Some Current News from the Shipping Market All Around the World:
A look into the Greek maritime fleet
To Mark the start of Capital Link Annual Greek Shipping Forum this week, we take a look at the Greek Maritime fleet using VesselsValue data. The infographic highlights the Greek fleet breakdown by vessel type, top owning nations, S&P transactions, top Greek owners, CII distribution, and the most valuable Greek vessels. Bulkers are the most popular vessels within the Greek fleet, with a total of 2,272 vessels, followed by Tankers with 1,450 vessels and Containers with 430 ships. Tankers are the most valuable sector for Greece, worth USD 61.03 bil. This sector has recently seen extraordinary increases in values, which have hit 13-year highs over the last year. The price of a 15-year-old Aframax of 110,000 DWT has surged by c.144 percent year on year from USD 16.17 mil to USD 39.43 mil.
Ship recycling: positive steps made for the industry
The Ship recycling industry is undergoing significant changes in various countries. In its latest weekly report, the shipbroker said that “this week saw an improved turnout (compared to last year) for the independent conference held in Amsterdam with main discussions surrounding the EU approved ship recycling facilities and regulations. The positive was that a European policy Officer was in attendance, unlike last year. The EU basically commented that a proposition will be submitted by 2025 for the changes to the EU Waste Regulation after due diligence from all the member states and other stakeholders in the industry.
Rightship: climbing cases of seafarer abandonment place profits above people
Reported rates of seafarer abandonment show no signs of slowing, with current figures listing 9,925 men and women cast adrift over the last 20 years. This is according to the latest research from the leading ESG-focused digital maritime platform, RightShip, as part of an urgent review to highlight this concerning trend and spur the industry to action. The research demonstrates that cases of reported abandonment have been on the rise for five consecutive years, with other notable peaks forced by the 2009 financial crash and the 2017 MLC convention. Most recently the pandemic and conflict-induced abandonments have resulted in a steady uptick, with cases recorded in countries across all continents, led by the UAE, Spain, and Turkey.
LNG shipping primed for a stellar 2023
The LNG shipping market is about to experience a great year earnings-wise, at least according to existing fundamentals projections. In its latest weekly report, the shipbroker said that “in a market where LNG spot prices follow a downward trajectory since late December, period charter rates for LNG vessels are also marginally retreating from their firm positions. Yet, owners still require firm figures amid a positive demand outlook, especially for 2H2023”. According to Intermodal’s Research Analyst, Ms. Chara Georgousi, “in 2022, LNG imports have skyrocketed mainly driven by the war in Ukraine which prompted growth in wealthy European countries. In the meantime, extended covid restrictions in China were reflected in lower imports as the country largely shifted away from the spot market.
Dry bulk market: Capesize market’s weakness still evident
As China returned from its Lunar New Year holidays there was hope in some quarters that the market would see a recovery from the steep declines of January. There was optimism that a floor had been found, as there were only marginal daily falls. However, the rot continued with weaker fixtures reported generally and a largely flat C5 West Australia market. The Capesize TC Average finished the week at $3,561. The backhaul C16 route saw limited activity, a fixture from RBCT to Denmark at $6 led the TC route down. There was activity from Brazil and a Newcastlemax fixed at $17.00 for index dates. By the finish, Baltic Capesize fixtures were reported at $15.50/16.00 levels.
Tankers: higher crude production would be welcome
The Tanker market and most notably the larger sizes could benefit from higher production figures, but at things stand no such development is close to fruition. In its latest weekly report, the shipbroker said that “this week, the Joint Ministerial Monitoring Committee (JMMC) of OPEC+ held a virtual meeting where they agreed to maintain current production levels. This comes after their announced output cut in October 2022 of 2 million bpd from November until the end of 2023; driven by concerns about the state of the global economy, the oil demand outlook, and a subsequent drop in crude prices.
Go your own way
Maersk tells Drewry that its integrator strategy was incompatible with being part of an alliance. Compromise is an essential ingredient to any healthy relationship. But things change and individuals’ priorities shift over time. At the point when one, or both, parties feel like the other is preventing them from being themselves, it is probably time to call it quits and move on separately. Container shipping’s high-profile divorce between Maersk and MSC in the 2M alliance can be viewed as a classic case of two partners drifting apart since they first hooked up in 2015.
Tankers: Saudi Arabia’s seaborne crude oil exports up 17.2pc in 2022
The Shift in seaborne crude oil volumes was rather obvious during 2022, with the surge of exports from Saudi Arabia quite notable. In its latest weekly report, the shipbroker said that “2022 has turned out to be a very positive year for crude oil trade, despite the surging oil prices and risks of economic recession. In the full 12 months of 2022, global crude oil loadings went up +8.5 percent yo-y to 2,047.3 mln tonnes, excluding all cabotage trade, according to vessels tracking data from Refinitiv. This was well above the 1,886.3 mln tonnes in Jan-Dec 2021, but slightly below the 2,110.5 mln tonnes in the same period of 2019”.