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23 Nov: Cosco 0.265, -3.3%
GodOfTrader ( Date: 23-Nov-2016 02:46) Posted:
|
Cosco Corporation Prediction (Within 6 Months)- Updated Correct info
31 Aug (Closed @ $0.26)- Before market open, I predict that Cosco Corporation will rise to within $0.32 to $0.36 before April 2017 (updated on 22 Nov, in view of fair price calculated of $0.33/share of 30% to be bought by China Shipping Group internally)
As at 30 September 2016, its order book stood at about US$6.8 billion with progressive deliveries up to 2019.
22 Nov- My view: In long run, Cosco Corporation is likely to increase towards its $0.33 Fair price value. [Prediction upgraded to $0.32 to $0.36+ by End April 2016]
On 16 Nov: A Fair Price calculated of around $0.33 per share (30% internally to be bought from SembMarine) is to be bought over by China Shipping Group, with conditions once approved by End Dec/ Earlier. No changes to China Shipping Group %.
Upon completion of this transaction, the equity interest of COSCO Group in CSG will increase from 3% to 33%, the equity interest of the Company in CSG will remain unchanged at 51%, and the equity interests of Shanghai Ocean Industrial Company and Guangzhou Ocean Investment Management Company (which are also subsidiaries of COSCO Group) in CSG will remain unchanged at 8% each.
Cosco Corporation vs Yangzhijiang Comparison (Bonus Analysis- Within 2 Years):
Cosco Coporation will continue to rise till half of Yangzhijiang Stock Value, while Yangzhijiang continues to fall over the long term.
2 Sep- Cosco Corporation ($0.26) vs YZJ Shipbldg SGD ($0.73)
5 Sep- Cosco Corporation ($0.275: +$0.015) vs YZJ Shipbldg SGD ($0.765)
6 Sep- Cosco Corporation ($0.275) vs YZJ Shipbldg SGD ($0.79)
7 Sep- Cosco Corporation ($0.275) vs YZJ Shipbldg SGD ($0.77)
8 Sep- Cosco Corporation ($0.29) vs YZJ Shipbldg SGD ($0.79)
9 Sep- Cosco Corporation ($0.29) vs YZJ Shipbldg SGD ($0.78)
13 Sep- Cosco Corporation ($0.28) vs YZJ Shipbldg SGD ($0.755)
14 Sep- Cosco Corporation ($0.27) vs YZJ Shipbldg SGD ($0.75)
15 Sep- Cosco Corporation ($0.28) vs YZJ Shipbldg SGD ($0.74)
4 Oct- Cosco Corporation ($0.26) vs YZJ Shipbldg SGD ($0.75)
5 Oct- Cosco Corporation ($0.27) vs YZJ Shipbldg SGD ($0.755)
6 Oct- Cosco Corporation ($0.28) vs YZJ Shipbldg SGD ($0.78)
7 Oct- Cosco Corporation ($0.28) vs YZJ Shipbldg SGD ($0.77)
16 Nov- Cosco Corporation ($0.27) vs YZJ Shipbldg SGD ($0.815)
18 Nov- Cosco Corporation ($0.27) vs YZJ Shipbldg SGD ($0.775)
18 Nov- Cosco Corporation ($0.275) vs YZJ Shipbldg SGD ($0.815)
Previous Analysis [http://www.sharejunction.com/sharejunction/listMessage.htm?topicId=7821& recordCount=20]:
21 Nov News
China Ocean Shipping advances in Cruise Operation in Piraeus
http://www.tornosnews.gr/en/transport/cruises/20683-cosco-eyes-cluster-cruise-concept-to-lure-operators-in-piraeus-port.html
16 Nov- CHANGE OF SHAREHOLDER IN COSCO SHIPYARD GROUP CO., LTD.
The Board of Directors of COSCO Corporation (Singapore) Limited (the &ldquo Company&rdquo ) wishes to announce that the Company has been informed that Sembcorp Marine Ltd has entered into a sale and purchase agreement to dispose of its 30% equity interest in COSCO Shipyard Group Co., Ltd. (&ldquo CSG&rdquo ), the Company&rsquo s 51% owned subsidiary, to China Ocean Shipping (Group) Company (&ldquo COSCO Group&rdquo ). Following the completion of this transaction, Sembcorp Marine Ltd will cease to have any interest in CSG except via its investments of 4.98% shareholdings in the Company. The completion of the disposal is conditional upon the fulfilment of certain conditions. Upon completion of this transaction, the equity interest of COSCO Group in CSG will increase from 3% to 33%, the equity interest of the Company in CSG will remain unchanged at 51%, and the equity interests of Shanghai Ocean Industrial Company and Guangzhou Ocean Investment Management Company (which are also subsidiaries of COSCO Group) in CSG will remain unchanged at 8% each.
15 Nov (News):
Seller (SembMarine) is planning to sell to Buyer (China Ocean Shipping) its 30 per cent stake in Cosco Shipyard Group (CSG) for 1.06 billion yuan (S$220.68 million).
SembMarine announced the acquisition of the 30 per cent stake in CSG in 2004. Following the transaction, SemMarine will still have 4.98 per cent shareholding in Cosco Corporation (Singapore)
In a Singapore Exchange filing on Tuesday, the group said it has entered into a sale-and-purchase agreement with China Ocean Shipping (Group) Company on the sale.
The deal is conditional upon approvals by the relevant Chinese regulatory authorities, internal approvals and the issuance of a new Foreign-Investment Enterprise on or before Dec 31.
As usual, i am glad that China Ocean Shipping Group is smart to take hold of Cosco Corporation (Singapore) at a low price. My advise to company e.g. NOL, F& N in the past are taken in well regards and add value to their companies & i predict before event happened as usual :)
Calculation:
30% of 2,239,245,000 = 671,773,500 shares
Selling Price of S$220,680,000 / 671,773,500 shares = S$0.33/ Shares
http://www.businesstimes.com.sg/companies-markets/sembmarine-to-sell-30-stake-in-cosco-shipyard-for-106b-yuan
13 Oct (Prediction before Event Happened):
At current low price, with another SGD 276,804,446 (276 Millions)- in event of a takeover can be completed. This costs is even less than a Terminal & can be easily acquired by China Ocean Company. I do not expect Cosco to remain listed for long, given the low price. Sembcorp Industries Ltd is smart to hold 4.97% LOL.
But takeover (if that happens) will roughly be 300 to 400 Millions to acquire at a higher price from the minority shareholders and market.
I suggest CMA CGM to buy up some % of Cosco Corporation, so that in future it controls part of Cosco Shipyard business and can build its fleets at a cheaper rate.
