Daily Briefing October 8 2019
Free to read: Eastern Pacific supersized its dual-fuel LNG boxship order to 22 ships | Tanker rates soar as two-tier market evolves over sanctions exposure fears | VLCC earnings hit $100,000 as sanctions bite
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What to watch | Analysis | Opinion | Markets | In other news
What to watch
Eastern Pacific’s speculative order of dual-fuel LNG containerships is significantly bigger than originally thought.
US sanctions on Cosco created a short-term scramble among charterers to replace vessels, says Poten, while over the longer term, the expanding American sanctions regime against Iran, Syria, Russia, Venezuela, Cuba and North Korea could create a market with ‘safe owners’ and owners that dodge the sanctions.
Crude tanker rates gained for an eighth consecutive trading day yesterday, as charterers shunned tonnage linked to sanctioned owners and managers from China and Venezuela, amplifying tankers’ usual fourth-quarter seasonal demand boost.
Earnings for very large crude carriers on US Gulf to South Korea trade have hit $100,000 per day for the first time since January 2016 as charterers rushed to fix vessels amid tightened tonnage availability, paying huge premiums.
Analysis
Drewry has downgraded its outlook for world container port throughput for the year due to a deterioration in the ‘mood music’ surrounding the sector in the past three months.
Opinion
The Lloyd’s List Podcast: This week we’re taking a deep dive into the too often overlooked LPG sector with Epic Gas chief executive Charles Maltby. While the headlines have favoured their certainly cooler, arguably sexier cousins in LNG, we think it’s time everyone started paying attention to the cheaper, more agile and profitable pressurised market.
Markets
While it is easy for start-ups to boast impressive growth rates, real numbers are what really count. While not all ventures will be successful, real volume growth is showing that digitalisation is taking hold.
The UK supply chain faces an extra £15bn ($18.5bn) in annual costs in the event of a no-deal Brexit, according to new government estimates.
Intercargo says ‘major’ uncertainty is still clouding implementation of the 2020 sulphur cap as it called for sectoral differences within shipping to be respected in emissions reduction policies.
In other news
The US Department of Energy has granted the authority to export to Eagle LNG. The developer is pursuing a three-train project with 1m tonnes per annum of capacity.
Singapore-based yard groups Keppel Offshore & Marine and Sembcorp Marine say they have agreed a settlement with Sete Brasil, the rig-owning arm of Petrobras, for the construction of 13 deepwater rigs in a deal worth more than $10bn.
Eastern Pacific Shipping, a shipmanagement company, has appointed three new hires to its Singapore office, signalling the group’s commitment towards technological growth and its expanding eco-friendly tonnage.
Mozambique is set to become one of the world’s largest exporters of liquefied natural gas following the development of two projects by ExxonMobil Corp and Total SA, with combined production of some 28.1m tonnes a year.
First Gen Corp plans to lease a floating storage regasification unit from early next year to fill an emerging shortage in feed gas for its power plants in the Philippines.
Donald Harrell, the former chair of the International Union of Marine Insurance’s facts and figures committee, has been appointed managing director and chief operating officer of Willis Re Specialty.
Globe Underwriting, the UK-based managing general agent, has promoted David Dymond to head of marine and transport following the retirement of Peter Rogers.
The Port of Rotterdam Authority has launched an application allows shippers and freight forwarders to see where their containers are located at any given moment.
The UK’s imminent departure from the European Union has put pressure on UK ports to prepare for additional checks and paperwork. But their counterparts in Europe that trade with the UK face similar demands.
Navigare Capital Partners, the maritime financing venture, has partnered with Nordic pension funds to launch a second maritime fund whose initial investment already exceeds $300m and hopes to surpass $450m.
Qatari LNG outfit Nakilat has acquired full ownership of four Q-Flex liquefied natural gas carriers from joint-venture partner International Seaways, for undisclosed consideration.