Daily Briefing July 5 2021
Free to read: Enjoy the market fizz but beware the hangover | K+N’s Otto Schacht predicts new era of sustained profitability for container lines | Shipping exempt from global minimum corporate tax rate | Decarbonisation regulations come to a head
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The market leaders have already made their moves, but in the rush that followed, the orderbook has expanded and secondhand inflation has taken hold. Be warned: the bigger the party, the bigger the hangover.
Amid complaints from cargo interests about lack of ship capacity, Otto Schacht, executive vice-president sea logistics at Kuehne+Nagel, says lines are doing whatever they can to provide enough space, by chartering ships and buying more container equipment, but nevertheless demand continues to outstrip supply, with the inevitable impact on transport costs.
Shipping has been left out of the Organisation for Economic Co-operation and Development proposals for a global minimum corporation tax rate of no less than 15%.
The next six months of shipping’s decarbonisation regulations are set to be among the most consequential ones for the long-term trajectory of the industry.
The Lloyd’s List Half-year outlook 2021 takes the temperature of the core maritime trades and offers a view on the market dynamics during the coming six to 12 months. Joining editor Richard Meade to consider the core box, bulk and tanker trade trends are: markets editor Michelle Wiese Bockmann, containers editor James Baker and senior dry bulk reporter Nidaa Bakhsh.
No tanker market recovery is expected until October, when extra seaborne cargoes to meet winter gasoil requirements and fewer transport and quarantine restrictions are expected to boost a moribund market.
Lending from traditional banks may be down but the industry is learning to live with a wider array of funding sources than in the past, even as pressure from green objectives shapes up as yet another challenge.
The Lloyd’s List Podcast: Why container shipping will never be the same again.
Shipping will need to continue to look for fuel efficiency gains even as it moves to net-zero carbon fuels because of the low energy density of the fuels that will likely be used.
Dry bulk operators have made significant steps in meeting low-carbon shipping demands through embracing slow steaming.
Seaborne trade is expected to grow 4.2% in 2021, according to Lloyd’s List Intelligence data.
The chronic backlog of ships and containers at the San Pedro Bay ports of Los Angeles and Long Beach has been created by a variety of factors outside the control of marine terminals, according to a report commissioned by the Pacific Maritime Association.
Costamare, the containership owner, has continued its re-entry into the dry bulk market, confirming it is now up to 28 bulkers.
The management of Pioneer Marine, a Greece-based bulker owner, has decided to proceed with a buyout.
Five cargo owners are backing a Norwegian joint venture set up to develop ammonia-fuelled bulk carriers.
Shanghai International Port Group, the main operator of the world’s busiest port, has been boosted by a robust container shipping market.
Star Bulk Carriers said it has launched two at-the-market equity offerings that could fund further vessels for what is already the largest dry bulk fleet publicly listed in the US.
A small replica of the Statue of Liberty has arrived in New York from France in celebration of French-US relations.