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The UK Hydrographic Office (UKHO) has taken a major step on the path to digitalization in the shipping industry: the end of Admiralty paper charts.

Durable, tangible, and with no batteries required for use, the paper chart has been a mainstay of maritime navigation for centuries. Generations of mariners have relied on paper charts for voyage planning and positioning. But the times have changed, and automatically-updating electronic charts have become the default option – especially after the SOLAS mandate for the transition to ECDIS took effect.

On Tuesday, the UKHO announced that it will also phase out global paper chart production by late 2026. Its Admiralty charts are the most widely used paper charts globally, and the decision will affect stakeholders in many regions; however, UKHO says, most mariners have already made the switch to digital.

The agency is winding down paper chart production because its customers are “primarily using digital products and services for navigation” and it has seen a “rapid decline in demand for paper charts.” The decision will allow it to focus on its 18,000-plus electronic charts and other digital products.

“The decision to commence the process of withdrawing from paper chart production will allow us to increase our focus on advanced digital services that meet the needs of today’s seafarers,” said Peter Sparkes, UKHO’s chief executive. “Shipping is moving quickly towards a future underpinned by digital innovations, enhanced satellite connectivity at sea and optimized data solutions, supporting the next generation of navigation. The UKHO aims to be at the vanguard of this digital transition.”

UKHO says that it will work with the UK Maritime and Coastguard Agency, commercial distributors, and other stakeholders to help remaining paper chart customers transition to electronic products by the deadline. “We understand the significance of this announcement, given the distinguished history of the UKHO’s paper chart production and the trust that mariners have placed in Admiralty charts over the generations,” said Sparkes.

UKHO is following in the footsteps of its American colleagues. In 2019, NOAA announced plans to phase out phase out paper nautical chart production by January 2025. The decision marked a sea change for the agency, which has produced America’s paper charts (and charts for much of the rest of the world) for decades. Like UKHO, NOAA is redirecting its resources to focus on the quality of its electronic chart products and to provide larger scale co

It is not quite the end of the paper chart in the United States, however: American seafarers will still be able to order custom-printed charts based on electronic data.

Source: https://www.maritime-executive.com/article/ukho-phases-out-admiralty-paper-charts

The Ocean Voyages Institute has completed its latest transit of the Great Pacific Garbage Patch, collecting 96 tonnes of plastic fishing nets, lines, buoys, trash and other waste from one of the world’s largest concentrations of ocean plastic.

“Keeping our ocean healthy is vital to ocean life and our own health. Our clean up missions give me great hope for the future of our ocean because change is possible.” said Mary T. Crowley, the president and founder of the nonprofit.

Ocean Voyages Institute uses the Kwai, a 130-foot sail freighter, to carry out cleanup missions in the North Pacific. The 2022 mission brings the group’s total to over 692,000 pounds of plastic removed from the ocean since 2009, including 340,000 pounds recovered in 2020 alone.

All images courtesy of Ocean Voyages Institute

“Many of my crew are from the Pacific Islands, and we all do this good work for our children, so they will benefit from healthy oceans,” said Captain Locky MacLean. “Marine areas cover more than two thirds of our planet and are the main component of our life support system here on Earth, absorbing carbon and generating the very air we breathe, they cannot continue to be taken for granted.”

The effort involves contributions from many nations. Kwai is owned by the government of the Marshall Islands; the crew hails from Republic of the Marshall Islands, USA, Kiribati, Fiji, Canada, South Africa, UK and Germany; and the mission collaborates with researchers from the University of Hawaii.

The organization’s ultimate goal is to remove one million pounds of debris from the North Pacific Gyre. It is designing two more purpose-built sailing cargo vessels for this long-term mission, and hopes to raise funds for their construction.

Source: https://www.maritime-executive.com/article/sailing-vessel-kwai-cleans-up-96-tonnes-of-trash-from-the-pacific

The Dutch government has suffered another setback in its already widely criticized plan to use chartered ferries or cruise ships to help alleviate the overcrowding in refugee centers across the country. After initially announcing the plan last week, it has been met with a barrage of critics both from residents and local government to aid organizations, yet at least one of the ships is believed to already be sailing to the Netherlands due to start its role as a floating accommodations center next week.

