The demolition market has been at a near standstill over the past few days, with deals few and far apart, in what signals a slow period. In its latest weekly report, shipbroker Clarkson Platou Hellas said that “as anticipated, activity this week has really slowed with only a handful of units reportedly negotiating and a lack of new candidates being placed in the market. Pakistani and Indian breakers, unlike their counterparts from Bangladesh at this present time, do have interest to acquire tonnage but not at any increased levels, they ...

The International Maritime Organization (“IMO”) Convention on Facilitation of International Maritime Traffic (the “FAL Convention”) was adopted in 1965 for the purpose of implementing a more streamlined logistics process for the transport of passengers, ships, and cargo in international trade. The FAL Convention has 121 Contracting Governments. The FAL Convention was adopted by maritime Contracting Governments, in part, as a response to increasing local requirements of maritime nations that created a burden on the shipping industry. The IMO’s stated objective underlying the FAL Convention’s was to avoid marine traffic delays, ...

BIMCO’s Documentary Committee has agreed a new standard Cyber Security Clause that requires the parties to implement cyber security procedures and systems, to help reduce the risk of an incident and mitigate the consequences should a security breach occur. In the wake of recent costly cyber security incidents involving large shipping companies, cyber security has become a major focus in the maritime industry. BIMCO has taken a lead position on cyber security issues through its active role at the International Maritime Organization and by co-authoring the “Industry Guidelines on cyber ...

While 2019 has proven to be quite a lackluster year for newbuilding orders, some sectors have managed to excel, with the most prominent example being the LNG shipping segment, but also the dry bulk one. In its latest weekly report, shipbroker Banchero Costa said that “the interests around LNG carriers persists with additional options being declared in South Korea. Japanese owners Mitsui confirmed and additional 174,000 cbm at Daewoo for dely June 2021, the same did Minerva who increased its commitment to with the fifth unit, at Samsung for delivery ...

The International Maritime Organization (IMO) has approved and adopted a comprehensive set of guidance and guidelines to support the consistent implementation of the lower 0.50% limit on sulphur in ships’ fuel oil, which will enter into effect from 1 January 2020. Related draft MARPOL amendments were also approved The 2020 rule will bring in considerable benefits for the environment and human health. The stricter limit will be applicable globally under IMO’s MARPOL treaty. (In designated emission control areas (ECAs), the sulphur limit will remain at 0.10%.) The 1 January 2020 ...

What the Marine Environment Protection Committee (MEPC) and the working group accomplished last week, was to finalise and agree on a set of procedures for assessment of impact on states from the proposed short-term measures. An important stop block has thus been removed which paves the way for advancement of individual proposals. The meeting didn’t postpone anything. I write this, because many press reports characterise what happened at MEPC 74 as a postponement because of disagreement between member states. It is important to note that the agreed work-plan to implement ...

The Iranian sanctions is yet another factor to be considered in the tanker market these days. The repercussions are far and beyond, especially after the latest move by the US to end all waivers, in an attempt to achieve its goal of zero Iranian oil exports. Among the nations most affected is India. In a recent weekly report, shipbroker Banchero Costa started its analysis on the matter, by noting that “Govt has put in place a robust plan for adequate supply of crude oil to Indian refineries. There will be ...

As from December 31, 2021, banks will no longer be compelled to provide LIBOR quotations. This means that the market’s most common method of setting interest rates will be discontinued. This change will have broad implications, affecting loan agreements, bond agreements, leasing arrangements, derivative products and many more existing transactions. In response to this deadline, working groups have been set up in respect of the five main IBOR currencies. These working groups have designated a preferred replacement rate and are working on the mechanics for making these available to the ...

Air Pollution and Energy Efficiency Draft amendments to MARPOL Annex VI. The Committee approved amendments to regulations 1, 2, 14, 18, 20 21 and appendices I and VI of MARPOL Annex VI, with a view to adoption at MEPC 75, which: a. Provide definitions of sulphur content, low flashpoint fuel, MARPOL delivered sample, in-use sample and on board sample. b. Require mandatory reporting of required and attained EEDI and other relevant information for ships subject to Regulation 21 (required EEDI). c. Accelerate EEDI Phase 3 in 2022 (from 2025) and ...

Tanker owners are having to cope with one of the most tense and complex geopolitical situations of recent times, when it comes to trading their fleet of vessels. Needless to say that uncertainty is prevailing at the moment. In its latest weekly report, shipbroker Gibson said that “not in a long time has the geopolitical situation in many of the worlds largest crude providers been so precarious. At the time of writing, many are still trying to understand the rationale behind the sabotage of vessels at Fujairah and drone attacks ...

The International Chamber of Shipping (ICS) – which represents the world’s national shipowner associations – remains confident that shipping will improve its carbon efficiency by at least 40% by 2030 compared to 2008, in line with the UN International Maritime Organization (IMO) targets to reduce greenhouse gas (GHG) emissions. This follows important decisions made by the IMO Marine Environment Protection Committee (MEPC 74) which met in London this week. ICS Secretary General, Guy Platten commented: “We welcome the adoption of important new IMO regulations to strengthen and bring forward the ...

Capesize The market continues to ebb and flow with a generally positive up trend. The Capesize 5TC opened with upward momentum from last week’s $11,621 and nudged to over $12,000. It then dropped to $11,705, however, by close it rallied to $11,909. West Australia to China ore run followed a similar pattern from high $6.00s, before losing 50 cents, ending the week marked around $6.50. News was heard overnight Thursday that Brazilian miner, Vale, advised prosecutors that another dam in the State of Minas Gerais is at risk of rupturing ...

Average dirty tanker spot freight rates in April continued to decline from the high levels seen at the end of last year. Fixtures were lower on seasonal factors with the start of refinery maintenance particularly pronounced this year as refiners gear up for the implementation of IMO 2020. Fleet growth weighed on the market as healthy freight rates in recent quarters discouraged scrapping and deliveries were concentrated in the 1H19, boosting availability. In April, dirty tanker freight rates for VLCCs and Aframax fell on average by 30% and 13%, respectively ...

Dislocations in oil markets are dampening the outlook for light-heavy crude spreads and value US refiners expected from International Maritime Organization (IMO) 2020 emission standards but Canadian exploration and production (E&P) companies are benefiting, says Fitch Ratings. US sanctions on Iran and Venezuela and inadequate Canadian pipeline infrastructure resulting in Alberta’s oil curtailment have been disruptive. Credit implications of revised IMO 2020 expectations should be limited. For refiners, we anticipate surplus FCF associated with the IMO 2020 tailwind is earmarked for share buybacks which can be quickly dialed back if ...

Gard is known as one of the largest marine insurers in the world – and the market leader with perhaps the most challenging travel route to their headquarters. But as any visitor knows, once in Arendal, Gard’s home since their founding in 1907, the charms more than outweigh the challenges. A quaint but bustling maritime village located 250 kilometres south of Oslo, Arendal was the largest sailing ship port in Europe in the late 1800s, and the most important stopover for ships trading between London and St Petersburg. Not the ...