Daily Briefing May 29 2020
Free to read: Tankers in floating storage hit new high | Decarbonisation is a job for now, not later | Flexible capacity can aid car carriers
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
Floating storage has soared to a fresh peak, even as oil demand rebounds with unsold Venezuelan and US crude cargoes at anchor off South Africa and Singapore adding to market disruption.
Today’s generation of graduate trainees has the task of ensuring shipping meets IMO 2050 emissions targets. And they had better step up to it, because some of us will be judging them from the comfort of our nursing homes. Decarbonisation is a job for now, not later, writes David Osler.
Flexible vessel supply will help the car carrier sector survive the coronavirus pandemic, the chief executive of Scandinavia’s Wallenius Wilhelmsen has told Lloyd’s List.
Analysis
Weekly briefing: Container lines boost finances, ‘caution’ over US sanctions guidance — Boxship sector looks to take ‘decisive steps’ in face of challenging business environment, China-Australia trade tensions a concern for dry bulk shipping.
Opinion
The US Office of Foreign Assets Control has grown into an aggressive foreign policy tool under President Trump’s leadership, prompting fear that is now driving sanctions compliance, writes Michelle Wiese Bockmann.
Markets
Navig8 Topco Holdings, an Oslo-listed subsidiary of privately owned tanker operator Navig8 Group, has acquired 14% of outstanding shares in Awilco LNG, triggering speculation the company is to further expand its energy shipping empire.
Even at current levels of reduced bunker consumption and a narrower-than-forecast fuel spread between very low sulphur fuel and heavy fuel oil, Star Bulk is projecting its investment in one of the shipping industry’s largest scrubber investment programmes should pay back in little more than three years.
Product tankers are undertaking longer-than-anticipated voyages as charterers are forced to seek new buyers for unwanted cargoes, propping up demand and adding to tonne miles. But the drivers behind such deviations have probably peaked, leaving only floating storage insulating the clean sector from a further earnings slump.
In other news
RightShip, the risk management and environmental assessment business, today unveiled its Safety Score. The initiative, which replaces the predictive Risk Rating and the Qi platform, will go live at the end of September.
Asian shipowners have called on governments of the world to designate seafarers as key workers to assure their safe and timely repatriation amid the coronavirus outbreak.
China Merchants Energy Shipping has firmed up orders for four multipurpose vessels at an affiliated yard, as the country’s owners increase their efforts to support domestic state-owned builders.
Shipowners group the International Chamber of Shipping has put out new medical guidance after reports of seafarers being denied care at ports.
A Cosco Shipping very large crude carrier was reported to have been stranded off South Africa, pending tug assistance.
DP World has announced that it has completed the early stages of integration with TradeLens, the blockchain-based container logistics platform jointly developed by AP Moller-Maersk and IBM.
A US federal court in San Francisco has ruled against a decision by the City of Oakland to ban the transportation of coal through the city, calling it a breach of contract and opening the way for exports to begin.
Consultant Wood Mackenzie expects China’s oil demand to reach 13m barrels per day in this year's second quarter, a 16.3% increase over the first quarter of the year, with overall oil demand rising to 13.6m barrels per day for the second half of 2020, up 2.3% compared to the second half of 2019.