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Tuesday, May 21, 2019

International Monetary Fund News

Peter Sand, BIMCO

BIMCO: Global Shipping Scouts for Future Growth

Reflections 2019 – Market Analysis Section By Peter Sand, Chief Shipping Analyst.This article contains extracts from BIMCO’s Reflections 2019, which will be available in full on 2 January 2019 on www.bimco.org and will be sent out to all BIMCO members alongside their free member copy of BIMCO’s Holiday Calendar 2019.Where do we go to find economic growth that spurs shipping demand in the next five years? According to the International Monetary Fund (IMF), we should look towards emerging and developing countries.

© chungking / Adobe Stock

US Tariffs Loom at China's Biggest Trade Fair

Amid gathering gloom over the state of the Chinese economy, exporters of motorcycles, tractors, photocopiers and Christmas tree lighting will join thousands of other companies peddling their wares at China's largest trade fair Monday.Many of those exporters will have something in common - uncertainty over future U.S. orders as a trade war with the United States rages. The turmoil has added to concerns over the health of the Chinese economy, already under pressure from a cooling property market…

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Greek Seamen End Strike after Reaching Deal on Wage Increase

Greek seamen on Tuesday called off a strike that had kept ferries and passengers stranded in ports around the country, after reaching a deal with employers on a wage increase.The strike, which started at 0600 (0300 GMT) on Monday, was led by the PNO seamen's federation and other unions including dockers and merchant marine engineers.The PNO had initially planned to continue the strike to Wednesday but said it would end it after reaching an agreement with employers on a 2 percent pay rise this year, its members' first increase for eight years.The walkout forced many holidaymakers to seek altern

© lassedesignen / Adobe Stock

Germany Maintains Large Trade Surplus with US

Germany's exports to the United States in the first half of this year were worth 24.4 billion euros ($28.3 billion) more than its imports of U.S. goods, data from the Federal Statistics Office showed on Friday.The trade surplus was 100 million euros less than last year, but still meant Germany has the largest trade surplus with the United States than any other country, something U.S. President Donald Trump has vowed to reverse.Germany's trade surplus has also come under attack from the International Monetary Fund…

Photo: Maersk Line

Maersk: India Recording a 14% Upturn

India´s containerized trade with the BRICS´ nations trademarks a rise of 14 percent. Export trade from India to Brazil, China, Russia and South Africa in Q1 2018 increased 7,5 percent YOY from same period last year. South Africa turned to be Indian´s top trade partner.BRICS EXIM trade registers steady growth of 1.5 percent in Q1 2018 compared to Q1 2017. “Last year, the BRICS´ joint contribution to the world economy was 23.6 percent, and according to the International Monetary Fund’s predictions this is set to rise to 26.8 percent by 2022.

(Photo: Eric Haun)

Container Shipping Shakeup Needed for Higher Rates

Container shipping: Change required for higher ratesDemandThe growing imports of loaded containers into the U.S. East Coast (USEC) continues to be a focal point for the container shipping industry. Growing by 10.4 percent in Q1-2018, the first three months saw 215,000 TEU more entering the USEC than in Q1-2017. Exports grew by 55,000 TEU in the same time span, growing outbound loaded containers by 3.8 percent.This illustrates the constantly changing imbalance in U.S. foreign trade. For every five containers entering the USEC in 2013, four were exported.

© Leonid Eremeychuk / Adobe Stock

US Hits EU, Canada and Mexico with Steel, Aluminum Tariffs

The United States on Thursday said it will impose tariffs on aluminum and steel imports from Canada, Mexico and the European Union, reigniting investor fears of a global trade war as Washington's allies took steps to retaliate against U.S. goods.The move, announced by U.S. Commerce Secretary Wilbur Ross in a telephone briefing on Thursday, ended months of uncertainty about potential tariff exemptions and suggested a hardening of the Trump administration's approach to trade negotiations.It also sent a chill through financial markets…

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Macroeconomic Trends Signal Good News for Shipping

The current global economic growth (GDP) looks like it may be as good as it gets, with indicators across the globe signaling healthy expansion, but at a slower pace compared to the levels seen in the last half of 2017.Global economic growth seems on track to reach its highest level since 2011, as the International Monetary Fund (IMF) maintain its projection for the world GDP at 3.9 percent and expects the global economic growth to be supported by a strong momentum, favorable market sentiment and accommodative financial conditions in 2018 and 2019.

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Tanker Outlook: McQuilling Publishes 2018-2022 Report

In 2017, global ton-mile demand to transport crude and residual fuels increased by 5.4 percent, supported by a 4.9 percent increase in VLCCs (which accounted for 62 percent of the total demand for dirty tankers), according to McQuilling Services’ 2018-2022 Tanker Market Outlook report. Suezmax demand meanwhile accounted for 24 percent of all DPP demand in 2017, 1 percent higher than 2016 due to higher crude exports from the Southern Europe and North Africa load region towards the Asian refinery complex.

