Daily Briefing September 3 2019
Free to read: Why the Adrian Darya 1 saga is an issue for the whole industry | US ports on high alert as Hurricane Dorian pounds Bahamas | Tanker market faces uncertain future in a no-deal Brexit | Shippers prepare for sharp fuel price rises
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It is now clear from the Adrian Darya 1 saga that scrutiny from multiple government agencies globally is increasing. But anecdotal evidence from security analysts and industry experts suggests that risk mitigation measures from shipping companies is not keeping pace with the enhanced scrutiny and technological advances that allow contraventions to be exposed.
Hurricane Dorian has led the US Coast Guard to declare Port Condition Zulu at the Port of Miami and a number of nearby smaller ports, with all vessel movements and ship-to-shore operations banned unless explicitly authorised for safety purposes.
UK refineries would likely be affected in the event of a Brexit on World Trade Organisation terms, but the implications for the tanker market are less clear, according to Gibson Shipbroker.
Many cargo owners remain unclear about the impact on their freight costs of the incoming low-suphur shipping fuel rules, although better information is now becoming available, says Drewry.
From the News Desk: As London International Shipping Week approaches, we recommend that the focus is firmly international (rather than Brexit) and transparency is top of everyone’s agenda. Iran’s latest antics could be written off as yet more political posturing, but the implications all point to more intense scrutiny for shipping and the need for better risk mitigation.
The Lloyd’s List Podcast: As London International Shipping Week approaches, along with the increasing likelihood of a no-deal Brexit, we are joined by UK Major Ports Group chief executive Tim Morris on this week’s Podcast to discuss what lies beyond Brexit for the UK port sector and how to build a ‘strong port’, indeed a strong maritime sector, sufficiently resilient to withstand the mega trends from here to 2050.
The US has announced sanctions on several individuals and companies based in Taiwan and Hong Kong, saying they helped North Korea evade international restrictions on its petroleum trade by using the illicit transfers.
Oldendorff, the German dry bulk owner, is to install electric propulsion on two of its dry bulk carriers to curb emissions.
Mitsui OSK Lines has signed a cooperation agreement with Turkish steelmaker Tosyalı Holding and will work on transportation services for the latter, as well as building a port in southeastern Turkey and other unspecifed business ventures.
Cosco Shipping Holdings has reported a big turnaround in the first half of this year, backed by the acquisition of Orient Overseas International Ltd and an improved vessel supply picture.
Singapore’s PSA International is continuing to boost its North American footprint and made its first inroad into the US with the completion of its acquisition of Penn Terminals as part of a deal with Macquarie Infrastructure and Real Assets fund Macquarie Infrastructure Partners that also included Canada’s Halterm Container Terminal, Halifax.
HFW is boosting its Singapore shipping practice with the hire of partner Christopher Metcalf, who is joining from Clyde & Co in September, subject to regulatory approvals.
Sembcorp Marine has leveraged on its traditional strengths in repair and conversion work to win some S$400m ($287.8m) in new projects in areas ranging from offshore gas and wind farm developments to cruise ship upgrades.
Hyundai Heavy Industries has won another in a steady stream of liquefied natural gas carrier orders, with a $188m contract from an unidentified Oceania shipowner to build a 174,000 cu m vessel with delivery due by January 2022, according to Yonhap.
China Cosco Shipping Corp has locked up some 80% of the low sulphur fuel oil expected to be consumed by its containership fleet as the 2020 sulphur cap looms.