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TRANSCRIPT
International Association of Marine and Shipping Professionls
NEWS BULLETIN
07 – 13 Jan 2019
CALL US ON +41 22 519 27 35 @ [email protected]
WWW.IAMSP.ORG
About I.A.M.S.P
The International Association of Marine and Shipping Professionals (IAMSP) is the
professional body for Marine and Shipping professionals world-wide, formed in 2015. The
association is an independent, non-political organization aims to:
Contribute to the promotion and protection of maritime activities of the shipping industry,
the study of their development opportunities and more generally everything concerning
these activities.
Promote the development of occupations related to maritime and shipping; serve as a point
of contact and effective term for the business relationship with the shipping industry
(charter brokers, traders, shipping agents, Marine surveyors, ship inspectors, ship-
managers, sailors, and stevedores etc.).
Ensuring the representation of its members to the institutions, national and international
organizations as well as with governments, communities and professional groups while
promoting the exchange of information, skills and the exchange of experience.
Develop the partnership relations sponsorship, collaboration between IAMSP and other
associations, companies, national and international organizations involved in activities
related to Maritimes and shipping.
Contribute to the update and improvement of professional knowledge of its members
and raise their skill levels to international standards.
Progress towards a comprehensive and integrated view of all marine areas and the
activities and resources related to the sea.
Terminal operators Chile: DP World to buy major stake in Puertos y Logistica SA for $502 million
13/01/2019
Major port operator DP World said on Sunday it had agreed to acquire a 71.3 percent stake in Chile’s Puertos y Logistica SA (Pulogsa) from Minera Valparaiso and other shareholders associated with the Matte Group.
Pulogsa operates a long-term concession for Puerto Central in San Antonio and owns and operates Puerto Lirquen in Chile’s south. The agreement is dependent on a tender to acquire all outstanding shares of Santiago stock exchange listed Pulogsa.
Dubai’s DP World said it would offer $502 million for 100 percent equity ownership. DP World, one of the world’s largest port operators, said that Pulogsa had net financial debt of $226 million as of September 30 and that the transaction was expected to close in the first half of the year. It also said it expected the deal to be “earnings accretive in the first full year of consolidation” and would be financed from existing balance resources.
[Reuters]
Operadores de terminales Chile: DP World asumirá el control de Puerto Central de San Antonio y Puerto Lirquén
13/01/2019 DP World, top 5 operador portuario a nivel global que moviliza más de 70 millones de TEU, anunció hoy que alcanzó un acuerdo para adquirir la participación del 71,3% de Puertos y Logística S.A. (“Pulogsa”). Pulogsa opera la concesión de Puerto Central (PCE) en San Antonio, en la zona central de Chile y posee la propiedad y operación de Puerto Lirquén (PLQ) en la región del Biobío, en la zona centro sur del país. Pulogsa, propiedad de Minera Valparaíso y de otros accionistas asociados al Grupo Matte, cotiza en la bolsa de Santiago, y la adquisición se efectuará, en el marco del proceso de licitación, a través de una Oferta Pública de US$502 millones para adquirir 100% de la participación accionaria. Al 30 de septiembre de 2018, Pulogsa tenía una deuda financiera neta de US$226 millones. Se espera que la adquisición sea rentable en el primer año completo de consolidación y se espera que sea financiada con los recursos dados en el balance de la operación. La transacción está sujeta al consentimiento de terceras partes relevantes y se espera que la operación esté cerrada en la primera mitad de 2019. PCE es una terminal multipropósito ubicada en San Antonio, que es la puerta de entrada a la capital de Chile, Santiago, y a las principales áreas industriales,comerciales y agrícolas del país sudamericano. PCE es uno de los puertos de contenedores más grandes del Chile (con capacidad de 1 millón de TEU) con inversiones recientes en infraestructura, que la convierten
en la terminal más moderna de Chile. Además, tiene el potencial para una mayor expansión de capacidad para operaciones contenerizadas como multipropósito. PLQ, en tanto, es una terminal multipropósito que incorpora concesiones marítimas a largo plazo en un área en la que tiene absoluta propiedad. La terminal maneja contenedores, carga fraccionada y graneles sólidos. Se encuentra estratégicamente posicionado para beneficiarse de la industria de la celulosa y de la madera del centro sur de Chile, en una zona adyacente al segundo centro urbano e industrial más grande de Chile, Concepción. De acuerdo con DP World, PCE y PLQ son terminales "de lo mejor en su clase" en sus respectivos mercados y con contratos de operaciones a largo plazo con una fuerte y diversificada transferencia de carga y una significativa capacidad de expansión. El valor global de la propuesta para estos terminales es convincente y la adición de capacidad a nuestro portafolio ayudará a impulsar el valor a largo plazo a todos nuestros grupos de interés. Scotiabank actúa como asesor financiero de DP World, durante el desarrollo de la operación. [MundoMarítimo]
Norway: Equinor gets permit for subsea carbon storage project
11/01/2019 The government of Norway has awarded state-owned oil firm Equinor a permit for its "Northern Lights" CO2 storage project on the Norwegian Continental Shelf (NCS).
Illustration of the Northern Lights CCS project. Credit: Equinor
The permit is the first of its kind on the NCS, and it aligns with a government goal to develop and export new technologies for carbon capture and storage (CCS). The offshore storage site
would receive CO2 captured from three large industrial plants on shore, with tankers carrying the carbon from the point of origin in Oslo to the project location. The project area was first announced last July, and Equinor is currently performing FEED studies on storage with its partners, Shell and Total. The FEED studies, which will be furthered by the permit, will provide more accurate cost estimates to support an investment decision. Equinor's storage method is a proven process: the company has been injecting recovered CO2 back into the ground for decades. In current operations at the Sleipner platform, Equinor extracts carbon dioxide out of a CO2-rich natural gas stream, then reinjects it into a sandstone formation. This carbon capture and storage method reduces Equinor's exposure to Norway's steep CO2 tax. On the same day as the carbon capture permit was awarded, Equinor completed the purchase of Chevron's 40 percent operating stake in the Rosebank oil project on the UK Continental Shelf. The acquisition adds to its large portfolio of oil and gas E&P holdings on the UKCS, which help make it the largest supplier of crude oil and natural gas in the United Kingdom. [The Maritime Executive]
Shifting north magnetic pole forces unprecedented navigation fix
11/01/2019 By Alister Doyle Rapid shifts in the Earth’s north magnetic pole are forcing researchers to make an unprecedented early update to a model that helps navigation by ships, planes and submarines in the Arctic, scientists said. Compass needles point towards the north magnetic pole, a point which has crept unpredictably from the coast of northern Canada a century ago to the middle of the Arctic Ocean, moving towards Russia. “It’s moving at about 50 km (30 miles) a year. It didn’t move much between 1900 and 1980 but it’s really accelerated in the past 40 years,” Ciaran Beggan, of the British Geological Survey in Edinburgh, told Reuters on Friday. A five-year update of a World Magnetic Model was due in 2020 but the U.S. military requested an unprecedented early review, he said. The BGS runs the model with the U.S. National Oceanic and Atmospheric Administration. Beggan said the moving pole affected navigation, mainly in the Arctic Ocean north of Canada. NATO and the U.S. and British militaries are among those using the magnetic model, as well
as civilian navigation. The wandering pole is driven by unpredictable changes in liquid iron
deep inside the Earth. An update will be released on January 30, the journal Nature said,
delayed from January 15 because of the U.S. government shutdown.
“The fact that the pole is going fast makes this region more prone to large errors,” Arnaud
Chulliat, a geomagnetist at the University of Colorado Boulder and NOAA’s National Centers
for Environmental Information, told Nature.
Beggan said the recent shifts in the north magnetic pole would be unnoticed by most people
outside the Arctic, for instance using smartphones in New York, Beijing or London. Navigation
systems in cars or phones rely on radio waves from satellites high above the Earth to pinpoint
their position on the ground.
“It doesn’t really affect mid or low latitudes,” Beggan said. “It wouldn’t really affect anyone
driving a car.” Many smartphones have inbuilt compasses to help to orientate maps or games
such as Pokemon Go. In most places, however, the compass would be pointing only
fractionally wrong, within errors allowed in the five-year models, Beggan said.
[Reuters]
First European shipping company signs Green Shipping Guarantee Program 11/01/2019 By Shailaja A. Lakshmi The European Investment Bank (EIB) announces the signature of the first agreement under its Green Shipping Guarantee Programme (GSGP) through ABN Amro. The EIB will contribute EUR 10.1 million to an ABN AMRO arranged facility to finance the construction of three cement carrier vessels for the Eureka Shipping group, said a press release. The project vessels’ design represents an improvement to the overall environmental performance of the promoter’s fleet, as well as cement carrier vessels currently operating in European waters. The new vessels, which will be laid up in the Netherlands, will operate with significantly better fuel efficiency and reduced emissions of pollutants. All three new ships will be built and operated in compliance with IMO and EU regulations and will operate under an EU flag. They will serve northern European ports, predominantly in the Sulphur Emission Control Areas (SECAs) of the Baltic and North Sea. The project will contribute to a modal shift in which, instead of by road, goods are transported by sea, which is considered to be the most sustainable transport mode for this type of cargo. This will help to reduce the overall climate impact of transport, and specifically the promoter’s carbon footprint. [MarineLink]
Container shipping: Freightos Baltic container report – Week 1
11/01/2019
The 90-day truce on the latest China trade tariff increase caused transpacific pricing to fall
through December. A new year, and new price increases – a combination of fuel-related
surcharge increases and General Rate Increases (GRIs).
Carriers are seeking to cash in on an uptick in demand caused by post-Christmas
replenishment and the looming Chinese New Year shutdown. As a consequence, this week
China to US West Coast prices jumped 16% (from $1,722 to $2,003) and China to US East
Coast prices jumped 13% (from $2,779 to $3,137).
Source: Freightos
China to North Europe prices also jumped 13%, with more to come as other carriers have
announced Freight All Kinds (FAK) increases for later in the month. Coming into contract
renegotiation time at this time, carriers will be hoping that spot prices stay high.
Here’s the playbook. Transpacific ocean prices drop just before Christmas, and then pick up
again early January as logistics managers start replenishing stock. Chinese New Year
shutdown causes prices to spike again, but after that, they fall away until next peak season.
“Well, President Trump tore up the playbook. Importers, fearing trade tariff increases, imported early, pushing prices up from early summer. They were already over-stocked before the latest trade tariff got a 90-day reprieve. If the tariffs go back on, prices will go up again.” –Philip von Mecklenburg-Blumenthal, VP of FBX, Freighto
Source: Freightos
The 90-day truce on the latest China trade tariff increase had caused transpacific pricing to fall through December. That changed this week when a combination of GRI and fuel-related surcharge increases saw China to US West Coast prices increase 16% (from $1,722 to $2,003). Similarly China to US East Coast prices jumped 13% (from $2,779 to $3,137). China to North Europe prices also jumped 13% and more carriers will increase their FAK rates during the month. Coming into contract renegotiation time at this time, carriers will be hoping that spot prices stay high. With these three indexes all up, the global index also jumped this week, by 10% to $1,552. The Freightos Baltic Indices reflect weekly spot rates for 40-foot containers based on 12 to 18 million price points collected every week on 12 main shipping trade lanes. The data includes a headline index – the FBX Global Container Index (FBX) – a weighted average of the 12 underlying route indexes. [Baltic Briefing]
Oil shipping: Tanker report – Week 2
11/01/2019 VLCC In the Middle East Gulf, the market came under renewed downward pressure, with 270,000mt to China fixed five points lower at WS 57. Going west, rates for 280,000mt to the US Gulf
were assessed at WS 24.5, basis Cape to Cape. West Africa to China basis 260,000mt saw little enquiry and the market dropped 6.25 points to WS 53.75. Occidental fixed US Gulf to Singapore to China at $6.15 to 7.15 million respectively while Reliance fixed Jose to Sikka at $5.15 million, although there was talk of $5.7 million having been done here. Rotterdam to Singapore went at $4.95 million, down $150,000. Suezmax
West Africa saw falling rates, with the market easing to low WS 80s for 130,000mt to UK- Continent, before improved volumes of enquiry saw rates recover to almost WS 93. Black Sea to Mediterranean rates for 135,000mt held in the low-mid WS 130s, with Turkish Straits delays still around 30 days total north and southbound. Aframax UML fixed 80,000mt from Ceyhan at WS 170, with the Black Sea paying mid to high WS 170s. In the Baltic, BP took Sovcomflot tonnage for 100,000mt at WS 85, down almost 25 points. Cross North Sea 80,000mt now sits at WS 105 in contrast to WS 114 the previous week. Healthy tonnage availability saw Caribbean rates for 70,000mt from Venezuela to the US Gulf lose 50 points to WS 150. Clean Rates for 75,000mt Middle East Gulf to Japan nudged up around five points to WS 127.5. The market for 55,000mt eventually eased from low WS 160s to WS 152.5. Healthy activity saw the market for 37,000mt Continent/USAC firm almost 25 points to WS 140. In contrast, the 38,000mt backhaul trade from the US Gulf lost around 11.5 points to WS 113.5 level. [Baltic Briefing]
Dry bulk shipping: Bulk report – Week 2
11/01/2019 Capesize Dashed hopes summed up the first full week of the New Year. A slow start followed by a busy 24 hours of improving rates and a firming FFA market fuelled positive sentiment, only to see both paper and physical sales slide the next day. West Australia to China rates briefly moved closer to the high $6.00s, but ended the week at $6.25, as a 2002-built vessel fixed at this rate from Dampier. The ship was re-let having fixed on timecharter at $9,000 daily basis Hong Kong delivery. The Australian miners slowed the pace as the week ended with at least one now bidding $6.00. Brazil to China rates improved briefly, with business fixed in the low $18.00s for January, but dropped sharply lower. However, a 1 to 10 February has now been done at $17.50. Similarly
in the North Atlantic, a tighter tonnage supply saw fronthaul rates in the low $30,000s for a 171,000 tonner. There was transatlantic activity, with the BCI C7 Puerto Bolivar to Rotterdam route fixed at $9.00. Panamax With a complete return to work for the first full week of the year it was perhaps no surprise that it was very active, with a large volume of trades reported. Despite the increased activity, there remained too many early vessels in the Atlantic, combined with ballasters from the East, forcing rates lower throughout the week, with many having to wait for later laydays. The transatlantic index dropped $2,500 Monday to Thursday and was still considered by many to be overmarked.
South America also softened, with well described Kamsarmaxes fixed at $13,750 plus $375,000 ballast bonus. In the North Pacific saw a busy week but lacked support from the minerals trades, although there was a noticeable increase in cargoes to India during the second half of the week. Indonesia has been disappointing, with rates especially for smaller units hit harder. Some vessels had to wait for later cargoes, but in spite of the weakened spot levels, there were still several short period fixtures concluded. Supramax The first full week back after the holidays was not encouraging, with the Baltic Supramax Index (BSI) falling and tonnage supply outweighing demand in many areas. Limited period activity surfaced, but a 61,000dwt vessel was reported delivery Japan for four to six months trading at $12,500. The Atlantic suffered especially from the US Gulf-US East Coast area where rates fell and a 56,000dwt ship fixed at $14,000 from the East Coast to the Mediterranean. From the Mediterranean, an Ultramax was rumoured fixed in the $19,000s for a trip to the Far East. The Asian arena had a mixed start. From the Indian Ocean a 60,200 tonner fixed delivery South Africa trip to the Far East at $12,400, plus $250,000 ballast bonus. A 56,000dwt vessel agreed delivery Kobe for a North Pacific round at $10,000. Limited action in Southeast Asia but a 53,000 tonner open Cebu went for a trip via Indonesia, redelivery Southeast Asia, at $8,000. Handysize The first full week back began on a low note, with routes across all areas losing ground. Due to a good supply of prompt tonnage from East Coast South America, and a lack of fresh enquiry from the US Gulf, rates slipped. From East Coast South America a 32,000dwt vessel was booked at around $10,000 for a trip to Morocco. A 33,000 tonner went to a grain house at $9,500 delivery Recalada for a transatlantic run. The market remained depressed in the US Gulf, a 38,000dwt ship fixed to the Continent at $9,000.
From the Continent, mid-size Handysizes were also around $9,000 for trips to the
Mediterranean. In the East, the market lacked impetus. From the North a 38,100 tonner
fixed from CJK to Southeast Asia in the high $7,000s. Further South, a 35,000dwt vessel
agreed a steel run from South China to Indonesia in the mid-high $7,000s.
[Baltic Briefing]
Gas shipping Philippines: Phoenix Petroleum gets green light for LNG import terminal
11/01/2019 By Enrico de la Cruz Philippines firm Phoenix Petroleum said on Friday it has won government approval to build the country’s first liquefied natural gas (LNG) import terminal in partnership with China National Offshore Oil Corp (CNOOC). Phoenix, a fuel retailer, said it plans to break ground this year for the LNG regasification and receiving terminal south of the capital Manila, in a country that still relies heavily on coal as a fuel source. The company said its Tanglawan Philippine LNG Inc unit, which will undertake the project, is partnering with a unit of CNOOC Gas and Power Group Co. Ltd., China’s largest LNG importer and terminal operator.
The LNG facility is expected to have a capacity of 2.2 million tonnes per year, with commercial operations targeted to start by 2023, Phoenix said in a regulatory filing. The Philippines has been looking to start importing LNG to feed gas-fired power plants in Batangas, south of the capital, as domestic gas supplies from its Malampaya field are set to run out in 2024 at the earliest. Phoenix, owned by local businessman Dennis Uy who helped bankroll Philippine President Rodrigo Duterte’s 2016 election campaign, also plans to build a 2,000-megawatt gas-fired power plant as part of the integrated project in Batangas province. Phoenix did not say how much the LNG project would cost, but the Department of Energy (DOE) previously estimated total investment for such a facility could reach $2 billion. Dozens of domestic and foreign companies had expressed interest in the LNG project, but only three groups, including the Phoenix-CNOOC group, were short-listed. The other two were state- owned Philippine National Oil Company and power producer First Gen Corp with Tokyo Gas. Whether the two other groups would be allowed to build their own facilities would depend on the viability of their project proposals, DOE Assistant Secretary Leonido Pulido told Reuters. First Gen operates four power plants in Batangas with a combined capacity of about 2,000 MW, all running on Malampaya natural gas. The Malampaya gas field, which lies near the disputed South China Sea waters and is operated by a unit of Royal Dutch Shell Plc, fuels plants that supply about 40 percent of the power for the main Luzon island. [Reuters]
Chemicals shipping: Two recent deals illustrate consolidation in the stainless steel chemical tanker sector.
11/01/2019 First, Mitsui OSK Lines (MOL) has confirmed that Singaspore-based MOL Chemical Tankers (MOLCT) has agreed with Nordic Tankers LuxCo (Triton) to acquire 100% shares of Nordic Tankers (NT) from Triton. MOLCT currently operates 56 deepsea stainless steel chemical tankers ranging from 19,000 dwt to 37,000 dwt worldwide, while NT operates 19 deepsea stainless steel chemical tankers mainly in the Transatlantic and Latin America trades. Although the trading areas are mostly diverse, their business strategies are in line, ie (a) with high COA portfolio and (b) multi-segregation tankers, MOL said. Second, BW Group was believed to have finalised the sale of its fleet of 13 chemical tankers to Ace Tankers Management. This acquisition was said to have been closed in December last year, between BW Chemicals and Ace Tankers Management. Ace has 15 chemical tankers in its fleet. The sale was rumoured in November, 2018, and the price tag was put at around $350 mill at the time. On joining Ace, the BW ships will operate in the Ace-Quantum Chemical Tankers (AQCT) Pool, a joint venture between Ace Tankers and Eastern Pacific Shipping. AQCT manages a fleet of more than 20 stainless steel chemical tankers. [Tanker operator]
Port development Spain: Huelva to invest EUR 113 million in infrastructure improvements in 2019
11/01/2019 By Julia Louppova The Board of Directors of the Port Authority of Huelva at its session in late December approved the 2019 business plan, which specifies the commitment to economic diversification, new cargoes and a new strategy aimed at taking advantage of the strengths and opportunities generated in the region. This commitment is strengthened by the 2018-2022 investment plan, which implies a total of EUR 113 mln for 2019. Huelva is located in the southwest of Spain, on the Gulf of Cadiz coast. It is a logistic and industrial hub for the region of Andalusia. Year 2017 has become a record one for Huelva, when the port reported a total throughput of 32.3 mln tonnes (+5.92% to 2016), of which 6.5 mln tonnes was dry bulk and 24.9 mln tonnes was liquid bulk, the
traditional cargoes of the port. The container traffic has grown almost 5-fold up to 57,590 TEU thanks to the terminal development by the Turkish port operator Yilport Holding. Due to the significant increase in container traffic as well as in Ro-Ro, the investment plan includes further development of the southern dock, by extending the quay line by 526m and by enabling the road accesses to this dock. Besides, the port intends to continue works on the new sewage and water collection network at the wharf of Engineer Juan Gonzalo and Ciudad de Palos. Also, the investment would cover the improvement works of road access to the port as well as development of the Logistics Activities Zone and later on, renovation of the Levante wharf. Now Huelva is part of the Trans-European Transport Network (TEN-T). As we informed last June, the European Commission accepted the proposal of Spain to expand the Atlantic and Mediterranean TEN-T Corridors to include the Spanish ports that used to be beyond the TEN- T, Huelva was one of these ports. [port.today]
Training & education: Pocket guides – new concept from Seagull 11/01/2019 Last year, Seagull Maritime introduced a new concept to its comprehensive library – The Pocket Guide. This was developed as a supplement to the company’s e-learning modules. The Pocket Guide is an electronic tool in Seagull Training Administrator (STA), that comes with a ‘to the point’ summary of a specific topic. There is no assessment or self-test, but a printable checklist, guideline or summary at the end.