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Invest in Greece, You Won't Regret It: Greek PM

Greek Prime Minister Alexis Tsipras urged French businesses on Friday to invest in Greece, as it emerges from its debt crisis, and assured them that they would not regret it. Tsipras said attracting investment was a priority for his leftist-led government, which aims to reduce the jobless rate, the euro zone’s highest, and make Greece financially independent in 2018, when the country’s third international bailout expires. “Greece is an opportunity... a real opportunity,” Tsipras told French business leaders accompanying French President Emmanual Macron on a two-day trip to Athens.

© Manuel Faba / Adobe Stock

Egypt Agricultural Exports Rise 12% in 2017

Egypt's agricultural exports rose 12.1 percent during the first half of 2017, reaching 3.5 million tonnes compared to 3.1 million last year, agriculture ministry spokesman Hamid Abdel Dayim said on Wednesday. Egypt's agricultural exporters have seen a surge in demand since the country floated its currency last November, allowing it to roughly halve in value as part of reforms tied to a three-year $12 billion International Monetary Fund loan agreement. Exports increased in citrus, potatoes, grapes, and strawberries, and fell only for onions, Dayim said.

© Igor Strukov / Adobe Stock

Egypt to Halt Flour Subsidy, Slash Wheat Imports

Egypt, the world's largest wheat buyer, will stop subsidising flour for its sweeping bread subsidy programme next month in a move expected to cut wheat imports by up to 10 percent by curtailing smuggling, the supply ministry said on Wednesday. Egypt is looking to tighten its finances as it pushes ahead with a $12 billion three-year International Monetary Fund loan programme tied to ambitious reforms such as subsidy cuts and tax increases. Austerity-hit Egyptians faced with inflation above 30 percent have increasingly turned to the state's cheap subsidised bread to make ends meet…

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Mongolia Coal Export Earnings Surge after N.Korea Ban

Mongolia's coal export earnings surged nearly fivefold in the first five months of the year, according to official data, with the country taking advantage of sanctions on North Korea to boost deliveries to China, its major customer. Cash-strapped Mongolia was forced to turn to the International Monetary Fund for support this year following a collapse in foreign investment, declining commodity prices and a downturn in coal demand. But it is now reaping the benefits of a ban on exports from North Korea, which has forced China to find alternative coal suppliers.

Photo: Hapag-Lloyd

Container Shipping Demand Remains Good: Hapag-Lloyd

In the medium term, demand for container shipping services should continue to rise in tandem with expected ongoing growth in global trading volume, says Hapag-Lloyd. As a result, the container shipping industry’s medium-term growth prospects remain intact, says the company in its investor outlook for 2017. In its latest economic outlook (April 2017), the International Monetary Fund (IMF) expects global economic growth to reach 3.5% in the current year. This forecast means that the global economy is set to grow at a slightly faster rate in 2017 than in the previous year (+3.1%).

Photo: CMA CGM

CMA CGM, Adani Ports Sign Pact to Operate Mundra Port

French shipping group  CMA CGM and Adani Ports and Special Economic Zone (APSEZ), India’s leading port infrastructure developer and part of the Adani Group, today signed a joint venture agreement, to operate a new container terminal (CT4) at Mundra Port, for next 15 years with an option to extend it twice for 10 more years. Rodolphe Saadé, CMA CGM’s Chief Executive Officer said: We have been present in India for over three decades now and employ 4,000 people. Speaking on this momentous occasion…

Photo: APM Terminals

New Quetzal Terminal Welcomes CSAV Traiguen

The 8,600 TEU capacity CSAV Traiguen became the largest container ship to call a Guatemalan port when it arrived at Terminal de Contenedores Quetzal (TCQ) on Guatemala’s Pacific Coast on April 12th, 2017, on the maiden call of German-based Hapag-Lloyd’s Mediterranean Pacific (MPS) service. The previous record of 5,500 TEU was established just a month ago with the arrival of the Maersk Gironde into TCQ on March 26th. TCQ, which was acquired by APM Terminals in March 2016 while under construction, opened for operations earlier this year, with the first trial vessel call completed in February.

IMF Real growth rate forecast

2016 brings lowest GDP growth rate since financial crisis began - BIMCO

In terms of global economic recovery, 2016 has been the year with the lowest GDP growth rate since the financial crisis began in 2009. Amongst many landmark events, the slowdown for GDP growth in 2016 stemmed from weaker US activity in the first half of 2016, together with the UK’s referendum vote to leave the European Union, putting “Brexit” on the horizon. Although the International Monetary Fund (IMF) emphasised that the result of the UK referendum had been contained, the world saw an orderly repricing in the financial markets after the initial shock of the Brexit vote.

