German utility RWE has laid off some of its offshore wind employees in the US following president Donald Trump starting his assault on the industry.
RWE employs around 1,500 people in the US and its offshore wind section is headquartered at the company’s office in Boston.
In a regulatory filing, RWE Offshore Wind Services, a US subsidiary of the company, stated that it would cut its Boston-area workforce by May 6. The filing revealed a plan to lay off 73 employees.
The layoffs will mostly affect workers supporting the long-term development of offshore wind projects across the country.
“Last year we announced that, due to market conditions and increased risk profile, we would delay certain expenditures related to our US offshore wind development projects. With the current regulatory and political environment, we have decided to reduce the scope of our development activities and the size of our US offshore team,” the company said in a statement.
This, however, comes as no surprise as the company was already bracing for an eventual Trump election win.
RWE said in November last year that the possibility of a new administration could jeopardize its operations and that it might have to delay its plan to spend €55bn ($60bn) on green technologies globally by 2030.
Trump stopped the sale of new leases and project permitting on his first day in office. His administration is currently reviewing projects and has stated that it would differentiate between those under development versus those that are proposed.
RWE currently has one offshore wind project in the US that is at an advanced stage of development, in a joint venture with National Grid, located off the coast of New York.
The two submitted their 2.8GW Community Offshore Wind project into New York’s offshore wind Round 5 in October last year. The project should see its first offshore wind power delivered in 2030 and both phases are scheduled to be fully operational in 2032.
It will use two proposed interconnection points, one in Brooklyn at the ConEd Clean Energy Hub while the other will interconnect at the E.F. Barrett Power Station in Island Park.
The proposed project will open 700 jobs, deliver up to $300m in wages, and drive some $3bn in economic activity, including over $2bn in direct in-state spending. Community Offshore Wind is also looking to invest up to $250m in developing crucial New York manufacturing facilities, accelerating the growth of the local offshore wind supply chain.
Indonesia’s Pertamina has awarded a four-year contract to a jackup rig owned by Chinese driller CNPC Petroleum Offshore Engineering (CPOE).
The contract for the CPOE 16 rig will be both the rig’s and the company’s first drilling project in Indonesia, marking its first foray into Southeast Asia’s offshore drilling services sector.
According to a company statement, this is also CPOE’s largest contract to date. It is valued at over 1bn yuan ($137.7m).
The Chinese offshore drilling contractor, a subsidiary of China National Petroleum Corporation, also stated that it had been actively pursuing its international strategy, focusing on the Southeast Asian offshore oil and gas services market, with Indonesia as a key target.
The jackup was built in 2014 by Shanghai Waigaoqiao Shipbuilding and has recently spent 120 days at a China Merchants shipyard for major upgrades before mobilising for Indonesia over the weekend.
Shipping is watching movements in the Red Sea closely today to see if Yemen’s Houthis renew attacks on commercial vessels passing through the Middle East.
The Houthis have said they stand by today’s deadline they gave Israel, pledging to resume naval attacks in the Red Sea and Gulf of Aden if the Gaza blockade is not lifted.
Israel halted all aid supplies into Gaza on March 2 and, on Sunday, cut off electricity to the region, prompting a sharp response from Yemen’s Houthi movement.
Philippe Lazzarini, the commissioner-general of the United Nations agency for Palestinian refugees, UNRWA, has warned that the situation in Gaza is “deteriorating very, very quickly”, more than a week after Israel again halted all supplies from entering the Gaza Strip.
“Whatever the intent is, it’s clearly a weaponisation of humanitarian aid into Gaza,” Lazzarini told reporters at UN offices in Geneva on Monday.
After more than 100 ships were attacked from late 2023 and throughout last year, the Houthis have ceased its campaign against merchant shipping this year, in line with the tentative peace deal struck between Israel and Hamas.
British maritime security specialist Ambrey is advising merchant shipping to check their affiliation with the Houthi target profile, and to reassess the risk to voyages through the Red Sea, and the Gulf of Aden.