Current Share Price is too low, which is highly advantageous to competitors to buy and control Cosco Shipyard which may be highly profitable once its newly acquired Piraeus Port and Middle East Port operates alongside with its shipyard business.
As Cosco had left a loophole of not securing high%, part of its Shipyard Business can still be acquired by its Competitors (e.g. Maersk Line/ CMA CGM) in the open market.
TigerAir was around this low price, when SIA announced a takeover of $0.40 previously.
Could Cosco Corporation be another takeover target by its parent company (China Ocean Company- who had spent few hundred millions to billions buying Terminals)?
The answer will be very clear in times to come :)
Current Cosco Price are oversold to a Terminal Price, easily acquired in event of takeover.
At current low price, with another SGD 276,804,446 (276 Millions)- in event of a takeover can be completed. This costs is even less than a Terminal & can be easily acquired by China Ocean Company. I do not expect Cosco to remain listed for long, given the low price. Sembcorp Industries Ltd is smart to hold 4.97% LOL.
But takeover (if that happens) will roughly be 300 to 400 Millions to acquire at a higher price from the minority shareholders and market.
It is highly advantage to China Ocean Shipping (Group) Company.
It seems that China Ocean Shipping (Group) Company is secretly increasing its shares.
This is good strategy, especially as the Cosco Corporation shares price are at its low.
It is good to accumulate while the public is not noticing, booast up the % & synchronize with its other business.
| Substantial Shareholders | Number of shares held | Percent of shares held |
|---|---|---|
| China Ocean Shipping (Group) Company | 1,194,565,488 | 53.35% |
| Sembcorp Industries Ltd | 111,400,000 | 4.97% |
| Dimensional Fund Advisors LP | 21,327,600 | 0.95% |
| The Vanguard Group, Inc. | 16,848,314 | 0.75% |
| OCBC Securities Private Limited, Securities Arm | 11,215,024 | 0.5% |
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
As buyers defered taking of oil rigs, revenues will not be recorded during 3Q & 4Q 2016, 1Q 2017 but will be recorded at subsequent quarters.
The challenges ahead by Cosco Corporation will be overcomed in Mid 2017.
Do not expect Cosco Corporation to make profits within these 3 Quarters (Sep, Dec 2016 & Mar 2017), but the hope lies in the restructuring efforts of Cosco Shipping merging all its Shipyards entity in early 2017 and its mother company (Cosco Shipping Strength as the 4th Largest Carrier in the world, recent acquistion of numerous terminals around the world and its global ambition of the China Silk Road supported by China. With the injection of 1.8 Billion in Cosco Shipping by private investors, Cosco Corporation which is the subsidary & is also an intergrated supply chain structure within Cosco Shipping- The Future ahead is the new world of shipping! Though there are great efforts to be put in ahead, but i strongly believe in the revival of Cosco Corporation in the future. Do not think of making profits now, as every cycle of shipping had its own downs and ups, but Cosco Corporation is the only shipyard in SGX that its mother company keeps acquiring Terminals around the world at increasing speed. Its future cannot be underestimated!)
*Added (The Alliance may change as Japanese Shippers may merge)
Cosco Corporation shall revive in the future in the shipping when the Ocean Alliance is formed, one of the most contendous Shipping Alliance ever formed in the history of shipping!
The New World of Shipping
The Federal Maritime Commission (FMC) said last week it has concluded its review of the proposed Ocean Alliance.
Set to take effect today, October 24 and begin operations next April, the carrier members of the Ocean Alliance include: COSCO Shipping, CMA CGM, Evergreen Marine, and Orient Overseas Container Line Limited (OOCL).
With this agreement now intact, FMC said that its members can share vessels, charter and exchange space on each other& rsquo s ships, and enter into cooperative working agreements in international trade lanes between the United States and ports in Asia, Northern Europe, the Mediterranean, the Middle East, Canada, Central America, and the Caribbean.
Representatives for the Alliance called it a & ldquo milestone agreement among four of the world& rsquo s leading container shipping lines,& rdquo adding that Alliance will have nearly 400 vessels in its container fleet.
The new alliance come on the heels of the merger of Cosco and China Shipping& rsquo s container lines and CMA CGM& rsquo s move to buy Neptune Orient Lines (NOL), where it plans to pull container line APL out from the G6 Alliance.
The 2M Alliance, comprising Maersk and MSC is also being challenged by this move, analysts contend. Also brought into question is the future of Kawasaki Kisen Kaisha (K Line), Yang Ming Line and the since-departed Hanjin & ndash all members of the CKYHE alliance.
Chris Rogers, research director for Panjiva, said that the Ocean Alliance is probably the most stable of the three & ldquo new style& rdquo alliances.
& ldquo 2M (MSC and Maersk) have been considering whether to add Hyundai Merchant Marine, which may complicate matters if HMM buys some of Hanjin Shipping& rsquo s assets or routes,& rdquo he said. & ldquo The Alliance (led by Hapag-Llloyd) is supposed to include Hanjin Shipping as a member, so it may need to rethink its strategy.& rdquo
Rogers also said that the Ocean Alliance& rsquo s operations are mainly focused on U.S. routes, with Panjiva data showing that the Ocean Alliance had 19.8% of U.S. inbound, seaborne volumes in September. This compares to 18.2% when the alliance was first announced in April, and the current 2M Alliance& rsquo s 15.4% and 13.8% for The Alliance excluding Hanjin Shipping.
With the ocean cargo sector effectively going from 4 alliances to 3, when the Ocean Alliance takes effect in April 2017, the further concentration should enable the alliances, within themselves, to better control capacity as a means to improving revenue, explained Ben Hackett, founder of maritime consultancy Hackett Associates.
& ldquo But at the end of the day it depends whether the other two alliances do the same,& rdquo he said. & ldquo Should an alliance, or a member of an alliance break ranks on pricing and go for market share (as Maersk have suggested) then capacity planning goes out the window.
What this does is to create stronger service providers and also more clout to negotiate with terminals for lower handling costs. Cargo owners are afraid that these three stronger alliances may end up raising prices (and why should they not given the amount of losses that they have sustained). One can perhaps hope for more stability in the market.& rdquo
On a global basis, Hackett said that the EU is probably less sanguine about the alliances than the regulators in the U.S. and China. And despite the alliances the industry remains fragmented below the top 5, he noted, while also pointing out it is reasonable to expect to see some mergers and perhaps a carrier or two disappearing.
http://www.logisticsmgmt.com/article/ocean_alliance_gets_formal_fmc_approval
LNG to become the marine fuel in future
MSC (the 2nd largest carrier) had been secretly ordering LNG powered ships for its cruise ships with a record of $4.5 Billion.