Each Pocket Guide consists of two parts: 1. Summary of the topic (5–10 mins). 2. Printable checklist, guideline or formula. They can be used as a tool, put together for any topic or as a supplement to other training methods. Thus far, three Pocket Guides have been put together - • Drill efficiency - Preparing for drills: This Pocket Guide assists in planning, preparing, monitoring and evaluating drills, helping to reduce the consequences of emergency situations. • Port State Control - Preparing for Inspections: When preparing for an inspection, focusing on all the areas in the Pocket Guide will help minimise the risk of fines and detentions. • MARPOL Annex VI - Preparing for Inspections: This Pocket Guide complies with MARPOL Annex VI requirements and prepares crew members for a PSC concentrated inspection campaign. [Tanker Operator]
Flag of convenience casualties U.S: Panama-flagged capesize bulker refloated after grounding off Virginia Beach
11/01/2019 A capesize bulker has been successfully refloated after grounding in near Virginia Beach on Thursday. The 176,217 dwt JSW Salem, registered under the flag of convenience (FOC) of Panama, carrying a cargo of 120,000 tonnes of coal, grounded near Cape Henry Buoy #4. According to the US Coast Guard (USCG) the vessel was able to be refloated on the rising tide and the bulker was then escorted by a response boat to an anchorage. "Our top priority is always the safety of life," said Capt. Kevin Carroll, USCG commander of Sector Hampton Roads. "Preserving the environment and protecting maritime commerce are also some of our top priorities. We are pleased there were no injuries or pollution reported during this incident, and I applaud our Coast Guard crews and first responders that sprang into action to successfully resolve this incident." [Seatrade Maritime News]
Flag of convenience casualties Pacific: Panama-flagged car carrier Sincerity Ace under tow following fire
11/01/2018
By Chris Dupin
Owner of car carrier that caught fire on New Year’s Eve says the cause of the fire still is
undetermined.
Shoei Kisen Kaisha Ltd., the owner and manager of the car carrier Sincerity Ace, which
caught fire in the North Pacific on Dec. 31, says the ship has been taken under tow by the
salvage tug Koyo Maru and is being taken to a yet-to-be-determined location in the Far East.
The ship was on charter to Mitsui O.S.K. Lines.
The 650-foot car carrier, registered under the flag of convenience (FOC) of Panama, had a
crew of 21 when a fire started early Dec. 31. The crew battled the fire in an attempt to
extinguish it but were not successful and were forced to abandon the vessel. Five crew
members died and 16 were rescued by other merchant ships in the area. The tug’s crew was
unable to locate the bodies of the missing crew members.
A spokesman for Shoei Kisen Kaisha said the cause of the fire is unknown at this time, but
that it will work to try to determine a cause. When the tug arrived at the ship, there were no
flames and no more smoke is coming from the car carrier.
[American Shipper]
Casualties North Atlantic: Yantian Express fire under control; ship now
under tow to Halifax
10/01/2018
Hapag-Lloyd said Thursday a container fire onboard the Yantian Express is now under
control. The 7,510-TEU ship is being towed and is still about 800 nautical miles off the coast
of Canada. Jan 10, 2019
A fire broke out in one container on the deck of the Yantian Express on Jan. 3 and spread to
additional containers. The 7,510-TEU ship was en route from Colombo, Sri Lanka to Halifax,
Nova Scotia via the Suez Canal. All 23 crew members were evacuated to the salvage tug Smit
Nicobar, which arrived the day after the fire erupted, and no injuries were reported.
“Efforts to extinguish the fire have made continuous progress under the direction of the
salvage company Smit and in cooperation with the Hapag-Lloyd crew on the scene as well as
Hapag-Lloyd’s emergency response team in Hamburg. These combined efforts have allowed
the fire to be largely contained and brought under control,” Hapag-Lloyd said in a press
release Thursday,
The Yantian Express is being towed at a slow speed by the tug Maersk Mobiliser and was still
about 800 nautical miles off the coast of Canada Thursday morning, Hapag-Lloyd said. An
additional ocean-going tug is on its way to the Yantian Express and is expected to begin
assisting the operation on Sunday.
In a notice to customers posted on its website Thursday, Hapag-Lloyd said "Based on the
currently available information, we have to assume that all cargo in Bay 12 on deck and
forward is directly affected by the fire, also all cargo in Hold 1 (Bay 1 to 9). Further, we have
to expect that all cargo in Hold 2 (Bay 11 to 17) is affected by fire, smoke and / or damage
caused by firefighting water. Damage caused by smoke, heat and / or firefighting water in
adjacent areas is possible."
"All Reefers in Bay 1 to 24 are without power and switched off. All other Bays with Reefers
are continuously supplied with power and in operation."
"As soon as the full extent of such damages can be accurately determined, we will promptly
revert with further details. We fully understand that even at this point you would like to
have further clarification on your shipment(s) onboard. Please appreciate that at this
moment we are not in a position to provide any more specific information."
[American Shipper]
Casualties U.S.: Three Fishermen killed crossing Yaquina Bay bar in
Oregon
10/01/2019
By Mike Schuler
The commercial fishing vessel Mary B II capsized while crossing the bar at the entrance of
Yaquina Bay in Newport, Oregon on Tuesday night, killing three fishermen on board.
According to the U.S. Coast Guard, the three fishermen were inbound crossing the Yaquina
Bay Bar aboard the 42-foot Mary B II when the vessel capsized suddenly, tossing two of the
fishermen overboard into the stormy Pacific Ocean with waves reported at 14 to 16 feet and
occasionally over 20 feet.
The Coast Guard reported that prior to the capsizing, the crew of the Mary B II requested a
Coast Guard escort across the bar. A boat crew aboard a 52-foot Motor Life Boat from
Station Yaquina Bay went out to meet them, but 10:08 p.m., the fishing vessel capsized
without warning while under its own power with the boat crew nearby.
“The Victory’s crew immediately began searching for the fishermen, and called for more
support leading to another boat crew launching aboard a 47-foot MLB and an aircrew
aboard an MH-65 Dolphin helicopter from Air Facility Newport arriving on scene,” the Coast
Guard said. The Newport Fire Department was also notified and sent responders to North
Beach to conduct shore side searches.
The hull of the vessel was located by a Coast Guard aircrew near the North Jetty and
approximately 100 yards offshore. The Coast Guard aircrew also located the body of the first
recovered victim at 11:30 p.m. and a second victim washed ashore where it was found by
shoreside searchers. The third victim was spotted inside the hull of the vessel, however, bad
weather prevented responders from retrieving the body until the following morning.
An Air Facility Newport aircrew conducted an overflight and reported no visible pollution,
but lots of debris scattered around. Oregon State Park Rangers are in charge of gathering
the debris from the fishing vessel. The Coast Guard said the Mary B II had been crabbing for
three days before attempting to return to port with their reported catch. The U.S. Coast
Guard said it is investigating the incident.
[gCaptain]
Container shipping: World Container Index - 10 Jan 2018
10/01/2019
The World Container Index assessed by Drewry, a composite of container freight rates on 8
major routes to/from the US, Europe and Asia is down 5.7% to $1,689.95 per 40ft container.
Two-year spot freight rate trend for the World Container Index:
Our detailed assessment for Thursday, 10 Jan 2019
• The composite index is down 5.7% this week, similarly, 20.1% up as compared with
same period of 2018.
• The average composite index of the WCI, assessed by Drewry for year-to-date, is US
$1,741/40ft container, which is $230 higher than the five-year average of $1,511/40ft
container.
• Drewry’s composite World Container Index (WCI) is down 5.7% or $103 to reach
$1,689.95 per 40ft container. Freight rates from Shanghai to New York fell $249 to
$2,974 for 40ft container. Rates on Shanghai-Los Angeles dropped $151 to reach
$1,930 per feu. Similarly, rates on Shanghai-Rotterdam decreased $126 to $1,956 for a 40ft
box. Drewry expects rates to recover next week.
Our latest freight rate assessments on eight major East-West trades:
Spot freight rates by route - assessed by Drewry
Source: Drewry Supply Chain Advisors
[Drewry]
Gas shipping Russia: Putin commissions Kaliningrad LNG terminal
10/01/2019
By Laxman Pai
Russian President Vladimir Putin inaugurated a liquefied natural gas (LNG) import terminal
that will serve as a back-up gas supply solution for the Russian enclave of Kaliningrad on the
Baltic Sea. The facility includes floating storage regasification unit (FSRU) in Baltic Sea
enclave.
Gazprom CEO Alexei Miller said: "The floating storage regasification platform is currently
moored at the receiving terminal; that platform will convert LNG into gas to pump into the
underground facility and to supply to consumers in Kaliningrad Region."
Putin said that the Kaliningrad region is no longer dependent on transit gas supplies.
According to him, commissioning a gas receiving terminal into a storage facility with a
floating regasification unit would nullify the transit risks for the Kaliningrad region.
The terminal, built in the Baltic Sea, consists of a pier protected by a breakwater, where a
floating storage regasification unit, the Marshal Vasilevsky tanker, is moored. The vessel
converts LNG delivered by sea back to natural gas, which is then distributed to consumers or
pumped into the Kaliningrad underground gas storage facility, a sealed natural gas reservoir
buried deep in rock salt sediment.
Oil shipping U.S.: Oil export boom sparks battle to build Texas terminals
10/01/2019
By Collin Eaton
Booming U.S. oil exports have set off a scramble to build Gulf Coast ports to handle more
than 3 million barrels per day in new supplies expected over the next five years.
Of seven proposed oil-export projects, nowhere is the opportunity greater or the competition
fiercer than in Corpus Christi, Texas, where three firms are vying to open the state's first
deepwater terminal.
Commodities trader Trafigura has taken an early lead with a planned offshore facility that
has an easier path to regulatory approval and faces fewer objections from environmentalists.
Its chief competitor - a partnership of investor Carlyle Group and the Port of Corpus Christi
to build an onshore port - has responded by petitioning regulators to kill Trafigura's project.
Port lobbyists have cited past criminal allegations involving the firm in other countries and
potentially "catastrophic" environmental impacts.
Rising demand for new terminals follows a 2015 decision by the U.S. Congress to lift a 40-
year ban on crude exports after advances in drilling techniques sparked a rapid rise in
domestic shale production - especially in Texas. The United States had been the world's top
oil buyer for decades, and its port infrastructure was built to import rather than export.
Now, surging exports threaten to overwhelm existing terminals as U.S. production is
projected to hit 12 million barrels per day (bpd) this year, up from 9.35 million in 2017.
"We've got a wave of oil headed toward the coast," said Jeremiah Ashcroft III, chief
executive of Lone Star Ports LLC, the Carlyle-backed company formed to develop its Corpus
Christi project.
Only one U.S. facility, the Louisiana Offshore Oil Port, can fully load supertankers capable of
carrying 2 million barrels. The Corpus Christi port - the closest to the most prolific shale
fields
in Texas - exports less than 1 million bpd, and its harbor is too shallow to fully load
supertankers.
The market ultimately may support more than one new deepwater terminal, but the first
firm to build near Corpus Christi will have the best shot at cutting long-term deals with
producers expected to ship an estimated 2.1 million bpd to the region through new pipelines
set to open this year. "Right now, there's only enough room for one project," Ashcroft said.
Carlyle plans a $1 billion port to handle 1.4 million bpd. Trafigura, which has not disclosed
its planned investment in the port, would handle much less, at 500,000 bpd. But Trafigura's
operation would siphon off revenue from the Port of Corpus Christi and Carlyle's project
because Trafigura would serve shippers offshore, before they reach the harbor.
Carlyle declined to make an executive available for an interview and referred questions to
Lone Star. Trafigura said in a statement that its port would leave room for other projects
because it would handle only a portion of the expected new oil flows.
A third competitor, pipeline operator Magellan Midstream Partners LP, plans an export
terminal on the Corpus Christi harbor, near Carlyle's proposed site. But Magellan faces a
roadblock because port officials last year agreed to work exclusively with Carlyle. Magellan
said in a statement that it has not decided whether to build the project.
Companies including Kinder Morgan Inc, JupiterMLP and Tallgrass Energy have also
proposed offshore terminals along the Gulf Coast.
Brazil charges
Carlyle said last October that it could open its facility by late 2020. But that assumes its plan
for dredging to accommodate supertankers will not require a full environmental review,
which is sought by opponents and could take two years.
As Carlyle and the port have tried to navigate those obstacles, port lobbyists have petitioned
regulators to halt Trafigura's project. In an August letter, the port's law firm called on the
U.S. Coast Guard and the Maritime Administration to reject Trafigura's application, citing a
"criminal history."
The letter from Baker Wotring LLP pointed to the trader's 2006 guilty plea for selling a U.S.
company oil from Iraq that Trafigura falsely claimed had been authorized under a United
Nations humanitarian aid program. U.S. companies at the time were barred by government
sanctions from buying Iraqi oil except through the program.
After the regulators declined the port's request, its law firm in December raised bribery
allegations brought earlier that month by Brazilian prosecutors against two former Trafigura
executives. The firm asked regulators to halt Trafigura's work until the allegations were
"fully investigated."
Trafigura said in a statement that its management had no knowledge of any improper
payments made to employees of Brazil's state-run oil firm Petrobras. Trafigura did not
comment on the port law firm citing its guilty plea involving Iraq oil sales.
Last month, five Corpus Christi area lawmakers asked Texas Governor Greg Abbott to veto
Trafigura's application on environmental grounds, citing a risk of "catastrophic crude oil
spills" and "excessive air emissions."
Federal rules require state governors to sign off on offshore ports. Abbott has made no
decision, a spokesman said.
Lone Star's Ashcroft said onshore terminals are safer than offshore projects because oil spills
are more easily cleaned up in harbors than in open water. Trafigura said it chose to go
offshore to ensure supertankers can safely and efficiently load cargoes and that its
application will be reviewed by more than 30 government agencies.
Battle fatigue
Carlyle is essential to building the Port of Corpus Christi's crude export business. Port
officials started pursuing federal approval to dredge its harbor 28 years ago, but Congress
only recently approved $59 million, a fraction of what's needed.
"We don't have 28 years; we have two," said Sean Strawbridge, chief executive of the Port
of Corpus Christi Authority, referring to its timeline for readying the port for new oil flows.
Port officials last year sought to kickstart the dredging by issuing $217 million in bonds. That
money will allow it to start dredging to a 54-foot draft - not deep enough for supertankers.
If Trafigura's port wins approval, it could take business from the Port of Corpus Christi. Port
revenues could fall by about 12 percent, estimated investment researcher Morningstar Inc.,
a loss that could hurt its efforts to finance dredging not covered by the government or
Carlyle. In October, Carlyle agreed to pay an undisclosed sum to cover the dredging needed
to get achieve a 75-foot draft in the outer harbor to accommodate supertankers.
'Environmental disaster'
Environmentalists favor offshore terminals over what they consider the harmful impact of
dredging harbors. The newly formed Port Aransas Conservancy in south Texas has argued
Carlyle's plan would endanger sea turtle nesting areas, dump silt onto nearby islands, and
threaten shellfish that reach estuaries through the ship channel.
Trafigura has countered environmental concerns about its offshore operation by proposing
to tunnel under sand dunes and wetlands to install a pipeline instead of digging a trench
through environmentally sensitive areas.
"Sea turtles are always an issue with dredging" because it brings in salt water, said Jayson
Hudson, a regulatory supervisor at the U.S. Army Corp of Engineers, which oversees
permitting for Carlyle's project. He called Trafigura's horizontal drilling plan a "good option
for avoiding permanent impacts."
Dredging the harbor, by contrast, would have wide-ranging impacts, said John Donovan,
president of the Port Aransas Conservancy. "We're very much against what we consider to
be an environmental disaster that the Port's plans for Harbor Island would entail," he said.
[Reuters]
Oil & gas shipping China: PetroChina and Yantai Port to jointly build LNG
and crude oil receiving terminals
10/01/2019
State-run PetroChina's two subsidiaries on Wednesday signed contracts with state-owned
Yantai Port Group to jointly build a new LNG receiving terminal and expand a crude oil
terminal at Yantai port in eastern Shandong province, PetroChina said on its website
Thursday.
Kunlun Energy, a Hong Kong-listed subsidiary of PetroChina, and Yantai Port Group will
jointly invest a total of around Yuan 7 billion ($1 billion) to build an LNG receiving terminal
comprising four LNG storage tanks each 200,000 cu m in size, at the west Yantai port, and a
dock capable of receiving 266,000 cu m LNG vessels, PetroChina noted.
Kunlun Energy currently runs three major LNG receiving terminals and a small LNG reserve
storage, which are located at Rudong city in eastern Jiangsu province, Tangshan city in
northern Hebei province, Dalian city in northeastern Liaoning province and Hainan island,
with a total LNG receiving capacity of around 19.3 million mt/year.
Besides, the company has two LNG receiving terminal projects under construction. They are
the phase 3 Tangshan LNG receiving terminal and the phase 3 Rudong LNG receiving
terminal, which are both expected to be completed by 2020, according to source with the
company.
Kunlun Energy plans to build 11 LNG receiving terminals, with a total receiving capacity of
80 million mt/year by 2030, the source said.
Phase 2 crude oil terminal and pipeline
At the same time, PetroChina Fuel Oil, another subsidiary of PetroChina, and Yantai Port
Group will jointly invest around Yuan 5 billion to expand a crude oil terminal that is capable
of berthing 300,000-dwt vessels, and crude storage tanks at the west Yantai port, and to
build the phase 2 Yantai-Zibo, or Yanzi, crude oil pipeline in Shandong province, according
to PetroChina. But expansion and construction details are not available immediately.
The existing phase 1 crude oil terminal is operated by a joint venture between state-owned
CNOOC and Yantai Port Group, which has been put into operation in September 2016.
[S&P Global Platts]
Oceans: Warming faster than predicted
10/01/2019
By Alister Doyle
The oceans are warming faster than previously estimated, setting a new temperature record
in 2018 in a trend that is damaging marine life, scientists said on Thursday.
New measurements, aided by an international network of 3,900 floats deployed in the
oceans since 2000, showed more warming since 1971 than calculated by the latest U.N.
assessment of climate change in 2013, they said.
And ―observational records of ocean heat content show that ocean warming is accelerating,‖
the authors in China and the United States wrote in anarticle published in the Science
Magazine: How fast are the oceans warming?
Man-made greenhouse gas emissions are warming the atmosphere, according to the
overwhelming majority of climate scientists, and a large part of the heat gets absorbed by
the oceans. That in turn is forcing fish to flee to cooler waters. ―Global warming is here, and
has major consequences already. There is no doubt, none!‖ the authors wrote in a
statement.
Almost 200 nations plan to phase out fossil fuels this century under the 2015 Paris climate
agreement to limit warming. U.S. President Donald Trump, who wants to promote U.S. fossil
fuels, plans to pull out of the pact in 2020.
Data due for publication next week will show ―2018 was the warmest year on record for the
global ocean, surpassing 2017,‖ said lead author Lijing Cheng, of the Institute of
Atmospheric Physics at the Chinese Academy of Sciences. He told Reuters that records for
ocean warming had been broken almost yearly since 2000.
Overall, temperatures in the ocean down to 2,000 meters rose about 0.1 degree Celsius
(0.18F) from 1971-2010, he said. The 2013 U.N. assessment estimated slower rates of heat
uptake but did not give a single comparable number.
A separate study on Monday, by the European Union’s Copernicus Climate Change Service,
said 2018 was the fourth warmest year for global surface temperatures in records dating
back to the 19th century.
Ocean temperatures are less influenced by year-to-year variations in the weather. It can
take more than 1,000 years for deep ocean temperatures to adjust to changes at the
surface. ―The deep ocean reflects the climate of the deep and uncertain past,‖ Kevin
Trenberth, of the U.S. National Center for Atmospheric Research and a co-author of
Thursday’s study, told Reuters.
Among effects, extra warmth can reduce oxygen in the oceans and damages coral reefs that
are nurseries for fish, the scientists said. Warmer seas release more moisture that can stoke
more powerful storms. Warmer ocean water also raises sea levels by melting ice, including
around the edges of Antarctica and Greenland.
[Reuters]
Seafarers: Port agents targeted in latest UAE crew abandonment
measures
10/01/2019
By Sam Chambers
The United Arab Emirates (UAE) is shedding its reputation as a hotspot for crew
abandonment with a series of measures introduced over the past 12 months aimed at
completely stamping out the scourge.
The latest ruling from the UAE’s Federal Transport Authority (FTA), issued this week, means
all ships – both local and foreign – calling at the Middle East nation must carry appropriate
insurance cover for seafarer repatriation. A total of 25 insurers have been approved by UAE
authorities. The FTA warned in a three-page circular seen by Splash that ship’s agents must
check this insurance is in place before taking on a vessel’s agency or else the agent will have
to foot the bill of any abandonment case.
The UAE has worked hard to clampdown on abandoned crew of late, something it noted in
the circular issued this week that has seen ―remarkable results and the reduction in the
number of seafarer abandonment cases‖. During much of the shipping downturn, the UAE
became a dumping ground for distressed shipping assets, but in the past couple of years the
authorities have taken a number of measures to improve the situation in local waters.
In May last year the International Transport Workers’ Federation (ITF) and the FTA signed a
groundbreaking memorandum of understanding to work together to protect the rights of all
seafarers operating in UAE waters. The UAE has blacklisted many shipowners who have
been found guilty of neglecting their crew in the past two years. The UAE’s efforts have not
gone unnoticed with many shipping charities applauding the Arab state’s efforts in
interviews with Splash in recent months.
