Ship recycling activity has picked up considerably over the course of the past week, as a result of upcoming Easter Holidays and the Monsoon season in the Southeast Asian peninsula. In its latest weekly report, shipbroker Clarkson Platou Hellas said that “the latest spike in price levels appears to stem from an incentive from the end users in Bangladesh to place tonnage on their yards prior to their budget announcement in the first week of June. The rumors from the waterfront suggest that heavy import tax increases will be imposed ...

It is widely accepted that the relation between geopolitics and international trade is of strategic importance for national economic growth. Russia and China are two different players with different needs and interests. Russia from its side wants to diversify its energy export markets due to increasingly problematic relations with Western countries, while China on the other hand knows that Russia is the only exporter which can meet its requirements in doubled energy demand until 2040. The Yamal LNG project is one of the multiple petroleum development projects in the Arctic, ...

Providing newbuilding market data has always been a strong focus for Clarksons Research but in recent years there has been a growing need to better understand activity in the ship repair and refurbishment sector. In this week’s Analysis we discuss the reasons behind this interest and present some highlights from a new intelligence flow of ship repair activity now available on our World Fleet Register. In this week’s Graph of the Week we highlight CIC Changxing as the busiest repair yard in the world (by number of special surveys in ...

Improved fundamentals could provide an additional boost to freight rates for Suezmax tankers moving forward. In its latest weekly report, shipbroker Gibson said that “like all other crude tanker segments, Suezmax rates have been on a rollercoaster ride over the past six months. Earnings surged in the 4th quarter of last year, in part due to major Turkish Straits delays, in part due to marginal fleet growth. Of course, other factors were at play as well, such as higher Middle East/Russian crude exports in Q4 2019, prior to the re-imposition ...

Capesize The market saw a steep ascent from the depths of last week. The Baltic Capesize Index (BCI) 5TC opened on Monday at $5,099, although by Friday’s close most gains were lost, and it finished up at $5,737, a modest gain of $638. Improved sentiment stemmed from Atlantic-tightness combined with an open Colombia coal arbitrage. This in turn provided an influx of fronthaul cargo with minimal candidates, a much-needed injection in recent market times. The improved sentiment lent itself to escalations in the Pacific market. This led to West Australia ...

Our oceans are critical to so many aspects of our day-to-day lives. In the UK alone, they provide jobs for over 500,000 people, contribute more than £47 billion to the economy, and are the means through which 95% of all trade reaches the UK. Globally, we rely on our oceans for trade, food, energy and other valuable resources, as well as enabling environmental protection and international aid. Collectively, this is what has come to be known as the ‘blue economy’ and it’s estimated to be worth $3.2 trillion by the ...

In its latest monthly report, OPEC noted that average dirty tanker spot freight rates declined further in March, continuing the downward trend seen in the first quarter. Lower rates were reported in most dirty classes, mainly attributed to high vessel supply, while market activities remain thin, in general. Other factors, including refinery maintenance and weather also weighed on tonnage demand during the month. Average dirty tanker freight rates saw a drop from the previous month, as Suezmax and Aframax rates dropped by 13% and 9%, m-o-m, respectively. Clean tanker spot ...

Having weathered a difficult few years, the shipping sector continues to face many challenges. Ongoing economic uncertainty and conditions are likely to remain volatile for a number of years. However, overall confidence in the industry is reasonably stable and the sense is that “the worst is behind us”. CEOs and CFOs in the shipping sector need to ensure their businesses are in the best possible shape to capitalise on future opportunities and any industry upturn. This could mean looking for further ways to improve back-office efficiency and reduce costs – ...

Classification society DNV GL and Keppel Marine and Deepwater Technology (KMDTech), a subsidiary of Keppel Offshore & Marine (Keppel O&M), announced that they have signed a framework agreement to boost the uptake of liquefied natural gas (LNG) as ship fuel. The agreement covers potential newbuilding projects including LNG bunker vessels, small-scale LNG carriers and floating storage regasification units (FSRUs), as well as LNG related assets employing battery and hybrid technologies. “The signing of this agreement signifies another milestone in the close partnership between DNV GL as the leading classification society ...

Unprecedented factors have come into play in the dry bulk market, with shipbrokers expecting additional downward pressure, mostly in Capesize rates, moving forward. In its latest weekly report, shipbroker Intermodal said that “the tragedy in Brazil’s Vale Brumadinho where a tailings dam collapsed in January ranks among the world’s worst mining disasters. It continues to this day as the effects of the disaster ripple through local communities and the shipping industry”. According to Mr. Christopher Whitty, Director, Towage and Port Agency Division, “as most of us are aware, Vale is ...

The independent study report launched today has revealed that Greenhouse Gas (GHG) reductions of up to 21% are achievable now from LNG as a marine fuel, compared with current oil-based marine fuels over the entire life-cycle from Well-to-Wake (WtW). It also confirms that emissions of other local pollutants, such as sulphur oxides (SOx), nitrogen oxides (NOx) and particulate matter (PM), are close to zero when using LNG compared with current conventional oil-based marine fuels. The study, commissioned by SEA\LNG and SGMF, was conducted by leading data and consultancy provider thinkstep ...

The market had hoped that China would unveil a large stimulus package at the March NPC; but any expectation of a large boost to world growth and commodities demand has not come, yet. The current stimulus package is smaller; less potent and less positive for commodities demand than previous episodes of stimulus. This is because two-thirds of the stimulus comes via VAT cuts, and one-third from direct government spending. VAT cuts give companies money, which they may save, and will not translate into metals demand. In March 2019, the National ...

Last year, it was mostly tankers and containers which were the main candidates for ship recycling. As of late though and amid a growing unease regarding the dry bulk market’s immediate prospects, more and more dry bulkers are being considered for scrapping. In its latest weekly report, shipbroker Clarkson Platou Hellas said that “as we look forward to the annual Grand National horse race this weekend, Bangladesh continues to lead from the front of the recycling runners, maintaining their aggressive and healthy appetite. There seems to be no obstacle in ...

Singapore maintained its top position at the head of the 15 leading maritime capitals. Despite a somewhat weak trade cycle in traditional shipping and offshore oil and gas markets yet to recover, Singapore was able to retain its lead in three of the five pillars of the ranking: Shipping, Ports and Logistics as well as Attractiveness and Competitiveness. In the two remaining pillars, London is number one in Maritime Finance & Law, while Oslo is number one in Maritime Technology. On the overall ranking, Hamburg remains in the number two ...

Key US ports, leading global container lines and specialist car carriers will all be adversely impacted should the proposed US auto tariffs be implemented in the second quarter of 2019, according to an impact analysis published by global shipping consultancy Drewry. “In our analysis we assume tariffs will be imposed in 2Q19 (mid-May) and that US importers will start passing extra costs to consumers and supply chain stakeholders by 4Q19,” said Neil Davidson, Drewry’s senior analyst for ports and terminals. “We also assume some US importers will absorb all or ...