- Oil prices rose on Monday as upbeat manufacturing data from China, the world’s biggest crude importer, although uncertainty about global economic growth from potential U.S. tariffs loomed.
- Brent Crude climbed 76 cents to $73.57 a barrel at 02.06 GMT while U.S. West Texas Intermediate crude was at $70.51 a barrel.
Prices gained after official data showed that China’s manufacturing activity expanded in February. Investors eyeing China’s annual Parliamentary meeting scheduled 5th March for further measures to support its battered economy.
- Goldman Sachs analysts were more positive suggesting to slightly better economic activity in early 2025, although the imposition of the extra 10% U.S. tariff may prompt retaliatory measures.
- Technical Innovation that might change the mode of Domestic transport in not too distant future but may also affect future longer distance travels.
- Imagine flying just above water to travel from Kolkata to Chennai for just Rs.600/- in just 3 hours ? That’s the cost of a movie ticket with popcorn. Revolutionary Flying Boats from Water Flight Technologies promise to deliver. But wait, these aren’t these aren’t Boats or Planes. They are Sea Gliders that fly just 4 meters above water using something called ‘Ground effect’. Think of it as surfing on air cushions, like small ships can be launched sitting on Air Ballons, at speeds upto 500kmph. It also aims to offer Zero carbon travel options. First Ferry to fly this year after LR signs on to certify the craft from a U.S. start up. These innovative vehicles not only reduce environmental impact, but also provide a compelling alternative to traditional modes of transport. Mr. Anand Mahindra amazed by water craft offering such options compares IIT Madras to Silicon Valley and is hyping them up, calling the design stunning and praising IIT Madras for rivalling Silicon Valley in nurturing this start up. This is not a fancy concept. No, they already have a working prototype, so look forward to not only passenger transport but also manufactured goods avoiding roads/bridges, pollution of air, damage/loss of transport mode and pilferage/loss of cargo reaching destination.
- Norwegian Bunkerer Haltbakk Bunkers threatened to boycott US Naval Ships due to tempers at the Zelinsky and Trump-Vance meeting at the White House. The Norwegian Govt. has denied the boycott is in line with the Govt policy.
- Bulker and tanker owner Seacon Shipping Group expects to post a big jump in 2024 earnings in better markets. The company also benefitted from offloading a string of 20 vessels in 2024.
- Two container vessels have collided at a port in Hong Kong, causing at least three containers to fall into the water.
An Ocean Network Express (ONE) operated ship and an AP Moller-Maersk vessel came into contact over the weekend. The 14,026-teu ONE Columba (built 2018) collided with the 9,640-teu Clifford Maersk (built 1999), which was berthed at Hong Kong’s Kwai Tsing Container Terminal. A spokesperson for Maersk confirmed that Clifford Maersk was hit by the inbound One Columbia while she was berthed in the Hong Kong port.
Higher costs and reshuffled fleets in play if US moves forward with Chinese ship charges. The most disruptive move would include penalties for operators that have Chinese built ships in their fleet.
Greeks pile into Russia trade as discounted crude flows to India and Turkey. Greek shipping players have jumped at the chance to lift price cap-compliant Russian oil data shows.
The volume of Russian crude being carried on Greek-operated Aframax tankers has jumped to a 12-month high, with Russia appearing to offer discounted oil to buyers in India and Turkey, said a senior freight analyst. “When looking at the profile of some of the Greek-operated vessels which lifted Russian crude since 10 January, the wide range of operators is surprising”.
The average vessel age is 12, with 26% of these vessels five years or younger. This demonstrates there is no barrier to entry in terms of age.
It may be noted that 60% of these vessels have not transported Russian crude for at least six months, while 15% have had no Russian voyages since 2023.
Two of these vessels lifted Russian crude for the first time, previously working trades in Europe and the US Gulf.
- India’s Great Eastern Shipping has received the top debt grade from domestic agency Crisil Ratings. The country’s biggest privately held shipowner published a note from the agency revealing an upgrade of its INR 19bn ($218m) non-convertible debentures from “AA+” to “AAA”.
- US Measures against Chinese-Built ships could ban 60% of the Global Fleet. The Tanker market could face significant consequences from potential US measures against Chinese-built ships. This provision allows the US to address unfair foreign trade practices affecting US commerce.
The capesize market saw a strong upward trajectory throughout the week with the BCI 5TC surging from $8620 on Monday to $15074 by Friday last week, reflecting improved sentiment across both Oceans. The Pacific market was notably firm, driven by a tightening tonnage list, steady demand from Miners and Operators, and increased Coal cargoes, which underpinned rates. The C5 index rose from $6.65 on Monday to $9.885 by Friday. In the Atlantic, South Brazil and West Africa to China route saw consistent support, bolstered by fresh cargo and a shorter ballaster list.
