2022 a remarkable year of shipping history

According to Seatrade Maritime News, shipbroker Clarkson's ClarkSea index covering about 80% of shipping capacity soared by almost a third to record levels in 2022. Container shipping underpinned the gains but other sectors including car carriers, tankers and LNGs were also star performers.

Shipping’s stellar performance last year was the result of many factors but overall growth in energy shipping of around 4% was one of the fundamentals driving the ClarkSea index to a record US$37,253 per day for the year.

Average earnings for tankers rose by more than 470%, with VLCCs scoring a record rise of 642%YoY. Medium-range product tankers scored well too, notching up a 370% increase in rates for a typical 12 year old vessel – up from US$6,740 a day in 2021 to an average of US$31,775 in 2022.

In contrast, container rates underwent a sharp correction over the second half of 2022, down from record levels at the start. Market reports suggest that rates are likely to weaken further and Clarkson notes that this will coincide with a rise in delivery volumes.

Everything is relative, however, the box market is still firm in historic terms and the reopening of China could have a positive impact, Clarkson suggests.

The container and dry bulk sectors are the most vulnerable to risks from the world economy but uncertainties prevail in other sectors too.

The uncertainties include low orderbooks, the impact of new environmental regulations from January, as well as other ‘inefficiencies’ and geopolitical factors, according to Clarksons Research.

The cross-sector ClarkSea Index stood at US$31,539 per day in early November 2022, significantly below the last year’s average of US$37,548 per day and well down on the 18 successive weeks between March and July when it exceeded $40,000 per day, levels last seen at the height of the 2000s‘supercycle.

During the first half of the year 2022, the container market was exceptionally strong and bulker markets were generally firm, the research firm noted in its most recent market report.

Since then market fundamentals have shifted again. Container markets softened sharply during September and October 2022, partly due to faltering demand and lower port congestion. Bulk carrier earnings, meanwhile, are down by 27% over the second half of the year 2022 as compared to the first-half average.

On the other hand, energy-related shipping markets strengthened, with average tanker earning breaking through US$50,000 per day in October 2022, double the March average.

Ton-mile demand, meanwhile, continues to strengthen as a result of the Ukraine conflict. The war has also had a dramatic impact on gas carrier markets, with VLGC earnings at year-to-date highs and LNG carrier rates at record levels.

The ClarkSea Index rose 3% last week to US$32,482 per day, up 35% year-on-year, and 134% above the t-year trend. Crude tanker rates continued to strength, with average VLCC earnings reaching US$86,860 per day, Clarkson said, the highest level since April 2020. Product tanker rates eased, meanwhile, but MR earnings still remain firm at an average of US$32,047 per day.

Bulk carrier rates remain relatively soft, although the steady decline in Capesize earnings came to a halt, with spot rates rising 41% week-on-week to US$11,657 per day. Panamax and handy vessels are firmer than other bulk segments at present but are still only about half of the mid-May figure of more than US$30,000 per day.

Container rates are also continuing to ease. The Shanghai Containerized Freight Index (SCFI) slipped 9% week-on-week to 1,443 points, below end-2020 levels and only 14% above the 2020 average.

 

 

Direct shipping line launched between Iran and Cuba

Iranian Deputy Foreign Minister for Economic Diplomacy Mehdi Safari said a direct shipping line has been launched between Iran and Cuba which is expected to significantly improve the economic relations between the two countries.

“A Direct shipping line has been established between Iran and Cuba since the last 20 days, which will increase the trade between the two countries,” Safari told IRIB on Monday.

“Based on the conducted research, our country has also the potential to cooperate with Cuba in carrying out various projects, especially in the field of energy,” the official said.

In May 2022, Iran and Cuba finalized a roadmap for barter trade between the two countries and signed a document in this regard during the 18th meeting of their joint economic committee in Tehran.

As reported, the document was signed by Iran’s Deputy Industry Minister for Commercial and Trade Affairs Mohammad-Sadegh Mofatteh and Cuba's Deputy Prime Minister Ricardo Cabrisas Ruiz.

During the meeting, the officials explored the existing capacities and market needs of the other side in various fields and good agreements were reached for long-term cooperation in order to improve the level of trade exchanges.

The two countries also stressed the need for developing industrial, mining, and trade cooperation between the two countries during the mentioned event.

Attended by senior officials and representatives of various economic sectors from both sides, the 18th meeting of the Iran-Cuba Joint Economic Committee was held in Tehran during May 15-17, 2022.

