• 2020 July 15 11:17

    SMM offers a market overview

    SMM, the leading international maritime trade fair, that had to be rescheduled due to the coronavirus pandemic offers a market overview.

    The Covid-19 pandemic has turned the world economy on its head. “The recession this year will likely be more severe, and recovery in 2021 will be slower than we anticipated two months ago,” says Gita Gopinath, chief economist at the International Monetary Fund (IWF). She believes the global economy will shrink by nearly five per cent. The maritime industry will be hit especially hard: The global lockdown disrupted major supply chains. Maersk, the industry leader, saw container transports decrease by at least 15 per cent during the second quarter.

    SMM did not escape the effects of the coronavirus either: Holding an event with more than 2,000 exhibitors and around 50,000 visitors as early as September was simply inconceivable. The leading international maritime trade fair had to be rescheduled for 2 to 5 February 2021. But the industry’s response to the postponement has been affirmative: “We can gladly say that about 90 percent of the exhibitors for SMM 2020 will also be participating at SMM 2021,” said Claus Ulrich Selbach, Business Unit Director – Maritime and Technology Fairs & Exhibitions at Hamburg Messe und Congress (HMC), adding: “Together we will overcome this crisis.”

    Seeing many countries reopen gradually is encouraging. China's economy is stabilising, and many countries are reopening their borders. But all that does not constitute a return to normality: In many emerging and developing nations the pandemic hasn't even reached its peak yet. A situation marked by uncertainties, and an enormous challenge to the maritime industry.

    "We know we cannot predict the future. But we can try to prepare for changes that are clearly ‚on the cards’,” says Martin Stopford, President of Clarkson Research. “Not preparing can be riskier and more expensive than the ‚safe’ option and doing nothing," the shipping industry analyst continues. The coronavirus crisis forces the maritime sector to open up to new ways of operating, he adds. Innovative digital products are being developed and deployed in record time. "The pandemic has accelerated digitalisation in the industry, advancing it by half a decade," says Knut Ørbeck-Nilssen, CEO of the classification society DNV GL – Maritime. "The crisis has the potential to trigger many innovations and new ideas throughout the entire maritime world, ultimately leading the sector to a renaissance." DNV GL, the main sponsor of SMM, is a pioneer of remote digital surveys and the use of digital twins and data analytics. This also benefits “green" shipping. At the gmec, the global maritime environmental congress, and the Maritime Future Summit during SMM next February, experts will discuss how the industry can utilise this technology boost to advance the development of sustainable propulsion solutions. The coronavirus has lent new urgency to the motto of the leading international maritime trade fair: ‘Driving the maritime transition’.

    Being well prepared is half the battle, says Martin Johannsmann, chairman of VDMA – Marine Equipment and Systems and CEO of SKF: "We are generally in good shape in the sector. That paid off in the corona crisis. We very quickly learned how to respond to the pandemic." Production continued nearly without interruption, and orders could be completed. On the other hand, German suppliers are living off a 3.4per cent increase in orders received during the past fiscal year.

    The current, noticeable restraint of buyers is cause for concern in this segment. Klaus Deleroi, CEO of the ship gearbox specialist Reintjes, is therefore hoping for support from the Federal Government. One billion euros has already been earmarked for a ship replacement programme as well as digital projects, cleaner ships, LNG bunkering barges and portside electricity installations.

