Greek Shipping News Cuts
Week 37 - 2011


Greek shipping grows larger and younger

---Greek shipowners placed orders for 91 new ships worth $9.4 billion and bought 98 used ships of all kinds, worth $3 billion, in the first seven months of 2011.
They currently have 654 ships under construction (310 in Korea, 298 in China, 22 in Japan and the rest elsewhere), totaling a capacity of 63.2 million deadweight tons.
Chinese shipowners, by contrast, invested a total of only $2.4 billion in the same period, according to a survey by Clarksons.
The Greek-owned fleet in June numbered 4,714 vessels, from 4,655 a year earlier. Of these, only 2,046 were Greek-flagged (compared to 2,126 in June 2010), comprising 567 cargo vessels, 544 tankers, 705 ferry boats and 230 ships of various other categories. Greek-managed shipping companies with vessels up to nine years old rose to 151 in 2011, from 30 in 1998. , Thursday September 15, 2011 (21:55)

---Tuesday, 13 September 2011 - 14:52
There has been no official reaction from the union of Greek ship-owners, first because its board is abroad and second, it usually avoids confrontation.
They state that the last time the Greek government asked for investments in real estate, resulted in a tax of 15% in property, owned by offshore companies.

Shipping on standby as government plots incentives
---The Greek shipping community is on standby waiting for government indications regarding the creation of an environment in Greece which will enable them to contribute more proceeds from the shipping industry to the country, by opening new horizons for the shipping industry, and attract investment.
After the call by deputy Prime minister and Finance minister, Evangelos Venizelos, during the Thessaloniki International Fair, September 11, for greater investments from shipping, the industry is anticipating a series of incentives in place of the present dis-incentives. Indeed, relations between the industry and the government have been strained since the Prime minister, George Papandreou dumped the Marine ministry, late 2009.
Shipping is Greece's biggest industry. Its direct contribution to the country runs to Euro 140bn over the last 10 years, while in the first five months of 2011 had reached Euro 5.5bn.
In 2010 the maritime earnings were Euro 15.418bn, representing 6.72% of the country's domestic product. According to the Bank of Greece, the country's receipts from shipping were high compared to other EU member states which did not exceed 1% of domestic product.
The inflows came from about 750 shipping companies of Greek interests. But about half of the Euro 140bn earned over the last decade left Greece to pay for services provided by other countries, because companies claim the Greek state has failed to implement the necessary infrastructure to serve the sector. On the other hand, Greek shipping points to the state's investment in tourism infrastructure.
The Union of Greek Shipowners (UGS) has repeatedly stressed the government, despite the difficult situation faced by the country, has supported shipping and the institutional framework that links the industry to the country and has enabled it to become the global shipping leader. Shipping is the only productive sector that has not suffered from the domestic crisis and the UGS believes with the right incentives it will, in the future, be able to effectively support the difficult path to growth.
The Hellenic Chamber of Shipping also maintains development of the country's ports and integration with the rail and road networks will provide the access to enable Greece to be a major hub of the Eastern Mediterranean, offering many benefits to the national economy.
On cruising, the chamber president, George Gratsos has long maintained cabotage cost Greece many billion of euros annually. "Had the law been changed earlier we would long been able to obtain more revenue. Competitiveness creates wealth and jobs, protectionism destroys. The big revenues for Greece will be in the homeporting, rather than cruise calls. Greece is a desired destination, the procedures are the problem, " Gratsos has said.

Load Line quietly ups bulker fleet
---A Greek player has a number of orders in the pipeline for ships it views as versatile traders.
Athens-based Load Line Marine is quietly building up its bulker fleet with newbuildings it believes will perform well in both good and tough markets.
The company is mulling over whether to declare an option for an ultramax bulker at Jiangsu Hantong of China. Its existing firm order is for a 64,000-dwt ship due for delivery in March 2013.
This as-yet-unreported order was placed in December, says boss George Souravlas, without revealing price details. Tradewinds understands the ship cost somewhere in the low-$30m range.
One source claims Load Line is the first company to have signed up for this type of newbuilding at the yard. Souravlas says it decided to enter the segment given that such ships carry 15% more cargo than supramaxes but are 17% more fuel-efficient. He adds that the ship will be named Eco for this reason.
Souravlas says the company is keen to build up a fleet of modern handysize to ultramax bulkers as they can carry a variety of cargoes and are well suited to a changing economy.
The Bravo was said to have been sold in June to compatriot owner Cleopatra Shipping for $6.8m. It has been incorrectly and repeatedly reported as sold for demolition this year, having been confused with the similar-size but older bulker Bravo P, which was owned by PNO Shipmanagement of Greece.
By Irene Ang and Yiota Gousas Singapore and Athens
Published: 22:01 GMT, 15 Sep 11 | updated: 19:32 GMT, 14 Sep 11