As the special envoy of the Cuban president, Cabrisas Ruiz headed a high-ranking delegation to Iran with the aim of meeting with the officials of the Islamic Republic and attending the meeting of the two countries’ joint economic committee.

During his stay in Tehran, Cabrisas Ruiz also met with Iranian Finance and Economic Affairs Minister Ehsan Khandouzi, during which he stressed the expansion of economic ties between the two countries.

Speaking in this meeting, Khandouzi stated that the Iranian government has always welcomed the establishment of long-term and stable economic relations with Latin American countries, especially Cuba.

“Given the excellent political relations between the two countries, Cuba is of particular importance to the Islamic Republic of Iran,” he added.

Referring to the history of cooperation between the two countries in the fields of health and agriculture, Khandouzi emphasized the need to improve economic relations between the two countries and said: “We are expected to take more serious steps to develop cooperation and implement agreements.”

The minister further pointed to the lack of proper knowledge regarding business and economic opportunities and advantages of trade and investment between the two countries as the most important reason for the weak trade collaborations between Iran and Cuban private sectors.

He then announced Iran’s readiness to hold online meetings with the presence of representatives of the government and private sectors of Iran and Cuba in order to exchange knowledge about the business and investment opportunities of the two countries.

 

Traffic in Suez Canal normalized

Shipping traffic in the Suez Canal was proceeding normally on Monday after tugs towed a cargo vessel that broke down during its passage through the waterway, the Suez Canal Authority said.

The breakdown caused only minor delays, with convoys of ships resuming regular transit by 09:00 GMT, shipping agent Leth said.

The MV Glory, which was sailing to China, suffered a technical fault when it was 38km into its passage southward through the canal, before being towed by four tugs to a repair area, the Suez Canal Authority (SCA) said in a statement.

The Suez Canal is one of the world's busiest waterways and the shortest shipping route between Europe and Asia.

In 2021, a huge container ship, the Ever Given was stuck in high winds across a southern section of the canal, blocking traffic for six days before it could be dislodged.

The MV Glory is a Marshall Islands-flagged bulk carrier, data from trackers VesselFinder and MarineTraffic showed.

It departed Ukraine's Chornomorsk port on December 25, 2022 bound for China with 65,970 metric tons of corn, according to the Istanbul-based Joint Coordination Centre (JCC) overseeing Ukraine grain exports.

The JCC, which includes representatives from the United Nations, Turkey, Ukraine and Russia, said the ship had been cleared to carry on its journey from Istanbul after an inspection on January 03, 2022.

 

QatarEnergy-Chevron Phillips US$6 billion deal

According to Reuters, QatarEnergy announced on Sunday the final investment decision on the US$6 billion Ras Laffan Petrochemicals Complex with partner Chevron Pillips Chemical which is expected to be the largest of its kind in the Middle East.

The complex, expected to begin production in 2026, includes an ethane cracker with a capacity of 2.1 million tons of ethylene per year.

The integrated complex will also include two high density polyethylene derivative units with a total production capacity of 1.7 million tons per year, QatarEnergy, Chief Saad al-Kaabi Kaabi said.

Originally announced in 2019, the project highlights how Middle East oil producers are expanding further into petrochemicals, used in the production of plastics and packaging materials, to move into new markets and find new sources of income beyond exporting crude oil and natural gas.

State-run QatarEnergy will hold a 70% stake in the venture with Chevron Phillips Chemicals holding 30% under the agreement signed on Sunday.

“This marks QatarEnergy's largest investment ever in Qatar's petrochemical sector," Kaabi said.

The complex, located in Ras Laffan industrial city, is an important milestone in Qatar's downstream expansion strategy, he said.

Qatar, one of the world's top producers of liquefied natural gas (LNG), will see its ethylene production capacity double on the back of the new complex. Local polymer production will also increase from 2.6 million to 4 million tons per annum.

The Gulf state, one of the most influential global players in the world's LNG markets, is expanding its North Field gas field that will see its liquefaction capacity increase from 77 million tons per annum to 126 million tons by 2027.

Iran export from Sistan Baluchestan up 32%

The value of non-oil export from Sistan-Baluchestan province, in the southeast of Iran, rose 32% in the first nine months of the current Iranian calendar year (March-December, 2022), as compared to the same period last year, according to a provincial official.

Mojtaba Shojaei, the Director General of the province’s governorate’s office of economic affairs coordination, said 1.165 million tons of products worth US$165 million were exported from Sistan-Baluchestan in the mentioned nine-month period, indicating also 78% growth in terms of weight YoY.

