Market News & Updates

April 2026

MEPC 84: What is at Stake in London and What it Means for African Shipping

The 84th session of the International Maritime Organization's Marine Environment Protection Committee (MEPC 84) is now underway in London, chaired by Dr. Harry Conway of Liberia, with Mr. Hanqiang Tan of Singapore as Vice-Chair [1]. As the first full session following the adjournment of the Net-Zero Framework (NZF) at MEPC/ES.2 in October 2025, this meeting carries significant implications for the future of maritime environmental regulation—and particularly for African stakeholders.

The Current Context

MEPC 84 convenes amid continued divergence over the IMO Net-Zero Framework. The framework, approved at MEPC 83 in April 2025, was set for adoption at MEPC/ES.2 but was postponed for one year following a vote of 57 in favor, 49 against, and 21 abstentions [2]. The United States has since submitted a letter calling for the outright cancellation of the October 2026 extraordinary session, arguing the NZF would have "dire economic consequences" and that the IMO should not become a "global climate bank" [3]. European states, meanwhile, continue to defend the framework's carbon-pricing core [4].

Key Agenda Items Under Active Negotiation

1. The Net-Zero Framework: Finding a Path Forward

Under Agenda Item 7, the Committee is considering 57 documents related to GHG emissions reduction, with a Working Group on Reduction of GHG Emissions from Ships expected to be established during the session [1]. Agenda Item 14 addresses options for resuming MEPC/ES.2, anticipated for October or November 2026 [5][2].

The Intersessional Working Group on GHG Emissions (ISWG-GHG 21) met from 20–24 April 2026 and is reporting to MEPC 84 on technical guidelines for NZF implementation, the LCA framework, and terms of reference for the 5th IMO GHG Study [1]. However, these technical discussions proceed without prejudice to any future decision on NZF adoption [6].

2. MARPOL Annex VI Amendments

The Committee is considering for adoption draft amendments including:

• North-East Atlantic Emission Control Area: Designation as an ECA for NOx, SOx, and particulate matter [1][7]

• IMO Data Collection System: Clarification of reporting entries and enhanced public accessibility of ship fuel consumption data [1]

• Engine operational profiles: Definitions and IAPP Certificate updates for marine diesel engines with multiple operational profiles [1]

• Volatile organic compounds: Requirements for new crude oil tankers to install pressure-vacuum devices [7]

3. Air Pollution and Energy Efficiency

The Committee is expected to note 2024 fuel oil consumption data and fleet carbon intensity reports [1]. Phase 2 of the short-term measure review (EEXI, SEEMP, CII) is being initiated, with consideration of enhanced SEEMP frameworks, revised CII metrics, and wind propulsion calculations [1].

Draft 2026 Guidelines for methane and nitrous oxide emissions measurement from marine engines are also on the agenda for finalization [1].

4. Marine Plastic Litter

The draft 2026 Strategy and Action Plan to Address Marine Plastic Litter from Ships is expected for adoption, targeting zero plastic waste discharges by 2030 [1]. The Committee is also considering a recommendation to develop a mandatory code for plastic pellet transport in freight containers under MARPOL Annex III and/or SOLAS [1].

5. Ballast Water Management

A package of amendments to the BWM Convention is expected for approval following the experience-building phase review, alongside revised Guidelines for ballast water management plans (G4) [1].

African Positions and Submissions

Several African and Africa-relevant submissions are before the Committee:

• DRC, Ghana, and Togo have submitted proposals on Net-Zero Fund governance and operational frameworks [2]

• Algeria has co-sponsored a submission with other oil-producing states on principles for safeguarding international trade and energy security during transition [2]

• Liberia, as chair of the session and a major flag state, has shifted from prior NZF support to calling for framework revision alongside Panama—a significant development given Liberia's status as one of the world's largest registries [8]

Strategic Implications for African Maritime Stakeholders

For Ship Owners and Operators

The CII rating scheme is becoming increasingly commercially consequential. Document MEPC 84/6/8 indicates that ballast water management operations can negatively impact operational CII, potentially resulting in D or E ratings that affect certificates and Statements of Compliance [2]. With Phase 2 review now underway, operators should anticipate more stringent requirements through 2030.

For Port Authorities and Bunkering Hubs

The fuel availability criteria under discussion require alternative fuels to be accessible across major maritime regions including Africa [2]. The current state of alternative fuel bunkering infrastructure across the continent remains concentrated in limited hubs. Ports that do not advance green ammonia, methanol, or hydrogen readiness risk competitive disadvantage as charterers increasingly prioritize emissions performance.

