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Selected News Headlines 2020/Q2

THIS WEEK’S HEADLINES SELECTED BY INTERCARGO (25/05/2020 – 31/05/2020)

 IMO, ICAO and ILO in urgent plea on crew changes, key worker status

The heads of UN agencies for maritime, labour and aviation have issued a joint urgent call for action on crew changes and designating seafarers and air workers as key workers. (Seatrade Maritime News: click here)

 Ship Crews Stuck at Sea Are Facing a ‘Humanitarian Crisis’

Even as countries try returning to some semblance of pre-pandemic life, ongoing restrictions are wearing thin a crucial human link in the global supply chain. (gCaptain: click here)

Covid-19 impacts ability to properly debate dry bulk sector quality scheme

INTERCARGO tells SMI the time is not yet right to launch a quality self-assessment scheme for the sector. INTERCARGO is prepared to launch an industry wide consultation process prior to implementation of a dry bulk sector quality self-assessment scheme, DRY-SAS. (Ship Management: click here)

INTERCARGO’s Self-Assessment Scheme under development

INTERCARGO has announced that it is currently developing ‘DRY-SAS’, a risk based, tailored Self-Assessment Scheme specifically for the dry bulk sector, for which consultation within its membership is ongoing (Seafety4Sea: click here)

Shipowners and bunker players face headache amid build-up of low-sulphur fuel

Ensuring the quality of bunker fuel has become a more difficult task due to the combined effects of IMO 2020 and increased inventory, according to bunker sector experts. (Tradewinds: click here)

EU publishes first annual maritime CO2 emissions report

The European Commission has published the first annual report on CO2 emissions from maritime transport. The report analyses the CO2 emissions and energy efficiency information of all the ships over 5,000gt, which performed maritime transport activities related to the European Economic Area (EEA) in 2018. Emissions reported by 11,600 ships have added up to over 138 million tonnes of CO2 emissions in that year, representing 3.7% of total EU CO2 emissions according to the European Environment Agency’s greenhouse gas emissions data. (ShipInsight: click here)

Guinea set to supply iron ore from 2026

Development of the Simandou blocks in Guinea will not only increase the country’s iron ore exports but will also prompt Chinese importers to shift some iron ore imports away from Australia to Guinea, which will add to dry bulk shipping demand (Hellenic Shipping News: click here)

Capes remain in Pacific amid Brazil’s Covid-19 troubles

Owners are keeping their capesize bulkers in the Pacific Basin while the Covid-19 pandemic wreaks havoc on Brazil’s iron-ore supply (Tradewinds: click here)

Dry Bulk Market: Capesize Market Not There Yet

A sober end to the week, with the market seemingly ready for the weekend. After a steady week of rate declines a small flurry of Atlantic business – combined with a little activity in the Pacific – managed to end the week up a tick. (Hellenic Shipping News: click here)

 
29.05.2020
WEEK AGO
WEEKLY CHANGE
WEEKLY CHANGE %
52 Week Range
Baltic Dry Index
504
498
+6.0
+1.2%
393-2,518
BRENT ($/bbl)
35.3
35.1
+0.2
+0.6%
WTI ($/bbl)
35.5
33.3
+2.2
+6.7%
MGO ROTTERDAM ($/mt)
267.5
265.5
+2.0
+0.8%
MGO  FUJAIRAH ($/mt)
366.5
379.0
-12.5
-3.3%
MGO SINGAPORE ($/mt)
300.5
295.0
+5.5
+1.9%
VLSFO ROTTERDAM ($/mt)
234.0
240.5
-6.5
-2.7%
VLSFO FUJAIRAH ($/mt)
275.0
277.5
-2.5
-0.9%
VLSFO SINGAPORE ($/mt)
264.5
274.0
-9.5
-3.5%
IFO 380 ROTTERDAM ($/mt)
192.5
191.5
+1.0
+0.5%
IFO 380 FUJAIRAH ($/mt)
175.5
181.5
-6.0
-3.3%
IFO 380 SINGAPORE  ($/mt)
205.0
216.0
-11.0
-5.1%
ULSFO ROTTERDAM, MAX 0.1% SULPHUR ($/mt)
248.5
246.0
+2.5
+1.0%
LSMGO SINGAPORE, MAX 0.1% SULFUR DISTILLATE ($/mt)
295.0
289.0
+6.0
+2.1%
EUR-USD
1.11
1.09
+0.02
+1.8%
GBP-USD
1.23
1.22
+0.02
+1.4%
USD-JPY
107.83
107.64
+0.19
+0.2%
USD-KRW
1,237.57
1,236.90
+0.67
+0.1%
Sources: KPI Bridge Oil, Bloomberg.com, ShipandBunker.com

