Energy Information Administration predicts rising oil demand, prices
January 15, 2010 Break Bulk Connection
Global oil demand fell in 2009 and 2008, the first time since 1983 that oil demand has fallen for two consecutive years, according to a short-term energy outlook released this week by the US Energy Information Administration. However, the decline bottomed out in mid-2009 and the EIA expects recovery to continue with oil demand growth of 1.1 million barrels per day in 2010 and 1.5 million bbl/d in 2011.
Countries outside of the Organization for Economic Cooperation and Development will lead 2010 demand recovery while OECD countries should see some demand growth in 2011, the EIA said. Overall, China is expected to lead world consumption demand growth with estimated increases of more than 0.4 million bbl/d both years.
The EIA expects the benchmark West Texas Intermediate crude oil price per barrel, which averaged $62/bbl in 2009, to average $80 in 2010 and $84 in 2011. EIA’s forecast assumes U.S. GDP growth of 2 percent in 2010 and 2.7 percent in 2011 and world oil-consumption-weighted growth of 2.5 percent in 2011 and 3.7 percent in 2011.
The EIA also expects annual average natural gas spot prices in the U.S. to increase from $4.06 per thousand cubic feet (Mcf) in 2009 to $5.36 Mcf in 2010 and $6.12 Mcf in 2011.
Global investments in oil and gas exploration and development, and related heavy-lift and project cargo movement, can be expected to increase as oil and gas prices rise.
Monday, January 18, 2010
Tuesday, November 24, 2009
World Steel Production Increases in October
Breakbulk News 11/23/09
Production of crude steel, a key breakbulk cargo, in the 66 countries that report to the World Steel Associaiton increased 3% from September to October, or to 112,177 Million metric tons from 108,816 metric tons. However, total global steel production for the ten months through October lagged 13.5%, reaching only 982,143 metrick tons compared to 1,135,544 during the same period of 2008.
Chinese steel production during the first ten months of 2009 was 472,474 metric ton, an increase of 10.5% over the same perios in 2008. China's ten-month 2009 total accounted for 48% of global total for the period. Japan accounted for about 7% of the global total; Russia, about 5%; India, about 5%, US, about 5%, South Korea, about 4% and the EU, about 11%
Breakbulk News 11/23/09
Production of crude steel, a key breakbulk cargo, in the 66 countries that report to the World Steel Associaiton increased 3% from September to October, or to 112,177 Million metric tons from 108,816 metric tons. However, total global steel production for the ten months through October lagged 13.5%, reaching only 982,143 metrick tons compared to 1,135,544 during the same period of 2008.
Chinese steel production during the first ten months of 2009 was 472,474 metric ton, an increase of 10.5% over the same perios in 2008. China's ten-month 2009 total accounted for 48% of global total for the period. Japan accounted for about 7% of the global total; Russia, about 5%; India, about 5%, US, about 5%, South Korea, about 4% and the EU, about 11%
Friday, October 30, 2009
Implementation of Debarking Requirements
The American Lumber Standard Committee has notified agencies accredited for Wood Packaging Material that the European Union has implement a debarking requirement as of July this year. At this time the SPIB is not obligated to enforce this requirements so compliance is a business decision for the producer.
The anticipated restriction is that areas of bark up to 3 centimeters wide are unlimited in length or if over 3 centimeters wide can not exceed the size of a credit card. This restriction is based on a proposed change to the ISPM 15
The American Lumber Standard Committee has notified agencies accredited for Wood Packaging Material that the European Union has implement a debarking requirement as of July this year. At this time the SPIB is not obligated to enforce this requirements so compliance is a business decision for the producer.
