Once again, the loss of Iranian oil for the international market is an eventuality, which is bound to alter fundamentals in the tanker market. In its latest weekly report, shipbroker Gibson commented that “as we move closer to the November 5th re-imposition of sanctions against Iran, the impact is starting to become more noticeable for the tanker market. The IEA reported this week that Iranian crude production had fallen by 150,000 b/d to 3.63 million b/d in August, the lowest since July 2016. Ship tracking data suggests that exports have ...

Against the positive backdrop of a benign claims environment in some sectors, IUMI’s statistics show an increasing mismatch between premium income, covered risk and claims costs. On a global average basis, buffers to cover extraordinary single or accumulation losses are non-existent. Today, IUMI – the International Union of Marine Insurance – presented its annual statistical report on the marine insurance market at this week’s annual conference in Cape Town. Whilst global marine premiums were up by 2%, IUMI highlighted an increasing mismatch between income levels and covered risk. Vice-Chair of ...

To assist shipping companies prepare for implementation of the UN IMO global sulphur cap for ships’ fuel oil, the International Chamber of Shipping (ICS) has produced – free of charge – some comprehensive guidance on implementation planning, to help ensure compliance across the shipping industry with this regulatory game changer. The free ICS guidance has been prepared for the vast majority of ships that will comply after 1 January 2020 using fuel oils with a sulphur content of 0.50% m/m or less. ICS Secretary General, Guy Platten, explained: “Shipping companies ...

With traditional banks cutting back on ship financing and owners increasingly looking to alternative ways of financing their fleet renewal and investment programmes, loan portfolios have been tumbling down. In its latest annual survey, Petrofin Bank Research said that “another $10bn has been knocked off the portfolios of the top 40 banks over the last year. Bearing in mind the previous year’s reduction of 42.5bn, it would appear that the rate of decline is slowing down. It is yet early days to conclude if banks will continue reducing their exposure ...

Capesize The Capesize market fell sharply across all areas with the positive sentiment for the fourth quarter being eroded. In Asia, the west Australia/China route remained fairly active but lacked a full set of miners in the market during the week. Rates dropped a dollar in three working days, and for now held at $7.50 for end September. Activity in others was minimal and timecharter rates were barely holding in the high teens depending on size and age. Brazil again remained slow, with a plentiful supply of ballasters for nearby ...

The 72nd session of the Marine Environment Protection Committee met in London from 9 to 13 April 2018. This Update provides additional information to that reported in the MEPC 72 Brief, issued on 13 April 2018. MARPOL AMENDMENTS ADOPTED MARPOL Annex VI (EEDI) Based on the Committee’s conclusions that it would be next to impossible for new Ro-Ro Cargo Ships and new Ro-Ro Passenger Ships, particularly larger sizes, to meet the Phase 2 Required EEDI, the Committee adopted amendments to MARPOL Annex VI concerning the required EEDI for new Ro-Ro ...

In its latest monthly report, OPEC painted a pretty picture on the course of the tanker shipping market. It said that average dirty spot freight rates in the tanker market increased in August from the previous month by 7%. The average increase was driven mainly by gains registered for the VLCC and Aframax classes, while Suezmax freight rates showed negative developments. VLCC rates registered gains compared with the previous month. Several markets showed higher freight rates in August despite frequent fluctuations. Rates in the Caribbean, West Africa and the Middle ...

In recent months, there have been numerous reports of a strong pick-up in demand for scrubbers. On 1 January 2020, however, the number of ships fitted with scrubbers will represent only a tiny percentage of the world fleet, according to forecasts. There are many estimates of how many ships will be fitted with scrubbers – as opposed to how many will opt for compliant, low-sulphur fuel – as the shipping, port and bunker industries anticipate the new sulphur cap regulation from the International Maritime Organization (IMO). Scrubbers – the least-preferred ...

The problem started with fuel supplied in the US Gulf region, particularly in the Houston area, but the problems quickly spread to Panama. More recently, similar problems have been encountered with fuel supplies out of Singapore.[1] So although the problem is now widespread, it is described in the industry as “the Houston problem”, Houston being the first location affected. Industry commentators estimate that in excess of 200 vessels have been affected by quality related issues following supplies of bunkers. By late August, Fobas alone have confirmed that they are involved ...

While it’s a bit difficult to expect this trend persisting, it’s becoming clear that the trade war between the US and China hasn’t dented the dry bulk market’s upwards momentum, thanks, in part to a boom in soybeans trade involving Brazil and the balance between tonnage supply and demand. In its latest weekly report, shipbroker Allied Shipbroking said that “it has been a rather turbulent week, with emerging markets having taken a considerable hit in the midst of the recent strength noted in US Dollar and the still bleakish view ...

On 15th September 2008, the collapse of Lehman Brothers crystallised the financial crisis and the onset the worst economic downturn for a century. To a shipping industry used to extreme cycles but transitioning to recession with rapid trade collapse and a huge newbuilding orderbook the initial shock was severe and the “hangover” prolonged. This week’s Analysis compares the situation almost ten years to the day. Bye Bye Boom… Even for an industry well used to severe cycles (and with warning signals if you looked hard enough), after five years of ...

Following our earlier insight on contaminated bunkers, we now focus on the bunker supplier and the supply contract. Before looking at these in more detail, however, we briefly summarize the situation at present. No new developments Little or no headway has been made in identifying the root cause of contamination and advanced testing, such as detailed Gas Chromatography combined with Mass Spectrometry (GCMS) and Fourier Transform Infrared Spectroscopy (FTIR), still remains the only reliable means of establishing whether the bunkers are contaminated. There is still a considerable backlog when it ...

Ship owners have gone back to the scrapyards over the past couple of weeks, selling more overaged tonnage, in a bid to compensate for the newbuildings entering the global fleet in an already overburdened market. In its latest weekly report, Clarkson Platou Hellas commented that “the market has shown some strong signs of recovery following the reduced buying appetite and lack of tonnage during the summer months with all three Indian Sub-continent markets finally looking evenly balanced creating healthy competition. This has been evidenced by the amount of various types ...

A remarkable maritime event occurred recently. China became the world’s second-largest shipowning country, overtaking Japan. The top shipowner, Greece, is still much larger but the gap is closing as China’s fleet expansion continues at a rapid rate. Numerous giant ore carriers, tankers and container ships scheduled for delivery to Chinese owners in the months and years ahead are likely to further boost capacity. Strong and accelerating growth in the China-owned merchant ship fleet has unfolded. In 2017 an increase exceeding 9 percent was seen, and recent signs suggest that this ...

Once again, the already long list of tariffed goods has been made even longer. Many more commodities were hit on 23 August, but September is likely to dwarf it all, as the US has proposed slamming tariffs on goods worth USD 200 billion. The tariffed goods’ share of global trade is largely underestimating the overall negative impact of this trade war on globalisation and international shipping. BIMCO’s chief shipping analyst Peter Sand comments “85.3% of Chinese seaborne imports from the US and 58.5% of US seaborne imports from China could ...