Editor’s selection: Overcapacity haunts container ships, Euronav sells oldies and Cargill criticises carbon rules

While Halloween is still weeks away, the ghosts of overcapacity are already haunting the container shipping sector. The orderbook has reached a new high of 7m teu while demand is on the wane, setting the industry up for structural overcapacity. The global orderbook-to-fleet ratio stands at 30% as of the end of September according to Alphaliner, while charter and freight rates have been plummeting.

Soaring vessel values have apparently tempted tanker major Euronav into selling mode once more. The US-listed, Belgian company has restarted its programme of selling off its oldest tankers as prices hit dizzying heights. Broker sources said the company is in advanced talks to sell a 2006-built tanker for an estimated $35m.

We may be just three months away from the Carbon Intensity Indicator regulations coming into force for much of shipping, but for Cargill’s Jan Dieleman the rules just don’t make sense. He said the way the regulation factors port stays into the calculation of a ship’s rating is a problem. He points out that, in reality, owners do not control port stays which makes it an unmanageable risk.

An ongoing standoff between ship manager V.Ships Norway and US owner Tiptree Marine continues to rumble on. The dispute centres on a so-called “magic pipe” pollution case involving the crew of the Tiptree-owned and V.Ships-managed, 46,100-dwtSwift Winchester (built 2009) in the US, although the vessel has been cleared to leave by the authorities pending investigation, according to sources. V.Ships’ refusal to sign a customs clearance document has raised questions over the severe legal and commercial implications of such cases.

The long-anticipated price cap on Russian oil shipments took a step closer to implementation this week as the EU rolled out an eighth round of sanctions against the Kremlin. The cap enables Russian oil to be shipped outside of the EU, but only below a certain price. Details of the price are yet to be ironed out though.

The looming sanctions on Russian oil shipments are apparently splintering the tanker market, with vintage vessels selling for prices once considered “inconceivable”, in the words of one broker. The belief is that new players are seeking to take on such veteran ships to carry Russian cargoes once the ban kicks in towards the end of this year.

And finally, six months into the job, Odfjell CEO Harald Fotland is bringing in the management consultants. The Bergen-based tanker firm is opening its doors for 24 hours only to undergraduate consultants from the Norwegian School of Economics to pitch their ideas on digitalisation and decarbonisation.