocean voyage, and then the ship goes down and you die. It also seems like a warning against modern hubris. But an iceberg couldn’t stop the spread of ever more advanced technologies.

Brazilian billionaire buys time from Gulf

26 Mar 2012

Eike Batista may be the richest man in Latin America’s biggest economy, but he runs a cash-hungry empire. His sprawling oil and mining group is in its infancy. The $2 bln infusion of patient Abu Dhabi money should help Batista try to make good on his promise.

Activists land rare European win with TNT

19 Mar 2012

The Dutch courier’s $6.8 bln sale to UPS is a rare victory for activist investors after a lean patch in Europe. They are likely to score again with the $2 bln buyout of Britain’s Misys. Corporate stragglers: beware. Results like these will embolden troublemakers.

UPS could be bidding against itself for TNT

22 Feb 2012

The huge available synergies mean the $73 bln U.S. parcel giant could sweeten its takeover offer for its Dutch rival. TNT shareholders are for now expecting at least 9 pct more. But with rivals FedEx and DHL inhibited in varying ways, they may not get the bidding war they’d like.

World not ending – except maybe for shipping

6 Feb 2012

The Baltic Dry Index was a good crisis indicator in 2008. The measure of cargo ship rental costs just fell below the last-crisis low. End of the world? Probably not. World trade, well above pre-crisis peaks, is growing, albeit slowly. There’s just too much capacity on the seas.

Global Ports breaks Russian IPOs pricing curse

30 Jun 2011

Investor scepticism over greedy valuations has forced Russian issues to be pulled or sent shares tanking. But the strong showing of Global Ports up 18 percent on the day of its London debut suggests issuers may begin to understand the need for an attractive discount.

China’s truckers sound bum note on reforms

26 Apr 2011

Sure, fuel price hikes and high fees penalise the truck drivers who staged last week's strikes. But pricier petrol is essential for a more balanced, less polluted China. If the authorities are too wary of upsetting vested interests, necessary reforms will be stifled.

China may spur growth with Panama Canal rail idea

14 Feb 2011

A railroad across Colombia, carrying coal westward and Chinese semimanufactured goods eastward, looks plausible. Colombia's infrastructure shortage is a major barrier to growth; efficient and rapid Chinese help in providing it could have a huge multiplier effect.

Hutchison spin-off creates nice strategic problem

20 Jan 2011

There's financial logic in the Hong Kong conglomerate's plan to list some of its port operations. The tougher question is what to do with the proceeds. Investors have been pushing for Hutchison to up dividends. But repaying debt and investing in growth looks the wiser course.

Singapore lands one on HK in $6 bln Hutchison IPO

18 Jan 2011

Hong Kong conglomerate Hutchison Whampoa is to take advantage of Singapore's taxefficient trust law to list its port operations there. The deal is payback for the city state's longstanding efforts to be a competitive financial centre. For Hong Kong, it's a wakeup call.

Richest Brazilian reaps $3.5 bln from IPO stumble

19 Mar 2010

Eike Batista s reputation for a golden touch has suffered from slashing the sale of OSX shares. Even so, the shipbuilder raised $1.6 bln, and the billionaire s investment has multiplied 100fold on paper. OSX s new shareholders are betting there s more upside to come.

Brazil’s richest man offers risky but alluring IPO

11 Mar 2010

A $5.6 billion float of a firm with no profit evokes the internetbubble era. But rigbuilder OSX is a chance for investors to bet on the hot Brazilian oil sector and Eike Batista, the fastest riser on Forbes' rich list. The combination makes it sound more Amazon than Pets.com.

China Shipbuilding IPO mania well deserved

10 Dec 2009

It is easy to dismiss the shipping equipment maker's $2.2 billion exuberant listing as Shanghai IPO mania, but the premium rating makes sense. China has overtaken Korea to hold the world's largest ship order book and robust naval ambitions add extra buoyancy.

Maersk goes shopping because it’s feeling blue

3 Sep 2009

The world s largest container shipping line is gearing up for acquisitions days after reporting a $548m firsthalf loss. But a $1.6bn share placing could point to deeper insecurity about financing and the prospects for the whole shipping industry.

Shipping industry adrift in global slowdown

21 Apr 2009

The global shipping fleet is still growing at a record pace. But world trade is set to decline 9%. The excess supply will last for years. Shippers and their financiers may benefit from lower costs once trade recovers. But in the meantime, it's all about survival.

World needs more trade credit, and fast

4 Mar 2009

The IMF has warned the downturn in global trade threatens a new chapter in the financial crisis. The problem is exacerbated by a shortage of trade finance. Governments should take notice. A boost in trade credit could keep problems in the weakest nations from getting too nasty.

Shippers can’t jump-start world trade

20 Nov 2008

Too many ships, too little demand and expensive trade credit have pulled the Baltic Dry Index down 93% since May. That s dire, even for a cyclical industry. Netting counterparty risk might help a little, but shippers will remain at the mercy of the sputtering financial system.