[Splash 24/7]
Terminal operators Cameroon: Bolloré and APM Terminals excluded from
bid for Douala container terminal concession
10/01/2019
The five companies listed in the official communique from the Port Authority of Douala as
pre- qualified to participate in the next round of the concession are: CMA Terminals, Dubai
Ports World, Hutchison Port Investments (registered in the Cayman Islands), Red Sea
Gateway Terminal Saudi Arabia, and Terminal Investment Limited.
The qualified candidates are now required to submit to the Director General of the Port
Authority Board a letter of expression of interest within thirty days from the date of
publication of the official communiqué (8 January 2018).
Not being named means Bolloré and APM Terminals will have to hand over operations at
Douala when their concession expires at the end of 2019. This has caused quite a stir in
Cameroon, where Bolloré has operations in ports, rail and logistics and handles most of the
country’s international cargo.
The move is likely a response to Bolloré developing another container terminal in Cameroon,
at Kribi just 60km from Douala. Kribi Conteneurs Terminal welcomed its first ship in March
last year. The terminal was opened with two STS cranes and 5 RTGs, and Bolloré plans to
develop its capacity to 1M TEU annually.
[World Cargo News]
Terminal operators Philippines: ATI expands Batangas Container Terminal
10/01/2019
Asian Terminals Inc. (ATI) deployed additional modern equipment at the Batangas Container
Terminal (BCT) as it continuously expands the port’s role as trade facilitator and smart
logistics option for Calabarzon.
BCT recently welcomed two new ship-to-shore cranes and four more rubber-tired gantry
cranes, manufactured by Shanghai-based ZPMC, effectively doubling the port’s STS and RTG
fleet to four and eight, respectively.
The new STS cranes can reach up to 16 container rows, lift two 20-foot containers
simultaneously and handle loads of up to 70 tons. The RTGs, meanwhile, can stack up to six
containers high.
Aside from these, ATI also acquired more cargo handling equipment such as reach stackers,
side loaders, internal transfer vehicles, and chassis to further boost terminal efficiencies.
ATI’s latest investment forms part of its commitment with the Philippine Ports Authority and
complements the expansion of BCT’s berth and yard space which began in 2017.
[Manila Standard Business]
Terminal operators Hong Kong: Local shippers slam alliance of container
terminals as anti-competitive
10/01/2019
By Sam Whelan, Asia correspondent
A new alliance of four Hong Kong major container terminal operators has been slammed as
anti-competitive by local shippers.
The Hong Kong Seaport Joint Operating Alliance Agreement (HKSPA), announced yesterday,
sees COSCO Shipping Ports team up with Asia Container Terminals, Hongkong International
Terminals and Modern Terminals.
According to COSCO, the four companies will collaborate on the management and operation
of 23 berths across Hong Kong’s Kwai Tsing terminals, with the aim of ―improving the value
proposition of the combined terminal facilities in the context of growing regional competition
and maximising efficiencies to the benefit of customers and the industry‖.
However, the Hong Kong Shippers’ Council (HKSC) was quick to criticise the new grouping.
―With 95% market share, the industry virtually has no choice,‖ said HKSC chairman Willy
Lin. ―The alliance could agree on non-competition agreements, clients and pricing.‖
Although Mr Lin conceded asset sharing could enhance utilisation and productivity, he
warned there was ―no mechanism to monitor, not to mention regulate, the competition
behaviours of the members of the alliance‖.
He said while terminal handling charges in mainland China were falling, comparative fees in
Hong Kong were the highest in the world, and that shippers ―hardly see any justification for
the HK$600-plus documentation fee, HK$135 depot fee and many other ridiculous charges‖.
In response, COSCO told The Loadstar the main purpose of the alliance was to enhance
efficiency and bring down costs to strengthen Hong Kong’s position as a major transhipment
port in Asia. ―Charges at Hong Kong terminals currently are higher than China and
Singapore, which reduces its competitiveness,‖ the company said. ―The formation of the
alliance is to enhance competiveness of Hong Kong, thus not likely to further increase the
charges.‖
COSCO argues the alliance is a response to the changing dynamics of the shipping industry,
particularly the deployment of ultra-large container vessels (ULCVs) and the formation of
mega alliances between shipping lines, another bone of contention for HKSC, which has
previously lobbied against shipping lines’ exemption from Hong Kong’s competition laws that
would otherwise deem vessel-sharing agreements (VSAs) illegal.
―The cooperation of the alliance is on the terminal level only, that is, the terminal
operations,‖
added COSCO.
Peter Levesque, group managing director of Modern Terminals, hoped the alliance would
help Hong Kong win back carrier business. ―The HKSPA will allow members of the alliance to
create a new value proposition for global carriers, through increased efficiency, reduced
costs and better service offerings. It will allow Hong Kong to compete in the region and give
global carriers a reason to bring their business back to Hong Kong.‖
Responding to shipper concerns, he added: ―We will be engaging with the Shippers’ Council
and other industry stakeholders over the next several weeks to provide more details on the
Seaport Alliance and to answer questions they may have.‖
For the first 11 months of 2018, container throughput at Hong Kong’s Kwai Tsing terminals
fell by 4.9% to 14.16m teu, while non-Kwai Tsing terminals were down by 7.9% to 3.8m
teu. The maritime hub has suffered from fierce competition from mainland China, falling
from top spot in the global container port rankings in 2005 to its current fifth position.
Meanwhile, Hong Kong’s Competition Commission has warned the port’s container terminal
operators that the new alliance unveiled yesterday will be subject to an investigation. It has
indicated the alliance may have breached the territory’s anti-competition regulations.
―In particular, the commission is investigating whether the agreement may constitute a
contravention of the First Conduct Rule of the Competition Ordinance by preventing,
restricting or distorting competition in Hong Kong,‖ it said. ―The commission is carrying out
this investigation as a matter of priority.‖
But it added: ―The opening of a formal investigation does not prejudge its outcome.‖
[The Loadstar]
Terminal operators Hong Kong: Four container terminal operators set up
alliance amid flagging volumes
09/01/2019
By Sam Chambers
The operators of what was once the world’s largest container port are coming together amid
flagging volumes to try and generate efficiencies.
Hutchison Port Holdings Trust (HPH Trust) said yesterday its flagship Hongkong
International Terminals (HIT) along with Modern Terminals, COSCO-HIT Terminals (Hong
Kong) and Asia Container Terminals (ACT) have entered into a Hong Kong Seaport joint
operating alliance to manage and operate 23 berths across nine terminals at Kwai Tsing
container terminals in Hong Kong.
Revenue and costs from the management and operation of the facilities will be shared
among the parties at a pre-agreed ratio. HPH Trust said: ―The trustee-manager believes that
the Hong Kong Seaport Alliance will enable the parties to deploy their facilities and resources
in a more cost effective and efficient manner.
―Taking into account the changing dynamics of the shipping industry, in particular with the
formation of strategic alliances between shipping lines and the growing use by lines of larger
vessels, the trustee-manager is of the view that the Hong Kong Seaport Alliance will enable
better utilisation of the existing capacity by increasing the flexibility in the overall berth and
yard planning among the 23 berths to better accommodate the need of such shipping
alliances.‖
Hong Kong was the world’s top container port through to 2005, and stood out from its
competitors for two main reasons – first the cramped space, which forced it to be more
efficient, and secondly the raft of private operators controlling the port without a local port
authority being involved.
Since losing its crown to Singapore in 2005, Hong Kong has steadily slipped down the
rankings, relying on transhipment boxes more and more. Its throughput last year is thought
to have slid below 20m teu, placing it outside the top five boxports league.
[Splash 24/]
Terminal operators North America: Big ships, competition challenge West
Coast ports
09/01/2019
By Bill Mongelluzzo, Senior Editor
North America’s West Coast ports in 2019 are addressing challenges such as late vessel
arrivals and explosive container discharges from mega-ships through efficiency
enhancements that include extended gates, trucker appointments, and container peel-off
piles. That’s proving to be a balancing act as they compete for discretionary cargo with East
and Gulf coast ports whose fortunes have greatly improved from the expanded Panama
Canal.
The ports of Prince Rupert, Vancouver, the Northwest Seaport Alliance of Seattle and
Tacoma, Oakland, Los Angeles, and Long Beach are investing billions of dollars in terminal,
road, and rail infrastructure. The competition for discretionary cargo moving to the
continent’s vast interior, however, won’t be determined by infrastructure but by the efficient
transfer of containers from vessels to trucks and trains. Because East Coast ports are much
closer to the largest population centers, ―We have to do everything perfectly‖ to compete,
Gene Seroka, executive director of the Port of Los Angeles told the Harbor Association of
Industry and Commerce on Sept. 28.
The West Coast's niche advantage
West Coast ports have a clear advantage in capturing high-value, time-sensitive imports
from Asia. Compared with East and Gulf coast routings, importers reach their destinations 10
days to two weeks faster by shipping via intermodal rail through West Coast ports. That
advantage erodes, however, when vessels arrive late because of port congestion or weather
events in Asia.
Rail departures from the West Coast are compromised by excessive container dwell times,
weather events, or rail service issues, as evidenced by delays last winter in Vancouver and
Prince Rupert. Cost is also a determining factor in cargo routing, and all-inclusive costs from
East and Gulf coast ports are lower than via intermodal rail from the West Coast.
East and Gulf coast ports in recent years have gained market share at the expense of West
Coast ports. In the first nine months of 2018, containerized imports through the West Coast
increased 3.3 percent from the same period last year, compared with 6.3 percent for East
Coast ports, and 10.6 percent growth at Gulf Coast ports, according to PIERS, a JOC.com
sister company. West Coast market share in the January-September period was 48.5
percent, down from 50.7 percent in 2016, while East Coast share increased to 43.6 percent
from 42.5 percent, and Gulf Coast share increased to 6.9 percent from 5.9 percent in 2016.
Source: IHS Markit
West Coast ports are highly dependent upon intermodal rail to serve destinations in the US
interior, and they are challenged not only by East and Gulf coast ports, but by Vancouver
and Prince Rupert as well. The Canadian ports have direct intermodal service to Chicago and
locations to the south and east.
Canada’s US Midwest advantage
Cheaper intermodal rail service to the US interior is a major factor in shifting market share.
A 2018 study by the Northwest Seaport Alliance found that importers in Chicago save $400
to $600 per container by shipping through Vancouver and Prince Rupert via Canadian
National and Canadian Pacific railroads, compared with West Coast ports served by BNSF
Railway and Union Pacific.
The Canadian ports have parlayed this cost advantage into a steady increase in regional
market share in the eastbound Pacific, with Vancouver increasing its share of Pacific
Northwest imports in 2017 to 48.5 percent from 45 percent in 2012. Prince Rupert increased
its share to
12 percent from 8.3 percent, while Seattle-Tacoma’s share of Pacific Northwest imports
declined to 39.5 percent from 43.7 percent in 2012, according to PIERS.
To mitigate the cost differential, US West Coast ports concentrate on keeping container
dwell times to less than three days through the rapid transfer of containers from vessels to
trains. Tacoma, for example, consistently releases its first eastbound train before the vessel
has finished unloading.
Container dwell times in Vancouver and Prince Rupert last winter more than doubled to over
six days, owing to snow and freezing temperatures in western Canada, rail service issues
(including a shortage of equipment and crew at CN), and delays caused by port
construction. Although Vancouver returned to three-day dwell times last spring when
container volumes declined amid normal seasonal trends, average dwell times increased
again in July to 4.3 days and 5.2 days in August, according to rail metrics published on the
port’s website. Container dwell times spiked again in October and November, with the Nov.
23 report showing an average dwell time of five to seven days at the port’s three major
container terminals.
Kevin Krause, vice president of ocean services at SEKO Logistics, confirmed the disruption.
―In the past 45 days we’ve definitely felt the pinch at Vancouver for a few of our clients,‖ he
said in mid-November. Delays were experienced at the port as well as at the rail terminals in
Chicago.
Prince Rupert’s improvements
Prince Rupert, on the other hand, recovered last spring from dwell times of about six days or
longer last autumn and early winter, and the port remained fluid for the remainder of 2018.
―Since March, dwell times have been less than three days, on average 2.7 days,‖ said Brian
Friesen, vice president of trade development and communications.
Prince Rupert’s recovery followed completion of construction projects that had impacted
cargo velocity, as well as a massive investment by CN in assets and trackage as part of its
overall capital expenditure program of $3.5 billion, Friesen said. Prince Rupert was able to
maintain improved dwell times even though its container volumes through October were up
13 percent over 2017. The port was on track to achieve record volume of 1 million TEU in
December, he said.
Although the US West Coast ports in aggregate recorded an increased volume of 3.3 percent
through September, according to PIERS, previous infrastructure developments and a series
of process improvements — including extended gate hours, expanded trucker appointments
that helped the terminals to manage truck flow, and the addition of container peel-off piles
that expedite truck moves at the terminals — mitigated the excessive dwell times of past
peak seasons.
Oakland and the Southern California port complex remained relatively fluid through the peak
season, Krause said. Monthly mobility times published by the Harbor Trucking Association
(HTA) showed a spike in average turn times in September and October in Los Angeles-Long
Beach to about 85 minutes, up from 78 to 80 minutes in July and August.
Los Angeles-Long Beach, however, did experience chassis shortages and dislocations
throughout autumn as vessel bunching and peak-season import volumes created chassis
surpluses at some terminals while other terminals experienced shortages. The summer-
autumn period in 2018 was unlike past years in that the peak season started earlier than
usual
— in July — and was followed in November by a surge in spring merchandise, as importers
front-loaded shipments to get ahead of the Trump administration’s 25 percent tariffs on
imports from China that had been scheduled to take effect on Jan. 1, but were later
suspended for 90 days.
―There’s been an incredible amount of volume,‖ said Weston LaBar, CEO of the HTA. ―They
just can’t dig out.‖
[JOC.com]
Marine pollution North Sea: 1,220 tons of debris collected in MSC Zoe
cleanup operation
09/01/2019
Swiss-based Mediterranean Shipping Company (MSC) said that significant progress has been
made in the clean-up operation of the debris originating from containers that fell from MSC
Zoe on January 2 during heavy weather.
In total 1,220 metric tons of debris have been collected on the German and Dutch beaches
since the incident, according to MSC. ―By deploying 4×4 vehicles, tractors and specialist
equipment such as a beach vacuum-cleaners the response operation has achieved
significant progress on the Frisian islands of Terschelling, Vlieland, Ameland and
Schiermonnikoog, in the Wadden Sea and on the mainland,‖ the company said in the latest
update.
The company has hired Ardent Global to coordinate the search at the sea. As informed,
sonar- assisted search has helped locate hundreds of objects in the water in recent days and
these contacts are being evaluated by MSC’s contractors and the authorities. So far, 21
entire containers were washed up.
Overall, relevant authorities and MSC have located 238 containers so far, with the majority
being spread over a length of 23 miles above the Dutch municipalities Terschelling,
Schiermonnikoog and east of this line.
Recovery of containers from the sea
Dutch public works and water management department Rijkswaterstaat is working with
relevant counterparts on a salvage plan of the spilled containers, which should be launched
soon. However, the complex, large-scale operation aimed at salvaging the containers at sea
depends upon a number of conditions, including weather, tide, shipping traffic in the busy
waterway and visibility. Two broken containers were salvaged on January 7, and there are
over 40 yet to be located.
A total of 291 containers were thrown overboard by bad weather from MSC Zoe, according
to the latest deck inspection data cited by Rijkswaterstaat. The containers added to the
overall tally do not contain hazardous substances, based on the latest update.
Bad weather
Inclement weather is hampering the clean up operations and sonar operations scheduled for
today had to be suspended pending improved weather conditions.
―This week, a storm is impacting the area being cleaned and unfortunately this will interrupt
some operations. Response teams nonetheless remain vigilant and are proactively
monitoring for any subsequent recharging of beaches with materials from MSC Zoe, as a
result of the weather and sea movements,‖ MSC said.
SMART containers
Commenting on the incident, environmental organization Greenpeace, whose members have
also taken part in the cleanup efforts, called on the mandatory introduction of real-time
locating systems for containers transporting dangerous goods on European shipping lanes.
The call was made as it was determined that at least two of the fallen containers from MSC
boxship contained hazardous substances, including dibenzoyl peroxide as well as
dicyclohexyl phthalate, according to Greenpeace.
Viola Wohlgemuth, chemical expert from Greenpeace, pointed out that the technology is
available, as SMART containers allow for the cargo to be located more easily at sea in case
of loss.
―MSC is at the forefront of developments in the smart-containerisation of our industry and is
increasingly offering smart container solutions to interested customers. However, to date,
only a small proportion of the shipping industry’s global container fleet is equipped with real-
time tracking devices. More research is needed to find a system that will work under a range
of conditions both out of the water and in the water,‖ a MSC spokesperson told World
Maritime News in a statement on the matter.
[World Maritime News]
Marine pollution North Sea: Rough weather hampers clean-up of MSC Zoe
container spill
09/01/2019
By Jonathan Saul
Clean-up efforts after container ship spill off the Dutch coast are being hampered by rough
weather although progress is being made, the Swiss based vessel’s owner Mediterranean
Shipping Company (MSC) said on Wednesday.
In one of the worst incidents off the coast of the Netherlands, more than 250 containers -
some holding hazardous chemicals - fell off the MSC Zoe, one of the world’s largest
container ships, during a North Sea storm on Jan. 2.
―This week, a storm is impacting the area being cleaned and unfortunately this will interrupt
some operations,‖ MSC said on Wednesday. The accident happened in German waters near
the Dutch island of Borkum.
MSC, the world’s no. 2 container carrier, said it had made significant progress on the Dutch
islands of Terschelling, Vlieland, Ameland and Schiermonnikoog in the Wadden Sea and on
the mainland, with a total of 1,220 tonnes of debris collected so far. At least one container
load of organic peroxide, a strong bleaching agent that can cause skin injuries, was lost, a
Dutch official said last week. Residents were told not to touch 25-kg bags found on the
shore.
MSC said on Saturday it would pay the full cost of the clean-up and would also ensure Dutch
and German beaches were surveyed until all debris from the incident had been cleared.
Dutch authorities had earlier said they would hold MSC liable for the cost of the clean-up.
[Reuters]
Casualties North Atlantic: Cargo owners could face salvage bill for
shipping container fire on Hapag-Lloyd‟s Yantian Express
09/01/2019
By Peter Ziobrowski
The first week of 2019 has proven to be an eventful one with regard to serious marine
incidents.
On Dec. 31, the car carrier Serenity Ace caught fire and was abandoned in the Pacific
Ocean. On Thursday, the Hapag-Lloyd container ship Yantain Express, bound for Halifax,
suffered a container fire, which spread to adjacent containers. Weather hampered
firefighting operations, and the crew abandoned ship.
Two tugs were hired by the ship’s owner. The Smit Nicobar happened to be close by the
incident and the Maersk Mobiliser, which was dispatched from St. John’s, N.L., arrived on
Monday. The situation has likely deteriorated with fire spreading due to poor weather
conditions. Once the fire is controlled, the Maersk Mobiliser will tow the ship into Halifax.
Salvage is the term for providing aid to the ship or recovering the vessel and the cargo from
a peril. The actual salvage of the ship can be handled two ways: The shipowner could
contract services to save the ship and cargo on a time and materials basis, and the second
option is a Lloyd’s Open Form.
The Lloyd’s Open Form works on the ―no cure, no pay‖ principle. If the salvor is successful
in saving the ship and cargo they will be paid an amount determined by a salvage arbiter in
London. This amount is based on the value of cargo and ship saved. If the salvors fail, they
don’t get paid.
The ship itself is protected by hull and machinery insurance. Liability for the ship, including
pollution, is covered by protection and indemnity insurance, which is issued by a P&I club. A
P&I club is a mutual insurance cooperative, which is made up of shipowners and operators
to pool risk.
Based on recent container ship fires, it seems likely that Hapag-Lloyd will invoke general
average. The principle behind general average is that losses on a voyage should be held by
all parties with an interest in the voyage. General average only applies when extraordinary
actions are taken when a ship is in peril.
The principle of general average goes back several hundred years, but the York Antwerp
rules of 1890 provided the first uniform set of rules. The York Antwerp rules still exist and
are included as a clause in shipping contracts.
When a shipowner declares general average, an adjuster estimates the value of the loss, as
well as the value of the ship and cargo. The loss is then expressed as a percentage of the
total value, and apportioned to each parties’ interest in the voyage.
In the case of the shipowner, their share of the loss would be the percentage of the value of
the ship. Those with cargo aboard will be required to post a security for a percentage of the
CIF (cost + insurance + freight) value of the cargo, which must be paid before the cargo is
released.
In the case of the fire aboard the container ship Maersk Honam in March 2018, the general
average amount was 54 per cent of the CIF value. Eventually 42.5 per cent was the salvage
reward, the remaining 11.5 per cent to other losses. If your cargo value was $100,000, your
general average security would be $54,000.
Once all actual losses and costs are known, the adjustor will then determine the actual
losses, and debit or credit the cargo owners. General average costs would be covered under
a cargo owners’ marine insurance.
In the case of the 2012 fire aboard the MSC Flaminia, the liability for the fire was ruled on in
late 2018. The courts split liability between the cargo owner and their common carrier,
which had booked the slot on the ship. The cargo and hull insurers will now attempt to
collect their outlay from the liable parties.
[The Chronicle Herald]
Bunkering: Fuel delivery notes amendments enter into force ahead of IMO
2020 rule
09/01/2019
By Surabhi Sahu
The International Maritime Organization (IMO) said Tuesday that amendments to the bunker
delivery note relating to the supply of marine fuel oil to ships with alternative mechanisms to
address sulfur emissions requirements entered into force on January 1, 2019.
