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June 20, 2023

A chief engineer, Denys Korotkiy, has been convicted of multiple charges related to illegal dumping of oily bilge water from the M/V Donald. The evidence presented in court revealed that Korotkiy and others bypassed pollution prevention equipment and discharged the contaminated water directly into the ocean. The company operating the vessel, Interunity Management (Deutschland) GMBH, had already pleaded guilty to maintaining false records. The guilty verdict emphasizes the commitment to environmental law enforcement and holding polluters accountable.

A new report by the International Energy Agency (IEA) predicts a significant slowdown in global oil demand growth and indicates that peak demand is approaching. While global oil demand is projected to rise by 6% between 2022 and 2028, annual demand growth will dwindle, indicating a transition to cleaner energy sources. The transportation sector will play a key role, with the rise of electric vehicles, biofuels, and improved fuel efficiency reducing the use of oil for transport fuels. The report urges oil producers to adapt their investment decisions to ensure an orderly transition.

After over a year of uncertainty, the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU) have announced a tentative agreement in West Coast labor negotiations. The six-year contract covers workers at all 29 West Coast ports, pending ratification. The agreement was reached with assistance from Acting U.S. Secretary of Labor Julie Su. The ILWU and PMA expressed satisfaction with the agreement, acknowledging the efforts and sacrifices made by the workers during the pandemic. The deal brings stability to the U.S. container trade and marks a significant milestone in preserving the country’s supply chain.

A new report by the International Energy Agency (IEA) predicts a significant slowdown in global oil demand growth and indicates that peak demand is approaching. While global oil demand is projected to rise by 6% between 2022 and 2028, annual demand growth will dwindle, indicating a transition to cleaner energy sources. The transportation sector will play a key role, with the rise of electric vehicles, biofuels, and improved fuel efficiency reducing the use of oil for transport fuels. The report urges oil producers to adapt their investment decisions to ensure an orderly transition.

Contrary to expectations, rates and cargoes for giant crude supertankers have experienced a significant surge, with rates climbing by nearly $20,000 a day. The increase in cargoes from the Middle East has surprised traders, and multiple factors have contributed to this bullish trend. Disruption caused by a monsoon in India has delayed vessel return to the Persian Gulf, while strong export demand from the US and Brazil has limited the availability of supertankers in the region. The rise in rates and cargoes highlights the tightness of the VLCC market.

The port of Rotterdam, along with other Dutch ports, faced a cyberattack believed to be orchestrated by pro-Russian hacker groups. The attack, known as a distributed-denial-of-service (DDoS) attack, disrupted the websites of several ports. The Dutch National Cyber Security Center identified Russian and Serbian IP addresses linked to the attacks. The incidents are seen as a response to the Netherlands’ plan to purchase Swiss tanks for Ukraine, with intelligence agencies warning of potential Russian sabotage in the maritime infrastructure.

Singapore, the world’s largest refueling hub, recorded its highest monthly sales of marine fuel in over five years. The sales figures, totaling 4.52 million tonnes, indicate increased vessel calls for bunkering and reflect strong shipping activity. The rise in container and bulker arrivals, particularly to China, contributed to the surge in bunker fuel sales. Singapore’s competitive bunker prices compared to other regional ports in Asia attracted more ships for refueling. The tighter supply situation for very low sulfur fuel oil (VLSFO) in Singapore may narrow the discount versus other ports in the future.

A Kremlin aide has called on the Russian government to pass legislation allowing foreign flagged vessels to use the Northern Sea Route (NSR), which stretches from Murmansk to the Bering Strait. Russia aims to transform the NSR into a new Suez Canal, cutting sea transport times between Europe and Asia. The challenging route, which requires icebreakers, could accommodate around 80 million tons of cargo annually by 2024. Legislation is being developed to regulate the use of the route by foreign commercial and military vessels, creating new opportunities for international logistics amid Russia’s trade downturn with Western countries.

You can read previous issue of ‘Currents’ here.

Disclaimer: ‘Currents’ is an online shipping news service by Earl’s Rock Trading (Pvt) Ltd that reports on the latest developments and trends in the maritime industry. We do not take any responsibility for the accuracy or completeness of the information provided in our news stories or for any opinions expressed by the people quoted in them. Our aim is to provide our readers with up-to-date news and insights from reliable sources. However, we do not endorse or take any responsibility for any actions taken by our readers based on the information provided in our news articles. We also want to make it clear that we do not own any of the images used in our news stories, unless stated otherwise. All images belong to their respective owners, and we use them solely for illustrative purposes. If you are the owner of any image used in our news stories and want it to be removed or credited, please contact us, and we will take the necessary action.