UK-based energy supermajor Shell has awarded a new contract to one of Noble Corporation’s drillships.
Noble said via social media channels that a one firm well plus one option well deal was awarded to the Noble Viking rig.
The contract, which is a direct continuation of a previous one, is set to start around the fourth quarter of 2025.
The 30-day contract for the 2014-built drillship has an estimated value of $14m, excluding mobilization and demobilization fees. That puts the dayrate at around $460,000.
The drillship is currently hired by Shell on a $442,000 dayrate and is working off Malaysia. It will complete its contract in June 2025 after which it will start work for Prime offshore the Philippines. The deal with Prime is for $499,000 per day and will end in November this year.
With scores of shipowners booking their flights for late April to Switzerland for the world’s top dry bulk event, Vasileios Gkikas will be on hand to answer some of the most pressing questions on the agenda.
Gkikas, global lead for dry bulk at class society ABS, tells Splash the questions he tends to field the most concern the incoming emissions regulations and how to achieve compliance in a way that reduces the risk of incurring penalties. Owners are keen to understand the evolution in alternative and sustainable marine fuels, ranging from the technical challenges associated with their use to availability and price, he says.
Clients also want to understand other commercial factors around fuels and energy efficiency, namely whether there are incentives from charterers for more efficient vessels. They are also greatly interested in knowing how to manage their risks in a wider global context, maintaining safe and secure vessel operations at a time when geopolitical factors are continuing to pose threats.
“More companies are recognising that digitalisation through systematic use of operational data can help them understand how their ships run and identify margins for efficiency improvements that can directly translate into fuel savings, emissions reductions and regulatory compliance,” Gkikas says.
The class executive is especially looking forward to two highly relevant sessions during the upcoming trade summit: the Digital Efficiency Drivers At Sea panel as well as the Dry Decarbonisation debate.
The first session explores how digitalisation can enhance dry bulk shipping operations to the benefit of both shipowners and charterers, while the decarbonisation discussion will ask who will genuinely pay for shipping’s green transition while identifying some of the low hanging fruit that delegates might not be aware of today in their bid to slash emissions.
“For ABS, Geneva Dry represents an opportunity to hold pragmatic discussions around the challenges and opportunities facing the dry bulk market. With everything that is going on in the world economy right now, we feel sure there will be plenty to discuss,” says Gkikas, a returning delegate to the event scheduled for April 28 and 29 at the Hotel President Wilson on the shore of Lake Geneva.
Geneva Dry brings together all elements of the commodities shipping sector to host the ultimate dry bulk shipping event.
Split into sectors, panels will bring together analysts, financiers, miners, traders and shipowners to discuss where the markets are headed. Sessions include:
Minor Bulks
Agri-commodities
Coal
Iron Ore
The full Geneva Dry agenda can be accessed here. Geneva Dry registration, at just $780, can be accessed here. Special Geneva Dry hotel room rates can be found here.
