Daily Briefing February 17 2020
Free to read: Chinese owners and leasing banks dominate scrubber investment | PIL transpacific exit raises vessel deployment questions | Sellers challenged to find destinations for LNG cargoes hit by coronavirus
Good morning. Here’s our quick view of everything you need to know today.
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What to watch | Analysis | Opinion | Markets | In other news
What to watch
China Cosco Shipping has emerged as the biggest backer of scrubber technology, with 113 vessels totalling 17.9m dwt fitted, analysis shows.
Pacific International Lines is to withdraw from the transpacific market, where it runs a series of large-sized boxships.
The coronavirus outbreak may force diversion of about 20 LNG cargoes from February to April, Poten & Partners estimates. This exposes affected sellers to potential losses from resales of cargoes in an oversupplied market.
Analysis
China’s slowdown in response to the coronavirus outbreak is likely to reduce the demand for liquefied petroleum gas by 3% this year. This will cut the demand for LPG shipments, upsetting freight rates.
The week in charts: Last year’s US-China trade war put the brakes on growth in the box market, while US seaborne crude oil exports hit a record high in December.
Opinion
The Lloyds List Podcast: The European Parliament wants shipping put under the EU’s emissions cap and trade system and it’s not clear the industry has yet clocked the full implications of this latest political salvo. Meanwhile, in the UK, the government plan to create up to 10 freeports to ‘turbocharge’ trade in the wake of Britain leaving the European Union is raising political questions. We’re joined by the British Ports Association and the UK Major Ports Group to dissect what it means for the industry.
Markets
While the current dry bulk picture looks bleak, there are a few bright spots, according to shipbroker Howe Robinson. It expects better market conditions in the second half of the year.
In other news
This year’s Posidonia 2020 exhibition in Greece is set to be the largest in the 50-year history of the biennial maritime event, organisers have said.
The International Chamber of Shipping has urged the Panama Canal Authority to delay planned toll increases aimed at limiting traffic through the canal, claiming costs to shippers could rise by 30%.
The Baltic Capesize Index turning negative at the end of January is largely seen as a technical anomaly based on the way the index is calculated. Nevertheless it is counter-intuitive to have a headline figure in negative territory.