The amendments, which have been made to Appendix V of MARPOL Annex VI, come ahead
of the IMO's global sulfur limit rule for marine fuels starting January 1, 2020 and are
significant as they require suppliers to declare the sulfur content of the marine fuel supplied.
The amendments are intended to address situations where the fuel oil supplied does not
meet low sulfur requirements, but has been supplied to a ship which is using an alternative
compliance method permitted under regulation 4 of MARPOL Annex VI to reduce the sulfur
oxide emissions of the ship in order to comply with MARPOL requirements, the IMO said.
This may be abatement technology such as an exhaust gas cleaning system, or scrubber, if
accepted by the flag state of a ship as an alternative means to meet the sulfur limit
requirement, it said.
The bunker delivery note should include a declaration signed and certified by the fuel oil
supplier's representative that the fuel oil supplied is in conformity with regulation 18.3 of
MARPOL Annex VI and that the sulfur content of the fuel oil supplied does not exceed: the
limit outside emission control areas under regulation 14.1; the limit in ECAs under regulation
14.4; or the purchaser's specified limit value, on the basis of the purchaser's notification that
the fuel oil is intended to be used in combination with an equivalent means of compliance or
is subject to a relevant exemption for a ship to conduct trials for sulfur oxides emission
reduction and control technology research, it said.
However, the new supplier's declaration does not put an obligation on suppliers to ensure
the ship has an approved scrubber before supplying fuel with sulfur exceeding the sulfur
limit in regulation 14.1.
"It requires bunker suppliers, if asked to provide fuel exceeding the sulfur limit in Regulation
14.1 to a ship, to do so only on the basis of receiving a notification from the buyer that the
fuel is intended to be used compliantly," the International Bunker Industry Association said
in December, adding that there was no requirement on the supplier to check if this was the
case
-- only to obtain a "notification."
If a bunker supplier has concerns about a buyer's ability to use HSFO compliantly, the
supplier can of course choose not to provide HSFO, but there is no obligation on them to
make checks, IBIA said at the time.
"Policing of ship compliance is up to port state control officers and it is quite simple for them
to do so in this case: if they check the [bunker delivery note] and it shows that the ship has
purchased fuel with sulfur above 0.50% after January 1, 2020, they should immediately ask
for the ship's IAPP [International Air Pollution Prevention] supplement detailing if it has an
equivalent arrangement approved in accordance with regulation 4.1 (or an exemption under
Regulation 3.2) which allows the ship to use (or carry for use post 1 March 2020) fuel with
sulfur above 0.50%," IBIA said.
[S&P Global Platts]
Shipping emissions: How IMO 2020 low sulphur rules will actually make
shipping fuel dirtier
09/01/2019
By Jack Wittels and Alex Longley
• Some fuel to contain about 3% sulfur in 2020, from 2.6% today
• Refiners to divert some components to make alternative fuels
In fewer than 12 months’ time, thousands of merchant ships are going to start burning fuel
containing higher concentrations of sulfur. That’s a quirky outcome of rules that are
supposed to cut emissions of the pollutant.
How and why will this happen? The rules, set out by the International Maritime Organization
(IMO) back in October 2016, allow owners to fit exhaust-cleaning kit called scrubbers, which
stop sulfur oxide from being released into the air. The ships with these scrubbers will be
able
to keep burning today’s cheaper, higher-sulfur fuels. However, most of the fleet is simply
switching to alternatives that contain less of the pollutant.
Because the vast majority of the fleet won’t use scrubbers, the world’s refineries will need to
make fuels that contain less sulfur – and one way of doing so is by taking out blending
components that serve to reduce the sulfur in today’s product. FACTS Global Energy, an
industry consultant, estimates that from 2020, high-sulfur fuel oil will likely contain closer to
3 percent of the pollutant, up from about 2.6 percent today.
Premiums for compliant fuels in 2020 have been tumbling in recent months as easing supply
concerns dim the appeal of scrubbers. However, at least 1,700 often-larger ships will be
fitted with the equipment.
While the use of scrubbers has proved controversial, drawing criticism from environmental
groups and some owners, it remains to be seen whether more sulfurous fuel would do any
damage to aquatic life. Critics say that using the equipment transfers pollution from the
skies to the seas. Some countries, such as Singapore, have banned vessels from using the
systems. The companies installing scrubbers say the process poses no threat to the oceans.
Sulfur emissions from shipping are being reduced to 0.5 percent from 3.5 percent in most
parts of the world in order to combat human health conditions like asthma, as well as
environmental concerns like acid rain.
[Bloomberg]
Container shipping: Stowage questions mount as enquiries begin into MSC
Zoe box loss
09/01/2019
By Janny Kok
Local authorities and residents in The Netherlands remain to be put at ease by
Mediterranean Shipping Company’s (MSC) promise to pay for the clean-up on Dutch island
and mainland coasts affected after 281 containers fell off the MSC Zoe.
There have also been questions about the stowage plan of the 23,000 teu containership – in
particular, the lashing of rows seven, eight and nine, from where the boxes fell overboard.
The former managing director of salvage company Smit, Tak Klaas Reinigert, now resident
on Schiermonnikoog, one of the islands affected by spills of styrene and other particles, told
The Loadstar that, while the north-west force nine wind in the area may have been a hazard
for small coasters,it should not have been a problem for a vessel as large as the MSC Zoe.
He also suggested the speed of the MSC Zoe when the incident occurred needed to be
investigated, as well as the lashing of containers on top of the vessel. These fell off the
midship, which he said was ―odd‖.
Meanwhile, Dr Bart Kuipers, port economist at Erasmus University, Rotterdam, said more
thorough research needed to be carried out into the possible hazards involved in deploying
ultra-large container vessels (ULCVs).
Dutch Coast Guard pictures show the containers which landed in the sea had not been not
secured by lashing rods. Niek Stam, an official at the FNV trade union, said it was hard to
secure containers in rows seven, eight and nine in such way. ―Vessels can be loaded
according to an automated loading scheme. Only the top rows are manually loaded. As a
rule, lashing is done by well-trained men, but not in every port,‖ he added.
In the case of the MSC Zoe, the last port of call prior to its arrival at Bremerhaven was
Sines, in Portugal, and Mr Stam questioned whether the containers that went overboard had
been loaded there. ―Nobody talks about the origin of those,‖ he told The Loadstar.
[The Loadstar]
Container shipping: Carriers starting to take different strategic paths
09/01/2019
Among the factors behind the general financial woes of container carriers in the past few
years is the lack of differentiation among providers – they were all basic box movers, unable
to capture any price premium for differentiation.
But that may be starting to change, according to the analysts at Drewry Shipping – even
though some industry pundits in the past have said it is not possible to attain differentiation
in what is inherently a commodity market.
"Even to long-time industry watchers such as Drewry it has often been hard to distinguish
one carrier from another with few observable unique selling points aside from obvious
regional affiliations and size," Drewry notes. "However, things may be about to change as
there is growing evidence of a divergence in corporate strategies among carriers that could
drastically alter the shape of the industry."
Drewry sees container carriers adopting one of three different types of differentiation
strategies:
Strategic Group 1 - Global Integrators: This group, Drewry says, wants to create end to
end global logistics services.
The two main carriers moving down this path are Maersk and CMA CGM. Last year, for
example, Soren Skou, Maersk CEO, said that "We are building a company that is a global
integrator of container logistics – a company very similar to UPS and FedEx; and I hope they
will be considered peers of ours when we are done with this transformation journey in three
to five years; a network-based, asset-based global logistics company."
CMA CGM, meanwhile, in November agreed to purchase the outstanding shares of global
3PL CEVA Logistics.
Drewry believes carrier choosing this ambitious path ae doing so after have already been
through the economies of scale revolution – which did not deliver sustained profitability. So
in a twist, they now want to leverage their size by delivering service across more parts of
the supply chain in a bid to claim more of the revenue and profits.
This strategy is being pursued either through acquisition, organic investment or by
incorporating existing logistics entities into the main liner business, or any of these in
combination.
This is not a new strategy, Drewry notes, as similar attempts were made in the last decade
when a wave of consolidation swept the shipping and logistics industry in response to the
rapid globalization of supply chains and acceleration in worldwide trade. But none of these
were especially successful, the result of the challenge of integrating disparate entities with
different business models and skills sets.
But Maersk and CMA CGM see new technology as leading to a better result this time around.
"Digitization and automation of basic logistics transaction tasks have provided opportunities
that did not previously exist," Drewry says.
The risk: The size of the task involved and investment required to achieve it are huge. It will
take expert management to navigate this new course and there is a danger of taking the
eye off the ball for the core shipping business.
Strategy Group 2 – Core Product Focus: The exact opposite of the strategy of the global
integrators, this group will attempt to just get better at global container shipping.
Here, for example, is a quote from Hapag-Lloyd CEO Rolf Habben Jansen: "Size is not the
name of the game anymore, but customer orientation. It is obvious that customers expect
more reliable supply chains, so our industry needs to change and invest more. At the same
time, we know that people are prepared to pay for value. Going forward, delivering value to
get the most attractive cargo on board is at the heart of our new Strategy 2023. To be
number one for quality is the ultimate promise to our customers and a strong differentiator
from our competitors."
Carriers choosing this path will likely follow Hapag-Lloyd, which has promised to put network
optimization and revenue management at the forefront, and focus on providing "unrivalled
levels of reliability and service quality."
However, Drewry says it questions whether "trying to be profitable and offering a good level
of service can really be described as a strategy. It should be taken for granted. In our
opinion, carriers that follow this lead will have essentially opted out of the big ship arms
race."
The strategy will look good if the more ambitious carriers crash and burn in their supply
chain adventures. The risk though is that if the global integrators are in fact successful,
carriers focused on core shipping will look second-rate and vulnerable to takeover.
Moreover, the emphasis on the rather nebulous term "service quality" assumes that other
carriers, irrespective of strategy, won't also up their game, Drewry says.
Stategy Group Number 3 – Economies of Scale: This approach has already been tried by
the global integrators and most other major carriers. However, there are still some carriers
that are playing catch up and haven't heeded the warnings about the risks of ordering lots
of megaships.
The most obvious example is Korean container carrier HMM, which in November doubled
down on its intention to secure a bigger slice of the containership market by ordering an
amazing twelve 23,000 TEU and eight 15,000 TEO vessels.
In doing so, HMM reaffirmed its desire to grow its fleet to 1 million TEU, which is more than
double its current capacity.
Drwery says that "We suspect that the list of carriers solely focused on growing rapidly is
small; limited to companies with state backing or ties to shipyards in need of assistance.
While lines will always be looking for a cost advantage, the rest of the market appears to
have moved on from this blinkered lone strategy."
The obvious risk: Buying more super megaships when there is already excess capacity will
delay the shipping industry finding a way to a better balance between supply and demand
that could sustain greater profitability.
So there you have it. In conclusion, Drewry notes that "It remains to be seen which of these
strategies is the most effective, but the biggest risks are being taken by the global
integrators who could be about to leave the more cautious competition behind."
But it, it notes, "If – and it's a big if – they are successful in achieving their aims the
competitive landscape will change completely in the liner world and simply being good at
shipping won't cut it any longer. It will be about how wide your reach is."
[Supply Chain Digest]
Container shipping: Lines prepare for new capacity via new ULCVs and
'ship-jumboisation'
09/01/2019
By Mike Wackett
MSC is set to receive some 330,000 teu of newbuild tonnage this year and will close the gap
on its 2M partner, Maersk Line, in the capacity rankings.
According to new analysis by Alphaliner, MSC has the largest newbuild pipeline of all ocean
carriers this year, with 20 vessels expected, for an aggregated total capacity of 334,550 teu.
It said the privately-owned carrier was also expected to launch a ―ship-jumboisation‖
programme this year that will see a series of 14,000 teu vessels converted to raise their
nominal capacity to over 17,000 teu.
Meanwhile, stock market-listed Maersk Line is being obliged to adopt a much more cautious
approach to its orderbook, with a view to not spooking investors concerned about the
possibility of a global slowdown. The Danish carrier only has six ships due for delivery, for a
modest 73,600 teu of capacity, noted Alphaliner.
Indeed, without Maersk’s acquisition of Hamburg Süd and its fleet of around 650,000 teu,
MSC would have been almost neck-and-neck with its top-ranked rival at the end of this year,
with around 3.6m capacity.
MSC’s delivery pipeline this year includes eight 23,000 ULCVs for delivery in the second half.
Alphaliner said it expected some of these to be deployed on the extended rotations of the
2M’s six Asia-Europe strings, while others were expected to cover for vessels taken out of
service for around six weeks in the second half for the retrofitting of scrubber systems,
ahead of IMO 2020.
The carriers with the next largest 2019 capacity expansion plans are Ocean Alliance partners
COSCO and Evergreen, with newbuild pipelines of 181,000 teu and 134,000 teu,
respectively.
―COSCO will continue its relentless growth in 2019, fresh from last year’s acquisition of
OOCL,‖ said Alphaliner. With this capacity injection, the Chinese state-owned carrier will
widen the gap on the remaining alliance partner, CMA CGM, currently in fourth place in the
rankings.
Evergreen’s 2019 newbuilds will see the Taiwanese carrier narrow the capacity gap to its
closest rivals, THE Alliance partners Hapag-Lloyd and Japanese grouping ONE.
Like Maersk, stock market-listed Hapag-Lloyd has taken a very cautious approach to
ordering new tonnage – in fact, the German line has a blank orderbook. And ONE, which
continues to consolidate its business after a chaotic merger launch last April, has just three
ships on order.
The aggressive ordering by MSC in the 2M alliance and by Ocean Alliance partners will
further increase the capacity gap they have over THE Alliance – the only newbuild capacity
growth in THE Alliance this year will be for Yang Ming, which is expecting four 14,200
vessels.
[The Loadstar]
Gas shipping U.S.: Investors plan $2 billion methanol plant at Port of South
Louisiana
09/01/2019
On Friday, January 4, 2019, Louisiana Governor John Bel Edwards and South Louisiana
Methanol CEO Paul Moore announced the revival of a plan for a new $2.2 billion methanol
complex – one of the largest in the world - to be built in the Port of South Louisiana district.
The project, South Louisiana Methanol, is a partnership between New Zealand-based Todd
Corporation and Saudi state-owned Petchem firm SABIC. The project was originally
announced in early 2013 as a joint venture between Todd Corporation and Texas-based
ZEEP, Inc.
―This agreement represents part of SABIC’s strategy to focus on the geographic
diversification of its business, to reach new global markets and enable the company to
access raw materials at competitive prices. The Port of South Louisiana and in-place
transportation infrastructure make St. James Parish a great location,‖ said Mohammed Al-
Wakeel, head of SABIC US Methanol.
South Louisiana Methanol’s 1,500-acre complex in St. James Parish will use natural gas to
produce an estimated 2 million metric tons of methanol per year. This petrochemical is used
as a building block to make countless other products, including plastics, polyester fibers and
fabrics, pesticides, fuel additives, pharmaceuticals and adhesives.
Abundant, affordable shale gas has led to the development of multiple methanol projects
along the Gulf Coast, which could help make the U.S. a net exporter of methanol in the near
future, according to a recent analysis commissioned by the Methanol Institute.
The state of Louisiana has renegotiated South Louisiana Methanol’s 2013 incentive package,
which makes it eligible for a $5 million performance-based grant. The company will also
receive assistance from the state’s LED FastStart, and Industrial Tax Exemption and Quality
Jobs programs.
[The Maritime Executive]
Gas shipping: Small will be the new big for the LNG market
09/01/2019
By Shefali Shokeen, Senior Research Analyst, Drewry Maritime Research
Low prices, abundant supply and an aggressive shift towards cleaner gas for energy
generation are creating strong demand for LNG, not just from large buyers, but also from
small importers.
Small-scale LNG projects (production and regasification capacity of less than 500,000 tonnes
per annum) have reduced capex and are suitable for countries with low LNG consumption.
For example Gibraltar has set up a small LNG import terminal with a total storage capacity of
5,000 cbm, which will directly provide fuel to the power plant located near the port.
Small LNG export projects and average liquefaction capacity (mtpa)
Source: Drewry Maritime Research
It is also true that it is becoming increasingly difficult to secure investment for mega LNG
export projects by fixing cargoes on long term contracts. Due to the increasing number of
LNG suppliers, importers are opting for shorter term volume contracts. This makes small
scale LNG projects attractive, which are cheaper to build and where there is less risk.
Although the number of small LNG export projects is currently limited new facilities are
beginning to emerge. In the US for example, a small-LNG export project in Florida with
three trains of 0.33 MTPA capacity has already been approved by the FERC.
Impact on LNG shipping
Asian countries such as Indonesia, Philippines and China, along with some European
countries will also see growth in the number of small-scale LNG imports terminals and in
turn this will create demand for small LNG vessels.
On the export side, the list of LNG exporters will continue to diversify in the future as
countries with moderate gas reserves develop opportunities to export LNG. In the near term,
we expect countries in Africa to follow the lead set by the US by investing in small-scale LNG
export projects. In turn, this will generate demand for appropriate shipping capacity.
The existing fleet of small LNG (less than 50,000 cbm) vessels consists of 27 LNG carriers
and 17 LNG/LPG carriers, plus some LNG bunkering units. But most of the LNG and LNG/LPG
ships are engaged in petchem gas trades and they are not expected to service new small
scale LNG export projects. LNG bunkering vessels are a potential source of competition, but
the existing fleet is dedicated to LNG bunkering operations, while all of the vessels on order
are also earmarked for LNG bunkering.
In order to achieve first mover advantage, some shipowners have already started ordering
small LNG vessels. Five small-scale LNG carriers were in fact ordered in 2018 and in 2019
and beyond we expect to see more orders for small LNG carriers. Small is therefore likely to
become the new big for the LNG shipping market.
[Drewry / Global Maritime Hub]
Port development: Ports and the circular economy
09/01/2019
The ongoing shift toward a circular economy, in which end-of-life (EOL) products are
reused, remanufactured, or recycled, has major implications for seaports, especially seaports
in metropolitan areas, as in such areas, huge amounts of EOL products are available. Ports
are therefore relevant locations for circular economy activities.
The study Ports and the circular economy of Peter de Langen and Henrik Sornn-Friese (both
of the Copenhagen Business School) identifies the main commodities in volume terms and
the set of associated activities and assesses resulting opportunities and threats for ports.
Case studies of Dutch ports are used to illustrate this analysis. The ongoing shift toward a
circular economy, in which end-of-life (EOL) products are reused, remanufactured, or
recycled, has major implications for seaports, especially seaports in metropolitan areas, as in
such areas, huge amounts of EOL products are available. Ports are therefore relevant
locations for circular economy activities. The study identifies the main commodities in
volume terms and the set of associated activities and assesses resulting opportunities and
threats for ports. Case studies of Dutch ports are used to illustrate this analysis.
The study is included as a chapter in the book Green Ports: Inland and Seaside Sustainable
Transportation Strategies, published by Elsevier in Sep 2018.
[PortEconomics]
Port development Uruguay: UPM is tendering for a pulp terminal in the
port of Montevideo
09/01/2019
Finish forest company UPM is taking part in the international public tendering process in the
port of Montevideo organized by the National Ports Administration (ANP) of Uruguay.
The scope of the concession tender is the building and operation of a port terminal
specialized in the storage and shipping of pulp, chemicals and other inputs related to pulp
production with a capacity to handle approximately 2 million tonnes of pulp annually. The
tender includes the design, financing, engineering, construction, operation and maintenance
of the pulp terminal. The tenure of the concession would be for 50 years.
Port development, supporting an efficient and reliable outbound logistics, is a key
fundamental for the potential installation of the third pulp mill in the country. Modern
facilities in the Montevideo deep sea port would offer a competitive gateway from South
America to growing export markets benefiting the Uruguayan economy.
The tender is made in the context of UPM's current study on the potential of building a new
pulp mill in Uruguay. The investment agreement with the Government of Uruguay was
signed in 2017. As part of the agreement the Government will promote concession for a
terminal specializing in pulp in the Montevideo port with rail access. The possible pulp mill
would have an annual capacity of approximately 2 million tonnes of eucalyptus market pulp.
The preliminary estimate for a pulp mill investment on site is approximately EUR 2 billion.
Two preparation phases need to be successfully completed before UPM would be in a
position to make a final investment decision on the pulp mill. The second preparation phase
is currently proceeding. Achieving significant progress in the implementation of the agreed
infrastructure initiatives by the Government of Uruguay and any relevant items are to be
agreed prior to the possible final investment decision. If these two preparation phases are
concluded successfully, UPM will initiate the company's regular process of analysing and
preparing an investment decision.
Source: UPM
If awarded a concession in the Montevideo port, UPM's financial commitment in the form of
a performance bond would be USD 20 million at this stage. At the time of the potential final
investment decision on the pulp mill project UPM would proceed with the port investment
decision and start of the construction of the port facilities. The preliminary UPM investment
estimate for the port facilities would be approximately USD 260 million.
[UPM]
Port development Greece: Thessaloniki looks to €200 million
investment to drive growth
09/01/2019
Following its privatisation in March 2018, Thessaloniki Port Authority SA (ThPA) and its
leading shareholder South Europe Gateway Thessaloniki (SEGT) will use a €200 million
investment plan to boost its growth potential and become one of the most important ports
in the Mediterranean.
It has already been announced that from the beginning of spring 2019 a new area of 26,000
m² will be available for the temporary storage of containers to be exported, which is part of
the gradual redesign of the overall operation of the container terminal and of the new
investment program.
