Why skills development is vital for shipping’s green transition
Moving towards a low-emission global economy will create tens of millions of new ‘green jobs’ across sectors including shipping. The renewable energy industry alone is projected to generate 38.2 million jobs by 2030. The effects of the green transition on employment are also requiring workforces across multiple sectors to reskill and upskill. This, coupled with new technologies, such as artificial intelligence (AI) and digitalization, is leading to increased calls for investment in skills to ensure a thriving future workforce in 2030 and beyond.
Newbuilding orders pick up
The newbuilding market has picked up the pace during the past week, while a significant number of deals was reported in the S&P market as well. In its latest weekly report, shipbroker said that “the number of newbuilding contracts picked up, following the particularly quiet preceding week. Numerous sources have confirmed HMM’s order for 9 container vessels that were reported at the LOI stage two weeks ago. Over half of contracts placed were placed for tanker vessels, of which 8 were for LR1/2 vessels and the rest MRs. Market participants are likely encouraged by the continued strength in the tanker market, SnP activity and, as noted last week, the relatively low number of vessels on order.
DNV: use of biofuels in shipping
The use of biofuels or biofuel blends is one of many ways to comply with the IMO’s strategy on the reduction of GHG emissions from ships, and DNV has seen an increasing interest in these new fuels. This technical news aims to clarify the regulatory status and other considerations on the usage of such fuels. DNV has received many requests regarding the safe operation of ships using biofuels and/or biofuel blends and how to comply with international regulations when using these fuels.
Ukraine’s dry bulk exports have plunged 77.8pc during one year of war
“On Friday 24 February, one year has passed since Russia’s invasion of Ukraine. During that year, dry bulk exports from Ukraine have dropped 77.8 percent compared to the same period a year earlier, causing a decline in global dry bulk volumes. Seaborne exports have been restricted to agricultural goods and even those have been limited,” says Filipe Gouveia, Shipping Analyst at BIMCO. Ukraine’s sea ports were under a blockade from the start of the war until the end of July 2022 when the Black Sea Grain deal was signed.
Ship recycling market livens up
The ship recycling market seems to have edged out of the “shadows” this past week, with activity quite notable. In its latest weekly report, shipbroker said that “steady enquiry, steady flow of tonnage and stable price levels currently provide balanced market conditions for Owners to reap the benefits of any potential recycling candidate. There are some speculative numbers being placed on the bidding table for smaller container vessels that become available, particularly for Bangladesh delivery. The quantity of recyclers in Chattogram that are in a position to offer for tonnage continues to remain limited due to the Letter of Credit restrictions, however this speculation by some cash buyers all leads to the fact that we may soon be seeing an ending to this lengthy scenario.
China’s fuel demand recovery could boost the tanker market
The tanker market could stand to benefit from an increase in China’s fuel demand. In its latest weekly report, shipbroker said that “China’s GDP is forecast to rally 3 percent y-o-y and reach 5.5 percent following the country’s exit from its strict zero-covid policy. The elevated economic growth will eventually lead to fuel demand recovery. Indeed, amid the sharp increase in passenger flights and road traffic, as well as signals that China’s massive refining sector is speeding up processing rates, there are undoubtedly a plethora of signs that the country’s demand for fuel is steadily recovering”.
EU formalises its plans for the expansion of the EU ETS into shipping in 2024
The EU Emissions Trading Scheme (“EU ETS”) is a legislative scheme by which the EU caps emissions of greenhouse gases from certain industries by requiring emitters to surrender emission allowances to offset the gases they emit. A limited number of emitters are granted some free emission allowances, but most allowances must be purchased in auctions arranged by the European Energy Exchange (the “EEX”), which allowances may then be traded, before being surrendered to a competent authority by the emitters. Hence, the EU ETS is a “cap and trade” emissions scheme.
Tankers: China’s oil demand could benefit VLCC trades
The VLCC tanker market could see an upward trend, thanks to increased demand from China. In its latest weekly report, shipbroker said that “China’s dramatic shift away from its strict zero covid policy at the end of 2022 defied expectations of a gradual reopening over the course of 2023. Inevitably fuel demand is now projected to grow strongly over the course of 2023, with the IEA predicting growth of 900kbd, whilst Refinitiv Oil Research forecasts crude imports gaining 10 percent year on year. However, resurgent Chinese demand raises several key questions.
Dry bulk market: capesizes still in dire straits
There was an overriding negative sentiment in the sector this week as the Cape 5TC average fell from $4,432 to $2,246 on Friday. This was largely led by the Atlantic and a number of fixtures are down significantly. However, it was also due to a lack of cargoes available. Owners are reportedly considering idling tonnage to wait out a recovery. The Pacific was busy with all of the miners in the market throughout the week, but the C5 route was fixing at $6.30 at the start to $6.05 by the end. There was very little activity from Brazil, with fixtures for end March dates reported in the region of $16.25.