China’s newly imposed retaliatory port fee policy has intensified instability across the global maritime landscape, introducing fresh uncertainty for international shipowners and operators. Over the weekend, multiple ships bound for Chinese ports abruptly altered course after Beijing unveiled its sweeping countermeasure on Friday targeting US-linked tonnage. Beginning tomorrow, in direct response to Washington’s decision to impose higher port fees on Chinese-controlled ships, Beijing will apply an additional charge of $56 per net ton on any ship built, operated, flagged, or even publicly listed in the United States. The announcement has sent shockwaves throughout the shipping industry, adding yet another layer of complexity to trade flows already disrupted by escalating geopolitical tensions. Although the number of US-flagged ships and American-based shipping operators is relatively limited, the inclusion of ships owned by US-listed public shipping companies dramatically expands the impact of China’s new tariff regime. Market data indicates that the measure will weigh most heavily on several critical segments of the global fleet, including crude tankers (16%), LPG carriers (14%), product tankers (13%), and containerships (11%). These figures represent a large enough proportion of tonnage to create significant operational disruptions and distortions in global trade patterns. In parallel with the United States’ own plan to escalate port fee charges over the next few years, China’s new levy will progressively increase from $56 per net ton to $157 by 2028. The China Shipowners Association (CSA) has publicly condemned the United States’ recent actions, describing them as violations of World Trade Organization principles of equality and non-discrimination. In a strongly worded statement, the China Shipowners Association (CSA) characterized China’s move as a “necessary and legitimate legal mechanism to protect fair competition, maintain maritime stability, and safeguard the integrity of international trade,” adding that “US unilateralism will ultimately lift a stone to drop it on its own foot.” Analysts caution that the potential economic and logistical fallout for the shipping market could be substantial, depending on how swiftly and efficiently the new Chinese port fee framework is executed. With only a short window before enforcement begins, it remains doubtful that all administrative systems, verification databases, and procedural guidelines will be fully operational in time. The lack of uniform instructions could lead to confusion among Port Authorities (PA), resulting in delays as officials attempt to verify ship ownership structures and investor links to determine which ships fall under the new fee regime. This confusion may, in turn, create bottlenecks at major Chinese ports, further straining already congested global supply chains. Dr. Roar Adland, head of research at London-headquartered premier shipbroker Simpson Spence Young (SSY), commented on the unfolding situation: “Whether these policies survive beyond Tuesday remains uncertain. What is clear, however, is that the maritime world is witnessing a deepening fragmentation of global trade, and shipping is increasingly at the forefront of that divide.” Founded in 1880, Simpson Spence Young (SSY) is one of the world’s oldest and most influential independent shipbroking firms, with a long-standing presence in the global maritime industry. Headquartered in London, SSY operates a network of more than 20 offices worldwide, covering all major shipping centers including Singapore, Shanghai, Oslo, Geneva, New York, Houston, and Tokyo. The shipbroker Simpson Spence Young (SSY) provides a full spectrum of maritime services, ranging from chartering and sale-and-purchase (S&P) brokerage to derivatives, market analytics, and carbon trading advisory. Simpson Spence Young (SSY) is widely regarded as a leading authority on freight markets, offering clients data-driven research and real-time intelligence across dry bulk, tanker, LNG, and container segments. Its market reports are closely followed by shipowners, charterers, financial institutions, and energy traders as key references for freight rate movements, macroeconomic trends, and regulatory developments. Over the past decade, Simpson Spence Young (SSY) has expanded its analytical capabilities and digital infrastructure, combining traditional shipbroking expertise with advanced market modeling and emissions-related data tools to assist clients in navigating the evolving decarbonization landscape. The shipbroker has been particularly active in advising clients on compliance strategies related to the EU Emissions Trading System (ETS) and the IMO’s Carbon Intensity Indicator (CII). The firm’s research division, led by Dr. Roar Adland, produces in-depth market outlooks and scenario analyses that often influence both commercial decision-making and policy discussions within the global shipping community. Meanwhile, in Washington, the Trump administration has made last-minute amendments to its own port tariff framework, changing the calculation formula for foreign-built vehicle carrier fees—effectively tripling the service costs—while loosening certain restrictions on LNG export licenses when shipments utilize non-US-built ships. Additionally, the US Trade Representative announced plans to impose 100% tariffs on ship-to-shore cranes, intermodal chassis, and related port components, directly targeting Chinese-made equipment used in global ports. As trade hostilities deepen, tensions over China’s rare earth export restrictions have triggered renewed threats from Washington to raise tariffs on all Chinese imports to 100%. Industry observers warn that this escalating tit-for-tat confrontation is accelerating a global bifurcation of trade, reshaping shipping routes, distorting freight markets, and forcing shipowners to reassess strategic exposure in an increasingly polarized maritime environment—one that firms like Simpson Spence Young (SSY) are meticulously tracking to help their clients navigate with precision and foresight. 13-October-2025
