1. Strong tanker market due to sanctions and high demand for oil
The product tanker market has strengthened significantly during April and May, with market rates at much higher levels than for both Q1 2022 and the full year 2021. At the end of May, average spot market earnings for an MR vessel (clean) was about $36,000 per day*. The time charter market has also strengthened and a three-year contract for an MR tanker is currently $15,000-18,000 per day, depending to some extent on the vessel’s design. For a suezmax vessel, average spot earnings are about $22,000 per day**. Volatility in the segment has been high during April and May, with occasional peaks at levels above $60,000 per day. https://cyprusshippingnews.com/2022/06/03/strong-tanker-market-due-to-sanctions-and-high-demand-for-oil/
2. BIMCO hires Thomas Damsgaard to head Houston office
In the process of expanding its global reach and to better provide services to members in the Americas, BI M CO has hired Thomas Damsgaard to head its new office in Houston , United States . BIMCO also has ambitions to open an office in Brussels.
Local representation in the United States, covering the Americas, complements BIMCO’s offices in Athens, Shanghai, Singapore, London, and the headquarters in Denmark. In addition, work to open an office in Brussels to be closer to EU decision-making is underway.
3. Oceana launches tool to ‘Pull the Plug on Pirate Fishing’
Oceana’s IUU (illegal, unregulated, unreported) fishing campaign website “Pull the Plug on Pirate Fishing” has recently been launched along with an information-sharing tool. The campaign website assists companies in identifying IUU fishing vessels and avoiding contracts that support their illicit activities. Through the website, insurers and other companies can access strategies, tools, and other resources developed with the aim of putting IUU fishing vessels out of service. https://cyprusshippingnews.com/2022/06/06/oceana-launches-tool-to-pull-the-plug-on-pirate-fishing/
4. Code of Practice between the International Group of P&I Clubs and IUMI
A revised Code of Practice between the International Group of P&I Clubs and IUMI has recently been agreed in relation to future casualty situations that may give rise to the need for third party salvage services. The document sets out rules and procedures to be followed by property and liability underwriters in case of such incidents, including the payment of fees and disbursements to the Special Casualty Representative (“SCR”). https://cyprusshippingnews.com/2022/06/06/code-of-practice-between-the-international-group-of-pi-clubs-and-iumi/
5. Shippers have lost up to $10bn from delayed ships during the pandemic
The dire schedule reliability among containerlines, where 70% of ships arrive late, has led to billions of dollars being squandered during the pandemic, a new study from Copenhagen-based Sea-Intelligence shows.
The record delays caused by vessels not arriving on time leads to having to hold inventory longer than usual. Holding inventory for a longer period is equivalent to a financial loss, and a model created by Sea-Intelligence based on the actual delays of cargo at sea shows a loss of some $5bn to $10bn. https://splash247.com/shippers-have-lost-up-to-10bn-from-delayed-ships-during-the-pandemic/
6. Death toll rises to 49 from Bangladesh container depot fire
At least 49 people have been killed and hundreds more injured, after a massive fire tore through an inland container depot near the port city of Chittagong in Bangladesh over the weekend. The fire broke out at BM Container Depot on Saturday night, triggering multiple container explosions that shook the neighbourhood and shattered windows in nearby buildings. https://splash247.com/death-toll-rises-to-49-from-bangladesh-container-depot-fire/
7. Lebanon Warns Against Any Israeli ‘Aggression’ In Disputed Waters
Lebanon warned Israel on Sunday against any “aggressive action” in disputed waters where both states hope to develop offshore energy, after a ship arrived off the coast to produce gas for Israel.
President Michel Aoun said any activity in the disputed area would amount to an act of aggression and a provocation, after the arrival of the natural gas storage and production ship operated by London-based Energean ENOG.L. https://gcaptain.com/lebanon-warns-israeli-aggression-disputed-waters/
8. N.Korea Fires Volley Of Missiles, Prompting Joint Military Drill By Japan, US
North Korea fired eight short-range ballistic missiles towards the sea off its east coast on Sunday, likely its largest single test, a day after South Korea and the United States ended joint military drills.
South Korea’s Joint Chiefs of Staff said that at least eight missiles were fired from the Sunan area of the North Korean capital Pyongyang and they flew between 110 km-600 km (70-370 miles) at altitudes between 25 km to 90 km. https://gcaptain.com/n-korea-fires-missiles-prompting-joint-drill-japan-us/
9. Decline in container schedule reliability in April
GLOBAL schedule reliability declined in April 2022 by 1.3 percentage points to 34.6 per cent, compared to the previous month, according to analysts at Sea-Intelligence.
On a year-to-year basis, schedule reliability was down 4.7 percentage points. “This means that the 2022 score has been slightly below the 2021 level in each of the first four months,” according to Sea-Intelligence’s latest Global Liner Performance (GLP) report, which covers schedule reliability across 34 different trade lanes and more than 60 carriers.
10. Global supply chains won’t improve anytime soon
World trade fell by 0.2% in March, with imports from China down 12% and Eastern European CIS countries by 16.4%. With China’s zero-Covid policy continuing throughout April and May, we don’t expect trade data to come in much better in these months. Although global schedule reliability, tracked by Sea-Intelligence, improved slightly in February and March, we expect it to have fallen back in April, overall remaining well below 2021 levels. https://www.shippingtribune.com/news/shipping/Global+supply+chains+won%E2%80%99t+improve+anytime+soon