2022 Annual Review

The world energy seaborne map changed dramatically following Russia’s decision to invade Ukraine on February 24. Rates for tankers and LNG carriers soared as the West sought alternate supplies and Russia ramped commodity sales to more distant clients in Asia. Grain shipments out of the Black Sea also became a top political issue. European Union institutions hammered out a preliminary agreement to include shipping within the scope of the emissions trading system (ETS). All ships of 5,000 gt and over within the EU will be required to pay for 100% of their emissions, while 50% of the emissions on voyages between EU and non-EU ports will be covered. Europe’s lawmakers also adopted their position on draft EU rules on the use of renewable and low-carbon fuels in maritime transport – known as FuelEU Maritime – with a 2% mandate by 2030. Green shipping corridors, promoted massively at COP26 in Glasgow last November, really took off this year, with routes now spanning the globe with port pairs vowing to offer alternative fuels. The battle for control of Antwerp-based tanker giant Euronav played out all year with John Fredriksen’s Frontline closing in on an audacious takeover, fiercely fought by Euronav’s largest shareholder, the Saverys family who run Compagnie Maritime Belge. While many countries moved into a post-covid day-to-day life, sparking the return of major shipping shows such as Posidonia and SMM, China maintained its strict zero-covid policies through to this month, damaging industrial production and hampering supply chains with rolling lockdowns. On January 5 this year Alphaliner confirmed Mediterranean Shipping Co (MSC) had toppled Maersk at the top of the box rankings, marking the first time in a quarter of a century that the Danish carrier was not the world’s largest containerline. MSC spent 2022 building on its leading position. The container bubble finally burst, albeit with the sector still on track for record annual combined profits in excess of $200bn. Global liners have used their new found riches to transform their organisations with many becoming fully rounded logistics players. In June President Joe Biden signed into law the Ocean Shipping Reform Act marking the first major change to federal regulations for international container shipping in more than a generation. The law gives the US shipping regulator, the Federal Maritime Commission (FMC), far greater powers. Liners in other parts of the world faced some grilling by local politicians. Japan’s Ocean Network Express (ONE) joined a coalition of controlling shareholders in New York-listed Atlas Corporation to buy out the asset manager, whose assets include Seaspan, the world’s largest containership leasing company. In dry bulk, there were two notable mergers - London-listed Taylor Maritime Investments (TMI) struck a takeover deal with Singapore-based Grindrod Shipping while Hong Kong’s Asia Maritime Pacific (AMP) and Hamburg Bulk Carriers (HBC) merged to create a new name in dry bulk, Cetus Maritime. Seafarers’ groups won the right to mandatory social connectivity for crews – including internet access – in updates to the Maritime Labour Convention 2006 (MLC). P&I clubs Standard and North are to merge, creating one of the largest P&I firms in the world. The formal merger of both clubs is expected to complete by February next year. Two broking powerhouses joined forces. Swiss-headquartered IFCHOR is merging with London tanker specialists Galbraiths in the latest chapter of broker consolidation. Hyundai Heavy Industries’s maritime autonomous pioneer Avikus claimed success with the world’s first transoceanic voyage of a large merchant ship relying on autonomous navigation technologies. In partnership with South Korean owner SK Shipping, Avikus equipped an LNG carrier with a navigation solution that allowed a successful autonomous operation over 10,000 km between the US and South Korea. Many other pioneering autonomous shipping developments took place during 2022.

2022 Annual Review

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