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Event Calendar

January 2010

January 12
"Gazing into the Crystal Ball—
what can we expect for 2010"
NYMAR seminar and reception

NYMAR Officers
Peter Shaerf, Chair
Lawrence Rutkowski, Vice-Chair
Keith W. Heard, Secretary
Kathleen C. Haines, Treasurer
Frederic London
David Martowski
Michael J. Mitchell
Clay E.C. Maitland
Simon Rose
John Stratakis
Stefanie Kasselakis


NYMAR
For more information about NYMAR, please visit our web site: www.nymar.org

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November 16 , 2009 www.nymar.org
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Chairman's Commentary

Peter Schaerf, Nymar ChairmanAs the end of the year approaches we begin looking forward even more earnestly. 2010 is likely to be as full of surprises as 2008 and 2009 and we can only hope they are positive ones.
[read more]

Save the Date: NYMAR/NYSE Event

Mark your calendars for NYMAR's seminar and reception hosted by the NYSE Euronext.
[read more]

NYMAR Interviews Richard M. Larrabee.

Richard Larrabee oversees the management and operation of the major marine terminal facilities within the Port of New York and New Jersey, the largest port on the East Coast of North America...
[read more]

Dahlman Rose Indices

Dahlman Rose & Co has agreed to provide NYMAR readers with its Dry Bulk Shipping and Tanker Shipping Indices.
[read more]

Monthly News

Exxon, Chevron may raise capital budget for next year, analysts say
[read more]

Chemoil crashes
[read more]

Somali pirates hijacking success rate surges to 50%
[read more]

Hanjin's losses widen in third quarter
[read more]

Read more Monthly News stories (continued)
[read more]

Financial Performance Charts
[Read More]

Taste of NYC | Events & Entertainment

Upcoming events & entertainment in the Big Apple.
[Read More]

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Chairman's Commentary

Peter Schaerf, Nymar ChairmanAs the end of the year approaches we begin looking forward even more earnestly. 2010 is likely to be as full of surprises as 2008 and 2009 and we can only hope they are positive ones.

Our industry featured just this past week on the front page of the New York Times business section but yet again the story was one dealing with industry problems- This time the severe crisis among the commercial shipping banks. This story coupled with a picture of a barge washed up on the Virginia beaches because of a hurricane is enough to cause a heart attack on those who try to tell the strong positive stories of our business.

Shipping - perhaps like any industry - tends to rise to the top of the national agenda when there is a crisis. An oil spill,  a pirate raid, a bank crisis. That should not be the case. I was particularly proud when my 13 year old son came home the other week saying he had proudly defended a statistic I had long ago given him , that 94% of the world's goods moved by sea. A statistic his social studies teacher seemed to doubt!

With shipping yet again catching something of a capital market revival - three "maritime" high yield issues have been completed since we last went to press - you can expect that NYMAR will continue to champion the value of our industry not just within the New York cluster but also in a much broader context.

We will be out there... watch for us!

Save the Date: NYMAR/NYSE Event January 12th

nyse dla piper logos
Mark your calendars for NYMAR's seminar and reception hosted by the NYSE Euronext. Join your industry peers at 4:00 for "Gazing into the Crystal Ball—what can we expect for 2010" followed by a reception on the trading floor co-sponsored by DLA Piper.

We are looking for only one more sponsor for this event. Please contact Carleen Lyden-Kluss if you are interested info@nymar.org.

NYMAR Interviews Richard M. Larrabee.

LarabeeDIRECTOR, PORT COMMERCE DEPARTMENT,
THE PORT AUTHORITY OF NEW YORK & NEW JERSEY

Richard Larrabee oversees the management and operation of the major marine terminal facilities within the Port of New York and New Jersey, the largest port on the East Coast of North America, which handled 88 million tons of cargo in 2008, and approximately 5.3 million teu's (twenty-foot equivalent units). Mr. Larrabee manages a multi-billion dollar port redevelopment program that includes reinvestment in marine terminal facilities, deepening harbor channels and berths, improving inter modal connections and protecting sensitive marine environments. The redevelopment program is positioning the Port of New York and New Jersey to accommodate future growth that is projected to double over the next decade and could quadruple by 2040.

