/ By tjchinafreight ivy / Shipping

Seafarers have reasonable epidemic prevention, but they are maliciously harassed by Panamanian aviators!

In recent months, I have heard several times that the pilots deliberately made things difficult for the ship to pass through Panama, causing the ship to delay crossing the river. At first, I did not take it seriously, because I have always had a good impression of the management and services of the Panama Canal, just like the canal. The charming tropical rainforest scenery on both sides of the strait is the same, until recently, my personal experience has subverted the original cognition. Therefore, I decided to write it down and be a kind reminder for colleagues' reference, which may be helpful.

It is planned to enter the Pacific Ocean through the Panama Canal from the Atlantic Ocean to the south, and then return to China. According to the afternoon before the scheduled date of passing the canal (no later than 02:00lt on the same day), our ship successfully anchored in the northwest of the sea off the CRISTOBAL breakwater, and boarded the ship at 1515LT the next day. It was planned that our ship was at the fleet number S10, and the actual 0518LT arrived at the PILOT STATION (the mouth of the breakwater). The first pilot successfully boarded the ship with a boarding speed of 5 knots. Due to epidemic prevention and control, all crew members are required to wear four sets of epidemic prevention suits: protective clothing, masks, face shields or goggles, and rubber gloves. As soon as PILOT boarded the ship, his attitude was very unfriendly. He had to walk into the bridge from the living area, otherwise he would not lead the boat (during the epidemic, the pilot water was generally allowed to go outside).

After the water was brought to the bridge, he got angry again and again, complained that we were wearing protective suits and disrespected him, mocked that everyone was like a WHITE RABBIT, and kept expressing what seemed to be "reasonable anger". When he had a conflict, he could only explain it well: "During the epidemic, we traveled through various countries, and the risk factor was high, and it was also for everyone's safety... At the same time, the company also clearly stipulated and so on." I thought that PILOT's vexatious troubles would end with our friendly consolation, but I didn't expect that the nightmare had just begun.

About 500 meters before entering the first gate, the speed of the ship is 2.2 knots, and the PILOT requires the bow thruster to turn to the left at full speed (BOW THRUSTER FULL TO PORT). I was worried that the water diversion would take advantage of the problem. After checking with the old track, after turning off some unnecessary equipment loads, I took a risk and adjusted the thruster load to 100%. However, PILOT said NO GOOD, IT'S PROBLEM, we must let it go. The chief engineer came up to explain and repaired it. It was ridiculous. With a side thrust of 900KW and a full-load displacement of more than 40,000 tons, how could the effect be immediate. I knew in my heart that the Chief Engineer came to no avail. Once he came up, he would have less flexibility to deal with it, so I explained that the Chief Engineer couldn't go away and kept procrastinating.

During the period, the worst thing was that PILOT insisted that the cooling effect of the air conditioner was not up to standard, and secretly called the canal authorities to complain (the canal prosecutor has inspected the equipment of our ship, and the condition is good, including the air conditioning system), PILOT also Said to me, due to the fleet adjustment, I passed the third LOCK and went to drop a short anchor first, which I believed at the time. It was not until ten minutes later that I received an inquiry call from the company on the bridge that my boat had been delayed to cross the river due to a complaint about the air conditioning system. After hanging up on the phone, he was furious, but quickly realized that he couldn't get angry, otherwise it would be counterproductive. First of all, go to check the thermometer on the bridge, the actual temperature at that time was 26 ℃, take evidence, photos and videos, and send them to the company and the agent to ask the authorities to reconsider and verify. In the third LOCK, the canal authorities sent a third-party inspection engineer to board the ship to inspect and test the air-conditioning system, including the bridge and living area, and finally concluded that the temperature was comfortable and normal, and the plan of crossing the river was resumed again, but The anger that caused the diversion rebounded sharply, and the difficulties became even more intensified. The second PILOT boarded the ship at 0625LT. The two of them seemed to have negotiated well, and then began to criticize the protective clothing of my ship, especially the PILOT reported earlier, which was even more unreasonable. They communicated, otherwise, they refused to communicate. For the sake of safety, of course, we did not agree. We still maintained peaceful exchanges and tried our best to avoid the escalation of conflicts.

