Andrew Craig-Bennett on globalisation - Splash247
" The editor (whom God preserve!) is of the opinion that CK Hutchison’s sale of their ports and terminals operation to a consortium of BlackRock and MSC marks the end of globalisation as an idea which rules our thinking on trade in general and trade by sea in particular, and that the tariffs just introduced by the United States mark the start of a very different set of ideas about trade between nation states.
I am of the contrary opinion. I think free trade, or at any rate WTO trade, will beat tariffs. "
One interesting comment:
" Politicians don’t ‘get’ shipping and the current US government absolutely has no clue about world trade and their weaponisation of Trade Tariffs will be an expensive distraction.
The Good News is that the American public (who have even less understanding of all of this than DJT) may feel the pinch of inflation and vote with their pocket books in the Mid-Terms to stymie any more chaos. Only 600 days to go. "
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ombugge
March 11, 2025, 10:21pm
505
The first signs of a two-tier market are emerging in anticipation of Donald Trump’s likely penalisation of Chinese-built tonnage. Broker BRS is reporting Chinese-linked ships are now becoming “far less attractive” for long time charters due to...
Estimated reading time: 3 minutes
The American president will make a decision soon on whether to carry out suggestions made by the office of the US Trade Representative (USTR**)** following an investigation carried out over the past year into China’s growing dominance in maritime, especially in the realm of shipbuilding.
“Initial industry reaction suggests that the market contemplates an increase in freight rates, a substantial diversion in traffic towards Mexican ports, and a cancellation of some newbuilding contracts at Chinese yards,” Hill Dickinson suggested in a note to clients.
Clarksons Research has calculated nearly 37,000 US port calls last year by ships that would likely face the maximum $1.5m fee due to their connection to China, equivalent to 83% of containership calls but only around 30% of stops by tankers.
PS> With the looming trade war with everybody there many no be much need for ships to call at US ports.
China is not taking the US proposed port fee laying down:
Both the China Shipowners’ Association (CSA) and the China Association of the National Shipbuilding Industry (CANSI) have left public comments criticising the US Trade Representative’s proposals to charge extra for fleets with Chinese-built tonnage...
Estimated reading time: 3 minutes
No, China will not retaliate with fees against US-built or US-flag ships, since they are nearly non-existent in world trade.
In a comment filed on the USTR site, CSA called the agency’s proposed actions discriminatory and said they violate World Trade Organization rules as well as WTO dispute settlement rulings.
The USTR’s move also violates the 2003 Sino-US Maritime Agreement, CSA said, adding that it violates US laws and rules.
The proposals exceed the statutory authority of the USTR, infringe on the jurisdiction of the Federal Maritime Commission, violate the standards for agency action under the Administrative Procedure Act and violate the Export Clause of the US Constitution, the group said.
Global Times , a state-run Chinese newspaper, lambasted the American plans earlier this week in an OpEd, arguing: “The chasm between American and Chinese shipbuilding is fundamentally a gap in industrial infrastructure. The forces of globalization swept away America’s steel mills, machine shops and skilled labor force, leaving behind rusting supply chains and a hollowed-out manufacturing base. Shipbuilding, a quintessential heavy industry, requires a robust industrial foundation. When that foundation crumbles, shipbuilding inevitably follows.”
More restrictions on foreign ships calling at US ports could be implemented:
In the latest maritime bombshell coming out of Washington DC, the Federal Maritime Commission, the country’s shipping regulator, has warned it might bar entry to ships from countries found to be causing choke points at key locations around the world....
Estimated reading time: 2 minutes
Is a “Three-ring Circus” is setting up it’s big top tent on The Mall?:
“As the Trump 2.0 reality show unfolds, as it does daily, often with singular market-moving tweets, we might as well suspend trying to make credible forecasts of future supply-demand balance across shipping sectors. Underwhelming spot earnings render shipping sentiment downbeat while we seek greater clarity on today’s geopolitical, trade and social threats,” noted a recent report from broker Hartland Shipping.
And the clowns are ruling the circus.
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And the big question is:
We have a new magazine launching today, designed to give the shipping industry an idea of how the markets might play out in the coming months. Today’s opening instalment looks at the trajectories of the world’s two largest economies. Economists have...
Estimated reading time: 5 minutes
Economists have been left flabbergasted by the opening months of Donald Trump’s return to power in the US, the international rulebook torn up, policies raining in and often being rescinded by the hour. Making a call on how the global economy plays out in the coming months has rarely been more tricky, or down to the whims of one man.
