Europe turns to warfare technology to police new 2015 sulfur content regulations

Beware is the message from the Danish Government, who recently announced an annual budget of $1.27m, to be dedicated to monitoring emissions; to which the Danish Environmental Protection Agency (EPA) has added another $100,000 in extra funding –  as well as having the backing of the Danish Ship Owner’s Association and the Danish Maritime Agency.

From January 2015, as part of the International Maritime Organization’s (IMOs) MARPOL regulations, sulphur content of bunker fuel in the North and Baltic Seas, as well as the English Channel, will be restricted to 0.10% m/m. Proposals for the coasts around the US and Canada have also been made.

A recent article on the Maritime Cyprus linkedin group, highlighted this issue, stating that the enforcement of sulphur emission control areas (SECAs) in the waters around northern Europe will be supported with the use of sulphur detection, or ‘sniffer’ drones, which will be used to monitor emissions from ships. The drones use a self-guided system that seeks out ships at sea and measures sulphur emissions, and reports the data back in real-time.

For all owners/operators, especially those sailing through the English Channel and Northern European waters – you have less than 2 months before these new MARPOL regulations become effective and enforceable.

If you do not already have plans in place, what are you going to do?

Are you ready for retrofitting, may be a bit late. Or high priced, low sulfur bunker fuel, do you have a trusted bunker fuel supplier? Or will you take a risk on non-compliance?

Whatever option you choose – the use of drones that are able to monitor emissions will make extremely difficult to get away with anything but obeying the new MARPOL regulations which will also affect the costs of running your ship.

We believe there will be many more real challenges ahead  – relevant to environmental regulations in the coming years. Given the equally fast improving detection technology – avoidance will not be the answer!

Sulphur detection drones will monitor SECA compliance from the air – Maritime Cyprus

 

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Australia bans second box ship from Australia

From a recent article in Lloyds List Australia, it seems that Australia is aiming to lead the way in an attack on sub-standard shipping.

The latest vessel (Territory Trader) to be banned from all Australian ports for 3 months, is a small box ship (265 TEU), operated by an Indonesian company – for repeated deficiencies found during PSC inspections.

In August this year the Vega Auriga, (a 996 teu capacity) was also banned from all Australian ports – for repeated breaches of Port State Control inspections. The vessel has been in New Zealand for over 3 months and has today – after being re-named the Hanse Reliance – left New Zealand. The Vega Auriga / Hanse Reliance is beneficially owned by a German shipping company in Hamburg.

With some very positive moves Australia is backing up its moves to reduce sub-standard shipping with strong action. It remains to be seen if and how sub-standard shipping will be affected, if Australia would dare to take such action against any of the top liner companies and even more importantly – which countries will have the gumption and courage to follow Australia’s lead?

Or will financial matters prevail?

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Will gas replace coal in China’s energy demand?

The Paris based IEA (International Energy Agency) in a recent report stated that China is projected to nearly double its gas demands over the next 5 years – expected to come from both LNG and pipelines. It is further expected that half of China’s new gas demand will be met by domestic resources, most of them unconventionalmeans, e.g. coal gasification.

For the shipping industry (with around 128bn cu m increase by 2019) it’s good news. Half of all new LNG exports to China are expected to originate from Australia. While North America can potentially account for around 8% of the global LNG trade by 2019, said the report – although we would expect shipments from the US to be heading for Europe rather than Asia.

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ShippingHK Forum has the contacts and language abilities to help both Chinese and international shipowners. Join our website, blog and/or the many social platforms we are on and feel free to ask our advice – if we don’t have the immediate answer, we know someone who does – from Hong Kong, Shanghai or Singapore, to London, Hamburg and New York.

We are actively promoting ShippingHK Forum to attract members via our bi-lingual blog and the following social media channels. Please follow us and share your comments and ideas with us:

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Your chance for a private session with Bloomberg, The Economist, DNV GL and Wartsila

The more senior the Executive is – the more he will understand the importance of continually increasing and broadening his knowledge base. Just as Shipping is a global aspects in all aspects, so is the need for knowledge of what’s happening outside of the Shipping industry – that affects our global community.