The local council in the municipality of Zaanstad near Amsterdam today withdrew its permission to dock one of the chartered ferries at their pier. City officials said the 21,500 gross ton ferry, Aurelia could not be accommodated at their facilities. They said the 42-year-old ferry registered in Cyprus would produce “too much nitrogen,” and that under the regulations the port would not be able to handle the pollution coming from the ship. In May, the local council had said it was looking into the idea of accepting a ship to address the housing crisis.

Similarly, the port of Vlissingen had also been suggested as another location for one of the vessels. The southern city near the border with Belgium however this week said that it would not be able to accept one of the vessels. Residents had demanded that the city government reject the ship after the widespread criticism of the plan in recent days.

The Dutch government, however, has called the current situation an asylum crisis. The country has accepted an estimated 40,000 refugees from Ukraine in addition to other nationalities that have sought refuge in the country. Reports indicate that the centers are overflowing across the country unable to provide shelter for some of the new arrivals. One report said people are sleeping outside at least one center on the lawn with no shelter from the elements.

Last week, Eric van der Burg, a justice minister who is charged with dealing with refugees, was quoted in the media saying that they had come up with the idea of chartering three vessels, which he referred to as cruise ships, to temporarily house a few thousand of the refugees. Asked where the ships would dock he said that was still under discussions suggesting that the ships might be anchored offshore. He said they were exploring using shuttle services to transport the residents to shore but still aid groups compared the plan to imprisoning the people. An aid group described the idea of placing asylum seekers offshore as absurd.

The minister said last week that the government had already chartered the vessels and that they were heading to the Netherlands. He said they had acted quickly to ensure the availability of the vessels. The AIS signal for the one vessel that was identified for the program, the Aurelia, shows that it is docked in Marseille, France but was expected to depart for Spain and presumably continue on to the Netherlands.

In April, city officials in the Netherlands chartered a Holland America Line cruise ship as one of their first temporary housing locations along with two river cruise ships from AmaWaterways. The charter for the Holland America Volendam was extended through the summer but the cruise line reports the vessel will not extend the charter and will return to cruising in late September.

Other countries have also turned to the use of ferries to accommodate some of the influx of people. Estonia chartered a ferry in the spring and recently another one arrived in Scotland. Groups in Scotland also criticized the effort for the small size of the cabins, but the shipping company responded by saying that the people accommodated aboard would also have the use of the lounges and public spaces. Estonian officials in the spring said the ships worked well with the public spaces and meeting rooms providing the ability to provide counseling and services aboard the ship and the cafeterias or restaurants made it possible to provide basic meal services.

Source: https://www.maritime-executive.com/article/dutch-plan-to-use-ferries-to-house-refugees-suffers-setbacks

The BIMCO Emission Trading Scheme Allowances Clause has been published with the aim of allowing owners and charterers to allocate responsibility for vessels complying with, inter alia, the EU’s emissions trading scheme (ETS). The application of the EU ETS to shipping is still under discussion but expected to take effect from either 1 January 2023 or 2024.

Further to our update of 31 May 2022, BIMCO’s Emission Trading Scheme Allowances Clause for Time Charter Parties 2022 has been published (the ETSA Clause). It is set out in full below and is available from BIMCO’s website along with its guidance notes.

The ETSA Clause has been drafted with the EU’s ETS specifically in mind, as it will likely be the first scheme that will apply to shipping. The clause will also be applicable to other schemes that take effect. There are several such schemes under development, for example, in China, Japan and the UK.

In this article, we build on our previous general commentary, outline the scope of the ETSA Clause and mention briefly some practical considerations for owners and charterers.

Scope

The ETSA Clause governs parties’ rights and obligations in relation to any applicable “Emission Scheme”, which is defined as a “greenhouse gas emissions trading scheme … imposed by applicable lawful authorities that regulate the issuance, allocation, trading or surrendering of Emission Allowances.”

