Daily Briefing February 18 2020
Free to read: EU shipowners nervously eye growing Chinese ownership | Tanker at centre of Venezuela power struggle over crude cargo sails | Carrier results will give insight to coronavirus impact | DP World delists
Good morning. Here’s our quick view of everything you need to know today.
The Lloyd’s List Daily Briefing is brought to you by the Lloyd’s List News Desk.
What to watch | Analysis | Opinion | Markets | In other news
What to watch
The European Union should seriously examine the increasing ownership of the EU fleet from China that is happening through sale and leaseback deals, according to European Community Shipowners’ Associations secretary-general Martin Dorsman.
A tanker at the centre of Venezuela’s power struggle over crude cargo has finally set sail having discharged its crude cargo at Jose offshore terminal. The 13-month saga is a telling example of how Venezuelan crude exports have plunged amid political and economic turmoil.
Analysis
World boxship fleet update: Blanked sailings and delays to scrubber retrofits have led to an increase in the fleet of idle containerships as seasonal factors combine with the outbreak of coronavirus to have an impact on fleet deployment figures. Figures from Lloyd’s List Intelligence from the end of January show that the amount of idle capacity stood at 326 vessels comprising 757,478 teu at the end of January, representing 3.4% of the global fleet. This was already up from 3.2% at the beginning of January, as the normal seasonal reduction in demand began to see idle numbers rise.
Opinion
With leading container lines Maersk and Hapag-Lloyd providing 2019 results this week, all eyes will be on their outlooks for the year ahead. Reduced volumes out of China in the first quarter will likely lower earnings estimates for the 2020, but an increase in volume could follow the reopening of China’s factories, writes James Baker.
Markets
Demand for tankers is expected to outpace the growth in crude seaborne trade in 2020. Shipbroker Braemar ACM forecasts rising longer-haul voyages to Asia to offset coronavirus-led falls in demand growth.
Container shipping carriers are being hit by weakened spot rates, despite the efforts made to pare back capacity amid the effects on world trade of the coronavirus.
Carriers are imposing reefer surcharges into China ports. Hapag-Lloyd, ONE, CMA CGM and its APL unit have slapped surcharges on reefer containers going to Shanghai, Xingang and Ningbo. Other carriers have also warned of disruptions to box routings and discharge schedules.
In other news
DP World and its majority owner Port and Free Zones World offered on Monday to pay $16.75 per share, a 29% premium on the closing market price of $13 on Sunday, to acquire the 19.55% of DP World listed on the exchange.
American Hellenic Hull Insurance Company has increased its fleet by 16% over the past year. The Cyprus and Greece-based insurer said that its covered fleet stood at 2,636 vessels in January, which it said was a record start to a year so far in terms of premium.
Green activist groups have taken to the streets outside the International Maritime Organization to protest the use and carriage of heavy fuel oil in the Arctic today as the IMO’s pollution subcommittee meets to discuss the issue.
The Indian government has approved a long-awaited reform bill designed to overhaul and modernise the country’s public sector ports to improve their efficiency and competitiveness.