Daily Briefing May 21 2020
Free to read: Floating storage peak exposes tankers to post-crisis demand | Evergreen and Yang Ming in talks over state-aid access | Larger fleets do not always yield savings, says survey
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What to watch | Analysis | Opinion | Markets | In other news
What to watch
Volumes of crude being held in floating storage have likely peaked as inventories draw down on improving oil demand, exposing the global tanker fleet to the post-pandemic landscape of fewer cargoes as producers cut output to stabilise prices.
Evergreen and Yang Ming have held talks with government officials about accessing a $T30bn ($1bn) state-aid package aimed at supporting the domestic shipping sector during the coronavirus outbreak.
The widely held belief that consolidation, and scale generally, inevitably delivers lower costs for shipping companies has been called into question by a new survey of 150 management companies.
Analysis
The mental health and wellbeing of seafarers has always been an issue, but the coronavirus outbreak has exacerbated anxiety and worry that should not be ignored, according to those in the industry.
The cancellation of large numbers of containership voyages has had a dramatic impact on both freight rates and the availability of services, with shippers now listing the availability of cargo space as their main concern.
Steady coal flows out of Indonesia have boosted supramax bulker earnings in the Pacific basin, outperforming the rest of the market and providing support to the Baltic Dry Index.
Opinion
The odds are getting higher that one of Asia’s leading tanker operators may end up being taken apart — vessel by vessel — in an effort to optimise debt recovery for lenders, writes Hwee Hwee Tan.
Weekly briefing: Container results show early pandemic toll; tanker rates pressure.
Markets
Frontline says faster-than-anticipated inventory draws may pull down the tanker market in the short term, but the long-term fundamentals are robust.
In other news
China-based Landbridge Group has garnered financing for a newbuilding very large crude carrier in a sale-and-leaseback agreement with John Fridriksen’s SFL Corp, according to a company release.
The UK opposition Labour Party is urging government intervention to stop ferry operators replacing British seafarers with cheaper foreign crews.
Malaysia’s liquefied natural gas supplies will be exported in International Organisation for Standardisation tanks, known as ISO tanks, to China for distribution to remote villages.
Wilhelmsen Ship Management is crowdfunding to support maritime charity Mission to Seafarers in addressing the hardships faced by affected seafarers during the coronavirus outbreak.
US east coast ports are celebrating the arrival this week of the 2014-built, 13,154 teu Hyundai Hope, a visible sign that their decades-long investments have paid off to make the region ready for the big ships now traversing the expanded Panama Canal.
Checks will be made on animals and foodstuffs entering Northern Ireland from the rest of the UK following the expiry of the Brexit transition period at the end of this year, the government has confirmed.