The broad scope of the clause ought to ensure that it remains relevant as more schemes are implemented to target carbon emissions, but also any other greenhouses gases.

Rights and obligations

The application of an ETS to shipping will vary, and there are many different ways in which the compliance obligations could be imposed. Variables include – who is to report emissions to the ETS authority, how the reported data is to be verified, and who is responsible for purchasing and surrendering allowances. As an example, under some schemes a vessel manager may be responsible for measuring and reporting, in others it may be owners, and in another it may be the party making commercial decisions about the vessel’s employment, which, depending on definitions, could be owners, a pool manager, or the Charterer.

As there is no one solution to these questions, and the ETSA Clause is intended to be capable of broad application, it contains no general provision stating how the parties ought to comply with their individual obligations. Thus, it is likely that each party will have to comply with the regulations as imposed on them. Some parties may wish to include appropriate wording and expressly address circumstances where all or some of a party’s compliance may be outsourced to third parties.

Cooperation

Sub-clause (a) obliges the owner and charterer to “co-operate and exchange all relevant data and information in a timely manner to facilitate compliance with any applicable Emission Scheme and enable the Parties to calculate the amount of Emission Allowances in respect of the Vessel…”. The aim here is to ensure that no matter how an ETS is applied, one or the other party can comply.

Although “soft” types of obligations, such as a duty to “co-operate”, and “in a timely manner”, do not always help dispute resolution, their flexibility is necessary given the broad scope of the clause. As emissions trading schemes and reporting systems mature, and where perhaps a vessel is agreed to be traded only within certain known ETS areas, the parties may wish to include more specific annexes defining precise documentation and timeframes that may be required within those trading areas.

Source: GARD

Monitor and report emissions

Sub-clause (b) obliges owners to monitor and report the relevant data to an “independent verifier”. This assumes there will be an obligation on Owners to do this, which, as suggested by the BIMCO guidance notes, is likely influenced by the EU and the UK models. However, it may not be, in fact, applicable to all emissions trading schemes around the world. The parties may wish to consider revising the wording to a more general obligation to monitor and report the relevant data “as required by, and in accordance with, the applicable Emission Scheme.” with, potentially, a right to appoint jointly a neutral party to verify the data and/or the calculations.

Allowances

As BIMCO’s guidance notes explain, sub-clause (c) is the main provision concerning accounting for the emission allowances between the parties. There is an obligation on charterers to “provide and pay for the Emission Allowances…”. This is to be done by charterers making the transfer within 7 days of owners notifying charterers of the quantity of emission allowances for the previous month. The parties will therefore have to maintain their own separate accounts for the allowances. As expected, charterers are entitled to set-off in respect of any off-hire periods which, in the case of disputed off-hire periods, adds to owners’ overall credit risk.

Suspension for breaches

If Charterers fail to transfer “any of the Emission Allowances…” [emphasis added – noting lack of any express de minimis] as required by the clause, sub-clause (d) gives owners “the right to suspend the performance of any or all of their obligations…until such time as the Emission Allowances are received in full by the Owners…”. A safety mechanism against a wrongful suspension of service appears to be built into the 5 days’ notice that needs to be served on charterers prior to suspending. Nonetheless, in practice, suspending service of a vessel comes with risks – including potential claims under bills of lading and further exposure by owners to credit risk.

Some owners may wish to explore additional wordings where the emission allowances are to be put into an escrow account by charterers in advance based on reasonable pre-estimates or the quantity of Charterers’ bunkers on board. The escrow account could also be used to hold the emission allowances in the event of disputed off-hire periods, pending settlement, a judgment, or an arbitration award.

Conflicting provisions

Starting with the words “[n]otwithstanding any other provision in this Charter Party…”, the clause is designed to take priority over any other conflicting provisions.

In recent months, we have seen amendments being made to standard form charters and inclusion of references to reimbursement of charges, costs and/or fees that owners may incur in relation to compliance with environmental regulations as a result of charterers’ instructions. We can understand the aim of such clauses, particularly when charterparties were being agreed at a time with no standard published clauses to cover environmental costs. When using an ETS allowance clause, parties should ensure that the intended priority of any negotiated terms is made clear to avoid arguments over conflicting provisions.