Panamax
Rates in the Atlantic came under severe pressure last week. Sizeable losses witnessed on the T/Atl routes, with absent mineral demand and long tonnage counts only compounded a bleak situation. Asia initially appeared to resist the negative sentiment emanating from other areas as the week started out with healthy volume of fresh enquiry and volume of fixtures. The North Pacific saw a steady flow of enquiry along with mineral demand from Australia and Indonesia but less dominant. The end of the week rates began to look softer in most areas. E.C.S. America saw moderate levels but Index type tonnage were only able to achieve low $14k levels delivery at the loading port with a BB. Nopac rounds hovered around $12/13,000 mark for a 82,000tdw.
Ultramax/Supramax
The Atlantic was described as stable, the US Gulf was fairly busy, rates remained flat. The S.Atlantic lacked fresh enquiry and rates eased, a 61,000tdw was reportedly fixed basis delivery Recalada for trip to A. Gulf in the mid $12,000 plus $200k BB. The Med-Cont saw a 55kdwt from Continent to Med at $12,500. From Asia, similar sentiment continued. It was reported a 56,000tdw was booked from Japan via Good Hope to Cont-Med at $14,000. From the South a 64,000tdw fixed Indo to China at $17,000. The Indian Ocean was patchy. Ultramax’s were seeing around $12,000 + $120,000 BB for S.Africa to China runs. Further north Supra’s were seeing around$5-6,000 for trips from India to China.
Russia targeted a containership over the weekend it claimed to be carrying weapons to Ukraine. The attack on the Mediterranean Shipping Co (MSC) ship at the port of Odesa also hit a nearby Sierra Leone-flagged bulk carrier in collateral damage. …
- CMA CGM signs for electric boxship
- French liner operator CMA CGM has contracted inland vessels specialist Shandong Xinneng Shipbuilding to build its fully electric containership. The deal with an undisclosed HMM takes Hosco newcastlemax
- South Korean flagship line HMM has been linked to another secondhand purchase in the larger bulk carrier segment.
- Brokers report the Seoul-based company has snapped up the 2014-built newcastlemax Oriental Dragon from bulker owner Hebei Ocean Shipping Co (Hosco) in a deal valued at about $49.2m.
Hosco bought the Imabari-built 207,800 dwt unit as Pacific Assurance from Mitsui & Co’s Singapore-based OMC Shipping about the same time last year for $48.5m.
- Last September, HMM unveiled expansion plans through to the end of the decade, setting aside a massive KRW23.5trn ($17.48bn) that will see its container fleet nearly double while its tanker and dry bulk fleets will triple in size come 2030. A KRW5.6trn has been earmarked to expand the company’s dry bulk and tanker business from 36 ships to 110 vessels of 12.56m dwt.
- In January, HMM acquired the 2010 Namura-built capsize Global Enterprise for a reported $29m. The company has also been designated as the preferred bidder to acquire SK Shipping’s tanker, dry bulk, and LPG assets.
- In related sales, Japanese owner Imabari Senpaku is letting go of the 2011-built capesize Frontier Garland for $31m, while Germany’s Valhal Shipping is said to have sold its 2011-built Thalassini Avra for $29.9m.
- Nasdaq-listed owner Toro has initiated a process of separating its tanker and LPG businesses.
- The spinoff of Cyprus-based Castor Maritime with one tanker and four gas carriers spinning off the 2006-built handysize products carrier Wonder Mimosa into a newly formed subsidiary Robin Energy.
- The company has applied for trading on Nasqad and Toro shareholders will get one common share of Robin in exchange for eight shares in Toro.
- The Board believes that the creation of a business in a distinct sector of the shipping industry will provide significant benefits to both companies and their shareholders.
- The transaction is expected to enable each of Toro and Robin to increase its focus on their respective line of businesses, enhance operational efficiencies, facilitate efficient strategic expansion, attract new investors, and, with this dividend distribution of Robin common shares, give Toro shareholders the flexibility to monetise or adjust their equity holdings according to the shipping sectors in which they want to invest,” the company said in a release.
- Castor spun off its eight-strong Tanker fleet into Toro in 2022. Seven vessels have since been sold at a profit. The outfit expanded into the LPG arena with an en-bloc acquisition of four 5,000 cu.m vessels in April 2023 and if the spinoff goes according to plan, Toro will move forward as an LPG carrier pure-play.
- Robin will be led by Toro’s and Castor’s chairman and chief executive, Petros Panagiotidis, once approvals have been secured.
Wah Kwong forms methanol bunkering partnership
- Hong Kong shipowner Wah Kwong has teamed up with Chinese clean energy producer CIMC ENRIC to offer green methanol bunkering solutions in southern China’s Greater Bay Area (GBA) and across Asia.