    A look at the global order book reveals that shipyards have been hit hardest by the crisis. Even before the coronavirus, the global order book had shrunken to a low 13 million GT (2009: 30 m GT). The cruise industry in particular, until recently the envy of the maritime world, is facing turbulent times. To avoid financial distress, MV Werften shipyards, owned by the Malaysia-based Genting group, have received 175 million euros of government emergency relief. Germany’s government-owned KfW bank has supported Meyer Werft shipyards with 200 million euros. The market leader in the cruise segment is not expecting any new orders between now and 2023. Current newbuilding projects are being delayed to avoid employment gaps. As for the cruise ship operators, they'd rather reduce their fleets than order new ships at the moment. "It is very likely that some ships in the market will be scrapped," says Carnival CEO Arnold Donald. The world's 400 cruise ships have been on involuntary holidays for nearly 4 months. The result for the segment leader, Carnival, is a monthly bill of US$1 billion. Some early excursion attempts – with significantly reduced passenger numbers and a strict hygiene concept – where launched recently by the Norwegian operator Hurtigruten. The million-dollar question, says CEO Daniel Skjeldam, is when normal operations will finally be able to resume. Even "Cruises to Nowhere", trips without going ashore anywhere, are being contemplated. One hopeful sign for the cruise segment is the constant flow of incoming bookings for the next cruise season.

    Around the world, crews on board merchant and cruise ships are hoping that travelling restrictions will soon be lifted. "In some cases seafarers have been kept on board their ships for months beyond their original contracts. They are directly affected by the failure of governments around the globe to act, and the lack of coordination between them," says Estelle Brentnall, Head of Maritime at the European Transport Workers' Federation (ETF), voicing criticism. She demands: "Let them go home!" Shipowners are doing what they can to find a solution. Alfred Hartmann, President of the German Shipowners' Association VDR, describes these efforts: “For example, several weeks ago we joined hands with the International Maritime Organisation (IMO), providing governments around the world with a detailed procedure to enable safe crew exchanges during the coronavirus crisis."

    Many acts of communication, both private and business-related, are currently handled online; but virtual interaction is hardly a replacement for personal, face-to-face meetings. "You can meet the whole world on the Internet, but it is not the same as being physically at SMM were all members of the shipping community join to network and discuss the key topics," says BIMCO President Sadan Kaptanoglu. It is important to laugh together, have fun and celebrate before you get to business, says Dirk Lehmann, Managing Director of the Hamburg-based company Becker Marine Systems, and Vice Chair of SEA Europe.

    This is why events such as SMM are so important. People need to be physically present to let the sparks of inspiration fly to create new ideas, business partnerships and deals. The global maritime community is looking forward to gathering at the leading international maritime trade fair in Hamburg from 2 to 5 February 2021. On the basis of the current restrictions to combat the coronavirus pandemic, Hamburg Messe und Congress is developing a concept that will ensure both, utmost safety and a successful trade fair. This concept will be discussed with the responsible authorities as well as the health & safety executives of selected exhibitors. The concept will be presented to the public in October 2020.

    SMM, the leading international maritime trade fair, takes place at the Hamburg Messe und Congress (HMC) exhibition complex every two years. In response to the coronavirus crisis, the 29th issue of the trade fair has been rescheduled. Instead of the original September 2020 dates, it will take place from 2 to 5 February 2021. From ship owners to shipyards, and through to suppliers, SMM on the HMC campus reflects the entire value chain of the maritime industry. Decision-makers, experts and multipliers from all parts of the world will gather at the exhibition, representing companies of all sizes, from global market leaders to start ups. This makes SMM the largest international innovation platform of the maritime sector.

2020 August 12

18:57 Risavika LNG index for September up by 8.9 % week on week
18:27 Andreas Rieckhof new Chairman of Hamburg Messe und Congress GmbH Supervisory Board
18:08 At the three Hamburg container terminals throughput volume down 12.0 % in H1 2020
18:07 Sri Lanka Ports Authority assures safe handling of dangerous cargo under UN regulations
17:47 Rosmorport’s Azov-Black Sea branch adds TSHD Sommers to its fleet
17:43 Boluda Towage Europe takes on two new tugs from Damen Shipyards Group
16:49 Investors set to inject in excess of RUB 19 bn in federal port infrastructure facilities development
15:44 MoD eyes placing more orders for the Steregushchiy class corvettes with Amur Shipyard
15:17 Joint R&D Starts for Use of Ammonia in Marine Transportation to Reduce GHG Emissions
14:47 CMA CGM announces PSS from Asia to North Europe
14:21 MST wins contract for building 19m high-speed patrol craft duo for the Royal Navy
14:03 MOL issues an update on the Capesize bulker "Wakashio" aground off Mauritius
13:20 Port of Kiel constructs the new port apron
12:01 THE Alliance announces COVID-19 response measures for September 2020
11:57 Northern Sea Shipping acquires the MV Siyaniye Severa
10:36 LNG vessel completes 10,000th Neopanamax transit at the Panama Canal
10:02 Crude futures prices continue upward trend
09:32 Baltic Dry Index as of Aug 11
09:00 MABUX: Bunker market this morning, Aug 12