Supramax bulk carrier drydock wave constrains supply as retrofits stretch global shipyards. Fresh intelligence compiled by London-headquartered premier shipbroker Simpson Spence Young (SSY) reveals that drydocking activity in the supramax and ultramax bulk carrier markets is surging toward an unprecedented peak. The cycle is rooted in the influx of newbuilding deliveries that flooded the dry bulk industry during the late 2000s shipping boom, which then triggered a wave of five-year renewal surveys. Now, with supramax and ultramax bulk carriers progressing into their third SS (special survey)—a phase that is notably more complex and time-intensive than earlier inspections—the associated drydocking workload is withdrawing significant capacity from trading waters and curbing fleet growth momentum. Simpson Spence Young (SSY), established in 1880 and widely regarded as one of the most influential and comprehensive shipbroking houses worldwide, operates across chartering, Sale and Purchase (S&P), newbuilding advisory, research, and financial consultancy. With over 20 offices spanning major maritime hubs such as London, Singapore, Hong Kong, Shanghai, Geneva, Oslo, and New York, Simpson Spence Young (SSY) commands a unique vantage point across global shipping markets. Its research division is especially recognized for providing authoritative forecasts on freight rates, asset valuations, tonnage supply-demand balance, and regulatory impacts, making its insights a benchmark reference for shipowners, charterers, and financiers alike. According to Simpson Spence Young (SSY), recent drydocking patterns have sidelined approximately 2% of the supramax and ultramax bulk carrier fleet, and this percentage is expected to remain elevated until mid-2026, holding steady through mid-2027 before creating a structural drag on operational supply. In its advisory note to clients, Simpson Spence Young (SSY) cautioned: “There are considerable upside risks to these estimates, owing to hidden delays from waiting times at congested repair yards and the likelihood that this cycle of third surveys will demand longer durations. As a result, supramax owners could find themselves benefitting from tighter market conditions for a longer-than-anticipated period.” At the same time, the industry is facing an additional wave of regulatory retrofits, with repair facilities reaching near-saturation. Shipowners are rushing to meet stringent environmental mandates, including the EU ETS, FuelEU Maritime, and tougher Carbon Intensity Indicator thresholds, leading to surging demand for decarbonisation-related modifications and severely limiting available yard capacity. For capesize bulk carriers, yard demand is climbing steeply through 2025, as energy-saving retrofits remove ships from commercial service for extended periods. Typical upgrades include propulsion system refinements, installation of fuel-efficiency technologies, hybrid power systems, and shaft generators, all of which require extended yard time beyond conventional drydock intervals. The retrofitting surge has spilled into multiple ship categories, with bulk carriers of various sizes, tankers, containerships, and gas carriers undergoing early upgrades in 2025 as owners seek to get ahead of looming 2026 enforcement deadlines. Under a full fleet-conversion projection, global yard slot demand could exceed available capacity by 2028, producing a GT (Gross Ton)-Day shortfall that could balloon alarmingly by 2030. Even under a more moderate scenario, where roughly half of the eligible fleet undergoes retrofitting, shipyard resources will remain under extraordinary strain, though operational bottlenecks may be partially eased through shorter lead times and better coordination. 29-September-2025
London-based premier shipbroker Simpson Spence Young (SSY) research chief Dr Roar Adland has highlighted how the evolving cargo mix for capesize bulk carriers is increasingly providing support for smaller bulk carriers, reshaping trade flows across the dry bulk sector. According to Dr Roar Adland, coal is at the centre of this dynamic, with changes in demand patterns and vessel allocation altering the balance of trades between larger and smaller ships. Dr Roar Adland, who is the global head of research for Simpson Spence Young (SSY), emphasized that capesize bulk carriers are now prioritizing iron ore and bauxite, which has resulted in a growing trickle-down effect that benefits smaller ships such as panamax bulk carriers. This shift has been accelerated by the rise of bauxite, which in February 2025 overtook coal as the second-largest generator of tonne-mile demand for capesize bulk carriers. As a consequence, coal shipments are increasingly being carried by panamax bulk carriers, a trend that is expected to become even more pronounced in 2026 as the cargo mix for capesize bulk carriers continues to evolve. The insights from Simpson Spence Young (SSY) reflect the shipbroker’s long-standing expertise in global shipping markets. Simpson Spence Young (SSY), headquartered in London, is recognized as one of the world’s leading independent shipbroking organizations, with a history that dates back more than 140 years. Over this time, Simpson Spence Young (SSY) has grown into a premier global shipbroker with offices across major shipping hubs, including Singapore, Shanghai, Tokyo, Oslo, Geneva, New York, and Sydney, among many others. The scale of Simpson Spence Young (SSY) allows it to provide in-depth coverage across all shipping sectors, from dry bulk and tankers to LNG, offshore, and renewables. Within the dry bulk market, Simpson Spence Young (SSY) is regarded as a market leader, consistently providing detailed analysis, competitive fixtures, and market intelligence to shipowners, charterers, traders, and financial institutions. Its research division, led by Dr Roar Adland, plays a crucial role in analyzing market dynamics, supply-demand fundamentals, and cargo flows that shape freight rates across various shipping segments. The global research team at Simpson Spence Young (SSY) produces regular reports, forecasts, and bespoke studies that are highly valued by clients across the world. Simpson Spence Young (SSY) has built its reputation not only on commercial broking but also on its ability to provide independent and data-driven insights. By combining