CMA CGM (the 3rd largest carrier) had also been revamping and building LNG powered for its future containerships to achieve cheaper & cleaner fuel.
OCEAN Alliance may become the Top Shipping Alliance if Maersk joins (MSC Leaves Maersk on Ad-Hoc for Transpacific Route)
MSC may becomes the top carrier in future, in direct competion with Maersk Line as Maersk Line is seen left behind the Transpacific route.
MSC and Maersk (2M Alliance) may be in question in future due to competing nature.
OCEAN Alliance (currently the 2nd Biggest Shipping Alliance) may become the Top Shipping Alliance if Maersk joins.
Shipping & Shipyards are poised to make a comeback in mid 2017
Shipping & Shipyard industry is the only industry that have not make a turnaround yet.
Commodity industry have improved and commodity stocks value had increased substaintially.
Airline industry have recovered after mergers and consolidation of several airlines, and Airlines had been adjusting its airfreight for customers at an higher rate.
Shipping industry are posied to increase its seafreight to profitable levels of carriers, in view of the demise of Hanjin Shipping. The carriers are well aware that competing freight rates will not work well for them & shippers understands that rates had been too low for years. Maersk Line, CMA CGM & Hapaglloyd had increased the freight rates.
Seafreight is posied to increase to profitable level, following several mergers (CMA CGM & NOL-- now is CMA CGM), (China Shipping & Cosco-- now is Cosco Shipping) following Airline Carriers which had already increased rates. Top Sea Carriers are spearheading the changes of seafreight increase.
For shipyard industry, as LNG is to become marine fuel in future to meet emission requirements which is cheaper and cleaner than oil more LNG shipbuilding orders are expected to increase.
COSCO continues to expand on its Terminal Acquistion around the world
COSCO had recently acquired another piece of terminal assets (40% of Italy Vado Holding) from Maersk Group for US$58.3 Millions.
COSCO also make moves to raise $1.79 billion capital from private investors, this is expected to improve COSCO financial sheet.
HANJIN will eventually have to sell its Terminal Assets to pay off creditors
The demise of Hanjin Shipping, recently been putting up its US Assets for sale. However, it will not be substainial to pay off creditors. HMM is likely to buy some bigger fleets only.
The sales of Ship Assets are unlikely to attract the interest of Maersk Line or MSC, given that LNG powered carrier will become a new trend in future.
COSCO are interested in Hanjin Terminal Assets once it is put on the table of negotitation.
http://gcaptain.com/msc-cruises-reveals-plan-to-build-worlds-largest-lng-powered-cruise-ships-for-4-5-billion/
http://container-mag.com/2016/10/20/cma-cgm-works-develop-lng-powered-container-ships/
http://www.lngworldshipping.com/news/view,engie-agrees-lng-deal-with-cma-cgm_45052.htm
https://www.porttechnology.org/news/msc_leaves_maersk_behind_for_transpacific_route
https://theloadstar.co.uk/msc-introduces-standalone-transpacific-service-maersk-goes-ad-hoc/
http://www.joc.com/maritime-news/container-carriers-crucial-crossroad-china-cosco-chief-says_20161018.html
http://www.americanshipper.com/main/news/gri-roundup-maersk-line-cma-cgm-hapaglloyd-and-mol-65483.aspx
http://www.americanshipper.com/main/news/freight-rate-roundup-maersk-cma-cgm-and-hapaglloyd-65718.aspx
http://www.shanghaidaily.com/business/transport/COSCO-gets-40-of-Italys-Vado/shdaily.shtml
http://www.chinadaily.com.cn/business/2016-10/13/content_27045807.htm
http://www.todayonline.com/business/chinas-cosco-shipping-may-consider-buying-hanjin-shippings-port-assets-caixin
http://www.bloomberg.com/news/articles/2016-09-28/cosco-eyes-hanjin-terminals-after-738-million-abu-dhabi-deal
Shipping Demography:
As the demography of shipping is changing due to the breakup of Hanjin Shipping (7th Biggest Shipping Lines), which is the indicator of the Shipping Revival Beginning which will also positively affects its related business. The eventual bankrupcy of Hanjin Shipping had diversified its business to its Competitors, Shipping Lines had been raising Freight Rates to overturn the shipping margin environment since the announcement of Hanjin Shipping courts proceeding & shippers had been finding alternative shipping lines to deliver their products to avoid being affected by stalled deliveries. Business of Hanjin Shipping had been increasingly flowing out to other shipping lines, which is good for the overall shipping environment.
We can see that Shipping Lines will eventually benefits from Bankrupcy of Hanjin Shipping. Though the minority of Shipping Lines may get spaces of breathing from freight rate increases, but do not ensure their survival. However, the big Shipping Lines will benefits hugely from the consolidation of Shipping Industry. The Tigers of the Shipping Industry, Maersk Line and CMA CGM are both eyeing for business and assets of Hanjin Shipping with COSCOS as the the black horse (3rd Runner Up) for Hanjin Terminal Assets only.
The Battle of the Sea is getting more exciting- Who will win the Battle and eventually benefits?
(Editor: GodOfTrader. View: Personal Opinion)
COSCO TO DELIVER KHAZAK MODULES
Shipping line COSCO has been awarded a major transportation and logistics contract to deliver modules for an oilfield project in Astana, Kazakhstan.
The contract includes shipment of 1,800-ton modules to transshipment sites in the Black and Baltic seas from fabrication yards in Korea and Europe. COSCO will collaborate with a number of Korean Partners on the project, including Dongbang Transport Logistics, Hanjin Transportation, CJ Korea Express and Chung Yang Shipping.
The team responsible for delivery at COSCO will rely on a fleet of 18 semi-submersible vessels and deck carriers to carry out about 60 shipments between 2018 and 2020. Shipments are scheduled to pass via the ports of Burgas, Bulgaria and Hamina, Finland before delivery to western Kazakhstan by Russian Inland Waterway Systems.
http://www.breakbulk.com/cosco-deliver-khazak-modules/
Pls ignore below post- some typo to %. will reupdate.
GodOfTrader ( Date: 23-Nov-2016 01:28) Posted:
|
Cosco Corporation Prediction (Updated)
31 Aug (Closed @ $0.26)- Before market open, I predict that Cosco Corporation will
As at 30 September 2016, its order book stood at about US$6.8 billion with progressive deliveries up to 2019.
22 Nov- $0.275
Cosco Corporation vs Yangzhijiang Comparison (Bonus Analysis- Within 2 Years) - Omitteded in view of Cosco Corporation takeover is likely possible
*Prediction upgraded to rise within $0.32 to $0.36+ which is likely to happen before 30 April 2017 in view of a speedy takeover which is beneficial for China Ocean Shipping Group strategic layout.
