A carbon tax is essential to helping the shipping market price next generation vessel earnings and asset values, says MSI. Read more at TradeWinds
Category: Uncategorized
Minor bulk trades reflect slowing global economy
Minor bulk commodity movements have declined or stayed flat in 2023 so far amid a slowing global economy. Only bauxite has remained strong.
“However, the global economy still seems to be decelerating and the loss of momentum in China is especially concerning. In the absence of a clearer signal of much more sizeable stimulus measures in China, the risks to the minor bulk trades over the next several months are rising.” said MSI Associate Director Plamen Natzkoff. Read more at Lloydslist.
Dual-fuel ships will command charter and asset price premiums
LNG bunker price expected to start trading at a substantial discount to low-sulphur fuel from 2024, helping create a premium for charter ships burning the fuel. For dual-fuel methanol ships, the picture is less clear even with shipping included into the EU ETS, as the price for green methanol would be significantly higher, according to MSI. Read more at Lloydslist
Dry bulk rates soften as caution creeps in
MSI said the most recent data suggests that “a degree of caution is more than warranted” as it sees a plateauing of some measures of activity in China, most notably of fixed asset investments (construction and infrastructure), which are being accompanied by a notable slowdown in steel production rates. Read more at Lloydslist
Proman to go all-in on methanol for future shipping fleet
The newbuild price of a MR tanker rose to $44.1 million in February from $42.8 million in 2022 and $37.6 million in 2021, according to consultancy MSI. Read more at S&P Global
Next-generation wind turbines go beyond legacy lifting capabilities
Growth in size of offshore wind turbines drives need for larger lifting capacities. Using data produced by MSI, forecasting the total number of offshore wind projects to be installed per year, for both fixed and floating foundation windfarms, UK-based HLP believes project developers will struggle to meet demand, based on current logistics practices and equipment provision. Read more at Riviera
Shipyards dust off facilities to meet huge fleet renewal demand
Mothballed capacity is being brought back to life as contracting is forecast to rise. “Expansion in capacity will certainly be needed in the second half of the decade, when we expect a surge in contracting volumes in response to the twin requirements of fleet renewals and decarbonisation efforts,” says MSI director Stuart Nicoll. Read more at TradeWinds
Will slow steaming balance out container shipping’s capacity problem?
DATA released recently by MSI, show that the months of this year have been ‘dismal’, but there is an expectation that the industry will see some modest annual trade growth at least, starting from the middle of this year. Read more at SeaNews
Shipyard capacity expected to expand amid push for dual-fuel orders
Demand for alternative fuel newbuildings will spur expansion of shipbuilding capacity, including bringing some of the collapsed yards back to life. But the boom seen in the 2000s, which later led to severe overcapacity problems, is unlikely to be repeated. The bounceback will mainly be led by demand for fresh tonnage using alternative marine fuels, especially those in the dry bulker and tanker sectors, said MSI managing director Adam Kent during a Sea Asia shipbuilding outlook seminar. Read more at Lloydslist
Longer voyages, aging fleet to boost global tanker freight despite OPEC+ output cuts
MSI’s London-based Director Tim Smith in a report said VLCC spot rate fluctuations are often associated with movements in crude prices and their substantial drop in the first half of March certainly affected freight. Read more at S&P Global.com