Oldendorff on what a global shipping decarbonisation framework should deliver  

Adjusting in crises 

Shipping has had to adapt to a rapidly evolving geopolitical environment in recent months, with the Strait of Hormuz crisis at the forefront of the disruption.

Mr Bergeron said the situation has created a “significantly more challenging” operating environment. Oldendorff has vessels located in the wider region, “which require constant and extraordinary vigilance by crew and our shore-based staff.”

The situation has inevitably affected voyage planning and routing decisions across parts of Oldendorff’s fleet.

“At the same time, developments in fuel prices and availability remain an important consideration, with the potential to further affect voyage economics and operational planning,” Mr Bergeron said.

“Given how quickly the situation can change, we continue to assess developments on a case-by-case basis and adapt our operations accordingly,” he explained.

Mr Bergeron praised seafarers who, despite bearing the brunt of the crisis, “have had to continue their day-to-day work in an unusually uncertain and demanding environment.”

“Their professionalism, resilience and commitment throughout this period have been exceptional,” he added.

Shifting to another area of continued disruption, the Black Sea, Mr Bergeron highlighted that the situation will inevitably affect trade flows and related logistics, given the region’s importance to global grain exports.

“The longer current constraints persist, the greater the potential pressure on supply chains, freight costs and global food security,” he added. 

However, the significance of these effects is difficult to assess, “particularly as grain markets are influenced by a range of factors beyond shipping, including production levels, inventories and geopolitical developments.”

Against this backdrop, Oldendorff’s priority is to respond efficiently to changing trade flows and customer requirements while carefully assessing the security environment, Mr Bergeron said.

Firm dry bulk market, but caution over growing orderbook 

Looking at dry bulk market fundamentals, Mr Bergeron noted that the sector has shown resilience in recent months despite ongoing disruption, “supported by relatively firm demand across key commodity trades and shifts in global trading patterns.”

Geopolitical developments and operational constraints continue to influence vessel availability and market dynamics, he added.

Mr Bergeron also emphasised the importance of the Chinese market to dry bulk shipping, with China remaining a key driver of global commodity trade.

“At the same time, its economy and commodity requirements are evolving, making the longer-term impact on individual trades difficult to assess,” he added.

Oldendorff is also seeing commodity flows become increasingly diversified, with growing activity across a number of emerging markets.

On the supply side, Mr Bergeron has observed a significant level of newbuilding activity, with Oldendorff watching the growing orderbook cautiously. 

The senior shipping executive warned that if ordering continues at the current pace, there is a risk that additional capacity could put pressure on the supply-demand balance in the coming years.

While the market is currently benefiting from a number of factors supporting freight rates and vessel utilisation, some of these effects may normalise over time. As more of the vessels currently on order enter the fleet, market conditions could become more challenging, he explained.

For Oldendorff, the focus remains on maintaining a flexible and efficient fleet, “allowing us to respond quickly to changing cargo flows and market conditions,” Mr Bergeron concluded.