Hellenic Carriers Limited reports 2011 interim unaudited results
--- Press Release 12 September 2011,
Financial Highlights
> US$20.8 million Revenue (H1 2010: US$30.6 million)
> US$12.2 million EBITDA1 (H1 2010: US$20.2 million)
> US$5.5 million Operating Profit (H1 2010: US$12.8 million)
> US$3.1 million Net Income (H1 2010: US$10.0 million)
> Earnings per share of US$0.07 (H1 2010: US$0.22)
> Cash reserves2 of US$49.1 million as of 30 June 2011 (US$60.0 million as of 31 December 2010)
> US$94.5 debt balance as of 30 June 2011 (US$105.3 million as of 31 December 2010)
> Gearing Ratio3 of 26.6% as of 30 June 2011 (26.5% as of 31 December 2010)
> Signing of loan agreements for the financing of the two new-building Kamsarmax vessels
Operational Highlights
> Operation of a fleet of an average of 5.0 vessels during H1 2011 compared to an average of 6.0 vessels in H1
> Time Charter Equivalent rate of US$21,397 (H1 2010: US$26,589) outperforming the Panamax and
Supramax industry average Time Charter earnings of H1 2011 (US$14,254 and US$14,476 respectively)4
> Fleet utilization of 99.2% (H1 2010: 99.0%)
1 EBITDA has been calculated as follows: Operating profit + Depreciation + Depreciation of dry-docking costs
2 Cash reserves comprise of unencumbered cash + restricted cash
4 Source : Howe Robinson
Management Commentary
considerable downward pressure resulting in poor freight rates, especially in the capesize sector. The dry bulk market
is now experiencing the effects of oversupply of vessels, mainly ordered during the boom years. This development
comes as no surprise since the overhang of the order book was causing concerns for a number of years. However, in
this depressed environment there are positive signs which we should not fail to consider.
growth rates and hence importing significant volumes of raw materials. Should it not be for this strong demand and
given the number of new vessels entering the market, the freight levels would undoubtedly be much lower. The
second positive factor is the considerable increase in scrapping activity whilst scrap prices remain at very high levels.
We should not forget that around 20% of the current fleet is over 20 years of age. Last but not least, the financial crisis
which has a knock on effect limiting the liquidity available for the construction of new vessels. All these factors bear
significance for the future of the dry bulk market.
period in question, some of the vessels continued to generate strong cash flows from charter agreements entered into
prior to the market downturn. Since these charters have come to an end, we have traded the vessels in the spot market,
avoiding long term commitments at low rates. However there will be volatility in the freight market, hence triggering
opportunities for longer term fixtures.
operations in challenging times but also enable us to take advantage of acquisition opportunities as they arise. In 2010
we took advantage of the strong market and sold one of the older units, whilst at the same time placing orders for two
new-building Kamsarmax vessels.
Interim 2011 Results
During the six months ended 30 June 2011, Hellenic through its subsidiaries had in operation an average of 5.0 in
comparison to 6.0 vessels during the six months ended 30 June 2010. The 1993 built Panamax vessel M/V Hellenic
Breeze was sold in August 2010. As a consequence fleet ownership days dropped by 16.7% to 905 from 1,086
reported for the first half of 2010.
For the six months ended 30 June 2011, Hellenic reported revenues of US$20.8 million compared to US$30.6 million
for H1 2010. The reduction in revenue is partly attributable to the decrease in the number of vessels operated but is
also a result of the depressed dry bulk freight rates. We note that between 30 June 2010 and 30 June 2011, the Baltic
Dry Index (BDI) declined by 41.3% from 2,406 to 1,413.
In this environment, Hellenic benefited from the continuation of charters agreed prior to the market downturn in Q4
2008, namely the M/V Konstantinos D charter at US$35,000 gross per day which terminated in mid January 2011 and
the M/V Hellenic Wind charter at US$54,000 gross per day. The latter charter terminated in mid April 2011, one
month earlier than the contractually agreed redelivery date, however charterers Messrs Hanjin Shipping Co Ltd. have
already compensated the Owners by paying for the damages resulting from the early redelivery of the vessel. The
vessel has since been trading in the spot market.
During the same period the M/V Hellenic Sea was employed under the SetSea charter (at a gross daily rate of
US$23,300), which terminated in March 2011, a month earlier than the agreed redelivery date. The charterers have
already compensated the Owners by paying the relevant amount of damages for early redelivery. The vessel has since
been trading in the spot market.
The other vessels are all trading in the spot market for the performance of single or consecutive laden legs. The long
term commitment of the vessels has been avoided due to the depressed current market levels.
During the first half of 2011 the vessels earned an average TCE of US$21,397 per vessel per day compared to
US$26,589 per vessel per day during the corresponding period of 2010.
The fleet utilization for H1 2011 was 99.2% compared to 99.0% for H1 2010.
Voyage expenses in H1 2011 amounted to US$2.1 million compared to US$3.3 million in H1 2010, a decrease of
about 36.4%, which is in line with the reduction in revenue and fleet size.
As a result of the decrease in ownership days, vessel operating expenses for H1 2011 dropped by US$0.5 million to a
total of US$4.9 million. On a per day basis operating expenses increased by 9.4% from US$4,910 in H1 2010 to
US$5,370 in H1 2011.
EBITDA generated amounted to US$12.2 million compared to US$20.2 million for H1 2010, a decrease of 39.6% and
net income was US$3.1 million compared to US$10.0 million for H1 2010, a decrease of 69.0%.
Basic and diluted earnings per share calculated on 45,616,851 weighted average number of shares were US$0.07 for
H1 2011 compared to earnings per share of US$0.22 for H1 2010.
share was paid on 20 May 2011 to the shareholders on record as of 26 April 2011.
The Directors of the Company do not recommend an interim dividend payment for 2011 in order to reinforce the
with regard to the recommendation of a final dividend will be taken prior to the announcement of the year ended 31
December 2011 results.
Press Release in full is available at

