Daily Briefing August 29 2019
Free to read: Yard merger reignites talk of Samsung's shipbuilding exit | World's largest VLCC owner warns of crude shipping risks | Sanctions are ‘extremely challenging’ despite transparency tools | Shipping’s Arctic sea route concerns? Hold the applause
Good morning. Here’s our quick view of everything you need to know today.
The Lloyd’s List Daily Briefing is brought to you by the Lloyd’s List News Desk.
What to watch | Analysis | Opinion | Markets | In other news
What to watch
Samsung scion’s lack of interest in shipbuilding has long fanned rumours over the group’s interest to exit shipbuilding. Still, the South Korean government will not view a sale of Samsung Heavy Industries favourably given the top shipbuilder is a major contributor to employment.
China Merchants Energy Shipping is cautious about the near-term oil shipping outlook, despite the favourable momentum seen in the first half that has helped to boost the world’s biggest very large crude carrier owner’s bottom line.
Sanctions monitoring can be “extremely challenging” for companies in the shipping industry, but available technology that makes operations more transparent and proactive measures can minimise potential damage.
Analysis
China is forecast to continue to grow its gas imports in the long term despite being set to become the world’s third largest gas producer by 2027.
Current spreads show an increasing premium for low-sulphur fuel over heavy fuel oil. Owners with scrubbers will stand to benefit from lower fuel costs.
Hopes for a successful peak season on the transpacific are fading, according to analysis from Platts.
Opinion
CMA CGM’s pledge to steer clear of the northern sea route, while welcome, falls short of being a watershed moment for container shipping’s environmental agenda. The test will be if the French carrier’s stance remains unmoved when the economics become more favourable, writes Linton Nightingale.
Panels at the Lloyd’s List’s Future Fuels Forum, in Houston, Texas, next month will discuss what still needs to be addressed in the switch to low-sulphur fuels, and what steps shipowners should take on the journey to a reduce-carbon future, writes Richard Clayton.
Markets
Demand for new containers has dropped sharply as market sentiment is being adversely affected by simmering trade conflicts and the weakening global economy, a major producer in China says.
In other news
MOL Nordic Tankers chief executive Per Sylvester Jensen and chief financial officer Henriette Schutze have left the company as part of its integration into MOL Chemical Tankers.
State conglomerate China Merchants Group has offered to acquire AVIC International Maritime Holdings, as part of the country’s move to consolidate the shipbuilding and offshore sector.
If project partners do not finalise a deal with Papua New Guinea’s government within days, the country’s sole export project cannot move into the next engineering phase before contractor bids expire.
Omnitrax, one of the largest privately held rail companies in America, has said it will acquire the Cleveland Commercial Railroad and its wholly-owned subsidiary the Cleveland Harbor Belt Railroad, in a deal that could double throughout at the Port of Cleveland.
Hong Kong-based shipping executive Thomas Soderberg will be joining compressed natural gas project developer Global Energy Ventures as its head of shipping, replacing ex-Frontline chief executive officer Jens Martin Jensen.
Knutsen NYK Offshore Tankers, NYK Group’s shuttle tanker joint venture with Knutsen Group parent TSS Shipping Invest, has sealed a 15-year shuttle tanker deal with Total for its Brazilian activities.
Taiwanese shipowner Nobu Su has lodged an appeal against his 21-month prison sentence for contempt of court.