Photo: World Shipping Council

Bimco Expects 'Die-hard Competition' to Continue in 2017

2017 will see another year of die-hard competition, which now includes tankers, says International shipping association Bimco. The shipping industry has its work cut out going forward in 2017 as the International Monetary Fund (IMF) forecast the lowest level of global GDP growth since 2009. In 2016, the container shipping industry bit the bullet in terms of demolition and consolidation to help the market to recover. The dry bulk sector needs to copy that approach«. Bimco said in market outlook released today.

Graphics: Drewry Shipping Consultants Limited

Will UK Maritime Traffic Rise or Fall on Brexit?

UK container traffic will see more muted growth than expected a few months ago, at least in the short term, says Drewry. Patrick Walters, Peel Ports’ Group Commercial Director, believes that the bigger Brexit-related risk for UK container ports is a short-term negative impact on box volumes caused by economic and political uncertainty and GDP slowdown. According to the International Monetary Fund, the Brexit vote implies a substantial increase in economic, political, and institutional uncertainty, which is projected to have negative macroeconomic consequences.

Petrobras Headquarters Photo Petrobras

Petrobras Announces new President, Management Changes

Petrobras reports that it has received the letter of resignation of Mr. Aldemir Bendine the functions of a member of the Board of Directors and President of the Company today. In addition, Mr. Bendine also resigned today, the office of member of the Board of Directors of Petrobras Distribuidora - BR. In view of the resignation, the Board held a special meeting that has elected Pedro Pullen Parente engineer as a member of the Board of Petrobras today. The Council at the same meeting also elected Mr.

Photo: APM Terminals Global Terminal Network

Cai Mep International Terminal Container Volume Doubles

Throughput at Cai Mep International Terminal, the APM Terminals facility in Vietnam’s Ba Ria‐Vung Tau province, southeast of Ho Chi Minh City, expanded by 130 percent in the first quarter as new service calls added in 2015 began to impact volumes. The container volume has surged by 130% to 277,303 TEUs for the first three months of 2016, as compared with the same period a year ago. This growth follows an 80% expansion in container traffic at CMIT in 2015 over the year prior, to 724,768 TEUs.

CHINA SHIPPING vessel at Cai Mep Photo APM Terminals

CMIT's Q1 Volume Double

Cai Mep, Vietnam - With five new services calls added to Cai Mep International Terminal (CMIT) since May of 2015, container volume has surged by 130% to 277,303 TEUs for the first three months of 2016, as compared with the same period a year ago. This growth follows an 80% expansion in container traffic at CMIT in 2015 over the year prior, to 724,768 TEUs. CMIT, part of the APM Terminals Global Terminal Network, is a deep-water facility located in the Ba Ria‐Vung Tau Province…

Courtesy Ministry of Fisheries, Govt of Mozambique

Mozambique's Tuna Fleet Rusts as an African Success Story Fades

The 24 fishing boats rusting in the harbour of Mozambique's capital were meant to be a modern tuna fleet that would rake in hard currency, create jobs and provide a cheap source of protein for one of the world's poorest countries. Instead, they have become monuments to government mismanagement and heavy lending by Western banks that have buried a promising African economy in a deep debt crisis. The boats, moored in the harbour of Maputo, were paid for out of an $850-million loan arranged in 2013 by Credit Suisse and Russia's VTB to finance "fishing infrastructure".

Limassol Port . Pic: Cyprus Ports Authority

Cyprus Picks Consortiums to Run Limassol Port

Cyprus has announced the names of successful bidders who will undertake three sectors of operations at the eastern Mediterranean island's primary port of Limassol. The first – comprising Germany’s logistics company EuroGate International, Cyprus’s Interorient Navigation Company and East Med Holdings, based in Luxembourg – will run the port’s container terminal. DP World Limited (majority participant) and G.A.P Vassilopoulos Public Ltd for Marine Services and  DP World Limited (majority participant) and G.A.P Vassilopoulos Public Ltd for the Multi-purpose Terminal.

Photo Nordic Bulk Carriers

Bulk shippers hit by perfect storm as global economic doldrums take toll

Off the coast of a nearly deserted island below the southern tip of Hong Kong, at least 10 massive ships that normally carry hundreds of thousands of tons of coal or iron ore lie idle near one of the world's busiest sea routes. These empty vessels paint a grim picture for the dry bulk shipping business that veterans of the industry say is grappling with an unprecedented crisis of too many ships and not enough cargoes. The hollow boats underscore the global economic doldrums that policymakers are struggling to overcome. "This is the worst we have seen in recent times.

Pic: International Maritime Organization

States Urged to Ratify Compensation Regime for Hazardous and Noxious Cargoes

The International Maritime Organization (IMO), together with the International Oil Pollution Compensation Funds (IOPC Funds) and the International Tanker Owners Pollution Federation (ITOPF), is urging its Member States to ratify and implement a key compensation treaty covering the transport of hazardous and noxious substances (HNS) by ship. The International Convention on Liability and compensation for Damage in Connection with the Carriage of Hazardous and Noxious substances by Sea…