34th GL Hellas Committee - 100 Million GT Celebrated, Container Shipping in Focus
---15. Sep. 2011 | Athens, Greece - The Hellas Committee of Germanischer Lloyd (GL) met today at the Hotel Grande Bretagne, Athens. The 34th meeting of the committee had a festive tone with GL celebrating topping the 100 million GT mark with its fleet in service. New design trends in container shipping, the recent adoption of new energy efficiency measures by the International Maritime Organisation (IMO) and the current trends in the Greek maritime industry were also featured in presentations.
It was especially appropriate that GL celebrated the 100 million mark in Greece, as Greek ship owners have played a significant role in GL's growth and success in recent years. More than ten percent of GL's fleet in service or 11.5 million GT are from Greek owners. GL has currently more than 7,200 ships from over 1,900 shipping companies worldwide under regular technical supervision. Topping 100 million GT means that GL has been able to double the fleet in service over the last six years and have set a target of reaching the next 10 million GT by the end of next year.
The meeting opened with the introduction of the new Chairman of the Hellas Committee, Mr. Panos Laskaridis, Managing Director of the Laskaridis Shipping Group, by Mr. Erik van der Noordaa, CEO and Chairman of the Executive Board of Germanischer Lloyd. Mr. Laskaridis then went on to address the Committee and introduce its new members. He reminded the representatives of GL that the Greek shipping industry is open to innovations, new products and services and insisted upon the importance of the commercial implications of new technologies being discussed with industry in advance.
Erik van der Noordaa, reflecting on GL in light of the historic milestone, gave an overview of the current shape of the GL Group and its activities over the past year. The GL Group has undergone a number of changes in recent years he noted, with the acquisition and integration of businesses working in the oil and gas and renewable energy sectors. In the maritime business itself structural and management changes are underway to sharpen GL's focus on its customers and further improve GL's responsiveness to client needs. These changes would also work to strengthen customer relationships, while providing strong operational management, he said.
Torsten Schramm, Chief Operating Officer of Germanischer Lloyd, informed the Committee members about the latest development of GL as part of the GL Group. He looked at GL's strong position in the containership segment and explained the latest trends in container shipping despite the volatility in current market conditions.
GL's new regional manager for Region Europe, Middle East, Africa, Matthias Ritters gave a detailed introduction to the challenges facing the maritime industry as it seeks to reduce its environmental impact. He looked at the adoption of the Energy Efficiency Design Index (EEDI) and the Ship Energy Efficiency Management Plan (SEEMP) at the 62nd session of the Marine Environment Protection Committee (MEPC) of the IMO. These historic events represent the first global mandatory carbon dioxide reductions implemented by any industry. GL has been preparing clients for the introduction of both the EEDI and the SEEMP for several years, with voluntary EEDI certification part of the GL Environmental Passport service package.
Mr. Jan-Olaf Probst, Executive Vice President and GL's Head of Ship Newbuilding Division, looked at developments in the design of containers ships. He analysed the effect of the planned changes to the Panama Canal locks on the boxship industry and how this might affect coming newbuilding projects. Mr Probst examined two novel designs - the "Twin Island" vessels with a relocated deckhouse, which could result in a gain of 5% in cargo capacity. And a "Baby Post-Panamax" container chip, a 4600 teu vessel which would require significantly less ballast than traditional vessels. He also examined the possibilities of LNG as a ship fuel and amendments to the IMO Code of Safe Practice for Cargo Stowage and Securing (CSS).
Mr. Athanasios Reisopoulos, Vice President, Area Manager for Southern Europe, gave an update on GL's activities in Greece. The trends were generally positive he noted with relatively low newbuilding prices having attracted many players, not just the traditional container shipping companies, but also companies from other shipping sectors. GL Greece was able to provide support to these new players in the market by organizing Container forums, in-house presentations and through tailor made GL Academy seminars focusing on special container topics. The Greek fleet was continuing its trend toward ''containerisation'', he said, with growth expecting to take the Greek share to 5% of the international container fleet by the end of 2011. It was a point of much pride that some 80% of the orders of container ships placed by Greek ship owners within the period September 2010-May 2011 will be classed by GL, he noted.

