Lockdowns hinder the demolition market once again
The ships’ recycling market has sustained a halt over the past days, as a result of Ramadan holidays and the raging pandemic in India and large parts of Southeast Asia. In its latest weekly report, shipbroker said that having entered the holy month of Ramadan and lockdown restrictions across the Indian sub-continent looking set to continue due to a surge in domestic cases, many buyers seem to be coming more cautious due to the unpredictable nature of the Pandemic and subsequent effect to local sentiment and commodity markets. These current events may make it even quieter than usual with many end recyclers seemingly hibernating. Surprisingly, this is despite the Alang coastline being the most barren it has been in recent memory, with some major high-profile facilities laying completely empty. With Ramadan running into the Eid festivities, then into the monsoon season, who knows how the market will react during this normal slowdown in the dismantling process, but as domestic steel markets continue to improve, we surely should see an aggressive appetite return to the table once the markets return to some form of normality post-Ramadan.
International advisory panel unveils 9 pathways to support decarbonisation in maritime industry
The International Advisory Panel on Maritime Decarbonisation (IAP) formed in July 2020 by the Singapore Maritime Foundation (SMF), with the support of the Maritime and Port Authority of Singapore (MPA), has submitted its recommendations to the Singapore Government. The IAP has identified nine pathways to maritime decarbonisation, including policy options to accelerate the transition and ways in which Maritime Singapore can support the industry’s decarbonisation. The IAP is co-chaired by Mr Andreas Sohmen-Pao, Chairman of the Singapore Maritime Foundation, together with Mr Wong Weng Sun, Chairman of the Board and Governing Council of the Singapore Maritime Institute. It comprises 28 other leaders from maritime and related organisations, including shipping associations, shipping companies, port operators, energy companies, engine makers, shipyards, insurance and finance players, as well as academia.
Newbuilding orders are booming, reaching 13-year highs
A rapidly improving sentiment among owners has prompted the most active first quarter of the last 13 years, when it comes to newbuilding orders. In its latest weekly report, shipbroker commented this week that the newbuilding boom has now resulted in the most vessels ordered in a first quarter for the major trading types in 13 years. The big three countries (Japan, South Korea, and China) have a three-year minimum delivery time. H-Line Shipping ordered 2 x 210,000 dwt Ore carriers at Qingdao Beihai for delivery late 2023/early 2024 at $67 million. Vessels have been given out TC for a 10-year charter to Rio Tinto in Australia, with the option of an extension. Australia and China trade in iron ore. Option three allows for a total order of six vessels in series. Eastern Pacific ordered three 210,000 dwt ore carriers from New Times for $67 million for delivery in late 2023 or early 2024 for the same tender. Adnoc Logistics & Services has ordered 1 x 320,000 dwt from Daewoo for delivery in April 2023 for $85.1 million. Four vessels are now on order as a result of the option being exercised.
Capesize dry bulk earnings break record on the back of strong 2021-start
As daily earnings for the largest of the dry bulk ship types – capesize – reached USD 28,520 on Friday 16 April, a ten-year-high was attained. However, whereas Fridays’ daily average time charter equivalent earnings (TCE) are seasonally strong, they are not special by their own merit. Only when seen as a part of the overall elevated freight rate levels so far in 2021, currently at a daily year-to-date average of USD 18,133, does it qualify as a candidate for BIMCO’s Shipping Number of the Week. When comparing the 2021 year-to-date daily average capesize earnings to the averages of previous full years, it has already – not even four months into the year – exceeded that of 2019 (USD 18,025). This happened on Friday, and we must look all the way back to 2010 to find a higher level. In 2010, the daily average reached USD 33,298 as Chinese demand single-handedly ensured the recovery of the dry bulk market following the Global Financial Crisis.
Future fuels in the maritime sector – building the bridge to hydrogen
International seaborne transportation is a primary driver of international trade and the global economy, with approximately 80 percent of global trade by volume carried by ships at sea. The shipping sector has experienced steady growth for decades, although carbon dioxide (CO2) is the primary greenhouse gas (GHG) emitted from marine shipping. In 2012, CO2 and GHG emissions from international shipping were estimated to be around 2.1 percent and 2.2 percent of global emissions, respectively. The International Maritime Organization (IMO) has since developed an initial GHG strategy that sets goals that international shipping should reduce total annual GHG emissions by at least 50 percent by 2050 with zero emissions targeted by the end of the century, consistent with the Paris Agreement temperature goals.
Tankers become the “most-wanted” type of ship in the s&p market
Tanker secondhand tonnage is quickly becoming a “hot” commodity in the market. In its latest weekly report, shipbroker Intermodal said that after a series of months where the dry bulk sector was attracting most of the buying interest, tankers SnP activity spiked in the previous weeks. Over the last week, prevailing buying interest in the wet sector continued to grow with the spotlight being on modern MRs and vintage VLCCs. A total of 8 deals were reported in the MR segment, the vast majority of which were built in South Korea and were less than 5 years old up to Resales, while a couple of them were built in Japanese yards aging around 10 and 20 years, respectively.