This week we reported on a mega-merger a long time in the making, the latest major retailer getting into shipping and a clutch of mini bulker sales. Meanwhile, Oslo was the focus of the European shipping community this week, as Nor-Shipping made a welcome return.
It’s been anticipated for so long that when the news of Frontline’s merger with Euronav was finally announced this week it elicited little surprise. But that’s not to undermine the enormity of the transaction — worth $4.2bn and combining a fleet of 69 VLCCs and 57 suezmaxes, plus 20 LR2s.
While analysts said the tie-up is good news for shareholders and investors, the implications for the Tankers International pool are more uncertain. But International Seaways chief executive Lois Zabrocky suggested Euronav was still very much committed to the pool.
Yet the proposed deal raised the heckles of major Euronav shareholder Compagnie Maritime Belge (CMB), controlled by the Saverys family. The Belgian shipping firm said it did not support the combination and instead proposed rebuilding the company as a decarbonisation powerhouse.
It seems that hardly a week goes by without news of a retailer getting involved in shipping. This week, major retailer Lidl announced it was setting up its own shipping line to gain more control over its supply chain. Like many of its peers, the supermarket chain has been hit by supply chain disruption and rocketing container shipping costs. it follows a now well-trodden path of retailers chartering ships, including Walmart, Costco and Starbucks.
The red hot sale-and-purchase market for bulkers has seen one of its biggest deals so far as Angelicoussis’ Maran Dry Management cleared out all but one of its mini cape fleet this week. Chinese buyers are understood to be snapping up the seven conventionally fuelled ships for around $200m. The deal could be seen in the context of the company’s ‘top-priority’ drive to cut its emissions.
If global carbon capture and storage targets are to be met as part of the decarbonisation battle, then hundreds of new ships will be needed to transport it, according to new transport and storage venture Northern Lights. The global goal is for industrial emitters to capture and store 10 gigatonnes per annum (gtpa) by 2070, but Europe alone currently produces 1.3 gtpa, which Northern Lights, backed by Shell, Equinor and TotalEnergies, sees as an opportunity for shipping.
If you think the days of Covid-19 disruption are over, try going to China. A series of stringent lockdowns have been imposed in various cities, with a knock-on impact on shipping. Shanghai’s shipyards have had to down tools as a result and shipowners have been warned of delays to newbuildings.
And finally, this week saw the return of Nor-Shipping in Oslo, and TradeWinds’ editorial team were out in force. We brought you exclusive interviews, breaking news and everything in between. If you missed our live coverage you can catch up here.
