- Baltic ICS lunchtime lectures return this September
Baltic ICS lunchtime lectures return this September for a third series in Shanghai, Athens, London and Singapore.
Each round of lectures has a specific focus, with the first examining ‘the law and shipping’. The sessions will look at why arbitration is so prevalent in shipping, what are the costs, benefits and expectations for market participants going to tribunal and how awards are decided.
Singapore attendees will have to opportunity to experience a full mock arbitration organised by the Singapore Chamber of Maritime Arbitration (SCMA).
In other locations, experts from the legal sector will guide attendees through the common causes of disputes and what to expect when becoming involved.
Below are the details for each seminar:
18 September | 13:00
Ashley Xu, Director, MECO Shanghai
42F, Shanghai Tower, 501 Yincheng Middle Rd, Pudong New Area, Shanghai 200000
25 September | 18:00
Guest speaker to be confirmed
Institute of Chartered Shipbrokers Greece Branch, 1 Platonos & 18 Sotiros Dios Str, Pireaus 18535
25 September | 13:00
Ian Gaunt, President, The London Maritime Arbitrators Association, Maritime Arbitrator
Karina Albers, Arbitrator, Mediator, Expert, LMAA
Baltic Exchange 38 St Mary Axe, London, EC3A 8BH
23 September | 14:00 – 18:00
Mock arbitration organised by the SCMA
Singapore Exchange, 2 Shenton Way, #02-02 SGX Centre 1, Singapore 068804
The seminars are free to attend for Baltic and ICS Member companies, but registration is required.
Cost to non-Members:
Register here (reference: BXICS204).
- Baltic supports UK maritime sector drive to decarbonation by 2050
The Baltic Exchange has co-signed a letter sent to UK the government by Maritime UK asking it to invest in a sustainable “blue economy”. This will allow industry to match the UK’s 2050 carbon-neutral pledge. It follows former prime minister Theresa May’s commitment to the UK producing net zero greenhouse gas emissions by 2050 becoming the first G7 nation to make such a promise.
Now maritime organisations in the UK are pledging a similar commitment to carbon neutrality, and asking the government to invest in new technologies to help them achieve it.
The letter reads:
We only have one world, and it is the responsibility of all of us to safeguard it for future generations to live fulfilling, healthy and happy lives. The maritime sector can make a special contribution by developing a sustainable Blue Economy which protects our marine and coastal environments whilst delivering economic and societal benefits.
The global ocean economy will be worth $3trillion by 2030. While this presents enormous growth opportunities for communities, industry and governments across the world, it also calls for the greatest environmental care and sensitivity.
For we must learn the lessons from the economic exploitation of other environments and ensure that the development of the ocean economy does not harm this most precious of domains.
A strong, sustainable and carefully managed Blue Economy will deliver prosperity for all peoples, in particular island and coastal states most at risk from the effects of climate change.
We believe that we can deliver a sustainable Blue Economy with the combined aims of economic growth, societal development and the environmental protection of our marine and coastal environments. Already, maritime transport is one of the most sustainable ways of moving goods from place to place, being much more efficient than both trucks and aircraft. Setting and delivering ambitious sustainability targets will stimulate new markets, products and services required to achieve our environmental goals.
The UK maritime sector is committed to tackling the impact on our oceans of climate change, pollution and other harmful activities.
And we are committed to delivering sustainable economic value to the communities we serve and helping to transform society for the better.
We, the undersigned leaders of the maritime sector, therefore commend the government’s leadership in cutting greenhouse gas emissions and commit ourselves to supporting decarbonisation by 2050.
To realise that target, industry will need to invest, and we call upon government to do the same, most particularly in support of new and viable decarbonisation technologies and the critical infrastructure to support their implementation. Industry and government have established the UK’s national centre for maritime innovation; Maritime Research and Innovation UK. We now call on government to deliver substantial investment to support its work, just as it has for aviation and automotive. Equally, there needs to be investment in greening our maritime infrastructure.
Finally, we ask government to enact enabling rules and regulations which will accelerate the achievement of our goals.
Working together, government and industry will deliver decarbonisation. We cannot afford to fail.
