Daily Briefing August 28 2019
Venezuela-China oil flows fail to stem plunging tanker demand | Carrier results demonstrate benefits of consolidation | Carriers failing to address trade imbalance | Swedish Club first half combined ratio hits 108%
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Since the US government sanctioned national oil company PDVSA, shipments of oil, which comprises some 95% of Venezuelan revenue, have collapsed to levels not seen since oil strikes in 2002 and 2003.
Container lines have mostly managed to present their investors with satisfactory results this year, despite the various economic and geo-political headwinds they face.
Despite significant cutbacks on capacity, including unprecedented blank sailings over the peak season, utilisation levels on the key Asia-Northern Europe route will remain weak in the third quarters. Supply additions are expected to continue to outweigh demand growth into 2020, suggesting carriers will struggle to lift freight rates anytime soon.
The Swedish Club has seen its combined ratio for the first half of 2019 slip out to 108%, up from 96% in the corresponding period last year.
Frontline Management, the Norway-based tanker company owned by shipping tycoon John Fredriksen, said it is well-positioned to capture an expected upturn in the market.
The port of Cork has doubled the size of its customs facilities in preparation for the likelihood of the United Kingdom leaving the European Union on World Trade Organisation terms at the end of October.
Danish bunker supplier Monjasa has bought five tankers for bunker operations in core markets in the Arabian Gulf, West Africa and the Panama Canal.
Citigroup has promoted Michael Parker to chairman of its shipping and logistics division, with Shreyas Chipalkatty stepping up into the veteran ship financier’s current role of global head of shipping.
Grimaldi Group, the Naples-based ro-ro, ferry and car carrier operator, has become the first Italian company to sign up to the Sustainable Actions for Innovative and Low-impact Shipping charter launched in July by French shipowners’ association Armateurs de France.