Cargill Reports Encouraging Results from 6-Month Sail Test on Bulker

Cargill Ocean Transportation, the ocean shipping arm of the commodities giant, is reporting encouraging results largely in line with projections after the first six months of testing of wind-assisted propulsion aboard a Kamsarmax bulker. Data from the Pyxis Ocean (81,000 dwt) will be used according to Cargill to inform the potential scale-up across the fleet and industry as well as providing learning to further improve the design, operation, and performance of the solid sail technology. After a partnership that began in 2019 to develop the wind technology, Cargill working with UK-based start-up BAR Technologies moved forward with the first installation of the sails on the 751-foot (229 meter) vessel completing the work in Shanghai in August 2023. The vessel built in 2017 was retrofitted with two 150 feet (37 meter) rigid sails made of a compositive material not unlike the blades for wind turbines.  During the first six months, the vessel which is owned and operated by MC Shipping, a division of Mitsubishi, has completed three voyages. It crossed the Indian, Pacific, and Atlantic oceans, sailed around Cape Horn and the Cape of Good Hope, and encountered all types of…

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Red Sea Disruption Drives Up Container Leasing Rates

The capacity constraints created by the Red Sea security crisis have raised container shipping rates on Asia-Europe and Asia-U.S. East Coast routes, with knock-on effects on other lanes - and the leasing rates for empty boxes are rising too, according to Container XChange. Core China-U.S. routes are particularly affected.  The container brokerage reports that box capacity is getting tied up by the long transit around the Cape of Good Hope, which increases voyage times by 10 days or more. According to the firm's tracking, average container lease rates are now triple what they were a year before, and much of the increase has happened since Yemen's Houthi rebels began attacking shipping in the Red Sea.  The firm's contacts also report that the disruption is indeed shifting more cargo to the U.S. West Coast, as previously reporteds. "Many importers are already rerouting cargo via West Coast transloading and trucking across to the [East] coast, adding pressure on railways and domestic carriers," one California forwarder shared with Container xChange.  A healthy Western consumer economy is contributing to positive sentiment in the leasing market, according to the firm. American appetite for…

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Dry Bulk Market: Capesize Market Slowing Down as China’s Lunar New Year Holiday Underway

Capesize The capesize market started the week with a cautiously optimistic tone despite sluggish overall activity. Weather disruptions in China and a gradual start in the Atlantic were notable factors. By midweek there was a significant boost to market sentiment, with the BCI 5TC seeing a substantial increase, driven by active engagement from all three miners in the Pacific and robust cargo lists. Further in some owners secured cover ahead of the Chinese New Year holidays, leading to a decline in C5 rates. As the week draws to a close there was a mixed picture, with the Pacific market experiencing pressure on rates initially, followed by a correction, while activity remained robust from South Brazil and West Africa, tightening the market slightly, specifically for end February/early March loaders from South Brazil and West Africa. Overall, the week was influenced by Lunar New Year holiday preparations and regional demand dynamics. Panamax A captivating week for the Panamax market with various peaks and troughs seen across the market. Despite a muted start the Atlantic sprung into life, however very mixed views on where true market value was on some of…

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