The below is a shipping industry note written by Richard Greiner, Partner at UK accounting and advisory firm Moore Stephens:
It is expected that optimism is likely to triumph over pessimism in the shipping industry during the next twelve months.
According to a recent study, pessimists live longer than optimists, and shipping is short of neither. But the industry has always valued longevity as well as new blood, and it certainly ended 2017 in more optimistic mood than it closed the previous year.
Oscar Wilde said “It is always best to borrow money from pessimists, because they won’t expect it back.” But there was no shortage of people lending money for sound business deals in shipping last year in the firm belief that that they will get it back – and not without good reason.
Overall industry confidence hit a three-year high in 2017. Oil prices reached a three-year peak, while there was a 50% rise in the Baltic Dry Index over a six-month period in the second half of 2017. Finance was available from within and outside the industry. Some sanity returned to the newbuilding orderbooks, and charterers in particular displayed an appetite for new investment.
In 2018, freight rates will harden if there is a further reduction in tonnage overcapacity and an acceleration in ship demolition. Money will still be available for the right investment. Shipping will continue to be impacted by geopolitical uncertainty, which could be influenced in either a positive or negative way by elections in Brazil, Iraq, Italy, Mexico, Russia and elsewhere.
US interest rates will most likely go up over the coming 12 months, and the implications of new accounting standards will start to bite. Smart technology will assume increasing importance, adding value and improving safety but putting pressure on R&D budgets. Doubts will persist about the sufficiency of low-sulphur fuel, and gas will become an increasingly attractive option for powering new and converted tonnage as the price of oil recovers.
The riddle wrapped in a mystery inside an enigma which currently presents itself as Brexit will continue to fuel pessimism and optimism in more-or-less equal measure.
If there were no pessimists, there would be no optimists. Shipping remains a vital global industry, carrying the vast majority of world trade while emitting a lower per-unit level of harmful emissions than any other comparable form of transport. In 2018, optimism can be expected to outweigh pessimism in the shipping industry.
Publication date: 8 January, 2018
Veritas Petroleum Services records numerous contaminants such as plastic, fibres, black gum, paraffins, fatty acids, and other component found in the off-spec RMK 700 marine fuel.
Historic evidence of causing problems due to sludging, particularly during purification and around filters.
‘Prices in this week’s European gas markets are likely to be supported by lower temperatures across the continent and easing lockdowns across Europe,’ says analyst.
‘The mismatch in requirements between buyers and suppliers is growing,’ says Shell LNG Outlook for 2018 report.
Suppliers ‘need to get their houses in order’ prior to 2020, recommends 20|20 Marine Energy.
A total of 57 off-spec instances recorded by FOBAS between 15 to 31 December 2018, says report.
Firm hopes to leverage partnership in Greece as a springboard to expand into neighbouring and overseas markets including Europe and China, says Robin Van Elderen, Regional Head Bunkers, Europe, Sing Fuels.
Singapore can help less developed countries in SouthEast Asia through ‘piloting and scaling fuels and technology as well as a leading hub for green finance’, said DNV Group President and CEO Remi Eriksen.
Octamar™ Ultra HF, Octamar™ Complete, and Octamar™ F35C were found to have improved the fuel economy while reducing exhaust gas and other emissions of marine engines in a series of trials, states report.
Disposal of evidence has resulted in Singapore not being able to provide full details to the United Nationals Panel of Experts which sought information regarding the case, says Ministry of Foreign Affairs.
‘We are proud to be amongst the first to show the successful steps taken by Singapore’s bunkering ecosystem to remain forward thinking and relevant,’ Choong Sheen Mao, Director of EMF, tells Manifold Times.
‘With the launch of a common data infrastructure, Kenoil aims to continue achieving an end to end visibility and transparency on the bunker data supply chain,’ states Kenoil Managing Director.
