TOP STORY
The G7 price cap on Russian oil was in the firing line this week with news it had triggered an exodus of about 800 tankers from the International Group of P&I Clubs.
The 12-strong group told British parliamentarians that the scheme — designed to limit the Kremlin’s revenues to fund its war in Ukraine — is flawed and is proving to be “increasingly unenforceable”.
The rapid growth of a shadow fleet hauling sanctioned oil is the direct consequence of a regime that imposes “severe restrictions and compliance obligations” on companies that play by the rules, the International Group said.
Ships without any links to the G7 have the freedom to operate without running the risk of breaching Western sanctions.
The price cap therefore “appears increasingly unenforceable as more ships and associated services move into this parallel trade”, the International Group said.
IN THE NEWS
Russia is not the only headline-grabbing priority for insurers right now. The insurer of the Baltimore bridge that was destroyed when it was hit by a container ship is reportedly preparing to pay $350m to the state of Maryland.
Chubb is expected to approve the sum within weeks, the first major payout since the 26 March disaster that left six construction workers dead and a likely multibillion-dollar bill for damages.
Has the count finally stopped on what could be the largest shipbuilding programme of all time? Well, maybe is the word this week after QatarEnergy signed its latest deals.
Half a decade after the plan first saw the light of day, a staggering 122 vessels worth close to $30bn have been contracted over two phases.
It follows a flurry of new deals in the past few days on a much talked up 18 supersize vessels worth $6bn in total that will form the next generation of Q-Max capacity vessels.
Newbuilding activity has been dominating the front pages of the TradeWinds print edition and it continued this week with Greek owner Pantheon adding its name to the VLCC order run.
Like many of its peers, it has turned to a Chinese shipyard for VLCCs, in what is a major shift in a market dominated in the past decades by South Korea.
Also signing for new ships is trader Trafigura. The company made good on its pledge to operate ammonia-fuelled LPG carriers with a new order in South Korea.
The Swiss charterer and shipowner signed up for four midsize vessels at HD Hyundai Mipo Dockyard for delivery from 2027.
Shipbuilding reporter Irene Ang also offered readers a look inside one of the major players on the scene in the past year.
Since going public a year ago Seacon Shipping has splashed close to $700m on new vessels and secondhand investments.
General manager Xin Man told TradeWinds about how the ships were being set to work and how the next round of investment could come in a new niche.
Dry cargo sale and purchase activity has been a further area of high activity at the start of this year. Making a move this week is Greek owner Costamare, which has penned a $30m plus deal with Cobelfret for a capesize.
In the tanker market, former sparring partners Frontline and Euronav have been selling older tonnage in the latest reshaping of their fleets after failed takeover negotiations. Euronav was celebrating a tidy profit on a VLCC, while Frontline has cashed in one of its older suezmaxes.
LONGER READS
Only a week ago Antonio Carlos Balestra di Mottola was revealed as the new chief executive of d’Amico International Shipping. Having taken the chair from his stepfather, Paolo d’Amico, Ian Lewis charted his rise from running a family fund, to investment banking and his move into shipping at the expense of his water polo hobby.
Asia bureau chief Jonathan Boonzaier caught up with Chavalit Frederick Tsao, who was once a familiar face on the Singapore shipping circuit.
Today the 67-year-old chairman of Singapore-headquartered Tsao Pao Chee Group has a very different mission. After meditation boosted his awareness, he has been busy trying to save the planet, in part via a major reshaping of the group’s activities.
PODCAST
In this week’s episode of the Wavelength podcast with Craig Eason: Are the sanctions and oil price cap working? And are we building enough LNG carriers yet?