ETS – EMISSION TRADING SCHEME ALLOWANCES CLAUSE FOR TIME CHARTER PARTIES 2022

Notwithstanding any other provision in this Charter Party, the Owners and the Charterers (the “Parties” and each individually a “Party”) agree as follows:

“Emission Allowances” means an allowance, credit, quota, permit or equivalent, representing a right of a vessel to emit a specified quantity of greenhouse gas emissions recognised by the Emission Scheme.

“Emission Scheme” means a greenhouse gas emissions trading scheme which for the purposes of this Clause shall include the European Union Emissions Trading System and any other similar systems imposed by applicable lawful authorities that regulate the issuance, allocation, trading or surrendering of Emission Allowances.

(a) The Owners and the Charterers shall co-operate and exchange all relevant data and information in a timely manner to facilitate compliance with any applicable Emission Scheme and enable the Parties to calculate the amount of Emission Allowances in respect of the Vessel that must be surrendered to the authorities of the applicable Emission Scheme for the period of the Charter Party.

(b) The Owners shall monitor and report the relevant greenhouse gas emissions of the Vessel for verification by an independent verifier in accordance with the applicable Emission Scheme.

(c) (i) Throughout the Charter Party period the Charterers shall provide and pay for the Emission Allowances corresponding to the Vessel’s emissions under the scope of the applicable Emission Scheme:

(1) Within the first seven (7) days of each month, the Owners shall notify the Charterers in writing of the quantity of Emission Allowances for the previous month; and

(2) No later than fourteen (14) days prior to the expected date of redelivery the Owners shall notify the Charterers in writing of the estimated quantity of Emission Allowances for the final month or part thereof.

(ii) The Owners’ notifications in subclause (c)(i) shall include the relevant calculations and the data used to establish the quantities.

(iii) Within seven (7) days of notification under subclause (c)(i), the quantity of Emission Allowances notified by the Owners above shall be transferred by the Charterers and received into the Owners’ nominated Emission Scheme account. If the estimated quantity of Emission Allowances for the final month or part thereof is higher or lower than the actual quantity calculated by the Owners as at the time and date of redelivery, any difference in Emission Allowances shall be transferred by the Charterers or returned by the Owners, as the case may be, and received into the nominated account of the receiving Party within seven (7) days of written notification from that Party.

(iv) During any period of off-hire, the Charterers shall have the right to offset against any Emission Allowances due or require the Owners to return a quantity of Emission Allowances equivalent to the emissions that the Charterers would otherwise have been responsible for, had the Vessel remained on hire.

(d) If the Charterers fail to transfer any of the Emission Allowances in accordance with subclause (c), the Owners shall, by giving the Charterers’ five (5) days’ notice, have the right to suspend the performance of any or all of their obligations under this Charter Party until such time as the Emission Allowances are received in full by the Owners. Throughout any period of suspended performance under this subclause, the Vessel shall remain on hire and the Owners shall have no responsibility whatsoever for any consequences arising out of the valid exercise of this right. The Owners’ right to suspend performance under this Clause shall be without prejudice to any other rights or claims they may have against the Charterers under this Charter Party.
Source: GARD

IMO has contributed to the next steps to enhance safety and energy efficiency of domestic passenger ships in the Philippines. A team of experts* undertook a field visit to Manila, Iloilo and Cebu, the Philippines (3-9 July) to see up close how the safety system in the Philippines operates.

The team were able to observe and understand actual operations of domestic passenger ships and their interface with port operations and the regulatory authorities. They were also able to scrutinize the different types of passenger ships which operate in the Philippines, particularly the traditional wooden bancas and redesigned and modernized Fibre Reinforced Plastic (FRP) boats.

Meetings were held with officials from the Maritime Industry Authority (MARINA); the Philippine Ports Authority (PPA); the Philippine Coast Guard (PCG); and faculty members the University of Cebu and the University of the Philippines to see how to build local expertise.