The anticipated restriction is that areas of bark up to 3 centimeters wide are unlimited in length or if over 3 centimeters wide can not exceed the size of a credit card. This restriction is based on a proposed change to the ISPM 15
Thursday, October 29, 2009
Breakinig News:
U. S. Truck Driver Hours of Service rules to be Re-written
The Federal Motor Carrier Safety Administration (FMCSA), in response to a legal challenge to the current hours of service (HOS) regulations, will completely rewrite the 2008 HOS reuglations. The agency will issue a proposed rulemaking within 9 months and a new Final Rule in less than two years.
This settlement is in response to a legal challenge brought against FMCSA by Public Citizen, Advocates for Highway and Auto Safety, the Truck Safety Coalition and the International Brotherhood of Teamsters. In March 2009 the groups asked a DC Appeals court to throw out the HOS rule. The March 2009 challenge was the third challenge to the Bush Administration's HOS rules.
U. S. Truck Driver Hours of Service rules to be Re-written
The Federal Motor Carrier Safety Administration (FMCSA), in response to a legal challenge to the current hours of service (HOS) regulations, will completely rewrite the 2008 HOS reuglations. The agency will issue a proposed rulemaking within 9 months and a new Final Rule in less than two years.
This settlement is in response to a legal challenge brought against FMCSA by Public Citizen, Advocates for Highway and Auto Safety, the Truck Safety Coalition and the International Brotherhood of Teamsters. In March 2009 the groups asked a DC Appeals court to throw out the HOS rule. The March 2009 challenge was the third challenge to the Bush Administration's HOS rules.
Wednesday, September 30, 2009
11th Fastest Growning Woman Owned Business
Dixie Cullen Intersts was honored by the Houston Business Journal as "Houston's 11th Fastest Growing Woman Owned Business".
Our management and customer services TEAMS have been instrumental in this growth, by providing our customers with quality service.
We also wish to Thank You, our customers for entrusting us with your industrial storage and export packing needs.
It will be our pleasure to continue serving you and your needs in the future.
Tuesday, September 08, 2009
Wednesday, September 02, 2009
All Companies Need Economic Operator Registration and Identification Number (EORI)
From Export News Newsletter - US Export Assistance Center
As of July 1, 2009, nearly all companies doing business in the EU or companies exporting to the EU will need an Economic Operator Registration and Identification number (EORI as EORI numbers are required for Customers Declarations and to apply for Authorized Economic Operator status. Member states may have different procedures for applying for EORI numbers and exporters will be required to register for EORI in the first member state they do business in after July 1. Any companies that do not have EORI number or do not know if they have one should be sure to check the EU Customs page that explains whi is impacted.
For more details see www.buyusa.gov/europeanunion/whatsnew.html
Pam Plagens Pam.plagens@mail.doc.gov
Nyamusi Igambi Nyamusi.igambi@mail.doc.gov
Tuesday, September 01, 2009
What's New in the European Union
From the September issue of Export News - U S Export Assistance Center
New Requirements for US Exporters of Machines:
As of December 29, 2009 when the new MACHINE SAFETY DIRECTIVE (2006/42/EC) becomes mandatory, US exporters of machines will need to identify a person established in the European Union who is authorized to keep the manufactuer's technical file or have quick access to it. This person's name must appear on the declaration of conformity along with the name and address of the manufacturer. The person could be no more than a letterbox, a point of contact for the authorities in case there are questions about confomrity of the machine or about accidents. The person based in Europe could be the importer/distributor, a lawyer, an authorized representative, or any other person. The manufacturer remains responsible for compiling the technical file. This requirement is an example of the beefed up surveillance and enforcement the EU is putting into effect to back up the CE marking program.
Nyamusi Igambi - Senior Trade Specialist Nyamusi.igambi@mail.doc.gov
Pam Plagens - Senior Trade Specialist Pam.plagens@mail.doc.gov
Monday, August 17, 2009
Low dollar boosts used equipment exports
posted by bwyker Breakbulk News
If there is any silver lining for the shipping industry in the clouds enveloping the US economy, it's the increase in exports fueled by the weakness of the dollar. For the breakbulk and project cargo sector of the industry, the export boom has generated a big increase in shipments of used construction and agricultural equipment, dismantled plants, old locomotives and high and heavy vehicles.
