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Tag Archives: Tops

VLCC tankers storing crude are much less than claimed, says shipbroker

Reports this week indicated that VLCC availability has been limited by a surge in floating storage which has consumed a large segment of the fleet, raising fears about the timing and implications of a mass return of these units to normal trading. However, according to shipbroker Charles R. Weber, “in examining both AIS idle fleet data and our proprietary commercial deployment data on a granular basis, we believe that the extent of floating storage has been overstated”. CR Weber said that “there are presently 42 VLCC units that have been ...

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Up to $400 billion of shipping debt represents unassessed climate risk exposure at major banks

Carbon War Room (CWR) and UMAS released research that suggests climate transition pathways pose risks to the banks that hold $400 billion of global shipping debt. With the onset of climate policies as soon as 2023, there will be a need for significant capital investment to keep vessels competitive. Navigating Decarbonisation: An approach to evaluate shipping’s risks and opportunities associated with climate change mitigation policy lays out the first approach to climate stress-testing of shipping assets and proposes that enhanced due-diligence undertaken today by financiers, shipowners, and shareholders can help ...

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Socio-economic impact of the EU shipping industry remains solid

The EU shipping industry directly employed 640,000 people and supported a € 57 billion contribution to GDP in 2015. Adding supply chain and worker spending multiplier impacts, the shipping industry’s total employment contribution rises to 2.1 million people and its total GDP contribution is estimated to have been € 140 billion in 2015. These are the key findings of the latest update on the which ECSA commissioned from Oxford Economics. The report further indicates that, at € 89,000 per worker in 2015, productivity in the EU shipping industry remains above ...

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Tankers: Japan’s influence on the tanker market not what it used to be

Japan used to be one of the most important markets for the tanker industry, as crude oil imports, mainly from the Gulf Arab region were the norm for decades. This is beginning to change these days, with shipbroker Gibson noting that “the Japanese refining industry has been experiencing challenging circumstances for a number of years, with significant rationalisation of refining capacity. Reform in the Japanese refining sector is not a particularly new story; however, in March 2017, a government directive will come into effect, forcing refiners to further boost efficiency, ...

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Vessel Losses: Is Shipping Resuscitating Its Record?

Safety at sea has improved significantly in the past twenty years, with losses of large merchant vessels becoming a relatively rare event. Whilst casualties appear to be more common among older and smaller vessels, total losses seem to be on a downward trajectory. Even as the world fleet reached its greatest ever size, last year marked the fewest number of vessel losses on record. Examining The Vital Signs Although major accidents will always hit the headlines, merchant ships have in recent times been an extremely low risk form of transport. ...

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The end of the Swiss federal state guarantee for cargo vessels – a trigger for the tonnage tax?

The Swiss Federal Council decided to terminate the well-established funding instrument to facilitate the financing of Swiss owned and registered cargo vessels by issuing government guarantees. Further, the Federal Council decided not to renew existing guarantees or grant new guarantees for Swiss Ship-owners as of June 2017. The existing guarantees will continuously expire up to 2031. Over the past years, the Swiss federal government has issued guarantees in the amount of approximately 800 Million Swiss francs in favour of a fleet of 50 vessels with a capacity of 1’812’148 DWT. ...

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LNG Fuels Could Be the Way Forward For the Shipping Industry

LNG fuels have been on the forefront of alternatives for the shipping industry for quite some time now, but the latest developments with the IMO decision to limit sulphur content of marine fuels by 2020 are putting things into “fast forward” mode. In its latest weekly report, shipbroker Intermodal noted that “from January 2020, global sulphur content of marine fuels will be condensed from the current maximum of 3.5% to just 0.5%. This decision is designed to radically reduce emissions produced by vessels using marine diesel and fuel oil and ...

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Dry Bulk FFA: Capesize Index Looking Upwards

We noted last week that the Capesize index was due an upward move, we also noted that US$ 6,570 was a key level, as a close above here would suggest the longer term downward move has run its course, and this has been the case. The weekly index is once again back above the 55 period MA and the Ichimuko cloud which puts it back into bullish territory. Momentum in the form of the stochastic is currently below 30 and this would support a basing/bullish move within the Capesize market. ...

