Crude oil tanker earnings have never been this bad. Earnings for Very Large Crude Carriers in the first half of 2018 were as low at USD 6,001 per day, with a Suezmax tanker earning USD 10,908 per day and an Aframax making USD 9,614 per day. In addition, the total crude oil tanker fleet has not increased at all in 2018.
The trade war that has emerged between the US, Europe and China increases the uncertainty for the shipping industry, as it negatively affects the free flow of goods. It also leads to changes in the trade lanes and makes it harder for ship operators and owners to position their ships efficiently in the market.
International shipping industry organisations have launched a new website to provide maritime security guidance to companies and mariners. The new website www.maritimeglobalsecurity.org provides security guidance, which the industry supplies, as well as links to useful maritime and military security resources.
BIMCO, ICS, INTERCARGO, INTERTANKO and WSC, called the IMO to advance on challenges regarding the global sulphur cap, to avoid risking safety or unfairly penalise individual ships. The trade associations have submitted a number of proposals to IMO, aiming to help smooth the implementation of the global 0.5% sulphur.
The annual ReCAAP ISC Piracy and Sea Robbery Conference 2018 was held on 12 June in Hong Kong, under the theme “Counter Piracy: Proactive Response”, to underscore the importance of staying vigilant and not taking for granted the success that Asia had achieved in reducing incidents over the past decade.
At IMO’s FAL Committee, on 5-8 June, The Maritime Anti-Corruption Network submitted a paper to the IMO, that discusses the impact of corruption on society, how it acts as a trade barrier and how it hinders social economic growth. BIMCO backed the request to IMO and member states to take a stand against this type of crime.
The growing imports of loaded containers into the US East Coast continue to be a focal point for the container shipping industry, according to a recent research analysis by BIMCO. Growing by 10.4% in Q1-2018, the first three months saw 215,000 TEU more entering the USEC than in Q1-2017.
In 2019 the new mandatory requirements on Electronic Data Interchange will require public authorities to set up systems for the electronic exchange of information to assist ship clearance processes. BIMCO will attend the 42nd session of the IMO’s Committee on Facilitation Committee from 5 to 8 June 2018, urging IMO to harmonise digital data reporting.
BIMCO informed that the US sanctions on Iran are affecting the tanker shipping industry. The immediate effects may be less tangible but they add more uncertainty to the whole shipping industry that has plenty of uncertainty to deal with. Freight rates for crude oil tankers and oil product tankers are making losses.
According to BIMCO, the dry bulk shipping industry is still on the road to recovery, as demand continues to be more that the fleet growth. In the mean time, scrapping and ordering remain low. The improved situation during 2017 is seen in the freight rate levels during the first four months of 2018.