The over 220 companies attending Geneva Dry 2025 include: 2020 Bulkers, ABS, Aderco, Admaren, Aferrari Maritime Advisory, Affinity, Alberta Shipmanagement, Amart Shipping, Ambica Logistics, AmSpec, Anglo American, A.O. Schifffahrt, Ariston Navigation, AR Savage & Son, Arrow, Asia Shipping Media, Asiatic Lloyd Maritime, Asyad Shipping Company, AXSMarine, Bahri Dry Bulk, Balena Projects, Baltic Exchange, Banchero Costa, Beaufort Shipping, Berenberg Bank, Bery Maritime Inc., BIMCO, BIS Services, Blue Astra Maritime, Blue Visby Services, BPG Shipping Company, Braemar, BroadPeak Partners, BUDD Group, Bulk Commodity Trade, Bulk Egypt, Bureau Veritas, Burmester and Vogel, CALLS Shipping, Cambiaso Risso, Cargill, Castlewood Capital Partners, Cetus Maritime, Charterers P&I Club, Chesva Enterprises, Chinaland Shipping, Clarksons Port Services, CMA CGM, Coach Solutions, Cobelfret, COFCO International, Colfletar, Consortium Maritime Trading, Copenhagen Commercial Platform, Cross Office, CR International, CSBL, CSN Mining International, CTM, d’Amico Dry, Dataloy, DennisMathiew, Devbulk, DNV, Drydel Shipping, DryLog, Dualog, Eastern Mediterranean Maritime, Eastmen Shipping Co., EBE, Eksen Chartering, Eltronic FuelTech, EMSS DMCC, Enesel, Eramet, Erhardt Logistics, European Energy Exchange, Exen Global, Fednav, F.G.M. Chartering, Fleet Cleaner, G2 Ocean, GAC, GAC Services, GeoServe, Goulandris Brothers, GP Shipping, Granos Oros, Great Eastern Shipping Company, Grieg Shipbrokers, Hadley Shipping Group, Harbor Lab, Harren Group, Hartree Partners, Heidelberg Materials Trading, Hempel, HFW, Himalaya Shipping, HR Maritime, H. Vogemann, IFCHOR GALBRAITHS, IHB Shipping, Inchcape Shipping Services, INCOFE, Independent Ship Agents, Infospectrum, Inmarsat, INTERCARGO, Iskele Shipping, Isle of Man Ship Registry, JBG Shipping Agency, JJ Ugland, Kaizen Ship Management, KC Maritime, KGJS/BTG, Klaveness, Kpler, LA Marine, Latitude Brokers, Leeway Brokers, LETH Agencies, Liengaard & Roschmann, Lloyd’s List Intelligence, Lloyd’s Register, London Stock Exchange Group, Lykiardopulo & Co, Mandarin Shipping, Manta Marine Technologies, Marcura, Marex, Marfin Management, Mariner Communications, Maritime Optima, Marshall Islands Registry, MasOceans, Med Shipping Agency, Metbulk Shipbrokers, Metbulk Shipping, Mid-Ship Group, Montfort Trading, Mulberry Shipping and Consulting, NAPA, Navis, Neptune Maritime Leasing, Nextvoyage, Norbulk Shipping, Norden, NorthStandard, Nova Marine Carriers, Novamaxis, OBT Shipping Group, Oceanbulk Maritime, Ocean Recap, OceanWings, Orion Reederei, Overhorn Swiss, Pan Marine Group, Paralos Asset Management, Paralos Shipping, Paratus, Petro Inspect, Plutofylax Shipping Corporation, P&O Maritime Ukraine, Port Scope, Precious Shipping, Pyxis Logistics, Quest Group, Range Shipping, RightShip, Rustibus, RZHA, S5 Agency World, Safe Bulkers, S-Bulkers, SEA, Seaber, Seanergy Maritime Holdings, SEDNA, Seven Oceans, Seven Seas Marine Management, SGM Shipping Services, SGX Group, Siddhartha Logistics, Signal, Soki Kisen, South32, Southport Agencies, Spinergie, SS Rice News, SSY, Star Bulk, Steamship Mutual, StoneX, SUISSENÉGOCE, SwissMarine, Taylor Maritime Investments, TCC Group, Team Fuel Corp, TheOceann.ai, Thurlestone Shipping, TMA Bulk, Tradeviews, Trafigura, Triton Bulk, Tsakos Shipping, Two Oceans, United Maritime Corporation, Universal Shipping, Vale, Vale Base Metals, Valiant Shipping, Veson Nautical, V.Group, VPS, Wah Kwong Maritime Transport Holdings, Wallem Group, Walter Cuminns Group, Waypoint Commodities, WBL Shipping Agency, Weathernews, Western Bulk, Wilson Sons, Windward Shipping and ZeroNorth.
The first signs of a two-tier market are emerging in anticipation of Donald Trump’s likely penalisation of Chinese-built tonnage.
