World Maritime News
WMNF 2020/03/19
19 March 2020
Cashflow critical to liner shipping carriers
Container carriers’ liftings and incomes have been dented by the coronavirus-led production collapse in China and the equipment shortages caused by the massive blank sailings have already affected exports in the US and Europe. But more importantly, concerns are mounting regarding their future appetite for imports amid soaring infections in those regions. Some smaller carriers on intra-Asia trade will face “financial survival withing next couple of months”, SeaIntelligence prospects. It is estimated that 544 out of some 1,300 box-ships on this trade had experienced service suspensions of 7 to 30 days since January 25. Unless they have governmental help, they will be forced to sell ships, subsidiaries or even their entire business.
Read more: Lloyd’s List
Asia-US container spot rates jump as imports from China surge
China in recent weeks has significantly slowed the spread of the coronavirus and production is steadily returning to normal. As a result, an 18% increase in container spot rates in Week 11 from Asia to the US West Coast and an 9% bump to the East Coast, gave cargo owners a taste of the tighter slot capacity and higher rates. They are likely to see in the coming weeks an expected surge in imports from China. However, NVO consultant Jon Monroe does not anticipate that production will return to full capacity, nor does he see a true peak-season surge this summer as in past years. Though production in China is increasing, demand in the US is poised to weaken as federal, state, and local authorities call for the closure of schools, cancellation of sporting events, concerts and a ban on large gatherings of people.
Read more: JOC | Lloyd’s List
UAE bans MSC boxship for a year over sulphur cap violations
The United Arab Emirates has prohibited an MSC boxship from operating in the country’s waters for a year in connection with violations linked to the 0.5% sulphur cap. The UAE Federal Transport Authority said it had banned the “MSV Joanna” (Panama flag, built 2006, 9,178 teu) for carrying non-compliant fuel oil and not following orders from local port authorities. The vessel does not have appeared to have scrubbers on board.
The ship was found to be carrying more than 700 metric tons of HSFO when boarded at Jebel Ali Port, despite the repeated warning given to her in advance to de-bunker the non-compliant fuel before calling UAE ports. The regulator further reported that although port authorities ordered the vessel to offload the HSFO before leaving Jebel Ali to comply with the carriage ban, the Master sailed without doing that and without getting permission from Port State Control officials to leave.
Read more: Lloyd’s List
DCSA releases cyber-security guide
The Digital Container Shipping Association (DCSA) has released its cyber-security implementation guide. The DCSA Implementation Guide for Cyber-Security on Vessels aims to facilitate vessel readiness for the IMO Resolution MSC.428 (98) on Maritime Cyber Risk Management in Safety Management Systems. The guide aligns with existing BIMCO and US National Institute of Standards and Technology cyber risk management frameworks. The DCSA cyber-security implementation guide breaks down the BIMCO framework into themes and maps these to the controls that underpin the NIST functional elements: Identify, Protect, Detect, Respond, Recover. DCSA’s guidelines urge shipping lines to treat cyber-security as systemically as they would other ships operations risks, such as fires or piracy.
Read more: dcsa | Lloyd’s List | JOC
Paperless documentation at least a decade away
The idea of paperless documentation in container shipping is at least a decade away, according to the chief executive of digital documentation start-up Expedock, which is seeking to reduce the burden of paper transactions by offering a cloud-based system that uses artificial intelligence to take the contents of scanned documents and emails and transfer them into forwarders’ tracking management system. Using AI algorithms, Expedock extracts the relevant information from documents, ranging from shipping orders to bills of lading, and uses it to populate forms. It has received unspecified venture capital funding and support from a number of Silicon Valley seminaries.
Read more: Lloyd’s List
Japan’s SMTB endorses Poseidon Principles
Sumitomo Mitsui Trust Bank (SMTB) has become the first Asian ship financer to join the initiative by its wester peers, which aims to align shipping portfolios to climate goals. With the commitment of the Japanese bank, signatories to the Poseidon Principles now represent more than US$ 150 billion in loans to international shipping, making up over a third of the global shipping finance portfolio, according to a press release. Michael Parker, chairman of Global Shipping Logistics & Offshore at Citi, and Poseidon Principles Association chair says “Asia is a major center for shipping finance, and the decision by SMTB will encourage other Japanese and Asian financial institutions to follow their lead in the coming months. Access to capital will be increasingly tied to environmental, social and governance criteria.
Read more: Lloyd’s List