He named cement, clinker, travertine stone, coal coke, coal, dates, gas, vegetables, agricultural poison and agricultural products as the main exported items, and Pakistan, Afghanistan, India, Iraq, Kuwait, the United Arab Emirates (UAE), Turkmenistan, Uzbekistan and Indonesia as the major export destinations.

The official further announced that 1,157 tons of commodities valued at US$1.184 million were imported to the province in the first nine months of the present year, with 17% rise in value, while 26% drop in weight, year on year.

He named wheat, rice, cattle corn, cattle oats, mango, banana, sesame, potato, live livestock, fabric, tea, car spare parts, light and heavy car tires, cooling devices, spices, and fish as the main imported items, and Russia, Pakistan, France, Germany, India, Brazil, United Arab Emirates, China, Thailand and Afghanistan as the major sources of imports during the first nine months of the current year.

Based on the data released by the Islamic Republic of Iran Customs Administration (IRICA), the value of Iran’s non-oil export rose 19 percent from the beginning of the current Iranian calendar year (March 21, 2022) up to December 31, as compared to the same period of time in the past year.

According to the IRICA data, Iran exported 97.843 million tons of goods valued at US$43.088 billion in the mentioned period, also registering 2% increase in weight

Liquefied natural gas, liquefied propane, methanol, liquefied butane, and film-grade polyethylene were the main exported products in the said time span.

Major export destinations of the Iranian non-oil goods were China, Iraq, Turkey, the United Arab Emirates, and India.

The Islamic Republic has also imported 28.18 million tons of non-oil commodities worth $44.337 billion in the first 286 days of the present year, with a 14.7% growth in value and a 10% increase in weight, year on year.

The major items of goods imported into the country in the said period include corn, rice, wheat, soybeans, sunflower seed oil, and cell phones, based on the IRICA data.

The United Arab Emirates was the top exporter to Iran in the mentioned period, followed by China, Turkey, India, and Germany.

Reportedly, the value of Iran’s non-oil trade rose 17% during the mentioned period, as compared to the same time period last year.

Iran traded more than 126 million tons of non-oil products worth over US$88 billion with other countries in the mentioned period.

 

Israel has already annexed West Bank

The UN General Assembly has referred the West Bank issue to the World Court. There are again rumblings about possible annexation, especially with Benjamin Netanyahu’s far-Right government assuming power in Jerusalem.

Annexation is viewed as something terrible Israel might do to the Palestinians. However the reality is that Israel has already incorporated the West Bank long ago.

It has not formally annexed this not-very-large area in order to avoid provoking the region and the world – and mainly to avoid having to extend the right to vote for the Israeli parliament to the region’s three million Palestinians.

This is a neat little trick that has worked well; it has fooled most people most of the time, including, amusingly, a few clueless Jewish nationalists who never got the memo and are now calling for annexation.

To understand that the West Bank is already part of Israel, consider the following:

By law, Israelis abroad cannot vote in elections unless they are diplomats or other envoys of the state; generally only citizens present in Israeli sovereign territory on Election Day can vote. Are the half a million West Bank settlers allowed to vote? You bet they are, and in impressive numbers they do. That is in contrast to Palestinians who may be living in a village just across the road.

Countries do not generally build towns and villages on territory that does not belong to them (and democratic countries certainly do not build anything for only one ethnic group only). Is Israel building Jewish settlements in the West Bank? It certainly has, and now it will again; there’s an accredited university there as well.

Israel controls all entry and exit to and from the overall West Bank, as well as passage between the Palestinian Authority autonomy islands. Israel controls the airspace and the water, natural resources and construction rights in most of the territory, and also provides the currency. Israel has the overriding security and justice authority, and even the autonomous islands are essentially subordinate.

Is there any other country with such a level of control on territory that isn’t part of it? Certainly not democratic countries; the US territories like Puerto Rico are an interesting case – and the locals there are US citizens. The situation is analogous mainly to the colonial era, which wound down in the middle of the previous century.

Defenders of the situation will say the occupation is necessary for security reasons, because otherwise the West Bank would fall to Hamas and terrorists would fire rockets from strategic highland at Israel’s major cities. That’s a very reasonable concern, given that this precise thing happened after Israel pulled out of Gaza in 2005 – but it does not justify the settlements.