Cosco Corporation ownership will be in the hand of China Ocean Shipping Group (will be holding a majority of 83.35%, once acquisition of 30% at $0.33/share from Sembmarine approved before End Dec/ earlier). Share price of Cosco Corporation is likely to rise towards $0.33 in the long run.
The remaining public float is 9.46%, while other combined shareholders hold 7.19%. In event of takeover, it will likely be speedy to maximum benefits of China Ocean Shipping.
The takeover of remaining shareholders is likely to be negotiated at a fair price of $0.33. If it did not pass, a renogotiation of $0.33 to $0.37 may be possible.
My advise for China Ocean Shipping: Speedy in takeover to maximum benefits of China Ocean Shipping.
Benefits for China Ocean Shipping:
- Easier for restructuring its combined shipyard business with Other China Entities to meet regulation
- Can map strategic layout to its other business operation
- Cost less than a terminal cost to buy up the remaining shares at low cost in view of future prospects
As of 22 Nov (*Dimensional Fund Advisors LP & The Vanguard Group, Inc.had increased their shares as compared to 13 Oct)
| Substantial Shareholders | Number of shares held | Percent of shares held |
|---|---|---|
| China Ocean Shipping (Group) Company | 1,194,565,488 | 53.35% |
| Sembcorp Industries Ltd | 111,400,000 | 4.97% |
| Dimensional Fund Advisors LP | 21,628,400 | 0.97% |
| The Vanguard Group, Inc. | 16,856,414 | 0.75% |
| OCBC Securities Private Limited, Securities Arm | 11,215,024 | 0.5% |
Previous Analysis [http://www.sharejunction.com/sharejunction/listMessage.htm?topicId=7821& recordCount=20]:
21 Nov News
China Ocean Shipping advances in Cruise Operation in Piraeus
http://www.tornosnews.gr/en/transport/cruises/20683-cosco-eyes-cluster-cruise-concept-to-lure-operators-in-piraeus-port.html
15 Nov (News):
Seller (SembMarine) is planning to sell to Buyer (China Ocean Shipping) its 30 per cent stake in Cosco Shipyard Group (CSG) for 1.06 billion yuan (S$220.68 million).
SembMarine announced the acquisition of the 30 per cent stake in CSG in 2004. Following the transaction, SemMarine will still have 4.98 per cent shareholding in Cosco Corporation (Singapore)
In a Singapore Exchange filing on Tuesday, the group said it has entered into a sale-and-purchase agreement with China Ocean Shipping (Group) Company on the sale.
The deal is conditional upon approvals by the relevant Chinese regulatory authorities, internal approvals and the issuance of a new Foreign-Investment Enterprise on or before Dec 31.
My Remarks:
According to SGX, China Ocean Shipping Group currently holds 53.35% of Cosco Corporation (Singapore).
Once approved, China Ocean Shipping Group will be holding 83.35% of Cosco Corporation (Singapore).
As usual, i am glad that China Ocean Shipping Group is smart to take hold of Cosco Corporation (Singapore) at a low price. My advise to company e.g. NOL, F& N in the past are taken in well regards and add value to their companies & i predict before event happened as usual :)
Calculation:
30% of 2,239,245,000 = 671,773,500 shares
Selling Price of S$220,680,000 / 671,773,500 shares = S$0.33/ Shares
After selling, the available float for retailers in market wil be 41.18% (-30%)to 11.18%.
http://www.businesstimes.com.sg/companies-markets/sembmarine-to-sell-30-stake-in-cosco-shipyard-for-106b-yuan
13 Oct (Prediction before Event Happened):
At current low price, with another SGD 276,804,446 (276 Millions)- in event of a takeover can be completed. This costs is even less than a Terminal & can be easily acquired by China Ocean Company. I do not expect Cosco to remain listed for long, given the low price. Sembcorp Industries Ltd is smart to hold 4.97% LOL.
But takeover (if that happens) will roughly be 300 to 400 Millions to acquire at a higher price from the minority shareholders and market.
I suggest CMA CGM to buy up some % of Cosco Corporation, so that in future it controls part of Cosco Shipyard business and can build its fleets at a cheaper rate.
Current Share Price is too low, which is highly advantageous to competitors to buy and control Cosco Shipyard which may be highly profitable once its newly acquired Piraeus Port and Middle East Port operates alongside with its shipyard business.
As Cosco had left a loophole of not securing high%, part of its Shipyard Business can still be acquired by its Competitors (e.g. Maersk Line/ CMA CGM) in the open market.
TigerAir was around this low price, when SIA announced a takeover of $0.40 previously.
Could Cosco Corporation be another takeover target by its parent company (China Ocean Company- who had spent few hundred millions to billions buying Terminals)?
The answer will be very clear in times to come :)
It is highly advantage to China Ocean Shipping (Group) Company.
It seems that China Ocean Shipping (Group) Company is secretly increasing its shares.
This is good strategy, especially as the Cosco Corporation shares price are at its low.
It is good to accumulate while the public is not noticing, booast up the % & synchronize with its other business.
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
As buyers defered taking of oil rigs, revenues will not be recorded during 3Q & 4Q 2016, 1Q 2017 but will be recorded at subsequent quarters.
The challenges ahead by Cosco Corporation will be overcomed in Mid 2017.
Do not expect Cosco Corporation to make profits within these 3 Quarters (Sep, Dec 2016 & Mar 2017), but the hope lies in the restructuring efforts of Cosco Shipping merging all its Shipyards entity in early 2017 and its mother company (Cosco Shipping Strength as the 4th Largest Carrier in the world, recent acquistion of numerous terminals around the world and its global ambition of the China Silk Road supported by China. With the injection of 1.8 Billion in Cosco Shipping by private investors, Cosco Corporation which is the subsidary & is also an intergrated supply chain structure within Cosco Shipping- The Future ahead is the new world of shipping! Though there are great efforts to be put in ahead, but i strongly believe in the revival of Cosco Corporation in the future. Do not think of making profits now, as every cycle of shipping had its own downs and ups, but Cosco Corporation is the only shipyard in SGX that its mother company keeps acquiring Terminals around the world at increasing speed. Its future cannot be underestimated!)
*Added (The Alliance may change as Japanese Shippers may merge)
Cosco Corporation shall revive in the future in the shipping when the Ocean Alliance is formed, one of the most contendous Shipping Alliance ever formed in the history of shipping!
The New World of Shipping
The Federal Maritime Commission (FMC) said last week it has concluded its review of the proposed Ocean Alliance.