Greek entrepreneurship is on the rise despite economic crisis
--- Date: 14:29 - 01 Sep 2011
According to figures from the Regional Development Ministry that were released last week, 28,603 new business opened in Greece during the first half of this year. The numbers show that 3,000 more companies opened than closed during this period.
Especially in May and June 2011, 4,921 new companies were set up against 3,288 enterprises closing down. The majority of them was opened by young people, previously jobless, who have now turned to entrepreneurship.

ICTSI plans to buy two main Greek ports
Enrique Razon, chairman and president of ICTS, told Reuters in an interview that the company has about $500 million set aside for acquisitions and that the Greek ports, the Piraeus and Thessaloniki, were priorities.
ICT, which has outperformed the Philippines composite index since 2009, has been a favorite with analysts and has embarked on a number of growth-oriented projects recently such as greenfield terminals in Argentina, Mexico and Colombia.
The Greek ports were attractive as well because it would provide another growth catalyst for the company when the Greek economy emerges from its current quagmire.
Prospects for the container business will remain muted, although this has been true since the start of the year, Razon said.
Recent spikes of investor fears about the sovereign debt crisis and currency issues did not further aggravate business prospects, he added.
The global shipping business tends to mirror macroeconomic trends and analysts have expressed concern that the container business will be badly affected should global consumer demand further deteriorate.

RS working group has met with officials of Ministry of Development, Competitiveness & Shipping
---Sep 13, 2011
To resolve issues connected with the unlawful issuing of falsified documents by RS former Greek agent, the RS working group delegated to the Maritime Administration of the Republic of Greece has met with officials of MINISTRY OF DEVELOPMENT, COMPETITIVENESS & SHIPPING.
The meeting was chaired by Nicos Litinas, Secretary General, and attended by the Ministry top ranking representatives.In the framework of constructive dialogue both sides discussed the issue current state and the ways of solving the matter.
The following has been acknowledged during the meeting.
Safety of the vessels in question shall not be compromised. Due to the fact that certificates issued by Mr. A. Petridis, RS former Greek agent, are null, the fake certificates shall be replaced to the genuine ones only after full procedure of class assignment is performed without any exemption.
RS confirmed its noninvolvement in issuing falsified documents. To assist shipowners performing inland passenger operations who suffered from the above deceit, RS has established a group of surveyors in Greece. All requests received by RS from the Greek shipowners are being processed in due order.
The Ministry has requested to open expeditiously a new RS local office in order to address the demand from shipowners cheated by Mr. A. Petridis. RS coordinator Mr. A. Grebennikov, Deputy Head of the RS Survey Division, will stay in Athens to coordinate RS survey activities locally. RS confirmed that the number of RS surveyors will be increased, as appropriate.
It was stressed during the meeting that all up-to-date RS surveys data, including class assignment and inclusion to the Register of Ships are provided at RS web site and Greek administration has an access to Greek-flagged vessels.
The parties to the meeting agreed to maintain close contact until the matter is solved.

Navios Sagittarius bulk carrier detained in Denmark for 8 weeks
---14. september 2011 kl: 08:58
"The ship is still detained," said head of the Maritime Authority, Lars Gerhard Nielsen, Nordjyske Stiftstidende.
Diving Surveys of the ship's bottom showed several holes in the hull. It was necessary to transfer a portion of the cargo to another vessel with the help of a floating crane. As the bulk carrier is still heavily loaded repairs are made ??at sea, which takes a long time.