The Roots of the Red Sea Crisis

“The recent history of the Red Sea reads like a macabre thriller, from industrial-scale hostage-taking by pirates to tit-for-tat naval attacks between Israel and Iran in international waters to unchecked drug and arms smuggling,” Nicholas W. Stephenson Smith wrote in 2021, two and a half years before the current Red Sea crisis.

The surge of Houthi militant attacks on container ships that has rattled global trade is only the latest chapter of the Red Sea’s recent troubles. This edition of Flash Points examines the crisis and its geopolitical implications, but also its historic roots and the legacy of colonialism in the region. Continue reading here (Source: Foreign Policy).

Oil Up On Geopolitical Tension, Gains Capped By Fading Fed Rate-Cut Hopes

Oil prices settled higher on Tuesday as geopolitical tensions continued in the Middle East and eastern Europe, but gains were curtailed as investors reined in expectations for the U.S. Federal Reserve interest rate cuts.

Brent futures settled 77 cents higher or 0.94% at $82.77 a barrel at 2:30 p.m. EST (19:32 GMT). U.S. West Texas Intermediate (WTI) crude settled 95 cents higher, or 1.24%, at $77.87 a barrel. Continue reading here (Source: Reuters).

Dry Bulk Market Weakening After a Recent Rally

The rise in dry bulk freight rates during January was far from normal. The current slowdown though, is typical for this time of year. In its latest weekly report, shipbroker Allied Shipbroking said that “the dry bulk market has begun 2024 on a strong footing, and it makes for a stark comparison with January 2023, when earnings were charting a downward path towards a February low when the BDI hit just 530. As a bellwether for the sector, we consider the 2023 Capesize earnings which recovered from a February low of USD 2,246/day and closed the year with the BCI-5TC reaching USD 54,584/ day, delivering the strongest December average since 2013. Continue reading here (Source: Hellenic Shipping News).

23 Methanol-Powered Ships Ordered Since the Start of 2024

Ten LNG-powered vessels have been added to AFI, as explained by Martin Christian Wold, DNV’s Principal Consultant at DNV. The ordering trend seems to be picking up on last year’s tendencies setting the tone for the continuation of the race for supremacy between methanol and LNG.

A large portion of methanol-powered ships ordered can be attributed to a single shipowner. Namely, in the middle of January 2024, Singapore-based shipping company Ocean Network Express (ONE) confirmed the order for twelve 13,000 TEU methanol dual-fuel containerships at Jiangnan Shipyard and Yangzijiang Shipbuilding.

Each shipyard will build six vessels. The ships will have dual-fuel methanol propulsion and are all scheduled to be delivered in 2027.  Continue reading here (Source: Offshore Energy).

European Maritime Safety Agency Publishes Study on Safe Bunkering with Biofuels

The European Maritime Safety Agency (EMSA) on Friday (9 February) published the first part of a study on the safety aspects of bunkering with biofuels, following on from its study on the potential of bio bunker fuels in shipping, which identified a selection of biofuels as the most promising for maritime operations. 

The study, titled Safe Bunkering with Biofuels covers bio-methanol, bio Fischer-Tropsch (FT)-diesel, bio-dimethyl ether (DME), hydrotreated vegetable oil (HVO) and Fatty acid methyl esters (Fame).

EMSA said the study provides a comprehensive analysis of a pre-selection of biofuels in terms of safety aspects like flashpoint, toxicity, and cold-flow properties, among others. Continue reading here (Source: Manifold Times).

US Container Import Volumes Soar Prompting Retailers to Increase Forecast

Despite all the challenges being reported for container shipping and the negative outlook presented by the carriers, U.S. import container volumes are soaring and expected to continue their upward momentum through at least the first half of 2024. This comes as economists continue to point to the resiliency of the economy and the apparent soft landing to the feared 2023 recession.

U.S. container import volume had its largest month-over-month gain in January 2024 in the last seven years according to data released by Descartes Systems Group, a software provider for logistics-intensive businesses. Their February Global Shipping report highlights a 7.9 percent increase in overall container import volume in the U.S. in January 2024 versus December. They report a nearly 15 percent rise in imports from China, highlighting that most of the volume went to the ports of Los Angeles and Long Beach. Continue reading here (Source: The Maritime Executive).