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Saturday, June 6, 2020

Phase One News

Source: BIMCO, Clarksons

BIMCO Tanker Rate Analysis: Reality Kicks In, Rates Fall

Tanker shipping: sky high freight rates replaced by reality of falling global oil demandGeopolitical tensions have now eased, leaving freight rates to feel the full effects of the weak underlying market and falling demand. Tanker shipping looks set to be under pressure for the rest of the year.Demand drivers and freight ratesThe tanker shipping industry was once again caught in a whirlwind, as freight rates skyrocketed with little regard to the poor market fundamentals before the latter once again caught up with rates.

Photo: Liebherr Container Cranes

DP World Berbera Orders 8 RTG Cranes

Liebherr Container Cranes and DP World Berbera have signed a contract for the supply of eight RTGs for DP World’s terminal in Berbera, Somaliland. The cranes are due to be ready for operation before the end of 2020.The high performance, variable speed diesel RTGs are six containers plus a truck lane wide and will stack one over five containers high. The machines are supplied with DGPS autosteering and stack profiling. Like all Liebherr RTGs, the machines incorporate Liebherr’s eight rope reeving no-sway-system.

© Igor Yu. Groshev / Adobe Stock

BIMCO Revises 2020 Forecast

The coronavirus pandemic is impacting global shipping demand for 2020 negatively. The speed of the virus spread makes it difficult to assess the full consequences. Nevertheless, we see a need to update our 2020 forecast to make some of this massive uncertainty tangible.What is going on in addition to the coronavirus pandemic?Geopolitical tensions that made the OPEC+ alliance break down, has subsequently made the crude oil tanker spot freight market erupt. The events that followed the breakdown - and those that are likely to follow…

© Oleg/AdobeStock

BIMCO: US-China “Phase One” Fails to Boost Trade Volumes

Even before the effects of the coronavirus, the ‘Phase One’ agreement between China and the US failed to boost volumes of the implicated goods in January. In fact, exports of the manufactured, agricultural and energy goods included in the deal were down 26% from January 2017, which serves as the base year for the agreement.The ‘Phase One’ agreement which was signed on 15 January 2020 to lowered some US tariffs on imports from China, which in return has committed to increase its imports from the US.

Image: Mammoet

Mammoet Completes Mexican Terminal Expansion

Mammoet, a Dutch company specialized in engineered heavy lifting and transport of over-sized and heavy objects, said that its  team has successfully completed the second phase of the relocation of several shipping container cranes for Hutchison Ports ICAVE as part of a planned port expansion in Veracruz, Mexico.Mammoet used 56 axle lines of SPMT to transport two ship-to-shore (STS) cranes and ten rubber-tired gantry cranes (RTGs). The completion of the crane relocations has increased the port’s capacity to more than 95 million tons.

Image: S.C. Ports Authority

SC Ports Constructs New Container Terminal

South Carolina (SC) Ports has celebrated the structural completion of the operations building at Hugh K. Leatherman Sr. Terminal, a new container terminal along the Cooper River, which will open in March 2021.S.C. Ports celebrated today the structural completion of the terminal’s new operations building. More than 300 people — contractors, port employees, elected leaders and community members — cheered as a steel beam and tree were placed atop the steel structure as part of a traditional “topping out” ceremony.The 34…

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US Lifts Sanctions on COSCO's Dalian Unit

The United States on Friday lifted sanctions on one of two units of the Chinese tanker company COSCO, the U.S. Treasury said, partially reversing its punishment on the company for transporting Iranian oil after China complained about the measure in trade talks with Washington.President Donald Trump's administration on Sept. 25 blacklisted two units of COSCO, named after the northeastern Chinese port of Dalian. The move sent worldwide freight costs to record highs and disrupted the global shipping market.The U.S.

 © Igor Yu. Groshev / Adobe Stock

Chinese Imports of Tariffed Goods from US Drops -BIMCO

US seaborne exports to China of the goods which China has imposed tariffs on since the start of the trade war fell by 37.6% in the first 11 months of 2019 (11M 2019) compared to the same period of 2017, the last full year unaffected by the trade war. Despite the drop in exports to China, total US seaborne exports of the tariffed goods have risen in the same period, as exports to the rest of the world have compensated for the decrease to China.Overall seaborne volumes of the affected goods to China have fallen by 30 million tonnes in 11M 2019 compared to the 11M 2017.

