Daily Briefing February 22 2021
Free to read: Club hopping not happening as renewal round closes | It is time to bring some humanity to shipping | Shippers face long haul before goods flow freely again | Cook Islands flag cancels Iranian-linked tankers
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P&I underwriters seem to have secured most of the substantial price increases they were after this year, but suggestions that owners would jump clubs to secure the keenest pricing do not appear to have materialised. ‘Based on what I’m seeing and hearing in the market, the number of owners actually changing clubs this year is less than what ordinarily might have been the case in years gone by,’ says Skuld’s Gregory Thomas.
Ahead of the P&I renewals deadline we have been speaking to both sides of the annual battle in this week’s edition of the Lloyd’s List Podcast. Clubs are seeking sharp increases in prices, while shipowners are trying their best not to end up paying more, sending their insurance brokers into bat to keep those rate hikes down. So who’s winning? This week we talk to: David Mahoney of Aon, Stephen Hawke of Ferrari, Gard’s chief underwriting officer Bjornar Andresen and Skuld’s executive vice-president Gregory Thomas.
The Cook Islands registry has de-flagged two tankers involved in transporting sanctioned Iranian crude some three months after being first provided with satellite images showing the vessels undertaking ship-to-ship transfers at Iranian oil terminals.
Supply chains face their own ‘Long Covid’, with lockdown-created congestion forecast to impact through first half of 2021. Low inventory levels mean demand is set to remain high. But the impact of the lockdowns on productivity means it will take time for such activity to return to normal.
Oldendorff Carriers marks its centenary this week. It has grown and developed from a traditional owner to become one of the largest operators in the dry bulk shipping segment. Chairman Henning Oldendorff says the company has been profitable for the past 14 years, despite some difficult times for the dry bulk sector. In 2019 it had one of its best years financially.
Meanwhile, with decarbonisation at the forefront of the mind of every shipping company, dry bulk owner and operator Oldendorff is testing different solutions to be able to meet the targets set by regulators. The German company says it will not be placing any newbuilding orders until a clear picture emerges of which future fuels to use.
Why has it taken a humanitarian crisis to acknowledge our obligation to support the human element in shipping? It’s all very well investing in digital technologies and decarbonisation initiatives. But what about the men and women who work at sea and on shore? We must not allow them to be pushed into third place, argues our chief correspondent Richard Clayton.
A combination of inventory drawdowns, stalling demand growth and caps on crude production is driving rates lower. Two leading listed tanker companies report they are struggling to earn rates that cover cash breakeven costs against the backdrop of continuing lockdowns in key global economies.
The five integrated supermajors — ExxonMobil, BP, Shell, Chevron, and Total — posted a combined record loss of $76bn in 2020, according to Rystad Energy.
US liquefied natural gas exports are expected to exceed natural gas exports by pipeline in the first and fourth quarters of 2021 and on an annual basis in 2022, the Energy Information Administration says.
JAX LNG and TOTE Services have completed their first ship-to-ship liquefied natural gas bunkering of a foreign-flagged vessel at the Jacksonville Port Authority.
Yangzijiang Shipbuilding is widening its interests in the shipyard supply chain with the purchase of equipment supplier and vessel sales broker Jiangsu Tianhong Marine Import and Export Co Ltd.