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My charterer has threatened to cut my charter rate, despite the charterparty not allowing for this. What damages can I claim if I refuse their request and they walk away from the charter?

The usual ‘rule of thumb’ measure of damages for a charterer’s repudiatory breach of a charterparty is the difference between the hire that you would have earned under the charterparty and the hire that you would earn from a reasonably similar replacement fixture on an available market, for the balance of the period. So, for example, say you entered into a charterparty for a period of two years plus or minus 15 days at charterers’ option at a rate of US$ 10,000 a day, and you delivered the vessel into ...

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LNG Shipping Prospects Brighten Up, But Only for Long-Term Charters

New LNG projects coming online are bound to improve the fortunes of LNG shipping carriers. In a recent market outlook, shipowner GasLog said that “with a growing number of new demand centers, the demand outlook for LNG carriers with long-term charters remains positive. We continue to see tenders for multi-year charters for vessels, which we expect will be used to transport volumes from new liquefaction facilities coming online over the coming years. We believe that these new LNG volumes will create demand for additional ships over and above those available ...

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Dry Bulk Back From The Brink

Bulker Values in the last 12 months have hit rock bottom and are now looking to show considerable promise. 5-year-old handysize values are up by over 40%; as are 15-year-old Panamax and Supramax asset prices. Pre-2002 built Capes are up by around 35% since February 2016. 1 Year % Change in Value To put the opportunities in perspective, a 2012, Korean-built handysize bulker was sold at USD 6.2 million. Today that vessel is worth USD 12.3 million. Also of note is the Panamax Songa Maru, (2008-built, Tsuneishi Zhoushan). The vessel ...

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Long Range Tankers Taken for Storage on Expectations of Tighter Asian Gasoline Market

Singapore gasoline cracks have averaged $10.72/bbl in February so far, down by 12% y-o-y but still relatively firm. Robust demand from the Middle East and intra-Asia as well as a flurry of both planned and unplanned refinery outages have been supporting gasoline cracks. ADNOC recently bought nine 27 kt cargoes over March-April delivery as its 127 kb/d RFCC remains shut from a fire. The shutdown of Pertamina’s 125 kb/d Balongan refinery and TPPI’s reformer in Tuban also led to firm buying from Indonesia, Asia’s largest gasoline importer. Singapore onshore light ...

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Demand is picking up in the dry bulk market

Pacific Ocean dry bulk trades are starting to push the freight market to new heights recently, offsetting part of the limited activity in the Atlantic market. According to the latest weekly report from shipbroker Allied Shipbroking, “we have started to some sparks of life in the commodities markets these past weeks, with prices having shown a strong push during the past couple of days especially for iron ore. This has been in line with the restart of the main trade growth engines of the Far East which have started to ...

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Minor Bulk Trade: Indonesia Back In The Game?

Seaborne minor bulk trade is estimated to have remained steady at best in 2016, making it the third consecutive uninspiring year of minor bulk trade growth following the introduction of Indonesia’s refined mineral export ban in January 2014. Indonesia is now set to restart bauxite and nickel ore exports in 2017 which, given the country’s previous key role, may help to change minor bulk trade dynamics. Two Distinct Periods Seaborne minor bulk trade is estimated to have dropped 0.3% to 1,851mt in 2016, partly due to a sharp drop in ...

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A Long Winter for Shipping

As the landlubbers in the Northern hemisphere struggle to cope with extreme weather conditions, shipowners continue to deal with unprofitable markets in most sectors. The excess supply of ships continues to face no growth in demand for their services while new newbuilding orders have emerged as shipyards continue to lower their prices. The average age of the operating ships remains historically low whilst the ship recycling industry continues to offer low prices and itself faces reduced demand for the recycled materials. Mid-size container ships dominate this market as more mega-ships ...

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