The shipping industry had an unforgettable year in 2016 with its fair share of ups and downs. Early 2016, a major shipping line filed for bankruptcy leaving its clients in the lurch which other lines rushed towards mergers and acquisitions. On the other hand, special mention is given to the ro-ro vessel.
Here we have compiled a list of big news that shook the shipping industry in 2016. Without further ado, we present you the top 10 contenders.
1. Drift of the ro-ro
In January 2016, a shift of cargo took place onboard the ro-ro vessel Modern Express, rescue vessels were dispatched to the stricken vessel to salvage it. However, the vessel was successfully recovered by Smit Salvage. The crew members onboard the stricken ship had been rescued earlier as it drifted off the Bay of Biscay.
2. Access denied
Just a few days after Hanjin Shipping filed for court protection, it was revealed that there was a Hanjin-chartered vessel unable to get through the Suez Canal. The Hanjin Switzerland could not pass as Hanjin could not authorize the payment of canal fees, in what was an early incident of the crisis that touched various sectors of the industry and continues to show its effects to this day.
3. Merger
In one of the most significant moves for the container industry, Hapag-Lloyd and United Arab Shipping Co had begun discussions for a potential merger. Hapag-Lloyd and UASC in merger talks examined how the deal, which has since progressed and is in the process of securing regulatory approval, could benefit each of the two companies and its effect on the container market.
4. Top 100 Ports
The world’s best 100 container ports were unveiled in 2016. The readers were given an insight into the operations of these ports and a detailed account of their throughput levels.
5. Salvors to the rescue
Fortunately, the Smit Salvage crew were able to put the Modern Express under tow. The vessel was drifting towards the west coast of France and that there was still a risk of the towline breaking.
6. Rise of the pirates
2016 saw a significant spike in piracy off West Africa. One such instance occurred over the summer when Biafra militants claimed they would blow up a hijacked tanker. Reports on the exact details varied, with some reporting that the militants issued a 31-day ultimatum to the government claiming they would blow up the tanker if a militant was not released from prison.
7. Risky business
Prior to the successful towing of Modern Express vessel by the Salvors. A French Navy frigate and two Spanish tugs were in attendance as four salvors were tasked with boarding the ro-ro ship.
8. Aftermath
Hanjin’s collapse was bound to have great effects on the industry. In Hanjin Shipping, the implications for Hanjin’s customers as well as its competitors, who would be taking stock of the fact that a seemingly ‘too big to fail’ company fell to its demise were examined in detail.
9. Merger 2.0
Japan’s three biggest shipping companies jumped on the consolidation train in November, agreeing to merge their container operations. The major players NYK, MOL and K Line joined hands to merge their container shipping businesses. Joint operations are expected to begin in April 2018 with the three lines controlling 1.4m TEU, making them the sixth-largest carrier in terms of capacity.
10. Containers’ golden boy
The CMA CGM Group vice-chairman opened up about his business strategy and his outlook on the market. Rodolphe Saadé stamps his authority on container shipping industry, where his journey of his increasing involvement in the company that his father created was reported widely.
Did you subscribe for our daily newsletter?
It’s Free! Click here to Subscribe!
Source: Lloyd’s List