Set to take effect today, October 24 and begin operations next April, the carrier members of the Ocean Alliance include: COSCO Shipping, CMA CGM, Evergreen Marine, and Orient Overseas Container Line Limited (OOCL).
With this agreement now intact, FMC said that its members can share vessels, charter and exchange space on each other& rsquo s ships, and enter into cooperative working agreements in international trade lanes between the United States and ports in Asia, Northern Europe, the Mediterranean, the Middle East, Canada, Central America, and the Caribbean.
Representatives for the Alliance called it a & ldquo milestone agreement among four of the world& rsquo s leading container shipping lines,& rdquo adding that Alliance will have nearly 400 vessels in its container fleet.
The new alliance come on the heels of the merger of Cosco and China Shipping& rsquo s container lines and CMA CGM& rsquo s move to buy Neptune Orient Lines (NOL), where it plans to pull container line APL out from the G6 Alliance.
The 2M Alliance, comprising Maersk and MSC is also being challenged by this move, analysts contend. Also brought into question is the future of Kawasaki Kisen Kaisha (K Line), Yang Ming Line and the since-departed Hanjin & ndash all members of the CKYHE alliance.
Chris Rogers, research director for Panjiva, said that the Ocean Alliance is probably the most stable of the three & ldquo new style& rdquo alliances.
& ldquo 2M (MSC and Maersk) have been considering whether to add Hyundai Merchant Marine, which may complicate matters if HMM buys some of Hanjin Shipping& rsquo s assets or routes,& rdquo he said. & ldquo The Alliance (led by Hapag-Llloyd) is supposed to include Hanjin Shipping as a member, so it may need to rethink its strategy.& rdquo
Rogers also said that the Ocean Alliance& rsquo s operations are mainly focused on U.S. routes, with Panjiva data showing that the Ocean Alliance had 19.8% of U.S. inbound, seaborne volumes in September. This compares to 18.2% when the alliance was first announced in April, and the current 2M Alliance& rsquo s 15.4% and 13.8% for The Alliance excluding Hanjin Shipping.
With the ocean cargo sector effectively going from 4 alliances to 3, when the Ocean Alliance takes effect in April 2017, the further concentration should enable the alliances, within themselves, to better control capacity as a means to improving revenue, explained Ben Hackett, founder of maritime consultancy Hackett Associates.
& ldquo But at the end of the day it depends whether the other two alliances do the same,& rdquo he said. & ldquo Should an alliance, or a member of an alliance break ranks on pricing and go for market share (as Maersk have suggested) then capacity planning goes out the window.
What this does is to create stronger service providers and also more clout to negotiate with terminals for lower handling costs. Cargo owners are afraid that these three stronger alliances may end up raising prices (and why should they not given the amount of losses that they have sustained). One can perhaps hope for more stability in the market.& rdquo
On a global basis, Hackett said that the EU is probably less sanguine about the alliances than the regulators in the U.S. and China. And despite the alliances the industry remains fragmented below the top 5, he noted, while also pointing out it is reasonable to expect to see some mergers and perhaps a carrier or two disappearing.
http://www.logisticsmgmt.com/article/ocean_alliance_gets_formal_fmc_approval
LNG to become the marine fuel in future
MSC (the 2nd largest carrier) had been secretly ordering LNG powered ships for its cruise ships with a record of $4.5 Billion.
CMA CGM (the 3rd largest carrier) had also been revamping and building LNG powered for its future containerships to achieve cheaper & cleaner fuel.
OCEAN Alliance may become the Top Shipping Alliance if Maersk joins (MSC Leaves Maersk on Ad-Hoc for Transpacific Route)
MSC may becomes the top carrier in future, in direct competion with Maersk Line as Maersk Line is seen left behind the Transpacific route.
MSC and Maersk (2M Alliance) may be in question in future due to competing nature.
OCEAN Alliance (currently the 2nd Biggest Shipping Alliance) may become the Top Shipping Alliance if Maersk joins.
Shipping & Shipyards are poised to make a comeback in mid 2017
Shipping & Shipyard industry is the only industry that have not make a turnaround yet.
Commodity industry have improved and commodity stocks value had increased substaintially.
Airline industry have recovered after mergers and consolidation of several airlines, and Airlines had been adjusting its airfreight for customers at an higher rate.
Shipping industry are posied to increase its seafreight to profitable levels of carriers, in view of the demise of Hanjin Shipping. The carriers are well aware that competing freight rates will not work well for them & shippers understands that rates had been too low for years. Maersk Line, CMA CGM & Hapaglloyd had increased the freight rates.
Seafreight is posied to increase to profitable level, following several mergers (CMA CGM & NOL-- now is CMA CGM), (China Shipping & Cosco-- now is Cosco Shipping) following Airline Carriers which had already increased rates. Top Sea Carriers are spearheading the changes of seafreight increase.
For shipyard industry, as LNG is to become marine fuel in future to meet emission requirements which is cheaper and cleaner than oil more LNG shipbuilding orders are expected to increase.
COSCO continues to expand on its Terminal Acquistion around the world
COSCO had recently acquired another piece of terminal assets (40% of Italy Vado Holding) from Maersk Group for US$58.3 Millions.
COSCO also make moves to raise $1.79 billion capital from private investors, this is expected to improve COSCO financial sheet.
HANJIN will eventually have to sell its Terminal Assets to pay off creditors
The demise of Hanjin Shipping, recently been putting up its US Assets for sale. However, it will not be substainial to pay off creditors. HMM is likely to buy some bigger fleets only.
The sales of Ship Assets are unlikely to attract the interest of Maersk Line or MSC, given that LNG powered carrier will become a new trend in future.
COSCO are interested in Hanjin Terminal Assets once it is put on the table of negotitation.
