Marine

Global Warming Impacts Russia

News Analysis: Global Warming impacts Russia in various ways. Consider the Positive: The Russians adaptation to this change may provide them with Financial Opportunities Galore in this “Land of Plenty”. To wit: Shrinking Ice Levels in the Arctic Ocean allow for a greater number of Vessels and Faster Ship Travel from Europe to Asia and vice versa; Warmer waters should bring additional species of fish into the area for harvesting; Surface Mining, for smaller operations in particular, may be enhanced by the lack of ice in many areas; New methods in Agronomy might allow for Short Season Farming where Perma-frost is abating; Investors might also consider investing in “River Craft” Boat Yards. Siberian Transportation by this method will become more advantageous; due to both lack of ice in certain areas as well as higher water levels thereon.

Investors, who might consider Siberian Opportunities must take a point of view that: “The Drinking Glass is ‘Half-Full’; rather than ‘Half-Empty'”. That Concept, in conjunction with “Thinking Outside The Box”, Due Diligence, Adequate Capitalization, and Tenacity will lead them to Financial Success in Russia. The World Belongs to the Aggressive.

Reference: http://barentsobserver.com/en/nature/2013/11/russia-most-affected-global-warming-12-11

Aluminum and the “Law of Supply and Demand”

News Analysis:  The “Law of Supply and Demand” [LSD] remains unassailable even regarding Non-Ferrous Aluminum.  The Bauxite Mining-Aluminum Smelting capacities of countries has far exceeded demand for the Metal. Since the ‘Supply’ Portion of ‘LSD’ has not been effectively curtailed, logic would dictate the ‘Demand’ Side be addressed. 

The light weight of Aluminum, in general, and more specifically the ‘Hybrid’ Aluminum-Lithium [which is even lighter] have been making steady in-roads in aircraft fabrication. As Metallurgists invent even lighter Aluminum Alloys the products should increase in Aircraft fabrication.

Ship Construction is another important market on the “Demand Side’ of Aluminum. Primarily “Plate Stock” in designation [rather than typical ‘Sheet Stock’ for aircraft’ fabrication] much greater tonnage can be ‘digested’ through its use in this industry. Since Saline-Induced Corrosion is substantially mitigated by using Non-Ferrous Aluminum, its acceptability should be enhanced.

Additionally, its ease of being machined and/or formed may reduce ‘Touch Labor” as compared to Steel.

Demand for Aluminum is a viable proposition for the Automobile Industry. Sheet stock is lighter in weight than steel [which has been the mainstay of automobile fabrication].  By merely adding or substituting totally, body components with Aluminum, better fuel saving is realized by drivers. Great tonnage of current Aluminum Stockpiles could readily be absorbed by this Industry.

Railroad “Box-Cars” made from Aluminum would consume vast amounts of the metal. The cars, then as-made, would be lighter and allow a Locomotive to pull more of them than heavier Steel cars. 

If the Government and Aluminum Supply Holders emphasize these other Demand uses, “Equilibrium” can be achieved. These “Demand” Industries are the largest potential consumers of the Metal. To resolve the current “Supply” Problem quickly, they should not be ignored.

Reference: http://www.bjreview.com.cn/business/txt/2013-11/11/content_577151.htm

A ‘Food Chain’ Commences in the Middle of the Atlantic Ocean

News Analysis: A Food Chain of Micro-Nutrient Iron, enjoyed by Phyto-Plankton has been discovered emanating from Atlantic Ocean Thermal Vents. Manganese is also present in the plumes. The Phyto-Plankton are consumed by fish and Whales [going up the Food Chain]. This Mid-Atlantic Ridge discovery bodes very well for wildlife in the area.

Reference: http://tinyurl.com/km45548

Ceylon Private Investors Establish Ocean-Going Trawler Vessel Yard

News Analysis: Ceylon Private Investors have provided funds for the building of a Trawler Vessel Yard.

Once completed, Ceylonese Fishermen will be purchasing Ocean-worthy vessels for their Productivity. The fact that the Government of Ceylon’s enthusiasm for this undertaking was unshakeable, bodes well.  Governments with Foresight, Intrepid Investors, and Monies make for a good combination.

Reference: http://tinyurl.com/kecf6bm

Mariel, Cuba, Readies Its Deep Draft Harbor for Greater Commerce

News Analysis: Mariel, Cuba, readies its Deep Draft Harbor for arrival of larger ships. It  is merely 35 kilometers [22 miles] west of  Havana’s International Airport. As such, Global Customers will find it convenient to engage in discussions, in Mariel, with the Cubans.

The Archaic U.S. Embargo should be immediately trashed as a Worthless Anachronism of past Myopic “Cold War” Thinking. Beyond hurting the Cuban People, it created an “Ogre Image” of America. Such maintained “Juvenile” Behavior by the United States has harmed, and is presently harming,  relations with other countries in both Central and South America [and elsewhere as well].

