SeaSearch

The parties should consider what is to happen if the WAPS breaks down or malfunctions. This will likely require the ship to burn more fuel to continue the voyage, or for the vessel to proceed at a slower speed to achieve the same consumption. The charterparty should clarify which party is to bear the cost of the additional fuel burned or time taken. It should also set out whether the breakdown or malfunction is an off-hire event and if so, how it should be calculated. Another alternative to off-hire could be to have two rates of hire; one for when the system is in use and another for when it is not available for certain agreed reasons. Also consider what rights the owners or charterers may want to have as regard performance during a period of breakdown. For example, if the propulsion system was expected to reduce fuel consumption by 10% in certain conditions, should owners have the right to reduce speed in order to achieve the same consumption? - Jade Park

[A] lot could happen to threaten the system, both at a political and a commercial level. Many of the risks are external – but there could be internal threats as well – further consolidation of the market, either through failure or merger - and tensions brought about by differences in the way that shipowners operate. The rise of the dark fleet could prove to be an omen that combines both those elements. And then there’s the possibility of an overspill call – or just the threat of one; that could have implications for the levels of cover offered and raise questions as to the robustness of the overspill mechanism. - Marsh's John Trew speaking to Chloe Taylor

Stuart Nicoll of Maritime Strategies International said the current expansion is different from two decades ago when it was at a much larger scale and seemingly uncoordinated, with many small shipyards either being built or switching focus to the international markets. “This time there are fewer players and two clear trends — resurrection/reactivation and a focus on a few large yards, backed by established players rather than a hotchpotch of small/new entrants,” he added.

Nicolas Ledoux, CEO of Arcadis France, which is leading the project, said: “The Société du Canal Seine-Nord Europe will not only enable a modal shift from the roadway to the river but will also create added economic, logistical, agricultural, and climatic value for the territories it crosses through.

“Maybe it’s something we’ll consider at some point,” Hvid said of a final consolidation, acknowledging, “I know it’s a bit of an unusual structure where we have two listed companies essentially invested in the same underlying business. But for now, I think it gives us added flexibility. We have two strong balance sheets, and in this market, having one strong balance sheet is always a great thing, but having two is arguably even better.” Ken Hoexter countered: “I think it harkens back to the days of a lot of concern about the daughter companies being the controlled entity and having no ability [to make decisions]. I mean, look at the stocks,” he said, referring to the fact that shares of Teekay Corp were up double digits early Thursday on the news of the related-party management sales, whereas Teekay Tankers’ shares were down low single digits.

“Operating expenses now provide a near floor, preventing rates from dropping even further. With position lists at their highest level of the year, owners face one of the toughest rate environments in recent memory,” said Breakwave Advisors. It said that there are “reports that Chinese charterers increasingly favour domestic vessels”, which is “diminishing chances of a near-term rebound”. “This shift in preference by Chinese charterers has reduced options for international owners, adding opacity to rate-setting as large oil traders wield greater influence.”

With governments concerned about storing large volumes of weapons on land, floating armories quickly became an essential service. “In the early days, security teams and weapons would be on board but” as they approached land “the team would throw weapons overboard” to avoid violating local laws, said Corey Ranslem, CEO at Dryad Global - Maritime Risk Intelligence Technology. “Floating armories are much easier.”

"A green profile is essential for modern companies," Morten Thomas Jacobsen of Green Marine emphasises. "Large corporations won’t approve you as a vendor without one, backed by hard data on your environmental savings. Simply changing office light bulbs isn’t enough - your green initiatives must relate directly to your core business, which is shipping."

“The weather and the Panama Canal are really the two most important things,” said Dorian LPG chief commercial officer Tim Truels Hansen. “We have very warm weather in the in the east right now, so the urgency for stocking up for the winter has not really started yet, but that could change very quickly,” said Hansen. According to Hansen, if sentiment changes and Asian demand increases, the arbitrage will “open up” even if US prices also rise.

Canada's top 3 ports are now for all intents and purposes, closed leaving poor Port Halifax to pick up the slack. It won't take long for this port to get buried. The dwell times here were already ballooning thanks to the slowdowns in Port de Montreal / Port of Montréal. And since Port of Los Angeles and Port of Long Beach have been dealing with record peak volumes and their own escalating dwell times, carriers had lowered quite dramatically the rates for routings to and through the PNW. - Stephanie Loomis