The effects from the Coronavirus have started to have a negative impact on a number of shipping-related industries and markets, from the dry bulk market, to the tanker and from ship-repair businesses in China, to crew-training schools in the Philippines. In its latest weekly report, shipbroker Intermodal said that “the coronavirus outbreak is estimated to negatively affect global economy by at least EUR400bn this year, representing around the 0.4% of global GDP. The degree to which different economies will be affected varies, with some countries looking at damages only in ...

The outbreak of the novel coronavirus, recently dubbed COVID-19, continues to generate massive economic and financial uncertainty when it comes to China and global shipping. Two weeks ago, we argued that – from an economic perspective – when China sneezes, we all catch the flu. Since the SARS outbreak in 2003, the global economy has become much more interlinked with China and the Chinese economy has grown to become the second largest in the world. While hard facts and reliable data are in high demand, they are in short supply, ...

Global economies were already not at their healthiest when Covid-19 arrived to shut down cities, curb trade and restrict travel. Now, economic warnings from around the world are being issued making the 2020 outlook rather bleak. Consequently, those reliant on healthy economies to drive world trade now need to batten down the hatches. Singapore announced a raft of support packages in its budget this week to shore up its economy against the impact of the Covid-19 outbreak. A total of S$800 million has been allocated to fighting the spread of ...

The shipping industry is in front of a monumental shift in its way of doing business, as the risk assessment tools of the past no longer apply, when it comes to making informed investment decisions. In its latest weekly report, shipbroker Allied said that “under such poorly performing market circumstances, many usually take the historical approach, in order to better understand and further analyze the present state of the market. However, to what degree is this a “fair” comparison to undertake right now?” According to Allied’s analysis, “the freight collapse ...

Panama, Norway, Greece and other influential actors are co-sponsoring a proposal originally tabled by Japan to curb the carbon intensity of existing ships through use of an Energy Efficiency Existing Ship Index (EEXI), much like the Energy Efficiency Design Index (EEDI) which is mandatory for new ships. The new short-term measure requires existing ships to comply with an EEXI limit, if adopted by IMO. The proposal offers a simplified way to comply by using estimated speed/power curves and power limitation. Together with Greece, Japan, Norway, Panama, The United Arabic Emirates, ...

During the European Shipping Week 2020, shipowners organised an event as part of their ratification campaign of the 2010 International Convention on Liability and Compensation for Damage in connection with the Carriage of Hazardous and Noxious Substances by Sea (HNS Convention). Wednesday’s event gathered representatives from the IMO, the IOPC fund, the European Commission, Member States as well as industry representatives to speak about the purpose and benefit of the Convention, how the convention will strengthen the international liability framework and the main reasons why states are being encouraged to ...

The Capesize market has long been in negative territory, leaving ship owners with older ships in their “arsenal” with little no options. As such, over the course of the past few weeks, there’s been a wave of sales for demolition. In its latest weekly report, shipbroker Clarkson Platou Hellas said that “after what has been a ferocious start to the year with 11 large dry units (VLOC’s/Capes) already sold into the Sub-continent for recycling, the market re-caught its breath and, unfortunately, briefly paused. With sentiment wavering and price levels falling ...

The Bahamas Maritime Authority (BMA) has outlined its goals for the next 12 months, with quality growth, partnership, sustainability and the effective use of technology sitting at the top of its agenda. Outlining his 2020 message to the industry, Captain Dwain Hutchinson, Managing Director and CEO of the BMA, said maintaining its position in the list of the world’s top 10 largest ship registries was essential to the BMA, but never at the expense of quality. “Growth is important, but we will never compromise on our demand for, and expectation ...

Middle distillates tank One of the biggest surprises since the implementation of new International Maritime Organization (IMO) sulphur regulations is the weakness we have seen in the middle distillate market. Expectations were that we would see a large share of the shipping industry shift to marine gasoil, which would be a bullish scenario for middle distillate cracks. Instead, gasoil cracks are trading at levels last seen in 2017, falling by more than 50% from their October 2019 highs. A milder than usual winter, and the outbreak of the COVID-19 virus ...

Ship owners have refrained from newbuilding ordering activity this past week, but they’ve been rather active in the S&P market. In its latest weekly report, shipbroker Banchero Costa said that it was “fairly active in the second hand market. In the dry segment, the ‘White Hawk’ 61,000 dwt built in 2012 at Oshima was sold to Greek buyers for $15.7 mln. Again, there was a Greek buyer behind the purchase of the ‘Cygnus Ocean’ 58,000 dwt built in 2013 at NACKS which was sold for $13.2 mln. The Handysize ‘Ultra ...

The world is heating up, and its oceans are no exception. According to the International Panel on Climate Change (IPCC), the oceans absorb the majority of the heat created by greenhouse gas emissions, causing their temperature to rise. During this summer, the hottest on record in the Northern Hemisphere, unusually high temperatures were seen on coasts and seas around the world. The relationship between warming oceans and the shipping industry is complex and interdependent. Shipping accounts for 3% of world emissions – the same as Germany – and, as such, ...

The International Maritime Organisation’s (“IMO”) “carriage ban” rule makes it an offence, as of 1 March 2020, for ships to carry fuel oils that contain sulphur content higher than 0.5%, unless the vessel has a scrubber or the fuel is carried as cargo. We have been advised by bunker traders in Singapore of some risky, and perhaps unethical practices that have arisen since the beginning of 2020: 1. Before the carriage ban takes effect, the last opportunities for disposal or removal (where fuel oil with sulphur content of 3.5% still ...

The shipping markets have been reeling under the pressure of low demand, the product of the impact that the Coronavirus has had in the global supply chain. However, as shipbroker Intermodal and various analyst point out, when the outbreak is contained, demand for shipping is bound to increase, perhaps even more dramatically than it has retreated over the past few weeks. In its latest weekly report, shipbroker Intermodal noted that “the recent Coronavirus outbreak in China has led to a global health emergency by World Health Organization and it is ...

It is everywhere. Chatter about the coronavirus has taken over the pages of every single news website, creating a homogeneity of panic. It’s also turned that friend of yours (invariably called Dave), who bangs on about conspiracy theories, into talking like the world’s leading medical expert. We may have seen a bit of bounce in markets since the first announcement of the virus, but the reality is that we aren’t out of the woods yet. There’s plenty of rubbish floating about on the true impact and cause of the outbreak, ...

On 30 January 2020, the World Health Organization (WHO) declared that the outbreak of the Novel Coronavirus (officially the “COVID-19”) was a Public Health Emergency of International Concern. The virus has been spreading rapidly both within China and globally in recent months. Both the Chinese government and other countries have adopted various measures aimed at containing the spread of COVID-19. These measures are causing disruption to international trade and transport, with the consequence that many companies have found themselves either unable to perform their contractual obligations or at risk of ...