The trend is so pronounced that some breakbulk ports are beginning to look like giant garage sales -- with every inch of storage yard stacked high wuth used cranes, dismantled refining equipment, graders, bulldozers, harvesters and tractors.
Read more on this artical -- click here
Sunday, August 16, 2009
Carloads Grow at Large Railroads
posted by jnodar On July 16, 2009 Breakbulk Industry News
Carlaodings of machinery and bulk materials rose in the latest week to the strongest level in three months at major U. S. railroads, as freight picked up after the slow July 4 holiday period
The latest weekly rail traffic report is in line with other signs that the economy continues to bump along the bottom, with some idnicatiors that strength is returning bu others showing freight sectors are flattened or moving in an up and down pattern over the weeks.
Read more of this article click here
Saturday, August 15, 2009
Wind Power's Long and Winding Road
Break Bulk News August 10, 2009 Peter Leach
Stephen Donchez feels the pain of drivers who get stuck behind one of his big rigs.
"Motorists hate to see us on the road because we're slow moving and slow down traffic." said Donchez, president of American Transport Systems, a Vineland NJ motor carrier that specializes in carrying massive, oversize wind power components.
American drivers had better get used to the frustration, because they're likely to see a lot more big righs hauling windmill blades, towers and turbines on U. S. roadways: energy economists expect wind farms will produce 20 percent of the U. S. electricity supply by 2020. That means a multitude of new wind farms nationwide.
Read more of this article
Break Bulk News August 10, 2009 Peter Leach
Stephen Donchez feels the pain of drivers who get stuck behind one of his big rigs.
"Motorists hate to see us on the road because we're slow moving and slow down traffic." said Donchez, president of American Transport Systems, a Vineland NJ motor carrier that specializes in carrying massive, oversize wind power components.
American drivers had better get used to the frustration, because they're likely to see a lot more big righs hauling windmill blades, towers and turbines on U. S. roadways: energy economists expect wind farms will produce 20 percent of the U. S. electricity supply by 2020. That means a multitude of new wind farms nationwide.
Read more of this article
Tuesday, July 21, 2009
Most American's Support Heavier Trucks
from eTrucker.com news
The Coalition for Transportation Productivity, a coalition of more than 100 shippers and allied associations seeking increased federal weight limits on interstate highways, today, July 15, announced the results of a national poll it says demonstrates a majority of Americans support raising interstate trucks weight limits without making trucks larger.
To read more about the survey and key findings click here
Friday, July 17, 2009
Ocean Carriers Planning a $500.00 Rate Hike
for Asia - US Containers
The 14 shipping lines of the Transpacific Stabalization agreement are planning to increase rates for Asia - US Containers starting August 1st.
To read more : click here
Thursday, July 16, 2009
US Trade Gap Lowest in 9 years!
The BBC reported:
The US saw it's deficit narrow to $26 bn in May, it's lowest level i more then nie years, according to figures from the commerce department.
Imports continued to fall while exports increased, pushing the deficit to it's lowest level since November 1999.
Wednesday, June 10, 2009
U.S. Box Imports Plummet 22 Percent
Bill Mongelluzzo Jun 9, 2009 6:28PM GMTThe Journal of Commerce Online - News Story
Slight April gain over March gives weak signal for peak season
Container volumes at U.S. ports edged up in April compared to March, but remained well below the volumes recorded in April 2008, according to the monthly Port Tracker published by the National Retail Federation and IHS Global Insight.
The second half of 2009 appears to be trending the same way the first half progressed, with containerized imports creeping up compared to the month before, but down noticeably from the same month last year.
It therefore looks like the back-to-school shopping season this summer, traditionally the second busiest period on retailers' calendars, will be disappointing. Prospects for the holiday shopping season that follows look equally bleak.
These developments are reflected directly in the cargo volumes moving through the eight major U.S. container gateways covered by Port Tracker.
"Retailers are still being cautious with their inventory levels in anticipation of slow sales this summer into the fall," said Jonathan Gold, vice president for supply chain and customs policy at the National Retail Federation.
Containerized imports in April increased 2 percent over March, but were down 22 percent compared to April 2008, according to Port Tracker. April was the third lowest month since 2004 and marked the 22nd month in a row of year-over-year declines in volume.
Projections call for May to be down 21 percent and June 19 percent from the same months last year. Port Tracker projects that containerized imports in the first half of 2009 will be down 21 percent compared to the first six months of 2008.
Port Tracker projects volumes in the peak summer-fall months through October will be down about 16 to 18 percent compared to peak season 2008.
Logistically, the U.S. port and intermodal transportation networks are operating efficiently and without any disruptions. Ports are congestion-free from vessel to gate. Rail service levels are good and the harbor trucking industry is operating with excess capacity.
On the other hand, all of these transportation industries are struggling with weak revenues and over-capacity.
Introduction of the federal security program known as the Transportation Worker Identification Credential has successfully taken place at all major gateways.
Contact Bill Mongelluzzo at bmongelluzzo@joc.com.
Bill Mongelluzzo Jun 9, 2009 6:28PM GMTThe Journal of Commerce Online - News Story
Slight April gain over March gives weak signal for peak season
Container volumes at U.S. ports edged up in April compared to March, but remained well below the volumes recorded in April 2008, according to the monthly Port Tracker published by the National Retail Federation and IHS Global Insight.
The second half of 2009 appears to be trending the same way the first half progressed, with containerized imports creeping up compared to the month before, but down noticeably from the same month last year.
It therefore looks like the back-to-school shopping season this summer, traditionally the second busiest period on retailers' calendars, will be disappointing. Prospects for the holiday shopping season that follows look equally bleak.
These developments are reflected directly in the cargo volumes moving through the eight major U.S. container gateways covered by Port Tracker.
"Retailers are still being cautious with their inventory levels in anticipation of slow sales this summer into the fall," said Jonathan Gold, vice president for supply chain and customs policy at the National Retail Federation.
Containerized imports in April increased 2 percent over March, but were down 22 percent compared to April 2008, according to Port Tracker. April was the third lowest month since 2004 and marked the 22nd month in a row of year-over-year declines in volume.
Projections call for May to be down 21 percent and June 19 percent from the same months last year. Port Tracker projects that containerized imports in the first half of 2009 will be down 21 percent compared to the first six months of 2008.
Port Tracker projects volumes in the peak summer-fall months through October will be down about 16 to 18 percent compared to peak season 2008.
Logistically, the U.S. port and intermodal transportation networks are operating efficiently and without any disruptions. Ports are congestion-free from vessel to gate. Rail service levels are good and the harbor trucking industry is operating with excess capacity.
On the other hand, all of these transportation industries are struggling with weak revenues and over-capacity.
Introduction of the federal security program known as the Transportation Worker Identification Credential has successfully taken place at all major gateways.
Contact Bill Mongelluzzo at bmongelluzzo@joc.com.
Tuesday, June 09, 2009
Shippers Throw Support to Heavier Trucks
John Gallagher Jun 8, 2009 7:12PM GMTThe Journal of Commerce Online - News Story
Coalition supports bill to raise size, weight limits on interstates
Big shippers are throwing their weight behind legislation allowing heavier trucks on federal roads as a way to boost carrier productivity, save fuel, and cut transportation costs.
The Coalition for Transportation Productivity, representing more than 100 associations and companies such as the National Industrial Transportation League, Kraft Foods, Archer Daniels Midland and International Paper, is urging Congress to raise federal vehicle weight limits on U.S. interstates to 97,000 lbs. through its support of the Safe and Efficient Transportation Act of 2009. The measure was introduced in Congress March 30.