We made it through the canal anyway, and although it wasn't delayed, the results were good, but the process was a real ordeal. To sum up, I think we should not only carefully prepare the inspection content stipulated by the canal authorities, but also prepare how to deal with a series of malicious difficulties from PILOT. Maybe there is any interest relationship behind it, we don't know, the only thing we have to do is Resolutely safeguard the legitimate rights and interests of ships from being infringed.Want to ship goods in China? Contact us!

/ By tjchinafreight ivy / Shipping

22,000 dockworkers may go on strike

In the Port of Oakland, California. The last time dockworkers' contracts expired, ports on the U.S. West Coast suffered months of disruption. Learn more about shipping services.

The International Longshore and Warehouse Union's contract expires at the end of June. For those whose livelihoods depend on the port—truck drivers, logistics companies, retailers—July 1 marks the beginning of a period of serious uncertainty.
The labor standoff could exacerbate floating traffic jams, leaving dozens of ships waiting in the Pacific Ocean before they can dock. That could exacerbate shortages and send already high consumer prices soaring.
Some port workers have accused dockworkers of fueling chaos at the port ahead of contract negotiations, increasing their leverage over terminal operators while hindering the flow of goods for everyone else.
"Every time a contract is signed, things slow down," said Anthony Chilton, 55, who drives a truck to move containers between ports and warehouses in Southern California. "We always blame the terminals. Workers. They slack off, take breaks, call in sick.”
Among those who work at the docks, such descriptions have provoked strong dissatisfaction. Dockworkers say they have no intention of slowing down or stopping the economically vital, physically draining and dangerous jobs they do without interruption during the worst pandemic in a century.

“Both sides are getting ready,” Mario Cordero, executive director of the Port of Long Beach, said in a recent interview from his office overlooking towering cranes and stacks of shipping containers , "It's an incentive because the whole country is watching.

As far as the negotiating situation is concerned, both sides appear to have sufficient advantages. For dockworkers, on the one hand, the long fleet of container ships outside the port has become their most powerful weapon. On the other hand, the full-time work of dock workers is very important to maintain the operation of the terminal and stabilize the ultra-high profits of the terminal company. At the opening of the new Pier (Pier 5) in Seattle on Jan. 7, Rich Austin, President of ILWV 19, said, "We've been working hard to improve our productivity over the past 5 to 6 years because we recognize that This is a very competitive industry and the number of containers handled per hour is important.” He also noted that the port employs a lot of temporary workers to support port operations.

For terminal companies, most of which are subsidiaries of the world's largest liner companies, the docker strike will have an impact on their supply chain operations. But recent pressure from the Biden administration to keep supply chains stable makes it likely that there will be government intervention in the negotiations, and the administration under US President Joe Biden has made it clear that it is ready to pass Regulation to optimize supply chains.
For terminal companies, most of which are subsidiaries of the world's largest liner companies, the docker strike will have an impact on their supply chain operations. But recent pressure from the Biden administration to keep supply chains stable makes it likely that there will be government intervention in the negotiations, and the administration under US President Joe Biden has made it clear that it is ready to pass Regulation to optimize supply chains.

Beyond that, if the strike takes a toll on the U.S. economy, it won't do the dockworkers themselves any favors.

Dockworkers are among the highest-paid blue-collar workers in U.S. industry, but they argue that this is what they get at risk of their lives. The so-called Class A dockworkers, who have pensions and benefits, as well as regular hours, typically earn more than $100,000 a year. Even "temps" -- those guaranteed no shifts -- start at more than $32 an hour.

