New fuels, new challenges
Shipping need’s for decarbonization has increased the needs for alternative fuels and the supply chains to support them. For the most part, both of these prerequisites don’t exist today. In its latest weekly report, shipbroker said that “the maritime industry is on the verge of a significant transformation as it navigates through complex challenges and opportunities in 2023. After a period marked by disruptions due to the COVID-19 pandemic and geopolitical tensions, the sector is expected to experience a rebound in global seaborne trade. This resurgence is not happening in isolation; it is paralleled by an increasing commitment to sustainability”.
Suez Canal to raise transit fees by 15pc
Egypt’s Suez Canal Authority said it will raise the toll for oil tankers and other large vessels passing through the waterway by 15 percent effective Jan. 15.
The Increased toll applies to tankers carrying petroleum products, liquefied petroleum, liquefied gas or chemicals as well as cargo container ships, car ferries and passenger ships, the authority said in a circular posted on its website.
The Toll for dry bulk cargo, general cargo and roll-on-roll-off vessels will rise by only 5 percent, it added.
The Suez Canal, one of the world’s busiest waterways and the shortest shipping route between Europe and Asia, is one of Egypt’s main sources of foreign currency, earning it $2.54 billion in the second quarter of 2023 alone.
WAF-UKC VLCC rate jumps more than 30 points
Dirty freight rates for the Very Large Crude Carrier West Africa to UK-Continent route jumped to a 16-week high Oct. 13, with market participants citing firming sentiment, improved demand and a tightening tonnage list.
Platts, part of S&P Global Commodity Insights, assessed wet freight on the 260,000 mt WAF-UKC route at w75 on Oct. 13, up w18 from the previous day and w32 from the 19-month low of w41 it had hit just a week earlier on Oct. 6.
In the evening of Oct. 12 it was reported that in the morning Exxon had placed the Maran Antiope on subjects for a 260,000 mt cargo loading in Nigeria and discharging in UKC off a Nov. 4 laycan, at w76.75.
Diesel is subsidising other fuels in Asia
The Profit for turning a barrel of crude oil into refined fuels in Asia has slipped to the lowest in three months, even though the margin on diesel remains elevated.
The Profit, or crack, on making products at a typical Singapore refinery from Dubai crude fell to $4.07 a barrel on Monday, the lowest since July 10 and down 74 percent from the recent high of $15.40 on Aug. 28.
The Decline has been driven by weakness in producing fuels such as gasoline and naphtha, even as the margin on middle distillates has performed strongly.
The Trend for refining in Asia is increasingly characterised by strong margins for middle distillates, which are enough to offset weakness in gasoline and even losses for naphtha.
Ship recycling industry is moving forward
With an increasing number of ship recycling yards moving towards implementing the Hong Kong Convention, conditions seem to be changing rapidly towards an exciting future. In its latest weekly report, shipbroker said that the ratification of the Hong Kong Convention (HKC) has brought major new developoments, as already, almost all the yards in India, are now fully compliant. Additionally, the shipbroker added that in the latest annual Tradewinds Ship Recycling Conference “there was confirmation from the Bangladeshi delegates that four of their yards are HKC approved by NK Class and showing good momentum in seeing other yards in Chattogram work towards HKC compliancy and, importantly, looking at acceptable avenues for the downstream waste management”.
Navigating the maritime landscape
Greece continues to hold a strong position in the maritime industry, demonstrating resilience and remarkable expansion. As reported by the Union of Greek Shipowners (UGS) in its 2022-23 annual report, the total capacity of the Greek merchant fleet, currently consisting of 5,520 ships, has grown by 50 percent during the last ten years. This has cemented Greece’s position as the world’s largest ship-owning nation.
Captain George Tsouris is S5’s Global Sales Manager, based in Greece. Here, he offers an in-depth exploration of Greece’s current state of affairs, shifts in market dynamics, and the digital transformation making waves across ship agencies and ports.
Shipping market outlook – end q3 2023 forecast values
High energy prices and aggressive interest rate hikes will lead to slow economic growth in western economies which could potentially spread to Asia. High inflation and monetary measures to combat the higher prices will likely impact consumer sentiment and investment spending. Tight monetary policy aimed at cooling down economies may also hamper investment appetite due to lower liquidity and higher credit risk. It is difficult to predict any potential escalation or de-escalation in the Russia-Ukraine conflict, and the duration and ramifications of sanctions and embargoes are uncertain.
Less conversation, more action on DEI
Ahead of the upcoming WISTA International Conference and AGM, WISTA International President, Elpi Petraki, outlines the linkage between diversity and sustainability to highlight why action – not words – is needed to implement systemic change.
When we talk about creating a sustainable future for the maritime industry, it’s important to remember that the definition of sustainability has more than one dimension.
As well as adopting solutions that reduce the impact of shipping on the environment, for example, shipping must sustain itself by attracting the next generation. Doing so means that we must understand that many millennials and Gen Z professionals assume diversity and protecting the environment are working principles, rather than aspirations.