For Policymakers and Regulators

The CBDR-RC versus NMFT tension remains unresolved. African delegations must navigate this while building technical capacity for IMO engagement. The delay in NZF adoption provides additional time for national maritime energy strategies and port development planning, but the direction of regulatory travel is clear.

What to Watch This Week

• Working Group outcomes on GHG reduction measures and NZF resumption options

• Adoption decisions on MARPOL Annex VI amendments, particularly the North-East Atlantic ECA

• Finalization of methane/nitrous oxide measurement guidelines

• Adoption of the 2026 Marine Plastic Litter Strategy

• Indications of whether MEPC/ES.2 will proceed as scheduled for October/November 2026

Conclusion

MEPC 84 is not expected to resolve the fundamental NZF disagreements that led to last October's adjournment. However, the session is advancing technical foundations and providing clarity on the path toward the extraordinary session resumption. For African maritime stakeholders, the imperative remains unchanged: decarbonization is inevitable, and the window for strategic preparation continues to narrow.

The Committee's report and outcomes will be considered on Friday, 1 May 2026 [1].

April 2026

What the Strait of Hormuz Closure Taught Us About Feeder Container Ships

The February 2026 Wake-Up Call

When Iran closed the Strait of Hormuz on February 28, 2026—blocking 20% of global oil and LNG flows—the container market learned a brutal lesson: geographic concentration is systemic risk [i]. While VLCCs grabbed headlines, the crisis exposed a deeper vulnerability that feeder vessels are uniquely positioned to solve.

Within five weeks, spot rates on every major east-west trade lane had risen sharply. Far East to U.S. West Coast rates—transiting the Pacific thousands of miles from the conflict—climbed 29% [ii]. The lesson? In an interconnected network, no route is insulated from chokepoint disruption.

Three Strategic Lessons for Asset Owners

1. Redundancy Beats Efficiency

Mega-ships optimized for hub-and-spoke economics became stranded assets overnight. Major carriers including Maersk, CMA CGM, and Hapag-Lloyd suspended Hormuz transits, forcing reroutes around Africa that added weeks to transit times [i]. Feeder vessels provided the flexibility to bypass congested hubs, shuttle cargo through secondary ports, and maintain regional connectivity when primary arteries clogged. The crisis proved that distributed networks outperform centralized ones in disruption. Feeders are the infrastructure of distribution.

2. Proximity Commands Premium

The Hormuz closure trapped millions of containers in the Persian Gulf and created immediate capacity crunches on regional trades [iii]. Larger vessels committed to long-haul routes couldn't pivot. Feeder operators, meanwhile, captured emergency charter premiums.

The market data validates this: Euroseas recently fixed its 1,740 TEU EM Spetses (2007-built) for 22-24 months at $21,500/day—a $3,000 daily increase over its previous rate, generating approximately $8.9 million in EBITDA over the minimum period [iv][v]. This isn't spot volatility; it's the feeder premium in action. Euroseas' charter coverage now stands at 87% for 2026, 71% for 2027, and 41% for 2028—forward visibility that larger segments cannot match [v].

3. Regulatory Compliance Is Competitive Advantage

The Hormuz crisis coincided with new IMO regulations effective January 2026 that are accelerating vintage tonnage obsolescence:

• Mandatory container loss reporting (SOLAS V/31 & 32) [vi][vii]

• PFOS firefighting foam prohibition requiring system replacement at first survey after January 2026 [viii][ix]

• Electronic inclinometers mandatory for new container ships 3,000 GT+ [vi]

Modern built feeders carry embedded compliance that 2000s-era vessels now struggle to match. As Euroseas' CEO Aristides Pittas noted, "activity across the feeder segment remains firm, as operators move to secure their requirements amid a tight container chartering market with very limited tonnage availability" [iv].

The Investment Implication

The Hormuz closure didn't create feeder demand—it revealed why feeder demand is structural. With shipyard slots for complex vessels booked through 2028 [x], secondhand modern feeders represent the only near-term supply expansion option.

Carriers are now paying premiums for:

• Immediate availability (no newbuild delivery slots)

• Route flexibility (feeder draft/beam specifications)

• Regulatory certainty (full IMO 2026 compliance)

Modern built feeders aren't just assets , they're the infrastructure resilience that global trade now requires.

March  2026

S&P Market Activity: Confidence Beneath Uncertainty

Record Volume, Strategic Intent

Q1 2026 delivered one of the most active S&P periods on record. Clarksons Research reported 351 transactions worth $11.5 billion, with January alone accounting for 40% of total volume—reflecting decisive positioning against a volatile geopolitical backdrop (i, ii). Tankers dominated with 164 vessels at $7.8 billion, led by VLCCs averaging $81 million (i).

