Selected News Headlines 2020/Q2

THIS WEEK’S HEADLINES SELECTED BY INTERCARGO (15/06/2020 – 21/06/2020)

Union Backs Seafarers’ Right to Stop Work Despite Risk to Global Trade

The International Transport Workers’ Federation said it will now support ship crews’ rights to stop working, even if that comes at the cost of disrupting global trade. (gCaptain: click here)

Weary sailors pose risk to world merchant fleet: U.N. shipping chief

Hundreds of thousands of weary seafarers stuck on ships for many months and unable to go home due to the coronavirus pose a risk to the safe operation of the world’s merchant fleet, the UN’s shipping chief said (Hellenic Shipping News: click here)

 Bunker fuel quality worsens due to IMO 2020 and coronavirus pandemic

Marine fuel quality has worsened this year amid production challenges from the IMO 2020 switch and coronavirus pandemic, with substandard issues most conspicuous in Europe, according to bunker experts. (Tradewinds: click here)

Shipping continues to feel impact of health crisis

While some markets have been hit harder than others, the operational challenges have been common to all and shipping leaders say the problems are not going away just yet (Lloyd’s List: click here)

Chinese state companies buy US soybeans as Brazilian stock dissipates

China’s state-owned soybean companies have been purchasing large volumes of US soybeans for the last quarter of 2020 as the Brazilian old crop beans stock declines, making the South American oilseed more expensive than the US crop, sources said

(Hellenic Shipping News: click here)

Capesize earnings in record increase for second day as dry bulk rates spike

Capesize earnings saw their biggest-ever recorded increase on Thursday for the second consecutive trading day, while activity in the paper market has begun to cool off. (Tradewinds: click here)

Baltic index sees best day ever as capesize vessel rates surge

The Baltic Exchange’s main sea freight index marked its largest single-day percentage rise on Thursday, as capesize vessel segment rates jumped 50% on strong iron ore demand (Hellenic Shipping News: click here)

Bulk report – Week 25

Capesize: The Capesize market trajectory this week has been one of the steepest rallies the sector has experienced. Panamax: A dramatic week in the Panamax world with the Atlantic market sparking into life. Supramax/Ultramax: BSI, like the larger sizes, gained during the week closing 45 points up from Monday. Handysize: Rates remained strong in both basins and further improved throughout the week. (Baltic Briefing: click here)

THIS WEEK’S HEADLINES SELECTED BY INTERCARGO (08/06/2020 – 14/06/2020)

 300,000 seafarers trapped at sea: Intercargo

Intercargo chairman Dimitris Fafalios has warned of an invisible humanitarian crisis unfolding over Covid-19 regulations that either restrict or ban crew changes in countries around the world. (Seatrade Maritime News: click here)

 UN calls for action on seafarer repatriation

More than 300,000 seafarers are working beyond their contracts. Travel bans and quarantines mean there is no way of leaving their ships or replacement crews taking over (Lloyd’s List: click here)

Unions ready to take action as crewing deadline passes

Today marks the deadline for what was describe in May as the final day before crews working beyond their stipulated contracts must be repatriated. (Splash 247: click here)

IMO again requests ‘key worker’ status for seafarers

Seafarers continue to languish aboard ships, as the IMO renews its call for governments to help facilitate crew changes (Tradewinds: click here)

If seafarers were tourists, crew changes would not be a problem

For too many governments, reopening bars is a higher priority than sending stranded crews back home, and that is morally unacceptable (Lloyd’s List: click here)

Stellar Banner scuttled off the coast of Brazil

Polaris VLOC dispatched to the seabed in spectacular fashion as insurers face minimum $60m payout. (Tradewinds: click here)

 Canada Creates New Visa Procedures to Facilitate Crew Changes

Canada is joining the list of nations responding to the growing calls to address the challenges in completing crew changes due to the restrictions designed to stop the spread of the coronavirus. A broad collation of shipping organizations, maritime associations, ship owners, and labor are all calling for action to address the growing humanitarian crisis for seafarers. (The Maritime Executive: click here)

Crew Transfers: Panama Assists Carnival; New Zealand’s New Rules

The Republic of Panama provided unique support to Carnival Cruise Line as part of its ongoing efforts to provide humanitarian support to the shipping industry during the global pandemic. Panama is supporting the shipping industry both by maintaining smooth operations at the Panama Canal and assisting with crew transfers. (The Maritime Executive: click here)

COVID-19 Implications for Marine Insurance

COVID-19 will have both short-term and long-term implications for the marine insurance market. On 30 March 2020, as part of two IUMI webinars, HFW presented on the potential implications for marine insurers, and the issues being faced by insureds (Hellenic Shipping News: click here)

 Grain and soya trade: a bright outlook

Events in the past few months have darkened the outlook for many seaborne dry bulk commodity trades in 2020 and later. Uncertainty about future global trends, both in the near and longer term, has been greatly intensified by the economic recession resulting from the coronavirus pandemic. Yet grain and soya trade looks well placed to continue growing solidly. (Hellenic Shipping News: click here)