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/ By tjchinafreight ivy / Shipping

New tolls for the Panama Canal will affect these ships

The Panama Canal Authority (PCA) is proposing a new containership charging scheme that would, for the first time, charge for empty containers returning to Asia. The plan will also increase tolls for other types of laden and empty container ships. Get a sea freight quote

In addition to the empty vessel charges, the proposal calls for a fixed fee for each passage of the vessel, based on the locks used and the size of the vessel, which would run until 2025.
The proposal also proposes to levy a capacity fee based on the type and size of the vessel. Under the proposal, the loyalty program created in 2016, which originally encouraged ship operators to use the canal's Neo-Panamax locks, will now be reduced from Category 6 to Category 1 eligible vessels. It is reported that the loyalty program will be phased out by 2025. According to data from the Canal Authority, 55% of the tonnage of ships passing through uses the new locks.

Marotta said the current fee scheme was "a very complex system". "The goal is to make it simple and transparent."

Marotta said the toll will help fund a $2 billion project where authorities plan to build additional reservoirs to supply fresh water to the canal, which has been dealing with traffic restrictions due to low water levels. In 2020, authorities imposed a surcharge on ships related to the water level of the canal, which many believe has been affected by climate change.

The current container ship charging system has been in place since 2017 and charges are assessed based on vessel capacity and the actual number of containers loaded.

Changes in toll charges could significantly affect those on long-term charter contracts on the US Gulf-East Asia route, as the canal is the most convenient link between the two markets in the US and East Asia.

In December, the Canal Authority said it wanted the charges to reflect changing market conditions, including increased global demand for LNG. The Canal Authority also said it would communicate more directly with market participants on how to ease congestion. Congestion caused some LNG carriers in line to be diverted to the Cape of Good Hope last fall. The Canal Authority said the maximum wait times for unscheduled LNG carriers to pass through the canal were 5 days (northbound) and 3 days (southbound). In the future, ships that do not meet IMO emission standards may face additional costs during peak winter energy demand periods.

/ By tjchinafreight ivy / Shipping

Freight rates on the US Eastbound routes have risen!

In order to avoid the uncertainty brought about by the labor negotiations at ports on the west coast of the United States, many American importers continued to choose the route calling on the east coast of the United States, which pushed up the container freight rate of the east coast of the United States and further strengthened.
Congestion at East Coast ports is increasing, and the situation is likely to increase further in the short term as more ships arrive.

"The high-end market is starting to pick up again, especially given the diversification of the U.S. West Coast at this time," said a U.S. logistics provider. "Queues at U.S. East Coast ports are starting to build up, so it's getting pretty tricky to ship from the U.S."

Heard that the US West Coast has premium booking rates as high as $16,000/FEU, while the US East Coast remains premium. Spot bookings are said to be as high as $17,500/FEU, not far from the peak at the end of 2021, when prices were in the $20,000/FEU range.

As in other regions, the real problem in the market is not sea freight, but inland logistics shortages. A lack of chassis and railcars is preventing importers from moving cargo from ports to inland distribution networks.

However, premium rates are not only seen in the trans-Pacific region. Conditions at European ports have deteriorated, with cargo delays prompting some premiums on transatlantic routes to continue or even grow.

"There are serious delays in Europe right now, so we're starting to see some premiums in the transpacific start to pick up," said a U.S. freight forwarder. "The level isn't high, but people pay a price for fast shipping or they end up at the bottom of a growing stack."
These premiums were heard in the $8,500/FEU region for North European to North American East Coast cargo.

In the week ended March 25, the average freight rate for the Southeast Asia-US East route was 17,000-18,000 US dollars/FEU, and the Southeast Asia-US West route was 15,000-16,000 US dollars/FEU, the same as a week ago, but there are some quotations grow rapidly.

On March 25, the freight rate of PCR 25 (Platts Container Freight 25 Index, Southeast Asia-North America East Coast Route) was estimated at US$10,500/FEU, and the freight rate of PCR 23 (Southeast Asia-North America West Coast) was estimated at US$9,500/FEU , which was basically the same as the previous week.

