Annual Review News

A deal allowing Ukraine to export grain via the Black Sea will expire at the end of Monday after Russia said it will suspend its participation.The deal, brokered by the United Nations and Turkey last July, aimed to alleviate a global food crisis by allowing Ukrainian grain blocked by the Russia-Ukraine conflict to be exported safely.WHY IS IT IMPORTANT?Ukraine is a major producer of grains and oilseeds and the interruption to its exports at the outbreak of war pushed global food prices to record highs.

A deal allowing Ukraine to export grain via the Black Sea expires on July 17 and with Moscow saying it sees no grounds for an extension there are fears it may collapse.Why is it important?Ukraine is a major producer of grains and oilseeds and the interruption to its exports at the outbreak of war pushed global food prices to record highs. The current deal, agreed in July 2022 some five months after the war started, helped to bring down prices and ease a global food crisis.Ukraine grain has also played a direct role with 725…

Officer supply shortfall has reached a record high and is not expected to improve, leading to manning cost inflation, according to the latest Manning Annual Review and Forecast report published by global shipping consultancy Drewry.The 2023 officer availability gap has widened to a deficit equating to about 9% of the global pool, which represents a marked rise from last year’s 5% shortfall and the highest level since Drewry first started analysing the seafarer market 17 years ago.

IMA/WER has just completed its Annual Review and Five-Year Forecast of Orders for Floating Production Systems. The report:•provides a detailed look back at developments in the deepwater sector over the past year,•assesses 12 underlying market drivers that will determine the pace of production floater orders over the next five years,•identifies specific projects in the planning queue that will likely require a production floater and•forecasts the number of orders and capex for production floaters between 2023 and 2027.There has been a strong recovery in the deepwater sector…

Vessel operating cost inflation has accelerated in 2022 on mounting worldwide macroeconomic price pressures, despite some receding of Covid-19 related costs, according to the latest Ship Operating Costs Annual Review and Forecast 2022/23 report published by global shipping consultancy Drewry.Drewry estimates that average daily operating costs across the 47 different ship types and sizes covered in the report rose for the fifth consecutive year to reach $7,474 in 2022, a rise of 2.2%.

The International Association of Dredging Companies (IADC) announced the availability of the 2020 edition of Dredging in Figures, an annual review of the global open dredging markets. The annual report focuses on the state of the dredging industry in 2020, with an overview of the essential role of dredging in regards to the industry’s key drivers as well as the annual turnover of the world’s open markets. According to the latest Dredging in Figures, the dredging industry’s annual…

The Baltic Exchange’s subsidiary, Baltic Exchange Information Services Ltd (BEISL), has been authorized by the UK’s Financial Conduct Authority (FCA) as a benchmark administrator under EU Benchmark Regulation. This means that the Baltic Exchange’s daily dry bulk, tanker and gas freight indices are regulated by an EU National Competent Authority.“We are very pleased to have received authorization from the FCA,” commented Baltic Exchange Chief Executive Mark Jackson. “This status ensures that financial institutions…

Drewry Shipping Consultants has revealed that it now expects global port throughput to rise by 2.6% in 2019, down from the previous 3.0% expectation.The mood-music surrounding the container market has deteriorated further in the last three months, resulting in Drewry downgrading its outlook for world container port throughput for the current year and the rest of the five-year horizon in the Container Market Annual Review and Forecast.The weight of risks pressing down on the container market seems to be getting heavier by the day,” said Simon Heaney, senior manager, container research at Drewry and editor of the Container Forecaster.

Fluor Corporation announced that Stork, part of Fluor’s Diversified Services segment, was awarded a contract extension by Centrica Storage Limited to continue providing fabric maintenance and associated services for the company’s UK onshore and offshore oil and gas assets.Fluor booked the undisclosed contract value in the second quarter of 2019, said a release.“Stork is extremely pleased to deepen our long-term relationship with Centrica in the UK by providing services to extend the life and efficiency of its assets in the northeast of England,” said Taco de Haan, Stork’s president.“Stork’s multidisciplined team will provide a single…

The outlook for global container port demand is modest growth and numerous uncertainties, but in the face of this, capacity expansion plans are also muted, said the global shipping consultancy Drewry."This means that most world regions will see an increase in average terminal utilisation," said Drewry in its Global Container Terminal Operators Annual Review and Forecast 2019.Drewry’s container port demand forecast for the next five years is for global growth of 4.4% per annum on average, lifting world container port throughput from 784 million teu in 2018 to 973 million teu by 2023, an absolute increase of almost 190 million teu.The…

The United States has a world-leading 293 billion barrels of recoverable oil resources, which is 20Bbbl more than Saudi Arabia and 100Bbbl more than Russia, with the Permian Basin leading that charge.Rystad Energy’s estimate of US recoverable oil is also five times more than officially reported proven reserves as published in the BP Statistical Review of World Energy 2019.Tight oil plays in the Permian Basin in Texas and New Mexico now hold 100 billion barrels of recoverable oil resources, according to Rystad Energy’s analysis. Shale/tight resources in the Permian thus remain largely flat from the previous year, as production has been replaced through improvements in well configuration…

According to the International Renewable Energy Agency (IRENA) eleven million people were employed in renewable energy worldwide in 2018. This compares with 10.3 million in 2017.As more and more countries manufacture, trade and install renewable energy technologies, the latest Renewable Energy and Jobs – Annual Review finds that renewables jobs grew to their highest level despite slower growth in key renewable energy markets including China.The diversification of the renewable energy supply chain is changing the sector’s geographic footprint. Until now, renewable energy industries have remained relatively concentrated in a handful of major markets…

According to the latest Manning Annual Review and Forecast report published by global shipping consultancy Drewry, the manning costs have risen moderately over the past 12 months, checked by easing officer supply shortage, and are forecast to rise at a similar pace over the next five years.Manning costs rose for a second successive year in 2019 but the pace of growth remains moderate and well below the prevailing rate of price inflation. Meanwhile, the shortfall in available officer numbers relative to demand has declined close to equilibrium and is expected to reach a small surplus by 2024, but ratings remain in surplus and are expected to remain so.

