Daily Briefing November 6 2019
Free to read: ‘Shipping cannot meet 2050 emissions goal’ | Opec forecasts ‘less severe’ IMO 2020 implementation | Xi pledges to expand China’s import market | Samskip open to further M&A activity
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 IMO’s 2050 emissions reductions target will be missed unless the global shipping industry takes further measures in addition to those already in place, according to Opec’s World Oil Outlook.
Opec’s assumption that global refineries can meet demand is a significant message for shipowners and charterers. Its projections were revised to account for a higher uptake of scrubbers, additional crude distillation capacity at refineries and lower oil demand growth.
President Xi Jinping said China will continue to open its market and increase imports, as the world’s second-largest economy is locked in a trade war with the US and encountering slower growth.
Analysis
Shippers exploring alternative production strategies should look beyond simply avoiding Chinese tariffs and assess other cost-saving opportunities.
The ‘actionable fault’ defence under Rule D of the York Antwerp Rules is available to issuers of general average guarantees in the AAA/ILU Form format, the Commercial Court has ruled.
Opinion
Samskip has been at the centre of a consolidation wave in the European shortsea shipping market, but has not ruled out the prospect of further merger and acquisition activity if the opportunity arises. It “cannot rule out” the possibility of further M&A movement, chief executive Kari-Pekka Laaksonen tells Lloyd’s List.
Markets
Product tanker owners Concordia Maritime and Ardmore Shipping welcome a market that is ‘finally’ firming. Both companies reduced losses in the third quarter of the year.
Drewry’s composite World Container Index surged 14% last week to $1,405 per 40ft container, as rates ‘showed a significant increase on all routes originating from Asia’, with spot prices expected to continue the upwards trend this week.
In other news
Seanergy Maritime, a Greece-based owner of capesize vessels, expects to see elevated charter rates because of a continued recovery in iron ore exports from Brazil, combined with lower tonnage availability due to vessels being taken offline for scrubber fittings.
Containership owner Danaos Corporation sees a number of positive factors combining to support the strengthening of the charter market going into 2020 despite the company’s modest increase in the third quarter over the same period last year.
A bid vehicle associated with Malaysia’s richest man has made an offer to privatise Singapore-listed offshore support vessel owner-operator, PACC Offshore Services Holdings.
The International Longshore and Warehouse Union is facing possible bankruptcy after losing the latest court hearing over the closure of a major US container terminal.
Strong support from key customers in the Ocean Alliance, combined with good growth in the intra-Asia segment and more ultra large containership calls, has put Westports on track to meet a 10m teu throughput target for 2019.
Stena Bulk chief executive Erik Hanell has been appointed as chairman of the International Tanker Owners Pollution Federation.