The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, touched a near three-year high on Monday, supported by higher rates across all vessel segments.

 

The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, gained 23 points, or 1.73 percent, at 1,355 points - the highest since Nov. 2014.

 

"The market has been solely driven forward by the capesize shipping segment this year. Only recently have we seen panamax and handysize climb to profitable freight rates,"  said Peter Sand, Chief Shipping Analyst at  industry lobby  group BIMCO.

 

"But it all originates from various solid Chinese demand, mainly imports of coal and iron ore."

Given the media focus on autonomous cars, it might be expected that self-driving vehicles will be in use before autonomous ships. The reality is quite the reverse, according to a report on the future of autonomous maritime systems produced by Lloyd's Register, QinetiQ and the University of Southampton.

Applied artificial intelligence, low cost low size sensors, increased connectivity, improved cyber security and better energy management are all likely to drive rapid and disruptive change in the maritime industry. 

Major initiatives by organizations, such as Rolls Royce, Japanese shipbuilders and Norway-based Kongsberg (in partnership with Yara, a Norwegian chemical company) have all revealed plans to develop all-electric and autonomous container ships by 2020. There is a fierce race to be first across the finish line, states the report.

At an Argus bunker briefing held during London's International Shipping Week, Argus editor Stefka Wechsler based her assessment on the dictum that whatever the major box lines do, the rest will follow.

And the indications are that the big shipping lines will take this direction.

But for bunker markets in the Americas the outlook will be mixed.

2020 will see higher demand for distillates. In the Americas, the US East Coast along with Venezuela, Colombia and Ecuador will be 'poorly positioned' for 2020 as these markets are short on distillates.

The looming IMO regulation to restrict bunker fuel sulphur content to a maximum of 0.5% from 2020 may result in higher ocean transportation costs and profound changes in ship design, industry players have warned.

The world's largest automobile market is studying when to implement a ban on petrol and diesel cars. Xin Guobin, China's vice minister of industry and information technology, said the government is working on a timetable to end production and sales of these vehicles.

Addressing a car forum in Tianjin, China, over the weekend, Xin said China was considering following in the footsteps of some European countries.

"Many countries have adjusted development strategies ... Some countries have worked out a timetable to stop production and sales of traditional-fuel vehicles," Xin said.

"Now the Ministry of Industry and Information Technology has launched a study as well, and will work with related departments on a timetable for our country," he said.

Hurricane Irma has departed Florida, leaving the state to begin the long process of rebuilding. Among the foremost challenges in the coming days will be resolving fuel shortages, which are affecting citizens and first responders alike.

Florida's seaports are key to the state's petroleum logistics network, and the Coast Guard is working as quickly as possible to reopen them safely. Governor Rick Scott emphasized Tuesday morning that tanker trucks are loading from storage tanks at Port Tampa Bay and Port Everglades, even though tanker vessels have not been able to enter yet to replenish the ports' supplies.  

Port Everglades, which handles fuel shipments for 12 Florida counties and several international airports, said in a statement that it has reopened to commercial traffic during daylight hours only, with no draft restrictions.

The cruise ships Harmony of the Seas, Carnival Conquest, and Carnival Splendor were waiting to enter, along with three tankers and two cargo ships.

Another big hurricane, another  temporary waiver of the Jones Act -- the 1920 law mandating that goods and passengers shipped between U.S. ports be carried in U.S.-flagged ships, constructed primarily in the U.S., owned by U.S. citizens, and crewed by them or by U.S. legal permanent residents.

Circumstances did indeed demand  a new stay on this dumb law -- but it would be better to get rid of it altogether, as  Senator John McCain and others have argued.

The Jones Act was meant to ensure that the U.S. has a reliable merchant marine during times of national emergency. It has devolved into a  classic protectionist racket that benefits a handful of shipbuilders and a dwindling number of U.S. mariners. It causes higher shipping costs that percolate throughout the economy, especially penalizing the people of Alaska, Guam, Hawaii and Puerto Rico.