The Administration in Washington, D.C. should realize that International Trade leads to increased wealth for Countries. America needs jobs NOW for its citizens as well as more inflow of funds from increased commerce. Negative rhetoric creates no jobs; Willing trade, amongst nations, does.

There is no “Insignificant Country” when it comes to importance of Global Commerce. A Large Beach is made from many Small Grains of Sand.

Reference: http://tinyurl.com/kwoq43n

Norway Sovereign Fund, World’s Largest at Over $800 Billion, Gets Tapped Lightly

News Analysis: Norway Sovereign Fund has quickly grown so the percentage taken from it, only 2.9%, is conservative. Since up to four percent can be withdrawn in a year, the government has acted with fiscal restraint. The $23,000,000,000.00 to be withdrawn will help the Norwegian Population with any possible economic slowdown.

The Norwegian government is to be commended with the Economically Judicious Policy of Non-Profligate Spending. Some other Governments, on other continents, favor Extravagant Spending. Perhaps they naively think merely printing Great Sums of Money is easy and solves short term needs. They have no thought, nor care,  of the long-term damage such gross wastefulness has on a Country’s Economy.

Reference: http://www.arabnews.com/news/474506

Seafloor Mining in Papua New Guinea Area is a Metals “Horn of Plenty”

News Analysis:  Seafloor Mining in Papua New Guinea Area is  rich in Copper, Gold, Silver, and Zinc Deposits. Since existing Robotic Mining Equipment is available, extraction of Seabed Deposits should be easily attainable. Once extracted, and sent to a recovery ship, the metals can then be sent to China for Smelting.

The extraction of Metallic Nodules in the oceans of the world is quite pervasive. Even so, locating rich deposits in shallower waters is economically most favored by Investors.

Reference: http://www.onepng.com/2013/10/seafloor-mining-robots-and-equipment.html

Netherlands: Does Their “Dutch Optimism” Precede Their Wealth; Or, Wealth Precede Their “Dutch Optimism”?

News Analysis:  The International-Oriented Dutch have a tradition of World Exploration accompanied by Financial Acumen second-to-none. While others are  busy in attempting to gain publicity for all of their business ventures, the Dutch are Stealthily conducting business negotiations. Additionally, their years of experience in dealing with people in other countries has taught them the benefits of being circumspect. The asset of being adroit in business comes from years of similar international exposure.

The Dutch Optimism is,in part,based upon the ability to correctly analyze people and situations [thereby gaining a confidence which morphs into cheerfulness].

The Dutch Wealth has accumulated over the years by both the aforementioned ‘abilities’ as well as knowing “Good Money Management”. Common-sense dictates that: “One does not spend more than one earns”. Application of this simple Credo applies also to business transactions of all kinds. Seldom is heard of the Dutch paying artificially exorbitant prices for goods or services; they know better. Through the years, application of this behavior has allowed the Dutch to prosper; be it in: Flower Production And Sales, International Finance, Maritime Shipping, or Petroleum Exploration and Production. The 92,000 Millionaire Households are a Testament to this.

Perhaps the wisdom of ECC 10:19 has been endorsed by them.

Any People who have learned to “Hold back the Ocean” have the necessary Intellect and Tenacity to succeed wherever they choose.

Reference: http://www.dutchnews.nl/news/archives/2013/11/the_netherlands_92000_milliona.php

Russian Atomic Ice Breaker will be World’s Largest

News Analysis: Russian Atomic Icebreaker is currently being constructed in St. Petersburg at Baltiysky Shipyard. The mammoth 173 meters [567 feet] by 34 meters [111 feet] beam will have Sixty Mega-Watts of Power. This Craft will be able to easily traverse the Arctic Ocean under any currently anticipated conditions as designed.

The investment, of over One Billion Euros, by Atomflot shows good Financial Judgement  as it relates to the Economic Future of Marine Traffic in the Arctic Ocean. One can hope other Arctic Abutting Countries have the prescience to build similar vessels so Maritime Craft can quickly, and safely cross the inhospitable Arctic Environment. Trans-Arctic Shipments save days at sea.

Reference: http://tinyurl.com/lco8src

Middle East Oil Tanker Shipping Rates are on an Upturn

News Analysis: The quick turn around in Tanker Shipping Rates bodes  well for this industry. For far too long, oversupply of tankers, in conjunction with decreased demand, almost sank the historically, very cyclical business. Hopefully, older vessels [15+ years of age] will be scrapped, encouraged by adequate rates, if enduring over the months. New buildings, when undertaken, will also help yards around the world [who have seen a dearth of Oil Tanker  customers recently]. This symbiosis of Industry [Shipping] to Industry [Ship Building] may eventually cascade into better times for both. 

Perhaps Non-Traditional Funding Sources will learn about the rate changes and explore Investment opportunities in Ship Construction.  

A parallel growth model is in the construction  of Liquified Natural Gas [LNG] Vessels. In fact, innovators such as ship owner, John Fredriksen, has been leading the followers where it comes to foresight  in types of New Buildings needed in General Shipping and Oil Exploration/Production Vessels.

Reference: http://tinyurl.com/lnv3fpe