Chair, Maritime UK
Maritime UK members: British Marine, British Ports Association, Cruise Lines International Association UK & Ireland, The Baltic Exchange, Institute of Chartered Shipbrokers, Trinity House, Maritime London, Mersey Maritime, Nautilus International, Seafarers UK, Society of Maritime Industries, Solent LEP, UK Chamber of Shipping and UK Major Ports Group.
- Baltic Exchange Freight and Commodities Forum: Hamburg
The Baltic Exchange invites Members to its Freight and Commodities Forum in Hamburg on 17 October at the Sofitel Hotel Hamburg Alter Wall.
The event will include discussion and analytical insight from leading industry figures on bulk commodity freight flows, supply-side forecasts, regulatory changes and the bunker spread outlook. Hosted by the Baltic Exchange and including an update on our benchmarks and services, this conference is open for all market participants to attend.
13:00 Registration: Networking lunch
14:00 Baltic Exchange Update: Mark Jackson – CEO
14:20 FFA Market Update – John Banaszkiewicz, Chair – FFA Brokers Association (Dry)
14:25 Bulk Commodities and Demand Side Outlook: Capt. Amrit Singh – Lead Shipping Analyst, Refinitiv
15:00 Freight Market Outlook Keynote: James Frew – Director of Consultancy, MSI
16:00 Industry Sessions; rotating break out discussions covering:
- Session A: Supply-Side Dynamics; meeting demand: Led by Chris Hughes – Global Lead, Shipping Markets – Lloyd’s Register with Amrit Singh.
- Session B: Price Discovery; indexation, use of indices and minding the gap: Led by Philippe van den Abeele, CIO – Consortium Capital Management with James Frew.
- Session C: Doubling Dry FFA Volumes and Building Route Liquidity: Led by John Banaszkiewicz, MD, Freight Investor Services with the FFA Brokers Association (Dry).
17:00 Industry Sessions Feedback Panel
18:00 Drinks & Dinner hosted by the FFABA DRY @ VLET an der Alster
- Baltic and GeoSpock publish white paper
In August the Baltic Exchange announced that it has partnered with GeoSpock, the geospatial big data company, to build the world’s most advanced maritime spatial database. The partnership is designed to enable the continued provision of independent, impartial assessment of the maritime industry at a scale never before seen in the sector.
The Baltic Exchange and GeoSpock have now published a document titled “The future of data in the maritime sector: driving change through geospatial data” which outlines the partnership’s vision in detail.
The first project being assessed is a maritime air emissions programme which will take data from a range of sources to provide industry with an enhanced understanding of vessel emission profiles.
Click here to download a copy.
- New study outlines steps to grow UK shipbroking
A detailed report by PWC, commissioned by Maritime London for London International Shipping Week, says that whilst the absolute number of shipbrokers in the UK has grown, the UK is losing market share.
The study, Catching the Wave, sets out 36 recommendations designed to boost shipbroking as well as other professional sectors which make up the UK’s $6bn maritime services industry including finance, legal and insurance. These include:
- Strengthen the core of ship owners and charterers
Recommendations include the appointment of a government ‘shipping czar’ to drive a campaign to attract more ship owners and charterers to the UK
- Deepen the UK lead in specialist segments
The UK has a significant lead in maritime disputes and insurance. Recommendations include the development of legal frameworks for AI, autonomous vessels and carbon emissions to strengthen this position.
- Rebuild the UK’s position in ship finance
The UK has a marginal presence in ship financing following the exit of RBS and Lloyds from the market. Recommendations to revive ship finance include achieving dual listings of large shipping companies on the London Stock Exchange; developing London as the leading offshore centre for RMB based ship leasing and greater sector outreach to the deep pool of UK based institutional investors.
- Extend the UK’s lead in technology
Measures to improve the adoption of digital technologies by the maritime sector including the creation of a government and industry backed fund focused on supporting innovation and the designation of maritime as a priority sector within existing government schemes.
