The shipping industry by its nature encompasses national and international entities. Every voyage takes account of various factors such as the oil price, currency fluctuation, weather and various trade news that inherently affect the industry on a massive scale regarding routes, time efficiency and cost. Here is a roundup of the most relevant news of the week.
China plans to increase its navigation through Arctic waters to link China and Europe, a route estimated to shorten the Asian-European journey by nine days. Polar warming in the Arctic is redrawing the global shipping lines that could cut costs of the voyage by shortening the time at sea.
Also, operating costs such as crew wages, repairs and maintenance and drydocking are expected to rise by 2.3%, 2.4% and 2.3% respectively over the course of next year according to the latest survey by international accountant and shipping consultant Moore Stephens.
Preparations for the construction of an ice-free, deep-water harbour have started on the Northeastern point of Iceland, which could serve as the hub for Arctic shipping and petroleum activity. The Icelandic authorities and the engineering company Elfa and the German company Bremenports are cooperating to build this hub that would serve as a base port for oil and gas operations, a hub port for trans-Arctic shipping, and a service port for both offshore petroleum activity and Arctic shipping. It also plans to include LNG bunkering facilities and a search and rescue base.
Additionally, Rotterdam, Europe’s largest port has increased its volume of cargo by 5.4% in the first nine months of this year, due to a surge in the handling of crude oil and oil products in response to the drop in gas price.
In Vietnam, the coal mining company Vinacomin is set to increase its coal shipment to 20m tonnes by the year 2020.
A recent report released by ReCAAP revealed that armed robbery and maritime piracy continue to rise in Asia. There were a total 161 reported incidents of piracy and armed robbery reported in the first nine months of this year, which equates to a 25% rise of such incidents compared to the previous year. This has lead to increased operating costs due to changes in routes or increased security and insurance premiums .
Last year, UAE was titled the world’s sixth largest oil producer and the second largest producer of petroleum and other liquids in OPEC. Since further prospects of oil discovery are low, UAE is now relying on Enhanced Oil Recovery (EOR) to increase its production by 30 percent by the year 2020.
The Australian east coast port is building a new capsize coal terminal. This project when completed would henceforth allow considerably larger vessels to access the port of Gladstone with ease.
Brazil is set to surpass its 2013 tonnage record as favourable exchange rates have lead to spikes in exports.
In East Africa, Tanzania has begun to build the largest port in the coastal resort of Bagamoyo.
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