Apologists will argue that the occupation is temporary, until the Palestinians agree to Israel’s conditions for partition. But they will not agree to Israel’s terms. The excuse of temporariness is preposterous after 55 years, with no end in sight and the new government preparing to further deepen the settlement enterprise; it plans to legitimize illegal outposts deep inside the territory.

Some argue that most settlers live quite close to the old pre-1967 border, and incorporating them only, would usefully expand Israel’s narrow waist, which at its narrowest point is less than 20 kilometers (about 10 miles) wide. But this does not apply to the 100,000 settlers who live deep inside these territories – well beyond the security barrier established in the 2000s (and which eats into about 15% of the West Bank); the purpose of those settlements, and most of what the new government plans, is to make any partition impossible.

Some right-wingers now want Israel to stand supposedly strong by formally annexing so-called Area C, which is the 60% or so of the West Bank that surrounds the autonomy areas – an unwieldy map created by the 1990s Oslo Accords.

It is doubted that people know the map. Such an annexation, which would leave islands of non-annexed Palestinian areas surrounded by Israeli territory, would not produce what a reasonable person would consider a partition. If anything, it would invite comparisons to South Africa’s apartheid-era Bantustans. It is only slightly less childish than suggesting Israel annex everything except the homes of Palestinians.

If the current government actually lasts four years and deepens the settlement project, the situation will gradually escalate. The Palestinian Authority is likely to collapse – or at least move on from 87-year old leader Mahmoud Abbas. There may well be a renewed Palestinian uprising. And before long, there will be a growing Palestinian demand for Israel to really annex the West Bank – all of it, giving the Palestinians the same voting rights enjoyed by the two million Arab citizens in Israel proper.

This is the likely outcome of an occupation that includes colonization of the kind that is taking place. This is the only formal annexation scheme that will actually mean anything, and it will be backed by the entire world, probably with economic sanctions.

The result will be a country of some 13 million that is barely over half Jewish – and you can expect further conflicts, including between secular and religious Jews, that will cause mass emigration among the sector currently responsible for Israel’s economic and high-tech miracle.

The result will be a new country called Palestine, not Israel. This understanding of demographic reality (and the leverage it bestows) is why the Palestinians have not made things easy for Israel by seriously engaging with previous peace and partition offers made by more intelligent governments.

An Israel that wants to survive in the long term should freeze all settlement activity beyond the security barrier line – and project to all audiences that its strategic imperative is a secure way to separate from most of the West Bank.

In the wake of last week’s UN decision, the World Court could do peace a major service by expediting procedures and nudging Israel in this direction.

Annexation is not something Israel should threaten – but something it should strenuously seek to avoid. Instead, under the new government, it is headed off a cliff in a way that can only leave its enemies incredulous with joy. It is a genuine failure of democracy – and a very flawed one at that, because millions of Palestinians are effectively residents who cannot vote.

Iran exports to United States increase 10-fold

According to the data released by the US Census Bureau, the value of Iran exports to the United States registered a 10-fold increase in the first 11 months of 2022 from the same period in 2021.

As reported by IRNA, the United States imported commodities worth US$11 million from Iran in the first 11 months of year 2022, while the figure was only US$1.1 million in the same period in year 2021.

According to the data, the two countries traded US$51.3 million worth of goods during January-November which was 38% more than the figure in the first 11 months of 2021 when the trade between the two sides amounted to US$37.2 million.

The United States Census Bureau’s data shows that the value of US export to Iran also increased 11% to US$40.3 million in the 11-month period of this year, from US$36.8 million in the same time span of the previous year.

As previously reported by the bureau, the value of Iran’s exports to the United States increased by 11 folds in the first 10 months of 2022 from the same period in 2021.

The US imported commodities worth US$10.9 million from Iran in the first 10 months of this year, while the figure was only US$1 million in the same period of time in the past year.

The two countries traded US$46.5 million worth of goods during January-October which was 41% more than the figure in the first 10-months of 2021 when the trade between the two sides amounted to US$33.8 million.

The United States Census Bureau’s data shows that the value of US export to Iran increased eight percent to US$35.6 million in the 10-month period of this year, from US$32.8 million in the same time span of the previous year.

 

McCarthy elected speaker of US House of Representatives

Republican Kevin McCarthy was elected speaker of the US House of Representatives early on Saturday, after making extensive concessions to a group of right-wing hardliners that raised questions about the party's ability to govern.

The 57-year-old Californian suffered one final humiliation when Representative Matt Gaetz withheld his vote on the 14th ballot as midnight approached, prompting a scuffle in which fellow Republican Mike Rogers had to be physically pulled away.