- Increase the talent pool
The availability of skilled staff is a key driver of success for the maritime cluster. Ensure that post-Brexit visa and immigration rules mean that UK firms can recruit the best international staff as well as measures to increase the number of merchant officers, increase diversity and further internationalise the UK’s maritime colleges
- Enhance cluster effect benefits
The positive effect of having multiple maritime service providers in one location needs to be further enhanced. Recommendations include working more closely with other European clusters, proactively engaging with developing economies and virtual clustering initiatives.
The 64-page report analyses the strengths and weaknesses of the UK’s shipbroking, legal, insurance and finance sectors.
The report’s authors note that while other clusters have narrowed the gap in shipbroking, the UK still remains the leader with more brokers than any other cluster. In addition, seven of the top twenty shipbroking firms (including two of the top three) are headquartered in London. “This ensures that the UK remains one of the key centres for shipbroking as it is at the centre of talent and information transfer within these companies.”
The report also notes that 7% of shipbrokers in the UK have worked at three or more firms and that 12% of UK shipbrokers have previously worked in chartering, finance or the legal, classification or insurance sector. The report says: “While this can be seen as a cost to the individual firms concerned, it both promotes the transfer of knowledge and makes the UK a more attractive destination for talent.”
Click here to download a full copy of the report.
- Strengthen the core of ship owners and charterers
- FFA training courses: London
There are still limited places available on the Baltic’s freight derivatives training courses in London (7-10 October).
Freight Derivatives & Shipping Risk Management
An overview of risk in the shipping business. Topics covered include freight rate risk management, derivative instruments, freight rate options, bunker and financial risk management, ship price risk management, Value at Risk and credit risk.
Advanced Freight Modelling & Trading
A focus on pricing freight options, modelling freight rate dynamics, constructing forward curves, modelling freight rate volatility as well as hedging and trading strategies.
For full details please visit www.balticexchange.com/other-services/training-2/
- Member update: 18 September
The following company has applied for Corporate Membership:
Company Individual PT Pertamina International Shipping
Miss P P Landau Mr A Setyawan Steel Authority of India Limited
Mr D Banerjee Mr P Dan Mrs K Das Ms J Maiti
The following individuals have applied for membership of an existing member company:
Company Individual Basrah Gas Company Limited
Mr R Fiske Miss C Ng Barry Rogliano Salles Mr F D Loachamin The Air Charter Association Ltd Mr G Chisholm Mr J Ferasin Mr C Mace
Any comments should be passed to Karen Karanicholas by 25 September 2019.
- Baltic Exchange launches new ship operating expenses assessment
The Baltic Exchange has launched a new assessment to track the cost of operating vessels. Initially covering a range of dry bulk vessels, the service will also be expanded to tankers and other sectors.
The Baltic Operating Expense Index (BOI) will be published quarterly and based on assessments from three leading independent third-party ship management companies: Anglo-Eastern, Columbia Shipmanagement and Fleet Management. Collectively they manage a fleet of over 1,800 vessels. Additional companies are expected to join the panel in the future and a residual price calculation added later this year.
Baltic Exchange Chief Executive Mark Jackson said:
“The Baltic Operating Expense Index is intended to provide transparency to the fluctuations in running costs. Daily operating costs are one of the variables used by shipping investors to calculate the profitability and residual value of their assets. We already provide independent freight, sale & purchase and recycling assessments. With the addition of operational expenses assessments, shipping investors now have a complete toolkit to manage their risk and aide their decision process.”
Each panel member will submit four numbers, expressed in USD per day. Three will be combined to produce the BOI:
- Crew (USD per day, including all fees)
- Technical ((USD per day, including all fees)
- Insurance (USD per day, including all fees and rebates)
The fourth, an assessment of a five year Drydock cost, will be amortised over five years to give a USD/day price, but published separately and will not contribute to BOI.
Assessments will be provided quarterly. Q4 2018 and Q1 and Q2 2019 assessments are available following a recent trial. Q3 2019 assessments will be published on 17 October. The assessments will be available on www.balticexchange.com to subscribers to Baltic Exchange market information services.
The vessels initially assessed are:
Capesize: 180,000 mt dwt built in “first class competitive yard”, 199,000cbm grain, LOA 290m, beam 45m, draft 18.2m SSW. Not ice classed, not scrubber fitted, 5 years old & special survey passed.