The Freight-Asset Value Disconnect

Spot rates and vessel values have structurally decoupled. While Clarksons' weighted bulkcarrier earnings averaged $13,898/day in 2025—down 8% year-on-year but 5% above the 10-year average—secondhand prices remained firm (i). The Clarksons Secondhand Price Index rose 9% across 2025 to its highest level outside the 2006–2008 and 2022 boom periods (i).

This divergence reflects time charter underwriting, not spot sentiment. Buyers are acquiring based on contracted revenue visibility. In the feeder segment, Euroseas secured 87% charter coverage for 2026 and 71% for 2027, de-risking cash flows from acquisition day one (iii).

Strategic Buyer Behavior

Container shipping data illustrates the shift: despite freight weakness, 332 vessels (859,000 TEU) sold for further trading in 2025, closely matching 2024 volumes (iv). The 900–2,000 TEU feeder segment led with 162 transactions—up significantly year-on-year—as owners pursued fleet renewal and regulatory compliance (iv).

BIMCO notes that low ship recycling activity threatens market strength across sectors, with recycling rates suppressed by low steel prices and new regulations affecting yard capacity (v). This supply constraint supports asset values for compliant modern tonnage.

Execution and Access as Differentiators

In a competitive environment, relationships and speed of execution determine transaction success. Greek owners led 2025 liquidity provision, while Clarksons' S&P team maintained strong market share across 2,000+ vessels sold exceeding $45 billion in value—up over 10% year-on-year in tonnage terms (i).

The VLCC age spread (5-year vs. 10-year) has compressed from 25% to 20%, reflecting buyer confidence that earnings durability extends across vintages (vi). This creates opportunities for owners of 2022 and 2024-built vessels to achieve premium pricing while offering buyers defensible long-term value.

Conclusion

The current S&P market reflects disciplined capital allocation rather than speculative momentum. With shipyard slots for complex vessels booked through 2028 and Maritime Strategies International forecasting 40 million GT contracting in 2027 as the ordering cycle nadir, secondhand modern tonnage offers immediate, compliant earnings capacity (vii).

For sellers of  vessels with charter coverage, the window remains open. For buyers, the imperative is securing operational capability in a supply-constrained environment. In both cases, execution discipline and market access remain the critical success factors.

February 2026

Container Shipping: Structural Growth Momentum Continues

Container shipping enters 2026 demonstrating resilient fundamentals that differentiate it from commodity-driven bulk segments. As shipbrokers active in this market, we observe sustained demand drivers supporting both vessel values and transaction liquidity.

Current Market Activity

Newbuild Investment Surge

January 2026 saw unprecedented ordering activity. Major carriers committed over $5 billion in new vessel contracts within weeks, including COSCO's $2.7 billion LNG dual-fuel order and Evergreen's $1.47 billion feeder expansion [i][ii]. This signals carrier confidence in long-term container demand despite near-term supply pressures.

Secondhand Market Firming

Handy container vessel values have strengthened across the board following recent transactions. Modern and older tonnage alike is attracting buyer interest, with post-panamax segments holding steady [iii]. This pricing support benefits owners considering asset sales.

Fleet Dynamics

Container fleet growth is expected to moderate to 3–4% in 2026—a temporary slowdown following record deliveries in 2024–2025. However, with an orderbook equivalent to over 30% of active fleet capacity, supply growth will reaccelerate in 2027–2028 [iv], creating a window of opportunity for vessel sales in early 2026 before supply pressure intensifies.

Demand Fundamentals

Global container volumes reached an estimated 193 million TEUs in 2025 (+4.5% year-on-year), demonstrating structural resilience despite geopolitical disruptions [v][vi]. Key growth drivers include:

• E-commerce expansion driving intra-regional and intercontinental flows

• Supply chain containerisation of previously break-bulk cargoes

• Manufactured goods trade resilience in consumer and industrial sectors

The Bulk Market Contrast

Unlike container shipping's consumer-driven stability, bulk shipping remains tethered to volatile commodity supercycles. While bulk carriers saw active S&P markets in early 2026 (particularly for modern tonnage), earnings fluctuate with industrial demand swings—creating valuation uncertainty that container assets largely avoid [iii][iv].

Shipbroking Perspective

For owners considering container vessel sales, current market conditions offer:

• Active buyer pools (Greek and Chinese investors particularly engaged)

• Firm asset values supported by recent comparable transactions

• Timing advantage ahead of 2027–2028 supply wave

The structural shift toward containerisation in global supply chains continues to underpin long-term demand. This positions container vessels as strategically valuable assets compared to cyclical bulk alternatives.