Daily Briefing March 17 2020
Free to read: Jet fuel arbitrage trades keep tanker earnings steady | Fresh tanker record as VLCC chartered for over $411,000 per day | Stena Line to cut 950 jobs | Frontline seals deal to buy 10 suezmax tankers
Good morning. Here’s our quick view of everything you need to know today.
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Jet fuel shipped to the US west coast from South Korea and other Asian refiners is keeping the global clean tanker market steady for now, said Italian shipowner Paolo D’amico.
A very large crude carrier has been provisionally chartered at a rate that equates to more than $411,000 per day, setting a fresh record for crude freight shipping costs if concluded.
The ban on crew changes remains in place at Chinese ports, although Beijing has made an encouraging gesture to partly ease the restrictions amid a slowdown in the spread of coronavirus in the country.
Ports along the US northwest Pacific coast continue to feel the effects of the coronavirus outbreak, largely through blank sailings, which are reducing containerised imports up and down the region.
Australia’s liquefied natural gas exports to Japan slipped in February amid the coronavirus outbreak, new figures show.
Container lines on the transpacific trade have started to resume services to pre-coronavirus levels but the impact of reduced volumes will linger for weeks as cargoes in transit arrive in the US, according to Federal Maritime Commissioner Carl Bentzel.
Coronavirus is likely to see an increase in delay and disruption claims under marine policies, an International Union of Marine Insurance newsletter has warned.
The United Arab Emirates has prohibited an MSC boxship from operating in the country’s waters for a year in connection with violations linked to the 0.5% sulphur cap.
Greece has prohibited passenger traffic on cross-Adriatic ferry services but freight movements currently remain unaffected by the edict.
Stena Line is to cut 950 jobs in Sweden after coronavirus fears caused a “drastic decline” in ferry bookings.
Golar Power says it has signed a “Protocol of Intentions” with the state government of Pernambuco, Brazil, to develop a liquefied natural gas import terminal at the port of Suape.
The drop in coronavirus cases in China is coinciding with factories resuming production, but the movement of empty equipment to China and the high number of blanked sailings has taken a toll on shippers with regard to backhaul trades.
Frontline sealed a deal with Trafigura on Monday to buy 10 suezmax tankers, having secured $544m in sale-and-leaseback financing from China’s ICBC Leasing earlier in March.
Danish shipowners have praised new rules laid out by the government to cover 75% of the salary cost for employees whose livelihoods are severely threatened by the coronavirus shutdown.
UK P&I Club is to transfer its occupational disease liabilities to the London Alternative Investment Market-listed run-off specialist Randall & Quilter Investment Holdings on financial terms that remain undisclosed.
Dry bulk carriers owner Globus Maritime has agreed a one-year extension of a convertible bond that was due to mature on March 13.
The capesize market continues to bear bad news. The latest — a warning from Brazil's mining giant Vale that it may have to curb operations due to the rapid spread of the coronavirus — does not bode well for a market that has been struggling to recover.
Chevron has confirmed that a member of staff has developed coronavirus symptoms while on-site at the giant Gorgon liquefied natural gas export project in Western Australia.