With only a week to go – it’s not too late to learn from key experts in their own field, the importance of looking at the “bigger picture”; at the importance of taking into account trade flows, business trends, regional economics, geopolitical issues that should be considered when deciding business models, strategies and the make-up of your merchant fleet – not today, but for the next 2, 5 and 10 years.

If you know all the issues and the answers, we would love to have you come and speak at the Forum – if not, a half day session with senior people from The Economist, Bloomberg, DNV GL and Wartsila, plus our panelists from CLSA, CLSICO, HK Maritime Research Centre, Hong Kong Shipowners Association, ICF GHK, Noble Chartering, OOCL and RBS can provide you with the possibilities and options to answer your questions and more.

Check out the Agenda below:

And please remember this is a Forum for Senior Management Executives, key decision makers who are attending because of the specialist knowledge of the speakers and panelists and the chance to have a dialogue with each and all of them – why? To improve their own businesses – not to network and catch up with the latest gossip, except maybe for the coffee break and lunch.

By registering today, you can take advantage of the knowledge and facts dispensed by our speakers, for the price of a delegate fee of $3,120, ($2,500 for members of the HKSOA). With limited places, don’t delay, please call or register today.

At ShippingHK Forum, we are different to the many other shipping conferences/forums, with:

  • Half day Forum (so there’s exodus from half the delegates after lunch);
  • selected delegates by invitation;
  • Speakers who are expert in a field that is related or can affect the industry, with panelists from within shipping who will discuss the full implications of each presentation;
  • No media/press attendance; Chatham House rules;
  • A sit-down lunch at the end, where all delegates will be able to interact with all the speakers, from The Economist, Bloomberg, DNV GL and industry leaders

Click here to register today!

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ShippingHK Forum has the contacts and language abilities to help both Chinese and international shipowners. Join our website, blog and/or the many social platforms we are on and feel free to ask our advice – if we don’t have the immediate answer, we know someone who does – from Hong Kong, Shanghai or Singapore, to London, Hamburg and New York.

We are actively promoting ShippingHK Forum to attract members via our bi-lingual blog and the following social media channels. Please follow us and share your comments and ideas with us:

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Expected export boom from USA shale oil and gas, facing political hurdles and BP/Rosneft deal

A recent issue of Maritime Executive, had an article from Reuters’ Valerie Volcovici (see here) which shed light on the existing situation preventing any immediate financial advantage for major shale oil producers, from the potential export of oil (and gas) products.

This morning, the FT broke a story (see here) on a shale oil deal between BP and Russia’s Rosneft following on from the Total and Russia’s Lukoil JV to develop the Bazhenov shale. You could say a ‘slap in the face’ of the US sanctions on Russia for the recent Ukraine/Crimea annexation.

In this year’s The Business of Energy in relation to Global Shipping Forum, the 3rd Annual ShippingHK Forum, to be held in Hong Kong next week, on June 4th, at the Park Lane Hotel in Causeway Bay – Energy & Trade Flows are the ‘big picture’ topics that will be under the spotlight.  See below for registration details.

A 40 year ban on the export of oil from America is still in place, despite increasing efforts from “energy” lobbyists. A change would apparently necessitate an Act of Congress. Unfortunately any ‘Act’ has to be passed by both houses – requiring agreement from both Democrats and Republicans.

The unique American political process of adding “riders” to any Act of Congress, which do not necessarily have much to do with the Act itself, often turns any contentious Act of Congress into a ‘political football’.  For example earlier attempts to add (into an Act approving the export of shale oil/gas) the proviso that all exports of oil/gas products be carried by US flagged tankers.

This has potential problems, it could add to the overall transportation costs as US built tankers have higher OPEX and CAPEX and secondly, there are currently not sufficient vessels, American flagged – bearing in mind the estimated cost of building any merchant vessel in the USA could be up to 2.5 times the cost of building the same vessel in Asia the smooth export business as a result of shale oil/gas drilling is still far from reality.

In addition the successful exploration of shale finds in Siberia, North East China, the UK, Australia could see the scenario of a glut of shale products creating a sellers’ market with either too few buyers or buyers having a choice of sellers, often closer and at less transport costs than America only.

Less globalization, more intra-regional trade?

As part of our Forum – The Business of Energy in relation to Global Shipping – on June 4th, Nat Bullard of Bloomberg will give a presentation on the sources and resources of oil, gas and other energy products that can affect the global shipping industry.