Panamax: 82,500 mt dwt built in “first class competitive yard”, 97,000cbm grain, LOA 229m, draft 14.43m. Not ice classed, not scrubber fitted, 5 years old & special survey passed.
Supramax: 58,328 mt dwt on 12.80m draft SSW built in “first class competitive yard”. LOA 189.99m, Beam 32.26m, 72,360 cbm grain, 5 holds/hatches, 4 x 30mt cranes with 4 x 12cbm grabs. Not ice classed, not scrubber fitted, 5 years old & special survey passed.
Handysize: 38,200mt dwt at draft 10.538m SSW, built in “first class competitive yard”, 47,125cbm grain, LOA 180m, beam 29.8m, 5 holds, 5 hatches, 4 x 30mt cranes. Not ice classed, not scrubber fitted, 5 years old & special survey passed.
Baltic OpEx Crew:
Value expressed in USD/Day:
Wages fully loaded (national costs, agency, overtime, standby)
Unions, Dues, ITF
Victualling and domestic provisions
Training, STCW requirements, in-lieu-of-cadets training cost (cadets not in standard complements)
All other Manning expenses other than Insurance
Manager’s Fees relating to crewing, or an apportionment
Baltic OpEx Technical:
Value expressed in USD/Day
Stores: Deck, Engine, Stewards’
Repairs: Deck, Electrical, Engine
Surveys, Flag, Class
Spares, transportation, clearances
Superintendent / technician travel and per diem / fees
Owners’ protective Agents, husbandry fees, launches
All other General Expenses and unrecoverables, other than Insurance
Manager’s Fees relating to technical, or an apportionment
Baltic OpEx Insurance:
Value expressed in USD/Day
Governing principle is inclusion of all cover required to present vessel for worldwide trading within IWL and excluding HRA
Hull and Machinery including Disbursements or Freight Interest Insurance
War and Strikes Risks
Protection and Indemnity including cargo, crew, third parties, stowaways, damage caused by vessel/FFO, pollution, wreck removal
Freight, Demurrage and Defence
Cost of Baltic standard deductible incidents per period, Manager’s Fees relating to managing Insurance, or an apportionment
Anglo-Eastern is a leading, independent, global provider of ship management services, with about 650 vessels under full technical management, over 200 under crew management, and a technical services division that has overseen some 450 new buildings and conversions to date.
Its managed fleet comprises all ship sizes and types, including bulk carriers, container ships, tankers (oil, gas and chemical), ice-class OBO, LPG FSO, semi-submersible heavy-lift carriers, pipe-layers and off-shore construction and support vessels.
Anglo-Eastern is headquartered in Hong Kong and conducts its ship management services through a network of more than 25 offices and specialist centres located across Asia, Europe and the Americas.
It has direct control in the recruitment, training and development of its pool of nearly 28,000 seafarers in India, the Philippines, Ukraine and China.
About Columbia Shipmanagement
Columbia Shipmanagement (CSM) was established in Limassol, Cyprus, in 1978. With over four decades of experience in managing all types of vessels, CSM has become a leading force in its field. With more than 380 vessels (approximately 50 of them Bulk Carriers) under full and crew management, Columbia is today one of the largest independent ship managers world-wide.
Columbia’s core ship management offices are located in Cyprus, Germany, Singapore and China, while two affiliated offices are located in Greece and Germany.
Through its strategic network of owned crewing agencies located in Europe, Russia and Asia, Columbia has direct access to highly qualified and experienced sea-going personnel. Our 14,500+ employees, on land and at sea, form the foundation upon which we have built our range of services from technical, crew and commercial management, to new building supervision, consulting and cruise vessel services.
Columbia is committed to providing its customers with competent, safe and environmentally sound and cost efficient services meeting best industry standards. At Columbia we believe in establishing firm long-term relationships with our clients, partners, and employees, treating each individual with proper respect and dignity. With high retention rates among our employees on-board and ashore, we are able to retain valuable accumulated experience for the ultimate benefit of our clients and their assets.
