Shipping tycoon John Fredriksen’s manoeuvres have once again raised questions over what will come next in the ongoing saga of Euronav’s future. The billionaire Frontline backer has increased his stake in the Belgian VLCC and suezmax company, making him the biggest shareholder ahead of the Saverys family. The Saverys family owns shipping company Compagnie Maritime Belge (CMB), which pulled the rug on plans for a tie-up of Euronav and Frontline in January through its 25% holding. All eyes now turn to what the next twist in the tale might be.
London-listed shipbroking giant Clarksons raised eyebrows when it revealed all on its bulging executive pay packages in its annual report. Chief executive Andi Case and finance and operating chief Jeff Woyda’s basic salary held stable at £550,000 ($687,000) and £350,000, respectively. But Case’s package swelled to £10.11m from £6.65m in 2021, which included a bonus of £8.4m. While Woyda took home £3.27m, up from £2.04m in 2021, with £2.2m of the 2022 figure being a bonus.
The container shipping industry is bracing itself for an eye-watering drop in profits. The liner sector collectively reported $34.7bn net income in the fourth quarter of 2022, according to the McCown Container Results Observer.It is the second quarterly downturn after seven straight quarters of record net income. But industry insiders say it is likely just a taste of the declines to come.
A new breed of tanker owner has emergedamid the fog of the Ukraine war, according to VesselsValue analyst Rebecca Galanopoulos Jones. It is epitomised by two United Arab Emirates outfits that have been linked to the 38 tanker buys in the past year. Fractal Marine Shipping has amassed 26 vessels since May 2022, while Radiating World Shipping Services has acquired 12 ships since December. TradeWinds has reported on many of the deals but little is known of the newcomers.
Commodity trading giant Louis Dreyfus Co followed Cargill and Glencore-backed Viterra in calling time on the Russian grain business. The three companies’ withdrawals will take effect in July. Louis Dreyfus cited increased “grain export challenges” from Russia had spurred the decision. Viterra said that its activities in Russia “no longer fit the long-term direction of the company”. What impact these exits from the trade will have on the renewal of the United Nations grain deal remain unclear.
Oil prices have continued at elevated levels since Opec+’s surprise production cutsof more than 1m barrels a day on Monday. Analysts said that the move was negative for tankers with Fearnley Securities saying it would lead to substantially less demand after the cuts kick in from next month. The rising oil price potentially complicates the shipping of price-capped oil for many Greek players, according to analysts.
Elsewhere, Oaktree Capital Management’s failed attempt to sell 5m Torm shares caught the attention of our finance newsletter Streetwise. While TradeWinds’ Green Seas explores the power of swappable batteries to drive electric shipping forward.
