Infospectrum Insights

On 18th July 2019, Infospectrum welcomed over 100 participants from 64 companies to its Singapore Counterparty Risk Forum at the Conrad Centennial Singapore Hotel, providing attendees with unique shipping industry insights and the latest trends shaping the sector. 

Is the much-heralded "transparency" entering the shipping and commodity markets just a greater volume of "stuff"?

Liner operators have decided on their strategies to cater for the IMO’s low-sulphur regulations from January 2020, but their commercial reactions and costs will vary, and so will impact on profitability next year and beyond.  

Rogue ship operators who switch off or manipulate AIS data to hide potentially illegal operations with sanctioned countries are a hot topic at the moment, but more stringent monitoring action is required by industry stakeholders to ensure they remain compliant.

This month we caught up with Luciano Mezzalira, Senior Analyst at Infospectrum’s Oxford office, who has been a mainstay of Infospectrum's Americas team since 2006.

The escalation of political strains between the US and Iran seen in recent weeks has added more uncertainty to global energy and shipping markets. The sensitivity arises from the status of the Strait of Hormuz, the 65km-wide sea channel which separates Iran from Oman, and through which around 20% of global oil supply passes.

Political & Country risk has always been very much in the limelight, and we are currently seeing numerous examples play out in countries all over the world. Our Americas team has been monitoring their local region closely, and here provides a case study of sorts, which highlights some of the complications businesses with international interests and investments can face. 

The boom in liquefied natural gas (LNG) trade shows no signs of abating, with globally-traded volumes likely to edge up towards 350million tonnes (mt) in 2019. LNG is seen as complementary to climate targets and offers diversification from reliance on pipeline gas. The key demand driver is China, which will soon overtake Japan as "number-one" LNG importer. Activity is rising in Europe, too, with Germany soon to join the ranks of buyers.

You only have to look at the headlines of the last few weeks to know that the current market conditions represent a perfect storm for those concerned about compliance. How does an industry which has always worked around the edges of the possible (and occasionally the legal) find a way through?

The latest round of tariff increases imposed by the US on Chinese-made goods will, we believe, impose different levels of potential risk on the major liner operators. Second-time around, the wider market ramifications could also be more significant.