Tighten Up News

Global oil benchmark Brent on Tuesday rose above $89 a barrel for the first time since October, albeit briefly, as oil supplies faced fresh threats from Ukrainian attacks on Russian energy facilities and escalating conflict in the Middle East.Brent futures for June delivery were up $1.35, or 1.5%, at $88.76 a barrel by 11:40 a.m. EDT (1540 GMT) after touching a peak of $89.08.U.S. West Texas Intermediate (WTI) crude futures for May rose $1.27, or about 1.5%, to $84.98 after touching a peak of $85.46…

The BIMCO Container Shipping Market Overview & Outlook for March 2024 has been published, and Niels Rasmussen, BIMCO’s Chief Shipping Analyst, highlights that ship supply is expected to grow on average 9.1% in 2024 and 4.1% in 2025.Rerouting via Cape of Good Hope is assumed to impact the first half of 2024. Ship demand increases an estimated 9.5% in 2024 and falls 0.5% in 2025. The supply/demand balance is expected to tighten in the first half of 2024 but then weaken when ships can return to the Suez Canal routing.According to the IMF…

Contracting activity for for crude tanker newbuilding has risen sharply to start 2024, driven by a steep rise in orders for very large crude carriers (VLCC), according to shipping organization BIMCO.In the first two months of 2024, crude tanker newbuild contracting surged to 7.4 m DWT, a 490% leap y/y. Notably, the 19 VLCCs ordered in January and February is more than was ordered for the entirety of 2023.Freight rates for crude tankers spiked at the start of the war in Ukraine, and they have largely stayed strong since, said Filipe Gouveia, shipping analyst at BIMCO.

Dozens of oil tankers used by Russia have stopped sailing under the Liberian and Marshall Islands flags in recent weeks after the United States ramped up sanctions enforcement on ships linked to those registries, according to shipping data and interviews with industry and government officials.The shift reflects the close relationship between the U.S. and the flag administration companies of Liberia and the Marshall Islands, which are headquartered not in their home countries, but in Virginia, just miles from Washington D.C. and within the jurisdiction of U.S.

The BIMCO Tanker Shipping Market Overview & Outlook February 2024 by Niels Rasmussen, BIMCO’s Chief Shipping Analyst, forecasts that the supply/demand balance will tighten further during both 2024 and 2025.Low fleet growth, along with increasing sailing distances, create the foundation for the improvement despite a slowing of growth in oil demand. The product tanker supply/demand balance is also expected to tighten in 2024 but weaken in 2025. Like the crude tanker market, longer sailing distances support demand growth despite slowing oil demand.

New Dual Fuel, Electric+ (DFE+) concept, developed by ABB and MAN Energy Solutions, has been recognized by DNV as a more energy efficient alternative to current conventional designs for liquefied natural gas (LNG) carriers.DNV has quantified the gains that owners of LNG carriers could expect to achieve using the new DFE+ solution and found that it could help LNG carriers boost energy efficiency by up to 7.5%, therefore enabling greater emissions reduction.The number takes into account the smaller machinery space requirements with ‘a conservative estimate’ of 5% greater cargo capacity…

In 2023, shipyards delivered 350 new container ships with a total capacity of 2.2 million TEU, beating the previous record from 2015 when 1.7 million TEU was delivered. “The 2023 record is now likely to be beaten already in 2024,” says Niels Rasmussen, Chief Shipping Analyst at BIMCO.As 2023 saw a relatively low level of container ship recycling, new ships entering the fleet caused an 8% rise in the capacity of the container fleet, the fastest growth registered since 2011. Ships larger than 15…

As 2023 is drawing to a close we would once again invite the readers of Offshore Engineer Magazine to gaze into our crystal ball to see what 2024 might have in store for the offshore support vessel industry. Before diving straight into our forward-looking sentiments however, it is important to address some of the main trends in the year that past as these lay the foundation for the year to come.Continuing the market development from the year before, 2023 very much advanced the ongoing recovery for offshore support vessels further.

Sometimes, a change in a vessel's operational profile requires considerable modernization or retrofitting of its propulsion system in order for the vessel to remain fit for purpose. And in some cases, newly required thruster performance features can be achieved with the help of modifications that preserve most of the existing units.Earlier this year, the Croatian ferry Krk operated by the national Jadrolinija shipping company, was retrofitted to cater for a new route with stronger winds and currents.

Speaking after the November 30 OPEC+ meeting, Ann-Louise Hittle, vice president, Macro Oils, at Wood Mackenzie, said: “The decision by OPEC+ to continue with its previously announced production cuts and Saudi/Russia to extend their voluntary production cuts to the end of Q1 2024 is not a surprise, given current pricing and the uncertainty in the market over the strength of the global economy and oil demand growth. What is new is the additional voluntary cuts for Q1 2024 and announced by several OPEC+ producers.”  The full tally of the additional cuts has not yet been announced…

The physicist Max Planck (actually born as Marx Planck) is best known for the development of his universal constant that defines physics at the most basic level. It is an important number, and today it even defines the kilogram and therefore most engineering units. Regardless, in my daily life I have little use for it.Max Planks is less known for his Principle, which, to me, is much more useful and I encounter it almost on a daily basis. Max Planck provided this Principle in his Scientific Autobiography (and Other Papers…