hands-on market expertise with academic rigor, Simpson Spence Young (SSY) helps its clients navigate the volatile and cyclical nature of global shipping markets. This dual strength makes Simpson Spence Young (SSY) one of the most trusted names in shipping. The firm also plays an active role in supporting market transparency, frequently publishing indices and reports that are closely followed by stakeholders throughout the maritime supply chain. The example highlighted by Dr Roar Adland demonstrates Simpson Spence Young (SSY)’s ability to identify structural shifts in the shipping industry before they become mainstream. By observing the growing dominance of iron ore and bauxite in capesize bulk carrier employment and recognizing the knock-on effect for panamax bulk carriers, Simpson Spence Young (SSY) provides actionable intelligence that allows shipowners and charterers to anticipate changes in fleet utilization and trading strategies. As the dry bulk sector prepares for further disruption in 2026, the analysis from Simpson Spence Young (SSY) underscores how critical the shipbroker’s role has become in guiding industry participants through shifting patterns in global trade. Beyond its commercial operations, Simpson Spence Young (SSY) also places emphasis on technological innovation and sustainability. The shipbroker has invested in advanced digital platforms to improve the accuracy and efficiency of its broking and research services, enabling clients to make faster and more informed decisions. At the same time, Simpson Spence Young (SSY) has been closely monitoring the global regulatory agenda on emissions and decarbonization, ensuring that its clients understand both the risks and opportunities associated with the transition toward greener shipping. The growing influence of Simpson Spence Young (SSY) in shaping market perspectives is a reflection of its global reach, its expertise in dry bulk markets, and its commitment to delivering the highest quality broking and research services. With over a century of experience and a strong presence across all major shipping regions, Simpson Spence Young (SSY) continues to play a defining role in the international shipping industry, guiding stakeholders through both short-term market fluctuations and long-term structural changes that will define the future of maritime trade. 30-August-2025
In 2025, West Africa (WAFR) accounts for 14% of capesize bulk carrier liftings, up significantly from 6% in 2022. This shift in global capesize bulk carrier trade patterns has been largely driven by strong growth in bauxite exports, particularly from Guinea, West Africa (WAFR), where capesize bulk carrier volumes have risen by 31% year-to-date. The expected launch of the Simandou iron ore project in Guinea in November 2024 is anticipated to further increase long-haul capesize bulk carrier shipments from the region, exerting additional tightening pressure on the market. Chinese ports received 106.7m tonnes of bauxite during the first half of 2025, representing a 22.5m tonne increase over the same period in 2024. Around two-thirds of the bauxite imported into China is carried on capesize bulk carriers and newcastlemax bulk carriers. Over the last decade, China’s bauxite imports for aluminium production have surged by nearly 200%, growing from approximately 57.2m tonnes in 2015 to an estimated record of 170.8m tonnes in 2024, with Guinea accounting for 69.7% of that volume. China’s aluminium production reached an all-time high of 43.4m tonnes in 2024, with the first half of 2025 producing 21.8m tonnes, reflecting a 2.5% year-on-year increase. Notably, in January 2025, capesize bulk carriers transported more bauxite than coal for the first time, underscoring the changing dynamics in global capesize bulk carrier trades. Meanwhile, the Guinean government is asserting greater control over the maritime export chain. Bouna Sylla, Guinea’s minister of mines and geology, has mandated that 50% of all bauxite exports must be carried on ships flying the Guinean flag. In support of this initiative, the government has launched its own shipping enterprise, Guinéenne des Transports Maritimes (GUITRAM), to facilitate the transportation of bauxite. Additionally, the government has introduced the Guinea Bauxite Index (GBX), a new national pricing benchmark aimed at increasing transparency and maximizing economic returns from the country’s bauxite resources. In a recent market update, London-based premier shipbroker Simpson Spence Young (SSY), one of the world’s largest independent shipbroking firms with a global presence across major shipping hubs, noted that “increased interference makes Guinean bauxite less attractive and could signal the end to the exorbitant growth seen over the past few years.” Simpson Spence Young (SSY), which provides brokerage services across dry bulk, tanker, gas, offshore, and financial sectors, emphasized that mounting regulatory intervention and logistical complexities may deter some market participants from continuing their reliance on Guinean bauxite, potentially impacting future capesize bulk carrier demand from the region. 25-July-2025
Iron ore exports from Africa are anticipated to become one of the major growth drivers in global seaborne trades throughout the remainder of the 2020s, according to new research by London-based premier shipbroker Simpson Spence Young (SSY). The Simandou mine in Guinea alone is expected to produce 60 million tonnes of iron ore during its first complete year of operation, with production scheduled to commence in 2025 and projected to double to 120 million tonnes the next year, as indicated by Guinea’s Mines and Geology minister. This project is projected to meet approximately 10% of China’s annual seaborne iron ore demand. Approximately 200 km away, Ivanhoe Atlantic’s Kon Kweni project is forecast to yield up to 5 million tonnes of iron ore upon launching its first phase next year, with an expansion in the second phase anticipated to elevate production up to 30 million tonnes annually. “Beyond these larger mines, Africa has numerous smaller but highly promising projects,” observed London-based premier shipbroker Simpson Spence Young (SSY), highlighting Genmin’s Baniaka