By registering today, you can take advantage of the knowledge and facts dispensed by our speakers, for the price of a delegate fee of $3,120, ($2,500 for members of the HKSOA). With limited places, don’t delay, please call or register today.

At ShippingHK Forum, we are different to the many other shipping conferences/forums, with:

  • Half day Forum (so there’s exodus from half the delegates after lunch);
  • selected delegates by invitation;
  • Speakers who are expert in a field that is related or can affect the industry, with panelists from within shipping who will discuss the full implications of each presentation;
  • No media/press attendance; Chatham House rules;
  • A sit-down lunch at the end, where all delegates will be able to interact with all the speakers, from The Economist, Bloomberg, DNV GL and industry leaders

Click here to register today!

***************************************************************************************

ShippingHK Forum has the contacts and language abilities to help both Chinese and international shipowners. Join our website, blog and/or the many social platforms we are on and feel free to ask our advice – if we don’t have the immediate answer, we know someone who does – from Hong Kong, Shanghai or Singapore, to London, Hamburg and New York.

We are actively promoting ShippingHK Forum to attract members via our bi-lingual blog and the following social media channels. Please follow us and share your comments and ideas with us:

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PE funds bad for recovery, good for shipyards

A recent story (read here) from Keith Wallis (Reuters), talked about a $32 billion investment over the past 2 years that has multiplied the risk of over-capacity, just as the seemingly ‘recovery’ is on the way.

Thousands of new ships have been ordered on the back of ‘bottoming newbuilding costs’, mostly without regard basic fundamentals such as employment of the ‘yet-to-be-built’ ships. To some degree this has been borne out by some intended shipping IPOs that have been put off on weak sentiment.

Much of this could be related to a failure of senior management in general to consider external factors in the overall corporate strategy – such as geopolitical risks, change in trade flows, rapidly developing landscape for new and developing sources of energy, development of low sulphur diesel, LNG, shale gas and resultant economic consequences and more.

In this year’s ShippingHK Forum : The Business of Energy in relation to Global Shipping, we take a close look at the options, the availabilities and the existing resources of energy requirements – starting with a review of the current and trends for trade flows, worldwide and regional (The Economist); the sources and resources of Energy, globally (Bloomberg) and specifically, the fuel options for powering ships (DNV GL).

One Oslo listed dry cargo ship owner commented that some of the orders placed by PE were perhaps purely with the intention of speculative gain in asset price appreciation rather than working assets for long-term positive cashflow.

Another point that PE, as well as many traditional shipowners have not taken into account, is the geopolitical factors; actual global v. regional trade flows; impending legislation re environmental issues; developing fuel options for powering ships. In the run-up to 2016, as the many newbuildings are being delivered – which ships will be out of date on day 1? Will there be options for LNG as a fuel source built into all new buildings? Will low suphur diesel become the norm close to Ports – is the industry ready with its infrastructure, the bunkering LNG in ports?

Senior management needs to consider the “big picture” and all its ramifications for all stakeholders in the industry, especially the ship owners/operators. At ShippingHK Forum, we are doing just that with our forthcoming forum on: “The Business of Energy in relation to Global Shipping”.

A Forum that will look at Global and regional trade flows (The Economist); the sources and resources of different types of energy, from where the sellers and buyers will come from (Bloomberg); then specifically relate them to the shipping industry by looking at the fuel options for powering ships (DNV GL).

Finally, our panel of people in the industry will look at how to take advantage of all this “big picture” knowledge and put it to practical use.  Please review our Agenda (here).

By registering today, you can take advantage of the knowledge and facts dispensed by our speakers, for the price of a delegate fee of $3,120, ($2,500 for members of the HKSOA). With limited places, don’t delay, please call or register today.

At ShippingHK Forum, we are different to the many other shipping conferences/forums, with:

  • Half day Forum (so there’s exodus from half the delegates after lunch);
  • selected delegates by invitation;
  • Speakers who are expert in a field that is related or can affect the industry, with panelists from within shipping who will discuss the full implications of each presentation;
  • No media/press attendance; Chatham House rules;
  • A sit-down lunch at the end, where all delegates will be able to interact with all the speakers, from The Economist, Bloomberg, DNV GL and industry leaders

Click here to register today!

