Daily Briefing February 26 2020
Free to read: Maersk credit facility linked to environmental performance | American Club gains 10% on per-tonne pricing at cost of losing tonnage | Hafnia says low-sulphur fuels sustainable choice | Chinese buyers cut April crude purchases as refinery runs collapse
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What to watch | Analysis | Opinion | Markets | In other news
What to watch
Maersk has made an environmental rod for its own back by attaching sustainability-related terms to a new $5bn revolving credit facility, as it seeks to put incentives behind its moves toward decarbonisation of shipping.
The American Club says it pushed up per-tonne pricing by double-digits percentage points, sparking a 17m gt exodus, while West of England tops the 100m gt mark for first time.
Hafnia, formed from the merger of Hafnia Tankers and BW Tankers last year and one of the largest product tanker companies, has said using low-sulphur fuels is a sustainable choice.
The coronavirus continues to hamper Chinese demand, with knock-on effects around the world. However, in north China the market has already started to recover.
The crude pipeline bottleneck that depressed oil prices in the Midland region has shifted to the two largest exporting ports in the US Gulf, Houston and Corpus Christi, the Argus Crude and Refined Products Forum was told.
Analysis
A drive to promote the use of liquefied natural gas in India now overlaps with a persistently low-price environment, benefiting new import projects looking to secure supplies to feed expanding domestic demand.
Having signed the first phase of a trade pact with China and approved the US-Mexico-Canada agreement, the White House is now turning its attention to trade relationships with other markets, including Africa.
Opinion
The main obstacle to change in the P&I sector is the decision-making process within the International Group, where every one of the 13 clubs, regardless of their size, has the same vote, writes Mark Cracknell, head of P&I at Marsh JLT Specialty.
Markets
The coronavirus outbreak and continued closure of various manufacturing entities has taken a significant bite out of container shipping demand in Asia.
China’s manufacturing production remains at much-reduced strength, pushing cargo volumes into next month — when shipping capacity cuts are expected to cause price spikes and space shortages on both headhaul and backhaul voyages, Kuehne + Nagel says.
In other news
DP World and partner Caisse de dépôt et placement du Québec have completed the acquisition of Fraser Surrey Docks in the port of Vancouver, Canada, from Macquarie Infrastructure Partners.
The Harbour Commissions of the Ports of Los Angeles and Long Beach have approved an agreement aimed at reversing their loss of market share to rival ports along the US east and Gulf coasts.
Polaris Shipping chief executive Kim Wan-Jung has been convicted for not reporting defects in the very large ore carrier Stellar Daisy, whose sinking in 2017 killed 22 seafarers.
Launched by two Greek managers in 2018, Luxembourg-domiciled fund SevenSeas is stressing risk-mitigation and has appointed Seabury Maritime to help step up capital-raising.
Danelec, a Danish marine equipment specialist, has recruited a strategic partner to enable it to grow in the dynamic Internet of Things area for maritime. Norway-based Verdane has been selected.