The field visit identified the need:

for support to create databases for the registration of ships, for the storage of data on safety inspections, and for accident investigation, among others.
to study the ship design of the banca and see how to make it safe and fit for purpose.
to look into the design of modernized banca boats.
to improve capacity for accident investigation and make use of the lessons learned from these investigations to improve safety.
for capacity building for the preparation, implementation and enforcement of safety regulations.
to build local expertise, particularly on maritime safety.

The field visit was the next step in a year-long US$354,250 project funded by the World Bank Group (WBG), the International Finance Corporation (IFC) and IMO’s Integrated Technical Cooperation Programme (ITCP).

* Maritime safety and energy-efficiency consultants; specialists from the World Bank; and the IMO Regional Coordinator for East Asia

Source: https://www.imo.org/en/MediaCentre/Pages/WhatsNew-1736.aspx

The port of Venice and Italian authorities continue to seek a solution to the challenges of accommodating cruise ships while also honoring their commitment to ban large ships from the sensitive Venice Lagoon and fragile canals. In a controversial move, the port for the first time, last weekend approved a test of anchoring a large cruise ship outside the lagoon and tending passengers ashore for a day’s long visit.

Norwegian Cruise Line received permission from port officials to anchor the 93,500 gross ton Norwegian Gem near Venice on Saturday, July 23 on the last day of a 7-day cruise in the Eastern Mediterranean and Greek Islands. The cruise ship, which reportedly traveling with approximately 1,500 passengers, arranged for three excursion boats from Venice to shuttle passengers to the city center.

Last year, Italian officials ordered a ban on all large cruise ships from entering the canal and traveling to the passenger terminal after years of protests by environmentalists and conservationists who contended the waves from the cruise ships were damaging historic buildings. Venice in recent years has been experiencing increasing flooding, especially at high tides made worse by the wake from large ships. To reach the cruise ship terminals, vessels were required to sail past historic St. Mark’s Square.

Cruise lines were told that their ships could divert to the nearby industrial port of Marghera, which however lacks facilities for cruise passengers. Many of the cruise lines, including Norwegian Cruise Line, opted instead to begin and end their cruises in the port of Trieste, which has terminal buildings but is a longer bus ride to reach Venice.

Under the pilot tested with the Norwegian Gem, embarkation and disembarkation for the cruise continues to happen on Sundays in Trieste, while on Saturday they made a port call on the last full day of the cruise so that passengers could tour Venice. This approach only works for cruise ships making port calls and not for homeporting cruises.

Critics however were quick to reject the test. Simone Venturini, the city’s tourism councilor told local reporters, “It’s not the type of tourism we want for the city.” He represents one side of the argument that seeks to focus on tourists that visit the city for days and stay in hotels. Venturini has warned against what he calls “hit and run” tourism.

The cruise lines said that they were left without a solid alternative when Italy suddenly announced the ban last July. At the time, Italy said it was requesting proposals for a new cruise terminal near Venice that would provide facilities while meeting the objective of keeping the large ships out of the local waterways and canals. The cruise industry points out that it will take years for the new facility to be developed.

Starting in 2023, Venice also will impose a daily fee for all visitors to the city. The cost for tourists will vary based on the number of people booked to visit the city with officials saying it should help to control crowds and provide an important source of revenue for the maintenance of the city. In 2019, they calculated that 19 million people visited the city with as many as 80 percent staying only for a single day.

The efforts at managing tourism are continuing to spread in many popular destinations around the world. In 2020, residents of Key West voted to ban large cruise ships with controls on the number of people that could come to the city each day aboard the ships, only to have the state’s governor retroactively override their vote. In Bar Harbor, Maine residents are now demanding the town council also put limits on the daily number of cruise victors, while in 2022 French Polynesia imposed restrictions to limit cruise ships to certain ports.
Source: https://www.maritime-executive.com/article/venice-tests-tendering-cruise-passengers-to-permit-large-ships-in-port

Two of the U.S. Coast Guard’s newest fast response cutters made an unusual visit yesterday, July 25, arriving in Beirut, Lebanon for a scheduled port visit. The port calls mark their arrival to the Middle East after departing the United States and transiting the Mediterranean Sea as part of an ongoing strategy between the Navy and Coast Guard to coordinate operations.

