Latest Maritime News
2-14 March 2022
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Oil Prices Slide Over 5%, Extending Last Week's Decline
Oil prices fell more than 5% on Monday to the lowest in nearly two weeks amid hopes for progress toward a diplomatic end to Russia's invasion of Ukraine - a development that would boost global supplies - while a pandemic-linked travel ban in China cast doubt on demand.
Brent futures fell $5.77, or 5.1%, to settle at $106.90 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $6.32, or 5.8%, to settle at $103.01.
That was the lowest close for WTI since Feb. 28 and the lowest for Brent since March 1. Both benchmarks have surged since Russia's Feb. 24 invasion of Ukraine and are up roughly 36% so far this year. Continue reading here (Source: Reuters).
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IMO Seeks Safe Corridor for Ships and Crew From Ukraine Conflict
An IMO Extraordinary Council Session held at the end of last week on the impact on seafarers and shipping in the Black Sea and the Sea of Avoz from the conflict in Ukraine stated it “deplored the attacks of the Russian Federation aimed at commercial vessels, their seizures, including Search-and-Rescue vessels, threatening the safety and welfare of seafarers and the marine environment.”
It said the situation underscored the importance of preserving the safety and welfare of seafarers and urged member states to provide the maximum level of assistance.
The Council called for the establishment of blue safe maritime corridor to allow the evacuation of seafarers and ships from high-risk areas in the Black Sea and the Sea of Azov. Continue reading here (Source: Seatrade Maritime News).
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IACS Votes to Expel Russian Maritime Register
The members of the International Association of Classification Societies (IACS) have voted to expel the Russian Maritime Register of Shipping from their ranks, citing the impact of allied sanctions.
Following Russia's sudden invasion of Ukraine on February 24, NATO's allied nations have imposed punishing sanctions on the Russian economy, cutting off most Russian banks from the international wire transfer system and imposing wide-ranging sanctions on Russian state-owned enterprises. The Russian Maritime Register of Shipping (RS Class) was added to the EU's financial-sanctions list last week. In addition, the UK - where IACS is domiciled - has taken measures to freeze the assets of every Russian bank, moving farther and faster than any other nation to clamp down on transactions with the Russian financial sector.
On Friday, IACS announced that it has voted to expel RS Class, citing the impact of sanctions in its home jurisdiction. Continue reading here (Source: The Maritime Executive).
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Will A New Iron Curtain Fall On Shipping?
Francis Fukuyama, the American political scientist who once described the collapse of the Soviet Union as the “end of history,” suggested that Russia’s invasion of Ukraine might be called “the end of the end of history.” He meant that Vladimir Putin’s aggression signals a rollback of the ideals of a free Europe that emerged after 1991. Some observers suggest it may kick off a new Cold War, with an Iron Curtain separating the West from Russia.
As an expert in global supply chains, I think the war portends the end of something else: global supply chains that Western companies built after the Berlin Wall fell over three decades ago.
Supply chains – often vast networks of resources, money, information and people that companies rely on to get goods or services to consumers – were already in disarray because of the COVID-19 pandemic, resulting in massive shortages, disruptions, and price inflation. The war and resulting sanctions against Russia have immediately put further strains on them, prompting skyrocketing energy prices and even fears of famine. Continue reading here (Source: gCaptain).
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Near-Record Import Levels Expected at US Ports as Congestion Continues
Imports at the nation’s major retail container ports are expected to be at near-record levels this spring and summer as consumer demand and supply chain challenges continue to result in congestion, according to the monthly Global Port Tracker report released today by the National Retail Federation and Hackett Associates.
“Consumers are still spending and the supply chain is still working to keep up,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “Growth rates have slowed down from the off-the-charts numbers we saw last year, but volume is close to the highest we’ve ever seen. Everyone in the supply chain is trying to reduce congestion, but there is still work to be done. Retailers are also planning for potential additional disruptions this summer from West Coast port labor contract negotiations.”
NRF recently sent a letter urging the International Longshore and Warehouse Union and the Pacific Maritime Association to begin contract negotiations well before their July 1 contract expiration to avoid any delay in reaching a settlement and additional congestion that might result. Continue reading here (Source: American Journal of Transportation).
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How Container Shipping's Historic Boom Funded a $2B Cruise Bailout
Back in March 2020, no one could have predicted how the pandemic would play out. Stifel analyst Ben Nolan wrote at the time that “it is fair to assume it is not helpful for container shipping.” He saw liner company MSC as “specifically … at risk” because it also owned “a very large cruise operation, which you could imagine has seen better days.”
As it turned out, the pandemic was exceptionally helpful to container shipping. Supercharged consumer spending and extreme port congestion boosted rates to stratospheric heights and kept them there, awarding ocean carriers hundreds of billions in profits.
But early fears about cruising were spot on. The pandemic was the worst thing that ever happened to the industry, leading to tens of billions in losses in 2020-21. Continue reading here (Source: American Shipper).
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Container Rates Climb On China Lockdowns
The number of container ships waiting off Qingdao, one of China’s biggest ports, is continuing to rise as the country doubles down on its COVID Zero policy, adding more delays to a strained global supply chain.
About 72 vessels were spotted off Qingdao port in Shandong Monday, almost double the amount at the end of February, according to shipping data compiled by Bloomberg. The increased delays there and in other parts of China are expected to push up freight rates.
While there is usually a build-up of vessels seeking to enter China following the Lunar New Year holidays, volumes this year are being exacerbated by lockdowns aimed at curbing new coronavirus outbreaks. Continue reading here (Source: gCaptain).
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Current Price Indications
*Prices are indications only.
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Bangkok, Thailand
HSFO IFO-380cst 3.5%: N/A
VLSFO 0.5%: USD1150/MT
MGO (DMA): USD1115/MT
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Busan, South Korea
HSFO IFO-380cst 3.5%: USD678/MT
VLSFO 0.5%: USD919/MT
MGO (DMA): USD1082/MT
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Callao, Peru
HSFO IFO-380cst 3.5%: N/A
VLSFO 0.5%: USD1054/MT
MGO (DMA): USD1201/MT
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Hong Kong
HSFO IFO-380cst 3.5%: USD690/MT
VLSFO 0.5%: USD922/MT
MGO (DMA): USD1055/MT
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Houston, TX, USA
HSFO IFO-380cst 3.5%: USD758/MT
VLSFO 0.5%: USD933/MT
MGO (DMA): USD1219/MT
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Kaohsiung, Taiwan
HSFO IFO-380cst 3.5%: USD783/MT
VLSFO 0.5%: USD980/MT
MGO (DMA): USD1120/MT
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Long Beach/Los Angeles, CA, USA
HSFO IFO-380cst 3.5%: USD741/MT
VLSFO 0.5%: USD1010/MT
MGO (DMA): USD1225/MT
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Manta, Ecuador
HSFO IFO-380cst 3.5%: USD738/MT
VLSFO 0.5%: USD1220/MT
MGO (DMA): USD1258/MT
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New York Harbor, NY, USA
HSFO IFO-380cst 3.5%: USD718/MT
VLSFO 0.5%: USD958/MT
MGO (DMA): USD1160/MT
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Panama Canal
HSFO IFO-380cst 3.5%: USD745/MT
VLSFO 0.5%: USD950/MT
MGO (DMA): USD1116/MT
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Singapore
HSFO IFO-380cst 3.5%: USD642/MT
VLSFO 0.5%: USD892/MT
MGO (DMA): USD1017/MT
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