The index of freight rates on the India-Middle East short-haul route rose due to higher bunker fuel costs and increased supply chain uncertainty. On March 25, the freight rate of PCR 33 representing the India West Coast-Middle East route was estimated at US$2,300, up US$200 from the previous month.

/ By tjchinafreight ivy / Shipping

Russian ships under sanctions change flags in large numbers

In March, an unusually high number of ships abandoned their Russian flags and re-registered with countries such as the Marshall Islands and St. Kitts, according to data provided by maritime risk consultancy Windward AI.

Russian ships in trouble

A total of 18 ships were re-flagged last month, according to Windward, more than three times the normal rate of 5.8. Five of the ships were linked to Russian ownership. Among them are 11 ships from the same fleet, all of which have been changed to the Marshall Islands flag, and three tankers have been changed to the flag of St. Kitts and Nevis.

Five of the 18 ships that changed flags had direct links to Russian owners. The level of Russian re-flagging in March was more than three times the average, the first time since January 2020 that the monthly number of re-flagging reached double digits.

The U.S., U.K. and other allies have stepped up sanctions on Russia due to the Russian-Ukrainian war that began in late February. U.S. President Joe Biden issued an executive order on March 8 banning imports of Russian oil and gas, and Britain also said it would phase out oil imports by the end of the year. In addition, several countries have banned Russian ships from entering their ports.

From yachts as small as multi-million dollar yachts to oil tankers, Russian ships are already in trouble. The identification and position transmission system AIS, which was supposed to be on all the time at sea, has also been turned off because it avoids detection but poses a risk to maritime safety.

But not all flag changes are necessarily sanctions evasion. The trend could also include "honest businessmen trying to continue business as usual without the potential obstacles that the Russian flag could pose for them," the report said.

Gur Sender, product manager at Windward, said foreign companies have different motivations for changing the flag of Russia, some want their ships to be able to operate around the world without restrictions, and that sea freight is an important method of transporting goods, but others are for ethical reasons.

Changes to flags are not necessarily abnormal, and are sometimes due to changes in ownership or area of ​​operation, Sender said. Singapore will have an average of 17 flag changes per month in 2021, while Japan will have an average of 5 flag changes per month this year. But their levels are all stable without big fluctuations.

A large number of Russian flag switches have appeared in other unusual activities, such as Russian tankers shutting down their tracking systems. Both tactics were included in a May 2020 U.S. Treasury Department bulletin that listed seven categories of fraudulent shipping practices.

"Bad actors may forge the flags of their vessels to conceal illegal trade. They may also repeatedly register ('jump the flag') with a new flag state to avoid detection," the advisory warned.

/ By tjchinafreight ivy / Shipping

Seaspan plans to expand investment in container ships.

 

In the past two years, the container shipping market has been hot. Although Seaspan, as the world's largest independent container ship owner, could have sat down and reveled in the high income, sufficient customers and long-term leases, due to the rapid development of the shipping industry, the The company still plans to expand its investment in container ships.

The Vancouver-based, Hong Kong-registered, Atlas Corporation-owned company has been growing at a record pace over the past year and a half. Its latest financial statements for 2021 confirmed that the company's cash flow was very solid, with a profit of $400 million in 2021, double the previous year. The leasing business added 70 newbuildings, or about 0.9 million TEU, and new contracts generated total cash flow of up to $12.9 billion.

Like the big liner companies, Seaspan is building a very strong capital pool. There is no doubt that investing in new projects is very easy for Seaspan. If a bank needs it to guarantee a loan, Seaspan can easily find a recent lease with a major liner company, which can last up to 18 years.

That said, Seaspan will still have an exceptionally strong funding position until 2040, even if the hot container market cools one day.

Seaspan and its shareholders want uninterrupted returns through continuous investment like a shipping company. Many large liner companies use their profits to invest in logistics assets. For example, Maersk bought LF, MSC bought Bolloré's African business, and CMA CGM bought Ceva.

