November has arrived and there is plenty of news in the world of shipping and logistics. From time to time, we at More Than Shipping like to keep our readers informed on what they need to know in the industry. Our latest periodic update can be found below.
Wind Energy, Long Praised as Part of the Transition to Renewable Energy, Loses Two Key Projects
This week, Denmark’s Orsted, the largest wind farm developer globally, announced it was ending projects in New Jersey and New York, which were expected to be some of the largest offshore wind farms in the world. This decision may put further pressure on shipping companies thinking of outfitting more ships with wind energy, as we recently reported was the case. The reasons for the decision were rising interest rates, lack of government support, and supply chain delays.
Fuel prices continue to drop, which is good news for container ships and commercial trucks.
Gas prices around the U.S. and Canada are beginning to come down at a faster pace after dropping last month. Oil prices have come down, and refinery capacity has increased. Taken together, these developments in lower prices will likely bring down diesel prices over the next few months, even if only modestly. Shipping companies and truckers were facing sky-high fuel prices that were requiring the companies to pass these costs over to customers.
Russia has bombed areas where ships are traveling the Black Sea.
On October 31st, yesterday, Russia set off “explosive devices” in the Black Sea where many vessels were traveling. Although the move will has so far affected more civilian vessels compared to container ships, container ships should still be on alert as Russia tries to bring Ukraine and regional powers to the bargaining table over its Ukraine war. Additionally, Ukraine has pledged to continue to use the shipping lanes in question to export grain to the world.