Sustainability
According to Tradewinds, the Poseidon Principles group of banks has agreed a “significant” revision to its reporting framework to move shipping portfolios into line with Paris climate targets. The 30 signatories said the move also aligns with “ambitious” new International Maritime Organisation decarbonization goals. The banks, which are committed to measuring and reporting the carbon intensity of their loan portfolios, represent about 65% of global ship finance. They will now aim for net zero emissions in their portfolios in or around 2050. Targets of between 20% and 30% emissions reductions by 2030 and 70% to 80% by 2040 are included in the new agreement, against a 2008 baseline. The decision was unanimous, the group said, and followed the IMO’s adoption of a revised greenhouse strategy in July.
According to the same source, Dry bulk giant Cargill and a team of partners have designed a Kamsarmax bulker that will be ready to accommodate both methanol fuel and wind propulsion. The US commodities player’s Cargill International unit has teamed up with Greek shipowner Minerva Dry, classification society Lloyd’s Register and Chinese yard group Nantong Cosco KHI Ship Engineering (Nacks) to develop the design. Cargill has taken a leading role in powering bulkers of this size with wind-assisted propulsion and in methanol by ordering the first bulker powered by the fuel. Cargill Ocean Transportation is now operating the Mitsubishi Corp-owned 80,700-dwt kamsarmax Pyxis Ocean (built 2017) with wingsails developed by BAR Technologies’, and president Jan Dieleman has told TradeWinds that the company is considering whether to focus its wind propulsion investment on newbuildings. Unlike that ship, the new design would be ready for rotor sails. Cargill also has charters for at least five methanolfuelled newbuildings, with two owned by J Lauritzen and two by Mitsui & Co.
Dry Bulk
Four bulkers called for offers this week, one Capesize, one Kamsarmax and two Handysize. The Capesize 2011 built in Japan was rumoured sold for $25.5 million to Greek Buyers, while market sources suggest that the Kamsarmax 2013 built in Japan, fitted with Scrubber and with non-eco Main Engine was rumoured sold for $23.8 million. Appetite for eco/modern units and quality tonnage around 10 years old remains strong.
The Baltic Dry Index rose to an 11-month high on Thursday as demand for Capesize vessels remained strong.
Based on our records, 56 Ultramaxes have been sold so far in 2023. Greeks are top buyers having purchased 18 units or 32%. Other top buyers are Far Easterns, Europeans, Middle Easterns, and Koreans.
On the Standard Capesize sector, we count 70 vessels sold in 2023. Greeks have bought more than 30% of the Capesize sold this year.
Tankers
Despite current Crude tanker spot earnings are well below their 2023 average, the TC market looks very resilient. SnP values on the older units seems to have eased, however values for modern units remain strong.
Market sources suggest that two Aframaxes were sold for $70 million each to Korean buyers with 3 years TC attached. This is a firm price compared to a 2019 built unit which was sold for $66million back in May. Also for comparison purposes, two resale scrubber fitted Aframaxes were sold for around $76 million in February this year. So far this year, 6 Aframax 5-year old or younger have been sold.
Average crude tanker rates remain well above their 10-year average, despite the recent drop in the spot market. Reduce crude exports from the OPEC+ have put pressure on the rates. On the other hand, strong oil demand from China, strong Atlantic exports and trade dislocations support the market.
Tanker demolition market remains very quiet, with only one product tanker sold for recycling in August. Zero crude tankers have been sold for Recycling the last 12 months!
According to Reuters, Euronav second shareholder Compagnie Maritime Belge (CMB) is offering to acquire Frontline’s 26.12% stake in the company for $18.43 per share, which will be followed by a mandatory public offer at the same price, the Belgian oil tanker and storage operator said on Thursday. Shares of Euronav, which were suspended earlier in the day after spiking on media reports about the company going private, jumped around 18% as trading reopened at 1330 GMT. Antwerp-based CMB, which currently owns with its affiliates 22.93% of Euronav shares, opposed the merger with Frontline as soon as the discussions were announced. The proposed transaction would also involve Frontline acquiring 24 VLCC tankers from the Euronav fleet for $2.35 billion, Euronav said in a statement. Frontline also confirmed on Thursday discussions with CMB and Euronav, while CMB responded to a Reuters email that it would communicate on the matter, without specifying when.
Containers
The plummeting of the market continues and the freight indices becoming softer for four consecutive weeks.
The activity on the chartering front is slower and charter rates declined along with shorter period employments. Based on several reports, we noticed six new fixtures on the Panamax and the Feeder segment. A 2006 and 2008 built Panamaxes secured employment for two to fourteen-months and two-months period respectively, both at $18k/day. Two Feeders were fixed for three to six months at low $12k/day and $9k/day, while two smaller geared Feeders fixed at region $12k/day between six to eleven months.
Limited activity on the SnP front as only one transaction confirmed this week. A twenty-year-old, Korean built, Post Panamax reported sold to Swiss Global Operators at undisclosed price. Market sources suggest that a 2000 HHI built Panamax (4,800 TEUs), is rumoured to be committed around $12million to Chinese-based interests.
In the newbuilding market, the activity remains steadily weak, on a w-o-w basis. A German-based Owners confirmed an order of two methanol-powered Feeders (1,250 TEUs) at Wenchong shipyard in China, at undisclosed price. The containerships are expected to be delivered in 2026.
The last couple of weeks, the recycling market is moving bit slowly with only one containership, a 1988 French-built Feedermax which reported sold to Indians Cash Buyers at $580 per lightweight.
Finance
Yen reached a 1-year low against the dollar at 149.74.
US Mortgage rates jumped again this week — remaining at a 23-year high and increasing the likelihood that rates could soon hit 8%. The rate on the average 30-year fixed mortgage increased to 7.49% from 7.31% the previous week, according to Freddie Mac, following the yield of the 10-year Treasury, which spiked to a 16-year high this week. Rates are at their highest point since December 2000 for a second week in a row, with few signs of softening. Steeper rates continue to smother homebuyer demand, forcing the price-conscious to the sidelines
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