Daily Briefing March 13 2020
Free to read: Greek shipowners lead lucrative VLCC charter market | China ship calls return to previous levels | Singapore bunker fleet will expand despite oil price plunge | EU ministers welcome Green Deal
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A week of inflated charter earnings persists as geopolitical uncertainty and oil market dynamics pushed average daily VLCC earnings to above $200,000 on Thursday. Over the past three days, Greek owners have taken the lead chartering out vessels.
As Europe and the US bring in increasingly restrictive measures to prevent the spread of coronavirus, figures from Lloyd’s List Intelligence show ship calls at China’s leading export hubs are back to normal seasonal levels.
Regardless of how oil prices may move, one top-rated bunker player is pressing on with its fleet renewal and expansion plan at the world’s busiest port for marine fuel sales.
The European Commission’s plan to include shipping in the European Union Emissions Trading System will require support from EU governments. In a public declaration, ministers supported the EC strategy for net zero emissions, but warned any measure has to be flag neutral and ensure a level playing field.
The US Energy Information Administration has significantly revised its short-term outlooks for global oil supply, demand and prices.
Chad Lindsay, vice-president of labour relations in Southern California for the Pacific Maritime Association, made a plea for the introduction of automation as a means of preserving the dwindling market share of US west coast ports.
The introduction of the International Maritime Organization’s sulphur cap should remind shipowners that some of the legal issues that arose from the OW Bunker bankruptcy remain unresolved, says Hill Dickinson.
This week’s oil price crash is predicted to hit US gas production hard while strengthening Qatar’s position, as oil drilling in the relatively higher-cost Permian Basin slows.
The $200bn deal cut some US tariffs on imports from China but failed to boost trade volumes in January, with manufactured, agricultural and energy goods down 26% on January 2017 levels.
The International Maritime Organization shut its headquarters in London and postponed more meetings after the World Health Organization designated the coronavirus outbreak as a pandemic.
Terminal operator Contship Italia expects volumes to be hit by coronavirus, but says its logistics operations can play vital role in keeping goods moving.
Maersk holding company appoints new board members: Claus Hemmingsen has had a 40-year career within the Maersk family of companies, while Dianne Greene brings in new blood from the technology sector.
Trade disruptions from global trade disputes, the coronavirus outbreak and regional geo-politics are a cause for concern. DP World remains positive on the medium to long-term outlook for the industry, however.
The Greek ferry sector faces taking an ‘enormous’ economic hit because of coronavirus considerations with traffic on all routes about 50% less than last year.
Cruise operators Princess Cruises and Viking are breaking off all activity until May. Two of Princess Cruises’ 18 cruiseships suffered coronavirus outbreaks.