Asia tanker markets may face unpredictability
For the Asian dirty and clean tanker markets, 2018 was a mixed bag that saw a fragile start but only to end on a fairly strong footing, while 2019 is expected to be a year of waxing and waning. The Very Large Crude Carriers after struggling to meet operating expenses for most part of the year registered an impressive revival in earnings, which averaged around $12,000/day from Q1 to Q3 to over $50,000/day in Q4.
Aframax tonnage supply less easy to move
Frequent port closures and congestion due to bad weather has tightened up dirty Aframax tonnage supply in North Asia, resulting in firm freight rates for chartering vessels in the region, market sources said Thursday.
The key Kozmino to North China 100,000 mt Aframax route has seen freight levels for hauling ESPO crude break the lumpsum $700,000-mark Wednesday.
Outlook for shipping assets prices remains bright
Overall, the outlook for shipping asset prices remains bright, but several areas are more attractive than others. The VesselsValue forecast takes many factors into consideration when assessing each vessel class and age. Today we’ll look at some of the most appealing segments and the fundamental reasons why ships of this size are more likely to appreciate.
Subscribers have access to a far more granular look at all ship types and ages, allowing for accurate risk assessment of any ship purchases or to identify attractive market segments.
Thousands of merchant ships follow environmental rules
In fewer than 12 months’ time, thousands of merchant ships are going to start burning fuel containing higher concentrations of sulfur. That’s a quirky outcome of rules that are supposed to cut emissions of the pollutant.
How and why will this happen? The rules, set out by the International Maritime Organization back in October 2016, allow owners to fit exhaust-cleaning kit called scrubbers, which stop sulfur oxide from being released into the air.
The ships with these scrubbers will be able to keep burning today’s cheaper, higher-sulfur fuels. However, most of the fleet is simply switching to alternatives that contain less of the pollutant.
India and Denmark in maritime deal
The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved the Memorandum of Understanding (MoU) on Maritime issues between India and Denmark.
The MoU is proposed to be signed during the upcoming visit of the WIP from Denmark to India in January, 2019. Signing of the MoU will pave way for both countries for exploration of areas for bilateral collaboration: facilitating cross-border cooperation and investments between the maritime sectors of India and Denmark; enabling both the countries to exchange expertise, publications, information, data and statistics to improve mutual capabilities for ensuring quality shipping; cooperation in the field of green maritime technology and shipbuilding, granting the Indian Register of Shipping (IRS) the status of Recognized Organization (RO), cooperation in the fields of maritime training and education; research and development for sustained cooperation in the field of merchant shipping and maritime transport related matters; and It will also further extend and deepen the cooperation on the opportunities of mutual benefits to both the countries, at both bilateral and international level.
Australia’s iron ore shipments to China jump
Iron ore shipments to China from Australia’s Port Hedland terminal rose 14 percent in December from a month earlier, port data released on Thursday showed.
Iron ore shipments to China from the world’s biggest iron ore port totalled 37.4 million tonnes in December, compared with November’s 32.9 million tonnes, the Pilbara Ports Authority said. Port Hedland is used by three of Australia’s top four iron ore miners, BHP Billiton, Fortescue Metals Group and Gina Rinehart’s Hancock Prospecting.
India’s gateway terminal beats all ports with 13.5pc CAGR
DP World operated India Gateway Terminal has grown at a CAGR of 13.57 percent in the past three years. This has surpassed the three-year compound annual growth rate of 11.41 percent registered at all Indian ports.
India’s first international transshipment terminal has achieved an annual throughput of more than 5,74,000 TEUs in 2018 and recorded its all-time highest monthly throughput of more than 52,000 TEUs in March last year. This growth is accredited to the terminal’s persistent effort in enabling smarter trade solutions to deliver exponential value to customers and stakeholders. The installation of the RFID-based automated gate management system has improved truck turnaround time from 27 minutes in 2017 to 23 minutes in 2018.
Crude exporters opt for VLCCs over traditional Aframax for USGC
High rates in the Americas for Aframax vessels, which typically carry crude cargoes from the US Gulf Coast to Europe, have charterers looking toward larger ship classes— VLCCs and Suezmaxes — to move cargoes across the Atlantic as the cost of taking a VLCC is currently 52.2%-63.9% of the cost of an Aframax.
There have been at least six Suezmaxes and three VLCCs placed on subjects to carry crude from the US to Europe since the market returned from the long holiday weekend January 2, compared with only four for Aframax vessels, according to S&P Global Platts fixture logs.
India to fully operationalise Chabahar port soon
India is hopeful to fully operationalise the strategic Chabahar port in the Sistan-Balochistan province of Iran; and the government has allowed an Iranian bank to open a branch in Mumbai for related transactions, Union Minister Nitin Gadkari quoted as saying last Tuesday.
Gadkari, after Iran’s Minister of Foreign Affairs Mohammad Javad Zarif called on him, said that the meeting was “fruitful” and both the sides could resolve several issues.