Shipping News revived

[spowiednick]

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. "

[ombugge]

Preliminary signs of a two-tier freight market emerge as US crackdown on...

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.

[ombugge]

China is not taking the US proposed port fee laying down:

Chinese owners and yards come out fighting in US trade dispute - Splash247

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.”

[ombugge]

More restrictions on foreign ships calling at US ports could be implemented:

US could bar ships from countries seen to be creating maritime chokepoints -...

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.

[ombugge]

And the big question is:

Can these two men find some middle ground to keep world trade moving? -...

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.

[ombugge]

Thai shipping company Precious Shipping, is busy in the news today:

Precious Shipping diversifies with Malaysian tanker venture - Splash247

“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.

Western Bulk pockets $1.5m profit from ultramax sale - Splash247

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.