Exports of liquefied natural gas are contracting for a second year, diminishing the number of available cargoes at a time when companies from Vitol Group to Glencore Xstrata Plc (GLEN) are expanding their trading teams.
Global exports in the first eight months were 5 percent lower than a year ago, according to data from Poten & Partners Inc., a New York-based shipbroker. Thirty-five companies now trade LNG in Europe, from fewer than 10 a decade ago, said Douglas Ferguson, a managing director at Webber Chase Ltd., which recruits for the commodities industry.
Banks and trading houses are expanding in the $150 billion LNG market, lured by volumes that jumped 38 percent in the past five years. While demand is still growing as nations favor cleaner fuels, the number of spot cargoes stagnated at about 25 percent of the total since 2011. Rising domestic demand, fewer-than-expected Angolan shipments and disruptions in Nigeria and Egypt have cut the number of tradable sources, meaning nobody s making a fortune trading LNG, Vitol Chief Executive Officer Ian Taylor said last month.
With output from Angola still limited, it is very difficult for newcomers to source reasonably priced flexible cargoes, said Yves Vercammen, the general manager at the trading and shipping unit of Eni SpA (ENI), which has long-term contracts for LNG from Algeria, Nigeria and Qatar. On the other hand, there is a growing financial trading market that LNG traders definitely need to be in now. Price Boost
Spot and short-term imports, defined as contracts lasting four years or less, reached a record 25.4 percent of total trade in 2011, from 16.3 percent in 2009, before dropping to 25 percent last year, according to the International Group of LNG Importers, or GIIGNL, a Paris-based industry group. The ratio probably will be little changed in 2013, Javier Moret, head of LNG origination at RWE Supply & Trading, predicted in September.
The lack of cargoes is boosting prices, with LNG for delivery to northeast Asia in the next four to eight weeks averaging $18.10 per million British thermal units in the week ended Nov. 11, or 30 percent more than a year earlier, according to data from World Gas Intelligence in New York.
Traders, producers and consumers are meeting in Paris today for the three-day World LNG Summit, with representatives from more than 120 companies as well as government officials.Exponential Growth
About 150 people are involved in LNG trading and origination in Europe, according to Webber Chase s Ferguson. The biggest teams are at London-based BP Plc (BP/), Paris-based Total SA (FP) and Moscow-based OAO Gazprom (GAZP) while Citigroup Inc. (C) and Bank of America Corp. (BAC) are the biggest banks transacting the fuel, he said. Glencore hired traders from Morgan Stanley in September.
Although there are a finite number of vessels, the number of LNG traders and originators has grown exponentially in recent years, Ferguson said by e-mail from Singapore. The trading market was non-existent a decade ago but we have seen many new entrants challenge the monopoly of the majors in this capital intensive, but potentially ultra-high-reward industry.
Traders can profit from the difference in costs between regions. LNG for delivery to southwest Europe cost $12.60 per million Btu in the week ended Nov. 11, compared with $18.10 in northeast Asia, according to WGI assessments.
Angola LNG, the only production plant with no long-term contracts, is operating at about 20 percent capacity and will ship three more cargoes this year, on top of five since it started in June, Oil Minister Jose Maria Botelho de Vasconcelos said in an interview this month. The $10 billion facility expected to load at least 13 cargoes this year, George Kirkland, vice chairman at operator Chevron Corp. (CVX), said Aug. 2.Force Majeure
Supplies to Nigeria LNG s Bonny Island plant were disrupted this year by leaks in a pipeline caused by people trying to steal fuel and a three-week blockade of the terminal because of a dispute over levies. A six-month force majeure, a legal clause that excuses a supplier from meeting its delivery commitments because of events beyond its control, was only lifted in April.
Egypt stopped supplying gas to the Segas LNG plant because of rising domestic demand, Sherif Haddara, chairman of state-run Egyptian General Petroleum Corp., said in February. Egyptian LNG, the country s second liquefaction plant, diverted half its gas to the domestic market, BG Plc, which buys from the facility, said in May.
Exporters worldwide produced at about 85 percent of capacity in 2013, Andrew Walker, BG s vice president for global LNG, said today at the World LNG Summit.
Global LNG exports, including reloads from import terminals, were equivalent to almost 209 billion cubic meters of gas in the first eight months, compared with 220 billion a year earlier, the Poten data show. Shipments fell 0.6 percent in 2012, the first annual drop in the data starting in 2002. Trade contracted 1.9 percent last year, the first decline in three decades, GIIGNL estimates.Wonderful Colleagues
There are very few freely tradable sources, therefore we will bid on every single one of them, Vitol s Taylor said at a conference in London on Oct. 1, sitting on a panel with Gunvor CEO Torbjorn Tornqvist and Alex Beard, the head of Glencore s oil unit. The trouble is our wonderful colleagues here on the platform will also bid on every single one of them.