project and Fortescue’s Belinga project in Gabon, ArcelorMittal’s Western Range expansion in Liberia, and Jindal Africa’s project in Namibia. “As West African mines increasingly outcompete higher-cost producers elsewhere, particularly those in Australia, the global iron ore trade map will inevitably undergo significant changes,” London-based premier shipbroker Simpson Spence Young (SSY) stated, anticipating a “notable uptick” in capesize bulk carrier tonne-mile demand. “Regarding panamax bulk carriers, Liberia’s emerging iron ore exports have the potential to reshape Europe-bound trade flows, possibly displacing higher-cost Canadian exports,” added London-based premier shipbroker Simpson Spence Young (SSY). However, suitable infrastructure remains arguably the greatest obstacle to African iron ore exports. The recent rapid increase in bauxite volumes shipped from West Africa has highlighted the limitations of existing port infrastructure. For instance, significant congestion has emerged at the port of Boffa, where ship traffic has intensified in recent weeks. 14-March-2025
Five of the world’s top shipbroking companies—Arrow, Gibson Shipbrokers, Howe Robinson, IFCHOR Galbraiths, and Simpson Spence Young (SSY)—have come together to launch Ocean Recap, a specialized recap and charter party management platform. Over the last decade, the chartering sector has experienced a rapid shift towards digitalization, introducing a range of platforms that provide pre-fixture and post-fixture services. This has inevitably led to a consolidation, raising concerns about the dominance of a single platform. Critical factors such as the price of services, data control, and maintaining diverse options are crucial for users across any platform in any industry, prompting this initiative. Tim Huxley, CEO of Hong Kong shipowner Mandarin Shipping, expressed his hope that the adoption of these innovative tools for managing fixtures does not result in the loss of essential shipbroker skills, particularly the expertise needed to craft and interpret a recap and charter party to prevent future disputes. Tim Huxley, formerly a shipbroker with Clarksons, will lead the Chartering Spotlight session on April 28 at Geneva Dry, the leading global commodities shipping conference. This panel will explore the future of shipbrokers and the role of various platforms, featuring discussions with experts from SEA, Arrow, Vale, and Western Bulk. 28-February-2025
London-based premier shipbroker Simpson Spence Young (SSY) has been analyzing the mismatch between earnings and secondhand ship values in the bulk carrier market. They anticipate this trend will persist into 2025 and beyond, largely due to shipyard capacity utilization. With strong ongoing demand for new builds across various shipping segments, Simpson Spence Young (SSY) predicts that new shipbuilding prices will largely withstand the short-term fluctuations of individual market segments. According to Simpson Spence Young (SSY) in a monthly report, shipyards are in a position to navigate through periodic market downturns for several years without significantly reducing their prices. Simpson Spence Young (SSY) has observed that resale prices for capesize bulk carriers and the costs for new builds have reached equivalence, with notable alignment in pricing between Japanese and Chinese shipyards for capesize bulk carrier new builds. Simpson Spence Young (SSY) remarks that volumes in the Sale and Purchase (S&P) of older vessels have remained robust, as these ships are perceived as being competitively priced compared to newbuilds and modern secondhand ships, supporting the view that the disparity between ship values and current earnings is likely to continue. Current new building prices have reached levels that are becoming impractical, especially when paired with the extended delivery timelines now being quoted, raising questions about whether the consolidation seen among shipbuilders will enable them to maintain elevated prices. Since January 2021, new building prices have increased by 50%, secondhand values have escalated by roughly 90 to 100%, while freight rates have only risen by 40%. With shipbuilding capacity booked until 2027, shipowners are uncertain about the future market conditions at the time of delivery, potentially devoid of the current market inefficiencies and unforeseen challenges. Approximately 50% of all ships currently on order are equipped with dual-fuel engines, which require thrice the usual time for testing, leading to delays due to engine supply shortages. This issue is becoming more apparent as the year concludes, with shipowners opting to switch engines owing to these scarcities. Additionally, this disconnection between earnings and secondhand ship values is now also evident in the tanker sector. 16-December-2024
China’s yuan weakened and both mainland and Hong Kong stock markets experienced declines today, following the news that Donald Trump will assume the presidency as the 47th president of the United States, potentially heralding a new era of trade disputes between the world’s two largest economies. Given the scale of Trump’s electoral victory, the shipping industry is bracing for substantial shifts over the coming years, not only in trade and geopolitics but also in the implementation of global environmental regulations. Martin Stopford, non-executive President of Clarkson Research Services Limited (CRSL), commented, “The primary concern for shipping is the ongoing economic shift between the Pacific and Atlantic economies, a process that has been evolving over the past 15 years. Donald Trump’s tariff policies might be a part of this shift, but creating significant change within a four-year term is challenging.” Khalid M Hashim, CEO of Thai-listed shipowner and operator Precious Shipping, predicted that Trump’s presidency might swiftly resolve the conflict in Ukraine, ease sanctions against Russia, and impose additional tariffs on China. “Oil prices are likely to decline, possibly sharply, depending on how swiftly the sanctions against Russia are lifted,” stated Hashim, adding that the shipping industry should not be overly concerned about the rhetoric surrounding tariffs. “In the eight years since