Of the investment, €130 million has been allocated to 6th Pier projects, €30 million to
equipment for the container station and the station dry cargo and €20 million for static
reinforcement at the old customs office, as well as other port development projects.
Improved facilities will enable the port to handle larger vessels and thus increase container
volumes. Since privatisation, several port companies have returned and the entry waiting time
for ships has greatly reduced, with a target to achieve an international port standard of a
maximum eight-hours wait for vessels to enter the port.
In 2018, 424,000 TEU were transported to the Container Terminal and 3,764,000 tonnes to
the Conventional Port, an increase of 5.5% in both sectors compared to 2017, as announced
recently. The current capitalization of ThPA SA in the Athens Stock Exchange amounts to
257 million euros.
For 2018, ThPA reported improved general cargo and container traffic in 2018. Containers
handled were 424,000 TEU and conventional cargo 3,764,000 tonnes, an increase of 5.5%,
in both sectors, compared to 2017.
Thessaloniki Port Authority was privatised on March 23, 2018, and is now operated by South
Europe Gateway Thessaloniki (SEGT) Ltd, a consortium, in turn, owned by Deutsche Invest
Equity Partners GmbH (47%), Terminal Link SAS (33%) and Belterra Investments Ltd
(20%).
[PortSEurope]
Port development Angola: Japan to finance and build $643 million port in
the south
09/01/2019
By Junichi Sugihara, Nikkei staff writer
Trading company Toyota Tsusho and the Japan Bank for International Cooperation (JBIC)
are joining forces on a port project in Angola that will be the largest of its kind for Japanese
businesses.
The plan is to raise 70 billion yen ($643 million) from both public and private lenders in
Japan to help the African country fund the endeavor. The move comes as China steps up
infrastructure development in Africa amid concerns that it is saddling developing countries
with excessive debt.
Japan's businesses and government say they prioritize profitability and will ensure host
countries' debts remain sustainable, aiming to establish a model for infrastructure exports to
emerging economies.
In Angola, Toyota Tsusho is to take on the port order in the south of the country, where
development is lagging. It plans to use Japanese equipment and materials to construct the
facility through a contract with the Angolan government, which will receive loans from
export credit agency JBIC and other entities. Angola, which relies heavily on oil exports,
needs to upgrade its ports. It also aims to ship iron ore from the new Japanese-backed one.
A deal is to be signed by Friday.
JBIC intends to set up a credit line capped at about 70 billion yen for the Angolan
government. The lender will provide half that amount and raise the rest from private-sector
banks. To
encourage private lenders to participate, Nippon Export and Investment Insurance is to
insure the amounts they offer.
China, which continues to push its sprawling Belt and Road Initiative for infrastructure
investments, is behind numerous projects in Africa. It moved into Angola around 2002, at
the end of a civil war there, bringing economic reconstruction assistance. China is now
believed to account for more than half of Angola's external debts.
In some cases, emerging countries are having difficulty repaying their hefty obligations to
China. And given fears that declining emerging-market currencies could destabilize the
global economy, Japan's government plans to bring up the development debt issue when it
hosts the Group of 20 summit of advanced and emerging nations in Osaka this June.
[Nikkei Asian Review]
Port development EU: Hamburg, Antwerp and Rotterdam are against the
European Maritime Single Window
09/01/2019
In the discussion on the European Maritime Single Window proposal, MEPs have issued an
amendment introducing an EU level access point interface, in addition to the new
harmonised interface that will be developed at European level for the national single
windows (NSW).
The ports of Hamburg, Antwerp and Rotterdam urge the European Transport Committee to
vote against the European Maritime Single Window, according to Port of Rotterdam's
statement.
The ports are against this amendment because they firmly believe that in the case where an
additional EU level access point interface was to be introduced for ship reporting, that would
result to delays and endangering safety and environmental protection in European seaports,
since the already existent availability of reported data would be compromised.
In ports, the data collected from ship reporting formalities is used by port authorities, aiming
to assess the safety involved in facilitating a port call. Additionally, the data is also used to
support the safe conduct of navigation of ships in port areas and in accommodating
mooring, berthing, servicing and other operational processes to protect the environment on
a 24/7 basis.
That's why, the three ports that are opposing to the amendment, are aspiring to keep the
data as it already is. In the possibility of further extending the reporting chain at the access
point at the EU level, the level of availability of operational safety data will be reduced and
the risk of losing data will be enlarged.
The statement also highlights that the three ports are in favour of data standardization.
Finally, European ports support the general idea of the Commission’s proposal to work with
enhanced and harmonized NSW’s as an EU backbone of the current system, keeping the
new data access points and interface systems at a minimum, while making maximum use of
proven access points such as the NSW and Port Community Systems.
[SAFETY4SEA]
Port development EU: European Commission adopts two decisions on
taxation of ports in Italy and Spain
08/01/2019
The European Commission has proposed, in two separate decisions, that Italy and Spain
align their taxation of ports with State aid rules. The Commission remains committed to
ensure a level playing field across the EU in this key economic sector.
Mainly, as stated by Margrethe Vestager, Commissioner in charge of competition policy,
ports are a major infrastructure concerning regional development and economic growth.
That's why, the EU state aid rules to provide room for Member States to support and invest
in ports.
She stated that ―To ensure fair competition across the EU, ports generating profits from
economic activities should pay taxes in the same way as other companies – no more, no
less. What's more, cross-border competition has a crucial role in the ports sector. Therefore,
the Commission aspires to ensure a level of playing field in this economic sector.‖
According to the European Commission's statement, a corporate tax exemption for ports will
gain profits from economic activities, and can provide them with competitive benefits on the
internal market. That is why it requires State aid which may not be compatible with the EU
regulations.
Also, ports carry out both non-economic and economic activities. Specifically:
• Non-economic activities, such as maritime traffic control and safety or anti-pollution
surveillance, typically fall within the competence of public authorities. Such public remit
activities are outside the scope of EU State aid control.
• The commercial operation of port infrastructure, such as providing paid access to the
port, on the other hand constitutes an economic activity. EU State aid rules apply to these
activities.
In Italy, ports are fully exempt from corporate income tax. On the contrary, in Spain, ports
are exempt from corporate income tax on their main sources of revenue, such as port fees
or income from rental contracts.
In April 2018, the Commission informed Italy and Spain on the matter of the taxation of
ports. According to the statement, the European Commission has the belief that in both Italy
and Spain, the existing tax regimes provide the ports with a selective advantage that may
not follow the EU State aid rules.
As a result, the Commission invited both countries to adapt with their legislation in order to
ensure that ports, from January 1, 2020, are to pay corporate tax the same way as other
companies in Italy and Spain, respectively.
The decision follows recent Commission decisions requiring the Netherlands, Belgium and
France to abolish exemptions from corporate tax for their ports.
[SAFETY4SEA]
Dry bulk shipping Pakistan: Coal imports to surge to 30 million tons per
annum by 2020
08/01/2019
Pakistan’s coal imports are estimated to surge to 30 million tons/annum from existing 20
million tons/annum by the year 2020, given the planned expansion of cement manufacturers
and coal-based power plants scheduled to come online in a couple of years, Shariq Siddiqui,
CEO of Pakistan International Bulk Terminal (PIBT) said.
Talking to The News on Monday, Siddiqui said around 8.0 million tons of coal was imported
by cement companies every year, while 12 million tons was imported by power plants
including Sahiwal Power Plant and Port Qasim power plants. The demand by cement
manufacturers was estimated to increase by 2.0 million tons, while 8.0 million tons would be
required by coal-based power plants by 2020.
―PIBT is the only dirty bulk cargo terminal with state-of-the-art mechanised system having
capacity to handle 12 million tons/annum. As the imports surge, we would go for
expansion,‖ Siddiqui said.
The Supreme Court of Pakistan (SCP) in July 2017 imposed a complete ban on coal handling
at Karachi Port, and ever since, PIBT was the only terminal handling commercial imports of
coal. The power plants have their own coal-import jetties.
―PIBT started operations in July 2017, and has so far running in operational losses.
However, planned expansion in the wake of rising demand would help the company’s
balance sheet,‖ Siddiqui added. Talking about the terminal operations, Siddiqui said, ―PIBT
empties a 60,000 tons vessel in 30 hours, which used to take around seven days at Karachi
Port, thus saving demurrages to shipping line and the importer. Moreover, the mechanised
system avoids pilferage and environment hazards.‖
He said a proposal had been forwarded to the Ministry of Railways for laying four kilometre
train tracks connecting PIBT to Juma goth junction, which, he added would facilitate coal
transportation a lot. It is worth noting that a vessel has to pay demurrage to the tune of
$14,000/day at Karachi Port and this expense is borne as per the arrangement between the
importer and the shipping company.
An importer said about 60 percent of the coal imported was transported to cement
manufacturers in the northern region, and shifting of coal handling from Karachi Port to Port
Qasim eased this transportation. Coal handling at Port Qasim also generates revenue for the
government, as a royalty of $2.27/ton is imposed by the Port Qasim Authority (PQA), which
was absent at Karachi Port.
Shariq Siddiqui suggested that clinker export handling should also be banned at Karachi Port
as this commodity was even more hazardous for environment and human health than coal.
―Switching of coal handling from Karachi Port has improved environment in Karachi and
switching of clinker handling would have even better impact,‖ he added.
[The News]
Research & innovation: Sweden to back development of wind- powered
car carrier
08/01/2019
The Swedish Transport Administration (Trafikverket) will allocate SEK27M (€2.65M) for the
development of a wind-powered car carrier during 2019-2022, with Wallenius Marine as
project coordinator. The goal is to have a design ready for contracting in 2021
"The Wind Powered Car Carrier project will be realised," said Per Tunell, COO, Wallenius
Marine. "In a groundbreaking way, it changes the prerequisites for oceangoing sea
transportation."
Trafikverket grants for research and innovation for the three-year development project are
allocated according to a preliminary grant plan to the project partners. Wallenius Marine
receives a total of around SEK6.6M, SSPA Sweden SEK14 M and KTH Royal Institute of
Technology SEK6.5M The development work began at the beginning of January.
"This means a paradigm shift in shipping," says Jakob Kuttenkeuler, Professor, Centre of
Naval architecture, KTH. "Today’s ships run too fast and consume a lot of fuel. It has
worked with low oil prices, but the environment has suffered. This is the world’s first
realisable emission- free ship concept in modern times."
The idea of new, wind-powered cargo vessels is not new. In 2017 a group of Hamburg
shipping companies, with involvement of Lloyd’s Register, announced the Quadriga project
for a four-masted car carrier with an intake of 1,700-2,000 CEU.
According to Wallenius Marine, however, the Swedish design will be the first newly-built
oceangoing sailing vessel for commercial cargo traffic since the last steel-built square-riggers
were delivered at the beginning of the 20th century. In WPCC (Wind Powered Car Carrier), it
is the whole concept, that is rigging and hull, which together give a unique entity. The hull is
specially designed for a sailing cargo vessel and everything must be designed with this in
mind
- speed, control technology, hull shape and design, cargo distribution, rig set-up, size and
construction.
The wind concept is intended to be applied to other types of ships in the future. "Wallenius
drives the sustainability issue and has always done so," said Tunell. "The industry faces
enormous challenges in terms of sustainability and this type of solution with wind powered
ships on the oceans is by far the most interesting solution for achieving truly sustainable
shipping."
Wallenius Marine’s vision is to be able to sail emission-free in the future with its ships. This
means slower transportation than today. The vessel will also be equipped with an engine. By
using additional power from the engine, it is possible to ensure that timetables can be kept.
Shipping is one of seven transportation field portfolios in which Trafikverket provides
investments in research and innovation. "We believe in this project and have made the
assessment that it sits well in our portfolio," said Rein Jüriado, the Administration’s strategic
director.
"We have a portfolio where we spend approximately SEK 55–60M a year on maritime
research. We see that sustainability is a big challenge and we prefer such innovative
projects. It is also very enjoyable that there are three strong players who are jointly
conducting this project.
"It has potential to become useful to society and there is the possibility of industrially
applying the solutions in the long run and also gain knowledge. This means that we meet
three goals that we have set up: that society, industry and academia should benefit from
this project."
[World Cargo News]
Casualties Arctic: Salvors remove bunkers from trawler wreck
08/01/2019
Salvors aboard the Norwegian Coast Guard vessel KV Svalbard are preparing to remove
diesel fuel from the trawler Northguider, which is aground off Spitsbergen in Norway's high
Arctic.
On December 28, the Northguider grounded in the Hinlopenstretet, the narrow strait
between Spitsbergen and Nordauslandet. Her crew put out a distress call and reported that
the vessel had taken on water in the engine room. The government of Svalbard dispatched
its two helicopters to rescue them, and all crewmembers were safely evacuated by 1600
hours the same day.
Source: Norwegian Coast Guard
Source: Norwegian Coast Guard
above the Arctic Circle, and the area is in the middle of its long polar night. In addition, the
weather changes quickly and can make an otherwise safe operation dangerous in minutes,
according to the Norwegian Coast Guard.
For now, Norway's Coastal Administration, the Norwegian Coast Guard, shipowner Opilio and
its contracted salvor Ardent Global are all closely focused on pollution prevention. It is
possible that the Northguider may be refloated, but in the event that she is lost, the
responders want to ensure that there is no harm to the marine environment.
"For our part, it is now important to remove all of the oil products on board the boat," said
Opilio's general manager, Arne Birkeland, speaking to Fiskeribladet. "It doesn't matter much
if we have to pick up scrap metal or if we get a vessel."
A joint team aboard the Norwegian Coast Guard icebreaker KV Svalbard has begun
preparations for fuel removal. Salvors from the Svalbard boarded the Northguider on
Thursday in order to clear access to the fuel tanks and remove potential pollutants and
buoyant debris, including nets, ropes, batteries, paints and chemicals. They also closed as
many valves and bulkhead penetrations on board as possible, and they conducted an ROV
survey around the trawler's hull to inspect for damage.
The Northguider sits in water too shallow for the Svalbard to approach, and so all operations
will be conducted using small boats. A window of good weather is expected on Wednesday,
and the salvors hope to capitalize on it in order to get as much fuel, lubricating oil and
hydraulic fluid off the ship as possible. Over the course of a four-day operation, a small
launch will shuttle back and forth between the wrecked trawler and the Svalbard, carrying
petroleum products in small increments.
For now, the Northguider is in a stable state, resting on sand and bedrock with a 17-degree
list. However, she has sustained hull damage and limited flooding, and the prospects are
uncertain for refloating her before winter ice arrives.
[The Maritime Executive]
Casualties Mediterranean: Human errors identified as cause of ro-ro vessel
collision with containership off Corsica
08/01/2019
By Mike Schuler
The investigation into the collision involving a roll-on/roll-off vessel and a containership in
the Mediterranean Sea last October identified human errors on a multitude of levels as the
root cause of the accident.
According to Tunisian, French and Cypriot investigators who revealed their findings on
Monday, the investigation revealed that the watch officer on board the Tunisian ro-ro Ulysse
was alone on the bridge and on his phone, far away from radar, at the time of the collision
early on October 7th.
The Tunisian ro-ro Ulysse pinned to the hull of the CSL Virginia in the Mediterranean Sea off Corsica. Credit:
Prémar Méditerranée
Officers on the Cypriot container ship Virginia also not attend to radar alarms, investigators
questioned why the ship had dropped anchor in the middle of a shipping lane.
The Ulysse was underway from Genoa, Italy to Tunisia when it collided with the CSL
Virginia, which was at anchor approximately 17 miles of the island of Corsica early in the
morning on 7 October 2018. The collision resulted in the bow of the Ulysse penetrating deep
into the hull of the containership, resulting in the release of some 500 cubic meter of heavy
fuel oil. The two ships remained connected for days before they were eventually separated.
―This accident is due to human error shared between the Tunisian boat’s team and that of
the Cypriot boat,‖ said Youssef Ben Romdhane, director general of sea transport in Tunisia’s
commerce ministry, according to a report by the AFP.
―The captain of the Tunisian boat was busy… making private telephone calls. He was far
from the radar screen that warns of danger. He was alone‖, Romdhane said. For their part,
investigators found that the CSL Virginia, under pressure from the ship owner, was anchored
in an area Romdhane described as ―inadequate.‖
―According to testimony… this is the first time a ship had dropped anchor in this location…
(on) a sea lane used by merchant ships,‖ he said.
Damage to the vessels was estimated at 13.5 million euros, plus cleanup costs estimated at
10 million euros.
[gCaptain]
Casualties: Number of containership fires is „shocking‟
08/01/2019
By Chris Dupin
The fires onboard the Hapag-Lloyd ship Yantian Express off the coast of Nova Scotia and the
car carrier Serenity Ace in the North Pacific are highlighting what have become frighteningly
commonplace occurrences.
The first week of 2019 brought a spate of serious shipping accidents that has continued this
week. On Tuesday a fire and series of explosions on a tanker off of Hong Kong resulted in
the death and injury of several crew members. South China Morning Post reports one crew
member died, two are still missing and seven were taken to a hospital when the Vietnam-
registered tanker Aulac Fortune exploded as it was taking on fuel.
Insurer TT Club wrote last year, ―Sources suggest that container fires may occur on a
weekly
basis and statistics indicate there is a major container cargo fire at sea roughly every 60
days.‖
Andrew Kinsey, senior risk consultant at the insurer Allianz Global Corporate & Specialty,
which publishes an annual Safety and Shipping Review, said, ―It is a truly shocking figure
when you look at what a single container on fire can develop into.‖
The cause of the fire on the 7,510-TEU Yantian Express is unknown, but Hapag-Lloyd said it
began on Thursday in a single container and spread to additional containers. The ship was
en route to Halifax from the Far East, having transited the Suez Canal.
High winds have made fighting the fire difficult. A salvage tug, Smit Nicobar, arrived on
Friday, and as the fire spread on the containership, a decision was made to transfer the
crew from the ship to the tug on Saturday and Sunday.
Hapag-Lloyd spokesman Tim Siefert told American Shipper on Tuesday that a second tug,
Maersk Mobiliser, arrived at the Yantian Express on Monday and both tugs, which are
equipped with water cannons, are now fighting the fire, which is in containers in the forward
part of the ship. He said the ship is still 800 miles from Nova Scotia. It is not known how
many containers are on fire.
The cause of a fire aboard the 650-foot car carrier Sincerity Ace on New Year’s Eve is also
unknown. That ship caught fire on Dec. 31. The crew abandoned ship, but only 16 crew
members were rescued and five are reported to have died. Autoweek reported that the ship
contained 3,500 cars, most of which are Nissans. A tug was due to arrive at the scene of the
fire on Monday.
Kinsey said he is concerned about ―normalization of risk‖ in the shipping industry. ―We
accept too much in the maritime environment,‖ he said, pointing to reports about improper
stowage of hazardous cargo.
Ian Lennard, president of National Cargo Bureau, said, ―In 2017, we inspected more than
31,000 containers and portable tanks. About 4 percent of the containers that we inspected
revealed improperly secured hazardous materials inside the containers. Of the 1,721 vessel
stow plans we inspected in 2017, 20 percent revealed errors in regard to the IMDG Code
and/or the vessel’s document of compliance. About 6 percent of all inspections had
placarding issues. Some containers had both deficiencies. The overall failure rate was 9
percent.‖
Kinsey said, ―We would never accept that type of error in aviation, but yet in maritime we
continue to.‖ Lennard pointed out that the inspections his company traditionally has done
are of containers carrying cargo being exported from the U.S. and are for repeat customers.
He expects random inspections would uncover an even bigger problem.
In a customer notice issued on Monday, Maersk said it and other carriers in the industry are
working to improve container safety and that the National Cargo Bureau has begun random
inspections of inbound containers to the U.S. ―to remove some of the risk from mis-declared
or incorrectly stuffed containers‖ under a program that was announced last summer.
Lennard said NCB is inspecting 500 containers under an initiative with Maersk and other
members of the Cargo Incident Notification System. ―It should be illuminating because it is
looking at containers that are not traditionally inspected.‖
He said a little less than 300 containers have been inspected and expected the initiative to
be completed within several months. ―We should have some meaningful and probably some
shocking numbers when we are done with the 500.‖
John Verhoeckx, owner of the four-man company Port Supervisor that performs inspections
of containers in Rotterdam, told American Shipper last year that in 2017 his firm inspected
about 4,000 outbound containers or about 15 percent of the outbound containers containing
hazardous materials shipped by his company’s clients. About 10 percent of those containers
were improperly placarded or labeled and 23 percent were rejected because of problems
with lashing or securing of cargo. (There was some overlap between the two groups.) His
clients include Hapag-Lloyd, ONE and Yang Ming.
Kinsey does not believe there is a need for stricter dangerous goods rules, but said there is
a need for better compliance with existing regulations as well as ―greater vigilance in
inspection and prosecution of people who are not complying.‖ He said some shippers are
motivated to cheat because they find they can ship cargo more cheaply if they mis-declare
cargo.
Kinsey also believes that on ultra-large containerships there is not sufficient firefighting
capability onboard ships and notes severe weather is a contributing factor when ships
experience major fires.
In September, Maersk said while it was still waiting for an investigation to establish the
cause of a fire aboard the Maersk Honam last March that resulted in the death of five crew
members, it had implemented new guidelines to improve safety on its container vessels.
(Maersk declared general average after the fire. The process of determining the total cost of
the fire is still not completed and the Maersk Honam is currently in Dubai while the company
is determining its future.)
