Daily Briefing July 15 2021
Free to read: EU proposes a tax on all shipping emissions and to limit polluting fuels | Maritime’s absence from UK decarbonisation plan criticised by trade body | Cyprus emerges as sanctions workaround for Venezuela oil shipments
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
The European Commission has unveiled its plan to tax almost 70% of emissions from voyages to the European Economic Area, It also wants ships to burn less greenhouse gas-intensive fuels, some bunkers to be taxed for the first time and ports to provide more LNG and onshore power supply.
Maritime UK has described the UK's decarbonisation plans as lacking detail, commitments or funding on how to make shipping greener.
Until last year, Greek shipowners accounted for 80% of crude lifted from Venezuela, undeterred by US sanctions. Then, six vessel-owning companies connected with four prominent owners were briefly blacklisted for breaching US sanctions, forcing all Greek-owned vessels involved in these trades to rethink and recalibrate business plans.
Analysis
The containership orderbook could rise as high as 24% of the existing fleet if a spate of unconfirmed orders go to completion, threatening an ‘overheated’ market and eventual oversupply.
Rising ship recycling rates are approaching a “mythical” record as breakers compete aggressively for what limited scrap tonnage is on offer.
A large proportion of the bulk carrier fleet will not comply with the efficiency rules that kick in in 2023, according to design and engineering consultancy Houlder.
Opinion
Shipping is a people business. It is an activity in which humans make use of whatever technology is available in pursuit of profit. It is not a technology business in which people are an after-thought, writes Richard Clayton.
In British marine insurance — which serves much of the world fleet, of course — the traditional division of labour has always been clear.
Markets
Civil unrest in South Africa is beginning to affect the country’s shipping terminals and container lines are warning customers to expect delays.
Danaos said it has clinched a deal to acquire six 5,466 teu widebeam container vessels for an en bloc price of $260m.
Korea Shipbuilding & Offshore Engineering, a leading South Korean shipbuilder, has won orders for four large liquefied natural gas carriers for Won911bn ($793m) in total.
In other news
Ocean Network Express said its MOL Charisma, which ran aground shortly after departing the Vietnamese port of Vung Tau last week, has been taken out of service for repairs.
Two major Chinese state-owned port groups have strengthened their ties through a cross-holding agreement amid Beijing’s continued push for consolidation in the sector.
George Dalacouras, founder of the Dalex Shipping company and a former lawmaker in the Greek and European parliaments, has died at 82.
Stowaways can cost shipping companies more than $300,000 each to disembark, according to one security consultant.
Strong consumer demand continues to drive high throughput figures at leading US east coast container ports, with record double-digit numbers announced from New York to Savannah.
Most companies do not have a full understanding of how UK freeports will operate and be governed, according to a survey published several months after eight winning bids were announced for the new economic zones.