At no point since tracking began on the subject have global trade policies been more uncertain than right now, according to one index developed in the US:
I’ve rarely seen a year start with more uncertainty
The full ramifications for how relations between China and the US, the world’s two largest economies, will develop between Trump and his counterpart, Xi Jinping, still remain unclear.
“While we are all kept guessing as to what Mr Trump has in mind for US-China relations, let’s consider the Chinese astrological Snake: it is wise, mysterious and thoughtful,” says Mark Williams, who heads up consultancy Shipping Strategy: “Snakes like big ideas and understanding how things work. In this Year of the Snake, we could all do with some of these characteristics if we are to come out the other side in better shape.”
PS> Splash 24/7 has a new magazine:
As well as markets coverage, this new magazine also covers pressing regulatory issues and likely tech breakthroughs. Click here to access the full magazine .
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ombugge
March 24, 2025, 12:50pm
509
Thai shipping company Precious Shipping, is busy in the news today:
As fleet overhaul at Precious Shipping pushes ahead, the Thai dry bulk player has moved to expand its business to other shipping sectors. The Khalid Hashim-led listed owner said in a stock exchange filing that its Singapore subsidiary had struck a...
Estimated reading time: 1 minute
“The jv company aims to acquire high-quality assets and employ them with industry-leading charterers, providing revenue stability and earnings visibility,” the statement said.
Precious Shipping, which currently counts a fleet of 44 bulkers on a fully delivered basis, will own 45% of the new company, expected to be established in the next two months.
Norwegian dry bulk operator Western Bulk Chartering has locked in about $1.5m profit from the sale of a 2020-built ultramax picked up by exercising a purchase option. The Oslo-listed company has offloaded the Western Singapore to Thai bulker owner...
Estimated reading time: 1 minute
The Oslo-listed company has offloaded the Western Singapore to Thai bulker owner Precious Shipping for $28m.
The purchase option was exercised at Japan’s Nisshin Shipping, and the 63,688 dwt vessel should be delivered to Precious Shipping by April 16, the Khalid Hashim-led company said in a stock exchange filing.
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Some famous names in shipping have teamed up with one of America’s most famous science research institutes to tackle challenges facing global shipping. ABS, Capital Clean Energy Carriers Corp, HD Korea Shipbuilding & Offshore Engineering,...
Estimated reading time: 2 minutes
The consortium will launch multiple research projects designed to tackle challenges from a variety of angles, all united by cutting-edge data analysis and computation techniques. Collaborators will research new designs and methods that improve efficiency and reduce greenhouse gas emissions, explore the feasibility of alternative fuels, and advance data-driven decision making, manufacturing and materials, hydrodynamic performance, and cybersecurity.
But will it solve the problems associated with erratic policy now in place in Washington DC?
Lower trade = less need for shipping:
Many of shipping’s go-to bodies for trade forecasts are now slashing economic predictions for the year ahead in the wake of Donald Trump’s tariff war. Creating significant alarm, the World Trade Organization (WTO) has warned global merchandise...
Estimated reading time: 3 minutes
The volume of world merchandise trade is expected to decline by 0.2% in 2025 under current conditions, nearly three percentage points lower than what would have been expected under a low tariff baseline scenario, according to the WTO secretariat’s latest Global Trade Outlook and Statistics report released yesterday. This is premised on the tariff situation as of April 14. Trade could shrink even further, to -1.5% in 2025, if the situation deteriorates come July 9 when Trump could slap more tariffs around the world.
Less shipping = less need for supplies and services for shipping = less maritime related jobs.
The road to economic disaster is paved with stupid policies.
ombugge
April 19, 2025, 12:17pm
516
It is out (in a new and improved version):
The Trump administration took steps to impose levies on Chinese vessels docking at US ports, threatening to shake up global shipping routes and escalate the trade war between the world’s two biggest economies.
Est. reading time: 4 minutes
But there are pushback:
Liner shipping association the World Shipping Council (WSC) has raised significant concerns about the newly announced U.S. Trade Representative port fee regime, warning of potential adverse effects on American trade...
Est. reading time: 4 minutes
ombugge
April 20, 2025, 11:24am
517
Signal’s Dry Market Report for week16 shows an interesting swing in the soybean trade: (No, not that “Signal”)
This week’s highlight focuses on the shifting trends in soybean dry bulk flows from Brazil and the U.S. to China, following the latest round of tariffs imposed amid escalating trade tensions. We had already anticipated these changes in agricultural trade dynamics in November 2024 , following the outcome of the U.S. elections.