2020 August 11

18:07 Saigon Newport chooses Kalmar Essential Terminal Tractor for Cat Lai Terminal
17:43 Global Industry Alliance developes Just In Time Arrival Guide
17:36 Maersk Tankers hires Eva Birgitte Bisgaard as its new Chief Commercial Officer
17:00 CMA CGM announces PSS from Asia to North Europe
16:35 NORDEN adds 2 vessels to the existing newbuilding contract with NACKS
16:22 Murmansk Sea Fishing Port’s handled volumes in Jan-Jul dropped 12.7%
15:34 PETRONAS Research joins FASTsubsea’s subsea pump development
15:18 SCF Group's Igor Tonkovidov: Shipowners’ ability to compete with each other will be increasingly determined by their readiness to adopt advanced technologies
14:03 Houlder wins contract for Isle of Man Steam Packet Company’s new purpose-built vessel
13:39 IMO assists in MV Wakashio oil spill response
13:11 Cameron LNG Train 3 begins commercial operation
12:56 Seven-month crude exports via CPC Marine Terminal fell 1.4%
12:29 Port of St. Peterburg Captain releases new allowable drafts in Greater Port St.Petersburg basin
12:05 The Standard Club issues Guidelines for the use of electronic record books (ERBs) under MARPOL
11:08 Port of Ust-Luga based Multipurpose Reloading Complex steps up its efforts to protect the environment
11:04 Transhipment in North Sea Canal ports down by more than 10 percent due to coronavirus crisis
10:31 CSP Abu Dhabi Terminal launches new direct services to Europe and Indian Subcontinent
10:15 MABUX: Bunker market this morning, Aug 11
09:54 Crude futures prices extend upward trend
09:33 Baltic Dry Index as of Aug 10
09:08 Average spot market price for Russian M100 product soars to 11,582 rub/mt

2020 August 10

17:20 HMM joins forces with CMA CGM on TTI Algeciras operation
17:19 Commercial Port of Vladivostok's seven-month container volumes rose 8.1%
17:12 APM Terminals to acquire ALC´s container terminal in Aarhus
17:06 IMO sets remote meeting plan for September-December 2020
16:57 Capesize bulker “Wakashio” aground off Mauritius
16:47 Freight traffic at Russian seaports in Jan-Jul fell 2.1%
15:58 Seven-month coal throughput at Port Vysotsky falls 7.5%
14:27 Vostochnaya Verf launches Grachonok-class anti-saboteur boat (Project 21980) for Pacific Fleet
13:28 ONEGO Shipyard launches a self-propelled hopper barge "Morskaya"
13:22 IMO report on GHG finds a decoupling between trade and emissions in shipping
12:20 Anders Opedal taking over as president and CEO of Equinor from 2 November 2020
10:21 Diana Shipping announces time charter contract for m/v Melia with Ausca
10:17 Containerships and APM Terminals Gijon form eco-friendly intermodal solution connecting Spain, UK and Ireland
09:31 Crude futures prices take upward trend
09:06 Baltic Dry Index as of Aug 7
08:58 MABUX: Bunker market this morning, Aug10

2020 August 9

16:21 MPA launches six next-generation patrol craft to grow its frontline capabilities
15:35 Fincantieri Bay Shipbuilding prepares for Navy frigate work
14:03 NCLH reports Q2, 2020 financial results
13:27 USCG Cutter Legare offloads nearly 5,000 lbs. of cocaine, marijuana