http://gcaptain.com/msc-cruises-reveals-plan-to-build-worlds-largest-lng-powered-cruise-ships-for-4-5-billion/
http://container-mag.com/2016/10/20/cma-cgm-works-develop-lng-powered-container-ships/
http://www.lngworldshipping.com/news/view,engie-agrees-lng-deal-with-cma-cgm_45052.htm
https://www.porttechnology.org/news/msc_leaves_maersk_behind_for_transpacific_route
https://theloadstar.co.uk/msc-introduces-standalone-transpacific-service-maersk-goes-ad-hoc/
http://www.joc.com/maritime-news/container-carriers-crucial-crossroad-china-cosco-chief-says_20161018.html
http://www.americanshipper.com/main/news/gri-roundup-maersk-line-cma-cgm-hapaglloyd-and-mol-65483.aspx
http://www.americanshipper.com/main/news/freight-rate-roundup-maersk-cma-cgm-and-hapaglloyd-65718.aspx
http://www.shanghaidaily.com/business/transport/COSCO-gets-40-of-Italys-Vado/shdaily.shtml
http://www.chinadaily.com.cn/business/2016-10/13/content_27045807.htm
http://www.todayonline.com/business/chinas-cosco-shipping-may-consider-buying-hanjin-shippings-port-assets-caixin
http://www.bloomberg.com/news/articles/2016-09-28/cosco-eyes-hanjin-terminals-after-738-million-abu-dhabi-deal
Shipping Demography:
As the demography of shipping is changing due to the breakup of Hanjin Shipping (7th Biggest Shipping Lines), which is the indicator of the Shipping Revival Beginning which will also positively affects its related business. The eventual bankrupcy of Hanjin Shipping had diversified its business to its Competitors, Shipping Lines had been raising Freight Rates to overturn the shipping margin environment since the announcement of Hanjin Shipping courts proceeding & shippers had been finding alternative shipping lines to deliver their products to avoid being affected by stalled deliveries. Business of Hanjin Shipping had been increasingly flowing out to other shipping lines, which is good for the overall shipping environment.
We can see that Shipping Lines will eventually benefits from Bankrupcy of Hanjin Shipping. Though the minority of Shipping Lines may get spaces of breathing from freight rate increases, but do not ensure their survival. However, the big Shipping Lines will benefits hugely from the consolidation of Shipping Industry. The Tigers of the Shipping Industry, Maersk Line and CMA CGM are both eyeing for business and assets of Hanjin Shipping with COSCOS as the the black horse (3rd Runner Up) for Hanjin Terminal Assets only.
The Battle of the Sea is getting more exciting- Who will win the Battle and eventually benefits?
(Editor: GodOfTrader. View: Personal Opinion)
COSCO TO DELIVER KHAZAK MODULES
Shipping line COSCO has been awarded a major transportation and logistics contract to deliver modules for an oilfield project in Astana, Kazakhstan.
The contract includes shipment of 1,800-ton modules to transshipment sites in the Black and Baltic seas from fabrication yards in Korea and Europe. COSCO will collaborate with a number of Korean Partners on the project, including Dongbang Transport Logistics, Hanjin Transportation, CJ Korea Express and Chung Yang Shipping.
The team responsible for delivery at COSCO will rely on a fleet of 18 semi-submersible vessels and deck carriers to carry out about 60 shipments between 2018 and 2020. Shipments are scheduled to pass via the ports of Burgas, Bulgaria and Hamina, Finland before delivery to western Kazakhstan by Russian Inland Waterway Systems.
http://www.breakbulk.com/cosco-deliver-khazak-modules/
Cosco Corporation Prediction (Within 6 Months)
31 Aug (Closed @ $0.26)- Before market open, I predict that Cosco Corporation will rise to within $0.30 to $0.34+ in less than 6 months, as it is the current strongest undervalued shipyard stock in SGX (with its parent company 4th Biggest Shipping Company that had acquired New Piraeus Port). It possesses higher potential to rise as compared to Yangzhijiang.
As at 30 September 2016, its order book stood at about US$6.8 billion with progressive deliveries up to 2019.
Cosco Corporation vs Yangzhijiang Comparison (Bonus Analysis- Within 2 Years):
Cosco Coporation will continue to rise till half of Yangzhijiang Stock Value, while Yangzhijiang continues to fall over the long term.
2 Sep- Cosco Corporation ($0.26) vs YZJ Shipbldg SGD ($0.73)
5 Sep- Cosco Corporation ($0.275: +$0.015) vs YZJ Shipbldg SGD ($0.765)
6 Sep- Cosco Corporation ($0.275) vs YZJ Shipbldg SGD ($0.79)
7 Sep- Cosco Corporation ($0.275) vs YZJ Shipbldg SGD ($0.77)
8 Sep- Cosco Corporation ($0.29) vs YZJ Shipbldg SGD ($0.79)
9 Sep- Cosco Corporation ($0.29) vs YZJ Shipbldg SGD ($0.78)
13 Sep- Cosco Corporation ($0.28) vs YZJ Shipbldg SGD ($0.755)
14 Sep- Cosco Corporation ($0.27) vs YZJ Shipbldg SGD ($0.75)
15 Sep- Cosco Corporation ($0.28) vs YZJ Shipbldg SGD ($0.74)
4 Oct- Cosco Corporation ($0.26) vs YZJ Shipbldg SGD ($0.75)
5 Oct- Cosco Corporation ($0.27) vs YZJ Shipbldg SGD ($0.755)
6 Oct- Cosco Corporation ($0.28) vs YZJ Shipbldg SGD ($0.78)
7 Oct- Cosco Corporation ($0.28) vs YZJ Shipbldg SGD ($0.77)
16 Nov- Cosco Corporation ($0.27) vs YZJ Shipbldg SGD ($0.815)
18 Nov- Cosco Corporation ($0.27) vs YZJ Shipbldg SGD ($0.775)
Previous Analysis [http://www.sharejunction.com/sharejunction/listMessage.htm?topicId=7821& recordCount=20]:
15 Nov (News):
Seller (SembMarine) is planning to sell to Buyer (China Ocean Shipping) its 30 per cent stake in Cosco Shipyard Group (CSG) for 1.06 billion yuan (S$220.68 million).
SembMarine announced the acquisition of the 30 per cent stake in CSG in 2004. Following the transaction, SemMarine will still have 4.98 per cent shareholding in Cosco Corporation (Singapore)
In a Singapore Exchange filing on Tuesday, the group said it has entered into a sale-and-purchase agreement with China Ocean Shipping (Group) Company on the sale.
The deal is conditional upon approvals by the relevant Chinese regulatory authorities, internal approvals and the issuance of a new Foreign-Investment Enterprise on or before Dec 31.
My Remarks:
According to SGX, China Ocean Shipping Group currently holds 53.35% of Cosco Corporation (Singapore).
Once approved, China Ocean Shipping Group will be holding 83.35% of Cosco Corporation (Singapore).
As usual, i am glad that China Ocean Shipping Group is smart to take hold of Cosco Corporation (Singapore) at a low price. My advise to company e.g. NOL, F& N in the past are taken in well regards and add value to their companies & i predict before event happened as usual :)
Calculation:
30% of 2,239,245,000 = 671,773,500 shares
Selling Price of S$220,680,000 / 671,773,500 shares = S$0.33/ Shares
After selling, the available float for retailers in market wil be 41.18% (-30%)to 11.18%.
http://www.businesstimes.com.sg/companies-markets/sembmarine-to-sell-30-stake-in-cosco-shipyard-for-106b-yuan
13 Oct (Prediction before Event Happened):
At current low price, with another SGD 276,804,446 (276 Millions)- in event of a takeover can be completed. This costs is even less than a Terminal & can be easily acquired by China Ocean Company. I do not expect Cosco to remain listed for long, given the low price. Sembcorp Industries Ltd is smart to hold 4.97% LOL.
