⚓ Your Weekly Maritime News - 18

Nov 13, 2023

Ahoy, fellow lovers of the sea! 🌊

Come aboard for a weekly maritime journey where we navigate the world of container shipping, sharing the freshest industry updates and wisdom.

Let's embark on this maritime voyage of discovery together! ⚓🔭🌟

Today's Wisdom from the Waves; 🌊

"A ship in harbor is safe, but that is not what ships are built for." - John Shedd ⚓

🚢 Navigating Knowledge: Container Shipping Quiz Time! 🚢

*Last Week’s Answer: Carbon Capture and Storage (CCS)

1- “Container Shipping Industry Slowdown” by Industry Expert Peter Sand

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🚢 Cast Your Vote: Container Shipping Insights Poll! 🚢

Last Week's Insight: 73% of our followers believe that Lack of alternative fuels supply, High cost of new technologies, Global cooperation to set standards are the biggest challenges facing container shipping companies in their efforts for decarbonization.

2- Goldman's Grim Forecast: Shipping Industry Downturn Hits Maersk

Goldman Sachs predicts a prolonged shipping industry downturn, with declining rates and earnings.
New vessel orders complicate capacity management.
Economic instability due to weak Western consumer demand and inflation concerns.
Maersk warned of a downturn, and Goldman advises selling with an 8% EBITDA decline forecast.
Container rates return to pre-COVID levels.

3- World's First Ammonia-Powered Container Ship Sets Sail

Yara and North Sea Container Line collaborate on the world's first ammonia-powered container ship.
The ship, Yara Eyde, will operate an emission-free route between Norway and Germany.
Clean ammonia supplied by Yara Clean Ammonia will be used as fuel.
A bunkering network will provide clean ammonia in Norwegian and Scandinavian ports.
This innovative project aims to significantly reduce CO2 emissions in maritime shipping.

4-Who Bears the Burden of Emission Taxes in Shipping?

The shipping industry is entering a new era with inclusion in the EU's Emissions Trading Scheme (ETS).
The question arises: who should bear the costs of emission taxes, ship owners or charterers?
For time charters, charterers are expected to cover the bill, but for spot voyages, it's more complex.
Market power and dynamics will determine how the industry deals with ETS rules.
The ETS will be phased in over three years, with increasing obligations for emissions allowances.

5- Newbuild Prices Soar, Approaching 2008 Record Levels

Newbuild prices are now just 8% below the 2008 record levels.
Clarksons Research's Newbuild Price Index reached 176 points in October, the highest since 2008.
Limited yard slot availability and inflationary pressures contribute to the price surge.
VLCC newbuilds have seen a 50% increase in cost since the end of 2020.
Yards in Asia face challenges with labor shortages, making price reductions unlikely in the near future.

6- Maritime Competition Heats Up via Linerlytica

October's Record Deliveries: 5th consecutive month over 200,000 TEU.
Minimal Scrapping: Only 22,000 TEU scrapped in 30 days.
Intense Top 7 Competition: More new ships on the horizon.
MSC Leads the Way: Extending their lead.
Maersk's Surprise Acquisition: 12 charter ships in the last two weeks.
CMACGM's Fleet Strategy Shift: Reduction since September.

7 -Panama Canal Cuts Daily Transits Due to Record Dry Weather

The Panama Canal Authority has further reduced daily transits due to the driest October on record.
El Niño weather phenomenon is causing prolonged dry weather in the region.
Water levels in Gatun Lake, which supplies water for canal operations and over 50% of Panama's population, are at historic lows.
Booking slots are crucial, and non-booked vessels could face indefinite delays.
Some dry bulk ships may choose alternative routes around the Cape Horn into the Pacific.

8- Europe's Economic Woes Trigger Container Chaos

Europe's ongoing economic crisis leads to a decline in container activity.
Surplus containers create repositioning challenges, with costs surpassing asset values.
Ports in Europe experience consistent drops in import and export volumes.
Geopolitical risks, like the Israel-Palestine conflict, affect the European container market.
Despite challenges, positive signs emerge for container trade in Russia, especially in terms of container trading and leasing markets.

Maritime Analytica

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