Daily Briefing January 13 2021
Free to read: Tanker earnings downgraded for 2021 to half of cash breakeven levels | Marine insurance expert warns of very expensive year for owners | Deal with Pistiolis heralds VLCC debut for TOP Ships
Good morning. Here’s our quick view of everything you need to know today.
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Forecasts show 2021 spot earnings for the global fleet of crude and product tankers will average rates that would be around half the levels needed to break-even as oil tanker demand growth contracts by 6.4%.
Shipping companies can expect not only double-digit rate rises for both hull and protection and indemnity insurance, but also tenfold increases in premiums for non-marine corporate cover as well, according to the head of marine at major broker Aon.
TOP Ships, the Nasdaq-listed tanker owner, has increased its interest in large crude oil carriers in a complex part-exchange deal with chief executive Evangelos Pistiolis.
Ditlev Blicher, who became Maersk’s managing director in Asia Pacific last August, says his company has ‘completely’ changed its approach to contract negotiations with cargo owners this year by pursuing long-term partnership rather than cashing in on a sizzling freight market.
The coronavirus pandemic has pushed mental health higher up the agenda. However, longer term developments in shipping have made social interaction harder, and that has increased stress.
The coronavirus backdrop knocked trillions of dollars off global GDP last year and resulted in economic momentum shifting away from western countries towards Asia. Technological developments kept the world moving, but an effective rollout of vaccines is needed in multiple countries for growth to return in 2021.
Owners pinning hopes on a dry bulk rate recovery in 2021 will have to adjust their outlook based not just on China’s continued strength of demand, but also on the scale of recovery in the rest of the world.
Global natural gas production dropped 3.6% to 3.9trn cu m a year in 2020 as low oil and gas prices led to lower exploration and production, according to the estimates of Rystad Energy.
Spot rates for the liquefied natural gas shipping are holding at record high levels as the lack of free vessels is limiting the number of deals.
A global initiative to resolve the ongoing crew-change crisis has secured support from one of the world’s largest tanker companies.
Korea Shipbuilding & Offshore Engineering continues to build up its order momentum at the start of the year with a Won200bn ($182m) order for 300,000 dwt very large crude carriers for a European company.
Union Maritime has expanded its fledging presence in the dry bulk market, acquiring two middle-aged capesizes against mainly Greek competition.
A Hapag-Lloyd boxship has been boarded illegally off Cartagena, Colombia, in a rare security incident for the region.
Scorpio Bulkers, the US-listed owner moving away from the dry bulk sector to the offshore wind market, has announced the sale of another ultramax.
Nagashiki Shipping, owner of the grounded and broken Wakashio bulker that hit a coral reef off Mauritius in July last year, is expecting works for the removal of the stern section to be completed in April.