McCarthy's victory in the 15th ballot brought an end to the deepest congressional dysfunction in over 160 years. But it sharply illustrated the difficulties that he will face in leading a narrow and deeply polarized majority.

He won at last on a margin of 216-212. He was able to be elected with the votes of fewer than half the House members only because six in his own party withheld their votes - not backing McCarthy as leader, but also not voting for another contender.

“I'm glad that it's over," McCarthy told reporters shortly after the vote.

McCarthy agreed to a demand by hardliners that any lawmaker be able call for his removal at any time. That will sharply cut the power he will hold when trying to pass legislation on critical issues including funding the government, addressing the nation's looming debt ceiling and other crises that may arise.

"We got the things that are transformational," said Republican Representative Ralph Norman, who voted to back McCarthy after opposing him for much of the week.

Republicans' weaker than expected performance in November's midterm elections left them with a narrow 222-212 majority, which has given outsized power to the right-wing hardliners who have opposed McCarthy's leadership.

Those concessions, including sharp spending cuts and other curbs on McCarthy's leadership, could point to further turbulence in the months ahead, especially when Congress will need to sign off on a further increase of the United States' US$31.4 trillion borrowing authority.

Over the past decade, Republicans have repeatedly shut down much of the government and pushed the world's largest borrower to the brink of default in efforts to extract steep spending cuts, usually without success.

Several of the hardliners have questioned McCarthy's willingness to engage in such brinksmanship when negotiating with President Joe Biden, whose Democrats control the Senate. They have raged in the past when Senate Republicans led by Mitch McConnell agreed to compromise deals.

The hardliners, also including Freedom Caucus Chairman Scott Perry and Chip Roy of Texas, said concessions they extracted from McCarthy will make it easier to pursue such tactics this year - or force another vote on McCarthy's leadership if he does not live up to their expectations.

"You have changes in how we're going to spend and allocate money that are going to be historic," said Representative Scott Perry, the chairman of the hard-right House Freedom Caucus.

"We don't want clean debt ceilings to just go through and just keep paying the bill without some counteracting effort to control spending when the Democrats control the White House and control the Senate."

One of those Democrats, Senate Majority Leader Chuck Schumer, warned that the concessions McCarthy made to win the job may come back to haunt him.

"Kevin McCarthy’s concessions to the extremists in his party make it far more likely that the MAGA Republican controlled House will cause a government shutdown or a default with devastating consequences to our country," Schumer said in a statement.

In a sharp contrast to this week's battles among House Republicans, Biden and McConnell appeared together in Kentucky on Wednesday to highlight investments in infrastructure.

McCarthy's belated victory came the day after the two-year anniversary of a January 06, 2021, attack on the US Capitol, when a violent mob stormed Congress in an attempt to overturn then-President Donald Trump's election loss.

This week's 14 failed votes marked the highest number of ballots for the speakership since 1859, in the turbulent years before the Civil war.

McCarthy's last bid for speaker, in 2015, crumbled in the face of right-wing opposition. The two previous Republican speakers, John Boehner and Paul Ryan, left the job after conflict with right-wing colleagues.

Wielding the speaker's gavel will give McCarthy the authority to block Biden's legislative agenda, force votes for Republican priorities on the economy, energy and immigration and move forward with investigations of Biden, his administration and his family.

But McCarthy has agreed to concessions that mean he will hold considerably less power than his predecessor, Democrat Nancy Pelosi, according to sources involved in the talks. That will make it hard for him to agree to deals with Democrats in a divided Washington.

Allowing a single member to call for a vote to remove the speaker will give hardliners extraordinary leverage.

He has also offered influential committee posts to members of the group, lawmakers said, as well as spending restrictions that aim to reach a balanced budget within 10 years. The agreement would cap spending for the next fiscal year at last year's levels - amounting to a significant cut when inflation and population growth are taken into account.

That could meet resistance from more centrist Republicans or those who have pushed for greater military funding, particularly as the United States is spending money to help Ukraine fend off a Russian assault.

Moderate Republican Brian Fitzpatrick said he was not worried that the House would effectively be run by hardliners.

"It's aspirational," he told reporters. "We still have our voting cards."

 

Pakistan stock Exchange remains under pressure

Pakistan Stock Exchange (PSX) benchmark index witnessed an overall volatile week ended on January 07, 2023. Depletion of foreign exchange reserves continued, fueling uncertainty. Reserves have fallen by approximately US$2 billion since December 2022 began, pulling import cover down to alarming low level.

