Daily Briefing November 2 2020
Free to read: Transatlantic tanker earnings plunge | Container demand remains strong | China warning over pirate attacks | Latest Maritime Markets Outlook
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An early start to reverse-arbitrage winter diesel flows to the US east coast from Europe has failed to arrest declining transatlantic earnings for medium range tankers, which have plunged nearly 40% this month.
Record-breaking increases in capacity on the main lane trades have not put a dent in container spot freight rates, as demand continues to remain strong, particularly on the Asia-Europe trade. The comprehensive Shanghai Containerised Freight Index rose by another 4% in the past week.
China’s transport ministry has set up ‘an ad hoc workgroup’ to lay down precautionary measures for ships and seafarers passing through areas with high piracy risks.
In the latest edition of the Lloyd’s List Maritime Markets Outlook, the analysts look at the short term outlook for the tankers market and how China’s economic recovery is affecting the dry bulk sector.
On the latest Lloyd’s List Podcast, the team are joined by Container Trades Statistics chief executive Peter Webber to discuss the latest container trade volume data, which points to an unlikely peak season as the industry recovers from the initial impact of coronavirus.
With just over two months to go until the end of the Brexit transition period, the UK freight sector is preparing for major changes in how trades occur with the EU. But there are concerns that some businesses have not yet done enough to prepare for the new trading environment.
Carriers have been quick to respond to the manufacturing shift from South China to Southeast Asia, rolling out a host of new services to Vietnam, Thailand, Cambodia and other hubs.
The route Nave Andromeda took prior to arriving in UK waters, LNG carrier rates and the growth in Greek shipping activity all feature in the latest week in charts.
Nave Andromeda’s master did the right thing to send out a mayday call to deal with threats from stowaways that imperilled the product tanker’s safe navigation. Whether the men were exercising ‘control’ of the ship by the use or threat of force, and what this constitutes, will be central to any prosecution, writes Stephen Askins.
If the maritime industry is looking for an explicit policy on decarbonisation from either US presidential candidate, it will not find much. Donald Trump clings to the oil era, while Joe Biden hopes “to lock in enforceable international agreements to reduce emissions in global shipping”, writes Eric Watkins.
Although supply chain disruptions and port closures vexed the dry bulk segment, those issues have since dissipated, and in terms of prices, many key commodities have outperformed other goods.
Britannia Club members are facing similar mid to high single-digit percentage point premium rises as members of other clubs, despite the marine mutual’s eschewal of general increases.
Digital technology has become too focused on the shiny toys that do amazing things, a Seatrade Maritime webinar heard this week. Instead, suppliers must enable companies to work on their competitive advantage.
A year after quitting Maersk, Søren Toft is expected to formally take over as chief executive of MSC’s container shipping and logistics operations in a month’s time.
The product tanker Nave Andromeda has left the UK, with Lloyd’s List Intelligence tracking data showing it is heading for Antwerp. Meanwhile, the tanker’s seven Nigerian stowaways remain detained under Border Force powers despite being given bail on criminal matters.
The US Department of the Treasury’s Office of Foreign Assets Control further broadened its sanctions on Iran, designating eight entities for their involvement in the sale and purchase of Iranian petrochemical products brokered by Triliance Petrochemical.
Decarbonisation is increasing shipping’s risk of stranded assets but rewards are also possible for companies willing to act early, a Danish Maritime Day webinar was told.
Scrubber investments will continue to grow, albeit at a slower pace, even as the fuel oil price spread has narrowed more than expected amid the pandemic-led oil market disruption.
William O'Neil, the second-longest serving secretary-general in the history of the International Maritime Organization, has died aged 93.
Cosco Shipping has confirmed orders for seven 23,000 teu containerships worth $1.1bn in total. Orient Overseas International Ltd signed the shipbuilding agreements on Friday with two Chinese yards.
Ocean Network Express says its net profits in July-September surged more than fivefold year on year, as a result of ‘a return to steady cargo demand’. Although overall liftings were lower compared with the previous corresponding period, headhaul utilisation levels were very high.
Oslo-listed Hafnia has signed an agreement with UK-based Arq to use coal waste transformed into a micro-fine hydrocarbon powder for low-sulphur bunker blending. This is seen as an option to help achieve carbon reduction goals.
Dry bulk carrier owner Bulkseas Marine Management has emerged as the buyer of an 11-year-old Japanese-owned kamsarmax.