© Irina Logra / Adobe Stock

US Retail Imports Normalizing After Tariff Surges

U.S. retail imports are beginning to settle down following a year of fluctuations driven by the uncertainty of the trade war with China, industry experts say.Volume at the nation’s major retail container ports is expected to return to its usual seasonal patterns during the first few months of 2020, according to the Global Port Tracker report released today by trade association the National Retail Federation and consulting firm Hackett Associates.“We’ll be more confident after we see the Phase One agreement signed…

Patrik Berglund (Photo: Xeneta)

Xeneta's Year Ends High, Concerns Remain

Xeneta has ended 2019 with a second month of increases in long-term contracted ocean freight rates across key trading routes.According to the latest XSI Public Indices report from Xeneta  global rates climbed by 0.9% in December (adding to a 0.9% rise in November). However, despite the welcome upswing, after well over a year of steady decline (with the exception of a spike in May), market confusion concerning IMO 2020 sulphur surcharges still remain.Moving in the right directionXeneta’s XSI Public Indices report utilizes over 160 million data points…

AdobeStock / © rawf8

Commodities 2020? Reading the Trump, China Tea Leaves

As 2020 approaches, the year ends with the tantalising prospect of a trade deal between the United States and China. Again.Initial agreement to de-escalate the tariff war between the world's two biggest economies has been interpreted as a positive for the global economic outlook. But it's worth remembering that 2018 ended on a similar note - leaving the commodities outlook once again hostage to the whims of Donald Trump and Xi Jinping.In November last year, the U.S. President and his Chinese counterpart also reached a trade agreement of sorts at the G20 summit in Argentina.

Reportedly, the impending trade deal depends heavily on significant increases in China imports of U.S. agricultural products. Image Credit: AdobeStock / © Igor Strukov

U.S. sets Trade Terms, Beijing So Far Silent

Washington has set its terms for a trade deal with China, offering to suspend some tariffs on Chinese goods and cut others in exchange for Beijing's buying more American farm goods, U.S. sources said on Thursday.Beijing has yet to confirm whether it is on board with the proposal, although officials will hold a press briefing Friday night local time to update progress on the talks, the State Council Information Office said. Officials from the state planner, ministry of finance, foreign ministry, agriculture ministry and ministry of commerce will attend.In the hours since U.S.

Pic: Adani Ports

Adani to Develop Container Port in Myanmar

India’s largest private multi-port operator Adani Ports and Special Economic Zone (APSEZ) will set up its first container terminal outside India in Myanmar at an estimated cost of US$ 290 million.Adani Group said that all requisite permissions have been received in the form of Myanmar Investment Commission permit, to build and run a container terminal along the Yangon river for 50-years.APSEZ would be the first Indian company to set up a container terminal outside India, CEO Karan Adani said.Construction for phase one of the project will commence next month and will be completed by June 2021.

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China Hoping for Expedited US Trade Agreement

China said on Monday that it hoped to make a trade deal with the United States as soon as possible, amid intense discussions before fresh U.S. tariffs on Chinese imports are due to kick in at the end of the week.Beijing hopes it can reach a trade agreement with the United States that satisfies both sides, Assistant Commerce Minister Ren Hongbin told reporters on Monday."On the question of China-U.S. trade talks and negotiations, we wish that both sides can, on the foundation of equality and mutual respect…

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White House Points to November for U.S-China Deal

White House trade adviser Peter Navarro on Friday pointed to next month's Asia-Pacific Economic Cooperation (APEC) forum in Chile as the Trump administration seeks to formalize its "phase one" trade pact with China."We're on the glide path to Chile and the meeting of the two presidents mid-November. And the plan there is to have an agreement, so we'll see what happens," Navarro said in an interview on Fox Business Network, referring to U.S. President Donald Trump and Chinese President Xi Jinping. Reporting by Susan Heavey and Jan Wolfe

Pic: APM Terminals

APM Terminals Poti Begins 24/7 Operations

APM Terminals Poti, the largest port in Georgia, has commenced the implementation of uninterrupted 24/7 operations to maximize berth utilization, increase efficiency and speed up vessel handling.The implementation of a flexible workforce management solution will take place in two phases. Phase one will apply to single berth occupancy. The workforce currently allocated to the free berth will be assigned to the operational berth to cover break times and support a smooth and uninterrupted workflow.The second phase…

The Sahibganj multi-modal terminal on the River Ganges is now open for business. Indian Prime Minister Shri Narendra Modi inaugurated the new terminal yesterday (September 12, 2019). Also pictured are the Governor of Jharkhand State,Smt. Draupadi Murmu; the Union Minister for Tribal Affairs, Shri Arjun Munda; the Chief Minister of Jharkhand State, Shri Raghubar Das; and the Ministers of State for Agriculture and Farmers Welfare, Shri Parshottam Rupala and Shri Kailash Choudhary, plus other digni

