Atlantic Basin News

The economic incentive to import oil from the U.S. Gulf Coast to Asia has closed as the cost of booking supertankers on the route has surged amid a jump in bookings for the vessels, traders said this week.With the arbitrage for U.S. shipments closed, Asian refiners may make up some of the difference with similar Middle Eastern crude oil after top regional producer Saudi Arabia cut their sales prices for February, which is expected to carry over to other regional crudes. The spur…

Several shipping companies and a few liquefied natural gas (LNG) tankers have decided to avoid the world's main East-West trade route, following attacks launched by Yemen's Houthi group on commercial ships at the southern end of the Red Sea.The attacks raised the specter of another bout of disruption to international commerce following the upheaval of the COVID pandemic, and prompted a U.S.-led international force to patrol waters near Yemen.IS THE RED SEA ROUTE IMPORTANT FOR…

Maersk Supply Service has announced that it will focus on scale and competitiveness in two core business areas: offshore wind and offshore support vessels.By focusing on fewer business areas and regions, the company says it will increase its presence in core markets, increase synergies in its operations and improve profitability.The offshore vessel markets continue to improve, and the energy transition continues to accelerate. Therefore, Maersk Supply Service will focus on building scale in these two business areas where the company can benefit from a young and energy efficient fleet…

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose for a fifth straight session on Tuesday, boosted by higher demand for larger vessels.The overall index, which factors in rates for capesize, panamax, and supramax shipping vessels, rose by 23 points, or 2%, to 1,150, its highest level since June 27.The capesize index added 47 points, or 2.5%, to 1,920, its highest in six weeks.Average daily earnings for capesizes, which typically transport 150…

The Baltic exchange's main sea freight index recorded its first monthly decline in four on Wednesday, on weakness in shipping rates across all segments, with lower coal demand dragging the capesize segment down in particular.The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, fell 146 points, or 13.0%, to its lowest since Feb. 27 at 977.The main index was down 38% for the month, its biggest drop since January.The capesize index .BACI lost 376 points or 24% at 1,218, registering its biggest percentage fall since Feb.

Asian spot liquefied natural gas (LNG) prices slipped to their lowest level in two years on weak demand and high inventories, while European LNG prices also fell below the $10 mark amid healthy stock build and limited need for additional supply.The average LNG price for July delivery into northeast Asia was down 6.6% from the previous week at $9.8 per million British thermal units (mmBtu), the lowest since May 2021, industry sources estimated."Prices continue to linger sub $10 as general demand remains lacking…

The Baltic Exchange's main sea freight index jumped to a more than two-month high on Tuesday, propelled by gains across vessel segments, particularly the larger capesizes.The overall index, which factors in rates for capesize, panamax and supramax shipping vessels ferrying dry bulk commodities, rose 77 points or 4.3% to 1,865 points, its highest since Aug. 1.The capesize index gained 203 points, or about 10%, to also hit an over two-month high of 2,244 points.

Belgian oil tanker and storage operator Euronav on Thursday reported sharply higher quarterly earnings, but despite a freight market recovery, rates for very large crude carriers (VLCCs) remained low, sending its shares down more than 4%."Management has good reason to be more optimistic on the winter season," ING's analyst Quirijn Mulder said after the group, which provides crude oil shipping and storage services, said freight rates had improved substantially since March.Chief Executive Officer Hugo De Stoop said in a statement that recent trading data…

Spot-market rates for liquefied natural gas (LNG) tankers this week set annual records as traders bid up available vessels to meet rising global demand for the chilled gas, according to brokers.Soaring demand for LNG and buyers shunning Russian cargoes and vessels over its invasion of Ukraine have led to more long-term charters, limiting the supply of vessels to the spot market, said shipbroker and LNG consultancy Poten & Partners.The fire that knocked out the Freeport LNG gas-processing and export terminal has not affected the increase in spot rates, he said.

Woodside Energy Group, Australia's top independent natural gas producer, sees liquefied natural gas (LNG) prices staying high for a few years as the market adjusts to supply disruptions after sanctions on Russia for its Ukraine invasion."With the invasion, we are seeing the world try to move away from Russian hydrocarbons and that means that demand for LNG from places like Australia is up," Woodside Chief Executive Meg O'Neill said."We do expect ... prices to remain elevated for the next year…

A new study from NOAA finds that reducing air pollution in North America & Europe brings more hurricanes; increased pollution in Asia reduces tropical cyclonesA NOAA study published in the journal Science Advances about four decades of tropical cyclones reveals the surprising result that reducing particulate air pollution in Europe and North America has contributed to an increase in the number of tropical cyclones in the North Atlantic basin and a decrease in the number of these storms in the Southern Hemisphere.

