TOP STORY
Middle East tensions dominated the headlines this week after Iran seized control of a container ship in the Straits of Hormuz on Saturday. Its forces took control of an MSC chartered and operated vessel to add further heat to an already tense situation.
The ship, owned by an affiliate of Zodiac Maritime, has now been stacked close to a number of tankers captured in similar circumstances in the Hormozgan archipelago, between the islands of Qeshm and Hormuz.
The vessel was the latest to be caught up in a series of tit-for-tat seizures linked either to US actions over Iranian oil or the wider Middle East tensions centred on the Gaza war.
As shipping digested the latest geopolitical shockwave, analysts warned the potential closure of the Strait of Hormuz would have grave consequences for the crude tanker market. They briefed it would prove more problematic than the Houthi attacks which have driven many shipowners to divert vessels away from the Red Sea.
At the TradeWinds Shipowners Forum in New York, Ardmore Shipping chief Anthony Gurnee warned the Red Sea was far from being safe enough for many owners to return. “We are a long way from it being safe. The fact we are all here in New York means we probably have a connection to a country that the Houthis don’t like much”, he said.
IN THE NEWS
Modern VLCCs took centre stage this week as buyers previously starved of possible acquisition targets suddenly had options on the table.
George Procopiou has found a deal, taking a couple of big tankers in a move which saw him pivot away from ordering his own vessels. Buyers seemed less interested in two VLCC berths put forward by Hanwha in a rare tender.
Interest seemed somewhat warmer in four trading VLCCs offered up by Korea Line. Bahri was the main name in the frame for the quartet, which are yet to sell. However, prices on offer are short of previous expectations at a time when many owners feel tanker values are potentially too rich for the rewards on offer in the charter market.
In the dry cargo space, Ciner Shipping has no worries about investing. It has added four more newbuildings to a vast orderbook and is soon expected to follow up with a couple more. The move, as with its previous orders in the past couple of years, is supported by Chinese finance.
Also opening his chequebook is shipowner John Su. He told TradeWinds reporter Irene Ang how he is looking to build a fleet of potentially 20 LPG carriers and also had container ships in his sights. It follows on from earlier success in the dry cargo market.
In the container segment, Hapag Lloyd has set its stall out with a new strategy it has branded its most ambitious ever. The German flagship carrier put newbuilds and M&A activity on the table as part of a play to keep its spot among the world’s big five liner players.
The constant stream of news out of the reshaped Euronav continues. The company has now sold its ship management business in Greece to third-party specialist Anglo-Eastern.
One shipowner not ready to splash the cash right now is GMS spin-off Lila Global. It has plans to expand its fleet by two thirds to around 70 vessels. However, with frothy prices, now is not the time, chief executive Steve Kunzer said.
“Pricing has been such that it’s not been the right time to buy. Sometimes the hardest thing to do in shipping is to not buy and just to sit in your money and wait for the price to come down,” Kunzer told TradeWinds Asia Bureau chief Jonathan Boonzaier.
LONG READ
A Norwegian equity fund manager sees shipping stocks gaining popularity in the coming years.
Martin Molsaeter, portfolio manager and partner at First Fondene in Oslo, thinks many funds will invest more in shipping companies as the current upturn will last longer than earlier ones.
Historically, shipping stocks have been very volatile with high ups and downs, he told TradeWinds European finance journalist Jonas Walsgard.
“Now it is very good profitability but tanker and bulker companies don’t invest much. That is unique,” Molsaeter said in an interview at his office near Aker Brygge.
PODCAST
In this week’s Wavelength podcast, the TradeWinds news team look at the boardroom brawl at listed bulk operator Genco.
At the TradeWinds Shipowners Forum in New York, Joe Brady asked Genco chief executive John Wobensmith what has been going on.
Also at the New York forum, US Bureau chief Eric Priante Martin heard from shipowners about the impact of geopolitical tensions on shipping.
And in Singapore, Craig Eason spoke to Zemba, an alliance of cargo owners that are willing to pay extra for cargoes to be shipped green, and have signed a contract to do so.
