Daily Briefing April 22 2021
Free to read: US green shipping ambitions hint at emissions target battle | Shipping gets another warning for sluggish decarbonisation move | Shipping demands market-based measures debate at IMO
Good morning. Here’s our quick view of everything you need to know today.
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What to watch | Analysis | Markets | In other news
What to watch
Pledges for net zero emissions by 2050 have become the norm. But the US commitment for absolute zero emissions from international shipping by 2050 is a step beyond that.
One big concern raised by a recent Marine Money session in Singapore is that the IMO could be forced to introduce an abrupt and high carbon tax. This will lead to a rise in demand for vessel retrofitting to cut the intensity of carbon consumption.
Shipping industry associations have told governments to start discussing potential market-based measures for the sector as soon as possible.
Analysis
Shippers have been warned not to expect a return to the freight rates of the past even when the high volume demand in the market tails off.
Container equipment shortages across the main trade lanes look set to continue, despite efforts by carriers to reposition and bring additional capacity into the market.
The London Interbank Offered Rate could be replaced by a ‘synthetic Libor’ yardstick after it is axed completely, minimising disruption to legacy contracts including the vast majority of extant shipping loans.
Markets
Freight rates for capesize bulkers in various trades have risen to their highest levels since last October, with continued cargo flows from Brazilian and Australian miners supporting the recent rally in the iron ore price.
With container lines seeking to deploy any available capacity they can get their hands on, tonnage providers are witnessing a surge in demand in the boxship charter market that is pushing rates to new highs.
Bunkering companies are finding credit harder to come by amid fluctuating markets, green pressure and fallout from past fraud scandals.
In other news
The International Transport Workers’ Federation has demanded that around two dozen Indian seafarers still on board Ever Given, the vessel whose grounding caused a six-day shutdown of the Suez Canal last month, be allowed to leave the ship.
BW Group and Ocean Network Express are among seven maritime groups agreeing to fund a decarbonisation centre in Singapore, the Maritime and Port Authority said.
The Baltic Dry Index has hit its highest level in more than 10 years, at 2,710 points at the close on Wednesday. That is the highest since it hit 2,784 points on October 27, 2010.
The total number of marine casualties has declined by almost a fifth, according to preliminary findings by the European Maritime Safety Agency.
Shell said it would pilot the first use of a ship powered by a hydrogen fuel cell in Singapore.
US port workers in Washington state have welcomed legislation banning the purchase of “fully automated” container cargo handling equipment.
Avance Gas, an owner of very large gas carriers, has increased its newbuilding order to six dual-fuel vessels being built at the Daewoo Shipbuilding & Marine Engineering yard in South Korea.
Enesel, the Lemos brothers-controlled shipping company, has signed contracts with Shanghai Waigaoqiao Shipbuilding (SWS) for up to three long range two tankers.