NYMAR: As 2009 is drawing to a close, how did projections for the port match against reality?
Larrabee: Our mid 2008 projections were considerably more optimistic than reality. We were looking at flat to up a few percent. However as we got into the later part of 2008, we started adjusting downward.
NYMAR: In what area did the port experience the greatest impact from the economic downturn?
Larrabee: Vehicle imports/exports, our second largest business and in which we lead the USA, are down approximately 40%.
NYMAR: What do you anticipate for 2010 in trade levels and other changes?
Larrabee: larabee_2We anticipate modest gains in 2010 vs. 2009, however it all depends on the consumer's willingness to open up their pockets, and that is a major change.   We anticipate that for 2010 and future years, consumers will not be as willing to spend as they have been in the past. Other changes we will see are an even greater stress on cost and efficiency by all links in the supply chain with each link squeezing the ones up stream for lower costs and greater efficiency/productivity.
NYMAR: Challenging economic times tend to fray relationships. Has the port been successful in maintaining a smooth operating environment?
Larrabee: What you say is true but we have also seen, in many cases, a greater interest in cooperating on larger over arching issues by some of our major partners in the port. Our tenants compete with each other fiercely and at times we have normal business disputes but many of them realize that some of the issues facing us all are best addressed jointly rather than independently. As an example, our container terminal operators have gotten together under an FMC agreement to look at issues such the environment, improved efficiency and productivity.
NYMAR: Has the PONYNJ been the beneficiary of stimulus package money? If so, how is that being utilized?
Larrabee: We at the Port have not been a direct beneficiary of recent stimulus package money; however we have gotten nearly $10million of grants from the EPA for air quality initiatives.
NYMAR: What are the greatest challenges facing the port in the next decade?
Larrabee: If you had asked me that 2 years ago, I would have said providing sufficient capacity in short/medium/long term to meet demand.  Now I must say that the greatest challenges facing us will be how to make the port more efficient, productive and less costly.
NYMAR: How can organizations like NYMAR and the New York maritime cluster in general work to support the port and its continued prosperity?
Larrabee: We need public support in many areas that impact our business - not only directly on port but also in regard to off-port activities. For instance, the location of warehousing and distribution facilities in the region is very important for our businesses - not only because they attract cargo through our port but also because they provide jobs and economic benefits to the region. However there are often lengthy permitting processes or other regulatory hurdles that must be overcome in order to establish those facilities. This often gives a very business-unfriendly image of our region. We need everyone's support to counter that image and work to make our region more business-friendly.
NYMAR: Thank you, Rick.

Dahlman Rose Indices

Dahlman Rose & Co index data is calculated by Standard and Poor's and disseminated on a real-time basis by the Chicago Mercantile Exchange, representing publicly available indices that track the movements of U.S. listed Marine Transport companies.

http://www.dahlmanrose.com/indices


Monthly News

Exxon, Chevron may raise capital budget for next year, analysts say

A better economic outlook and expectations of a sustained increase in commodity prices could allow ExxonMobil and Chevron to raise capital expenditures next year and proceed with large investments in key ventures as the companies seek to increase output, experts said. But the boosts would conflict with ConocoPhillips' move to cut its capital budget for next year by 12%, analysts added. - The Wall Street Journal/Dow Jones Newswires (11/12)

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Chemoil crashes

Singapore bunker supplier and tanker group Chemoil Energy has suffered a big drop in nine-month profits as shipping activity shrank worldwide. The listed owner said net earnings were $7.37m to 30 September, compared to $34.73m last year. - TradeWinds

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Somali pirates hijacking success rate surges to 50%

SOMALI pirate attacks have reached an alarming 50% success rate in hijacking vessels since the end of the monsoon season, according to the International Maritime Bureau. An alert sent to shipping by the IMB's piracy reporting center said that within a few weeks it had received reports of 17 attacks with eight successful hijackings in the seas off the coast of Somalia and around Seychelles and Madagascar. - Lloyd's List