But considering that the customers of these profiteers are now helpless to pay sky-high freight costs and endure long delays, in this case, shipping companies rely on their special tax incentives and use their high profits to acquire Another industry has exacerbated the negative sentiment in some parts of the supply chain market to a certain extent. Seaspan needs to study how to play a long-term "ship owner and operator" in the container shipping industry. business to best serve customers.

The issue has been discussed within the company for some time, but according to COO Torsten Pedersen, there is no final conclusion yet. But in general, the company aims to further strengthen its position in global value chains, including beyond 2025.

Ensuring a role in decarbonisation may be an option, but it may also be other activities, and opportunities abound in the chaotic container market.

“The industry is currently undergoing major changes, and the competitive environment is very different from a few years ago. Some links may be squeezed in the new structure, and there will be many strategic moves and counter-attacks in the industry. Huge market changes can provide many creative opportunities, we Think it's an exciting challenge."

"It's a good thing that Seaspan has a strong financial position" amid the boom in the container market, Pedersen said. Seaspan is currently achieving its stated goals. The company has struck deals with operators to build around 70 new ships over the next two or three years.

Concluding comments on the shipping industry, he said: "We have strong partners and long-term contracts, and our partner yards have a long history of shipbuilding. This is an industry that will be heavily funded in the next few years and the landscape is changing."

/ By tjchinafreight ivy / Shipping

Subtle changes in supply and demand, freight rates drop one after another

Supply and demand conditions improved, and freight rates continued to fall. There are many uncertain factors, and the future trend is still unclear.
Recently, the freight rates of major routes in the container shipping market have changed the pace of rising and have continued to decline in the past month. Even so, since the high freight rate in the fourth quarter of last year continued to the first quarter of this year, the current freight rate is still much higher than the same period last year.

Multi-route freight rates drop

According to Drewry data, as of March 17, the World Containerized Freight Index (WCI) was US$8,832.23/FEU, down 3.8% month-on-month and still up 79% compared with the same period in 2021.

In terms of routes, the Shanghai-Rotterdam spot freight rate was US$12,221/FEU, down 4% month-on-month; the Shanghai-Genoa spot freight rate was US$12,619/FEU, up 1% month-on-month; the Shanghai-Los Angeles spot freight rate was US$10,154 /FEU, down 7% month-on-month; Shanghai-New York spot freight rate was US$12,276/FEU, down 5% month-on-month.

On March 18, the China Export Container Freight Index (CCFI) released by the Shanghai Shipping Exchange was 3301.10 points, down 1.9% from the previous month. Among them, the freight index of European routes decreased by 1.9% month-on-month, the freight index of Mediterranean routes decreased by 0.5% month-on-month, the freight index of US-West routes decreased by 3.8% month-on-month, and the freight index of US-East routes increased by 2.1% month-on-month.

According to the Ningbo Export Container Freight Index (NCFI) released by the Ningbo Shipping Exchange, as of March 18, the composite index closed at 3,613.9 points, a month-on-month decline for 11 consecutive weeks, down 15.3% from the high level at the end of December 2021, and from the end of February. It fell 8.4%.

Judging from the situation of different routes since the end of February, the freight index of the South America east route decreased by 19.3%, the freight index of the South American west route decreased by 16.7%, the freight index of the Middle East route decreased by 17.6%, the India-Pakistan route decreased by 13.7%, and the freight index of the European route decreased by 13.7%. The price index fell 11.7%, the most significant decline. The average market price of the 40-foot TEU after the price increase in the Europe, South America East, South America West and America West routes fell by more than US$1,500/FEU, and the freight rate fell the most. It can be seen that, in the past month, although the freight rates of some routes remained flat or increased slightly month-on-month, in general, they showed a downward trend.

As far as the single-day freight rate is concerned, in early March, the freight rate trend showed a clear inflection point.