18 May 2020 - 25 May 2020

THIS WEEK’S HEADLINES SELECTED BY INTERCARGO (18/05/2020 – 25/05/2020)

 Stranded crew crisis is ticking time bomb for global trade

You may have read those Kafkaesque stories about seafarers marooned on cargo ships month after month, unable to go home at the end of their work contracts due to COVID-19 travel restrictions. (American Shipper: click here)

 COVID-19 transport measures: Council adopts temporary flexibility for licences and port services

The EU is adapting certain rules for different transport sectors to help companies and authorities cope in the extraordinary circumstances created by the coronavirus crisis. (Hellenic Shipping News: click here) 

India: Running chartered flights to bring back seafarers gather pace

The government has given permission to ship management companies for operating chartered flights to bring back and also ferry seafarers to join ships overseas as the shipping industry looks at ways to resolve the crew change crisis never seen before. (Hellenic Shipping News: click here)

 UK P&I Club advises on compliance with the Inventory of Hazardous Materials

The UK P&I Club, a leading provider of protection and indemnity insurance to the international shipping community, has published a guide for ship-owners to ensure compliance with the Inventory of Hazardous Materials (IHM) legislation. (Ship Management International: click here)

Commission publishes first annual EU report on CO2 emissions from maritime transport

The European Commission has published the first annual report on CO2 emissions from maritime transport. The report analyses the CO2 emissions and energy efficiency information of all the ships over 5,000 gross tonnage, which performed maritime transport activities related to the European Economic Area (EEA) in 2018. (Bunker Ports News: click here)

Hong Kong accedes to Ballast Water Management Convention

China has extended its compliance with IMO’s Ballast Water Management (BWM) Convention to include the Hong Kong Special Administrative Region. Effective 13 August, all ships registered in Hong Kong – the world’s fourth largest flag Administration in tonnage terms – will need to meet the requirements of the BWM Convention. (Seatrade Maritime News: click here)

Ballast treatment methods explained

There are several different methods of ballast treatment offered by system makers. Some are more suited to different ship types than others and some more suited to the operating profile of the ship. Both these considerations along with type-approval status and of course cost and availability should be factors taken account of when choosing. (ShipInsight: click here)

Indonesian coal cargoes boost supramax rates

Supramax bulker earnings were supported by the increased coal cargoes from Indonesia mainly due to stocking before the monsoons and Ramadan holidays. Meanwhile, the latest tension between China and Australia has resulted in increased iron ore volumes from India supporting supramaxes (Lloyd’s List: click here)

Capes fare better in Pacific amid Brazil’s iron-ore troubles

Capesizes are garnering much higher rates in the Pacific Basin versus the Atlantic Basin over the past week as Brazil continues to fall deeper into the paralysing grip of the Covid-19 pandemic (Tradewinds: click here)

Brazil soybean exports A Silver Lining in the Market

In an attempt to find some positive news in the market, it seems that Brazil can offer some respite. (Hellenic Shipping News: click here)

Dry Bulk Newbuilding Orders Go “Extinct”, as Interest Limited to Tankers

Ship owners have limited their newbuilding activity during the past couple of months, in what was already quite a “slow” year for 2020 contracting. (Hellenic Shipping News: click here)

Capesize freight returns below operating expense levels, but shipowners reject lay-ups

The Capesize market has fallen considerably below operational expense levels during the second quarter, eluding seasonality patterns that play a key factor influencing the dry bulk markets, but shipowners are unwilling to lay-up their tonnage. (Hellenic Shipping News: click here)