In advance of its AGM in the Faroe Islands next week, the global trade association for shipowners, the International Chamber of Shipping (ICS), has launched its Annual Review 2019, providing in-depth insight into the most pressing issues confronting shipping, which moves about 90% of global trade.ICS Chairman, Esben Poulsson, explains:  “The immediate focus of ICS is the successful implementation of the UN IMO global sulphur cap, which will take complete effect on January 1. ICS…

Global energy investment totalled more than USD 1.8 trillion in 2018, a level similar to 2017, said the International Energy Agency (IEA).The investment stabilised in 2018, ending three consecutive years of decline, as capital spending on oil, gas and coal supply bounced back while investment stalled for energy efficiency and renewables.IEA's latest annual review said that for the third year in a row, the power sector attracted more investment than the oil and gas industry.The biggest jump in overall energy investment was in the United States, where it was boosted by higher spending in upstream supply, particularly shale, but also electricity networks.

Gold Talent, Cosco Shipping Logistics and JD Logistics  entered into a cooperation agreement to jointly invest in online logistics platform EShipping through a joint venture (JV) formation.Gold Talent is a wholly-owned subsidiary of Hong Kong-based logistics major Orient Overseas (International) Limited (OOIL). Cosco Shipping Logistics is an affiliate of Chinese state-owned Shipping and logistics services supplier company China Cosco Shipping Corporation Limited. JD Logistics is the delivery arm of Chinese e-commerce giant JD.com.The JV formation will involve the injection of the JD Onshore Company into the JV by JD Logistics and the acquisition of the JD Offshore Company by the JV funded by JD Logistics…

As the cost inflation is set to accelerate on higher insurance premiums, average vessel operating costs rose modestly for the second year in succession following two years of marked declines, according to the latest report published by global shipping consultancy Drewry.The report titled 'Ship Operating Costs Annual Review and Forecast 2018/19' said that typical ship operating costs accelerated moderately in 2018 as the uncertain recovery in freight markets across most cargo sectors gained momentum.Opex costs are heavily linked to developments in the wider shipping market as some costs, such as insurance, are connected to asset values…

This month we caught up with Jeong-kie Lee, Chairman and CEO of the Korean Register and also the Chairman of the International Association of Classification Societies (IACS), for his insights on the dominant trends moving the maritime industry into the future.The maritime industry has been challenged, to say the least. Today, where do you see challenge? Where do you see opportunity?The maritime industry is in a state of extreme upheaval, with private and public organizations having to deal with a wide range of ever changing…

After more than 30 years of frustratingly slow progress, cost overruns and more than a few mistakes, Olmsted is finally poised for success. That’s something to celebrate.It is official: The U.S. Army Corp of Engineers (USACE) wants Olmsted operational by October. After more than 30 years, the ribbon cutting to officially open the Olmsted Locks and Dam took place on August 30. The very old (1929) upstream locks and dams – Nos. 52 and 53, which Olmsted is replacing – will be dismantled by December 2020. Before that happens, Olmsted’s performance will be tested and confirmed.

Despite moderating perishable seaborne trade growth, continued modal shift will sustain expansion in the containerised reefer trade and so support freight rate development, according to Drewry’s latest Reefer Shipping Annual Review and Forecast 2018/19 report, by global shipping consultancy Drewry.Global seaborne reefer trade continues to expand, posting a gain of over 5% in 2017 to 124 million tonnes, a big improvement on trend growth over the past 10 years of 3.6% a year. Underpinning this progress was strong growth in banana, meat and fish trades.Drewry estimates that containerised reefer traffic expanded by 8% in 2017, outpacing the growth in overall seaborne reefer trade.

The medium term outlook for global container port demand growth is positive thanks to strong underlying economic momentum across the world’s major economies. While there may be clouds on the horizon in the form of tariff and trade war fears, economic fundamentals are likely to win-out in the long run, according to the Global Container Terminal Operators Annual Review and Forecast 2018 by global shipping consultancy Drewry.Against this positive picture near term container port capacity expansion will remain relatively subdued following several years of under investment, particularly in greenfield projects. As a result, average utilisation…

Container equipment rental rates and cash investment returns remain weak, despite last year’s recovery. But an earlier rise in container prices which lifted values to their highest level in five years will continue to put a dampener on returns, according to Drewry’s latest Container Census & Leasing annual review and forecast report, published this month. Long-term lease rates for standard dry equipment leapt by over 50% in 2017, having begun their recovery the year before as the Hanjin bankruptcy left large quantities of equipment impounded and therefore out of the market. But newbuild prices rose by a similar margin, limiting cash investment returns to around 9%.

Cost growth returned to seafaring in 2018 and is projected to accelerate moderately on recovering vessel earnings and continued shortfall in officer numbers, according to the latest Manning Annual Review and Forecast report published by global shipping consultancy Drewry. Manning costs have risen moderately in 2018 following several years of stagnation as a recovery in most cargo shipping markets has taken some pressure off vessel operators, enabling employers to lift wage levels, particularly amongst the market-related officer ranks. “This follows several years when average seafarer pay had flat lined because the depressed state of most cargo markets had made wage increases almost unaffordable,” said Drewry’s director of research products Martin Dixon.