Supply will fail to keep pace with consumption until at least 2015, according to Bank of America. Regasification capacity, a proxy for demand, will expand as much as five times faster than production capacity next year, and prices in Asia may reach a record in the next several months, the bank said in a report Nov. 13.
Japan, the biggest buyer, shut most of its atomic plants after the Fukushima disaster in 2011 and South Korea, the second-biggest consumer, decided in May to halt two nuclear reactors. Import capacity in China, India, Singapore and Malaysia is increasing, boosting demand for cargoes, Bank of America said.Capacity Increase
Global production capacity will increase by 130 billion cubic meters by 2018 as 12 new liquefaction plants open, the Paris-based International Energy Agency said in a report last week. There were 89 liquefaction plants operating at the end of last year with annual capacity of 384 billion cubic meters.
Supply will be boosted from 2015 as projects from Australia to the U.S. start producing, GIIGNL said in June. Trade will increase 31 percent by 2018, from last year s levels, the group said. International trade in LNG reached 236.6 million tons in 2012, from 171.1 million tons in 2007, GIIGNL estimates.
Interest has been growing particularly as participants find new uses for LNG, said George Stein, the New York-based managing director of Commodity Talent LLC, a recruitment company. Interest on Wall Street has grown as well as interest in the large merchant trading firms. Banner Year
Demand for traders with experience in the Atlantic is rising as companies in London seek to get everything in place so that 2015 can be a banner year, said Ferguson of Webber Chase. A senior trader can earn $300,000 to $500,000 a year and as much as $1 million if they meet earnings targets, he said.
The LNG market is valued at more than $150 billion, according to Rob West, an analyst at Sanford C. Bernstein in London. That s based on the 240 million tons traded last year at an average price of $13 per thousand cubic feet. Demand will reach 480 million tons by 2035, Bernstein said in a September report.
While previously only companies with stakes in liquefaction plants bought and sold the fuel, more trading houses are now transacting cargoes, said Laurent Maurel, the senior vice president for strategy, markets and LNG at Total.
Successful LNG trading businesses typically take at least two years to build, Ferguson said. A handful of trading houses and an even smaller number of investment banks have got it right by developing innovative LNG businesses without spending billions of dollars in investments. Source: Bloomberg
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Freight forwarders are falling victim to fraudulent Chinese freight operators demanding ransoms totalling thousands of dollars to release Bills of Lading.
In the UK over the past year, ransoms totalling US$33,500 have been reported.
The British International Freight Association (Bifa) warned operators this month October to be wary of emails from unknown Chinese forwarders, looking for UK partners and offering cheap ocean rates.
Once a signed and stamped agency agreement is in place between both parties and business starts, all appears to be normal. This is until the cargo arrives at the UK port and no-one has received the original Bill of Lading.
When contacted the Chinese forwarder then demands a large ransom for the release of the original Bills of Lading.
Companies which refuse to pay find themselves on an expensive rollercoaster ride of meetings with customers, lawyers, insurers and shipping lines in order to obtain the original Bills of Lading to release the cargo.
By spreading shipments around a number of shipping lines, fraudulent forwarders make this recovery process even more onerous.
Determining whether that mail shot is from a legitimate forwarder in China or part of a scam in the first place can be difficult, however just asking for a signature on an agency agreement with an overseas partner is not good enough, said Bifa.
Dan Harris, a lawyer at Harris & Moure and co-author of the China Law Blog, which focuses on assisting foreign companies doing business in China, writes in one of his blogs on how to avoid Chinese business scams: There is probably no document that has not been faked thousands of times in China. I have seen fake Bills of Lading, fake bank statements, fake contracts, fake purchase orders, fake company registrations, fake IP registrations, even fake lawyers.
If you are going to rely on paper, he said, at least do more than just rely on the document itself. At the very least businesses should check with the company or the governmental body that purportedly issued the document.
Put all of the documents you receive under a microscope. Even the most experienced scammers nearly always make some mistake in their fake documents.
Try to get the company s official corporate records from the official Chinese government sources. Though doing this is neither inexpensive nor easy it can be incredibly enlightening in that it usually goes far beyond the information provided by the basic company search firms.
It is hard to measure the scale of the Bills of Lading scam at present. Only two incidents have been reported in the UK to-date, although The Loadstar understands that forwarders in Australia have also posted warnings about this type of fraud.
The reasons for this could be that either these types of incidents are in their infancy or are underreported.
