Daily Briefing March 29 2021
Free to read: Expect spike in rates and months of disruption, warn container lines as ships re-route away from Suez | The Lloyd’s List Podcast: Shipping’s super-sized safety secret | Why shipping will adapt to the Suez snarl ups
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What to watch | Analysis | Opinion | Markets | In other news
What to watch
Most major container lines are now diverting ships round Cape of Good Hope and warning that supply chain disruption could take months to unravel, even after the Suez Canal is reopened. Repeated attempts to re-float the grounded Ever Given over the weekend have failed as salvors struggle with rock under the ship’s bow. Meanwhile, Maersk has warned of higher short-term spot rates and told customers to expect months of disruption.
The Ever Given grounding will disrupt a supply chain already stretched by the pandemic, and have cost implications for ships in the tailback. But we have been through worse before.
Rates on Evergreen’s online booking platform have shot up to over $13,000 per box for one of its vessels leaving Yantian on April 21 and destined for New York via the Panama Canal, more than double the current price level.
The increasing size of vessels is leading to a significant accumulation of risk, potentially offsetting improvements in safety and risk management, and shipping is not being proactive in manging that risk, writes Richard Meade.
Analysis
Asia is refusing to following in Europe’s footsteps as the latter tries to completely choke off LNG projects from the investment dollars they need to be successful.
Congestion at major Brazilian ports has left more than 100 bulkers waiting. The delays have added to the strength seen in dry bulk freight rates.
The week in charts: Suez drama | Boxship bonanza | Zim’s stellar performance
Opinion
Lloyd’s List Podcast: Shipping’s super-sized safety secret.
Wilhelmsen’s chief executive Thomas Wilhelmsen tells Lloyd’s List that competition is expected to grow significantly in the offshore wind sector, but Norway is especially well positioned in this sector.
Markets
The fall-out from the closure of the Suez Canal has been gradually spreading into the dry bulk market, potentially boosting panamax and supramax freight rates amid tightening vessel availability.
Navios Maritime Partners has unveiled the acquisition of six new dry bulk carriers as it moves to close its merger with a subsidiary.
In other news
Evergreen, the Taiwanese carrier, has confirmed a newbuilding project for 20 15,000 teu boxships, with Samsung Heavy Industries as the builder.
UK Chamber of Shipping chief executive Bob Sanguinetti is stepping down to take up a role in Scotland.
The US government has said Yemen’s decision to partially lift an oil embargo on its key port of Hudaydah would “help to mitigate the fuel shortage” facing the country.
Sales of secondhand bulkers are set for a record year, according to shipping association BIMCO.