Fast response cutters USCGC John Scheuerman and USCGC Clarence Sutphin Jr. are the newest additions to a slate of Coast Guard ships supporting the U.S. 5th Fleet from Bahrain. Both of the vessels will be homeported in Manama, Bahrain replacing aging Island-class patrol boats. The Scheuerman was commissioned in February in Tampa, Florida as the 46th Sentinel-class fast response cutter and the fifth of six fast response cutters assigned to the Middle East mission. Her sister ship Sutphin was commissioned in April in New York City.

“The John Scheuerman crew is excited to begin operations in U.S. 5th Fleet where we will have the opportunity to collaborate with our partners in the region,” said Lt. Trent Moon, commanding officer of Scheuerman. “I am extremely proud of this crew and they have proved that we are ready for the opportunities ahead.”

While in Beirut, crewmembers will meet with Lebanese Navy counterparts on subjects related to shipboard operations, safety, and damage control. Coast Guardsmen will also participate in cultural exchange opportunities planned ashore.

The Sentinel-class cutters are the final two of six that are overseen by Patrol Forces Southwest Asia, the Coast Guard’s largest unit outside of the United States. The ships are forward-deployed to U.S. 5th Fleet to help ensure maritime security and stability across the Middle East. The Patrol Force was established 20 years ago in support of Operation Iraqi Freedom and continues to be a vital part of the operations in the region. In May 2021, two USCG patrol boats were part of a 5th fleet exercise when they were harassed by vessels from the Iranian Islamic Revolutionary Guard Corps Navy. The USCGC Maui fired warning shots at the Iranian vessels when they came within 150 yards of the cutter while it was underway. Last month, the Navy reported that one of the USCG patrol boats completed a heroin seizure in the Gulf of Oman during one of its regular patrols.

“The crew and I are thrilled to arrive in Lebanon en route to our new operating station,” said Lt. David Anderson, commanding officer of Clarence Sutphin Jr.

Measuring at 154-feet, the fast response cutters have a flank speed of 28 knots, C4ISR suite (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance), and a stern launch and recovery ramp for a 26-foot, over-the-horizon interceptor cutter boat. The Navy also noted that the new cutters feature advanced communications systems and improved surveillance and reconnaissance equipment.

The U.S. 5th Fleet operating area includes 21 countries, the Arabian Gulf, Gulf of Oman, Red Sea, parts of the Indian Ocean, and three critical choke points at the Strait of Hormuz, Bab al-Mandeb, and Suez Canal.

Source: https://www.maritime-executive.com/article/new-uscg-cutters-arrive-in-lebanon-for-middle-east-deployment

Cyber-attacks on one of the world’s busiest ports have nearly doubled since the start of the Covid pandemic.

The number of monthly attacks targeting the Port of Los Angeles is now around 40 million, the port’s executive director Gene Seroka told the BBC.

Los Angeles is the busiest port in the western hemisphere, handling more than $250bn (£210bn) of cargo every year.

The threats are believed to come mainly from Europe and Russia, and aim to disrupt the US economy, Mr Seroka said.

“Our intelligence shows the threats are coming from Russia and parts of Europe. We have to stay steps ahead of those who want to hurt international commerce,” he told the BBC’s World Service.

Seaports move billions of dollars in goods every year, making them a unique target for cyber-criminals.

They face daily ransomware, malware, spear phishing and credential harvesting attacks, with the aim of causing as much disruption as possible and slowing down economies.

Teaming up with the FBI
The Port of Los Angeles is now working with the Federal Bureau of Investigation’s cyber-crime team to prevent attacks and improve cyber-security.

The port has invested millions of dollars in cyber-protection, developing one of the world’s first Cyber Resilience Centres, which is part of the FBI.