***************************************************************************************

ShippingHK Forum has the contacts and language abilities to help both Chinese and international shipowners. Join our website, blog and/or the many social platforms we are on and feel free to ask our advice – if we don’t have the immediate answer, we know someone who does – from Hong Kong, Shanghai or Singapore, to London, Hamburg and New York.

We are actively promoting ShippingHK Forum to attract members via our bi-lingual blog and the following social media channels. Please follow us and share your comments and ideas with us:

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Deadlines for nitrogen & sulphur oxide emissions closing in fast

The topic of emission controls may not be the owner/operator’s favourite, primarily due to cost issues – but it will improve the industry’s “green platform”, in assisting to create a clean and environmentally-sustainable alternative to powering the global merchant fleet.

An article (read here) discusses the future of marine fuel beyond the current bunkers and diesel options being used today. With the coming deadlines rapidly approaching is everyone in the industry aware of all the options choices available?

In this year’s ShippingHK Forum : The Business of Energy in relation to Global Shipping, we take a close look at the options, the availabilities and the existing resources of energy requirements – starting with a review of the current and trends for trade flows, worldwide and regional (The Economist); the sources and resources of Energy, globally (Bloomberg) and specifically, the fuel options for powering ships (DNV GL).

The last session will be a panel session (led by Wartsila) discussing all of the above and how they relate to the shipping industry, in a business sense. From basic fuel options (bunkers, low sulphur diesel, LNG, use of scrubbers) to help with emissions – to powering ships with clean, alternative choices, such as methanol, DME and even a 30% ethanol, 70% diesel mixture to power diesel engines. For close in-shore, port approaches ‘battery packs’ able to output power equivalent to diesel engines are well on the way.

The difference in our Forum approach to these issues is in looking at them with a business approach. We know the costs associated are heavy, but what else can be done to offset such initial costs?

Apart from being forced to take some measures due to legislation, we would like to think there can be business value derived from thinking, considering and implementing your approach to the topic of Energy for Powering Ships, by way of mid to long term strategies for structuring your fleet, by type, size of ship. Selecting which space you want to play in and staying ahead of the ‘trend’ – as opposed to being “one of the herd” who follows the ideas of one or two leaders in each section.

By registering today, you can take advantage of the knowledge and facts dispensed by our speakers, for the price of a delegate fee of $3,120, ($2,500 for members of the HKSOA). With limited places, don’t delay, please call or register today.

At ShippingHK Forum, we are different to the many other shipping conferences/forums, with:

  • Half day Forum (so there’s exodus from half the delegates after lunch);
  • selected delegates by invitation;
  • Speakers who are expert in a field that is related or can affect the industry, with panelists from within shipping who will discuss the full implications of each presentation;
  • No media/press attendance; Chatham House rules;
  • A sit-down lunch at the end, where all delegates will be able to interact with all the speakers, from The Economist, Bloomberg, DNV GL and industry leaders

Click here to register today!

***************************************************************************************

ShippingHK Forum has the contacts and language abilities to help both Chinese and international shipowners. Join our website, blog and/or the many social platforms we are on and feel free to ask our advice – if we don’t have the immediate answer, we know someone who does – from Hong Kong, Shanghai or Singapore, to London, Hamburg and New York.

We are actively promoting ShippingHK Forum to attract members via our bi-lingual blog and the following social media channels. Please follow us and share your comments and ideas with us:

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Regional trade patterns affected by politics, already evident in Asia

In a recent edition of Tradewinds (read here) the back page was devoted to a story on changing trade patterns as a result of Asian Government policies in the dry bulk market, specifically iron ore and nickel meaning a reduction in exports to China. If exports from India and Indonesia stay restricted due to politics, China will be looking elsewhere for new suppliers.

This is just one example of a trend in trade patterns changing. And it is happening in all markets, politics, new technological developments in mining, in the shale oil/gas markets; and with 90+ percent of all trade being sea-borne – it will affect all the whole shipping industry, sooner of later.

We feel that an important overall trend may well be an increase in regional trade flows at the expense of the popular concept of globalization. As a ship owner, operator, tonnage provider have you thought of the ramifications that could mean to your current business model? Your forward order book?

