…As Impairment Charges Push Team Tankers Further, into Loss***
The shipping industry must take responsibility for its fair share of carbon emissions in order to tackle climate change, according to global transportation conglomerate A.P. Moller – Maersk.
“Raising the ambition for global regulation remains crucial to ensure shipping’s contribution to reach the Paris Agreement’s goal of staying below 2°C temperature rise,” John Kornerup Bang, Chief Advisor on Climate Change at Maersk said.
The maritime industry emitted close to 1,000 million tonnes of CO2 in 2012, representing about 2.2% of global CO2 emissions. Depending on future development, this could rise to 15% by 2050, according to a 2016 study by the Danish Shipowner’s Association (DSA) and UCL Energy Institute.
As highlighted by Bang, the 23rd session of the UN Climate Change Conference (COP23) taking place from 6-17 November in Bonn, Germany, represents another clear-cut opportunity to take negotiations further and raise the bar for the commitment of shipping in 2018 and beyond.
Namely, under the aegis of the main conference, the ‘Ambition 1.5°C: Global Shipping’s Action Plan’ summit took place on November 13.
Based on the projections from the International Maritime Organisation (IMO), the industry can improve efficiency by up to 75% through operational measures and current technology.
However, to make this happen, a higher level of ambition is needed than the one outlined in the current roadmap for 2017–2023, based on both technical, operational and economic measures – without punishing early movers and with clear incentives to develop new solutions.
“As a company, we are reaching a point where it will be more and more challenging to drive significant reductions on our own. Efficiency measures are drying out and it’s an industry challenge to drive the needed innovation in new propulsion technologies. More than ever, we need global regulation to ensure a level playing field and a transition with the biggest possible environmental impact,” Bang highlighted.
“The hopes and demands of the shipping industry for a strengthened mandate of the IMO were not fulfilled in Paris; Bonn offers us a new opportunity to accelerate what MAN Diesel & Turbo calls the ‘Maritime Energy Transition’, the move to cleaner technology within our industry. Ultimately, uniform environmental standards must be established at international level – a strong IMO as an international regulator is, therefore, essential,” Uwe Lauber, CEO of MAN Diesel & Turbo said while speaking at the event.
“MAN Diesel & Turbo wants to expand the debate on how to reach COP 21’s targets. We want to engage with all stakeholders – whether the general public, NGOs, shipowners or classification societies – to see what solutions are already in place or required. Consequently, I am heartened by what I have heard today in Bonn where we have made significant progress, and am confident that our efforts here will ultimately bear fruit,” Gunnar Stiesch – Senior Vice President, MAN Diesel & Turbosaid.
Stemming from the summit’s proceedings, a briefing document will be delivered to UNFCCC delegates, providing a summary of the main challenges and opportunities offered by the decarbonisation of the shipping industry, the ambitious approaches agreed, and a copy of a draft action
In the meantime, tanker owner Team Tankers International saw its net loss for the third quarter of 2017 widen significantly, mainly due to vessel impairment charges as chemical tanker sector remained challenging.
Net loss in the third quarter ended September 30 was USD 36.3 million, or USD 7.5 million excluding a USD 28.8 million vessel impairment charge recognized in the period. The company’s loss in the same quarter a year earlier stood at USD 4.2 million.
The average time charter equivalent (TCE) rate for the fleet was USD 10,136 per day this quarter, representing a decrease of 7.2 percent compared with USD 10,926 earned per day in the third quarter of 2016.
“Market conditions in the chemical tanker sector remain challenging. Team has the balance sheet to go on the offensive and is poised to take advantage of compelling cyclical investment opportunities,” Hans Feringa, President & Chief Executive Officer of Team Tankers, said.
During the quarter, Team Tankers sold the 8,674 dwt vessel Tour Margaux and the 12,888 dwt Sichem Dubai for a total of USD 11.4 million and replaced capacity through time charter-ins of the 12,959 dwt Leon M in July, the 9,500 dwt Black Star in August and the 9,500 dwt Blue Star expected in November.
For the first nine months of 2017, Team Tankers’ loss stood at USD 49.9 million, against a loss of USD 4.1 million seen in the same nine-month period of 2016. Excluding the vessel impairment charge of USD 28.8 million, the net loss for the nine months ending September 30, 2017 was USD 21.1 million.
At the end of September 2017, the company’s fleet consisted of 40 vessels, of which 30 were owned, 1 was on a financial lease and 9 were classified as operational leases.
World Maritime News