Maersk said after the fire it developed ―risk-based dangerous goods stowage principles‖ so
that, for example, ―cargo covered under the International Maritime Dangerous Goods Code
will no longer be stowed next to accommodation and the main propulsion plant, which is
defined as the zone with the lowest risk tolerance. Similarly, risk tolerance will be low below
deck and in the middle of the vessel, whereas the risk tolerance will be higher on deck fore
and aft.‖
[American Shipper]
Casualties continue to pile up
08/01/2019
By Sarah Carter
The string of headline casualties that has marked the beginning of 2019 continues with
more serious incidents being reported daily.
All of the crew from Hapag Lloyd’s container vessel Yantian Express have now been taken
off the vessel and the fire in the containers is now being fought by the salvage tug Smit
Nicobar. The USCG which is coordinating response to the casualty has reported that the tug
Maersk Mobiliser is intending to take the ship under tow and bring it to Halifax in Canada.
Turkish officials have reported that the veteran river-sea vessel Volgo-Balt 214 built in 1978
and under the Panama flag sent a distress signal yesterday morning advising vessel sinking
some 80nm off Samsun, Turkey. The vessel which had a cargo of coal broke in two. Search
and rescue operations managed to save seven of the crew but six were reported as having
died.
In Vietnam, a Japanese wood chip carrier collided with a small general cargo vessel which
broke in two and sank. Four of the five crew were rescued but one died.
This morning the Aulac Fortune a 17,542dwt Vietnamese chemical tanker is on fire off Hong
Kong. Local press reports that at least three explosions occurred on the 2010-built vessel
which was around 1 nm south of Hong Kong’s Lamma Island. Initial investigations shows
that the crew comprised 25 persons two of whom are still missing and one of the 23
recovered has died.
[ShipInsight]
Casualties Hong Kong: Sailor is killed, two others missing in tanker
explosion
08/01/2019
At least one sailor has died and two others are missing after a large explosion on a tanker
off the coast of Lamma Island in Hong Kong that was felt several miles away.
Smoke billows from an oil and chemical tanker after catching fire off the south of Lamma Island of Hong Kong on
Tuesday.
Photo: Associated Press
Source: Equasis
Hong Kong maritime officials said the explosion Tuesday on the Vietnamese registered Aulac
Fortune happened while the vessel was being refueled by a barge.
―Most of the 25-member crew fell or jumped in the sea. 23 were rescued, two are still
missing and four were injured and taken to hospital,‖ one official said. ―The fire is under
control, but the ship is listing. It had discharged its gasoline cargo before the incident.‖
Police said the explosion was felt as far as 10 miles away, with residents of Mui Yo on
Lantau Island and Discovery Bay reporting windows rattling. ―Many thought it was a
typhoon, an earthquake,‖ a police official said. ―Three helicopters, fireboats and marine
police vessels are looking for the missing crew.‖ Pictures showed clouds of black smoke
billowing from the tanker, with a large hole on its bow and listing heavily on its right side.
The accident was the latest in a series since the start of the year. A Japanese-owned car-
carrier reported a large blaze last week in the middle of the Pacific Ocean. A Mediterranean
Shipping Co. container ship lost 270 boxes in the North Sea and a Hapag Lloyd boxship was
abandoned by its crew after a fire spread through several containers off the eastern coast of
Canada.
[The Wall Street Journal / Equasis]
Intermodal transport U.S.: South Carolina‟s Inland Port Greer to get $25
million expansion
08/01/2019
The South Carolina Ports Authority (SCPA) has received a $25 million grant from the U.S.
Department of Transportation to support the expansion of its 50-acre inland port in
Spartanburg County.
Once complete, the expansion of Inland Port Greer will increase terminal capacity, allow for
additional storage and processing tracks inside the terminal which will improve rail capacity,
efficiency and flexibility, and expand on-terminal support facilities, according to a news
release.
The expansion includes an extension of the port’s lead track and rail line to approximately
15,100 feet, the acquisition of additional equipment for the handling, loading, and unloading
of containers, and the paving of up to 40 acres, the release said.
―As S.C. Ports continues to see record growth, this funding is critical for the expansion
efforts at Inland Port Greer,‖ said Jim Newsome, SCPA president and CEO, in the release.
―This project will support local manufacturing, increase capacity for logistics growth, and
improve transportation networks supporting traffic flows for imports and exports throughout
the state and region.‖
Located at 100 International Commerce Blvd., the inland port in Greer opened in 2013 and
is linked to the Port of Charleston by the Norfolk Southern main rail line, which provides
overnight service between Charleston and the Upstate.
During its most recent fiscal year, which ended June 30, 2018, the inland port in Greer
handled a record 117,812 containers — 28.5 percent better than fiscal year 2016. It has
seen a 10 percent increase in cargo during the first quarter of this fiscal year.
The SCPA partnered with the S.C. Department of Transportation, Norfolk Southern, and
BMW Manufacturing Co. on the grant application. The funds will be administered through
the U.S. Department of Transportation’s Better Utilizing Investment to Leverage
Development program.
[Upstate Business Journal]
Intermodal transport U.S.: New rail yard aims to boost freight flow from
New Jersey‟s GCT Bayonne terminal
08/01/2019
By Michael Angell
Once dependent on drayage to move boxes to rail, GCT Bayonne now has near-dock rail to
speed shipments to U.S. hinterland.
Credit: Global Container Terminals
The Port of New York and New Jersey’s newest rail facility is now in operation, offering
shippers easier intermodal access out of one the region’s biggest marine terminals. The Port
Jersey rail facility, which began service Monday, gives shippers who bring in containers from
the Global Container Terminal’s (GCT) Bayonne container terminal access to the CSX and
Norfolk Southern rail networks.
The GCT Bayonne terminal, located on a peninsula, had no direct rail service. Marine
containers had to be trucked to a nearby ExpressRail facility in Elizabeth, New Jersey, or to
CSX’s Kearny yard or Norfolk Southern’s Croxton yard.
The Port Jersey intermodal facility will initially consist of four tracks designed for active
loading and unloading of cargo from the GCT Bayonne terminal that connect to a lead track
to and from the main freight rail network. The yard will have two all-electric rail mounted
gantry cranes for loading and unloading containers.
Artist rendering of the Port Jersey intermodal facility in lower left corner. Source: Port Authority NY & NJ
The Port announced that the facility will be fully built out by the middle of 2020 with a
9,600- feet, eight-track working pad, two lead tracks, as well as additional support and train
storage track.
The $149 million facility is designed to handle 250,000 container lifts annually. From January
through November 2018, the port’s rail lifts were 593,806 containers, accounting for just
about 9 percent of volumes. The Port is targeting 900,000 rail lifts annually, which it says
will cut
1.5million truck trips per year.
Source: Port Authority NY & NJ
The Port is marketing the new service to shippers looking to access inland markets in the
Midwest and New England. ―With more than 75 percent of the vessels arriving in the Port of
New York and New Jersey as their first call, an efficient rail system can deliver cargo to an
inland destination before the vessel reaches the next U.S. port, making our port a far more
attractive destination for shippers,‖ said Port Authority Chairman Kevin O’Toole.
Real estate research firm Jones Lang LaSalle (JLL) stated that inland hubs such as Kansas
City, Chicago, Memphis and Eastern Pennsylvania are benefitting from enhanced rail service
from major U.S. seaports.
Railroads are using expedited trains composed of a single type of car and can be several
miles in length, according to JLL. Intermodal rail offers ―fewer delays for the end-user as
containers may only be handled two or three times before arriving at the beneficial cargo
owner’s loading dock.‖ Out of New Jersey, Norfolk Southern offers double-stacked container
service to its Landers terminal in Chicago and its Atlanta Inman domestic terminal, JLL
stated.
[Freight Waves]
Terminal operators Georgia: APM Terminals submits design for Poti Port
expansion
08/01/2019
APM Terminals Poti and Poti New Terminals Consortium have submitted conceptual designs
for the first stage construction permit of the Poti Port expansion, which includes a new
breakwater and extended quay wall.
APM Terminals Poti as it currently looks. Credit: APM Terminals
The designs, submitted to the Ministry of Economy and Sustainable Development of Georgia,
include construction, development and operation of a new breakwater, 700m of quay wall
for dry bulk, containerised and general cargo, and modern equipment such as Ship-To-Shore
cranes.
―After high-level and in-
depth negotiations with
authorities, cargo owners,
equity partners and
financial institutions we
concluded that Poti will
continue as the prime
access to the Caucasian
and the Central Asian
markets. We believe that
we have the skills, ability
and expertise to
contribute to the economy
of Georgia
by persisting in our journey to further develop the Poti Sea Port,‖ said Klaus Laursen,
managing director of APM Terminals Poti.
The designs, submitted to the Ministry of Economy and Sustainable Development of Georgia,
include construction, development and operation of a new breakwater, 700m of quay wall
for dry bulk, containerised and general cargo, and modern equipment such as Ship-To-Shore
cranes. The project plan entails a 14.5m water depth at the 700m quay wall and 25 hectares
of dedicated land for the bulk operation for yard and covered storage facilities for various
cargo types, including grain, ore, and minerals.
―The new bulk port will handle cargo lots up to 60.000 tons/vessel creating new cost-
effective opportunities for cargo owners in Georgia, Azerbaijan, Armenia and other central
Asian countries,‖ added Mr Lausen.
[Port Strategy]
Reflexiones sobre el futuro de los puertos de contenedores por el nuevo
comportamiento de la contenedorización
08/01/2019
Por Ricardo J. Sánchez y Eliana Barleta, Comisión Económica para América Latina y el Caribe
(CEPAL)
Se ha visto en los últimos años una desaceleración relativa del ritmo de crecimiento del
movimiento de contenedores, que va más allá de lo que explican las perturbaciones de la
economía mundial. Los autores observan que el cambio interanual en el throughput respecto
a cambios en el PIB está decreciendo. Este documento tiene por objetivo ensayar una
explicación de las variaciones que pueden hacer que el ritmo de contenedorización aumente
o disminuya, se proponen varias hipótesis y algunas de ellas son demostradas.
Los autores aclaran que no se pretende cerrar ninguna discusión o limitar la eventual
aparición de nuevas explicaciones a este respecto.
El proceso de la contenedorización
Tradicionalmente, la literatura (por ejemplo, Peters, 2001, Rodrigue y Notteboom, 2008 y
Wilmsmeier, 2014, entre otros), explicaba el avance de la contenedorización en base a tres
factores esenciales:
1.Crecimiento orgánico: directamente relacionado con la actividad económica y
comercial. La progresiva liberalización del comercio, fuertemente influenciada por las rondas
del Acuerdo General sobre Aranceles Aduaneros y Comercio (GATT) y posteriormente de la
Organización Mundial del Comercio (OMC), es otro factor determinante del crecimiento
orgánico de la contenedorización.
2.Crecimiento inducido: causado por economías de red y por la prevalencia del
transbordo del tráfico de contenedores, los cuales impactan directamente el de los puertos,
como también la cantidad y el tamaño de los barcos necesarios para manejar el comercio
mundial por contenedores.
3.Crecimiento por el cambio tecnológico: los contenedores absorbieron buena parte del
manejo de la carga a granel, usando un sistema mecanizado de cargas de diversos tipos y
dimensiones, puestas en cajas siguiendo un estándar de medidas. Esto facilita el comercio
internacional, y disminuye considerablemente el costo de la gestión de la carga.
Después de registrarse un crecimiento del comercio vía contenedores menor de 2,3% para
2015, los volúmenes de puertos a nivel mundial crecieron un 3,8% en 2016 y 5,3% en 2018
(Clarksons, 2018). Sin embargo, la evidencia empírica muestra que la expansión del
movimiento de contenedores en relación con el comercio y la actividad económica ha
declinado. La tendencia al bajo volumen general ha persistido, ya que factores como el lento
crecimiento global y la saturación en la penetración de los contenedores, continúan pesando
sobre el crecimiento de los volúmenes portuarios.
En el gráfico 1 se puede observar la evolución del throughput a nivel mundial y en América
Latina y el Caribe (ALC) de 2000 a 2016.
Gráfico 1: Throughput de contenedores América Latina y el Caribe y mundo
Nota: Para América Latina y el Caribe fueron considerados los siguientes países: Argentina,
Brasil, Chile, Ecuador, El Salvad or, Guatemala, Honduras, México, Nicaragua, Perú,
República Dominicana, Surinam, Costa Rica.
Fuente: Autores, con datos de América Latina y el Caribe con base en el Perfil Marítimo, y
para el mundo, Clarksons.
En el gráfico 2 se presentan los respectivos CAGR (Compound Annual Growth Rate) del PIB
(Producto Interno Bruto) de América Latina y el Caribe, y el mundo.
Gráfico 2: PIB CAGR (Compound Annual Growth Rate), América Latina y el
Caribe* y mundo
Notas:
* Para América Latina y el Caribe fueron considerados los mismos países que en gráfico 1.
Se excluyó el 2009 por ser un año muy atípico.
Fuente: Autores, con datos del PIB (producto interno bruto) total (US$ a precios constantes
de 2010) de América Latina y el Caribe es con base en CEPALSTAT, y para el mundo, Banco
Mundial.
En el gráfico 3, los multiplicadores del throughput de contenedores respecto el PIB de
América Latina y el Caribe, y el mundo entre los años 2003-2008 y 2010-2016. Se ha
excluido el 2009 por considerársele un año atípico.
Gráfico 3: Multiplicador, América Latina y el Caribe* y mundo
Notas:
* Para América Latina y el Caribe fueron considerados los mismos países que en el
gráfico 1. Se excluyó el año 2009 por ser un año muy atípico
Fuente: Autores, con datos del PIB (producto interno bruto) total (US$ a precios constantes
de 2010) de América Latina y el Caribe es con base en CEPALSTAT, y para el mundo, Banco
Mundial; datos del throughput de América Latina y el Caribe es con base en el Perfil
Marítimo, y para el mundo, Clarksons.
La disminución del multiplicador no puede explicarse solamente por los factores que tienen
una relación positiva, cómo previamente mencionados, y que tradicionalmente han explicado
los avances de la contenedorización, toda vez que se ha comprobado una pérdida de
dinamismo o desaceleración de la contenedorización. Por lo tanto, es necesario contemplar
factores que incrementan la contenedorización y otros que la reducen o la rezagan,
ensayando nuevas hipótesis.
El juego del “sube y baja” de la contenedorización
El mundo actual está pasando por cambios que están rompiendo los paradigmas
tradicionales. Fuerzas disruptivas ya están presentes y lo más posible es que causen
cambios aún más profundos en el futuro. En la sección anterior se presentaron los factores
que nutren la contenedorizacion; a continuación, se mencionan aquellos que la regazan o la
hacen retroceder:
• Crisis económica y proteccionismo. Las crisis económicas desencadenan la
aplicación de medidas proteccionistas por parte de los países, como forma de evitar
problemas de balanza de pagos, como también para potenciar e incentivar el mercado
interno frente la competencia de mercancías de otros países. Estas medidas dificultan la
exportación e importación de productos, bajando el interés de socios comerciales y por
consecuencia disminuyendo la contenedorización.
• Reprimarización de la economía (especialmente aplicable a América Latina). Entre
los años 1981-1982, las materias primas y la manufactura de recursos naturales
representaban un total de 77% de las exportaciones de toda América Latina y el Caribe. En
2001-2002, representaban 44% del total de las exportaciones, demostrando un aumento en
la exportación de manufacturas de baja, media y alta tecnología, como se puede observar
en el gráfico 4.
Gráfico 4: América Latina y el Caribe: Distribución de las exportaciones totales
según intensidad tecnológica (% sobre el total de exportaciones)
Nota: Se realizaron estimaciones para los casos de Nicaragua (2016), Trinidad y Tobago
(2016), y Venezuela (2014, 2015, 2016 y 2017).
Fuente: Comisión Económica para América Latina y el Caribe (CEPAL), sobre la base de
información oficial de los países, base de datos de Naciones Unidas-COMTRADE.
• Vigorización de las alianzas navieras. Una mejor consolidación de contenedores está
asociada a la prestación de servicios sinérgicos propios de las alianzas, lo cual podría
desembocar en un menor uso de contenedores, reduciendo potencialmente la cantidad
demandada. Sin embargo, hasta el momento se mantiene como una hipótesis debido a que
no ha sido posible efectuar una medición al respecto.
• Saturación de la penetración del contenedor. Considerando que muchas cargas que
antes se transportaban a granel o como cargas generales han migrado mayoritariamente a
los contenedores, el factor positivo de aumento de la contenedorización relacionado con el
cambio tecnológico y la sustitución podría haber entrado en una fase más madura.
• Empequeñecimiento de la carga. Se trata de la reducción del tamaño de los productos,
pero también se trata de transportarlos en forma de unidades desmontadas para
ensamblarlos en ubicaciones más cercanas a los consumidores y reducir el tamaño del
empaque para ahorrar espacio y peso. Asimismo, los teléfonos móviles, equipamiento
electrónico, computadoras y otros dispositivos similares son cada vez más pequeños, más
compactos o ambos.
En el gráfico 5 se puede observar este fenómeno a través del comportamiento del índice del
valor FOB (deflactado) en comparación con su peso. Las mercancías se miden por peso, en
toneladas (TON), al no disponer de datos de volumen, asumiendo que menor peso implica
menor volumen, y por lo tanto menor uso de espacio en contenedores. Para ello, se
seleccionaron algunos grupos de productos según la Clasificación Uniforme para el Comercio
Internacional (CUCI), que representan un total de 20% del valor FOB y 18% de peso del
dígito 7 de la clasificación (maquinaria y equipo de transporte), uno de los más importantes
dentro del grupo de productos típicamente transportados por contenedores.
Gráfico 5: Comercio Sudamérica: Evolución FOB y TON de CUCIs seleccionadas
(suma de la exportación e importación)
Nota: Los países seleccionados son Argentina, Brasil, Chile, Colombia, Ecuador, Perú,
Uruguay. Las CUCIs elegidas son, respectivamente:
CUCI 75: Máquinas de oficina y máquinas de procesamiento automático de datos
CUCI 76: Aparatos y equipo para telecomunicaciones y para grabación y reproducción de
sonido CUCI 77: Maquinaria, aparatos y artefactos eléctricos y sus partes y piezas eléctricas
Fuente: Autores, con datos de la Comisión Económica para América Latina y el Caribe
(CEPAL).
• Cambio en el balance de la composición de contenedores de 20 a 40 pies.
Este cambio trata de un fenómeno que se está dando en la mayoría de las terminales. El
gráfico 6 muestra el porcentaje del uso de contenedores de 20’ y de 40’ de Colombia,
Argentina,
Brasil y Chile, que ya a partir de 2010 muestra una clara preferencia al uso de contenedores
de 40’.
Gráfico 6: Evolución del uso de contenedores de 40 pies (% del total de
contenedores)
Fuente: Autores, con base en datos oficiales de los puertos seleccionados.
• Progresiva reducción de la cantidad de transbordos y otros movimientos
portuarios. La relación entre el movimiento total en puertos (throughput) sobre la cantidad
de contenedores llenos en todo el mundo se mantuvo con baja oscilación entre 2004 y 2010,
con un promedio de 3,6 movimientos portuarios por cada contenedor lleno (comercio). A
partir de 2010 comenzó rápidamente a aumentar hasta llegar a 3,88 en 2012 (aumenta la
cantidad de movimientos respecto a llenos) y desde ahí comenzó otra etapa de reducción.
Tomando el promedio de la ratio entre 2015 y 2017, que alcanzó a 3,76 (disminuye), se
observa una caída de casi 3% respecto al máximo en 2012, como se puede observar en el
gráfico 7.
• Nueva revolución industrial y nuevas tecnologías. La Nueva Revolución
Industrial, o Revolución 4.0, ya se encuentra en sus primeras etapas, lo que ha generado
interrogantes sobre los posibles impactos que las nuevas tecnologías podrían causar en el
comercio y el transporte en el futuro. Las previsiones apuntan a un notable cambio en el
mapa de la energía, ciencia y del transporte a nivel mundial, causando cambios en la
producción de manufacturados, su ubicación geográfica y forma de comercio. Tecnologías
como las impresiones 3D, blockchain, Internet de las Cosas, Inteligencia Artificial, la
robótica, entre otras, son algunos ejemplos de tecnologías que deberán causar impacto a la
contenedorización. Debido a que nuevas tecnologías están siendo probadas e introducidas
en el mercado, y por el proceso natural de todo nuevo desarrollo, algunas no servirán y
desaparecerán, y otras evolucionarán.
Gráfico 7: Evolución mundial de la relación contenedores transferidos /
contenedores llenos
Fuente: Autores, sobre la base de Clarksons, múltiples ediciones.
Comentarios finales
Los contenedores han cambiado la manera en que se hace el comercio, contribuyendo a lo
que ahora se conoce como logística y sus beneficios al comercio internacional. No obstante,
el sube y baja del comercio internacional, algunas hipótesis para el futuro de la
contenedorización fueron formuladas.
La preocupación —o precaución— con los contenedores es debido a su importancia en el
comercio internacional a nivel mundial, ya que la industria logística mueve millones de
contenedores alrededor del globo todos los años, permitiendo el transporte de todos los
tipos de mercancías de un país a otro.
A partir del año 2012 es notoria la desaceleración del ritmo de avance del transporte en
contenedores. Debido a esto, fueron hipotetizados diversos factores, tanto positivos como
negativos, con el intento de explicar el lento crecimiento de los últimos años.
Referencias
• Comisión Económica para América Latina y el Caribe (CEPAL), Panorama de la
Inserción Internacional de América Latina y el Caribe, 2016 (LC/G.2697-P), Santiago, 2016.
• Rodrigue, J-P. & Notteboom, T. (2008), The Geography of Containerization: Half a
Century of Revolution, Adaptation and Diffusion, GeoJournal, DOI: 10.1007/s10708-008-
9210-4.