Michael Yarwood, claims executive for specialist freight insurer TT Club, said the techniques used in the scam are in line with fraudulent activity experienced throughout Europe, where entities pose as legitimate freight forwarders and hauliers with the sole purpose of cargo theft.
He said that the use of cargo clearing websites (or freight exchanges) to carry out theft is increasing.
Fraudulent forwarders pose as legitimate companies with spare capacity. They arrive on-time to collect loads and then disappear.
Another frequently seen scam involves organised gangs creating their own websites and advertising themselves as freight forwarders. These sites are characterised by very basic information, freemail accounts, and mobile phone or Skype contacts only, Mr Yarwood warned.
A third type of fraud commonly seen is where criminal organisations buy failing operators and continue to trade under their name in a state of virtual insolvency. They are able to identify and accept cargo which is subsequently stolen in transit. This type of scam is hard to identify, however checking with Companies House to determine whether there have been any recent changes in a company will help operators avoid being caught out by this type of fraud, Mr Yarwood suggested.
Companies need to perform due diligence in selecting carriers, he argued: Request original documents rather than electronic copies which are much easier to doctor.
He admits this is difficult with time-sensitive cargo and it is with these types of shipments that forwarders take risks they normally wouldn t take.
However, Mr Yarwood maintained that it is commercially less damaging to suggest a customer delays collection than to take a risk with an unknown operator.
INNISFIL, ONT. (October 9, 2013) Rising Canadian talent Matthew Di Leo recently made his European racing debut, contesting sports car endurance events at three of the world’s premier tracks. Joining forces with Dutch-based CorEuser Racing at the Circuit de Catalunya in Spain and the Silverstone Circuit in England, as well as a privateer effort at the Nurburgring in Germany, the talented Firestone Indy Lights owner/driver showcased his pace, racecraft, and ability to adapt to new surroundings, ultimately securing a podium finish in the 24H Series opener.
While many young racers use the time off between races to relax and have some fun, Di Leo decided to spend the recent break in the Indy Lights calendar to further develop his talents behind the wheel via a European racing adventure.
First up was a trip to Barcelona in northeastern Spain to contest the opening round of the 24 Series. Di Leo, as part of a multi-driver line-up under the CorEuser Racing awning, piloted a Lotus Evora GT4 around the technical Circuit de Catalunya. Quickly getting up to speed in practice and qualifying, the Indy Lights’ MDL Racing owner/driver overcame multiple electrical issues in the 24-hour race to help the squad bounce back in less than ideal wet conditions. The 18 year-old ultimately was behind the wheel when the checkered flag waved, securing second in the SP3 class, thanks in part to regularly posting the fastest lap times.
Initially planning to have a weekend off before rejoining the CorEuser squad in England for a second sports car event, Di Leo, however, found himself back behind the wheel when he was presented with the opportunity to race at the historic Nurburgring.
As part of privateer effort in an Aston Martin Vantage, Di Leo contested the seventh round of the VLN endurance racing championship. Given the famed track in western Germany features 154 corners and is 20-km in length, it came as no surprise that the lead up to the 22-lap race was spent becoming somewhat familiarized to the track layout. Di Leo in the end posted times on par with the front-runners of the SP10 class. Unfortunately, damage and lengthy repairs resulted in an unrepresentative fifth place finish in class.
Di Leo concluded his European sports car racing adventure with a visit to the home of the Formula One British Grand Prix, rejoining CorEuser Racing for Silverstone 1000k event as part of the MSA British Endurance Championship. Returning to the cockpit of a Lotus Evora GT4, the Canadian quickly made his presence felt, despite having never previously visited the Silverstone Circuit. Di Leo proved to be the man to beat in Class 2 during qualifying, posting the fastest lap. Come race time, Di Leo continued his run of form early on, battling for the class lead lap after lap. It, unfortunately, wasn’t to last, as a sudden gearbox failure forced the premature retirement of the CorEuser entry.
“All in all I had an amazing time in Europe,” stated Di Leo. “It was definitely a career building adventure, as I learned so much and gained valuable experience in two cars at some of the premier tracks in the world. I particularly want to thank CorEuser Racing for this great racing opportunity.”
Those interested in supporting this up-and-coming Canadian driver are encouraged to contact Matthew Di Leo directly @ MatthewDiLeo.com to discuss sponsorship opportunities.