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Hanjin's losses widen in third quarter

LOSSES widened for Hanjin Shipping in the third quarter, with both its container and dry bulk businesses falling into the red. Hanjin reported a net loss of $338m in the third quarter, a slight increase over its second-quarter loss of $325m. Revenues in the third quarter were $1.4bn, up 10.7% on the second quarter. - Lloyd's List

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KG Ship Fund Market Has ‘Completely Crashed,' E.R. Capital Says

E.R. Capital Holding Gmbh & Cie KG, the largest operator of German closed-end shipping funds, said plunging freight rates and industry losses will likely cause a second straight sector-wide drop in investments next year. "The market has completely crashed this year," Chairman Erck Rickmers said yesterday in an interview at a conference in Qingdao, China. ‘'Investors don't like uncertainties and there are too many uncertainties." - Bloomberg

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The End of Winter Storm

The Second Circuit's decision today, October 16, 2009, in The Shipping Corporation of India Ltd. v. Jaldhi Overseas Pte. Ltd. overruled the Court's 2002 Winter Storm Shipping v. TPL decision on the attachability of electronic fund transfers ("EFTs") "with the consent of all the judges of the Court in active service."  The Court ruled that Winter Storm was "erroneously decided and therefore should no longer be binding precedent in our Circuit." - Blank Rome, LLP
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Ambrose Vessel Project, Off Long I, NY.

WWII vessel torpedoed and sunk off Long I that is bleeding oil.  Report has it that a diver
came up covered with on back on Oct. 15. SS Coimbra is suspect vessel name. 

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2009 World Maritime Day Parallel Event Hailed as Success

On October 16th, the international maritime community gathered at Chelsea Piers in New York City to observe the 2009 World Maritime Day Parallel Event.  This year's theme was "Climate Change", and the leading experts in that field presented their views and best practices on mitigating shipping's impact on the climate during the day's conference.

This NYMAR-sponsored event also included an exhibition, ship tours of "green" ships, a student design competition and science fair and a reception.

The day ended with the NAMEPA (North American Marine Environment Protection Association) Annual Award Dinner.  This year's recipient of the NAMEPA Marine Environment Protection Award was the United States Coast Guard.

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Emery W. Harper (1936-2009)

e_harperOn Monday, October 26th, our dear friend and NYMAR member Emery Harper passed following complications from surgery, leaving his partner Louis (Luigi) Terruso, his daughter Caroline (Carrie), and the maritime world with a void that will be difficult to fill.  Where do you look for someone with Emery's wit, intelligence and compassion for others?  Under what title do you find an unceasing commitment to excellence in the maritime and legal fields?

Emery practiced law for 45 years, representing the full spectrum of clients with major interests in the shipping industry.  He founded the Maritime Finance Committee of the US Maritime Law Association, was Chair of the Admiralty Committee of the Association of the Bar of the City of New York and the International Section of the American Bar Association.  He served in an advisory role to UNCTAD and IMO in their joint review of the national laws governing maritime liens and mortgages and played an active role in the formulation of the International Convention adopted in 1993.  Mr. Harper played a major role in the reformation of the US Ship Mortgage Act and the US "Jones Act" governing participation by non-US citizens in the coastwise trade.

Together with Clay Maitland and Marlene Daniels, Emery formed the Admiralty/Finance Forum which for many years functioned effectively as an arena for broad-based discussion of issues of concern to industry members.  "Emery sought to foster the dialog leading to constructive change", observed his long-time friend and colleague, International Registries Inc. Managing Partner Clay Maitland.  "His attention to considered and well-founded reasoning made him professionally successful.  His gracious demeanor and warmth made him a friend to all.  He is irreplaceable in our maritime sphere."