“We must take every precaution against potential cyber-incidents, particularly those that could threaten or disrupt the flow of cargo,” said Mr Seroka.

The Cyber Resilience Centre provides enhanced intelligence gathering and heightened protection against cyber-threats within the maritime supply chain.

It is a hub for the port to receive, analyse and share information with those who operate on the dock, such as cargo handlers and shipping lines.

Supply chain blockages
During the pandemic global supply chains slowed down as lockdowns closed factories and workers were forced to stay at home.

The strain on supply chains has since eased, Mr Seroka said. In January 2022 there were 109 container ships queuing for more than two days to get into the Port of Los Angeles. Today there are around 20 waiting to dock.

But Mr Seroka believes the blockages won’t clear completely until 2023. “There’s so much cargo coming in and not enough space,” he said.

“The past two years have proven the vital role that ports hold to our nation’s critical infrastructure, supply chains and economy. It’s paramount we keep the systems as secure as possible,” he added.
Source: BBC

The Baltic Exchange’s main sea freight index slipped on Monday over declining rates in the capesize vessel segment.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, was down 32 points, or 1.5%, at 2,114 points.

The capesize index lost 100 points, or 3.7%, to 2,596 points, its lowest since July 11.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $836 at $21,526.

Meanwhile, iron ore futures soared, extending a rally spurred by hopes of an economic rebound for top steel producer and consumer China in the third quarter, and support for the country’s troubled property sector.

The panamax index was up for the fifth straight session, gaining 7 points, or 0.33%, at a two-week high of 2,100 points.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, increased by $62 to $18,900.

Top exporter Ukraine’s grain shipments in the first 24 days of July, the first month of the 2022/23 season, were down 39.5% year on year at 1.08 million tonnes, the agriculture ministry said.

However, Ukraine said it hoped a U.N.-brokered deal aimed at easing global food shortages by resuming grain exports from the Black Sea region would start being implemented this week.

The supramax index fell by 1 point to 2,079 points, snapping four sessions of gains.
Source: Reuters (Reporting by Deep Vakil in Bengaluru; Editing by Shailesh Kuber)

The dry bulk market could be entering a more bearish period in the coming weeks. In its latest weekly report, shipbroker Allied Shipbroking said that “it is without question that the dry bulk sector has been on a gloomy path these past few months or so, with the main benchmark freight figures being under pressure and losing considerable ground. On the other hand, even during a booming market regime, it is still normal to expect to see time intervals in which the market corrects. The important question to answer is as to when a periodical correction means more than the very word “periodical” denotes”.

According to Mr. Thomas Chasapis, Allied’s Quantitative Analyst, “when the market is feeling considerable pressure, downside risk is automatically on the rise as well. The graph below tries to give an indication of this with the use of the technical indicator Ulcer Index (UI). UI captures the depth and the duration in the correction of a price from previous highs. The heftier a correction is and the longer it takes to recover, the higher this metric is sustained. It is considered “superior” to other volatility metrics, given that it accounts only for negative volatility and increases in value through price depreciation”.

Chasapis added that “other classic statistical metrics like standard deviation can appear more confusing from time to time when trying to capture a rising risk environment (higher volatility), when the market can actually be quite bullish. Getting back to the graph, we calculate the UI for all benchmark dry bulk indices, and we extended the analysis from the start of the previous year. It is not the first time that this indicator prevails inflated for all separate size segments, but at this point, we have relatively stronger signs of downward resistance, with the market seemingly unable to recover, while constantly lagging well behind its moving 14-day highest value”.

Source: Allied Shipbroking

“The above technical analysis does not suffice to argue any bearish momentum within the dry bulk market. It is more of an indication to understand the fact that we may well be entering into a riskier market regime in the near term. At the same time, it is worth mentioning that what is shown by this graph is that this won’t be a privilege unique to the bigger sizes. Moreover, as the cost of borrowing is already in a transitional period towards higher levels, does it not automatically mean that the market’s risk has become more ‘expensive’ as well? “, Allied’s analyst concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide

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