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The Baltic Exchange’s main sea freight index fell to a nearly two-week low on Tuesday as rates across its vessel segments declined.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, shed 53 points, or 2.5%, to 2,061 points, the lowest since July 14.

The capesize index fell for the second straight session, losing 141 points, or 5.4%, to 2,455 points, a near two-week low.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $1,167 at $20,359.

“The biggest headache moving forward will likely come from the faltering iron ore trade, with China’s latest move in establishing a giant mineral resource group to give it larger control over global iron ore pricing,” said George Lazaridis, head of research and valuations for Allied Shipping Research, about capesize rates in a weekly note.

The creation of the China Mineral Resources Group, Lazaridis added, “is poised to create a further loss in bargaining power for global traders as well as those operating within those supply chains.”

The panamax index was down 12 points, or 0.57%, at 2,088 points, snapping a five-session winning streak.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, decreased by $110 to $18,790.

Meanwhile, the first shipments of Ukrainian grain could leave Black Sea ports within days under a U.N.-brokered deal to tackle a global food crisis that has worsened since Russia invaded its neighbor, the United Nations and Ukraine said on Monday.

The supramax index fell by 8 points to 2,071 points, its lowest in nearly a week.
Source: Reuters (Reporting by Deep Vakil in Bengaluru; Editing by Shinjini Ganguli)

The Council of the EU said today that, in an effort to increase EU security of energy supply, member states have reached a political agreement on a voluntary reduction of natural gas demand by 15% this winter. The Council regulation also foresees the possibility to trigger a “Union alert” on security of supply, in which case the gas demand reduction would become mandatory.

“The purpose of the gas demand reduction is to make savings ahead of winter in order to prepare for possible disruptions of gas supplies from Russia that is continuously using energy supplies as a weapon,” says the Council.

As the EU seeks to wean itself from dependency on Russian natural gas, U.S. LNG exporters have been major beneficiaries. Even if the EU succeeds in meeting the goal of a 15% reduction in demand, that is not likely to change.

The U.S. Energy Information Administration (EIA) says that United States became the world’s largest liquefied natural gas (LNG) exporter during the first half of 2022. Most U.S. LNG exports went to the EU and the U.K. during the first five months of this year, accounting for 71%, or 8.2 billion cubic feet per day (Bcf/d), of the total U.S. LNG exports. The U.S. provided 47% of the 14.8 Bcf/d of Europe’s total LNG imports, followed by Qatar at 15%, Russia at 14%, and four African countries combined at 17%.

That 14% figure for Russia is more significant than it might appear, because Russia accounts for some 40% of German natural gas consumption. Germany’s ability to substitute LNG imports for that Russian gas is hampered by the fact that that it currently has no LNG import terminals. As we reported earlier, since Russia’s invasion of Ukraine, Germany has been ramping up its plans to deploy floating LNG import terminals (FSRUs). Now, reports S&P Global, four are planned along with two permanent onshore sites, with the FSRUs able to be deployed much more quickly than the onshore facilities. Germany’s economy ministry is hopeful it can begin operations at two FSRUs — one at Wilhelmshaven and one at Brunsbuttel — before the end of 2022

Will U.S. LNG supply be available to meet the demands of those new terminals?

Compared with the second half of 2021, reports EIA, U.S. LNG exports increased by 12% in the first half of 2022, averaging 11.2 billion cubic feet per day (Bcf/d). According to EIA estimates, installed U.S. LNG export capacity has expanded by 1.9 Bcf/d nominal (2.1 Bcf/d peak) since November 2021. The capacity additions included a sixth train at the Sabine Pass LNG, 18 new mid-scale liquefaction trains at the Calcasieu Pass LNG, and increased LNG production capacity at Sabine Pass and Corpus Christi LNG facilities. As of July 2022, EIA estimates that U.S. LNG liquefaction capacity averaged 11.4 Bcf/d, with a shorter-term peak capacity of 13.9 Bcf/d.

International natural gas and LNG prices hit record highs in the last quarter of 2021 and first half of 2022. Prices at the Title Transfer Facility (TTF) in the Netherlands have been trading at record highs since October 2021. TTF averaged $30.94 per million British thermal units (MMBtu) during the first half of 2022. LNG spot prices in Asia have also been high, averaging $29.50/MMBtu during the same period.

In June, the United States exported 11% less LNG than the 11.4 Bcf/d average exports during the first five months of 2022, mainly as a result of an unplanned outage at the Freeport LNG export facility. Freeport LNG is expected to resume partial liquefaction operations in early October 2022.

Utilization of the peak capacity at the seven U.S. LNG export facilities averaged 87% during the first half of 2022, mainly before the Freeport LNG outage, which is similar to the utilization on average during 2021.

Source: https://www.marinelog.com/legal-safety/shipping/markets/can-u-s-lng-exports-meet-european-demand/

Germany’s SAL Heavy Lift has placed an order at Wuhu Shipyard in China for four firm plus two options of 14,600 dwt heavylift multipurpose (MPP) vessels.

The 149.9 m long ships are each set to have two 800 tonne cranes fitted, with delivery due from the second quarter of 2024 onwards, according to Clarksons Research.

Hamburg-based SAL Heavy Lift, a member of the German shipping and logistics group Harren & Partner Group and the Jumbo-SAL-Alliance, is one of the leading carriers specialised in breakbulk and project cargo, operating a fleet of 30 heavylift vessels.

Financial details surrounding the latest order have not been disclosed.

Source: https://splash247.com/sal-heavy-lift-orders-up-to-six-multipurpose-heavylift-ships-in-china/

Norway’s Kanfer Shipping, Egypt’s Leth Suez Transit and Egyptian Natural Gas Holding Company (Egas) are looking to join forces with commodity traders in order to establish a strategic and competitive liquefied natural gas (LNG) bunkering hub in the Suez Canal by 2025.

Egas has initiated the establishment of a joint venture that will charter the bunkering vessel, take care of the administration, including daily operation, and also purchase its LNG or from other sources to trade it to shipowners and the shipping industry.

Leth Agencies and Kanfer said they are now primarily seeking experienced joint venture partners within bunkering and commodity trading who can take an active part in creating a business model for this “high potential and attractive” project in Egypt.

Egypt’s natural gas resources and liquefaction facilities are said to be one of the key advantages for LNG bunkering, which puts the country in a competitive position against the key LNG bunkering hubs of the world. Egypt has LNG sources in Damietta, IDKU terminal and the FSRU stationed in Ain Sokhna that give flexibility and more opportunities for LNG bunkering in both Port Said and Suez.

“The key LNG hubs of the world must import the LNG to their terminals, which adds considerable cost to the end-users. We are confident that the JV can provide competitive prices to the key ports and hubs such as Singapore and ARA. We believe that this will attract shipowners and influence their decision-making on where they will replenish LNG,” said managing partner in Kanfer, Stig Hagen.

Egas said it is able to allocate a substantial volume of LNG to this growing segment in order to make the shipping industry, Suez Canal and Egypt greener. “This will be an important step for Egypt and attract more business to the Suez Canal,” added Admiral Osama Mounier Mohamed Rabie chairman and managing director of the Suez Canal Authority.

Kanfer noted that as more than 20,000 ships are transiting the Suez Canal annually and all ships have waiting time before the daily convoy commences, they can use the time efficiently to replenish bunkers in Port Said, Suez, or other important ports along the Egyptian Mediterranean coast.

Source: https://splash247.com/kanfer-egas-and-leth-agencies-look-to-establish-suez-lng-bunkering-hub/