2020 could end up as a highly toxic combination of what the dry bulk sector experienced in 2009, with an all-time low demand, and a 2016 in which there were far too many ships, according to ominous report.
The coronavirus outbreak was a main talking point at a meeting between several shipping organizations in Italy. While crews and employees remain first priority, the organizations fear long-term consequences for the industry.
Several shipping organizations now propose a carbon fee on fuel. Over the next ten years, this would lay the foundation for collecting USD 5 billion earmarked for research and development on measures to lower the industry's carbon footprint.
Shipping interest group Bimco is concerned about the EU Commission's plan to introduce CO2 quotas on the maritime sector. The association also opposes the plans to remove a tariff exemption on ship fuel.
Why did IMO and the shipping industry pick 2008 as the benchmark for its plan to reduce shipping's CO2 emissions? It was the year when emissions peaked. Bimco says the year is advantageous to the shipping sector but does not believe it changes the task at hand.
Shipowners in associations including World Shipping Council and Bimco call on the IMO member states to ensure complete compliance with the new sulfur regulations set to come into force next year. The calls come after several countries have flirted with the idea of not enforcing the regulations in their territorial waters.
Baltic Dry has changed to such an extent that the index no longer serves as a proxy for the dry bulk sector overall, says Bimco Chief Analyst Peter Sand, who thus takes down an institution in the shipping sector.
A surge in scrapping activity is not enough to compensate for the wave of new capesize ships that is finding its way to the already-strained market for the large dry bulk vessels, warns shipping association Bimco.
Bimco criticizes the IMO for using "unrealistically high GDP growth projections" in its predictions for future transport needs – and thus greenhouse gas emissions. The industry should base its actions on "realistic projections," says the shipping association.
Bimco and Braemar ACM both project that trade disputes and a weak balance weigh down the dry bulk market and the Baltic Dry extraordinarily. "Right now it's a strained market all around," Norvic Shipping CEO Peter Borup tells ShippingWatch.
Despite a truce, the trade war between the US and China has impacted three otherwise good quarters on the bulk market and created major uncertainty, says Nordea in an analysis. Bimco warns that the recovery is "fragile."
På trods af en "våbenhvile" har handelskrigen mellem USA og Kina spoleret tre ellers gode kvartaler på tørlastmarkedet og skabt store usikkerheder fremadrettet, vurderer Nordea i en analyse. Bimco advarer om, at opsvinget er "skrøbeligt".