China curbs coal imports after 5 months of record inflows – sources

China has stepped up customs checks for coal imports, leading to lengthy processing delays at ports, four sources familiar with the matter said, as the country seeks to bolster the domestic coal industry. (Hellenic Shipping News: click here)

Australian Coal Exports Could Offer Dry Bulk Market Respite

With coal being among the “key” commodities for dry bulk trade, alongside iron ore, it’s worth taking a look at the trade patterns which have emerged so far this year, especially since in a number of countries, coal is being phased out (Hellenic Shipping News: click here)

Dry Bulk Market Report

Capesize: The Capesize market made new highs for the year this week after strong iron ore demand to the far east continued to develop in the market. Panamax: The Panamax market witnessed a substantial recovery this week, despite a lethargic week of activity in Asia and a complex market to call in the Atlantic – at least until midweek when the EC South America market exploded into action. Supramax/Ultramax: A positive week across most areas for the sector with stronger demand from the US Gulf and sustained demand from the Indian Ocean even drawing vessels from south east Asia. Handysize: More activity was reported from east coast South America this week with rates further climbing. (Baltic Briefing: click here) 

THIS WEEK’S HEADLINES SELECTED BY INTERCARGO (01/06/2020 – 07/06/2020)

 Shipping industry warns of trade logjam as crews remain stranded

Global economy at risk with 400,000 sailors stuck aboard vessels or in port (Financial Times: click here)

 IMO: Guidance for flag states concerning surveys and certificate renewal

The International Maritime Ogranization (IMO) issued a new circular providing guidance for flag States regarding surveys and renewals of certificates during the COVID-19 pandemic. (Safety4Sea: click here)

 Giant Ore Carrier Stellar Banner Refloated Off Brazil

Salvors in Brazil have refloated the stricken Stellar Banner more than three months after the VLOC ran aground. (gCaptain: click here)

Singapore team launches Singapore Crew Change guidebook

The Maritime & Port Authority (MPA), The Singapore Shipping Association (SSA) and The Singapore Maritime Officers’ Union (SMOU), in cooperation with the International Maritime Employers’ Council Ltd (IMEC) and The World Shipping Council (WSC) have formed the Singapore Crew Change Working Group (SGCCWG) to facilitate crew changes in Singapore. (Safety4Sea: click here)

An introduction to testing for COVID-19

The Coronavirus, the immune system – and the tests. Although the Coronavirus that causes COVID-19 is relatively new to us, the virus behaves like other viruses in the same family. (Hellenic Shipping News: click here) 

Maritime Risk Focus: Inventory of Hazardous Materials (IHM)

Over the last decade international and regional ship recycling legislation has been adopted, some of which is already in force. The IMO Hong Kong Convention and the European Union Ship Recycling Regulation are two key pieces of such legislation. A cornerstone in both the Hong Kong Convention and the EU Ship Recycling Regulation is the Inventory of Hazardous Materials (IHM). (Maritime Cyprus: click here)

 Officer shortage to widen despite COVID-19 downturn

Despite the effects of COVID-19 on the shipping industr, the current shortfall in officers to crew the world’s merchant fleet is set to widen (Ship Management Int’l: click here)

 Panama Canal transits see substantial drop due to Covid-19 pandemic

The Panama Canal is feeling the effects of the Covid-19 pandemic with a substantial drop in ships transit in April and May, Panama Canal Authority (ACP) Administrator Ricaurte Vásquez, said (Seatrade Maritime News: click here)

 Commodity Exports to China Could Fall by $33 Billion Says UN Study

A study from the United Nations Conference on Trade and Development (UNCTAD) finds that total commodity exports to China could fall dramatically as a result of the coronavirus crisis. Citing the dramatic drop in demand for energy products, ores, and gains as the factors impacting total exports to China, the UN report raises concerns for economies that rely on exports of primary goods. (The Maritime Executive: click here)

China May iron ore imports fall amid high prices, demand remains stable

China’s iron ore imports in May fell 9% from April but were higher than same period a year ago supported by stable shipments and robust steelmaking demand, though rising prices may have curbed some purchases (Hellenic Shipping News: click here)

China’s coal imports fall nearly 20% in May even as demand rises

China’s coal imports in May fell nearly 20% compared with a year earlier even as demand recovered at power plants and industrial users, customs data showed on Sunday. (Hellenic Shipping News: click here)

Capesize spot rates rise as iron ore output grows in Australia

Capesize bulker rates have jumped significantly as Australian iron-ore mines ramp up production amid Covid-19 disruption to Brazil volumes. (Tradewinds: click here)

Bulker freight rates tick up as markets finally find their feet

Bulker markets were mostly up again across the board on Friday, completing a week of significant growth across all tonnages — particularly for capesizes. (Tradewinds: click here)

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)

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)

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)

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)