According to Xeneta data, recently, freight rates from China to Europe suffered the largest one-day drop since February 2020. On March 1, the average spot rate on the route fell by nearly $500/FEU to $13,340/FEU. This is the first time since September 2021 that freight rates on this route are below $13,500/FEU.

However, the agency also pointed out that the current freight rates on the Asia-Europe route are still at a very high level compared to before the COVID-19 outbreak. In 2018-2020, the average spot freight rate on this route was only US$1,500/FEU.

Based on this, Zheng Jingwen, a senior analyst at the International Shipping Research Institute of the Shanghai International Shipping Research Center, said in an interview with a reporter from China Shipping Weekly that according to the trend of previous years, the freight rate will indeed drop slightly and briefly in the first quarter.

Qian Hanglu, an industry analyst at Ningbo Shipping Exchange, also said: "This is mainly due to the traditional off-season, which makes the overall freight rate of the container shipping market continue to decline from mid-January to late March. For example, in 2019 In 2021 and 2021, the NCFI composite index has experienced a 10-week decline, with a cumulative decline of 25.7% and 19.4%, respectively."

/ By tjchinafreight ivy / Shipping

German retail giant Lidl sets up its own shipping company

Lidl, part of the Schwarz Group and one of the world's largest retailers, launched its own container shipping company to tackle supply chain challenges, reduce delays in product deliveries and avoid high shipping costs.
Wolf Tiedemann, CEO of Lidl Stiftung & Co. KG, confirmed the establishment of the new shipping line to German media outlet VerkehrsRundschau, commenting: "The goal is to be able to manage the increase in different production facilities more flexibly in the long term."

According to local media reports, Lidl has submitted an application to the European Trademark Office to register a shipping company named Tailwind Shipping Line, whose business scope is cargo transportation, including sea, air and import and export cargo handling.
If the plan goes well, Lidl said it would be able to operate its own supply chain and address high freight rates and congestion in port and landside transport.
However, Lidl has not disclosed which routes Tailwind Shipping Line plans to open and which types of ships it will use, which does not rule out the company buying ships to build its own fleet.

Notably, news of Lidl's foray into the shipping industry was first reported by German media on April 1. An industry insider said at the time that the report was an "April Fool's joke". However, the move has been confirmed by local shipbrokers - Lidl's plans are real.

In fact, as early as 2021, Lidl planned to invest in a container shipping business to better control the supply chain, but it has not been able to materialize.
A fast-growing German retailer, Lidl currently operates more than 11,000 stores worldwide and employs more than 310,000 people.

In fact, big shippers have been trying to build their own supply chains to move goods more quickly.
In the second half of 2021, due to the continued shortage of space and containers in the container shipping market, major European and American cargo owners, including IKEA, Wal-Mart, Home Depot, and Amazon, have begun to charter their own ships to transport goods, and more and more cargo owners have followed suit.

For this approach, some industry insiders have analyzed that for those large cargo owners who urgently need to transport goods, although chartering their own cargoes looks very attractive, they are also faced with uncertain risks in the market, and thus resulting losses.
However, these shippers often choose to work with freight forwarders. So far, no shipper has developed its own shipping brand.

/ By tjchinafreight ivy / Shipping

8,000 vacancies in Europe’s largest port

Allard Castelein, chief executive of the Port of Rotterdam, Europe's largest port, recently told the media that due to the "boom" of the integrated transportation market, major ports around the world are experiencing congestion. The Port of Rotterdam's influence is expanding as the port grows, with a shortage of 8,000 jobs.

At present, in the operation of large 24,000TEU container ships, the Port of Rotterdam must have corresponding supporting services to transfer a large amount of goods to the domestic transportation system (including distribution centers, truck transportation and railways, etc.) and inland systems will create a lot of stress that will continue for many years.

Allard Castelein said that there are several reasons for the stress on the transportation system. In recent years, the Port of Rotterdam has increased investment to increase the port's capacity, but these investments will take some time to relieve the port's operational pressure. But demand in all industries is very strong, putting pressure on terminals and other distribution systems, and the most important factor is labor shortages.