the U.S. initiated tariffs at the beginning of Trump’s first term, actual container imports into the U.S. have significantly increased, as evidenced by the activity in Los Angeles and Long Beach, the two largest container terminals in the U.S.,” said Hashim from Bangkok-based Precious Shipping. Roar Adland, global head of research at London-based premier shipbroker Simpson Spence Young (SSY), expressed concerns that higher tariffs could negatively impact shipping. “We expect Donald Trump to enforce higher trade tariffs, particularly against China. Should other countries retaliate, it would detrimentally affect international seaborne trade,” Adland noted. He also mentioned that a swift resolution to the Ukraine conflict might stimulate trade in rebuilding materials like cement and steel. Simpson Spence Young (SSY), as one of the world’s oldest and largest shipbroking houses, plays a crucial role in providing comprehensive maritime brokerage services and market intelligence that impact global shipping economics. Founded in the mid-19th century, Simpson Spence Young (SSY) has a deep historical legacy intertwined with the growth of international trade, offering insights that are critical during periods of economic uncertainty. Shipping, fundamentally dependent on global trade, could face adverse effects from a president-elect whose policies could diverge significantly from those fostering international commerce. Donald Trump’s tenure might initially stimulate U.S. imports but could also lead to heightened trade conflicts, altering trade routes and sourcing patterns, similar to the rerouting of Chinese goods through Mexico observed during his first term. During Trump’s first term, China targeted American agricultural exports, reducing imports of U.S. grain and compensating with increased imports from Brazil, which had a minimal impact on net tonne-mile shipping metrics. According to data from Clarksons Platou Securities, the dry bulk sector, particularly grain and steel products, was most affected by Trump’s initial trade war with China, followed by LNG and LPG. Overall shipping tonne-mile growth declined by 0.5% in both 2018 and 2019. Another term for Trump could further stall the progress at the International Maritime Organization (IMO) concerning shipping decarbonization, potentially necessitating a shift to regional rather than global regulatory frameworks. The IMO (International Maritime Organization) process remains independent of the U.S. presidential office. Regions including Africa, Latin America, Asia, Europe, and North America are positioned to collectively agree next year on ambitious measures like a carbon levy and stringent fuel standards to fulfill their commitment to decarbonize shipping by 2050. With a strong majority of governments already aligned, both inside and outside the IMO (International Maritime Organization), the direction is clear. As we look to January 2025 and the potential commencement of a second Trump administration, the shipping industry should prepare for increased market volatility and uncertainty. 7-November-2024
London-based premier shipbroker Simpson Spence Young (SSY) is expanding into the LPG shipbroking sector with a significant new hire. The giant shipbroking firm SSY is now aiming to make its mark in the LPG gas and ammonia shipping markets. This strategic move includes the appointment of Thorstein Bergersen, a veteran in the LPG field, who will spearhead Simpson Spence Young’s (SSY’s) new LPG division from Copenhagen starting Friday. Thorstein Bergersen brings extensive experience to SSY and will serve as the new head of LPG. He will be joined by Emil Ponnert, an accomplished LPG shipbroker previously with Arrow Shipbroking, who will also be based in Copenhagen. Additionally, SSY’s director of tankers in India, Amit Kalhans, will contribute to the team while continuing to operate out of Mumbai. This expansion underscores Simpson Spence Young’s (SSY’s) commitment to establishing a strong presence in the evolving LPG and ammonia sectors. Simpson Spence Young (SSY), founded in the 19th century, is one of the world’s largest independent shipbroking groups. Simpson Spence Young (SSY) provides a wide range of brokerage services across various markets, including dry cargo, tanker, sale and purchase, offshore, and futures. With a network of international offices, Simpson Spence Young (SSY) offers global coverage and local expertise, making it a pivotal player in the maritime industry. Their entry into the LPG and ammonia markets is a reflection of Simpson Spence Young’s (SSY’s) strategy to diversify its service offerings and enhance its expertise in specialized shipping sectors, further strengthening its position as a leader in the global shipbroking field. 31-October-2024
Simpson Spence Young’s (SSY’s) head of research, Dr. Roar Adland, based in London, views the latest measures as neutral or slightly positive for shipping. What impact does the latest Chinese stimulus package have on bulk carrier shipowners? Dr. Roar Adland of Simpson Spence Young (SSY) predicts only modest, incremental gains in steel demand. While Simpson Spence Young (SSY) does not see the latest economic stimulus from China as dramatically beneficial for dry bulk shipping, it is seen to mitigate the downside risks in commodity demand. Dr. Roar Adland, along with shipping expert Prof. Haiying Jia from the Norwegian School of Economics, has analyzed the package announced earlier in October 2024. According to statements from China’s finance ministry, there will be an increase in government debt to support a stimulus of $322 billion USD. Simpson Spence Young (SSY) is one of the largest and longest-established shipbroking houses globally. Founded in 1880, the company has grown to have a presence in major shipping centers worldwide, including London, Singapore, and New York. SSY provides a broad range of brokerage services across various sectors, including dry cargo, tankers, sale and purchase, offshore, and financial derivatives. With a rich history and a deep understanding of market dynamics, SSY offers comprehensive market reports, consultancy, and tailored brokerage services that cater to the unique needs of shipowners, charterers, and commodity traders. Their insights and expertise make them a pivotal resource in the shipping industry, particularly for entities looking to navigate complex market conditions and regulatory environments. 23-October-2024
