MSI believes that in most cases, owners will opt for either EPL or shaft power limitation (ShaPoLi). “It is understood to be a cost-effective, quick, and unobtrusive process that should not impede a vessel’s usual maintenance schedule and therefore will not absorb tonnage for the installation process over the coming months.” Read more MSI views on this topic at Splash247
Tag: Car/Truck
Yards toy with adding capacity
Amid a record ordering boom – and with an eye on fleet renewal ahead of IMO 2050 – shipbuilders are looking at expansion for the first time in a decade.
MSI Director Stuart Nicoll states that “physical capacity tends not to disappear as yards are either mothballed or put to work on other forms of heavy industry, effective capacity is a lot easier and quicker to bring back online when markets improve, though one limiting factor can be the availability of a trained workforce“. Read more views at Splash247
Shipyards face cancellations over weak freight market and interest rates
Yards have built up a large order backlog, with deliveries scheduled up until 2026. This means that construction of most vessels on order will start in the next two years, when buyers will start to pay the remaining ship price. MSI is currently expecting to see an increase in cancellations amid rising interest rates and slowing economic growth. Read more at Lloydslist.
Tight cargo space and no relief in sight
MSI expects no easing of capacity bottlenecks in the PCTC sector in the short to medium term, despite the number of new car shipments falling due to supply chain bottlenecks.
MSI warned automobile groups and other cargo owners that the situation could even worsen this year and in 2023. Read more at DVZ Deutsche Verkehrs-Zeitung
Lack of free tonnage keeps charter market insulated against freight rate falls
While a softening in consumer demand has weakened global freight rates, the containership charter markets are largely insulated, due to the absence of open tonnage and the duration of time charters.
Although there are signs of the red-hot charter market cooling, particularly in the smaller sizes, and some loss of appetite for multi-year fixtures, MSI’s suggests there is no immediate signs of major corrections. Read more in The Loadstar
MSI adds environmental benchmarking tool to HORIZON vessel data platform
MSI has added a new tool, Environmental Credentials, to its FMV output, enabling users to understand the performance of their vessels and fleets – and those of their competitors. The new service provides estimated ratings against the International Maritime Organization’s EEXI and CII regulations to 2026 and Annual Efficiency Ratios for 2020 and 2021 measured against the Poseidon Principles trajectory and a ‘zero emissions’ scenario by 2050. Read more here Hellenic Shipping News
Vessel efficiency will be key to employability
Speaking to an audience of shipping finance specialists, Dr Adam Kent, MSI’s Managing Director, noted the boom in the container ship sector has been mainly supported by inefficiencies such as port congestion. It has been a driving force in the container ship and to some extent, the dry bulk sectors, with trade and tonne-miles only telling part of the story. Read more on Riviera
Podcast: In Focus – Shipping markets and shipbuilding impact
MSI Director, James Frew, talks to The Maritime Podcast and puts the spotlight on the outlook for the shipping markets and shipbuilding, including the developing orderbook, alternative fuels and new ship types. Listen to the podcast here Seatrade Maritime
Vehicle carriers: Positivity despite auto parts anxiety
PCTC utilisation levels and charter rates during 2022-23 are on track to surpass the peak levels seen at the top of the 2006-08 market cycle, says MSI’s PCTC analyst Niklas Carlen in this Quarterly Outlook article by LloydsList
How EEXI and CII will impact the S&P market
Decarbonisation programmes set by the International Maritime Organization (IMO), shipping’s regulatory body, will be one of the most difficult tasks for the industry in the coming years. This starts with the implementation of the EEXI, and CII criteria, all of which aim to reduce carbon intensity and will impact prices of the existing fleet. The first phase begins in January 2023. Read more in Splash Extra