U.S. Soybean Exports: Declining Share and Strategic Setback
In March 2025, export volumes plummeted to approximately 2 million tonnes—significantly lower than during the same periods in 2023 and 2024. This decline highlights the enduring consequences of the U.S.-China trade war. As tariffs and geopolitical tensions continued,
Looks like they are assuming that there will be no LNG export by 2028:
Apart from fees on import vessels, USTR will incentivize the use of U.S.-built liquefied natural gas (LNG) vessels by implementing restrictions on exports via foreign-built carriers. Specifically, the agency will introduce export restrictions on the maritime transport of LNG via foreign-built carriers beginning April 17, 2028, which will gradually increase over 22 years.
Source:
Maybe it would be smarter to look at what is ailing US shipbuilding and try to correct that, rather than trying to stop China from succeeding?
PS> No it is NOT the high wages in the US. It is rather the high salaries paid to management, the high return expected by stock holders and the lack of modernization of the building process.
Lack of incentive to do anything to compete with other high cost countries, like Japan and NW European countries is another reason.
This comes from “hidden subsidies” in the form of overpriced Government contracts.
Shipping spent the weekend digesting the news from the US where watered down plans to charge China-linked ships extra for American port calls have created considerable outrage in Beijing and Hong Kong, while causing consternation for members of the...
Estimated reading time: 5 minutes
The 42-page document released by the US Trade Representative (USTR) has been pored over by world shipping and has attracted criticism for its lack of clarity.
Chinese shipowners and operators do look to be hit with far higher bills. They will initially be charged $50 per net ton, rising by $30 a ton each year for the next three years.
The way the fees have targeted Chinese operators could see big shifts on the transpacific liner trades in particular.
China’s COSCO and OOCL are part of the Ocean Alliance along with France’s CMA CGM and Taiwan’s Evergreen. Hede Shipping is another niche independent Chinese operator on the transpacific.
The World Shipping Council (WSC), a liner lobby group, has hit out at the new fees, especially on the car-carrying ones.
“Unfortunately, the fee regime announced by USTR is a step in the wrong direction as it will raise prices for consumers, weaken US trade and do little to revitalise the US maritime industry,” said Joe Kramek, president and CEO of the WSC.
The Chinese government, shipbuilding and shipping associations, along with COSCO, have all condemned Trump’s port fees.
China’s national shipbuilding association called on the international maritime industry to “jointly resist this short-sighted US behaviour, and jointly maintain a fair market environment”.
The China Shipowners Association said the US move is “significantly discriminatory,” and the association “firmly opposes the US’ accusations based on false facts and prejudice”.
On LinkedIn, Dr Martin Kröger, the CEO of the German Shipowners’ Association, wrote: “The German shipping sector, like many others, will pay a steep price. More costs. More friction. More political games where merchants and consumers become collateral damage.”
Seams like wishful thinking?
Who, in their right mind will order ships from US yards, looking at their record of prices and delivery time?
Even if ordered this year, will the ship be delivered within 3 years?
Tobias Backer, executive director of Pelagic Capital, writes for Splash today on shipping’s cash requirements in uncertain times. :
Tobias Backer, executive director of Pelagic Capital, writes for Splash today on shipping’s cash requirements in uncertain times. The maritime industry is no stranger to volatility and uncertainty. However, shipping is currently experiencing a...
Estimated reading time: 3 minutes
He is not very occupied with Trump’s tariffs and port dues, though:
This trend is particularly challenging when considered within the context of a rapidly aging global fleet, that will see approximately 15,000 vessels reach the end of their economic life within the next ten years. As a result, there is an increasing capital requirement within the industry that is not being supported through traditional financial institutions.
Maybe he sees that as a short term problem that will go away when the effects on the US economy exceeds even the stupidity of the Trump administration?
The Koreans to the rescue:
The Korean-controlled Philly Shipyard is gearing up to build the first LNG carriers in America since the 1970s. Following last week’s announcement by the US Trade Representative (USTR) on port fees designed to boost American shipbuilding, Hanhwa...
Estimated reading time: 2 minutes
Hanwha Ocean, formerly Daewoo Shipbuilding & Marine Engineering (DSME), is one of the world’s top builders of LNG carriers, one of the harder, more complex commercial ship types to consrtruct.
They will bring in knowhow, drawing, materials, machinery and the necessary expertise to build “all American” LNG carriers.
If anybody is willing to pay the price + tariffs, that is.
Not everybody thinks this is feasible: