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http://www.platts.com/latest-news/sh...riers-27427709



Singapore to cut port dues for dry bulk carriers by 10% from April 15

Singapore (Platts)--5 Apr 2016 538 am EDT/938 GMT

Singapore said Tuesday it will cut port dues by 10% for bulk carriers from April 15 as part of a short term relief package aimed at helping the sector grapple with the current challenging economic conditions.

The 10% concession will be applied to stays of up to five days, the Maritime and Port Authority of Singapore said in a statement.

The MPA noted the Baltic Dry Index had hit a record low earlier this year after the dry bulk sector had grappled with low freight rates throughout 2015. "China was a key factor behind the sector's poor performance as its declining demand for steel and rapid adoption of clean energy has affected the iron ore and coal trades respectively," MPA said in the statement.

As a result, fleet growth was marginal in 2015 as deliveries were deferred, cancelled or converted, it added.

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The concessions for dry bulk carriers will be in place for one year and follow a 10% concession on port dues announced in January for container vessels calling at the port for up to five days.

The MPA last November also extended the period that incremental port dues were applied at a rate of $0.50/day/GT on offshore support vessels from 90 days to 180 days. This concession is valid for one year.

Taken together, the concessions are expected to translate to $13.3 million in savings for shipping companies over one year. Bulk carriers account for about 30% of Singapore's total vessel arrival tonnage, with the port receiving 16,560 bulk carriers with a total tonnage of around 775 million GT in 2015.

--Esther Ng, [email protected]
--Edited by Wendy Wells, [email protected]

Singapore said Tuesday it will cut port dues by 10% for bulk carriers from April 15 as part of a short term relief package aimed at helping the sector grapple with the current challenging economic conditions.

The 10% concession will be applied to stays of up to five days, the Maritime and Port Authority of Singapore said in a statement.

The MPA noted the Baltic Dry Index had hit a record low earlier this year after the dry bulk sector had grappled with low freight rates throughout 2015. "China was a key factor behind the sector's poor performance as its declining demand for steel and rapid adoption of clean energy has affected the iron ore and coal trades respectively," MPA said in the statement.

As a result, fleet growth was marginal in 2015 as deliveries were deferred, cancelled or converted, it added.

Article Continues below...


Request a free trial of:Dry Freight Wire

Do you want to manage price risks and improve profitability on every deal or shape your own analysis, strategic planning and forecasting of the dry freight market? Use the request a free trial link and we will send you 5 issues of Dry Freight Wire free for your preview. This will help you gain complete visibility of the latest developments in the dry freight market and stay ahead of the game.

Request a free trialMore Information

The concessions for dry bulk carriers will be in place for one year and follow a 10% concession on port dues announced in January for container vessels calling at the port for up to five days.

The MPA last November also extended the period that incremental port dues were applied at a rate of $0.50/day/GT on offshore support vessels from 90 days to 180 days. This concession is valid for one year.

Taken together, the concessions are expected to translate to $13.3 million in savings for shipping companies over one year. Bulk carriers account for about 30% of Singapore's total vessel arrival tonnage, with the port receiving 16,560 bulk carriers with a total tonnage of around 775 million GT in 2015.

--Esther Ng, [email protected]


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