But takeover (if that happens) will roughly be 300 to 400 Millions to acquire at a higher price from the minority shareholders and market.
I suggest CMA CGM to buy up some % of Cosco Corporation, so that in future it controls part of Cosco Shipyard business and can build its fleets at a cheaper rate.
Current Share Price is too low, which is highly advantageous to competitors to buy and control Cosco Shipyard which may be highly profitable once its newly acquired Piraeus Port and Middle East Port operates alongside with its shipyard business.
As Cosco had left a loophole of not securing high%, part of its Shipyard Business can still be acquired by its Competitors (e.g. Maersk Line/ CMA CGM) in the open market.
TigerAir was around this low price, when SIA announced a takeover of $0.40 previously.
Could Cosco Corporation be another takeover target by its parent company (China Ocean Company- who had spent few hundred millions to billions buying Terminals)?
The answer will be very clear in times to come :)
Current Cosco Price are oversold to a Terminal Price, easily acquired in event of takeover.
At current low price, with another SGD 276,804,446 (276 Millions)- in event of a takeover can be completed. This costs is even less than a Terminal & can be easily acquired by China Ocean Company. I do not expect Cosco to remain listed for long, given the low price. Sembcorp Industries Ltd is smart to hold 4.97% LOL.
But takeover (if that happens) will roughly be 300 to 400 Millions to acquire at a higher price from the minority shareholders and market.
It is highly advantage to China Ocean Shipping (Group) Company.
It seems that China Ocean Shipping (Group) Company is secretly increasing its shares.
This is good strategy, especially as the Cosco Corporation shares price are at its low.
It is good to accumulate while the public is not noticing, booast up the % & synchronize with its other business.
| Substantial Shareholders | Number of shares held | Percent of shares held |
|---|---|---|
| China Ocean Shipping (Group) Company | 1,194,565,488 | 53.35% |
| Sembcorp Industries Ltd | 111,400,000 | 4.97% |
| Dimensional Fund Advisors LP | 21,327,600 | 0.95% |
| The Vanguard Group, Inc. | 16,848,314 | 0.75% |
| OCBC Securities Private Limited, Securities Arm | 11,215,024 | 0.5% |
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
As buyers defered taking of oil rigs, revenues will not be recorded during 3Q & 4Q 2016, 1Q 2017 but will be recorded at subsequent quarters.
The challenges ahead by Cosco Corporation will be overcomed in Mid 2017.
Do not expect Cosco Corporation to make profits within these 3 Quarters (Sep, Dec 2016 & Mar 2017), but the hope lies in the restructuring efforts of Cosco Shipping merging all its Shipyards entity in early 2017 and its mother company (Cosco Shipping Strength as the 4th Largest Carrier in the world, recent acquistion of numerous terminals around the world and its global ambition of the China Silk Road supported by China. With the injection of 1.8 Billion in Cosco Shipping by private investors, Cosco Corporation which is the subsidary & is also an intergrated supply chain structure within Cosco Shipping- The Future ahead is the new world of shipping! Though there are great efforts to be put in ahead, but i strongly believe in the revival of Cosco Corporation in the future. Do not think of making profits now, as every cycle of shipping had its own downs and ups, but Cosco Corporation is the only shipyard in SGX that its mother company keeps acquiring Terminals around the world at increasing speed. Its future cannot be underestimated!)
*Added (The Alliance may change as Japanese Shippers may merge)
Cosco Corporation shall revive in the future in the shipping when the Ocean Alliance is formed, one of the most contendous Shipping Alliance ever formed in the history of shipping!
The New World of Shipping
The Federal Maritime Commission (FMC) said last week it has concluded its review of the proposed Ocean Alliance.
Set to take effect today, October 24 and begin operations next April, the carrier members of the Ocean Alliance include: COSCO Shipping, CMA CGM, Evergreen Marine, and Orient Overseas Container Line Limited (OOCL).
With this agreement now intact, FMC said that its members can share vessels, charter and exchange space on each other& rsquo s ships, and enter into cooperative working agreements in international trade lanes between the United States and ports in Asia, Northern Europe, the Mediterranean, the Middle East, Canada, Central America, and the Caribbean.
Representatives for the Alliance called it a & ldquo milestone agreement among four of the world& rsquo s leading container shipping lines,& rdquo adding that Alliance will have nearly 400 vessels in its container fleet.
The new alliance come on the heels of the merger of Cosco and China Shipping& rsquo s container lines and CMA CGM& rsquo s move to buy Neptune Orient Lines (NOL), where it plans to pull container line APL out from the G6 Alliance.
The 2M Alliance, comprising Maersk and MSC is also being challenged by this move, analysts contend. Also brought into question is the future of Kawasaki Kisen Kaisha (K Line), Yang Ming Line and the since-departed Hanjin & ndash all members of the CKYHE alliance.
Chris Rogers, research director for Panjiva, said that the Ocean Alliance is probably the most stable of the three & ldquo new style& rdquo alliances.
& ldquo 2M (MSC and Maersk) have been considering whether to add Hyundai Merchant Marine, which may complicate matters if HMM buys some of Hanjin Shipping& rsquo s assets or routes,& rdquo he said. & ldquo The Alliance (led by Hapag-Llloyd) is supposed to include Hanjin Shipping as a member, so it may need to rethink its strategy.& rdquo
Rogers also said that the Ocean Alliance& rsquo s operations are mainly focused on U.S. routes, with Panjiva data showing that the Ocean Alliance had 19.8% of U.S. inbound, seaborne volumes in September. This compares to 18.2% when the alliance was first announced in April, and the current 2M Alliance& rsquo s 15.4% and 13.8% for The Alliance excluding Hanjin Shipping.
With the ocean cargo sector effectively going from 4 alliances to 3, when the Ocean Alliance takes effect in April 2017, the further concentration should enable the alliances, within themselves, to better control capacity as a means to improving revenue, explained Ben Hackett, founder of maritime consultancy Hackett Associates.
& ldquo But at the end of the day it depends whether the other two alliances do the same,& rdquo he said. & ldquo Should an alliance, or a member of an alliance break ranks on pricing and go for market share (as Maersk have suggested) then capacity planning goes out the window.
