Newbuildings: more orders for dry bulk carriers
More Dry Bulk carriers have been on the shipowners’ radar over the past week. In its latest weekly report, shipbroker Allied said that “on the dry side, we can report an order from Akmar for an Ultramax vessel with DACKS, bringing its total at the yard to three such vessels, and up to 2 firm vessels from Greek buyers at Nantong Xiangyu. Despite the fairly consistent contracting seen within the Ultramax sector over the quarter so far, around 20 vessels, bulker newbuilding orders have seen a decline year on year which has been particularly sharp among the Supra/ Ultramax sectors, which has seen around 75 percent of the 223 vessels contracted last year with only one month of the year left to go.
Q3’23 carbon emission carrier ranking | North Europe to far east
Backhaul trades can prove problematic for carriers attempting to balance carbon emissions requirements with the need to protect profitability on the fronthaul.
If it comes to a straight choice between carbon reduction and managing profitability at a global level within a hugely challenging market, how much can carriers afford to care about climate change?
To better understand this challenge, our latest Xeneta and Marine Benchmark Carbon Emissions Index (CEI) update is focusing on the world’s largest backhaul trade from North Europe to the Far East.
Early movers crucial in closing $200 per container cost gap for zero emissions shipping in green corridors
A New report released today at the margins of COP28, details the annualised total costs of zero emission container vessels and the cost difference on a per container basis for transpacific and coastal ships under different fuel pathways. The report titled ‘Cost of zero emission container freight shipping: A study on selected deep-sea and short-sea routes’ shows that there is initially a significant cost gap between conventional fossil fuels and scalable zero emission fuels (SZEF) and there are differences across the scalable zero emission fuels considered.
Dry bulk market’s rally is making headlines
The Dry bulk market has logged eight consecutive increases, prior to yesterday’s halt. In its latest weekly report, shipbroker Xclusiv commented that “everyone is watching the “crazy” rally in the dry market. On Friday 1st December 2023, Baltic Dry Index stood at 3,192 points, the highest point since 24th May 2022, having a more than double increase of 128 percent since the 1st of November. Baltic Panamax and Supramax indices have 20 and 18 consecutive positive closings, risen by 57 percent and 33 percent respectively month to date, while the Handysize index counts 13 consecutive positive closings and has just risen 19 percent.
Sea cargo charter to align with new emission goals
The Sea Cargo Charter (SCC) will significantly revise its reporting ambition, aligning its trajectory with emission reduction goals in response to the International Maritime Organization’s (IMO) revised greenhouse gas (GHG) strategy adopted during MEPC80 in July 2023.
In Parallel with aligning its trajectory, the SCC is set to expand its current membership scope to include shipowners, demonstrating a commitment to industry inclusivity and sustainable practices. With 37 signatories representing over 17 percent of total bulk cargo transported by sea annually, the SCC unites to enhance data sharing, boost transparency, and create accountability across the maritime supply chain. See the list of 37 Signatories here.
Designing future-proof vessels towards net zero
Ship Owners are encountering new levels of complexity as previous ship designs are modified to integrate new clean technologies and adopt alternative fuels. In this scenario, it is essential that they select a design partner who can consult effectively on the challenge and dedicate the necessary resources.
The Maritime industry is undergoing a transformative shift towards decarbonization. It is clear that both, the European Union and the IMO on a global scale, are deeply committed to environmental protection, making decarbonization a top priority. The exposure to these regulations, carbon pricing, and CII ratings, will be essential commercial considerations for any ship owner or operator.
Addressing methane slip in lng-burning four-stroke otto-cycle engines
LNG offers many benefits as a transitional ship fuel. However, certain engine types have been found to release significant amounts of unburnt methane, a powerful climate gas. DNV is involved in various projects aiming to minimize methane slip.
Methane, the main component of natural gas and LNG, has a global warming potential (GWP) 29.8 times that of carbon dioxide (CO2) over a 100-year timeframe, according to the Intergovernmental Panel on Climate Change (2021). Preventing methane from escaping anywhere along its supply chain is therefore crucial as the world tries to contain the causes of climate change.
Tanker newbuilding activity in 2023 focused on Aframax/LR2 ships
Tanker ordering has picked up this year, however it seems that supply will remain low, compared to demand. In its latest weekly report, shipbroker Gibson said that “2023 has seen a notable increase in new tanker ordering activity and as the year slowly draws to its end, it is perhaps time to reflect on where investment in new tonnage has been the strongest and where it is still lacking”.
According to Gibson, “for the year to date, ordering activity has been the strongest in the Aframax/LR2 segment, with the focus largely on coated tonnage. Here, circa 80 fresh orders have been placed, with the attractiveness of this asset class being fuelled by very robust spot tanker earnings, particularly in the Aframax segment. Aframax spot TCE earnings outperformed larger crude tanker categories both in 2022 and so far in 2023, driven by significant structural increases in tanker tonne miles amid Russian sanctions and a significant portion of ageing tonnage migrating into solely Russian trade.