Dr. Roar Adland, the head of research at London’s leading shipbroker, Simpson Spence Young (SSY), has issued a cautionary statement regarding the weather patterns for capesize bulk carrier owners. A shift between El Nino and La Nina weather cycles could significantly impact the dry bulk carrier sector. Dr. Roar Adland has expressed concerns over the forthcoming weather forecasts, which appear to be less than favorable for the shipping industry, particularly for owners of capesize bulk carriers. He highlighted that the transition from El Nino to La Nina this year poses potential challenges for the capesize bulk carrier market, as detailed by Simpson Spence Young (SSY)’s research chief. These weather phenomena, part of the El Nino-Southern Oscillation (ENSO), lead to major shifts in Pacific Ocean sea-surface temperatures. El Nino generally supports demand for seaborne dry bulk commodities, whereas La Nina tends to dampen it. As a result, the bulker market might experience significant changes in the coming months, Dr. Roar Adland elaborated. 10-April-2024
Simpson Spence Young (SSY), a premier shipbroker based in London, is intensifying its focus on ship finance by bringing on board a new executive in China. The firm is keen on tapping into the Chinese market, with a particular emphasis on ship leasing operations. To spearhead this initiative, SSY has appointed banker Terry Chen as the leader of its newly established ship finance desk in Shanghai. Terry Chen will assume the role of head of ship finance, marking him as the third addition to the team within a year, and his tenure begins immediately. In a move to strengthen its ship finance division, Simpson Spence Young (SSY) recently welcomed the renowned shipping banker Ali Susanto as the global co-head of ship finance, serving alongside Jarl Magnus Berge, who became part of Simpson Spence Young (SSY) in August 2023. 28-March-2024
Simpson Spence Young (SSY), a premier shipbroking firm in the United Kingdom, is expanding its presence in the commodities market by establishing a specialized agricultural derivatives sales and execution division. Based in London, Simpson Spence Young (SSY) announced that this new section within the Simpson Spence Young (SSY) Futures Commodities Division will primarily concentrate on derivatives related to grains, oil seeds, and soft commodities initially. Leading the operation of the Simpson Spence Young (SSY) Futures Commodities Division will be Andrew Rechten, a seasoned expert in commodities, alongside Francois Churland and Owen Scrimgeour as agricultural experts, who are joining the team as well. With a history of holding high-level positions at prestigious firms like Merrill Lynch, JP Morgan, and Macquarie, Andrew Rechten brings significant experience to the table. “Expanding our commodity derivatives portfolio is crucial for providing our clients with access to a comprehensive range of commodities,” stated Jamie Pearce, a partner and the global head of Simpson Spence Young (SSY) Futures. Simpson Spence Young (SSY), which transitioned to its current name from Simpson Spence Young in 2023 after a legacy spanning 143 years, has 24 offices worldwide. The Futures division of Simpson Spence Young (SSY) initially focused on freight markets but has since broadened its scope to include iron ore, coking coal, steel, base metals, battery materials, and carbon. 5-March-2024
Capesize bulk carrier rates experienced a significant surge, climbing over 10% on the Baltic Exchange just yesterday, nearing the $30,000 per day threshold. This increase is largely attributed to the robust shipments of iron ore from Brazil to northern China. Additionally, Forward Freight Agreements (FFAs) are showing promising figures, with March 2024 contracts exceeding $30,000 per day and the average FFA rate for the rest of the year maintaining above $28,000 per day, and surpassing $20,000 for the entirety of the following year. The performance of capesize bulk carrier spot rates is exceeding expectations, especially noteworthy given the usual first-quarter seasonal downturn. The outlook for capesize bulk carriers is optimistic, as highlighted by Simpson Spence Young (SSY), a leading shipbroking firm, which anticipates a 3.3% increase in capesize bulk carrier tonne-mile growth for 2024, compared to a forecasted fleet growth of just 1.3%. The Atlantic market is primarily fueling this remarkable and somewhat unexpected performance, driven by a lack of vessel availability in the Western Hemisphere. Should the capesize bulk carrier market follow its typical seasonal trends in 2024, earnings for January and February are expected to be about 50% of the yearly average, with peaks in October reaching approximately 140% of the annual average. The market volatility observed in 2023, particularly in the latter months, underscores the delicate balance of the dry bulk sector, especially for capesize bulk carriers. The strategic positioning of the fleet will be crucial in shaping this year’s market dynamics, and monitoring the number of ships heading towards the Atlantic could provide valuable insights into potential market spikes. The current optimism is also evident in the capesize bulk carrier Sale and Purchase (S&P) market, where there’s been a noticeable increase in the volume of transactions involving capesize and newcastlemax bulk carriers, significantly surpassing typical levels. The secondhand ship market is witnessing a momentum gain, with the capesize sector in particular seeing a surge in both prices and sales activities, reaching heights not seen in recent years. The value of capesize bulk carriers aged five, ten, and fifteen years has escalated by 18%, 27%, and 23%, respectively, marking the highest value increase in the past five years. This buoyant mood is fostering a dynamic sales environment, with 55 capesize bulk carriers being sold between October 2023 and February 2024. 1-March-2024