• Wilmsmeier, Gordon (2014), ―International Maritime Transport Costs: Market
Structures and
Network Configurations‖.
• Clarksons (2017), Container Intelligence Monthly, Volume 19, June 2017, Nº. 6 (ISSN:
1467- 0488).
• Clarksons (2018), Container Intelligence Monthly, Volume 20, September 2018, Nº. 6
(ISSN: 1467-0488).
• Clarksons (de 2000 a 2018), Container Intelligence Monthly, multiples ediciones.
• Peters, H. Marit Econ Logist (2001) 3: 3.
https://doi.org/10.1057/palgrave.ijme.9100003
[UNCTAD Transport and Trade Facilitation Newsletter N°81 - First Quarter 2019]
Terminal operators: What does 2019 hold for the container terminal
industry?
08/01/2019
By Neil Davidson
As we welcome in 2019, we share our thoughts on the key issues and trends likely to affect
the container ports and terminals sector in the year ahead.
Demand: We will see a softening of the global container port demand growth rate, down
from an estimated 4.7% in 2018 to just over 4% in 2019 (although 4% is still very
respectable and adds over 30 million teu to the world total). However, the projection for
2019 is highly uncertain due to the US-China tariff wars, Brexit etc. So there is a big caveat.
Capacity: We can expect to see continued caution by investors and operators in terms of
investment in new capacity because returns are not what they used to be. Even Chinese
players may be affected if China’s economy slows markedly (see above). Greenfield
expansion projects will be the area hardest hit. Nevertheless, a global capacity addition of
over 25 million teu can be expected in 2019, representing a spend of ~US$ 7.5 billion
Ships: The good news for the industry is that there will be no significant increase in
maximum container ship size (maximum teu intake is going up but physical dimensions are
not). However, cascading will still be very much at work across all trade routes, and each
port will see increasing pressure on whichever berths are able to handle the biggest ships
(and increased obsolescence of older berths).
IT: The opportunities offered by digitization / automation / blockchain / smart ports / IoT /
hyperloop (the list goes on) will continue to be vigorously explored by both terminal
operators and port authorities. However, the big challenge remains: how to find the way
through the minefield of options to focus on what will really work and what has the best
potential.
Supply chain: Linked closely to the above, terminal operators and port authorities will
continue to seek to expand their activities beyond the port gate into the wider supply chain,
to try and diversify sources of revenue, tie in traffic and get closer to cargo owners. But it’s
a crowded field, with the heavyweight liner shipping companies aiming to do the same
thing. Remains to be seen if anyone can succeed at it.
Profit: Despite all the above challenges, the global container terminal industry will remain a
very solid, profitable business. The 2019 industry throughput of over 800 million teu should
generate EBITDA in excess of US$25 billion.
[Drewry]
Terminal operators U.S.: Expansion project will boost capacity of Virginia
International Gateway 40% by 2020
07/01/2019
The Port of Virginia will receive four new ship-to-shore (STS) cranes on Monday as the latest
step in its $320 million capacity expansion project set for completion in June, officials said
Wednesday.
Once operational, these 170-foot-tall cranes will be the largest on the U.S. East Coast and
will be able to service the ultra large container vessels (ULCVs) calling at Virginia
International Gateway (VIG) for decades to come, the Norfolk, Va.-based port said.
This delivery marks the completion of the port's 2017 approval of a $44.8 million order from
Shanghai, China-based Zhenhua Heavy Industries Co. Ltd. (ZPMC). Under terms of the
contract, ZPMC is set to provide the cranes, parts, delivery, and installation, including their
arrival aboard ZPMC's Zhen Hua 27ship next week.
The remainder of the expansion project includes upgrades to the facility's berth, rail
operation, and stack yard and will bring its annual container throughput capacity to 1.2
million units. Combined with another expansion, the work will increase the port's overall
annual container capacity by 40 percent, or 1 million container units, by 2020, port officials
said.
Overall, the Virginia Port Authority (VPA) and its subsidiary Virginia International Terminals
LLC (VIT) own and operate four general cargo facilities: Norfolk International Terminals,
Portsmouth Marine Terminal, Newport News Marine Terminal and the Virginia Inland Port in
Warren County.
[DC Velocity]
Inland waterways U.S.: Container shipping has potential to expand on
deepened Mississippi
07/01/2019
The importance of the Mississippi River in container shipping is rising amid plans to deploy
larger vessels once the lower section of the river is dredged to 50 feet.
In 2017, some 552 million tons of cargo moved on the Mississippi river, up from 526 million
tons in 2016 and 521 million tons in 2015, according to the US Army Corps of Engineers.
The Mississippi connects the Gulf of Mexico with America's heartland, as well as various
tributary rivers that play a key role in shipping. Major cities along the Mississippi river
include New Orleans, Memphis, St Louis, Minneapolis and St Paul.
The river has an estimated US$735.7 billion annual impact on the nation's
economy and is responsible for 2.4 million jobs, according to Big River Coalition,
which represents commerce across the Mississippi river and its tributaries, reported
American Shipper.
A November 2017 study conducted for the National Waterways Foundation and the
US Maritime Administration by the Universities of Tennessee and Vanderbilt found
that 10 million tons of corn and soybeans transit the lock down-bound for export
each year, while fertiliser shipments account for four million tons of up-bound traffic.
The lock, primarily used by the agricultural industry, handles 22.3 million tons
annually.
"A typical inland barge has a capacity 15 times greater than one railcar and 60 times
greater than one semi-trailer truck, and one 15 barge-tow can move the equivalent
of 216 railcars or 1,050 semi-trailer trucks," according to the American Waterways
Operators, which represents the tug and barge industry.
APCT, a wholly owned subsidiary of American Patriot Holdings (APH), entered into
an "exclusivity agreement" in March 2017 with Plaquemines Port Harbour & Terminal
District (PPHTD) in Louisiana for a logistics system in which these container vessels
will dock at a future container port being planned in Plaquemines and multiple
upriver terminals.
PPHTD's new container port on the Mississippi river will be its southernmost port
complex that will be able to accommodate vessels up to 20,000 TEU. The container
terminal will comprise 1,000 acres of the new 4,200-acre port complex and also an
$8.5 billion liquefied natural gas reliquefication facility and a breakbulk terminal.
Containers imported to Plaquemines would be transferred to APCT's vessels for
delivery to their upriver port destination, while export containers will be delivered
from upriver ports to Plaquemines for export on ocean carriers, according to PPHTD
executive director Sandy Sanders.
"Beneficial cargo owners and carriers alike should look at the planned port as a
solution to their logistics problems and the high intermodal costs that plague them
today," he said. "Our plans are to provide shorter dwell times, lowest cost, with fast
and reliable routes."
Mr Sanders told BlueWater Reporting in December that he expects construction on
the container terminal to commence in 12 months, with the first phase taking three
years. The APH said these vessels consist of two designs, a 2,400-TEU model that
will strictly operate on the Mississippi river and a 1,700-TEU hybrid vessel that will
serve the Arkansas, Missouri, Illinois and Ohio rivers.
APH will look at potential shipyards in the first quarter of 2019, and once a shipyard
is selected and a contract is officially signed, it will take two years to build the first
vessel, while the subsequent vessels will each take three to four months to build.
APH plans to have two vessels of each design initially and, thereafter, it will be
demand driven.
APH has finalised contracts with ports in Memphis, Tennessee, and St Louis, Kansas
City, and Jefferson City, Missouri. Contracts with ports in Joliet, Illinois and Little
Rock, Arkansas are in the pipeline. APH's 2,400-TEU vessel design that will be
operating on the Mississippi river will allow for round trips of six days between
Plaquemines and Memphis and round trips of 10 days between Plaquemines and St
Louis.
[Hong Kong Shipping Gazette]
Shipping emissions: London-based investment vehicle seeks to raise $1
billion to hedge marine fuel clampdown
07/01/2019
By Neil Hume and David Sheppard
Some of the biggest names in shipping and oil trading are looking to raise $1bn for a
vehicle aimed at profiting from a clampdown on highly polluting marine fuels,
pitching the investment vehicle as an insurance policy for shipowners or airlines
against a spike in fuel costs.
London-based Enerjen Capital, which is run by Stephen Schueler, a former top
executive at shipping giant Maersk, and advised by renowned oil trader Andy Hall,
plan to use the money to create a bespoke ―hedging basket‖ designed to profit from
a price spike many fear could be triggered by new International Maritime
Organisation rules.
IMO 2020, as the regulations are known, comes into effect at the end of this year
and is one of the biggest changes to hit the oil industry over the past decade, with
the aim of cutting emissions by forcing the majority of the global shipping fleet to
switch to cleaner-burning diesel or fit emissions-cleaning systems called scrubbers.
For decades most ocean-going vessels have used higher sulphur bunker fuel, which
is cheaper and widely available but has been blamed for rising air pollution.
The Enerjen vehicle aims to profit from fears that the new rules, while welcomed by
environmentalists, will cause a spike in demand for diesel and send prices soaring.
Maersk, the world’s biggest shipping company, has warned the sulphur cap could
see its fuel bill rise by $2bn a year.
Enerjen, which was founded last year by Mr Schueler and Jake Greenberg, an ex-
natural resources banker at Bank of America Merrill Lynch, argued the vehicle can be
used by smaller shippers, their owners and airlines to hedge against a rise in fuel
costs without having to buy over-the-counter derivatives from banks and post
collateral. ―We will manage all the risk,‖ said Mr Greenberg.
While efforts to curb pollution usually focus on coal-fired power stations and cars,
the shipping industry is one of the biggest contributors to global emissions. The 15
biggest ships emit more
sulphur dioxide and nitrogen oxide than all of the world’s cars combined, according
to Goldman Sachs.
Mr Hall, who has a stake in the company and sits on its advisory board, introduced
Enerjen to Gus Majed, a former senior executive at Vitol, the world’s biggest
independent oil trader. Mr Majed, who will be Enerjen’s chief investment officer,
helped establish derivatives trading at Vitol in the early 2000s alongside Russell
Hardy, who became chief executive of the trading house last year.
Unlike other commodity funds, the Enerjen IMO vehicle plans to have a limited
lifespan covering the period the rules are implemented. It aims to have its hedges in
place by the end of the third quarter, when it says shipping companies will need to
buy marine diesel for their fleets in order to be compliant on January 1 2020.
Unless they hit a performance trigger, the hedges will remain in place through 2020
and be liquidated in the first quarter of 2021, when the principal and profits will be
returned to investors. Enerjen will charge a fee to cover operational expenses and
take a share of profits.
As a result of IMO 2020, Enerjen estimated 3.7m barrels a day of high sulphur fuel
oil demand will disappear, while increased consumption by shippers could see a 1m
to 1.5m b/d deficit materialise in the diesel market until new refining capacity comes
on line in 2021.
Mr Schueler said a ―global ban‖ on scrubbers was now a possibility, citing the
decision of California and Singapore, Asia’s main shipping hub, to outlaw the use of
widely used ―open- loop‖ technology, which flushes sulphur into the sea.
―Scrubbers defeat the purpose of IMO 2020,‖ said Mr Schueler, adding there was no
dry-dock capacity available until late 2020. ―Even if shipowners want to fit scrubbers
they can’t for the moment.‖
[Financial Times]
China's Fujian province to invest $1.17 billion in shipping and port
development
07/01/2019
By Katherine Si
South China province Fujian plans to invest RMB85 billion in transportation sector
and focus on cross-strait traffic upgrading. RMB8bn ($1.17bn) of the fund will be
used for shipping and port development.
Fujian recorded 555m tons coastal cargo throughput and 16.3 m teu container
volume in 2018, and its growth rate is higher than the national average figure,
according to the statistics released by Fujian Provincial Department of Transport.
Fujian is to make an easier transportation channel between Fujian and Taiwan
anddevelop more direct cross-strait shipping and logistics solutions, said Huang
XiangTan, director of Fujian Provincial Department of Transport. In 2018, Fujian
completed 18.2m tons cargo throughput to Taiwan.
Fujian will accelerate the construction of modern port cluster locally and support
Xiamen to be developed as an international shipping hub; add more shipping routes
to Southeast Asia and Middle East, explore routes to Europe, US, Africa and Latin
America. It will also encourage top shipping companies to co-operate with oversea
ports on shipping and port operation. The province aims to newly add 4m tons port
throughput in 2019.
[Seatrade Maritime News]
Container shipping: Global trade routes of ultra large container vessels
07/01/2019
By Ned Li
As a product of the global economy and an effective tool to handle fierce market
competition, more and more Ultra Large Container Vessels (ULCV) are utilized
nowadays in long-haul shipping.
According to ships’ AIS navigation records, in the fourth quarter of 2018, 118 fully
cellular container ships, which each carrying capacity of more than 14,500 TEU were
active in the high seas.
These ULCVs made 1,818 calls connected 63 ports in 32 countries. 69 percent port
pairs were the result of international sailings. Shanghai Port was top, receiving 164
port calls from ULCVs. It was followed by Ningbo-Zhoushan which had 133.
Rotterdam placed third with 122.
The ULCV network is plotted in the diagram on the next page. The width of the
arrows indicates the volume of callings. Country pairs with both back and forth
voyages are represented in distinctive colors. Although the liners are making round-
the-world looping voyages, certain pairs such as China with Singapore, Malaysia,
South Korea, and the Netherlands with Germany had frequent bidirectional
connections thus more exchanges.
Trade routes bridging Asia and Europe received the greatest share of these giant
ships’ cross continental deployments. 96 ships sailed between the two continents in
the quarter, 70 ships dedicated for continental itineraries. The rest mostly included
Middle East and North Africa in their journeys.
ULCVs visited 23 ports in 10 countries in Asia. Singapore stands as the hub for
distributing eastern cargo to Europe. Algeciras, Southampton and Felixstowe were
Singapore’s principal.
destinations. Singapore's neighbor, the port of Tanjung Pelepas in Malaysia, received
more Chinese inbound calls and some shifted to Singapore before departed Asia.
Tanger Med, Sines and Rotterdam were its top three fixtures.
Conversely, Singapore conveyed inbound goods to China, mainly Hong Kong and Shanghai.
Shanghai was also key for Tanjung Pelepas. China itself, compared to the hubs, had much
less direct callings to Europe. Shanghai to Rotterdam, Xingang and Shekou to Marseille were
the only major contacts recorded. On the other hand, China had 30 intakes, of which Jebel
Ali to Yantian and Hong Kong, Rotterdam to Shanghai each had 10.
In northeast Asia, China and South Korea had tight bilateral connections via ULCVs. Almost
93 percent of the port calls of ULCVs from Busan and Gwangyang to China fell entered
Ningbo- Zhoushan. In return, the Chinese port Xingang became a nearest door to South
Korea.
The U.K. and Greece topped in Singapore’s exports by ULCVs. Sri Lanka, Morocco and
Portugal became the most important direct doors to Malaysia. The Netherlands, Germany,
Belgium, France and the U.K. also featured. Rotterdam, Hamburg, Antwerp and
Bremerhaven respectively played the most important role in regional trades with ULCVs.
[The Maritime Executive]
Port development Morocco: National Ports Agency plans to
invest €165 million between 2019 and 2021
07/01/2019
The Moroccan government’s Agence Nationale des Ports (ANP – National Ports Agency) is
planning to invest MAD 3.1 billion (€165 million) in its ports in the period 2019-2021,
including
MAD 1.5 billion in 2019. The investment will cover development, modernization and
maintenance.
2019 will see the launch of new development projects, including the extension of the port of
Jebha (Tangier-Tétouan-Al Hoceïma region) and the completion of work at the port of Jorf
Lasfar, and work at the dry port of Zenata. 2019 financial year will also see the
concessioning of a new shipyard at the port of Casablanca.
In terms of maritime trade, this year will see the processing of a volume of traffic of more
than 90 million tons, up 4.5% on the previous year. This increase is mainly due to the
strong rebound expected from foreign sales of phosphates and derivatives as well as the
increase in coal imports, following the commissioning of the new Safi power station.
On the regulatory side, the year 2019 will be marked by the consolidation of the agency’s
reference framework, according to the approach that brings together all the players in the
port system. In terms of budget forecasts, the turnover of ANP for 2019 will exceed the
milestone of MAD 1.9 billion dirhams, an increase of 8.8% compared to 2018.
[PortSEurope]
Port development India: Tata Steel to develop Subarnarekha port
07/01/2019
Tata Steel has sought the support of the State Government to develop Subarnarekha port as
a primary port of eastern India.
Tata Steel CEO and Managing Director TV Narendran has written to the State Government in
this regard as Tata Steel has increased its shareholding to 51 per cent in Creative Port
Development Private Limited (CPDPL). The CPDPL is the concessionaire of the Subarnarekha
Port and Tata Steel has made this company its subsidiary.
With the leasing out 693 acres of land to set up the port the proposed capacity will be 25
MPTA, which will be expanded to 55 MTPA. There will be seven berths in the first phase,
which will be enhanced to 12 berths in phase II.
The port location makes it attractive for the company to structurally enhance the competitive
position of its Indian operations, especially the Kalinganagar greenfield Steel Project in the
State and recent acquisition of the Bhusan Steel, now the Tata Steel BSL.
[The Pioneer]
Port development India: Tata Steel to develop Subarnarekha port
07/01/2019
A Bangladeshi shipbreaking company has been fined $240,000 for dismantling a grounded
vessel at an unapproved location in Chittagong.
The Crystal Gold beached for scrapping at Parki Beach near Chittagong. Credit: Hasan Chowdhury
The scrapping of beached ships is a common practice in Chittagong, which is home to
Bangladesh's busy shipbreaking industry. Every year, hundreds of vessels from all over the
world are driven onto a seven-mile stretch of beach just north of the city center, where they
are cut up for scrap steel. This area of industrial activity is also an alleged source of
pollution, as the vessels are dismantled on a tidal flat with little physical containment.
On the other side of the city, 15 miles south, is Parki Beach - a long stretch of sand that is
advertised as an attraction for international tourists. Two years ago, the decommissioned
bulker Crystal Gold went aground on Parki Beach during Cyclone Mora, and she has
remained there since.
According to the Chittagong Region of Bangladesh's Department of Environment, a
shipbreaking firm based in Chittagong has been caught illegally scrapping the Gold in place.
Shipbreaker Four Star Enterprise allegedly fenced off the vessel without a permit and began
dismantling it, leading to damage to the local ecology in an area not designated for
shipbreaking. The department issued a notice to Four Star Enterprise compelling the firm to
appear in a hearing on Sunday, and it fined the company Tk 2 crore ($240,000) after the
proceedings.
[The Maritime Executive]
Transparency & corruption China: State-run COSCO Shipping recovers
$1.8 million from corruption crackdown
07/01/2019
By Jason Jiang
The central government has found more corruption activities within state-run shipping giant
China COSCO Shipping in its latest anti-corruption inspections.
The discipline inspection team sent by the central government has found numerous officials
of the group paying golf club memberships with company funds.
The company has confiscated 47 golf club membership cards and recovered RMB12.56m
($1.8m). Several officials involved in the case have received different punishments including
demotion and serious warnings.
China COSCO Shipping has been under the spotlight in a series of corruption crackdown
operations over the last few years. In 2018, China’s National Audit Office discovered a total
of 36 irregularities and illegal practices at the group.
[Splash 24/7]
Transparency & corruption: Liberia arrests Chinese fish carrier for illegal
fish trade
07/01/2019 On Christmas, the Liberian Coast Guard, assisted by Sea Shepherd crew, arrested the Chinese- flagged (M/V) Hai Feng 823, a refrigerated cargo vessel, with a history of illegal fishing. The ship tried to offload a cargo of transshipped fish in the West African port of Monrovia. Transshipment is transferring fish from one vessel to another to obscure the origin of the illegally-caught fish and the M/V Hai Feng 823 had previously transshipped with two other arrested vessels. Crew on board the Sea Shepherd ship M/V Sam Simon assisted the Liberian Coast Guard to board the M/V Hai Feng 823 using two Sea Shepherd rigid-hulled inflatable boats. During the inspection, the captain of the M/V Hai Feng 823 presented the Liberian Coast Guard with an official set of paperwork showing that there were 21,409 cartons of fish on board the ship. However, the Liberian Coast Guard uncovered an unofficial set of paperwork indicating that there were actually 25,459 cartons of fish on board the vessel. The Liberian Coast Guard also saw a Letter of Authorization from Sierra Leone, allowing the M/V Hai Feng 823 to export 24,000 cartons of fish that had allegedly been transshipped in the waters of Sierra Leone. This means that the amount of fish carried by the M/V Hai Feng 823 is over the authorization provided by Sierra Leone, their last port of call. The M/V Hai Feng 823 was arrested on suspicion of lying to a Liberian Coast Guard officer, presenting false documents and conspiring to breach the tax and customs law of Liberia. Daniel Ziankahn, Liberia’s Minister of National Defense, stated: ―Vessels involved in tax and customs crimes will often keep two sets of paperwork on board: a false set that they present
to authorities during inspection and another true accounting that is presented to the ship’s company but is kept hidden from law enforcement agents.‖ For his part, Alistair Allan, Sea Shepherd’s captain of the M/V Sam Simon, noted that reefers contribute greatly to illegal fishing as they are used to launder the catch of criminal operators. On these ships, legal catch can be mixed with illegal catch, and catch origin can be impossible to deduce. [SAFETY4SEA]
Shipping emissions: Trump viewed as biggest threat to the timely
introduction of the sulphur cap
07/01/2019 By Sam Chambers
President Donald Trump and his administration in Washington are now considered to be the biggest threat to the start of the global sulphur cap due in 51 weeks’ time, according to the latest weekly report from Alphatanker, part of AXS Marine. ―Alphatanker now considers US opposition the greatest threat to the timely introduction of the global sulphur cap,‖ analysts wrote in the report issued at the end of last week. Alphatanker reiterated earlier reports carried by Splash that Trump is concerned about the potential for a fuel price spike as the global sulphur cap is introduced as a presidential election cycle gets underway next year. Keeping an eye on gasoline prices at home, Alphatanker is predicting in a worst case scenario, the US could threaten to leave the IMO unless it gets what it wants, something it admits is unlikely but worth considering, given how Trump has dismissed other international bodies and treaties in his first two years in power. Any delay sought would likely be for a minimum of 18 months until well after the election has passed, Alphatanker mused. The analysts stressed any delay was still unlikely, stating they currently rate the chances of any sulphur cap delay occurring at less than 20%, but this is considerably higher than its estimation of six months ago. [Splash 24/7]
Marine pollution Hong Kong: Authorities struggle to contain bunker spill
of Maersk boxship
07/01/2019 By Sam Chambers Authorities in Hong Kong spent Sunday containing a big bunker spill, which has already spread for a number of kilometres.