The legislation stipulates raising the weight limits would only be allowed for vehicles equipped with a sixth axle, which would maintain braking capacity and weight distribution per tire. The bill imposes a user fee for six-axle units to fund bridge repair.
More freight on fewer trucks would also make roads safer, says CTP Co-chairman John Runyan.
“Accident rates among heavy vehicles are strongly tied to the vehicle miles a truck must travel to deliver a ton of freight,” he said. Allowing heavier trucks “would reduce the number of vehicle miles and overall number of trucks needed to deliver a specific amount of freight, making roads safer while cutting fuel and emissions by as much as 19 percent for each ton carried.”
Railroads have long opposed such legislation, claiming raising truck weight limits would give them a competitive edge in the fight over shipper dollars. The AAR cites a 1999 DOT study suggesting increasing truck size and weights would result in a decline in rail revenue of between $2.9 billion and $6.7 billion. Rail earnings would decline 32 percent to 46 percent, and rail car-miles would decline 4 percent to 20 percent, the study said.
Contact John Gallagher at jgallagher@joc.com.
John Gallagher Jun 8, 2009 7:12PM GMTThe Journal of Commerce Online - News Story
Coalition supports bill to raise size, weight limits on interstates
Big shippers are throwing their weight behind legislation allowing heavier trucks on federal roads as a way to boost carrier productivity, save fuel, and cut transportation costs.
The Coalition for Transportation Productivity, representing more than 100 associations and companies such as the National Industrial Transportation League, Kraft Foods, Archer Daniels Midland and International Paper, is urging Congress to raise federal vehicle weight limits on U.S. interstates to 97,000 lbs. through its support of the Safe and Efficient Transportation Act of 2009. The measure was introduced in Congress March 30.
The legislation stipulates raising the weight limits would only be allowed for vehicles equipped with a sixth axle, which would maintain braking capacity and weight distribution per tire. The bill imposes a user fee for six-axle units to fund bridge repair.
More freight on fewer trucks would also make roads safer, says CTP Co-chairman John Runyan.
“Accident rates among heavy vehicles are strongly tied to the vehicle miles a truck must travel to deliver a ton of freight,” he said. Allowing heavier trucks “would reduce the number of vehicle miles and overall number of trucks needed to deliver a specific amount of freight, making roads safer while cutting fuel and emissions by as much as 19 percent for each ton carried.”
Railroads have long opposed such legislation, claiming raising truck weight limits would give them a competitive edge in the fight over shipper dollars. The AAR cites a 1999 DOT study suggesting increasing truck size and weights would result in a decline in rail revenue of between $2.9 billion and $6.7 billion. Rail earnings would decline 32 percent to 46 percent, and rail car-miles would decline 4 percent to 20 percent, the study said.
Contact John Gallagher at jgallagher@joc.com.
Friday, June 05, 2009
Texas makes Port of Brownsville overweight corridor program permanent
May 21, 2009 Breakbulk News
Texas Governor Rick Perry has signed legislation that will permanently allow overweight freight to be transported by truck between the Port of Brownsville and Mexico. The corridor allows trucks carrying primarily break bulk steel but also other cargoes to be loaded to Mexican truck weights. Without the corridor, said the port’s Deputy Director Donna Eymard, shippers would have to use two trucks instead of one and the steel Brownsville handles would move to Mexican ports.
Brownsville is one of the U.S.’s largest steel ports, handling more than 2 million tons during 2008. Virtually all of the port’s import steel goes to mills in northern Mexico to be processed. After processing, some of it is then re-exported.
Port Director and chief executive officer Eduardo A. Campirano said in the port’s statement that “this is great news for the state, the port, the county, the city, and the consumer. The overweight corridor program helps to insure the sustainable growth of the Port – the economic engine for the Rio Grande Valley and Northern Mexico.”