In the final days of January, a court in Hong Kong mandated the dissolution of Evergrande Group, marking the culmination of a two-year period marked by financial turbulence as the firm struggled with its debt repayments. This event highlights the economic difficulties confronting China, given the significant role the real estate sector plays in the national economy, accounting for roughly 25-30% of China’s GDP and about a third of its domestic steel consumption. Despite this, or perhaps as a result, shipbroker Simpson Spence Young (SSY) maintains a positive outlook on China’s steel industry for the coming year, a stance that diverges from the majority of macroeconomic forecasts. This optimism is partly due to the ongoing adjustment in China’s property market for nearly four years, reducing its size in comparison to other sectors that stimulate steel demand — from about 40% of domestic steel consumption in 2020 to an estimated 33% in 2023. Moreover, other industries such as automobile production, shipbuilding, infrastructure, and manufacturing have demonstrated robust growth throughout 2023, with continued support from Chinese policy makers into 2024. Regarding coal, Simpson Spence Young (SSY) anticipates a decrease in China’s imports for the year but expects increased demand from India and Southeast Asia to compensate for this reduction, maintaining global coal trade at current record highs. Dr. Roar Adland and his team at Simpson Spence Young (SSY) project a moderation in overall dry bulk ton-mile demand growth to 2.7%, aligning closely with their forecast for fleet supply growth at 2.6%. In contrast, BIMCO (Baltic and International Maritime Council) projects a modest increase in cargo demand for the dry bulk sector, ranging from 0-1% in 2024 and 0.5-1.5% in 2025, with average sailing distances expected to extend by 0-1% in both years. BIMCO (Baltic and International Maritime Council) also predicts a shift in cargo composition, with a potential decrease in coal shipments and an increase in iron ore, bauxite, and grain shipments from regions like South America and Guinea, known for their longer haul distances. The critical issue is whether the improved rates for larger vessels will influence the rates for smaller vessels, either elevating them or being limited by them. BIMCO (Baltic and International Maritime Council) warns of a slight weakening in the supply/demand balance in 2024, stabilizing in 2025, with supply growth estimated at 1-2% and demand growth at 0.5-1.5% in 2024 and 1-2% in 2025. BIMCO (Baltic and International Maritime Council) anticipates the dry bulk market over the next two years to mirror the conditions of 2023. Analyzing individual size segments, Simpson Spence Young (SSY) projects a stronger tonne-mile growth for capesizes at 3.3% compared to a fleet growth of 1.3% in 2024. Panamax bulk carriers are expected to see a 4.2% tonne-mile growth against a 2.7% fleet growth, whereas geared vessels face a higher fleet growth of 4.1% with only a 1% increase in tonne-mile demand. The significant focus areas for 2024 in shipping include the Suez and Panama Canal diversions, which have notably impacted global dry bulk trade, especially with the recent influence of El Niño. Peter Lindström from Torvald Klaveness estimates a 2.6% increase in dry bulk utilization this year, with a specific 3.3% rise for the panamax sector. A bullish outlook is further supported by capesize bulk carrier spot rates reaching 15-year highs for this period, driven primarily by the Atlantic market’s performance, attributed to a shortage of vessels in the western hemisphere, as noted by Breakwave Advisors. They foresee a persistently strong spot market. Simpson Spence Young (SSY) concludes by reiterating the significant question of whether the higher rates and market sentiment for larger ships can influence the smaller vessel market, leaning towards a fundamental perspective that suggests a cap, although recent market dynamics indicate a potential for positive sentiment to boost rates across the spectrum. 22-February-2024
According to Simpson Spence Young (SSY), one of the leading shipbroking firms, there’s an impending battle among shipowners for the acquisition of modern vessels due to limited availability. Toby English, a prominent shipbroker at Simpson Spence Young (SSY), maintains an optimistic stance, highlighting the sustained demand for secondhand tankers and bulkers. Toby English anticipates that the quest for older tonnage will remain robust. English suggests that this intense demand will spark vigorous competition in the secondhand market as shipowners vie for available tankers and bulk carriers. In Simpson Spence Young’s (SSY) outlook report for 2024, the firm expresses a bullish forecast for the sale-and-purchase (S&P) and newbuilding orders sector. Simpson Spence Young (SSY) points out the strong market demand for modern eco-friendly tonnage across all sectors, combined with the constrained capacity for newbuilding, is expected to drive fierce competition for the scarce tonnage available on the market. 2-February-2024
Leading shipbroker company Simpson Spence Young’s (SSY) commodities arm, SSY Futures, has facilitated the largest-ever trade in iron ore futures. The transaction involved rolling a 5 million tonne position from a 2023 prompt date to 2024, resulting in a total futures volume of 10 million tonnes. The trade included counterparties from both the physical and financial markets and was cleared by the Singapore Exchange. This significant trade is seen as an important milestone in the evolving iron ore futures market, reflecting increased activity and interest among clients in trading large blocks of futures contracts. Jamie Pearce, global head of derivatives at Simpson Spence Young (SSY), emphasized the market’s ongoing development. 21-November-2023