Emery was a 1958 cum laude graduate of Amherst College and received his law degree from Yale Law School in 1961. He was a partner in the New York law firm of Lord, Day & Lord for 23 years, prior to establishing Harper Consultants, Inc.  One of his clients from his Lord, Day & Lord days, Randee Day who is now a Managing Director of Seabury Group, recounts the following:  "Emery Harper was the lead partner at Lord, Day & Lord, handling JPMorgan's admiralty legal work throughout the eighties.  During much of that decade the industry was in crisis, so much of our work together was in restructuring.  Emery and my team worked on several major bankruptcies and large, complicated restructurings. I remember him as being one of the most thoughtful lawyers I have worked with --never rushing or panicking during a crisis but a good, analytical thinker with a profound knowledge of the law. Emery always persevered to find a solution and was creative in his approach. I have known Emery professionally for over thirty years and my professional respect for him never lessened, but what grew enormously was our friendship. I will greatly miss him, as will his many friends in the maritime community."

Emery was an active member of the Connecticut Maritime Association and NYMAR (New York Maritime), as well as the Union Club, the Pilgrims in the United States, the Huguenot Society and the St. Nicholas Society.

Plans for a Memorial service will be announced shortly.

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Galveston: Ellis Island of the South

By Carol Rust, Contributing Writer
(Updated: 11.03.09)

galvestonEurope churned in political and social turmoil in the late 1800s, and Kaiser Wilhelm II's government was in big trouble. The German emperor's policies had made enemies abroad, and support at home was deeply shaken.

Stone mason Wilhelm Frederik Muenster did most of his work for the Kaiser and could see financial ruin in his future if Wilhelm's government collapsed, so he boarded the SS Frankfurt in Bremen, Germany, on Oct. 30, 1902. He arrived in Galveston a few weeks later in the frenzy of the city's rebuilding efforts after the Great Storm of 1900. There was plenty of work for a stone mason.

Muenster's wife followed a few months later on the same ship, coaxing extra potatoes from the German cooks to help feed her five children. Her oldest, a 6-year-old girl, was the mother of 79-year-old Pete Rygaard of Dickinson, who is the 60-year husband of Mary Lou Blair Rygaard. Her family came to Galveston in 1911 from Alsace-Lorraine, also on the SS Frankfurt.

"My grandparents wanted to come here for the opportunities and a better quality of life," Rygaard said. "Things were bad in Germany and they'd heard – I guess from other immigrants – that there was a better life here."

He and Mary Lou are two of the many hundreds of thousands of descendants of immigrants – from Europe, Mexico, South and Central America and Asia – whose first glimpse of America was the flat, bustling port city of Galveston – called "the Ellis Island of the South."

Galveston's role as the landing spot and processing point of so many new citizens has almost been lost to history, but visitors to Moody Gardens will soon be able to glimpse into the past and learn about the lives of arriving immigrants through its new exhibit: "Forgotten Gateway: Coming to America through Galveston Island." The exhibit opens Nov. 21.

"This exhibit is the first of its kind to explore Galveston's legacy as a port of entry on a national scale," said John Zendt, Moody Gardens general manager. "We are very excited to have it here on the island and bring to light the little-known yet rich era of Galveston's history and just how important it was to the growth of Texas and the American Midwest."

Indeed, many hundreds of thousands of immigrants were processed through Galveston, beginning in 1845, long before Ellis Island opened as a federal immigrant processing center in 1890.

The exhibit puts a face on immigration and focuses on the common ordeals the aspiring Americans contended with: the dangerous journey, establishing a life in a new land with a strange language, maneuvering the bureaucracy of registration, sometimes spending time in the quarantine station, and facing the discrimination of the day.

The multi-faceted exhibit includes personal stories, interactive kiosks, informative media pieces and more than 200 original artifacts and documents, set near the waters that welcomed so many from so many countries.

The Rygaards' forebearers paid about $15 each for steerage space and were packed into the holds of cargo ships that steamed into Galveston Bay with regularity.

Galveston was not only a check-in station for immigrants but a way station to the entire country. From 1860 to 1900, thousands of miles of railroad tracks were laid from the island to the western and Midwestern United States, and many immigrants found jobs with Houston & Pacific Railroad out of Galveston, establishing homes and lives at points along the rail routes west and north.