India Opens Second Multi-Modal Terminal

The Government of India opened its second multi-modal terminal (MMT) yesterday, September 12, 2019. Located on the River Ganges at Sahibganj in Jharkhand State, the new terminal is now ready for business following the completion of a two-year construction project managed by the Inland Waterways Authority of India (IWAI). India’s Prime Minister Narendra Modi laid the foundation stone for the $40.32 million project in April 2017.Phase one of the terminal was inaugurated by Prime Minister Modi via a two-way digital communication system during an event held in Ranchi…

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Phase One Trade Deal with China in 'Good Shape'

The initial "phase one" trade pact with China appears to be in good shape and is likely to be signed around mid-November, although a finite date is still in question, U.S. Commerce Secretary Wilbur Ross said on Friday."We're pretty comfortable that the phase one is in good shape," he told Fox Business Network in an interview.Reporting by Susan Heavey

AdobeStock / © Kasto

Bullet Dodged? Markets Bet on Global Economy

World shares climbed back towards record highs and safe-haven bonds tumbled on Tuesday, as hopes that Washington may roll back some of the tariffs it has imposed on Chinese imports rekindled optimism about the global economic outlook.A year-end rally looked to be building. Wall Street's main markets were expected to add to their 20% gains and best year since 2013. MSCI's 49-country world index was just 1.4% shy its early 2018 peak.Europe had galloped to a 21-month high on Monday before retreating on Tuesday. Asia had raced to its highest since May.

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China, U.S. Reportedly to Cancel Tariffs in Phases

China and the United States have agreed to cancel in phases the tariffs imposed during their months-long trade war, the Chinese commerce ministry said on Thursday, without specifying a timetable.An interim U.S.-China trade deal is widely expected to include a U.S. pledge to scrap tariffs scheduled for Dec. 15 on about $156 billion worth of Chinese imports, including cell phones, laptop computers and toys.Tariff cancellation was an important condition for any agreement, ministry spokesman Gao Feng said…

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Retail Imports to See Final Tariff-Driven Surge

Imports at the nation’s major retail container ports are expected to see their final surge of the year this month ahead of new tariffs set to take effect in December, according to the Global Port Tracker report released today by the National Retail Federation and Hackett Associates.“Retailers are highly competitive, but the ability to compete has been challenging this year because of the uncertainty of the trade war and continued tariff escalation,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said.

AdobeStock / © Scanrail

Stocks Nearing Record Highs on Trade Hopes

World shares made another push for an all-time high on Wednesday after U.S. President Donald Trump said Washington and Beijing were in the final throes of inking an initial trade deal.European trading was restrained, with MSCI's all-country world index now within 0.4%, or 2 points, of its record high from January 2018.London, Frankfurt, Paris and Wall Street futures all rose, and though Shanghai had struggled after Chinese industrial company profits shrank, Australia had set its…

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U.S., China Reach Trade Deal 'in principle'

The White House has reached a "deal in principle" with Beijing to resolve the 17-month U.S.-China trade war, according to a source briefed on the trade talks.The White House was expected to make an announcement later on Thursday, the source said."The written agreement is still being formulated, but they have reached an agreement in principle," the source said. No details were immediately available.In an attempt to secure a "phase one" trade deal, U.S. negotiators offered to cut…

Singapore Mega Port on Track for 2021

Singapore on Tuesday said its plans to build the world's biggest container terminal in a single location were on track, as it held a ceremony to mark a milestone in the initial construction phase of the mega-project.Tuas Terminal is set to open progressively from 2021, six years after work began, and it is expected to be capable of handling 65 million twenty-foot long shipping containers per annum when fully completed in 2040.Once completed, the terminal is slated to become the world's largest container terminal in a single location…

Pic: Advent Intermodal Solutions

FIT Speeds-up Flow of Cargo

Florida International Terminal (FIT) has successfully deployed the eModal Community Portal (eCP) PreGate appointment module to improve turn times and customer service.The port operator of a 41 acre marine terminal in the Southport area of Port Everglades is the first port terminal in South Florida to implement an appointment system.Advent Intermodal Solutions, provider of the eModal suite of applications that simplify and accelerate the flow of cargo across the landside supply chain…

 Image by Highlands and Islands Enterprise

Boost for Scrabster Harbor Project

The second phase in a major upgrade of Scrabster Harbor in Caithness, the North of Scotland, has secured up to GBP3 million investment from Highlands and Islands Enterprise (HIE).The funding will enable the redevelopment of the existing St. Ola pier to create further deep-water infrastructure and meet anticipated demand from cruise ships and offshore energy supply vessels. It will place the port in an ideal position to service activity in the West of Shetland basin.A new piled quay wall and pier deck will be installed to expand the existing pier.