“The partnership is the first-of-its-kind collaboration in the clean fuel sector. The project will combine CIMC ENRIC’s supply of renewable fuels with Wah Kwong Maritime Transport Holdings Limited’s expertise in safe delivery to customers,” Wah Kwong stated in a social media posting.
Working together with partners across the value chain, the cooperation will develop a pilot green methanol bunkering operation within the GBA.
New deals, scrapping and cancellations for Shelf Drilling
- United Arab Emirates-based jackup rig pure-play Shelf Drilling has revealed two new deals and a couple of new developments in its latest fleet status report.
- The company revealed that its Trident 16 rig has secured a new contract with Belayim Petroleum Company (Petrobel) in Egypt in February. The deal will last for three months and end in May 2025.
- The Oslo-listed firm’s 1982-built rig is no stranger to Egypt or the client as it has been working there for Petrobel on and off since 2015.
- Another short-term deal was won by the 1979-built High Island II rig. The jackup was previously under hire with Saudi Aramco but was one of the batch of rigs that got its contracts suspended by the Saudi major.
- The contract was nixed in December and will be out of service until April 2025 while it is mobilised from the Middle East to West Africa along withShelf Drilling Victory, another rig that ended its deal with Aramco, for upcoming contract opportunities.
- Upon arrival, it will start a new one-well contract in Nigeria with an undisclosed operator. The deal is supposed to last around 45 days.
- The other rigs that had their contracts with Saudi Aramco suspended since April last year include the Harvey H. Ward, Shelf Drilling Achiever, Main Pass I, Main Pass IV, and High Island IV. The only jackups still working for the Saudi firm are the High Island V and High Island IX.
- Most rigs have either cancelled their contracts or found new work. The two rigs still under suspension with no new work on the horizon are Harvey H. Ward and High Island IV.
- Shelf Drilling also reported that the 1981-built Trident VIII jackup was mobilized to the United Arab Emirates. There, the company expects to complete the sale of the rig for recycling no later than April 2025.
Maersk explores ship recycling in Egypt
Maersk has signed a memorandum of understanding in Egypt to explore green ship recycling in the Middle Eastern nation as part of the government’s bid to be less reliant on imported scrap metal.
The planned demolition yard will be created at Damietta port to the west of Port Said on the Mediterranean and will be compliant with the incoming Hong Kong Convention on improved ship recycling conditions.
The Egyptian site will cover some 155,000 sq m and will be capable of handling ships of up to 230 m in length. Other Egyptian ship recycling sites are also being discussed.
Maersk has a history of helping nations develop greener ship recycling sites. For instance, when it took over P&O Nedlloyd 20 years ago, it took on the responsibility of developing what was then China’s leading demo yard.
Baltic Exchange Supramax Asia Index – 03 March 2025
S2_63 N.China one Austr or Pac RV 12,269 -187
S8_63 S.China via Indonesia/Ec India 11,893 -211
S10_63 S.China via Indo/S.China 10,666 -225
S3TC Weighted Time Charter Average 11,695 -202
Baltic Exchange Handysize Index 547 ( 0)
HS1_38 Skaw-Passero trip Recalada – Rio de Janeiro 6,086 – 21
HS2_38 Skaw-Passero trip Boston – Galveston 7,600 – 36
HS3_38 Rio de Janeiro-Recalada trip Skaw – Passero 14,528 – 122
HS4_38 USGulf trip via USG or NCSA to Skaw-Passero 10,836 – 7
HS5_38 SE Asia trip to Spore – Japan 9,650 0
HS6_38 N.China-S.Kor-Jpn trip to N.China-S.Kor-Jp 10,238 + 57
HS7_38 N.China-S.Kor-Jpn trip to SE Asia 9,869 + 138
7TC Weighted Timecharter Average 9,846 + 2
Baltic Exchange Panamax 82 Asia Index – 03 March 2025
P5_82 S.China one Indo RV 9,400 -322
Marex Media
“Disclaimer”
The reported fixtures and Sale and Purchase deals are obtained from market sources.
All information supplied in this report is supplied in good faith, I do not accept responsibility for any errors and omissions arising from this report and cannot be held responsible for any action taken, or losses incurred, as a result of the details in this report.
Any reproduction has to be with written consent from the copywriter.
You may view or otherwise use the information, prices, indices, assessments and other related information, graphs, tables, images in this report only for your personal use if you are an authorised user for internal use only and not for sale.
Data in this publication, includes independent and verifiable data collected from market participants.
I do not guarantee the adequacy, accuracy, timeliness and/or completeness of the Data or any component thereof or any communication (whether written, oral, electronic or in other format), and shall not be subject to any damages or liability, including but not limited to any indirect, special, incidental, punitive or consequential damages (including but not limited to, loss of profits, trading losses and loss of goodwill).