The dry bulk fleet’s net growth this year, won’t surpass the 3% mark, marginally higher than 2022, but lower than both 2021 and 2020, maintain the favorable fundamentals picture of the past few years. In its latest weekly report, shipbroker Intermodal said that “as we approach the end of 2023, it becomes pertinent to examine the development in the supply of bulk carriers throughout the year. During the initial eleven months of 2023, the industry witnessed the commissioning of 416 bulk carriers, culminating in a total deadweight tonnage (DWT) of ...

The shipping sector’s decarbonisation presents a considerable challenge. Maritime transport is a key enabler of global trade and contributes 2%-3% of total global greenhouse gas (GHG) emissions. If shipping were a country, it would be in the world’s top 10 emitters. The main source of emissions is the combustion of fossil fuels. The key to decarbonising the industry lies in alternative, low-carbon fuels. Vessel replacement and retrofitting to adapt to alternative and often more expensive fuels requires significant investments. Alternative fuels, such as methanol, hydrogen and ammonia, are technologically immature ...

In the final quarter of the year, the outlook for seaborne reefer trade has weakened with cargo demand now expected to post a second consecutive year of decline. Meanwhile, transit restrictions on the drought-stricken Panama Canal are starting to impact vessel capacity serving exports of perishables out of the West Coast of South America. A convergence of factors, ranging from climate impacts on key fruit crops, to weak Chinese demand and geopolitical tensions, have dampened the short-term outlook, with total seaborne reefer cargoes for 2023 forecast to decline -0.5% YoY, ...

Tanker market participants are waiting for the 2024 crude oil supply strategy, from OPEC members and other major producers. In its latest weekly report, shipbroker Gibson said that ‘as we edge closer to 2024, oil markets have increasingly begun to question what OPEC’s strategy for next year might look like. Under the current arrangement, production is due to rise by 2.375mbd in January if all producers chose to utilize their quotas. Few market participants expect the taps to be turned on come January, but noises are being made within the ...

Capesize For the first half of the week, the market faced subdued activity, particularly in the Pacific with a slight downward movement on rates on C5. The Atlantic market also experienced limited activity, with discussions on C3 reflecting a somewhat subdued sentiment. As the week progressed, the Pacific saw lower trading volumes, resulting in a decline in market activity and increased pressure, with rates on C5 dropping by approximately a further 85 cents. However, the Atlantic witnessed heightened activity late in the day, particularly originating from South Brazil and West ...

The Drewry LNG Shipping Equity Index declined 7.5% YTD (as of 16 November 2023), underperforming the S&P 500, which surged 17.4% during the same period. The share prices of Nakilat fell 7.4%, Flex LNG 5.4% and Golar LNG 4.6% YTD, while in the last one month alone, Golar LNG’s stock price crashed 9.7%, Nakilat 6.7%, but that of Flex LNG was almost flat. LNG shipping stocks were affected by relatively softer LNG shipping spot rates this winter and lacklustre spot demand. In 2Q23, Nakilat’s total revenues grew 5.8% YoY to ...

Iron ore imports from the EU have been on the decline, with 2023 proving to be no exception. In its latest weekly report, shipbroker Banchero Costa said that “2023 has been so far a positive year for global iron ore trade. In Jan-Oct 2023, global loadings of iron ore increased by +5.1% y-o-y to 1,343.8 mln tonnes, from 1,278.9 in the same period of 2022, based on AXS Marine vessel tracking data. It is also just above the 1,320.1 mln tonnes loaded in Jan-Oct 2021, which was the last all-time ...

In the last week of November, the crude oil freight market showed continued weakness in sentiment, although earlier expectations pointed to a recovery in the very large crude carrier (VLCC) segment. At present, the market appears to be struggling to find a balance between the availability of ships and the still erratic growth in demand. With the ongoing winter season in December, there is optimism that momentum will pick up and concerns about tight supply have gradually eased. In particular, the inflow of Saudi Arabian crude oil to various destinations ...

The Court has recently decided “an old chestnut”, namely which version of the York-Antwerp Rules (YAR) applies pursuant to clause (3) of the standard Congenbill 1994 form. This has been debated for years. The Court held that the general average (GA) adjustment in this case should be conducted under YAR 2016, not YAR 1994. In Star Axe I LLC -v- Royal and Sun Alliance Luxembourg S.A. & Others (Star Antares) [2023] EWHC 2784, between September 30, 2021 and October 4, 2021, the Claimant carrier issued seven bills of lading on ...

The panamax market has been on a rally over the past few days. In its latest weekly report, shipbroker Xclusiv said that “on Friday 17th November 2023, BPI hit 1,874 points and the weighted average of the 5 T/C routes reached USD 16,868. The Panamax index hasn’t seen these levels since 27th October 2022, when the index stood at 1,900 points. The BPI has increased about 30% the last 10 days in order to reach almost a 11 months high. The route Skaw-Gibraltar Transantlantic round voyage, has significantly boosted the ...

When managing freight, diversity is a characteristic that businesses should look to instil in their supply chains. Freight diversification is a strategy that shippers use that involves multiple modes of transportation, carriers and routes to get their goods from origin to destination. In supply chain management, this strategy is deployed to reduce risk and avoid overextension in one aspect of the supply chain. Diversifying your freight options means that even when one mode or carrier in your supply chain has been disrupted, other goods are still able to move despite ...

In the first ten months of 2023, coal shipments to advanced economies fell by 17% y/y, as demand for electricity declined and the share of electricity produced using renewable energy rose. Also slowed economic activity and high energy prices affected electricity demand. Between January and August, electricity production in advanced economies fell by 4% y/y, according to data from the International Energy Agency. In 2023, measures against high inflation slowed economic growth in advanced economies. The International Monetary Fund estimates GDP in advanced economies will grow by only 1.5% in ...

More newbuilding orders were submitted last week, as owners are eager to book more berths, ahead of a capacity overflow among major yards. In its latest weekly report, shipbroker Allied said that it was “another fairly busy week for contracting, with a good number of orders outside of the bulker and tanker sectors in contrast with the week prior. In the dry bulk sector, Wisdom Marine continues to invest in Handysize vessels and now has around 10 vessels on order. On the tanker side, buying appetite was focused on the ...

During the fourth week of November, larger ship categories maintained their stability from preceding days. Notably, the Panamax vessel size exhibited noteworthy gains. Meanwhile, the uncertainty surrounding a stronger momentum for the Capesize segment appeared to have diminished, showing signs of an upturn. Of particular interest is the observation that the surge in demand tonne days for Capesize vessels, noted since mid-October, played a pivotal role in creating a more robust freight environment. This, in turn, contributes to a more optimistic outlook as we approach the end of the month. ...

In the vast expanse of the world’s oceans, a transformation is underway. The international shipping sector, made up of thousands of massive cargo ships laden with many of the goods we buy, emits carbon dioxide (CO₂) roughly equivalent to the entire country of Germany. Our research emphasises the need for immediate action. Reducing shipping emissions by 34% by 2030 is necessary to stay on course with the Paris Agreement’s 1.5°C goal. But with low-carbon fuel pipelines unlikely to be available at the necessary scale until at least the 2030s, how ...