Daily Briefing June 25 2021
Free to read: Leaked EU fuel plans confirm industry fears and rile green lobby | Singapore yard merger talks begin in earnest | Rising shipyard costs push up hull insurance rates, says Gard | EU’s shipping emissions approach threatens its success
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
A leaked draft of the EU’s multi-pronged plan to force shipping towards greener fuel choices confirms the worst fears of industry and green NGOs alike — namely that the rules will create a compliance minefield, cost billions of euros and ultimately push shipowners towards fuel choices that will lock fossil fuels into the supply chain for decades.
Keppel Corp and Sembcorp Marine have entered into a non-binding agreement and kicked off exclusive negotiations over the long-speculated merger of their yard operations.
Hull insurance rates rose around 9% in the first half of the year and may jump a further 5%-10% by the end of 2021, according to the chief underwriting officer at the world’s biggest hull insurer.
Analysis
Hapag-Lloyd’s success at raising a second green loan is proof that the wider financial market does not reject the potential liquefied natural gas may hold in cutting ship emissions.
The downstream impacts of the supply chain disruptions affecting the containerised freight sector can have significant impacts of a wide range of companies far removed from shipping.
Mediterranean Shipping Co chief executive Søren Toft has defended the box sector’s performance during the pandemic and called for greater infrastructure investment to help prevent similar logistics logjams in the future.
Opinion
The fragmented approach to ship emissions and fuels policies from the European Commission risks not only generating ineffective policies that undermine its ultimate goals, but also creating unnecessary distractions and inserting added complications to already difficult negotiations, writes Anastassios Adamopoulos.
Markets
Bulker owners feel confident that the market should retain its strength over the next two to three years.
Yangzijiang Shipbuilding has unveiled another batch of new orders at what seems to be a tipping point in a strong market recovery.
In other news
Globus Maritime, a dry bulk carrier owner, said it has secured new charter employment for its 2007-built, 53,627 dwt River Globe (IMO: 9464168) at a gross daily rate of $29,500.
The UK government says it is ‘not able to provide formal support’ for a declaration to raise global awareness of the abuse of human rights at sea.
Foreign seafarers can be vaccinated in the UK, the government has confirmed.