EU ETS: shipping companies now know who to deal with
Further to our previous articles on the EU’s Emission Trading System (ETS), shipping companies have now been informed which Administering Authority they will have to deal with when surrendering their EU emission allowances (EUAs).
On 31 January 2024, a list was published showing which shipping companies have been allocated to which Member State’s Administering Authority within the EU ETS. Shipping companies can now find their allocated country by searching the list for their name or IMO identification number.
Shipping companies that are registered in an EU Member State are not shown on the list, because they are automatically allocated to the Member State in which they are registered. Companies that are not in an EU Member State have been allocated to the place where they had the most port calls in the previous four years.
Ship recycling market still plagued by lack of available tonnage
A Lack of tonnage and sluggish activity throughout, has continued to be the norm in the ship recycling market over the past week, although there has been a slight shift of momentum in some markets. In its latest weekly report, Best Oasis (www.best-oasis.com), one of the leading global cash buyers of ships, said that “this week, there has been a slight improvement in the ship recycling industry in India. However, the demand is still lacking, leading to a state of confusion and uncertainty about how long this situation will persist. Bangladesh is currently facing a slow pace in its market, with only a limited number of buyers seeking to acquire tonnage.
LNG shipping rates could soften in the years to come
The LNG shipping market could be headed towards a softer era, in terms of the level of freight rates, as supply dynamics are expected to make an impact. In its latest weekly report, shipbroker said that “the Biden administration’s decision to temporarily halt new LNG export approvals has injected new uncertainty into global gas markets. With America emerging as the top LNG exporter in 2023 ahead of Australia and Qatar, the policy shift clouds projections of future supply, demand and price dynamics. While currently operating US projects can continue to export, the pipeline of proposed export capacity will be stalled as the government reviews the climate and economic impacts. For context, the US was the third largest exporter in 2019, with half the exports of the previous year.
FBX index February 2024: settling into a temporary new normal
January was clearly a volatile period, but by the end of the month it appears the developments are beginning to cool off.
Asia to Europe trades, which are the ones most heavily impacted by the Red Sea crisis, saw spot rates level out and decline ever so slightly towards the end of January. This is not quite the case yet for the head haul Pacific rates. A reasonable interpretation of the developments includes two core parameters: Fear and Chinese New Year.
Tanker market and Venezuela’s oil
The Tanker market could be impacted by Venezuela’s oil supply moving forward. In its latest weekly report, shipbroker said that “despite a partial lifting of sanctions against Venezuela in October last year, the US is now set to reimpose sanctions on the country’s oil industry in April, due to insufficient progress towards holding free and fair presidential elections; a key condition of sustained sanctions relief. The original deal which was to last for a period of six months, saw the return of Venezuelan crude to the mainstream market and an increase in cargo liftings by largely non dark fleet tankers as traders and charterers became confident in lifting Venezuelan barrels once again”.
According to Gibson, “during this period, Venezuelan crude exports have increased but there remains some ambiguity. According to the AIS data, flows have averaged 470kbd over the past three months compared to 370kbd between August and October, whilst the market also saw the return of buyers in India.
Dry bulk market: a mixed bag for capesizes this past week
Throughout the week, the capesize market experienced a mix of subdued and positive conditions across different regions. The Pacific started with a marginal decline in rates on C5 due to a lack of coal enquiry and port closures in North China causing uncertainty. As the week progressed there was an increase in volumes including coal enquiry from East Coast Australia to China but rates on C5 continued to decline. By mid-week there was a positive turn in the Pacific and South Atlantic, with the BCI 5TC experiencing a notable increase, attributed to a longer cargo list in the Pacific and the resurgence of coal in the market, while further port closures in North China added complexity. In the Atlantic, a shift towards positional conditions was noticeable, especially from South Brazil and West Africa. Premiums were being paid for tonnage capable of arriving within February.
Maritime single window – advancing digitalization in shipping
This year 2024 marks a milestone in the acceleration of digitalization in shipping – the mandatory “Maritime Single Window”.
The requirement under the Convention on Facilitation of International Maritime Traffic (FAL), requires Governments to use a single digital platform or “Maritime Single Window” to share and exchange information with ships when they call at ports, since 1 January 2024. This will streamline procedures to clear the arrival, stay and departure of ships and greatly enhance the efficiency of shipping worldwide.
IMO Secretary-General Arsenio Dominguez said: “Digitalization is critical for greater efficiency in shipping. The Maritime Single Window delivers information between ships, ports and government agencies quickly, reliably and smoothly.”