May 21, 2009 Breakbulk News
Texas Governor Rick Perry has signed legislation that will permanently allow overweight freight to be transported by truck between the Port of Brownsville and Mexico. The corridor allows trucks carrying primarily break bulk steel but also other cargoes to be loaded to Mexican truck weights. Without the corridor, said the port’s Deputy Director Donna Eymard, shippers would have to use two trucks instead of one and the steel Brownsville handles would move to Mexican ports.
Brownsville is one of the U.S.’s largest steel ports, handling more than 2 million tons during 2008. Virtually all of the port’s import steel goes to mills in northern Mexico to be processed. After processing, some of it is then re-exported.
Port Director and chief executive officer Eduardo A. Campirano said in the port’s statement that “this is great news for the state, the port, the county, the city, and the consumer. The overweight corridor program helps to insure the sustainable growth of the Port – the economic engine for the Rio Grande Valley and Northern Mexico.”
Wednesday, May 13, 2009
May 5, 2009 May 5, 2009 – 1:48 pm-->By Alan Field Breakbulk from the Journal of Commerce
Shipping near record low, says industry group
The United States imported a total of 1.5 million net tons of steel in March, the American Iron and Steel Institute reported, based on preliminary Census Bureau data. Imports of this breakbulk cargo included 1.437 million net tons of finished steel, down 3 percent from February.
Precision Metalforming Association President William E. Gaskin said, “The continuing fall in steel imports in March is not a surprise given the lingering sluggishness in the U.S. manufacturing sector, which has had a real impact on our members. According to PMA’s most recent survey of business conditions, the number of metal forming companies with a portion of their workforce on short time or layoffs increased to 85 percent in April, up from 76 percent in March. And while optimism about expectations for new orders has risen over the past few months, current shipping levels remain near record lows.”
China dominates imports
In March, the largest volume of finished imports from offshore was from China (196,000 net tons, down 28 percent from February). The March tonnage from China was 14 percent of all finished imports. Other major offshore suppliers in March were Korea, Japan, and India.
March imports of hot-rolled steel dropped seven percent from February’s levels, from 152,983 to 141,792 metric tons. Cold-rolled steel imports also declined, from 111,625 metric tons in February to 96,236 metric tons in March, a drop of 14 percent.
Key products that increased in March compared to February included reinforcing bars (up 155 percent), mechanical tubing (up 46 percent), hot dipped galvanized sheet & strip (up 28 percent), line pipe (up 24 percent) and standard pipe (up 24 percent).
Saturday, May 09, 2009
Piracy could bring maritime trade to its knees:
By Michael Edwards
Posted Wed Apr 15, 2009 8:24am AEST Updated Wed Apr 15, 2009 9:14am AEST ABC News
Maritime experts say shipping will only get slower and more expensive unless something is done to stop the threat of Somali pirates.
As details continue to emerge about the dramatic rescue of the American ship Captain Richard Phillips, more questions are being asked about the impact of piracy on shipping routes.
This comes as Somali pirates raised the stakes this morning, seizing two more ships and throwing down the gauntlet to tough-talking US President Barack Obama.
To get an idea of the piracy situation off the horn of Africa, look at ABC News Online's interactive map.
The problem has already sent insurance rates up and more ships are opting to take the slower route around South Africa instead of through the Suez Canal.
Australia's shipping industry says it will have an adverse effect on the world economy as trade slows down.
Friends and colleagues of Captain Richard Phillips are still dealing with his dramatic rescue at the hands of US Navy Seal marksmen.
Shane Murphy is Captain Phillips's chief mate onboard the Maersk Alabama. I just got off the phone with our captain, Richard Phillips for the first time, and it was an extremely emotional experience for all of us to actually hear his voice and hear the condition he was in," he said.
"He is absolutely elated and he couldn't be prouder of us for doing what he trained us to do. And that's really, when the story unfolds you'll see that's really all we did.
"We did everything that we were trained to do. And we have the captain; ultimately everybody you see here before you today has the Captain, Captain Phillips, to thank for their lives and their freedom."
