Daily Briefing February 27 2020
Free to read: Sanctioned Iranian fuel oil shipping from Iraq | Shipping struggles with exposure to coronavirus | Box shipping will face long-lasting effects from outbreak
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What to watch | Analysis | Opinion | Markets | In other news
What to watch
Deceptive shipping practices from offshore loadings from the Iraqi port Khor al-Zubair reveal hidden cargoes of sanctioned Iranian fuel oil are being shipped to Malaysia and Fujairah.
The impact of coronavirus is rippling through the shipping industry chain, writes Cichen Shen.
The coronavirus outbreak will continue to have a huge impact on container shipping even after Chinese factories reopen as the supply chain, particularly in Asia, struggles to come back up to speed.
More than a dozen vessels being built in China run the risk of many months of delays, one analyst says. Chinese yards are building up to 16 out of 28 FPSOs globally with nine due to be delivered this and next year.
Analysis
Container-related vessel calls to Shanghai and Yangshan have increased sharply in the past week, indicating a return to normal volumes. But the number of idle ships has also reached new highs as the impact of coronavirus continues to hit carriers.
Germany remains the fifth-largest shipowning nation, with a 4.9% share of the world fleet, down 0.6 percentage points on last year, according to statistics released yesterday by the German shipowners’ association.
Opinion
With the rise of digital technology and training in cutting-edge skills, a career in maritime should prove more appealing to young candidates, writes Richard Clayton.
Markets
The dry bulk market will virtually see no respite from the steady erosion of freight rates this year as supply growth is forecast to exceed the increase in demand, according to BIMCO.
Norway-based Skuld secured a 4.6% net increase in mutual P&I gross tonnage by the renewal deadline, with its book now standing at 95.3m tonnes, according to a statement from the marine mutual.
In other news
Flex LNG, an Oslo-based owner and operator of liquefied natural gas carriers, says the short-term outlook for the market is demanding amid a warm winter in the northern hemisphere and the coronavirus outbreak.
Genco Shipping & Trading, which has been in the process of offloading 15 older ships, says it will also sell 10 handysizes as part of the plan to renew its fleet and exit from the panamax segment.
Bunker broker KPI Bridge Oil acquires Glencore subsidiary OceanConnect Marine for an undisclosed sum, and will rebrand it as KPI OceanConnect once regulatory approval is achieved.
Maritime union Nautilus International has welcomed the UK’s new shipping minister with a list of policy demands to boost employment in the sector.
US-based developer Venture Global has secured a long-term offtake contract from Electricité de France for the supply of 1m tonnes of liquefied natural gas annually from the Plaquemines export project, which is set to be built in the state of Louisiana.
Cheniere Energy, the leading US exporter of liquefied natural gas, says it does not expect “significant or prolonged curtailment” of American LNG production even if low global gas prices cause some customers to cancel cargoes.
US carrier Matson has said the coronavirus outbreak could adversely impact its finances by $15m this year, although the damage could be offset by gains from other areas of operation.