As Missiles Soar, Freight Rates Soar, too
Missile strikes by the US and UK against Houthi militia in Yemen has brought heightened tensions across the region with disruption to ocean freight shipping set to deteriorate further.At approximately 2.30am (Sanaa/Red Sea time) today, Friday, the US and UK military carried out air strikes on targets in Yemen in response to Houthi militia attacks on merchant ships in the Red Sea, which have totalled 27 since November 19.“We want to see safe, risk-free voyages through the area for vessels and the situation must calm down for that to happen," said Peter Sand, Chief Analyst, Xeneta.
Oil Rises after Houthi Attack on Ship
Oil rose on Tuesday as an attack by the Iran-aligned Houthis on a chemical tanker escalated geopolitical tension in the Middle East, though concerns over excess supply and slowing demand kept a lid on gains.A cruise missile launched from Houthi-controlled Yemen struck a commercial chemical tanker, causing a fire and damage but no casualties in the latest such attack to heighten safety risks for tankers in vital shipping lanes.Brent crude futures LCOc1 for February rose 21 cents, or 0.3%, to $76.24 a barrel by 0915 GMT, while U.S.
Shadow Tanker Fleet Poses New Safety Challenges
Ongoing and new threats posed by the ripple effects of the Ukraine conflict will create challenges to the shipping sector over the next 12 months and beyond, according to insurer Allianz Global Corporate & Specialty SE’s (AGCS) Safety & Shipping Review 2023.Every year AGCS analyzes reported shipping losses and casualties involving vessels over 100 gross tons. During 2022, 38 total losses were reported globally, compared with 59 a year earlier. This represents a 65% decline in…
Black Sea Shipping Rates Soar 20% as Reinsurers Cut Cover
Costs for hiring ships to transport commodities from the Black Sea have risen by more than a fifth since the start of the year, reflecting higher war risk insurance rates, industry sources said.The Black Sea is crucial for the shipment of grain, oil and oil products. Its waters are shared by Bulgaria, Georgia, Romania and Turkey, as well as Russia and Ukraine. Since Jan. 1, when policies are renewed, reinsurers that provide financial protection for insurance companies have added exclusions for ships and planes for Belarus…
Europe Must Shut Ports to Russian Ships, Ukraine President Tells Norwegian Parliament
Norway and the rest of Europe should close their sea ports to Russian ships, Ukrainian President Volodymyr Zelenskiy told the Norwegian parliament on Wednesday."The European Union, and I do hope so Norway, need to introduce the ban on Russian vessels to use European ports for the time being while they are blocking our ports," Zelenskiy said via video link from Ukraine.He added that Ukraine and Norway, Europe's second-largest gas supplier after Russia, had started talks over the…
From Mines to AIS Spoofing, Assessing the Risks to Shipping in the Black Sea
Commercial ships are being advised of the high risk operating in the Black Sea following Russia’s invasion of the Ukraine, with various reports of missile attacks on commercial ship, plus warning of the waters containing mines.According to a press release from the NATO Shipping Center (NSC), there is a high risk of collateral damage on civilian shipping in the northwestern part of the Black Sea, citing several open source reports of civilian ships being hit directly or indirectly…
Invoking Montreux Convention, Turkey Closes Access to the Black Sea
Turkey is calling on all sides in the Ukraine crisis to respect an international pact on passage through the Turkish straits to the Black Sea, Defence Minister Hulusi Akar was cited as saying on Tuesday after Ankara closed access.NATO ally Turkey borders Ukraine and Russia in the Black Sea and has good ties with both. Under the 1936 Montreux Convention, Ankara has the right to limit transit through its straits during wartime.This allows it to curb Russian warships going to the Black Sea.
Shell to Pull the Plug on Gazprom Equity Partnerships
In the latest corporate backlash to Russia's invasion of Ukraine, the Board of Shell plc said it intends to exit its joint ventures with Gazprom and related entities, including its 27.5 percent stake in the Sakhalin-II liquefied natural gas facility, its 50 percent stake in the Salym Petroleum Development and the Gydan energy venture. Shell also intends to end its involvement in the Nord Stream 2 pipeline project.“We are shocked by the loss of life in Ukraine, which we deplore…
