Daily Briefing March 1 2022
Credit chaos and emergency due diligence as shipping continues to shun Russia | Tanker rates at high and volatile levels on Ukraine impact | Maersk considers suspending shipments in Russia as sanctions escalate
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
Shipping companies continue to cut ties with Russian counterparties as compliance departments flag risk and credit is frozen.
The UK has told its ports to block any Russian-linked vessels. “The maritime sector is fundamental to international trade and we must play our part in restricting Russia's economic interests and holding the Russian government to account,” Transport Secretary Grant Shapps said in a letter to all UK ports.
While an easing of the Russia-Ukraine conflict could settle down the tanker and oil markets, an escalation could result in more instability and sustain pricey tanker rates.
The growing threat of sanctions against Russian entities is adding yet more potential disruption to containerised supply chains, although at this stage their impact remains uncertain.
Bulker owners are trying to avoid the Black Sea area as the conflict rages between Russia and Ukraine.
Analysis
The human element is just as important as technology in beating the opportunists, hackers and state-backed cyber attackers. Senior managers must build a secure culture and maintain vigilance.
It should be straightforward to come up with insurance products that cover shipowners and others in the maritime industry in the event of a cyberattack; in practice, it is harder than you would think.
High-profile incidents of cyber crime within the maritime sector raised the profile of cyber security and led the IMO to publish its cyber-security recommendations.
Markets
The number of containerships queuing for berths at Los Angeles and Long Beach has fallen sharply since its peak earlier this year, but there are warnings that the situation could soon reverse and return to levels on par with its earlier high point.
The week in charts: Limited vessel movement in Kerch Strait, LNG demand set to double over long term, Russia supplied nearly 260m tonnes of oil in 2021.
Week in newbuildings: Oldendorff doubles kamsarmax order.
In other news
The US Federal Maritime Commission and the Department of Justice have reaffirmed a co-operation agreement following President Joe Biden’s push to promote “a fair, open and competitive” domestic market.
The Suez Canal Authority has pushed through a set of toll increases that will see transit fees rise by between 5% and 10% for most vessel types.
China United Lines, an emerging carrier on transpacific and Asia-Europe services, has ordered a pair of scrubber-fitted 7,000 teu containerships, the largest size in its fleet.
A safety specialist which has advised leading shipping companies on how to avoid accidents has won key funding to expand its business.
Seaspan ULC has placed an order for up to three liquefied natural gas bunker vessels in China.
Yangzijiang Shipbuilding, a privately run shipbuilder, will spin off its debt investment segment to concentrate on its core business.