Learn more about Matthew Di Leo and MDL Racing at MatthewDiLeo.com and keep up to date via Twitter @ MatthewDiLeo and Facebook @ Matthew-Di-Leo Videos also available on YouTube @ MatthewDiLeo56
A native of Innisfil, Ont., Di Leo began his journey towards a career in motorsports at the age of nine, first getting behind the wheel of a kart. Showing natural talent right from the get go, Di Leo steadily worked his way up the ranks, continually developing his skills. In 2011, the Canadian made his car racing debut. Racing in the Ontario Formula Ford Championship, he won once and stood on the podium in both races he contested. Piloting an F2000 entry as well, Di Leo finished third the USF2000 Winterfest series with two podiums, and was fifth in the USF2000 Championship with one trip to the post-race podium. Last year, Di Leo again got in the cockpit of F1600 and F2000 cars. He scored one win, added another podium finish, and captured two pole positions in the Quebec-based Formula Tour 1600. Racing as an owner/driver under the MDL Racing banner, Di Leo finished fourth in the USF2000 Championship, capturing four podium finishes.
Freight Networks is your one stop shop when you need to learn about the freight industry and obtain quotes from various freight companies around the world.
Speak to several freight companies1 to ensure that you have been given a competitive rate. Make sure you find a reliable, efficient company to transport your items. Begin your search here by entering a few details on our convenient form and you’ll soon receive up to 5 free quotes from our esteemed freight partners.
Freight is also called cargo and it means any goods that are transported via road, rail, air or water. This term does not apply to personal shipments that one individual sends to another individual. It must be commercial in nature (company-to-company shipments or company-to-individual shipments). The transportation method you choose will depend upon what items you will ship, but most likely, you will be using an ocean freight2 company. The international shipping industry accounts for 90% of world trade, so nearly everything you come into contact with in your average day has been on a freight vessel. Ocean vessels can move full container loads (FCL), less than a container load (LCL) and dry or liquid bulk cargo. One container or several containers can be picked up from your warehouse, factory or port. Some companies can do the packing for you; others require you to prepare everything in advance. When more than one transportation method is used, this is known as intermodalism. The idea to load containers from one transport mode to another without disturbing the cargo inside dates back to the 18th century.
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This revolutionary idea has now made it possible to smoothly transfer containers between rail, road, sea, ocean and air. Not only has this simplified the whole process, it has also made it faster and more efficient. This also means that all containers must be uniform in size, thus the TEUs (Twenty-foot Equivalent Unit) and FEUs (Forty-foot Equivalent Unit) were born. Since the early 1960s, containers have been constructed according to strict guidelines and vessels, trucks, trains, planes and related equipment such as gantry cranes must also adhere to the International Organisation for Standardisation’s requirements. Perhaps you will enlist the help of a freight forwarder5 to move your goods. This is someone who acts as an agent to ensure safe and timely deliveries. This person will manage the whole process for you, including documentation and insurance. The most important document is the bill of lading (known as the air waybill in the air freight industry). This formal contract specifies who the consignor and consignee is, as well as all the charges involved. Note that it is not a document of title to the goods.
Cargo shipping companies and freight forwarders should be bonded, insured, and licensed by their home country’s maritime authority. Be cautious when selecting your consignor because some companies might boast that they have a license and include this claim on their websites, even if this is not the case. It’s wise for you to do a thorough check on a business or individual before signing any documents authorising the transport of your goods. Be sure that you have all the details of your shipment ready so that when speaking with freight companies, they can provide you with an accurate quote. Speak to several to ensure that you have been given a competitive rate.
Originally posted here:
British and European Trucks of the 1980s: Those were the days … series
Related Scania Products
Since joining in 1968 he has been involved with the company through various guises from British Leyland Motor Corporation to the merger in 1987 between it and Dutch manufacturer Daf to form Leyland Daf, and the emergence of Daf Trucks from insolvency in 1993.
He will retire on 4 October 2013, aged 63.
Ray Ashworth, MD, said: Tony is recognised as one of the most knowledgeable people in the truck industry not only by his colleagues at Daf but also by the media, dealers, customers and even competitors.
His expertise and contribution will be greatly missed, he added.
Product marketing manager Phil Moon becomes the marketing manager.
With over 14 million people, Karachi is Pakistan s largest city.
Its crowded suburbs and slums have sprawled away from the port, but the city s main roads still radiate out from where ships arriving from the Arabian sea unload their cargoes.
At the southern end of the harbor, two spits of land curl together to enclose a protected inlet. The western spit of land holds the naval yards and the main container port; on the eastern, larger spit, there are the oil terminals and the dense settlements of Shireen Jinnah Colony and Kiamari.
From the air, both sides manifest a peculiar geometry of tightly serried rectangles with thousands of shipping containers and hundreds of parked oil tankers, many of which will eventually make the long overland journey to Afghanistan.