RECORD PRICES IN THE ‘WILD WEST’
VLCC orders remain big news following an explosion of interest for the tankers in the first quarter of this year.
We started 2024 knowing only one new VLCC would be delivered in the whole year. In the last three months, we have seen some of the biggest names in the tanker business contracting new VLCCs at a time when it’s hard to find a slot in the shipyards.
The latest to make a move is Ray Car Carriers, paying the highest price since the financial crisis to get its hands on the vessels.
With slots in such short supply, some are comparing the situation to the Wild West. This colourful article from Lucy Hine really brings the reality to life.
Also on the newbuilding front, Evangelos Marinakis is making an interesting new move. He has entered a new arena in a move that could extend to eight mid-size LPG carriers to extend a push from the Greek shipowner into the gas space. Brokers priced the ships at about $66m apiece with LPG dual-fuelling baked into the figure.
IN THE NEWS
A return of Somali piracy with the hijacking of a bulk carrier in the Indian Ocean has added a chilling second security fear for shipowners at a time of historically high risk. A gang of armed men stormed the 58,000-dwt Abdullah (built 2015) on Tuesday, with an apparent resurgence of Somali piracy adding to the now deadly missile and drone attacks in the Gulf of Aden and the Red Sea.
All 23 Bangladeshi seafarers were being held hostage on the bulker, owned by a division of steel producer KSRM. Terrified crew had earlier phoned their families with warnings as pirates boarded the ship. Chief officer Atiq Ullah Khan sent an audio message to his wife. “If they are not paid, they are ordered to kill us one by one,” he said.
In an unusual development, an Indian harbour pilot has moved to arrest a ship as he pursues a personal injury claim. Captain Shishir Nishkant Patange, a pilot working for the Deendayal Port Authority, saw his career end after being hurt by a gangway collapse, which resulted in him falling off onto the wharf. His left wrist was severely severed, crushed, and fractured. Patange has secured an arrest warrant against Fujian Shipping bulk carrier having accused the vessel involved in the incident and its owner of breach of duty by failing to maintain proper rigging and monitoring of the gangway.
Some big names in the shipbroking world are on the move. Braemar global head of tankers, David Collins has left the company in what he branded a “tough decision, but the right decision”. He follows his colleague Nick Edwards, the other senior name on Braemar’s deepsea tankers desk, who resigned two weeks ago. Braemar is concentrating on bringing through the next generation of leaders after the high-profile departures.
At the same time, Clarksons has seen a major change in leadership in Greece. Clarksons Hellas managing director Savvas Athanassiades is leaving by mutual consent after 20 years of service, the brokerage said. He is being replaced by global head of tankers, Neo Tsangarides.
INSIGHT
Cargill has achieved big fuel savings from its first long-term trial of wind power. However, it still has some work to do if the technology is to be commercially viable. Successes of the first six months of trading of the retrofitted 80,962-dwt kamsarmax bulk carrier Pyxis Ocean (built 2017) included the safe operation of the hard sails, interest from charterers and good access to most ports, Cargill said.
Cargill Ocean Transportation president Jan Dieleman told TradeWinds: “Overall we’ve been very pleased with the results … We are very confident that wind has a role to play going forward.”
LONG READ
One series of articles readers enjoyed this week involves former BRS boss Tim Jones. Ian Lewis tells the story of how Jones and his wife had retired to run a French truck stop before a phone call changed his life around. Jones is now back where he started his career as president of Neu Shipping and working with the owning family on some interesting projects.
Another veteran of the broking world was also in the spotlight. Michael Tusiani, the chairman emeritus of Poten & Partners, became the first broker to wear the Connecticut Maritime Association’s commodore hat.
Reflecting on the present good times and previous industry cycles with similar geopolitical triggers, he explained: “It’s a reminder that the best times for shipowners typically have come out of crises. Everybody’s making a bundle of money. But I tell brokers all the time, to put your bonus in the bank. There’s a cycle and it will come back down.”
WAVELENGTH PODCAST
In the latest episode of the TradeWinds Wavelength Podcast we dive into the impact of the Red Sea situation on container rates and the benefit that some owners have seen vanishing should the Houthi threats be removed and shipping resume transits of the Red Sea and Suez Canal.
And, as IMO member states send delegations to the IMO for environmental talks, we focus in on the planned assessment of the economic and technical measures that are under discussion to decarbonise shipping.
We speak to UNCTAD about about the need for being thorough and quick in the work while the whole shipping world waits.