Increased activity in the Brazilian offshore oil and gas sector could help strengthen the market recovery for offshore supply vessels (OSV) in the U.S. Gulf of Mexico.In early October, Brazilian state-owned oil company Petrobras issued requests for quotations (RFQ) for up to 20 OSVs ranging from 3,000 to over 4,500 deadweight tons to support upcoming drilling and production activities. The value of all of these potential long-term charters could approach $1 billion.While Petrobras typically prefers to use Brazilian-flagged vessels…

The European Union's ban on imports of Russian refined oil products, including diesel and jet fuel, will disrupt global flows once it takes effect on Sunday and could hurt Moscow more than an embargo on crude oil.Although Western sanctions could force Russia to cut crude production and refining runs, which would further tighten global supplies, some analysts said the ban on products may ultimately have little impact on overall availability."Barrels will get out and find a market…

The Israel-Hamas war has raised the spectre of a wider regional conflict which could embroil Iran and other regional factions.Analysts and market observers say the conflict could prompt the United States to tighten sanctions on Iran, which may spur Tehran to take retaliatory action against ships in the Strait in Hormuz.The Marshall Islands registry, one of the world's top shipping flags, last week flagged that vessels with links to Israel or the United States may face a heightened threat of attack within Israeli territorial waters…

In Cape Cod Bay, 10-year-old Pilgrim and her calf skim the water's glassy surface alongside the Shearwater research vessel to feed on tiny crustaceans.The two are among the last surviving 340 or so North Atlantic right whales left migrating along the U.S. East Coast – down from 480 right whales in 2010.The biggest threats they face include being struck by passing ships or getting entangled in ropes used for lobster fishing off the U.S. East Coast - scientists have recorded 98 such injuries or deaths of whales since 2017.Now, the whales face another threat as the U.S.

Brazil has banned the export of live cattle from all its ports.Reuters reports that federal judge Djalma Gomes’s ruling states: "Animals are not things. They are sentient living beings, that is, individuals who feel hunger, thirst, pain, cold, anguish, fear."The verdict was handed down after the National Forum for the Protection and Defense of Animals filed a law suit in 2017.The case, still subject to appeal, comes as New Zealand also banned the export of cattle from its shores from April 30.

Global freight movements continued to dwindle in the first two months of 2023 as manufacturers and distributors struggled to reduce excess inventories and cope with rising interest rates and increased caution among buyers.Container flows fell further in January and February compared with the same months a year earlier, showing the inventory-liquidation cycle was not over yet:Singapore’s seaborne container shipments were down 6% in February compared with a year earlier, one of the steepest falls since the first wave of the pandemic.Japan’s air cargo through Narita airport…

Russian air strikes on Ukrainian grain facilities on the Danube this week threaten a vital river route for Kyiv's exports, as Moscow seeks to tighten the noose around a key sector of the economy days after abandoning the Black Sea shipping deal.Last week, air strikes caused tens of millions of dollars of damage to the grain sector in Odesa region, and Monday's strikes on infrastructure along the Danube brought back memories of the export gridlock that followed Russia's February 2022 invasion."Without the Danube, the export (situation) becomes critical.

There is no shortage of challenges confronting the U.S. barging industry, and executives such as Mike Ellis, CEO at American Commercial Barge Line (ACBL), are leading their companies past hurdle after hurdle. The Jeffersonville, Ind.-based company, which owns a fleet of approximately 150 towboats and moves a fleet of some 4,500 barges (including roughly 3,500 operated by ACBL), is focusing on factors it can control while planning and investing for the future.The weatherMother Nature is often unkind to the barging industry.

U.S. penalties on shippers transporting Russian oil in breach of the G7's price cap could push more Russian cargoes onto vessels referred to as the ghost fleet and away from mainstream tankers, shipping sources and analysts told Reuters.The cap bans Western companies from providing maritime services for Russian seaborne oil exports sold above $60 a barrel.It was designed to keep oil flowing to markets while reducing Russia's energy earnings that it can use to finance its war on Ukraine…

Bumper soybean harvests in Brazil and unsold grains stocks in the United States are set to boost dry bulk shipping rates as buyers including China restock after supply shocks last year, leading freight operators said.The dry bulk shipping market has been hit in recent months by slow activity, partly driven by the COVID lockdowns in China, one of the world’s biggest generators of seaborne commodities trade including grains as well as coal and iron ore.Grains supplies were also affected by the war in Ukraine for part of last year until a United Nations-backed corridor was set up…

The insolvency of a major storage terminal planned in northwest Europe has supported regional tank storage rates for diesel and gasoline, just as European traders rush to fill up diesel tanks ahead of a Feb. 5 ban on Russian fuel.Earlier this month, the district court in Rotterdam declared the insolvency of the long-delayed HES Hartel Tank Terminal, to be developed in Europe's major trading port of Rotterdam.The terminal would have offered 1.3 million cubic metres of storage capacity for gasoline…

A tanker carrying liquefied natural gas (LNG) arrived at Finland's Inkoo terminal on Tuesday, vessel tracking data showed, the first such cargo to appear following the Oct. 8 outage of a Finnish-Estonian gas pipeline.The Maran Gas Vergina, carrying U.S. natural gas, docked next to the Exemplar floating storage and regasification unit (FSRU), which was installed late last year to facilitate LNG imports and thus boost Finland's energy security.The cargo belongs to Finnish gas supplier Gasum…