The Rygaards' ancestors settled around Galveston and westward through Texas. Part of Mary Lou's family lives in San Antonio. Both genealogists, the Rygaards have traced their family roots back hundreds of years in Europe, but they remain fascinated with their journey to America.

Mary Lou has a copy of the ship's manifest from the trip her grandfather took in 1910, and she took it to San Antonio a few years back to show to her cousin.

"As he was looking at it, he said, ‘Well, I'll be,'" Mary Lou recalls. "He had found his wife's grandfather's name on the list right under the name of his own grandfather."
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Financial Performance Charts

Shipping Company Performance Chart (NYSE)
(source: NYSE)

nyse chart 11-11-2009

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Taste of NYC | Upcoming Events and Entertainment

New York City hosts many different Christmas shows and events throughout the Christmas season. From the Radio City Christmas Spectacular to Messiah sings at New York City Churches, these Christmas shows and events are sure to entertain you and fill you with holiday spirit.

  • Holiday Train Show at the NYBG
    New York Botanical Garden - November 23, 2008 - January 11, 2009
    The Buzz
    The Holiday Train Show at the New York Botanical Garden is an annual holiday tradition. Featuring model trains and over 140 replicas of New York City landmarks, the Holiday Train Show is a wonderful experience for children and adults. Click here for more info.

  • Radio City Christmas Spectacular
    Radio City Music Hall – now through December 30, 2009
    The Buzz
    The Radio City Christmas Spectacular features the Rockettes and is sure to amaze and entertain the whole family. Radio City Christmas Spectacular tickets are $42 - $250 each, though discounts are available around the web. Performances through December 30, 2009. Click here for more info.

  • Rockefeller Center Christmas Tree
    Rockefeller Center – December 2, 2009 – January 7, 2010
    The Buzz
    The 2009 Rockefeller Center Christmas tree will be illuminated for the first time this holiday season on Wednesday, December 2, 2009, with performances from 7:00pm-9:00pm. The two-hour long program features various celebrity appearances and a star-studded musical lineup. The tree will be lit daily from 5:30 A.M.-11:30 P.M.; all day on Christmas (24 hours); and from 5:30 A.M.-9 P.M. on New Year's Eve. The world's most famous Tree will be on display until January 7th, 2010.

  • The Nutcracker: New York City Ballet
    Lincoln Center – now through January 2, 2010
    The Buzz
    The New York City Ballet continues its annual tradition with George Balanchine's "The Nutcracker." Tickets are $20 - $96, depending on performance and seats. Performances through January 2, 2010. Click here for more info.

  • The New York Pops: A Holiday Celebration
    Carnegie Hall – December 18, 2009
    The Buzz
    Want to include Carnegie Hall in your holiday plans? Check out the New York Pops as it celebrates its 26th season and the holidays with Sandi Patty! After 30 years before the public and five Grammy awards, Sandi Patty has become one of the best-known Christian artists, with a powerful appeal that speaks to many audiences. Here she brings her deep devotion and wide experience of life to music of two faiths, as she celebrates Christmas and Hanukkah. Click here for more info.

In addition do not forget the shopping ...always special with special sales in place as we approach Thanksgiving and always leave time for ice skating either in Central Park or at Rockefeller Center.

NYC Web sites

New York State Travel & Tourism

To speak with a travel counselor, call during regular business hours (Eastern Standard Time) at 800/CALL-NYS (U.S., territories, possessions and Canada) or 518/474-4116 (all other areas). http://www.iloveny.com/home.aspx

New York City Travel & Tourism (NY City & Company)
212-484-1222

NYC 311 - City of New York directory assistance covering events, attractions and other citywide information

  • Dial 311 in Manhattan (NYC), Staten Island, Bronx, Queens and Long Island.
  • Dial 212-639-9675 outside of Manhattan (NYC), Staten Island, Bronx, Queens and Long Island. This is a toll call.
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Web Master: Christine Olick
New York Maritime Inc. /NYMAR
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Email: info@nymar.org

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