Ross O’Brien, Chief Economist for North Asia, for The Economist – the premier, global economic publication – will provide delegates with an overview of the current and developing trends for global trade flows and if the trend towards regional trade flows is sustainable or will it mean more volatility?

Following Ross O’Brien’s presentation, we will have a panel discussion, headed by Raghu Raghunath, Head of Chartering, Noble Chartering, to look at what points made in the presentation may mean to the shipping industry. He will be joined by Louis Kuijs, Chief Economist, Greater China Markets, Royal Bank of Scotland (RBS); Jonathan Beard, Executive Director, ICF GHK and Simon Powell, Head of Oil & Gas Research, CLSA.

By registering today, you can take advantage of the knowledge and facts dispensed by our speakers, for the price of a delegate fee of $3,120, ($2,500 for members of the HKSOA). With limited places, don’t delay, please call or register today.

At ShippingHK Forum, we are different to the many other shipping conferences/forums, with:

  • Half day Forum (so there’s exodus from half the delegates after lunch);
  • selected delegates by invitation;
  • Speakers who are expert in a field that is related or can affect the industry, with panelists from within shipping who will discuss the full implications of each presentation;
  • No media/press attendance; Chatham House rules;
  • A sit-down lunch at the end, where all delegates will be able to interact with all the speakers, from The Economist, Bloomberg, DNV GL and industry leaders

Click here to register today!

***************************************************************************************

ShippingHK Forum has the contacts and language abilities to help both Chinese and international shipowners. Join our website, blog and/or the many social platforms we are on and feel free to ask our advice – if we don’t have the immediate answer, we know someone who does – from Hong Kong, Shanghai or Singapore, to London, Hamburg and New York.

We are actively promoting ShippingHK Forum to attract members via our bi-lingual blog and the following social media channels. Please follow us and share your comments and ideas with us:

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“Most forces for change in Shipping, technologies & business models, will come from outside of the industry,” says Nat Bullard, Bloomberg

Joining Henning Mohn (DNV GL) and Ross O’Brien (The Economist) on the Forum for this year’s ShippingHK Event – is Nat Bullard (Bloomberg) Director of Content, Bloomberg New Energy Finance and one of our 3 featured speakers for our 3rd Annual ShippingHK Forum 2014.

Nat will look at Energy Sources, today and tomorrow. Will it be oil and LNG, are there other options? Are there new energy sources coming on stream, new countries becoming dominant, such as USA and their shale gas/oil, will they be dominant or joined by Australia, China, eastern Russia (Siberia), all with their own claims, many yet to be fully developed.

Nat Bullard’s focus within the global Bloomberg organization, is on analyzing how new technologies and new business models impact very large incumbent systems. In the energy area specifically, as he says, “The inspiration for change in shipping, may well be disruptive, but most importantly, the inspiration for change will be inspired by forces and examples outside of the shipping industry – rather than from within”.

Nat will use Bloomberg’s global resources to illustrate examples from the energy sector that will affect the Shipping industry – your outlook, your strategic thinking and practical planning to ensure your business not only survives, but prospers in the coming decade and beyond. New business models? How long has the term “tonnage provider” been used to describe a business model?  Take a moment to think about the very real possibilities of the following examples that could change your outlook on today’s shipping markets:

  1. at Bloomberg, the forecast is that global LNG capacity will double by the end of the decade. We expect ample demand in Asia to absorb that new capacity.
  • what if China’s shale gas reserves turn out to be easily extracted at a competitive price?
  • if Australia’s LNG projects continue to overrun cost estimates?
  • if continental Europe decides to wean itself from Russian pipelines, regardless of the near-term cost to its power sector?
  1. seaborne coal has long supplied marginal coal needs in China and India… but Indonesia is now restricting exports, and China is doing all it can to reduce coal burn in its major cities.
  1. new technologies can go from marginal to crucial with the stroke of a pen…  so when a port imposes new sulphur limits for ships approaching port, does that mean that all ships switch fuels  -  or do they employ next-generation battery technologies to run all-electric in port?