Although, some respite was seen towards energy stocks such as PPL, OGDC and refineries with news amidst gas circular debt resolution and fresh investment in a coastal refinery from Saudi Arab (aided by the much anticipated refinery policy).

Overall, average daily trading volume remained low at 176 million shares, as compared to 214.2 million shares traded in the earlier week. The Index gained 588 points during the week, depicting a 1.45% increase.

The PKR also lost some footing against the US$ and depreciated 0.31% to end at PKR227.14/US$ parity on Friday. CPI was still at multi-year highs, at 24.5% for December 2022, lower than expectations as compared to 26.6% in October 2022.

Finally, Trade deficit for November 2022 was reported at US$2.79 billion, down 28.4%YoY. Foreign exchange reserves held by State Bank of Pakistan (SBP) were reported at US$5.6 billion as at December 30, 2022.

On the international front, crude oil remained volatile, averaging at US$82/bbl as the global commodity remained in a limbo on the back of on/off Chinese lockdowns and the emergence of the newer COVID Omricon variant.

Other major news flows during the week were: 1) Pakistan will have to repay by January 10, 2023, US$1.3 billion in foreign loans, 2) annual inflation measured by the Consumer Price Index (CPI) was recorded at 24.5% in December last year, 3) The federal cabinet, on Tuesday, approved the Energy Conservation Plan, barring fresh restrictions on wedding halls and markets, 4) Pakistan is eying generating around US$8 billion from the international community and donor agencies for the rehabilitation and reconstruction of the flood-affected people, 5) Finance Minister Ishaq Dar on Wednesday claimed that friendly countries have announced their support.

Sector-wise, amongst mainboard items, Miscellaneous, Refinery and Transport were the top performers. Vanaspati and allied industries, Leather & Tanneries and Cable & Electrical were amongst the worst performers.

Flow wise, net selling was recorded by Mutual Funds with net sell of US$2.9 million). Companies absorbed most of the selling with a net buy of US$3.2 million.

Company-wise, top performers during the week were: PSEL, SHIFA, ATRL, PPL, and SNGP, while top laggards were: PSMC, HCAR, KEL, GADT, and GATM.

The market is expected to remain under pressure in the near future, driven by the weakness in the PKR against the US$ and the concerns regarding the country’s fiscal health.

Pakistan will have to repay around US$8.3 billion in shape of external debt servicing over next three months of current fiscal year.

Additionally, the political uncertainty and any developments regarding the 9th review by the IMF would remain in the limelight, which would unlock inflows from friendly countries.

Consequently, the market will remain jittery amid uncertainty over economic fronts. Analysts continue to advise a cautious approach while building positions in the market. 

India becomes third largest auto market

India is now the world's third-largest auto market, reports Nikkei Asia. Based on preliminary results, India's sales of new vehicles totaled at least 4.25 million units, topping the 4.2 million sold in Japan.

According to the Society of Indian Automobile Manufacturers, new vehicles delivered in India totalled 4.13 million between January and November 2022, the report says. India's largest carmaker, Maruti Suzuki sales volume reported on Sunday takes the total to roughly 4.25 million units.

The report adds that the country's sales volume is expected to rise further with the inclusion of pending fourth-quarter sales figures for commercial vehicles. Tata Motors and other automakers are yet to reveal their year-end results.

In 2021, China continued to lead the global auto market, with 26.27 million vehicles sold. The US remained second at 15.4 million vehicles, followed by Japan at 4.44 million units.

Nikkei Asia said India's auto market has fluctuated in recent years. Roughly 4.4 million vehicles were sold in 2018, but volume dipped below 4 million units in 2019, due primarily to the credit crunch that hit the nonbank sector that year.

When the Covid pandemic triggered a countrywide lockdown in 2020, vehicle sales plummeted further below the 3 million-unit mark. Sales recovered in 2021 to approach 4 million units, but the shortage of automotive chips weighed on growth.

Vehicles powered by gasoline, including hybrid vehicles, accounted for most of the new autos sold in India last year, Nikkei Asia said, adding that electric vehicles hardly have a presence. Autos for the Indian market are seen having fewer semiconductors than those sold in advanced economies.

According to Nikkei Asia, the easing of the automotive chip crunch in 2022 provided a springboard for a recovery. Along with Maruti Suzuki, Tata Motors and other Indian automakers saw sales grow during last year.

India is home to 1.4 billion people, and its population is expected to outstrip China sometime this year and continue growing until the early 2060s. Incomes are rising as well.