 
22.05.2020
WEEK AGO
WEEKLY CHANGE
WEEKLY CHANGE %
52 Week Range
Baltic Dry Index
498
407
+91.0
+22.4%
393-2,518
BRENT ($/bbl)
35.1
32.4
+2.8
+8.6%
WTI ($/bbl)
33.3
28.6
+4.7
+16.3%
MGO ROTTERDAM ($/mt)
265.5
257.5
+8.0
+3.1%
MGO  FUJAIRAH ($/mt)
379.0
331.0
+48.0
+14.5%
MGO SINGAPORE ($/mt)
295.0
249.0
+46.0
+18.5%
VLSFO ROTTERDAM ($/mt)
240.5
219.0
+21.5
+9.8%
VLSFO FUJAIRAH ($/mt)
277.5
239.5
+38.0
+15.9%
VLSFO SINGAPORE ($/mt)
274.0
250.0
+24.0
+9.6%
IFO 380 ROTTERDAM ($/mt)
191.5
162.0
+29.5
+18.2%
IFO 380 FUJAIRAH ($/mt)
181.5
149.0
+32.5
+21.8%
IFO 380 SINGAPORE  ($/mt)
216.0
180.0
+36.0
+20.0%
ULSFO ROTTERDAM, MAX 0.1% SULPHUR ($/mt)
246.0
233.5
+12.5
+5.4%
LSMGO SINGAPORE, MAX 0.1% SULFUR DISTILLATE ($/mt)
289.0
262.5
+26.5
+10.1%
EUR-USD
1.09
1.08
+0.01
+0.7%
GBP-USD
1.22
1.21
+0.01
+0.5%
USD-JPY
107.64
107.06
+0.58
+0.5%
USD-KRW
1,236.90
1,231.04
+5.86
+0.5%
Sources: KPI Bridge Oil, Bloomberg.com, ShipandBunker.com



11 May 2020 - 17 May 2020

THIS WEEK’S HEADLINES SELECTED BY INTERCARGO (11/05/2020 – 17/05/2020)

 ITF and employers put 30-day deadline on crew exchange

Employers and union representatives have agreed one final 30-day extension to the employment of seafarers under shipping’s largest collective bargaining agreement. The deal announced by the International Transport Workers’ Federation (ITF) and the Joint Negotiating Group, which represents employers, is aimed at giving governments time to allow crew to go home. (Tradewinds: click here)

See also INTERCARGO (15 May 2020 update): here

Paris MOU: Temporary Guidance Related To Covid-19 For Port State Control Authorities (Rev.2)

Paris MOU has issued its latest guidance related to COVID-19 for Port State Control Authorities. (Hellenic Shipping News: click here) 

UK asked to exempt 200,000 seafarers, maritime workers from quarantine restrictions

The UK Chamber of Shipping — the voice of the country’s shipping industry — has urged the UK government to exempt seafarers and maritime workers from any quarantine restrictions planned to be imposed. (Offshore Energy: click here)

COVID-19 Pandemic Creates New Cybercrime Risks

The confusion attending the COVID-19 pandemic has created new opportunities for cybercrime, particularly cyberattacks targeting the human element. Fraudulent “phishing” attempts and similar deceptive tactics are an omnipresent cyber threat, and they can be even more potent in times of heightened uncertainty and stress.(The Maritime Executive: click here)

High fuel oil stock levels pose a challenge for IMO 2020 compliant fuels

The high stocks pose a challenge for International Maritime Organization (IMO) 2020 compliant fuels. A shelf life of 0.5 % fuel oil is only 2-3 months in most cases. (Hellenic Shipping News: click here) 

Panama Canal Ensures Secure Draft Levels for Transit

The Panama Canal Authority is ensuring shippers that it has been able to address the water issues in the canal and that it will be able to maintain operations with a secure draft for vessels despite experiencing the fifth driest year in the canal’s 70-year history. (The Maritime Executive: click here) 

Collapse of riverbank disrupts exports on Argentina’s Parana

Ships transporting cargo from Argentina’s Rosario grain hub through the Parana River are having to reduce their cargoes after a bank collapse obstructed the navigation channel, exporters told Reuters. (Hellenic Shipping News: click here)

India’s dry bulk, energy shipping to normalize in 3-4 months

Cargo handing at Indian ports is expected to bounce back in May as an extended countrywide lockdown nears an end, but it would take at least three to four months for operations to completely normalize and return to pre-COVID 19 levels assuming there is no further extension, the CEO of Essar Ports Ltd. said. (Hellenic Shipping News: click here)

China: Iron ore shipments from Australia decreased last week on port maintenance

A total of 91 vessels carrying 14.05 million mt of iron ore arrived at major Chinese ports during May 3-9, SMM estimates. This was up 1.21 million mt from the prior week, and up 1.72 million mt from the same period last year. (Hellenic Shipping News: click here)

Capesize market plunges to lowest in four years

The capesize market has suffered a further decline this week, with the average weighted time-charter at just over $2,000 per day on the Baltic Exchange. That is the lowest level since March 2016 (Lloyd’s List: click here)

Rates for capesize bulk carriers are a dry market horror story – again

Capesize bulk carriers in the spot market can be hired on major routes for less than $2,000 per day.