About Fleet Management
With a 25-year history, 500+ vessels, 20,000+ qualified seafarers and 850+ shore employees, Fleet Management Limited is one of the world’s largest independent third-party ship management companies. For the last 25 years, FLEET has pioneered many of the crewing, safety, and technical standards, which have become benchmarks in the industry.
With a strong compliance team internationally, we observe the industry’s highest standards for classification, flag state, and local environmental regulation. Today, all of our vessels under management are assured by the industry’s highest standards, which include ISO 9001, ISO 14001, OHSAS 18001, ISO 50001 and ISM code compliance certificates from DNV.
Headquartered in Hong Kong and supported by 25 offices in 12 countries, Fleet Management is dedicated to maintaining the asset value of our clients’. We ensure the vessels under our management are kept in optimal condition in terms of mechanics, technology and crew management – and in a state of operational readiness and compliance.
Fleet Management Limited is a proud subsidiary of The Caravel Group Limited – together we are dedicated to providing our clients first-class service with a wealth of knowledge and experience, and equally important, to expressing transparency, commitment, and integrity in our services and philosophy.
- 2020 Baltic diaries now available to order
Baltic diaries and pocket diaries for 2020 are now available alongside other items via the Baltic’s online shop.
- The green gathering
With increasing societal attention levelled at improving the world’s green credentials, it comes as no surprise that the topic of the environment came up over and over again during London International Shipping Week 2019 (LISW19), which this year saw over 200 seminars, functions and meetings. Even on the first day of the event, WISTA UK’s LISW conference (WISTA standing for the Women’s International Shipping & Trading Association) had the environment at the heart of its agenda.
Future fuel mix
Following a keynote speech from University Maritime Advisory Services principal consultant Isabelle Rojon, there was a panel discussion about the International Maritime Organization’s (IMO) emission-free plan for shipping (the body’s 2018 initial strategy confirms the IMO’s commitment to phasing out greenhouse gas, or GHG, emissions as soon as possible in this century as a matter of urgency). Katharine Palmer, global head of sustainability for Lloyd’s Register Marine & Offshore, called for “policy to enable and drive the incentives”, “the commercial environment to reward lower emissions” and “substantial collaborative effort across all maritime stakeholders where everyone has a role to play, so we can design our future, rather than leaving it to others to determine the road ahead for us”. Her organisation sees shipping moving from being an industry where everyone operates on the same fuel to having much more of a portfolio mixture of fuels, though there may be a family of dominant fuels within this.
“Shipping has a number of technologies and zero-carbon fuel choices available to it,” Ms Palmer noted, later saying: “We have been looking at various different pathways, and those pathways use fuels that are derived from biomass and fuels that are derived from renewable electricity such as hydrogen and ammonia, but also pathways that use hydrogen and ammonia that is produced in natural gas.”
Currently, the price spread is too great. Right now, the cheapest zero-carbon fuel in 2030 is two to three times more expensive in comparison to a fossil fuel vessel today. To close the gap, Ms Palmer’s organisation feels that policy intervention and fundamental change is required to lower the dependence on hydrocarbon-based fuels.
The topic of the environment came up over and over again
On the Wednesday of LISW19, IMO secretary-general Kitack Lim didn’t shy away from discussing his organisation’s drive to lower GHG emissions. At the International Chamber of Shipping’s (ICS) 2019 Conference — focused on “Setting Course for 2050” — Mr Lim quickly turned to the topic while delivering a keynote address. According to the IMO boss, the body’s third GHG study in 2012 estimated carbon dioxide emissions from international shipping to be about 800m tonnes, or around 2.2% of world emissions. While the fourth IMO GHG study, set to be presented in 2020, will tell of whether that statistic has changed substantially, the amount will inevitably still be significant, whatever the study reveals.
“Let us be in no doubt: we really need to accelerate our efforts towards the ultimate goal of phasing out GHG emissions from international shipping,” said Mr Lim.
According to the IMO boss, the goals in the strategy will not be realised with fossil fuels alone and it is anticipated to “drive a new propulsion revolution”. He called for making zero-carbon vessels more attractive, as well as directing investments towards innovative sustainable technologies and alternative zero and low-carbon fuels. So said the IMO leader, battery-powered and hybrid ferries, vessels testing biofuels/hydrogen fuel cells, wind-aided propulsion and other ideas are currently being actively investigated.