You may think some of these points are a bit academic as opposed to real?  Consider this: Dr Helmut Sohmen, Chairman of BW Group, also runs a venture fund - Green Marine Capital. This Company recently placed a strategic investment of $5 million with a company called Corvus Energy, for workingcapital to provide industrial-sized power in compact, modular lithium-ion battery systems that have the capacity to output sustained power comparable to diesel engines.

By registering today, you can take advantage of the knowledge and facts dispensed by our speakers, for the price of a delegate fee of $3,120, ($2,500 for members of the HKSOA). With limited places, don’t delay, please call or register today.

At ShippingHK Forum, we are different to the many other shipping conferences/forums, with:

  • Half day Forum (so there’s exodus from half the delegates after lunch);
  • selected delegates by invitation;
  • Speakers who are expert in a field that is related or can affect the industry, with panelists from within shipping who will discuss the full implications of each presentation;
  • No media/press attendance;  Chatham House rules;
  • A sit-down lunch at the end, where all delegates will be able to interact with all the speakers, from The Economist, Bloomberg, DNV GL and industry leaders

Click here to register today!

***************************************************************************************

ShippingHK Forum has the contacts and language abilities to help both Chinese and international shipowners. Join our website, blog and/or the many social platforms we are on and feel free to ask our advice – if we don’t have the immediate answer, we know someone who does – from Hong Kong, Shanghai or Singapore, to London, Hamburg and New York.

We are actively promoting ShippingHK Forum to attract members via our bi-lingual blog and the following social media channels. Please follow us and share your comments and ideas with us:

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DNV GL joins The Economist and Bloomberg on speakers’ list for ShippingHK Forum 2014

ShippingHK Forum is excited to announce that Mr Henning Mohn, Head of Shipping Advisory Department, DNV GL is coming to Hong Kong to address the C-Executive delegates attending ShippingHK Forum, on Fuel Options for Powering Ships.

In recent times, Mr Mohn has given presentations on eco-ships and LNG as fuel, including bunkering. At ShippingHK Forum, he will look at both gas and oil options, in terms of type, costs – as fuel and in the case of LNG, retrofitting, environmental and other legislation and engine/ship design.

For example, flexible ship designs that, when time is right, can be swiftly refurbished to carry ballast water systems, scrubber, or modified efficiently to be able to run on novel fuels etc., is a distinct feasibility. Henning has high expectations for environmental technology for the coming years but in this business forum environment he will focus on the ramifications of the choices owners will have today and in the future. Choices that will help owners in making strategic decisions on the future planning and on the future structure of their fleet make-up.

Henning Mohn is Norwegian and has 18 years of experience within environmental engineering and process technology, plus for the last 10 years, with DNV, significant experience in project management, installations and sales to yards and ship owners worldwide. He is currently heading DNV GL’s Green Shipping advisory services in S.E Asia, based in Singapore.

The global expertise of DNV and the recent merger with GL, will ensure that the resources of the largest Class in the world will bring the highest “knowledge base” on offer to this year’s ShippingHK Forum 2014. Can you afford to miss out? No Press – also means that delegates and speakers can be open in their discussions and interactions during panel discussions.

By registeringtoday, you can take advantage of the knowledge and facts dispensed by our speakers, for the price of a delegate fee of $3,120, ($2,500 for members of the HKSOA). Limited number of places, please call or registertoday.

At ShippingHK Forum, we are different to the many other shipping conferences/forums, with:

  • Half day Forum (so there’s no exodus from half the delegates after lunch);
  • selected delegates by invitation;
  • Speakers who are expert in a field that is related or can affect the industry, with panelists from within shipping who will discuss the full implications of each presentation for the shipping industry;
  • No media/press attendance; Chatham House rules
  • A sit-down lunch at the end, where all delegates will be able to interact with all the speakers, from The Economist, Bloomberg, DNV GL and industry leaders.

Click here to register today!

***************************************************************************************

ShippingHK Forum has the contacts and language abilities to help both Chinese and international shipowners. Join our website, blog and/or the many social platforms we are on and feel free to ask our advice – if we don’t have the immediate answer, we know someone who does – from Hong Kong, Shanghai or Singapore, to London, Hamburg and New York.

We are actively promoting ShippingHK Forum to attract members via our bi-lingual blog and the following social media channels. Please follow us and share your comments and ideas with us:

Posted in Uncategorized | Leave a comment