Global container equipment fleet growth picks up pace
Growth in the global pool of shipping containers is picking up pace on rising trade prospects and slowing box productivity, as disruption in the Red Sea and Panama Canal lengthen voyage transit times, according to the latest analysis from Drewry’s recently published Container Equipment Forecaster report.
Drewry estimates that the global box fleet rose 1 percent last year to 51.4 mteu, as a pickup in newbuild output in the final months of the year boosted inventories that had hitherto registered declines. And for 2024 it has upgraded its fleet projection with the expectation that the global pool will expand a further 2.3 percent over the year.
Deals for newbuildings and second hand vessels picking up
Shipbrokers’ reports this week have been flooded with more deals in both the newbuilding and S&P markets. In its latest weekly report, shipbroker Allied Shipbroking said that “this week brings fewer fresh orders than we have seen recently but still contains several substantial orders. In the tanker sector, we see continued momentum for VLCC contracting, with another dwt 320k duo being added to the size segment’s orderbook. The contracts come with an option for the vessels to be LNG DF, continuing the pattern seen this year for alternatively fuelled vessels in this size segment.
Australian coal flows to Asia hover above last year’s volume tonnes
In the final days of February, the dry bulk freight market appeared to maintain a relatively stable momentum, particularly evident in the large vessel size categories where rates remained close to the highs reached in the third week, notably on the Capesize Brazil to North China route and Panamax Continent to Far East route. However, there remains cause for concern regarding the recent market momentum, as the weekly growth rates in demand tonne days continue to decline significantly compared to the peaks observed at the end of last year.
Stagnation dominated the ship recycling market
The Ship recycling has remained unimpressive over the past week. In its latest weekly report, Best Oasis one of the world’s leading cash buyer of ships, said that “the ship recycling sectors across India, Bangladesh, Pakistan, and Turkiye are experiencing varying degrees of market stagnation and operational challenges. In Alang, India, the market remains stagnant with a continuous low demand for scrap vessels, a trend that has persisted over recent weeks. Bangladesh’s market is facing a decline, leading buyers to adopt a cautious wait-and-see approach. This cautiousness is further compounded by a non-supportive banking sector, influenced by a dollar liquidity crisis, which has led to selective approval of LCs and challenges in vessel acquisition due to banks’ delayed approval processes. In Pakistan, market conditions have not seen any shifts, maintaining the status quo from the previous week.
High waves, high claims: new study on container losses
In a comprehensive new study, we delve into the impact of weather on container stack collapses. Our findings show the impact of progressively increasing wave height, the quantified risk of high waves, and variance in weather exposure among different operators. Hopefully, the study sets the stage for a deeper dialogue within the industry about mitigating the impact of adverse weather on container safety. As the world economy develops, the volume of containerized trade increases steadily.
Ammonia trade flows about to blow up
Demand for seaborne transportation of ammonia is about to blow up in the coming years. In its latest weekly report, shipbroker said that “traditionally used in fertilizer production and as a component in chemicals and explosives, ammonia is now gaining attention due to its low-carbon properties which make it an attractive option for co-firing in power plants and as a feasible alternative fuel in the shipping
According to Intermodal’s Research Analyst, Ms. Chara Georgousi, “the global trade of low-carbon ammonia is expected to witness a significant surge, reaching around 69 million tonnes by 2040.
Emissions trading begins to bite
Emission trading systems (ETS) are “cap and trade” schemes that permit the emission of greenhouse gases in exchange for allowances. They are just one part of the ever-expanding web of environmental measures that are impacting the shipping industry with the aim of ensuring greater efficiency and more environmentally friendly shipping, particularly in reducing emissions.
IMO administrations are trying to do their bit with the introduction of EEXI and CII, on which we have written several articles, the latest one on CII.
Dry bulk market on the rise
The Week started on a subdued note as Asia observed Lunar New Year holidays, all three major mining companies active in the Pacific, contributing to an upbeat sentiment despite minimal activity elsewhere. Conditions were notably calm from South Brazil and West Africa to the Far East at the early part of the week, leading to a noticeable disparity between the bid and offer prices on C3. By mid-week it was rather a mixed market, the overall sentiment leaned towards a slight softening in the Pacific.
The case for green methanol in reducing shipping emissions
Green methanol has emerged as one of the leading solutions for reducing shipping emissions. However, despite its apparent benefits in reducing SOX and NOX emissions, it’s still not carbon-free, while costs are still very high. In its latest weekly report, shipbroker said that “green methanol is often touted as one of the leading alternative sustainable fuels for the maritime sector. It is relatively easy to produce, most ports around the world can handle it, and being liquid at ambient temperature, it is cheaper to store than other alternative fuels like LNG or Ammonia which require cryogenic tanks.