“The IMO GHG strategy has sent a clear signal to innovators that this is the way forward,” Mr Lim enthused. “However, action needs to be accelerated if its goals are to be achieved.”
A difficult change
Discussing the roadmap in the opening address to the ICS conference, Emanuele Grimaldi, ICS vice-chair and Grimaldi Group’s boss, said that there exist no clear solutions or “silver bullets” that will allow shipping to be easily transformed.
“There will need to be trade-offs, new ways of working, and yes, there will be losers,” he noted, later adding: “The reality is that companies are going to need to place orders in the first half of the next decade in a context of uncertainty about the future. The reality is that we have seen in other sectors success and failure, and we need to learn from this.”
During the gathering, The Lord Adair Turner of Ecchinswell, chair of the Energy Transitions Commission, felt that shipping’s starting point for achieving a zero-carbon scenario involves one key issue and one key benefit. The problem concerns “the fragmentation of the industry: the complexity of owners and operators, short-term contracts”. This, according to Lord Turner, generates what economists describe as a ‘principal–agent problem’ — where one person or entity can make decisions and/or take actions on behalf of, (or which affect) another person or entity — or an issue of coordination, or the question of who possesses incentives to act. However, shipping’s big benefit is that it is regulated and has the IMO, which can set regulations for what should be the design of new ships, how energy-efficient they must be and, eventually, what the price of fuel should be (or whether the fuel must be from zero-carbon sources).
The Baltic Exchange’s International Shipbroking Forum, held in collaboration with shipping news service TradeWinds, featured discussion about the environment too. In a brief panel on regulation and shipping, Brian Nixon, Lavinia Bulk managing director, said that although his company is looking at a very positive slant on “IMO 2020/2030/2050”, “in the short-term, it’s quite a stressful time”. In response, Baltic Exchange chief executive Mark Jackson replied that he believed a common theme emerging is that everybody is beginning to discuss it from the point of view of managing the management risk.
As for Stefan Albertijn, chairman of the Baltic Index Council, he said he felt that any sensible shipowner is thinking about the effect of their actions on the environment. Perhaps the combination of the growing environmental focus in society more generally, plus the attitudes of the changemakers in the maritime sector, are coming to bear. What feels certain is that given the amount of time devoted to the environment at LISW19, it doesn’t look like the green agenda will be disappearing from the industry any time soon.
The Baltic Exchange will hold its next Freight Derivatives & Shipping Risk Management course on October 7 and 8 in UK capital London. More information can be found here.
- BEGS Company Cup 2019
This year’s Baltic Exchange Golfing Society Company Cup will be held on Friday 11 October at West Herts Golf Club.
The event is open to teams of two shipbroking golfers. The best combined Stableford score will be the winner.
The Company Cup format is pretty simple, but has a few minor rules:
- Teams of two, competing in four-balls over one round.
- Stableford scoring system, with the combined score counting to each two-person team.
- Each team does NOT have to consist of employees from the same company, clients/visitors are very welcome.
- Teams can be two principals from the same company or different offices, or a principal and a broker or two brokers.
- There is no limit on the number of teams any one company wishes to enter, the more the merrier.
- Baltic Exchange is sponsoring the hole in one on the Par 3’s, with a main prize of a car and other prizes on the rest
- There will be additional prizes for nearest the pin, longest drive in the rough and longest drive on the fairway.
- Official handicap certificates are not required, but anyone playing off 24 or higher that does not have an official club handicap cannot score more than 30 points.
- This event can contribute as one of the sports for the overall David Bradley Cup winner.
Anyone interested in registering for the Company Cup, please contact James Pendered, it will be on a first-come-first-served basis.
Format (all times are approximate & subject to change)
Noon – Arrival time, bacon roll & coffee
13:15 – Tee off for 18 holes from the first tee
18:30 – Drinks/prize giving during dinner
The cost will be £80/player
Herts WD3 3GG
Telephone: 01923 236484 / Pro Shop: 01923 236866