Broker BRS is reporting Chinese-linked ships are now becoming far less attractive for long time charters due to the likelihood that, at some point during their charters, these ships would be required to call at US ports.
Law firm Hill Dickinson is seeing revisions to charterparty wording, both bespoke terms and amendments to standard charterparty forms for voyage and period fixtures in relation to a likely impending clampdown on Chinese-built tonnage by the US.
BRS anticipates ships on spot voyages with multiple load and / or discharge options including the US will soon face similar treatment.
“Looking purely at spot voyages in or out of the US, it appears unlikely that charterers would opt to hire Chinese-linked ships,” BRS noted in a new market report.
The forces of globalisation swept away America’s steel mills, machine shops and skilled labour force
“It appears likely that a two-tier tanker freight market will eventually form with one tier for non-Chinese ships (overwhelmingly Japanese and Korean) and a lower tier for Chinese-linked ships which would likely be hired at costs slightly below the first tier,” BRS has predicted.
The American president will make a decision soon on whether to carry out suggestions made by the office of the US Trade Representative (USTR) following an investigation carried out over the past year into China’s growing dominance in maritime, especially in the realm of shipbuilding. The USTR report cited artificially suppressed labour costs, forced technology transfer and intellectual property theft among a raft of accusations levelled at Beijing. The trade office has recommended potential fees of up to $1.5m per port call for Chinese-built vessels, $1m per port call for operators of Chinese-built ships, and mandatory US-flag shipping requirements with Trump strongly suggesting in recent days he will carry out these policies as part of a wider plan to revitalise American shipbuilding.
“Initial industry reaction suggests that the market contemplates an increase in freight rates, a substantial diversion in traffic towards Mexican ports, and a cancellation of some newbuilding contracts at Chinese yards,” Hill Dickinson suggested in a note to clients.
Clarksons Research has calculated nearly 37,000 US port calls last year by ships that would likely face the maximum $1.5m fee due to their connection to China, equivalent to 83% of container ship calls but only around 30% of stops by tankers.
As with many industries, China has come to dominate shipbuilding this century, moving from a global market share of less than 10% of the global orderbook to a commanding two-thirds stranglehold by the end of last year. The US, by contrast, has a market share of just 1%.
Global Times, a state-run Chinese newspaper, lambasted the American plans yesterday in an OpEd, arguing: “The chasm between American and Chinese shipbuilding is fundamentally a gap in industrial infrastructure. The forces of globalization swept away America’s steel mills, machine shops and skilled labor force, leaving behind rusting supply chains and a hollowed-out manufacturing base. Shipbuilding, a quintessential heavy industry, requires a robust industrial foundation. When that foundation crumbles, shipbuilding inevitably follows.”
Aframaxes remain the most popular tanker sales candidates this year, dominating the market, while VLCCs are also attracting interest. However, a price gap between buyers and sellers continues to delay deals for semi-modern vessels, ships now being tested on the market.
Formosa Plastics Marine Corp put the 302,000 dwt FPMC C Intelligence (built 2010) a few weeks ago. Initially reported to be sold for a high $40m, the Taiwanese player then withdrew the vessel because the price did not match its expectations.
Now, sources tell Splash that Alleria Shipping, a Hong Kong-registered company, has sold the 2009-built , 296,481 dwt Yinghao Spirit, a Bohai Shipbuilding Heavy Industry-built ship, saying the vessel is said to have fetched $52m from undisclosed Middle Eastern buyers.
The latest sale shows VLCC prices continue to firm in tune with brokers’ forecasts of higher rates for ships trading outside the dark fleet. Brokers note buyers are willing to pay a premium for tonnage of reputable propriety for lucrative, compliant trading.
A Panama-flagged tanker was boarded by seven individuals while transiting eastbound in the Philip Channel yesterday, approximately six nautical miles east of Kasu, Indonesia, the latest in a string of similar incidents in the same area.
