Development of the Simandou blocks in Guinea will not only increase the country’s iron ore exports but will also prompt Chinese importers to shift some iron ore imports away from Australia to Guinea, which will add to dry bulk shipping demand.
On 18 March 2020, the US imposed sanctions on seven entities (including Chinese trading and shipping companies) for knowingly engaging in a significant transaction for the purchase, acquisition, sale, transport, and marketing of petrochemical products from Iran.
India imposed the nationwide lockdown on 24 March 2020 and extended it to 3 May 2020 to stem the spread of coronavirus (COVID-19) in the country. The country is also considering a 15% COVID-19 tax from 1 May 2020 to 31 March 2021 on imports of some chemicals (list is unclear) to protect its domestic industry which is suffering from slowdown in economic activity.
Qatar Petroleum recently secured slots for building eight 175,000 cbm LNG carriers along with the option for eight additional vessels at China’s Hudong–Zhonghua Shipbuilding. The deal is reportedly worth $3 billion and the vessels are scheduled for delivery in 2024-25.
The conclusion of the P&I renewal season and rising risk exposure from Covid-19 confirms that marine insurance costs are hardening which will raise vessel operating costs just when earnings are expected to come under pressure as trade contracts.
In this 50-page special report, Drewry’s investment research team updates its independent assessment of the financial health of the box shipping industry. The full report is now available to purchase online.
Container shipping lines’ ability to provide cargo space as needed showed a marginal improvement in 2019, but this gain will have been dramatically reversed by the end of the first half of this year, according to the fourth annual shipper satisfaction survey of Drewry and the European Shippers’ Council (ESC).