LNG delivering decarbonisation
SEA-LNG is pleased to share its overview of LNG as a marine fuel in 2022-2023 with you. This resource highlights how the shipping industry has advanced along the LNG pathway to decarbonisation in 2022 and outlines what progress is anticipated in 2023. The document is illustrated with infographics and contains key statistics on the sector that we encourage you to use. 2022 was another very strong year for LNG vessel orders, with numbers almost equalling those in 2021, the record year to date, despite exceptionally high LNG prices. The growing, multisector orderbook and continuing build-out of infrastructure reflect the recognition from ship owners and fuel suppliers that LNG delivers immediate and important local air quality benefits and GHG compliance and offers a low-risk, incremental pathway to decarbonisation.
Newbuilding orders for Chinese-built dry bulk carriers on the rise
Newbuilding activity for 2023 has began to pick up the pace, with the main focus, so far, being orders on Chinese shipyards, mainly for dry bulk carriers. In its latest weekly report, shipbroker said that “newbuilding orders over recent weeks have been focused on Chinese shipyards, particularly regarding dry bulk vessels. With Chinese New Year celebrations just around the corner, we might expect a reduction in such deals reported over the next couple of weeks. Already this year, there have been reports of over 10 Ultra/Supramax size vessels being ordered, perhaps as an early indication that 2023 could continue last year’s trend when, for dry bulk carriers, almost twice as many were ordered compared to Panamax vessels, and considerably more than Handysize or Capesize. There have also been reports of another FPSO on order, unsurprising given the current focus on energy imports as a consequence of the European Union’s relationship with Russia and pressures to move towards alternative sources of energy. This year might also see record interest in the LNG sector as more industry players want to be part of the trend”.
Ship recycling “slow steaming” into 2023
The Ship recycling market has, so far, failed to impress at the beginning of 2023. In its latest weekly report, shipbroker said that “the quiet start to the year has continued this week with the lack of actual sales activity continuing. Amid the weaker freight markets in the container sector and supply pressure from fleet growth (more new buildings to arrive on the seas), many are predicting a deluge of container units to hit the recycling market. This has, however, not developed yet and our predictions are that yes, we will see a larger supply this year, but the potential flood of such tonnage will arrive towards the latter part of 2023 and fully through the whole of 2024. Whilst the rates have weakened considerably, many are on long term charters and therefore we will not see these vessels until they deliver at the back end of their charters. There is still various market rumours surrounding the potential sale of 10 container units that have been discussed in the market from clients of Wan Hai Lines. The Owners are limiting the sales to a small number of HKC approved recycling yards in India, which is affecting the buying interest in the units. We do hope however that there should be a clearer picture surrounding the final outcome of these units next week”, the shipbroker said.
Maritime progress at risk over fears of digitalisation: Wärtsilä report
Despite 78 percent of industry professionals agreeing that change and technological innovation is a positive thing for the maritime industry, almost half (45 percent) admit to having a volatile attitude towards technology and over a third (36 percent) say they are actively resistant to change. This is according to the technology group Wärtsilä’s ‘Debunking the Mythical Beasts of Maritime Digital Transformation’ report. The report also reveals that as many as 18 percent do not think that the industry is unified in its understanding of digitalisation and why it is needed.
Michael Christiansen, Vice President, Smart Vessel, Wärtsilä comments: “This report makes clear that the industry agrees that digitalisation is essential to the future of shipping. But little tangible progress has been made to date because of wildly different and vague interpretations of what digitisation actually means. What’s interesting is that our report draws striking parallels between the fears and misunderstandings that gave rise to vivid stories of famous mythological sea monsters that live on in folklore and highlights the apprehension that many modern-day maritime professionals feel towards the largely unchartered ocean of digital transformation.”
Asian markets are dominating Russian crude trades
The Tanker market is expected to continue being influenced by the structural shift of seaborne oil flows. In its latest weekly report, shipbroker said that “rumor has it that the New Year has come, to set the pace in, for Russia to continue hostilities against Ukraine. Ten months on the go, into Russia’s latest invasion, the outcome of the war appears to be unclear. The Russian military seems incapable of taking either Kyiv or occupying major territories of the country. Ukrainian forces have gained success and could well continue to make progress in regaining field. The war also could settle into a more protract conflict, with neither side capable of making a decisive breakthrough in the near future”.