But despite the US Navy's victory this time, experts say the threat posed by Somali pirates is as strong as ever.
John Burnett is an expert on international piracy, and he told Radio National's breakfast program that poverty drives many young Somali men to become pirates.
"These kids, the young men, if they're lucky will earn probably even less than $30 a month. So when they become a pirate they will earn something in the hundreds of thousands and that's a hell of a lot more profitable and less risky than pulling up a half empty fishing net," he said.
And the toll extracted by the pirates is increasing.
There's the cost of ships out of commission as well as ransoms to free crews and extra security measures. Add to that rising insurance premiums and higher labour costs for crews travelling in the area.
And there are extra costs for shipping companies which are choosing to avoid the area.
Llew Russell is the chief executive of Shipping Australia, the peak body for Australia's shipping industry.
"We're most concerned about the increase in piracy that's been occurring particularly over the last few weeks," he said. "With the winter monsoons declining over there we're finding a big upsurge in piracy and we feel it will encourage more people to go around the Cape, which is much longer, consumes more fuel and is more costly."
Mr Russell says going to or from Europe around South Africa adds at least 10 to 14 days to an ocean voyage.
He says many shipping companies are being forced to pay for specialised equipment to thwart attacks.
"A ship thwarted an attack a week or so ago by putting barbed wire right around it. I mean, they're trailing nets out behind the ship to foul the propellers of their little speed boats and so on that they use. All these techniques are being used to try to thwart the attacks," he said.
Mr Russell says if nothing is done it's the world's economy which will suffer.
"I think it'll impact on world trade because you not only have Somalia, you have other countries looking at what Somalia's doing," he said.
"So I can only see the situation getting worse. The only way you can tackle this sort of piracy is on land.
"In fact one has to look at building up the economies of northern Somalia and helping those people in ways other than encouraging piracy. That I think is the longer term answer
By Michael Edwards
Posted Wed Apr 15, 2009 8:24am AEST Updated Wed Apr 15, 2009 9:14am AEST ABC News
Maritime experts say shipping will only get slower and more expensive unless something is done to stop the threat of Somali pirates.
As details continue to emerge about the dramatic rescue of the American ship Captain Richard Phillips, more questions are being asked about the impact of piracy on shipping routes.
This comes as Somali pirates raised the stakes this morning, seizing two more ships and throwing down the gauntlet to tough-talking US President Barack Obama.
To get an idea of the piracy situation off the horn of Africa, look at ABC News Online's interactive map.
The problem has already sent insurance rates up and more ships are opting to take the slower route around South Africa instead of through the Suez Canal.
Australia's shipping industry says it will have an adverse effect on the world economy as trade slows down.
Friends and colleagues of Captain Richard Phillips are still dealing with his dramatic rescue at the hands of US Navy Seal marksmen.
Shane Murphy is Captain Phillips's chief mate onboard the Maersk Alabama. I just got off the phone with our captain, Richard Phillips for the first time, and it was an extremely emotional experience for all of us to actually hear his voice and hear the condition he was in," he said.
"He is absolutely elated and he couldn't be prouder of us for doing what he trained us to do. And that's really, when the story unfolds you'll see that's really all we did.
"We did everything that we were trained to do. And we have the captain; ultimately everybody you see here before you today has the Captain, Captain Phillips, to thank for their lives and their freedom."
But despite the US Navy's victory this time, experts say the threat posed by Somali pirates is as strong as ever.
John Burnett is an expert on international piracy, and he told Radio National's breakfast program that poverty drives many young Somali men to become pirates.
"These kids, the young men, if they're lucky will earn probably even less than $30 a month. So when they become a pirate they will earn something in the hundreds of thousands and that's a hell of a lot more profitable and less risky than pulling up a half empty fishing net," he said.
And the toll extracted by the pirates is increasing.
There's the cost of ships out of commission as well as ransoms to free crews and extra security measures. Add to that rising insurance premiums and higher labour costs for crews travelling in the area.