What this does is to create stronger service providers and also more clout to negotiate with terminals for lower handling costs. Cargo owners are afraid that these three stronger alliances may end up raising prices (and why should they not given the amount of losses that they have sustained). One can perhaps hope for more stability in the market.& rdquo
On a global basis, Hackett said that the EU is probably less sanguine about the alliances than the regulators in the U.S. and China. And despite the alliances the industry remains fragmented below the top 5, he noted, while also pointing out it is reasonable to expect to see some mergers and perhaps a carrier or two disappearing.
http://www.logisticsmgmt.com/article/ocean_alliance_gets_formal_fmc_approval
LNG to become the marine fuel in future
MSC (the 2nd largest carrier) had been secretly ordering LNG powered ships for its cruise ships with a record of $4.5 Billion.
CMA CGM (the 3rd largest carrier) had also been revamping and building LNG powered for its future containerships to achieve cheaper & cleaner fuel.
OCEAN Alliance may become the Top Shipping Alliance if Maersk joins (MSC Leaves Maersk on Ad-Hoc for Transpacific Route)
MSC may becomes the top carrier in future, in direct competion with Maersk Line as Maersk Line is seen left behind the Transpacific route.
MSC and Maersk (2M Alliance) may be in question in future due to competing nature.
OCEAN Alliance (currently the 2nd Biggest Shipping Alliance) may become the Top Shipping Alliance if Maersk joins.
Shipping & Shipyards are poised to make a comeback in mid 2017
Shipping & Shipyard industry is the only industry that have not make a turnaround yet.
Commodity industry have improved and commodity stocks value had increased substaintially.
Airline industry have recovered after mergers and consolidation of several airlines, and Airlines had been adjusting its airfreight for customers at an higher rate.
Shipping industry are posied to increase its seafreight to profitable levels of carriers, in view of the demise of Hanjin Shipping. The carriers are well aware that competing freight rates will not work well for them & shippers understands that rates had been too low for years. Maersk Line, CMA CGM & Hapaglloyd had increased the freight rates.
Seafreight is posied to increase to profitable level, following several mergers (CMA CGM & NOL-- now is CMA CGM), (China Shipping & Cosco-- now is Cosco Shipping) following Airline Carriers which had already increased rates. Top Sea Carriers are spearheading the changes of seafreight increase.
For shipyard industry, as LNG is to become marine fuel in future to meet emission requirements which is cheaper and cleaner than oil more LNG shipbuilding orders are expected to increase.
COSCO continues to expand on its Terminal Acquistion around the world
COSCO had recently acquired another piece of terminal assets (40% of Italy Vado Holding) from Maersk Group for US$58.3 Millions.
COSCO also make moves to raise $1.79 billion capital from private investors, this is expected to improve COSCO financial sheet.
HANJIN will eventually have to sell its Terminal Assets to pay off creditors
The demise of Hanjin Shipping, recently been putting up its US Assets for sale. However, it will not be substainial to pay off creditors. HMM is likely to buy some bigger fleets only.
The sales of Ship Assets are unlikely to attract the interest of Maersk Line or MSC, given that LNG powered carrier will become a new trend in future.
COSCO are interested in Hanjin Terminal Assets once it is put on the table of negotitation.
http://gcaptain.com/msc-cruises-reveals-plan-to-build-worlds-largest-lng-powered-cruise-ships-for-4-5-billion/
http://container-mag.com/2016/10/20/cma-cgm-works-develop-lng-powered-container-ships/
http://www.lngworldshipping.com/news/view,engie-agrees-lng-deal-with-cma-cgm_45052.htm
https://www.porttechnology.org/news/msc_leaves_maersk_behind_for_transpacific_route
https://theloadstar.co.uk/msc-introduces-standalone-transpacific-service-maersk-goes-ad-hoc/
http://www.joc.com/maritime-news/container-carriers-crucial-crossroad-china-cosco-chief-says_20161018.html
http://www.americanshipper.com/main/news/gri-roundup-maersk-line-cma-cgm-hapaglloyd-and-mol-65483.aspx
http://www.americanshipper.com/main/news/freight-rate-roundup-maersk-cma-cgm-and-hapaglloyd-65718.aspx
http://www.shanghaidaily.com/business/transport/COSCO-gets-40-of-Italys-Vado/shdaily.shtml
http://www.chinadaily.com.cn/business/2016-10/13/content_27045807.htm
http://www.todayonline.com/business/chinas-cosco-shipping-may-consider-buying-hanjin-shippings-port-assets-caixin
http://www.bloomberg.com/news/articles/2016-09-28/cosco-eyes-hanjin-terminals-after-738-million-abu-dhabi-deal
Shipping Demography:
As the demography of shipping is changing due to the breakup of Hanjin Shipping (7th Biggest Shipping Lines), which is the indicator of the Shipping Revival Beginning which will also positively affects its related business. The eventual bankrupcy of Hanjin Shipping had diversified its business to its Competitors, Shipping Lines had been raising Freight Rates to overturn the shipping margin environment since the announcement of Hanjin Shipping courts proceeding & shippers had been finding alternative shipping lines to deliver their products to avoid being affected by stalled deliveries. Business of Hanjin Shipping had been increasingly flowing out to other shipping lines, which is good for the overall shipping environment.
We can see that Shipping Lines will eventually benefits from Bankrupcy of Hanjin Shipping. Though the minority of Shipping Lines may get spaces of breathing from freight rate increases, but do not ensure their survival. However, the big Shipping Lines will benefits hugely from the consolidation of Shipping Industry. The Tigers of the Shipping Industry, Maersk Line and CMA CGM are both eyeing for business and assets of Hanjin Shipping with COSCOS as the the black horse (3rd Runner Up) for Hanjin Terminal Assets only.
The Battle of the Sea is getting more exciting- Who will win the Battle and eventually benefits?
(Editor: GodOfTrader. View: Personal Opinion)
COSCO TO DELIVER KHAZAK MODULES
Shipping line COSCO has been awarded a major transportation and logistics contract to deliver modules for an oilfield project in Astana, Kazakhstan.
The contract includes shipment of 1,800-ton modules to transshipment sites in the Black and Baltic seas from fabrication yards in Korea and Europe. COSCO will collaborate with a number of Korean Partners on the project, including Dongbang Transport Logistics, Hanjin Transportation, CJ Korea Express and Chung Yang Shipping.
The team responsible for delivery at COSCO will rely on a fleet of 18 semi-submersible vessels and deck carriers to carry out about 60 shipments between 2018 and 2020. Shipments are scheduled to pass via the ports of Burgas, Bulgaria and Hamina, Finland before delivery to western Kazakhstan by Russian Inland Waterway Systems.
http://www.breakbulk.com/cosco-deliver-khazak-modules/