Only 8.5 per cent of Indian households owned a passenger vehicle in 2021, according to British research firm Euromonitor, meaning there is plenty of room for sales growth. The government has started offering subsidies for EVs amid a trade deficit resulting from petroleum imports.

In Japan, 4,201,321 vehicles were sold last year, down 5.6 per cent from 2021, according to data from the Japan Automobile Dealers Association and the Japan Light Motor Vehicle and Motorcycle Association.

Nikkei Asia said the omicron epidemic and the lockdowns in China greatly undercut production, leaving automakers unable to meet demand.

Japan's auto sales peaked in 1990 at 7.77 million units, meaning sales have tumbled by nearly half from the all-time high, according to Nikkei Asia. And the country's declining population offers little prospect for a significant recovery in sales in the foreseeable future.

According to Nikkei Asia, China surged past Japan to become the second-largest auto market in 2006. In 2009, China overtook the US to become the world's largest market. 

 

UN Security Council members stress Al Aqsa status quo

UN Security Council members voiced concern on Thursday and stressed the need to maintain a status quo at the Al Aqsa mosque compound in Jerusalem, days after Israel's new far-right security minister Itamar Ben-Gvir briefly visited the site, reports Reuters.

The decades-old status quo allows only Muslim worship at the compound, a site also revered by Jews, who call it the Temple Mount. An Israeli official said Ben-Gvir complied with the arrangement that allows non-Muslims to visit but not pray.

Palestinian UN envoy Riyad Mansour pushed for the Security Council to take action - a move that was unlikely given the United States traditionally shields Israel. The United States, Russia, China, France and Britain are all council veto powers.

"What red line does Israel need to cross for the Security Council to finally say, enough is enough," Mansour told the 15-member council, accusing Israel of showing absolute contempt.

Senior UN political affairs official, Khaled Khiari, told the council it was the first visit to the site by an Israeli cabinet minister since 2017.

"While the visit was not accompanied or followed by violence, it is seen as particularly inflammatory given Ben-Gvir's past advocacy for changes to the status quo," he said.

UN Secretary-General Antonio Guterres has called for all parties to refrain from steps that could escalate tensions in and around the holy sites

Israel's UN Ambassador Gilad Erdan told reporters ahead of the meeting, "Jews are permitted to visit the holiest site in Judaism. It is the right of every Jew, every Jew. Israel has not harmed the status quo and has no plans to do so."

Ben-Gvir once called for ending the ban on Jewish prayer at the site, but has been non-committal on the issue since aligning with Israeli Prime Minister Benjamin Netanyahu. Other members of Ben-Gvir's Jewish Power party still advocate such a move.

The United States is committed to a two-state solution to the conflict between Israel and the Palestinians and was "concerned by any unilateral acts that exacerbate tensions or undermine the viability of a two-state solution," US Deputy UN Ambassador Robert Wood told the council.

"We note that Prime Minister Netanyahu's governing platform calls for preservation of the status quo with relation to the holy places. We expect the Government of Israel to follow through on that commitment," Wood said

Maritime City of Fuzhou

Recently, the promotional video of Fuzhou of Fujian Province, titled "What You Didn't Know about Fuzhou -- a Maritime City", was released through overseas social media accounts including "Paris Oriental Center", "Discover Fujian" and "Discover Fuzhou", showing the world Fuzhou, a Maritime City featuring wisdom, innovation, ecology and prosperity.

In the promotional video, Fuzhou's advanced international logistics industry, national deep-sea fishing base, national key cold-chain logistics center and other coastal industries are located on the long coastline which is witnessing a growing marine economy driven by innovation in science and technology.

With superb maritime conditions, Fuzhou's fishing industry is marching into the deeper sea, and the processing of aquatic products becomes more sophisticated, driving the sustainable development of marine industries.

The Golden Coastline of Fuzhou is a paradise for tourists to get closer to the sea where they can feast their eyes on the stunning scenery, enjoy leisure time, learn about the local naval history, use facilities for recreation and fitness or simply stroll along the walkway.

International maritime cooperation programs, such as the "Two Countries, Twin Parks" Project jointly launched by China and Indonesia are making faster progress. A maritime innovation community in the urban sphere of Fuzhou is taking shape.

As one of the first open coastal cities in China, the pulse of Fuzhou's development always aligns with the tempo of the country's reform, according to the Publicity Department of the CPC Fuzhou Municipal Committee.

