Daily Briefing June 2 2020
Free to read: Container vessel orders fall to lowest in a decade | Carriers take tentative steps to increase capacity | Panama to fine and de-flag ships for AIS tampering | Qatar signs $19bn deal for LNG 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
Orders for container carriers in 2020 will fall to the lowest number for 11 years because of the drop in trade activity and economic uncertainty, according to Lloyd’s List Intelligence.
As the number of developed economies coming out of lockdown and removing mitigation efforts increases, container carriers are having to walk a fine line between rates and capacity as demand resumes.
Panama has revealed that it will fine ships in its fleet up to $10,000 or even revoke their registration if they deliberately turn off or interfere with their signal transponders, in an attempt to mitigate sanctions evasions.
Qatar Petroleum has reserved slots with three South Korean shipbuilders for more than 100 liquefied natural gas carriers until 2027 in a deal worth more than QR70bn ($19.2bn).
Analysis
Although a sensitive subject — particularly at the San Pedro Bay ports, California — the health crisis has only accelerated a desire to move beyond what we have already seen in automation.
Shipowners have reported they expect 2020 to be a difficult year, with losses in turnover and reductions in seafarer and onshore jobs. The appetite to spend on technologies appears to be shrinking. But does that really affect the prospects of technological innovation in maritime?
The coronavirus pandemic could lead developing and emerging economies into messy debt restructurings that could drive the global economy “into another, possibly much deeper, recession”, according to a newly released report.
Opinion
Lloyd’s List Podcast: Decarbonisation dilemma — an extended debate on shipping’s decarbonisation prospects, taking in everything from state support, future fuel options, fake zeros and the overwhelming need for clarity and standard definitions. We are joined by Peter Boyd from Yale University, Matthieu de Tugny from Bureau Veritas, Tristan Smith from University College London’s Energy Institute and Adrian Tolson from Blue Insight.
Markets
While blank sailings on mainline trades hit international volumes, they were partly made up for by increased domestic cargo traffic during the peak of the outbreak. The impact in the second half of the year, however, will depend on how quickly European and North American economies pick up.
China is planning futures contracts of very low sulphur fuel oils to global investors for the first time, as the large maritime nation seeks to grab a slice of the bunker supply market.
In other news
India’s government has allowed operators and shipmanagers to send and bring back Indian seafarers on chartered flights to facilitate crew changes on board ships at foreign ports.
Guandong province, China’s southern economic powerhouse, is planning to convert a big chunk of its river-going vessels to run on liquefied natural gas, according to a press release.
UK energy infrastructure group InfraStrata has agreed terms to acquire Meridian Holdings Co, owner of a proposed 5m to 6m tonnes a year floating storage and regasification unit project off northwest England.
A council comprising senior maritime executives has been set up to promote Singapore as a destination for dispute resolution through arbitration.
The first purpose-built tanker to supply liquefied natural gas bunker out of Singapore is on track for delivery before the end of the year.
A liquefied natural gas carrier has completed an eastbound voyage along the northern sea route two months earlier than usual, as Russian shipping and gas interests hope for prolonged transiting seasons in the Arctic Sea.