While the labor shortage in the Port of Rotterdam is not as severe as it is in the Port of Los Angeles, the Port of Rotterdam also faces the challenges of a possible shortage of truck drivers, dock workers, and inadequate connections to inland transportation and logistics systems.

Overall, the Port of Rotterdam employs around 160,000 people, but recruiting is getting harder and vacancies have quadrupled over the years, with a total of 8,000 vacancies across all sectors now. Allard Castelein: “There are demographic reasons for vacancies, but as an industry we need to make sure that we are attractive enough to potential employees that they want to come and work here.” On the other hand, the structure of the workforce can also change over time. Changes, such as some jobs will be replaced by automation technology, and the green transformation of the port industry will bring new jobs.

/ By tjchinafreight ivy / Shipping

Frontline and Belgian tanker owner Euronav announce merger

Frontline, the oil tanker subsidiary of Norwegian shipping king John Fredriksen, and Euronav, the Belgian tanker owner, announced the merger. The new owner with 146 tankers surpassed China's China Merchants Shipping to become the "Big Mac" in the global very large tanker (VLCC) market. .

If the merger materialises, the combined group will continue to operate under the Frontline name and will continue to operate in Belgium, Norway, the UK, Singapore, Greece and the US. The combined group will be headed by Mr. Hugo De Stoop as Chief Executive Officer, and the Board of Directors of the combined group is expected to consist of seven members, including three current members of the independent Euronav Supervisory Board, two nominated by Hemen Holding Limited (“Hemen”) and additional Two new independent directors. Frontline's largest shareholder, Hemen, and related companies with stakes in Euronav have pledged to back the potential deal.

The companies said the combination provides economies of scale that will facilitate improved fleet utilization and ease the transition to digitalisation of logistics and the adoption of low-carbon fuels for tankers.

"The merger will create the world's leading independent tanker operator," KBC Securities wrote in a note to clients, while warning that there was no guarantee that a final merger agreement would be reached.

The merger will create a world-leading independent tanker operator with a market capitalization of more than $4.2 billion, with a fleet of 69 VLCCs (including 9 newbuildings under construction) and 57 Suezmaxes, as well as 20 LR2/Afra type oil tanker. In the VLCC market, the combined fleet of the two companies accounts for about 8% of the market, which is enough to exceed the 54 ships (including 3 new ships under construction) of China Merchants Steamship, the world's largest VLCC shipowner.

The combined, expanded fleet will enable the new company to better serve customers globally. Furthermore, given rapid technological change, including digitization and the application of new low-carbon fuels, new companies will be able to mobilize more resources to address these challenges and energy transition opportunities.

Commenting on the merger, John Fredriksen said: "The combination of Frontline and Euronav will create a market leader in the tanker market, allowing the combined group to continue to deliver shareholder value in addition to substantial synergies. The new Frontline will be able to provide our of customers providing value-added services, increasing fleet utilization and revenue, which will benefit all stakeholders.”

It is understood that last year, John Fredriksen purchased a 5.5% stake in Euronav through a subsidiary company CK Limited, and bought 7.7 million shares through another subsidiary company FamatownFinance. After two rounds of operations, John Fredriksen held 19.8 million shares of Euronav, with a shareholding ratio of 9.8%, which immediately triggered market speculation about the merger.

The merger is still subject to transaction structure, confirmatory due diligence, the terms and conditions of the potential merger agreement, applicable board, shareholder, customer, lender and/or regulatory approvals, employee consultations and other customary closing conditions.

Frontline and Euronav are working to reach and finalize an appropriate transaction structure for a potential business combination. It is not yet ripe for the market to complete the merger, and there is no guarantee that the parties will reach a final agreement, and the completion of any transaction is subject to the satisfaction of many of the above conditions. Frontline and Euronav will keep all stakeholders informed of any future developments in accordance with applicable regulations.