According to Ambrey, a British maritime security specialist, the suspects were reportedly armed with “gun-like” objects. During the incident, the vessel was underway at 10.6 knots, with an estimated freeboard of 7.6 m. The vessel was able to continue its journey.
Ambrey’s advice to ships passing through the Singapore Strait call for crews to lock down access to the accommodation block and ship’s stores, and to carry out partnered deck patrols.
(Bloomberg) — A Canadian province that exports electricity to the US raised power prices for three states by 25% on Monday in retaliation for President Donald Trump’s tariffs.
Ontario directed its grid operator, the Independent Electricity System Operator, to add a C$10 ($7) per megawatt-hour surcharge to all power exported to Minnesota, Michigan and New York.
“Believe me when I say I don’t want to do this. I feel terrible for the American people,” Premier Doug Ford said. “It’s one person who is responsible. That’s President Donald Trump.”
Ford promised the levy last week after US tariffs against Canadian goods took effect, and vowed to follow through even after the White House agreed to exempt autos and some other goods covered under the countries’ existing trade agreement.
Ontario’s decision may be more symbolic than anything. Prices on the US electricity spot markets, the exchanges where the provinces sell their power, are based on short-term supply and demand. That means buyers can choose from a menu of sellers and don’t necessarily have to buy it from Canada.
The province expects to earn as much as C$400,000 per day from the surcharge, “which will be used to support Ontario workers, families and businesses,” the government said in a release.
“If the premiers use levers that are to our advantage, good news,” Melanie Joly, Canada’s foreign affairs minister, told reporters on Monday.
New York imported about 4.4% of its total electricity from Canada in 2023, according to Bloomberg calculations using data from the New York grid operator.
The percentage for the Minnesota and Michigan is even less, according to Midcontinent Independent System Operator, the region’s grid operator.
“In 2024, less than 1% of MISO’s total energy was supplied via Canadian imports and less than half of that came from Ontario,” Brandon Morris, a spokesperson for MISO, said in an email. “For context, that amount is equivalent to approximately one power plant. MISO manages the loss of power plants like this every day to ensure reliability across our footprint.”
Ontario has seven transmission connections with New York, four with Michigan and one with Minnesota.
Shandong Yulong Petrochemical is set to begin trial runs at its second 200,000 bpd crude processing unit, increasing China’s refining capacity.
This expansion could lead to a boost in China’s crude oil imports, despite recent declines.
The refiner has been diversifying its crude sources, increasing purchases from West Africa and Brazil.
Shandong Yulong Petrochemical, the newest refiner in China, is set to begin trial runs at a 200,000-barrels per day crude processing unit later this month, traders familiar with the facility’s plans told Reuters on Monday, in what could be a boost to Chinese crude oil imports in the coming months.
Shandong Yulong Petrochemical started up its first crude processing unit of 200,000 bpd in September 2024. This unit has kept crude processing rates at 90% of capacity since November.
Now the refiner, whose refining and chemicals complex is worth $20 billion, is set to begin trial runs at the second crude unit of another 200,000 bpd at the end of March, according to the trading sources who spoke to Reuters.
The new refining unit could raise crude oil imports in the world’s top crude buyer after recent slumps due to tepid domestic fuel demand. But more fuel production could also depress already weak refining margins in China and the region.
Faced with a hectic reorganization of the crude trade following the U.S. sanctions on Russia, Shandong Yulong Petrochemical has reportedly boosted purchases of West African and Brazilian crude in recent weeks.
The Chinese refiner last month bought four shipments of crude from Angola and Nigeria a trade source familiar with the deals told Reuters in February. Shandong Yulong Petrochemical booked a cargo each of Angola’s Dalia, Plutonio, and Girassol crude and one cargo of Nigeria’s Nemba, all for delivery in March.
The Chinese refiner has also bought two shipments of crude from Brazil for delivery in April, according to the source.
At the same time, China’s crude oil imports over the first two months of the year fell by 5% compared to the same period of 2024 as the parting round of sanctions that the Biden administration imposed on Russian energy affected international flows.