And there are extra costs for shipping companies which are choosing to avoid the area.
Llew Russell is the chief executive of Shipping Australia, the peak body for Australia's shipping industry.
"We're most concerned about the increase in piracy that's been occurring particularly over the last few weeks," he said. "With the winter monsoons declining over there we're finding a big upsurge in piracy and we feel it will encourage more people to go around the Cape, which is much longer, consumes more fuel and is more costly."
Mr Russell says going to or from Europe around South Africa adds at least 10 to 14 days to an ocean voyage.
He says many shipping companies are being forced to pay for specialised equipment to thwart attacks.
"A ship thwarted an attack a week or so ago by putting barbed wire right around it. I mean, they're trailing nets out behind the ship to foul the propellers of their little speed boats and so on that they use. All these techniques are being used to try to thwart the attacks," he said.
Mr Russell says if nothing is done it's the world's economy which will suffer.
"I think it'll impact on world trade because you not only have Somalia, you have other countries looking at what Somalia's doing," he said.
"So I can only see the situation getting worse. The only way you can tackle this sort of piracy is on land.
"In fact one has to look at building up the economies of northern Somalia and helping those people in ways other than encouraging piracy. That I think is the longer term answer
Friday, May 08, 2009
WTO's Lamy says Doha round relaunch awaits U.S.
WASHINGTON (Reuters) - A renewed push to finish long-running world trade talks cannot begin until the United States is ready to engage, the head of the World Trade Organization said on Friday.
Completing the Doha round of talks would help pull the global economy out of recession by unleashing new trade flows and "help restore confidence at this moment of crisis," Pascal Lamy, the WTO's director general, said at the Peterson Institute for International Economics in Washington.
"I cannot restart a political process without the U.S. being ready," Lamy said. That opportunity could come at a number of international meetings over the next several months.
The Obama administration's position on the Doha round of trade talks "is emerging little by little" and is positive but the process has been slow, Lamy said. if (There is much goodwill among negotiators in Geneva for the new U.S. administration but patience is not infinite, he said.
The talks, officially known as the Doha Development Agenda, were launched more than seven years ago in the capital of Qatar with the goal of helping poor countries prosper through trade.
Many developing countries, who make up of the majority of the WTO's 153 members, are anxious for the talks to conclude.
They stand to benefit if rich countries make long-awaited farm subsidy cuts and open their manufacturing and agricultural markets to more imports from developing nations, Lamy said.
U.S. farm, manufacturing and services groups strongly object to a set of proposed texts for concluding the round put forward in December. They have urged the Obama administration to refuse to restart talks on the basis of those texts.
U.S. Trade Representative Ron Kirk said on Thursday the United States remains committed to a successful end of the round but needs a better idea of what it will "get" in exchange for what it gives up. Kirk said the United States would soon set out new ideas for moving the talks forward.
LAMY TO MEET KIRK
Lamy, in Washington for the spring meetings of the International Monetary Fund and the World Bank, is expected to meet Kirk.
Lamy argued that U.S. business already would benefit more from the round than it publicly admits.
If the United States wants developing countries to clarify what new market openings they will make, it would help for Washington to identify which goods it will exclude from a pledge rich countries made in 2005 not to impose duties or quota on imports from the poorest countries, Lamy said.
Developing countries fear the United States will use its insistence on excluding 3 percent of products from the duty-free, quota-free pledge to maintain barriers in areas of greatest interest to them, such as textiles and sugar.
Sounding a warning against protectionism, Lamy said he has hung a picture in his office of the two U.S. lawmakers who authored the 1930 Smoot-Hawley tariff act often blamed for deepening and prolonging the Great Depression by triggering tit-for-tat retaliation around the globe.
But that trauma led to the rules-based world trading system that has provided "more than 60 years of economic stability," Lamy said.
(Editing by John O'Callaghan)
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