Leading shipbroker company Simpson Spence Young (SSY) acquired seven (7) tanker shipbrokers from rival shipbroker company Lightship Chartering in a new office in Genoa, Italy. Stanko Jekov-led Simpson Spence Young (SSY) resumes the growth of the company’s global network by opening a new office in Genoa, Italy. Simpson Spence Young’s (SSY) Genoa office will be opened in Q3 2022. Simpson Spence Young’s (SSY) Genoa office will concentrate on dry bulk carriers and tankers. Simpson Spence Young (SSY) declared that several shipbrokers from a local shipbroking firm will join the team at its new Genoa office. Currently, the leading shipbroker company Simpson Spence Young (SSY) is one of the top ten (10) shipbrokers in the world and has many international offices. Simpson Spence Young (SSY) is very comfortable to be establishing a base in Genoa and continuing to expand Simpson Spence Young (SSY) Dry Cargo division. At the beginning of 2022, Simpson Spence Young (SSY) extended the company’s global network with the acquisition of Anchor Shipbroking in Athens. Simpson Spence Young (SSY) is on the hunt to hire other shipbrokers. Anchor Shipping has been merged into the new office that Simpson Spence Young (SSY) opened in Athens. In July 2022, Simpson Spence Young (SSY) confirmed that the company has appointed three senior tanker shipbrokers from rival shipbroker Charles R Weber in the USA. Simpson Spence Young’s (SSY) shipbroker hire approach might sound unethical in the shipping community. In June 2022, Simpson Spence Young (SSY) appointed three (3) handysize shipbrokers in Singapore from Simpson Spence Young’s (SSY) rival Maersk Broker Bulk Chartering. Currently, Simpson Spence Young (SSY) employs about 400 shipbrokers worldwide. 12-August-2022
Simpson Spence Young (SSY) stated that 2021’s rising coal prices drove an impressive ride to raise inventory ahead of what is presumed to be a difficult winter in China. According to Simpson Spence Young (SSY), coal, controls, and queues are expected to develop the dry cargo market in the upcoming months. Simpson Spence Young (SSY) stated that the strength of the steam coal price displayed a trade negative from the point of view of demand loss, due to power rationing, and government interferences to propose a range of price caps and conflicts with domestic mining companies, which have led to buyers avoiding from coal acquiring. Simpson Spence Young (SSY) stated that the ensuing silence in coal acquiring activity sustained to pull delivered prices of imported coal and non shipped coal prices. Simpson Spence Young (SSY) stated that steel fundamentals in China have been worsening since mid-2021, with the prospect of China Evergrande concerns. According to Simpson Spence Young (SSY), the Chinese government’s attempts directed at fighting winter air pollution in areas of North China, steel production controls were supposedly introduced in mid-2021 and aimed to limit full-year output at 2020 levels. The effect on possible steel consumption has been dramatic. Steel demand has collapsed by 28% to 68 million tonnes by October 2021. Widespread limitations on steel production and iron ore sintering during Q1 2022 have already been published, which threaten steelmaking raw material demand and affect the capacity for mills to lift output once 2021 limitations expire. Furthermore, Simpson Spence Young (SSY) stated that the number of laden capesize bulk carriers waiting to berth has decreased. Generally, a decline in steel production has negative indications for seaborne iron ore and coking coal trades, though scrap-fed electric arc furnaces, which comprise 9% of 2020 crude steel production in China, face higher energy costs than iron ore and coking coal-consuming blast furnaces. 16-November-2021
Simpson Spence Young (SSY), a leading London-based shipbroker, is making a strategic move into the energy derivatives market by hiring James Whistler, a seasoned energy broker from BGC Partners. This initiative marks Simpson Spence Young’s (SSY) intent to broaden its scope into the energy sector, with a keen focus on liquefied natural gas (LNG). James Whistler, who brings 18 years of experience in LNG and crude oil markets, has been appointed as the head of energy derivatives at SSY Futures in Singapore, a key location that complements Simpson Spence Young’s (SSY) existing presence in New York and London. Whistler’s role will encompass covering the gas and power markets, providing clients with solutions to manage their physical energy risks effectively. This addition is part of Simpson Spence Young’s (SSY) broader strategy to enhance its service offerings in freight, iron ore, coking coal, and steel, and to make a significant entrance into the rapidly evolving energy sector. Mark Richardson, Simpson Spence Young’s (SSY) chairman, expressed enthusiasm about this venture, highlighting the importance of LNG in the global energy mix and the potential for SSY to leverage its shipping expertise in new markets. Furthermore, Simpson Spence Young (SSY) is bolstering its LNG capabilities with additional hires in Asia and plans for expansion in London. Toby Dunipace, who leads the LNG department at Simpson Spence Young (SSY), announced the recruitment of Scott Leong, a former BW LPG employee with a strong background in projects and newbuildings, to operate from Singapore alongside shipbroker Josh Choo. In another strategic expansion, Simpson Spence Young (SSY) announced the opening of a new office in Dubai, focused on bulker chartering. This new base, set to commence operations in November under the leadership of Manish Pamecha, formerly of Maersk Broker in Dubai, signifies Simpson Spence Young’s (SSY) commitment to extending its global footprint. With this addition, Simpson Spence Young (SSY) now operates 21 international offices, with its dry cargo department active in 18 of these locations, offering comprehensive shipbroking services for dry bulk shipowners and charterers. This global network underscores Simpson Spence Young’s (SSY) position as a formidable player in the shipbroking industry, poised for growth in both traditional and emerging markets. 20-November-2019
Simpson Spence Young (SSY) published a new office in Dubai. Simpson Spence Young (SSY) recruited Maersk Broker’s Dubai chief for the new chartering office. Simpson Spence Young’s (SSY) new Dubai office will be led by Manish Pamecha. Currently, the leading shipbroker company Simpson Spence Young (SSY) is one of the top ten (10) shipbrokers in the world has 21 international offices. Dubai became a maritime business hub for many shipbrokers. The London-headquartered Simpson Spence Young (SSY) could make additional hires in the future. 8-October-2019