Spot market earnings for VLCCs will average $2,500/day in 2022 on a non-eco, no scrubber basis (US $11,000/day for ECO-designs, without scrubbers), while the peak year for VLCC spot market earnings have been pushed out to 2025, amid substantial supply-side support. This was a key finding in McQuilling Services  25th Annual Tanker Market Outlook: 2022-2026 Tanker Market Outlook. While conditions are tight for the big ships, Suezmaxes and Aframaxes sectors are projected to return healthier levels in 2022…

The Baltic Exchange's dry bulk sea freight index extended gains for a ninth straight session on Tuesday, tracking firm rates across all its vessel segments.The overall index, which factors in rates for capesize, panamax and supramax vessels, advanced 117 points, or 3.6%, to 3,352, touching its highest level since Nov. 1.The capesize index rose 284 points, or 6%, to 4,983, its highest since Oct. 26.Average daily earnings for capesizes, which transport 150,000-tonne cargoes such as iron ore and coal…

Tanker rates to ship liquefied natural gas (LNG) have more than doubled since the start of the month as a power crisis in Asia and Europe drives up demand for vessels, industry sources said on Tuesday.The daily charter rate for a tri-fuel diesel-electric (TFDE) vessel that can carry 160,000 cubic meters of LNG to Pacific basin ports rose to $202,500 a day on Tuesday, the highest since Jan. 15, according to data from Spark Commodities.For the same type of ship moving in the Atlantic basin…

The Baltic Exchange's main sea freight index soared to its highest in 11 years on Thursday as rates across all vessel segments were lifted by strong demand for dry bulk commodities.The Baltic dry index, which tracks rates for capesize, panamax and supramax vessels, added 91 points, or 2.9%, to 3,267, its highest level since June 2010.The capesize index was up 202 points, or 5%, at a one-month high of 4,212.Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes of coal and steel-making ingredient iron ore, increased $1,672 to $34,930."Bull mood continues with mode

The Suez Canal stepped up efforts on Friday to free a giant container ship blocking the vital trade waterway that has sent shipping rates for oil product tankers soaring and disrupted the global supply chains for everything from grains to baby clothes.Shipping rates for oil product tankers have nearly doubled after the 400 meter long Ever Given, almost as long as the Empire State Building is high, ran aground in the canal on Tuesday.Efforts to free the vessel may take weeks and be complicated by unstable weather conditions…

U.S. liquefied natural gas (LNG) exports are on track to hit record highs in March as tumbling shipping rates and lower prices than in Europe and Asia continue to attract buyers.The amount of gas flowing to U.S. LNG export plants has averaged 10.5 billion cubic feet per day (bcfd) so far in March, according to Refinitiv. That compares with a four-month low of 8.5 bcfd in February, when extreme cold cut power and gas supplies to the facilities, and a monthly record high of 10.7 bcfd in December."The rebound in U.S.

The Baltic Exchange's main sea freight index on Wednesday climbed to a near 1-1/2-year high as panamax rates scaled a more than 10-year peak on China grain demand.The Baltic dry index, which tracks rates for capesize, panamax and supramax vessels ferrying dry bulk commodities, rose 88 points, or 4.4%, to 2,105, a peak since September 2019.The panamax index gained 211 points, or 8.9%, at 2,583, its highest since September 2010.Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, rose $1,896 at $23,245."It seems to be a perfect storm for the dry bulk shipping market at the moment…

After a highly volatile 2020, shipbroker Simpson Spence Young (SSY) looks at the next 12 months and highlights areas of particular interest in their 2021 Outlook Report. The report looks at various drivers of the shipping markets, including how the developing emissions regulations may affect commercial fleets and shipping investments.Contributions come from a range of senior research and broking experts and cover dry bulk, tanker and gas freight markets; shipping investments, CO2 emissions, FFAs, metals and energy derivatives.

Eagle Bulk Shipping has acquired two Ultramax bulk carriers, the U.S.-based dry bulk owner-operator announced Tuesday.The first vessel, which was built in 2015 and will be renamed the Helsinki Eagle, has been acquired for $16.5 million. The second vessel, which was built in 2016 and will be renamed the Stockholm Eagle, has been acquired for $17.65 million. Both SDARI-64 scrubber-fitted ships were constructed at Chengxi Shipyard Co. Ltd.Closings are expected during the first quarter of 2021, with the M/V Stockholm Eagle delivering to Eagle in the Atlantic basin.The sales follow the company’s recently-announced acquisition of a similar specification vessel renamed Oslo Eagle.Gary Vogel…

Bulk carrier owner Genco Shipping & Trading said it has completed a refit program that saw scrubbers installed on board its 17 Capesize vessels as part of the New York-listed owner's plan to comply with new International Maritime Organization (IMO) regulations that limit sulfur emissions from vessels to 0.5% down from 3.5%.John C. Wobensmith, Genco Chief Executive Officer, said the scrubber refit program was the busiest drydocking period in company history.“The completion of this…

Product tanker freight rates softened in the third quarter of 2019 but rebounded strongly at the start of the fourth quarter following an increase in crude tanker rates that began after the attacks on Saudi Arabian oil facilities and accelerated dramatically to multi-year high levels at the end of September when the US imposed sanctions on two subsidiaries of China's COSCO Shipping.Denmark-based TORM said that growth in global demand for oil products generally remained subdued in the first two months of the quarter but showed signs of increased momentum towards the end of the quarter.The particularly heavy refinery maintenance schedule in the second quarter eased in the third quarter…

Argentine oil company YPF SA has loaded its first commercial liquefied natural gas (LNG) cargo for export from a new floating facility, trade sources said on Friday.Argentina's export joins a wave of new supply flooding the spot market which has depressed Asian spot prices to their lowest in a decade for this time of the year.The state-owned firm issued a tender which closed on Nov. 6 to sell 2.1 trillion British thermal unit (Tbtu) of LNG for loading from FLNG Tango, the liquefaction vessel off Bahia Blanca…