The new assessment comes as the Baltic Capesize Index fell into negative territory for the second consecutive trading day on Thursday, falling by 31 to reach -48 points. (Tradewinds: click here)

Dry Bulk Market: Recovery Still Elusive

A precipitous fall in the market this week had the Capesize 5TC shedding over 50 per cent in value. A small rebound at the end of the week gave slim hopes that the market may recover faster than anticipated. (Hellenic Shipping News: click here)

 
15.05.2020
WEEK AGO
WEEKLY CHANGE
WEEKLY CHANGE %
52 Week Range
Baltic Dry Index
407
 
407.0
n/a
393-2,518
BRENT ($/bbl)
32.4
31.0
+1.4
+4.5%
WTI ($/bbl)
28.6
24.7
+3.8
+15.5%
MGO ROTTERDAM ($/mt)
257.5
232.0
+25.5
+11.0%
MGO  FUJAIRAH ($/mt)
331.0
355.0
-24.0
-6.8%
MGO SINGAPORE ($/mt)
249.0
270.0
-21.0
-7.8%
VLSFO ROTTERDAM ($/mt)
219.0
195.0
+24.0
+12.3%
VLSFO FUJAIRAH ($/mt)
239.5
238.5
+1.0
+0.4%
VLSFO SINGAPORE ($/mt)
250.0
250.5
-0.5
-0.2%
IFO 380 ROTTERDAM ($/mt)
162.0
165.0
-3.0
-1.8%
IFO 380 FUJAIRAH ($/mt)
149.0
150.5
-1.5
-1.0%
IFO 380 SINGAPORE  ($/mt)
180.0
180.0
0.0
0.0%
ULSFO ROTTERDAM, MAX 0.1% SULPHUR ($/mt)
233.5
215.5
+18.0
+8.4%
LSMGO SINGAPORE, MAX 0.1% SULFUR DISTILLATE ($/mt)
262.5
249.0
+13.5
+5.4%
EUR-USD
1.08
1.08
0.00
-0.2%
GBP-USD
1.21
1.24
-0.03
-2.4%
USD-JPY
107.06
106.65
+0.41
+0.4%
USD-KRW
1,231.04
1,219.85
+11.19
+0.9%
Sources: KPI Bridge Oil, Bloomberg.com, ShipandBunker.com



04 May 2020 - 10 May 2020

THIS WEEK’S HEADLINES SELECTED BY INTERCARGO (04/05/2020 – 10/05/2020)

 Five seafarers kidnapped in Gulf of Guinea attacks

Several Russians and a Ukrainian among the crew abducted from two different vessels. Spate of attacks happened in roughly the same area during a 48-hour period (Lloyd’s List: click here)

Two Kidnapped Off Equatorial Guinea

Two crewmembers have been kidnapped from a general cargo vessel off Equatorial Guinea in the Gulf of Guinea, according to security company Dryad Global. (The Maritime Executive: click here)

IMO endorse crew repatriation proposals

The need for ships to change crews and for seafarers to fly home at the end of their periods of service have emerged as two of the biggest challenges facing the shipping industry as a result of the COVID-19 pandemic. Now, IMO Secretary-General Kitack Lim has endorsed a series of protocols designed to address these issues. (Ship Insight: click here)

 IMO, industry pitching governments on crew change plan

Thousands of seafarers need relief, having been stuck on their ships thanks to Covid-19 lockdown measure (Tradewinds: click here)

Thousands of Seafarers Stranded by Pandemic Plead for Relief

JJ Del Rosario had a six-month contract to start work this week on a bulk carrier moving iron ore to China, but the career shipmate is stuck in the Philippines with no way to reach the ship

(Hellenic Shipping News: click here)

Liberia and Panama Statement of Support for IMO crew change protocol

The Flag States of Panama and Liberia join together to strongly support IMO Circular Letter No.4204/Add.14 for the “Recommended Framework of Protocols Ensuring Safe Ship Crew Changes and Travel During the COVID-19 Pandemic”. Liberia and Panama support the careful facilitation of the world’s seafarers conducting safe crew changes. Both Panama and Libera call upon other Flag States to join them in their support of these protocols and for adding their voice to this important call. (Bunker Ports News: click here)

