For H2 2024: container shipping market outlook
In a five-part series mid-year we take stock of shipping markets in the first six months of the year and look ahead to the remainder of the 2024 with experts Maritime Strategies International (MSI).
In this second part the Seatrade Maritime Podcast talked to Daniel Richards from MSI, about the developments in the container shipping market and the outlook for the remainder of the year.
Indian navy rescues 9 crew from tanker capsized off Oman
More than a day after the search began for the missing crew of a small oil tanker, the Prestige Falcon, that capsized off Oman, the Indian Navy is reporting that it has found nine of the 16 crewmembers alive. The Oman Maritime Security Center confirmed the recovery while also reporting that a tenth crew member had been found deceased. The search is ongoing for six additional crewmembers.
A spokesperson for the Indian Navy said they have faced “challenging weather conditions as the area is experiencing rough seas and strong winds.” Few details were released other than a picture showing a lifeboat. They reported that eight of the individuals that were rescued were Indians and one is from Sri Lanka. There were a total of 13 Indians in the crew of the vessel and three from Sri Lanka.
Ship managers call for better reporting
The casualty rate for seafarers experiencing enclosed space accidents has almost doubled while the rates for injuries from falls and from rescue and survival craft accidents have remained fairly consistent according to new data analysis from InterManager. The trade association for ship managers highlights the persistent rates while saying that it also finds a significant lag in reporting or underreporting of incidents.
The group analyzed the data publicly available on the IMO’s Global Integrated Shipping Information System (GISIS) as well as elsewhere concluding that accidents onboard ships are not decreasing. They believe there is a lack of transparency and hesitation in sharing accident data which the group says also undermines the statistics.
Its analysis shows that out of the 538 incidents (including 50 near misses) since 1980, only 19 percent are recorded in GISIS. Improving reporting they believe is the first step toward reducing accident rates.
The critical need for digital transformation: advancing the maritime industry
Aging fleets, rising demand for maintenance and conversion, as well as expanding offshore oil, gas and renewable projects are driving the growth of the global ship repair and maintenance services market. But for the industry to reach its projected market size of $53.23 billion by 2032, digital transformation must play a central role.
Ship repair and maintenance businesses play a crucial role in maintaining the efficiency, functions and safety of a wide range of global maritime fleets. However, modern vessels’ complex requirements, supply chain and logistics disruptions, as well as regulatory compliance for international standards and environmental regulations all require efficient and innovative solutions.
Yangzijiang to invest $412 mn in shipyard expansion
The Singapore-listed Chinese shipbuilder plans to acquire 866,671 sq metres of land in Xinqiao Park of the Jingjiang Economic and Technological Development Zone in Jingjiang City to set up a base for clean energy vessel manufacturing including LNG.
With 1,320 metres of shoreline on the Yangtze river the land for the new project and located adjacent to the shipbuilder’s existing Jiangsu Yangzi Xinfu Shipbuilding.
Hub and spoke versus direct services in container shipping
In 2024Q2, global deepsea fleet capacity (that is, capacity available to shipping lines) is estimated to have been 11.5 percent higher than in 2023Q2, reflecting the arrival of further new vessels into the market. During the same period, capacity scheduled to be deployed by the shipping lines (that is, capacity allocated by the shipping lines to trade lanes) has grown at a much slower rate of 1.8 percent.
As shown in the following graph, fleet capacity has been continually growing faster than scheduled deployed capacity since around 2022Q4, with the gap between the two enlarging.
Cosco shipping ports Abu Dhabi terminal surpasses 5 mn teu mark
The terminal at Khalifa Port offers over 20 international services connecting to 60 ports and the six additional routes this year have increased volumes 35 percent. The new services have helped to push the terminal past the milestone of handling 5 million teu since it opened in December 2018.
Last year the terminal implemented first autonomous truck system in the Middle East with six such vehicles for loading and unloading.
Looking ahead, Cosco Shipping Ports is committed to enhancing the Middle East hub port, developing intelligent port solutions, upgrading automation, and promoting green, low-carbon operations,” China Cosco Shipping said in a statement.
Thailand explores direct shipping
Bangladesh’s annual maritime trade with Thailand stands at two billion dollars. In 2015, Bangladesh and Thailand agreed to launch coastal shipping service. In February 2016, a team of 11 people, including the governor of Thailand’s Renong Port, visited Bangladesh. In December 2021, the Chattogram Port Authority signed a Memorandum of Understanding with the Renong Port Authority for creating a direct shipping route with the Chattogram port.
Omor Faruk, secretary of the Chattogram Port, said, “A Memorandum of Understanding was signed with Thailand for direct shipping between the two countries. Both the countries are trying to implement it. The high-level delegation of Thailand held a meeting with the chairman of the port and senior officials. After that they visited the jetty.