Nowadays, the vigorously growing marine economy is creating more advantages for Fuzhou. In the favorable context, Fuzhou is constantly tapping new potential for developing the Maritime City with unprecedented strength and boldness as well as a more open and broader vision.

 

Iran a major player of shipbuilding industry

Iran's shipbuilding industry, with more than 50 years of history, has been on a journey toward development since its establishment. At present Iran is considered one of the world’s major shipbuilders manufacturing and repairing all kinds of giant vessels.

Despite all the improvement achieved in the shipbuilding industry over the past few years, there are still many challenges in the way of this old but newly developed industry which calls for special attention.

Modernizing the shipbuilding industry is not only a commercial necessity but also a must Iran as the country heavily relies on its oil industry whose existence is dependent on ocean-going vessels.

As a vital sector in Iran’s shipbuilding industry, repairing must also be given special significance, since for many years Iranian oil tankers and large cargo vessels have been sent to foreign yards for periodic overhauls and this has imposed huge costs on the country’s economy.

Considering Iran’s special geographical position in the region and its shared borders with several coastal countries both in the south and north, shipbuilding has always been among the major industries strongly entangled with the country’s economy.

As Iran’s first modern shipbuilding complex, the Iran Marine Industrial Company, also known as SADRA, was established in 1968 as a small ship repair yard in Bushehr Province, southern Iran. Since then, the company has developed into a major shipbuilding and ship-repairing company in Iran and in the region.

Later in 1973, Iran Shipbuilding and Offshore Industries Complex (ISOICO), which is a subsidiary of the Industrial Development and Renovation Organization of Iran (IDRO), was established as the largest shipbuilding complex in West Asia, in an area of 1100 hectares, 37 kilometers west of the southern port of Bandar Abbas.

At the initial stage, the complex was established with the aim of creating facilities for repairing small and medium-sized vessels. Later, the complex’s equipment and facilities were developed for the construction and repair of large tankers.

In July 2019, ISOICO successfully finished the overhaul operation of a supertanker for the first time inside the country. Iranian technicians managed to repair the oil supertanker “DORE” inside the country for the first time in the history of Iran’s shipping industry.

Following the successful overhaul of the mentioned supertanker, major domestic ship-owners like the National Iranian Tanker Company (NITC) and the Islamic Republic of Iran Shipping Lines (IRISL), started referring a major part of their overhaul operations to local yards in order to reduce their costs and also to encourage domestic yards to expand their works.

Following the footsteps of the country’s two major shipbuilders, new private companies have also entered the sector over the past few years, making the industry expand its roots both inside the country and at the global level.

According to Saeid Jafari, Director General of the Maritime Industry Department at the Ministry of Industry, Mining and Trade, there are currently 23 yards active in the country which is able to fully meet the needs in this sector.

In addition to repair operations, Iranian shipbuilding companies have also successfully built three large oil tankers for Venezuela.

In September 2022, Venezuelan President Nicolas Maduro announced receiving the third "advanced" oil tanker from Iran as part of a bilateral arrangement.

“We have just received another ship with the most advanced engineering and technology in the world,” Maduro said according to Venezuelan state TV. He said that the ship was manufactured by Iran upon Venezuela’s order.

Also, in late December 2022, Head of the SADRA Company’s Caspian Complex Meysam Ra'yat Azad said the company is currently repairing a Russian vessel that has hit large pieces of ice in the Volga River.

This is the first time that a Russian vessel is being repaired by Iran Marine Industrial Company, the official said.

Specialists of the SADRA company are currently trying to fix some of the damages caused to this bulk ship, he added.

Considering all the improvements in Iran’s shipbuilding industry, the sector still has a long way ahead to reach its full potential. The first step in this regard is to develop infrastructure and train more specialized and skilled manpower.

Marginal issues such as customs and clearance problems, etc. should also be seriously considered in order to lure in foreign customers and expand activities at an international level.

Measures should also be taken for all ship repair operations to be carried out in one place. Sometimes a part of the overhaul is carried out in a yard, but due to the lack of infrastructure, skill, or equipment other parts are referred to foreign companies. In this case, the ship owner must spend twice the port fees, the cost of transportation, and most importantly the time for the ship to get ready.

Another important factor that should be taken into consideration is marketing. Shipbuilding yards in Iran are mostly focused on repairing or building ships for domestic companies like NITC and IRISL, however, these companies have only a limited number of orders every year. Iranian shipbuilding yards need to get more orders since more work means more revenue and more money would lead to more development.