Cyprus adopts measures to facilitate crew changes

The government of Cyprus has adopted with a formal process to facilitate crew changes in the face of the COVID-19 pandemic. Under the new processes crew changes will be permitted in Cyprus if certain conditions are met. (Seatrade Maritime News: click here)

‘Situation critical’: knife fight breaks out on boxship after migrant rescue

A German shipowner has complained of a dire situation on board a boxship that cannot disembark migrants rescued in the Mediterranean. (Tradewinds: click here)

IMO 2020: Bunker Claims Handling Guide for a new decade

The main focus of this Guide is on time charterparties, although short guidance is also provided in respect of voyage charterparties where appropriate. (Hellenic Shipping News: click here) 

What ‘clean on board’ means and what should a master be aware of when presented with a bill of lading?

The Tai Prize concerns a matter where the defendant head time charterer entered a voyage charter with the claimant voyage charterer for the carriage of heavy grains, soyabeans in bulk from Brazil to China. (Hellenic Shipping News: click here)

Capesize earnings down by $1,000 overnight as bear market bites

The two key benchmarks for iron ore shipping have fallen to their lowest levels in years (Tradewinds: click here)

Brazil’s soybean monthly exports touch record high of 16.3 mil mt

Brazil exported a monthly record volume of 16.3 million mt of soybeans in April, up 73% year on year, according to a report by the Brazilian foreign trade department. (Hellenic Shipping News: click here)

Capesize rates fall through the week amid Covid-19, holidays

Capesize rates have slid steadily over the past week amid coronavirus overhang and Asian and UK holiday (Tradewinds: click here)

Low oil prices a consolation prize for container, dry bulk shipping

The coronavirus has crushed global supply chains and destroyed demand for consumer goods, holidays and a raft of key commodities. With over 90% of global trade carried by sea, the outlook for containers, cruises and dry bulk over the coming months looks bleak. Low oil prices may provide some salvation but they are also symptomatic of the problem (Hellenic Shipping News: click here)

 
08.05.2020
WEEK AGO
WEEKLY CHANGE
WEEKLY CHANGE %
52 Week Range
Baltic Dry Index
n/a 
617
n/a
n/a
411-2,518
BRENT ($/bbl)
31.0
26.4
+4.5
+17.1%
WTI ($/bbl)
24.7
19.8
+5.0
+25.1%
MGO ROTTERDAM ($/mt)
232.0
228.5
+3.5
+1.5%
MGO  FUJAIRAH ($/mt)
355.0
332.0
+23.0
+6.9%
MGO SINGAPORE ($/mt)
270.0
237.5
+32.5
+13.7%
VLSFO ROTTERDAM ($/mt)
195.0
216.0
-21.0
-9.7%
VLSFO FUJAIRAH ($/mt)
238.5
232.5
+6.0
+2.6%
VLSFO SINGAPORE ($/mt)
250.5
239.0
+11.5
+4.8%
IFO 380 ROTTERDAM ($/mt)
165.0
141.0
+24.0
+17.0%
IFO 380 FUJAIRAH ($/mt)
150.5
135.5
+15.0
+11.1%
IFO 380 SINGAPORE  ($/mt)
180.0
165.0
+15.0
+9.1%
ULSFO ROTTERDAM, MAX 0.1% SULPHUR ($/mt)
215.5
207.5
+8.0
+3.9%
LSMGO SINGAPORE, MAX 0.1% SULFUR DISTILLATE ($/mt)
249.0
240.5
+8.5
+3.5%
EUR-USD
1.08
1.10
-0.01
-1.3%
GBP-USD
1.24
1.25
-0.01
-0.8%
USD-JPY
106.65
106.91
-0.26
-0.2%
USD-KRW
1,219.85
1,220.94
-1.09
-0.1%
Sources: KPI Bridge Oil, Bloomberg.com, ShipandBunker.com



27 April 2020 - 03 May 2020

THIS WEEK’S HEADLINES SELECTED BY INTERCARGO (27/04/2020 – 03/05/2020)

 INTERCARGO adds voice to calls for crew change permissions

“Seafarers must not be forgotten in these extraordinary times,” said Dimitris Fafalios, Chairman of INTERCARGO. “The issue of crew change must be at the top of the industry’s agenda. Seafarers are amongst the world’s key workers, vital to the global transportation chain. (ShipInsight: click here)

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