Credit: gCaptain
The spill was reported at 0530 hrs local time while the bunker tanker Carlung was filling up the Maersk Gateshead boxship at Container Terminal Three in Kwai Chung. Clear-up operations carried on throughout the day with early indications suggesting many thousands of litres of bunker fuel had fallen into the South China Sea. The Maersk ship had arrived in Hong Kong on Saturday and bunkering was taking place overnight. [Splash 24/7]
Casualties North Atlantic: Crew of Hapag-Lloyd´s Yantian Express evacuated from burning containership
07/01/2019 By Mike Schuler The crew of the containership Yantian Express has been evacuated as the container fire continues to burn on board the ship in the North Atlantic, Hapag-Lloyd said in an update on Sunday. The fire started in one container on January 3rd and has since spread to other containers. Due to bad weather conditions, the fire has not been successfully contained and has significantly increased in intensity at times, according to Hapag-Lloyd. The salvage tug Smit Nicobar is on scene fighting the fire but as of the latest update, the fire had not been extinguished. The crew of the Yantian Express, comprised of 8 officers and 16 crew, has now been evacuated to the Smit Nicobar. All are unharmed, the company reported. The U.S. Coast Guard said Saturday it was monitoring the situation. The ship was last reported to be approximately 800 nautical miles off the coast of Canada (Nova Scotia). ―Further developments of the situation on the Yantian Express are being monitored closely,
and the firefighting efforts with the salvage tug are ongoing,‖ Hapag-Lloyd said in its update. The company added that it could not make a precise estimate of any damage to the ship or its cargo. Built in 2002, the 7,510 TEU Yantian Express is 320 meters long and sails under German flag in the East Coast Loop 5 (EC5) service. The ship was underway from Colombo, Sri Lanka to Halifax via the Suez Canal when the fire broke out. [gCaptain]
Flag of convenience casualties Black Sea: Six dead after Soviet- era, Panama-flagged general cargo ship sinks off Samsun
07/01/2019 A cargo ship sank in rough waters off Turkey's Black Sea coast on Monday, killing six crew members including its captain, officials and media reports said. Seven other crew members were rescued.
Volgo-Balt 214. Photo: MarineTraffic.com/Mehmet Guney
Turkish authorities launched a search and rescue mission off the Black Sea coastal province of Samsun after receiving a distress signal from the vessel Volgo-Balt 214 with 13 crew members on Monday morning as it was approximately 80 miles off the coast of Samsun in northern Turkey. Samsun Gov. Osman Kaymak told reporters after visiting the survivors in hospital that six crew members, including the captain, died before rescuers could reach the area. He quoted one of the survivors as saying that the hull split into two after being hit by a powerful wave. The vessel, which was carrying coal, was heading to Samsun from the Russian port of Azov, the coast guard said. It was located about 80 nautical miles (92 statute miles) from Samsun when it sent a distress signal at 8:10 a.m. (0510 GMT; 12:10 a.m. EST). The vessel is registered under the flag of convenience of Panama since June 2017. The crew consisted of nine Ukraine nationals, two Azerbaijan nationals and two Russians, the Samsun governor’s office said.
Source: Equasis
The 1978-built Volgo-Balt 214 was a Soviet-era riverine freighter, built by the only large shipyard in the former Czechoslovakia. Port State Control (PSC) inspections identified 49 serious deficiencies over the past two years, including a detention in Azov in 2017 for hull damage impairing seaworthiness (cracking). That inspection also found improper freeboard marks and signs of hull corrosion. According to Equasis, the Volgo-Balt 214 was detained for four days in May 2017 in Azov, Russia, after a Port State Control (PSC) inspection detected 11 serious deficiencies with regard to safety, equipment, certificates, corrosion of structural parts and hull damage impairing seaworthiness (cracking). That inspection also found improper freeboard marks and signs of hull corrosion. The Russian Maritime Register of Shipping carried out the last class renewal survey of the vessel in Nov 2011, when it was still sailing under Russian flag. The vessel is owned by the Turkish one-ship company Baltwave 214 Ltd since 2008. She is managed and operated by the Turkish company Orbital Ship Management Co since 2011. Volgo Balt's Turkish ship manager operates six other sister ships of the same vintage and pattern of serious inspection deficiencies - including additional recorded instances of deficient
structural conditions. The seven ships operated by this company have been detained nine times after PSC inspections during the last three years because of serious deficiencies. Since years the big question is the same: What are the roles and responsibilities of the Panama Maritime Authority (AMP) and the International Maritime Organization (IMO) in this deplorable scenario that is repeated again and again without any corrective actions or consequences. [ABC News / Equasis / The Maritime Executive]
Flag of convenience casualties Pacific: Maritime authority to probe cause of fire on Panama-flagged Sincerity Ace
07/01/2019 By Michele Labrut The Panama Maritime Authority (AMP) through the General Directorate of Merchant Marine's Department of Maritime Accident Investigation has assigned an investigator to carry out a safety investigation into the fire suffered by the Panama-flagged vehicle carrier Sincerity Ace. Sincerity Ace is a 2009-built vehicle carrier with a capacity to transport 6,400 vehicles. According to Equasis and the Panamanian public registry, she is owned by Cypress Maritime (Panama) SA, a
mailbox company established in 1982 by the Japanese company Shoei Kisen Kaisha, the manager and operator of the vessel. Shoei Kisen Kaisha is the shipowning and leasing arm of Imabari Shipbuilding. IHS Markit data show that Shoei Kisen Kaisha’s in-service fleet includes 18 vehicle carriers. Most of the vessels are registered to so-called various special purpose vehicles (SPVs) – basically mailbox companies – that are incorporated in Panama to facilitate the registration of the vessels under Panama’s flag of convenience (FOC). Sincerity Ace was sailing from Yokohama, Japan, to Honolulu, Hawaii when a fire broke out on the high seas, some 1,800 nm from Oahu, Hawaii. Sixteen crew members were rescued alive; four of the remaining five missing crew members have been located but were unresponsive to rescuers. The AMP contacted the operators to request more information about this event, and assigned an investigator to identify the causes of the incident and issue appropriate recommendations to prevent similar accidents in the future. Initially responding rescue call was the commercial vessel Green Lake that arrived in the area to assess the situation and provide some assistance. The US Coast Guard (USCG) deployed the Hercules HC130 aircraft to support these tasks. The fire, according to information from USCG was reported by the ship's captain, and the crew attempted to bring the fire under control before abandoning ship.
At present, the investigator appointed by the AMP is in contact with the operators of the ship to coordinate assistance to the vessel and to gather all possible information to find the probable causes of the fire on board. Likewise, it will proceed to carry out the necessary interviews to the crew that have been rescued in order to obtain more information. The USCG said that the crew of the vessel were transported to Honolulu. [Seatrade Maritime News / Equasis / Fairplay]
Flag of convenience casualties Black Sea: Fire breaks out on Togo-flagged freighter off Istanbul
07/01/2019 The Turkish coast guard rescued 15 crewmembers on board a freighter, after fire broke out on January 4. The incident took place off Istanbul, Turkey in the Marmara Sea.
Credit: Hürriyet Daily News
The fire broke out on the general cargo ship Mark. The crew consisted of ten Syrians, three Indians and two Egyptians, and they were all evacuated safely from the ship. According to sources, all of them are in good health. Firemen managed to bring the fire under control in an hour, while there are no reports of oil spill, despite the fact that severe damage was reported to the ship.
Source: Equasis
Since November 2011 the Mark is owned and operated by Nord Marine SA, registered in Monrovia, Liberia. She is registered under the flag of convenience (FOC) of Togo that is since years on the Black List of the Paris MoU on Port State Control. Flag states on the Black List are considered FOC countries,
which represent high or very high risk. In the July 2018 Black List, Togo is ranked 71 among 73 flag states – only Comoros and the Republic of Congo are performing worse.
Black List of the Paris MoU on Port State Control [ Jul 2018]
Source: Paris MoU: Current Flag Performance list effective from 1 July 2018
According to information provided by Equasis, the Mark was detained for a total of 61 days on three occasions between Jan 2017 and Aug 2018 after Port State Control inspections detected a total of 61 serious safety, equipment and document deficiencies:
Source: Equasis
Since years the big question is the same: What are the roles and responsibilities of the Panama Maritime Authority (AMP) and the International Maritime Organization (IMO) in this deplorable scenario that is repeated again and again without any corrective actions or consequences. [SAFETY4SEA / Equasis / Paris MoU]
Casualties: Bad start to 2019
07/01/2019 By Paul Gunton A series of casualties involving loss of life, loss of cargo and crew taken hostage have marred the first week of 2019.
Car carrier Serenity Ace on fire. Credit: ShipInsight
The first incident involving the 2009-built car carrier Serenity Ace began on the last day of 2018 when the master reported the vessel on fire 1,800 nautical miles northwest of Oahu in the Pacific Ocean and intention to abandon ship. Several vessels responded to the SOS and recue attempts were co-ordinated by US coast guard. 16 of the 21 crew were taken on board other vessels but four unresponsive bodies were seen in the sea and one remains missing. Shoei Kisen Kaisha, the operator of the vessel has contracted tugs to recover the bodies and the badly damaged ship was reported badly damaged and listing heavily when the search for the remaining crewman was suspended on 3 January. The same day the search was called off, a fire was reported on a second vessel the 7,520teu Yantian Express owned and operated by Hapag Lloyd. The ship is some 650 nautical miles from the East coast of Canada having loaded in NE Asia and sailed via Suez. The owner has reported that a fire broke out in one container on the deck of the Yantian Express and spread to additional containers. The crew of 8 officers and 15 seafarers is unharmed. Efforts to extinguish the fire in the containers were launched immediately but the owner reported on 4 January that they have had to be suspended for the time being due to a significant deterioration of weather conditions. It is still too early to make a precise estimate of any damage to the vessel or its cargo. The salvage tug Smit Nicobar has now arrived on the scene and 11 of the crew have transferred to the tug. Hapag-Lloyd is closely cooperating with all relevant authorities.
Container ship operator MSC has suffered two unrelated incidents one involving the loss of large numbers of containers carried on the deck of MSC Zoe and the other an attack by pirates on the MSC Mandy from which 6 crew were kidnapped. The loss of 270 or so containers occurred during a storm on 2 January when the 19,224teu MSC Zoe was on its way to Bremerhaven. Several of the containers are known to contain hazardous cargoes and some have washed ashore at the beaches of Vlieland, Terschelling and Ameland. On Friday 4 January, Reuters reported that the Dutch coastguard said a criminal investigation had been launched by prosecutors into the incident, one of the largest of its kind off the coast of the Netherlands. The Reuters’ report said prosecutors had sent a statement to Reuters which said that a joint investigation with Maritime Police would focus on ―whether the damage caused is the result of criminal acts,‖ possibly in violation of the anti-pollution laws for seagoing vessels. ―It will consider whether we can hold someone - and if so who - responsible for the pollution,‖ it said. Tineke Schokker, the mayor of Vlieland, one of the Wadden Islands, said she and four other mayors sent letters to MSC demanding that costs be covered. Debris continued to wash up on Friday, she said, posing a threat to flora and fauna. ―They need to remove this as quickly as possible because the longer it’s here the more damage it does,‖ she said told Reuters. ―We have decided to collectively pass on the costs to the shipping company.‖ On 5 January MSC released a statement saying the company would like to reassure authorities and members of the public in the Netherlands and Germany that it will pay the full costs of the clean-up of the 2 January MSC Zoe container spill. The statement said MSC is committed to continue searching the sea for the containers which fell overboard, until the last one is found. MSC will also ensure that the beaches of the Dutch and German coastlines are surveyed until all debris related to this incident has been cleared. MSC confirmed the appointment of salvage specialist Ardent Global to coordinate the search at sea in both countries, in full collaboration with relevant authorities. On the same day the MSC Zoe lost its containers, the 2,668teu was attacked by armed pirates off Cotonou Benin. After ransacking the vessel and robbing the crew the pirates left the vessel taking the master, two officers and three crew hostage. The ship arrived at Lagos on 4 January to await new crew. MSC has refused to comment on the incident citing respect to relatives of the hostages. [ShipInsight]
Propulsion: Innovative LNG carrier machinery configuration granted
patent by South Korea
07/01/2019 By Malcolm Latarche An innovative use of dual fuel engines and a new hull design developed by Athens-based Arista Shipping as part of its Project Forward initiative has been granted its first official patent right by South Korea. The Project Forward initiative led by Athens-Based Arista Shipping, demonstrates that with LNG as fuel, an advanced hull design, and highly efficient propulsion machinery, it will be possible to meet the IMO’s target for a 40% reduction in carbon intensity by 2030. The patented machinery arrangement consists of two low-pressure, four-stroke Wärtsilä 31Dual Fuel main engines and two PTO/PTIs, coupled on one shaft that drives a CPP propeller. Arista claims that this arrangement doubles the propulsion redundancy, quadruples the power- generating redundancy, and provides safe return to port, setting a new standard and lowering operating expenses. Th arrangement also allows for an improvement in the streamlining of the aft
part, the percentage of which is not taken into account in the consumption tables. Further, the positioning of the engines above gearbox centreline allows for additional hull lines’ optimisation. Model tests of the Project’s concept vessel indicate that the EEDI rating is well below the current most stringent Phase III level. EEDI Phase III is applicable to ships built after 2025 and signifies a 30% reduction from the 2008 reference level.
Source: Project Forward
Last year the IMO announced ambitions for a possible further reduction in CO2 emissions per transport work of up to 70% by 2050. One commonly discussed way to reduce such emissions has been to limit the propulsion engine power, but this would require a significantly lower service speed, resulting in a serious impact on the chain of logistics. Project Forward shows that this 70% reduction in CO2 emissions target can be met, even without lowering service speeds, through the use of carbon neutral fuels mixed with LNG. Such carbon neutral fuels can be transported, stored, and consumed in a similar way to that of fossil LNG. ―Through the advanced engine technology available today, LNG has a clearly superior well- to-wake emissions profile compared to liquid fuel. LNG appears not as a transition fuel, but the fuel of tomorrow and for many years to come,‖ says Antonis Trakakis, Technical Director at Arista and Chief Technology Officer of Forward Ships. The concept vessel’s hull form has been optimised in cooperation with Finnish ship designer Deltamarin and classification society ABS. ―The efficient propulsion design concept for Project Forward is based on a novel arrangement featuring just two highly efficient Wärtsilä 31DF engines without auxiliary gensets. The project is totally in line with Wärtsilä’s Smart Marine vision that foresees an era of concept solutions delivering optimal efficiency, safety, and environmental sustainability,‖ says Johnny Kackur, General Manager, Wärtsilä Marine Solutions. In addition to Arista Shipping, Deltamarin, ABS and Wärtsilä, the French LNG membrane containment system designer GTT is also involved in the project. The vessel is fitted with an LNG tank positioned midships. [ShipInsight]
Shipping assets: 2019 future winners
07/01/2019 By Court Smith Overall, the outlook for shipping asset prices remains bright, but several areas are more attractive than others. The VesselsValue forecast takes many factors into consideration when assessing each vessel class and age. Today we’ll look at some of the most appealing segments and the fundamental reasons why ships of this size are more likely to appreciate.
Container Container ships have dominated the buying opportunities over the past several quarters, and many have taken advantage of this trend to make carefully informed purchases in this space. 10-year-old Panamax container vessels represent the strongest buying opportunity in the current outlook. Even though recycling activity has slowed, the global container market balance has tightened in 2018. Furthermore, declining speed has been an important factor this year and slower speeds are expected to be the new normal. Container secondhand values increased during the first half of the year but have since shown a softer development for most sizes. Newbuilding prices have been increasing year to date for the feeder vessels and the recent ordering activity is slowly improving shipyards’ forward
books. Despite the increase in new orders, the global orderbook for all shipping segments is still at low levels as deliveries from yards have outpaced new orders being placed. LPG
Third quarter earnings for VLGCs and Midsize tonnage have been improving on the base of higher LPG volumes out of the US and a more active ammonia market. Higher LPG imports to Europe and a strong Indian market have supported Medium Gas Carriers (MGCs) and Handysizes too. The pressurized market remains very strong. Petrochemical trades are active to Asia and supported by higher US trade, but import to Europe is down, as economic activity has slowed. The supply and demand balance for VLGCs has been improving, and this will be reflected in higher numbers for vessels. Older units are priced more competitively, with an expected upside of about 30 percent on a 20-year-old unit by the start of 2020. MGCs also represent a strong buying opportunity. MGCs of 35,000 cubic meters are also an attractive option. A 15-year-old vessel could see a boost of almost 50 percent over the next year. [VesselsValue]
PROFESSIONNAL MEMBRESHIP
SIONNAL MEAdvance your career by gaining Professional Recognition.Professional recognition is a visible mark of
quality, competence and commitment, and can give you a significant advantage in today’s competitive
environment. All who have the relevant qualifications and the required level of experience can apply for Professional
Membership of IAMSP. The organization offers independent validation and integrity. Each grade of membership reflects an
individual’s professional training, experience and qualifications. You can apply for Student Membership
as per following :
Fellow (FIAMSP) To be elected as a fellow, the candidate must satisfy the council that he/she:
Has held for at least eight (8) years consecutively a high position of responsibility in shipping or
related business.
Has distinguished himself/herself in shipping practice. Is a principal in a firm or a director of a company in the business or profession.
Members in this grade are entitle to use the initials FIAMSP After their
names. Full Member (MIAMSP)
Individuals holding an internationally recognised marine qualification, or who can prove that they
have practiced on a full time basis for a minimum of five (5) years as a consultant or marine
surveyor.
Individuals who, by producing written reports can demonstrate that they have practiced marine
surveying or consultancy for at least five (5) years.
Individuals whose qualifications or experience shall be considered appropriate by the Professional
Assessment Committee. Members may use the initials FMIAMSP after their names.
Associate Member (AMIAMSP)
Associate Membership shall be open to any person, partnership, company, firm or other corporate that
does not own a Ship but is engaged in ship operating or ship management. Associate Members can
nominate one (1) person to represent them in the Association. Associate Members are entitled to attend General
Meetings and to participate in discussion at such meetings but shall not vote or stand for election to the
Board of Directors.
Technician (TechIAMSP)
Individuals holding a recognised qualification, for example Inspector level 2 or higher (NACE,
FROSIO, ICorr), RMCI and IRMII, NDT Technicians (CSWIP), for example gauging personnel, divers
or other surveyors with at least three years full time practical experience in a marine related field.
Technician Members may use the designation TIAMSP after their names.
Affiliate (AFFIAMSP)
Graduates who do not meet the criteria for Full or Associate Membership and are continuing to train and
gain experience prior to applying for Associate Membership
Student (SIAMSP)Individuals who are enrolled in training programs related to the maritime or shipping
will be appointed as student members of the Association for the duration of their course.
LAST MEMBERSHIP
Fellow (FIAMSP)
Mr.Adolfo omar Cortes Mr. MELARAYIL Mr. ESNAL Pedro
GANGADHARAN SIBIN
Spain India Spain
Full Member (MIAMSP)
Mr. MARTINS Jorge Capt. Jasim Aqeel M. Subbiah Thiyagarajah
Brazil Iraq Malaysia
Affiliate (AFFIAMSP)
M. Kirton Christopher M. Hubert Louis-philippe Mrs. HELENA ISABEL
CAMPOS LANÇA PALMA
Singapore France Portugal
UPCOMING EVENTS SUMMARY
September OSV CHARTERING CONTRACT MANAGEMENT SEMINAR
13
America Square (Cavendish Venues), London
September DECODING TRADE CONTROLS, SANCTIONS AND REGULATIONS ON DUAL-USE GOODS
18 The Hatton, London
September
MEETING THE COMMERCIAL, INSURANCE AND LEGAL CHALLENGES OF TODAY'S SALVAGE AND WRECK REMOVAL OPERATIONS
24 Novotel Clarke Quay, Singapore
September MEETING THE COMMERCIAL, INSURANCE AND LEGAL CHALLENGES OF TODAY'S SALVAGE AND
26 WRECK REMOVAL OPERATIONS
Novotel Clarke Quay, Singapore
September GLOBAL LINER SHIPPING ASIA
26 Novotel Clarke Quay, Singapore
September ARE YOU READY FOR 2019
27
Bahia Mar Fort Lauderdale Beach, Florida
October LIQUEFACTION OF BULK CARGOES SEMINAR
18 America Square (Cavendish Venues), London
February 2019 12th Arctic Shipping Summit – Montreal
21
Montreal - venue TBC