Editor’s selection: Scramble for tankers amid Mid East strife, Euronav resets and narco’s boxship plunge

TOP STORY

Shippers are scrambling to secure tankers to carry oil cargoes ahead of any regional escalation of the Israel-Hamas war, Euronav said on Thursday. The Belgian owner noted that rates for crude vessels had started to climb again since last week. “Both suezmaxes, as well as VLCCs, are enjoying a strong rally as charterers rush to secure supply ahead of any widening Middle East Gulf conflict,” the company added in its third-quarter report.

IN THE NEWS

Maersk cuts | Danish liner giant AP Moller-Maersk intends to slash its workforce as the downturn in container markets hits the real economy. The world’s second-largest liner company plans to cut an additional 3,500 positions on top of existing cuts. This initiative is expected to bring the global workforce to below 100,000 positions, resulting in cost savings of $600m, the company said.

Euronav scraps dividend | Belgian tanker giant Euronav has scrapped its dividend payment for the third quarter as it awaits a change of control following the Frontline-Compagnie Maritime Belge deal. On Thursday, Euronav said there would be no payout to shareholders while the transactions played out.

Costamare income falls | Costamare, a major owner of container ships and bulkers, has reported a decrease in net income for a third consecutive quarter — even though the company maintains consistently high profitability and liquidity levels, enabling it to continue its fleet renewal, sustain dividends and engage in share buybacks.

Economou sues Performance | Shipowner George Economou is suing directors and insiders of New York-listed Performance Shipping for allegedly breaching their fiduciary duties to shareholders in dominating voting control of the company through a dual-class ownership structure.

Unity expands | Low-profile London owner Unity Maritime is taking the first steps to fleet expansion through a crew management joint venture with Singapore’s Synergy Marine. Unity, owned by Danny Ungar, is targeting up to 50 bulk carriers through new operation US Crewing Services in Varna, Bulgaria.

Maersk ammonia LOI | Denmark’s AP Moller Holding is eyeing a move into gas shipping as it lines up an order for up to 10 very large ammonia carriers worth about $1.1bn. Newbuilding sources said AP Moller interests have signed a letter of intent with South Korean shipbuilder Hyundai Samho Heavy Industries to build four firm vessels of about 93,000 cbm, capable of carrying a full cargo of ammonia.

INTERVIEW

Greek shipping stalwart Panos Laskaridis has been less of a fixture on the shipping conference circuit in recent years. However, nobody should mistake this for a slowdown in his core shipping business. After splitting family interests with his brother, Thanassis, two years ago, the major owner has embarked on a course that will see his Laskaridis Shipping and Lavinia Bulk companies expand with bulker newbuildings and gradually secondhand tankers. He spoke with TradeWinds’ Harry Papachristou for our series of articles focused on Greek shipping.

COMMENT

In this week’s Wavelength, Terry Macalister looks at how operators who have been busy buying new vessels have been sowing the seeds of their own demise. The container sector looks well on the way to that financial pile-up with some comfortable profits in 2023 turning into major losses next year — and more likely trouble after that, he argues.

AND FINALLY...

Dramatic footage of drug traffickers leaping from a CMA CGM-operated container ship off Spain has illustrated the ongoing menace faced by seafarers. Spain’s Civil Guard reported that the incident occurred 11 nautical miles (20 km) from Ceuta. The film begins by showing bags of drugs hanging from the stern of the Marshall Islands-flagged vessel. As a crew member points the camera to the rear of the ship, the first smuggler is seen plunging into the sea, followed by another shortly afterwards. The masked men are then shown swimming near a patrol boat, before being filmed barefoot on the deck following their arrest.