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International Association of Marine and Shipping Professionals
NEWS BULLETIN 01 – 07 Oct 2018
CALL US ON +1 307 451102
WWW.IAMSP.ORG
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.
About I.A.M.S.P
Shipping emissions: Clock is ticking on IMO’s 2020 bunker
INTERNATIONAL news
07/10/2018
Drewry survey finds that a large proportion of shippers are uneasy with carriers‘ plans for fuel recovery
post 2020 when new rules on sulphur content limits will come into force. Transparency will be key to
carriers‘ chances of cost recovery.
A recent survey conducted by Drewry of global shippers and freight forwarders found that most have yet to
receive information from carriers on the planned methods to recover fuel costs ahead of the IMO‘s 2020
global emissions regulations, while over half of those that have do not consider their service providers‘
existing approaches as either fair or transparent.
Figure 1: Findings from Drewry survey on IMO's 2020 Global Emissions Regulation
(September 2018)
Have your providers given you information on how they plan to recover the cost from this regulation?
Do you believe the current methods of fuel cost recovery are sufficiently fair and transparent?
Source: Drewry
Source: Drewry Supply Chain Advisors
More detailed analysis of the Drewry survey is available within the whitepaper Survey Findings - IMO
2020 Low-sulphur Regulations - September 2018.
Annex VI to IMO‘s International Convention for the Prevention of Pollution from Ships (MARPOL) aims
to cut air pollution from shipping, including sulphur oxides (SOx). Starting from January 2020, the global
limit for sulphur content of ships‘ fuel oil will be 0.5% m/m (mass by mass), down from 3.5% m/m
currently. More stringent limits of 0.1% m/m have already been implemented for selected SOx Emission
Control Areas (ECAs) since January 2015.
Three main options are available to owners:
1. Burning distillates (LSFO) or MGO – This is the most likely option for most owners, both for existing
and newbuild vessels. While there may be a peak in fuel prices as demand increases, prices should
come down as supply increases. Similar fuel cost rises have in the past been passed on to consumers;
2. Using exhaust gas cleaning systems (scrubbers) – Several issues have meant scrubbers are struggling to
become a popular option, such as their cost, complexity and uncertainty about future regulations which
may require retrofitting. Added to that, as LSFO and MGO gain popularity, owners may find it
increasingly difficult to find HFO, which may influence its price as well;
3. Installing dual fuel engines capable of burning LNG – This is mainly an option for newbuild vessels
trading on fixed routes or regionally in areas where better LNG bunker facilities are in place and being
developed, such as Northern Europe.
A number of carrier owners have declared their intentions. MSC, HMM and Evergreen are reportedly
opting for an exhaust gas scrubbers strategy. Maersk, which estimates the IMO ruling will add
approximately $2 billion to its fuel bill, originally said that it would exclusively use low-sulphur fuel oil
(LSFO), but has since decided to fit scrubbers on a small portion of its fleet. Both Cosco and Yang Ming
have expressed intentions to rely on LSFO, which is also the preferred option for Ocean Network Express
(ONE), although the Japanese collective is also considering scrubbers and LNG as back-up options.
Hapag-Lloyd is aiming for a ―balanced portfolio‖ of all three options.
Despite the upfront costs involved and questions marks over the sustainability of the technology, the fitting
of scrubbers appears to be gaining popularity even though it is likely to still be far less widely adopted than
switching to LSFO.
One reason why more owners are considering scrubbers is perhaps because of warnings that if there are too
few clients for high-sulphur fuel oil (HSFO) suppliers could charge a premium to keep producing such
small quantities. With time running out, it may have dawned on owners that they can no longer sit on the
fence and need to demonstrate that there will be a sufficiently large customer base for HSFO, or else risk
losing it as an option altogether. Another reason is that the capacity to get scrubbers fitted ahead of the
deadline is getting scarcer as the deadline gets nearer.
Figure 2: Early month bunker prices at the port of Rotterdam (US$/metric tonne)
Source: Drewry Maritime Research
The big questions are: how much extra costs will this heap on the industry and who will pay for it?
On the first question, everybody knows that the fuel bill will rise, but with such a variety of solutions still
being considered – LSFO, scrubbers and LNG – it is impossible to measure the quantum at this stage. The
adoption rates for each solution will have a large influence on the future prices of heavy-sulphur fuel oil
(HSFO) or LSFO, by determining demand and availability of each fuel source.
Based on independent ―futures‖ prices, low-sulphur marine fuel prices per tonne will be 55% higher than
current high-sulphur fuels and Drewry considers that the probable ―worst case‖ scenario is that fuel costs
(paid by carriers) and fuel surcharges (paid by shippers) in global container shipping will increase by 55-
60% in January 2020.
That uncertainty also makes the second question more complicated. Carriers have been busy rolling out
their planned cost recovery mechanisms, so far to quite hostile response from shipper groups that accuse
lines of abusing the situation to generate revenue. Drewry believes that carriers are going to have to be far
more transparent on the cost inputs than they have been previously if they are to convince shippers
otherwise.
Things could get quite messy. For example, the fuel cost structures of differently-powered ships could be
widely divergent. Will a universal fuel formula be fair when some ships will be running on HSFO cleaned
by scrubbers (that require an upfront cost to be fitted) and others by LSFO (that could have a substantial
price premium)? Will shippers get to choose which type of ship cargoes are moved on, creating a de-facto
two-tiered shipping market?
There is much work to be done and little time. Drewry believes the industry needs a more coordinated
approach to avoid chaos when 2020 arrives. In cooperation with both shipper members of the Drewry
Benchmarking Club, and possibly carriers as well, Drewry is working on an IMO low-sulphur rule ‗cost
impact tool‘ based on robust market data. To participate in this initiative please contact us at
Shipping emissions: Webpage on shipping air pollution launched
Casualties: Fuel spill feared as cargo ships collide off Corsica
Our view
There is a clear need for carriers to have a robust system in place to enable them to recover the additional
costs associated with the IMO 2020 rules, but equally lines must appreciate that without sufficient
transparency to customers the chances of successfully recovering those costs will diminish.
[Drewry Container Insight Weekly]
07/10/2018
Clear Seas Centre for Responsible Marine Shipping, an independent research centre that promotes safe and
sustainable marine shipping in Canada, has released its latest webpage: Air Pollution & Marine Shipping.
The site explains that while essential to the world's economy and well-being, the commercial marine
shipping industry is a major contributor to global air pollution. Its purpose is to share objective information
about the impacts of air pollution from the marine shipping industry – including the types of air pollution
ships emit, how these emissions are harmful, and what‘s being done to reduce them – and to encourage
informed conversations about these issues.
[The Maritime Executive]
07/10/2018
A cargo ship rammed into another freight vessel near the French Mediterranean island of Corsica early
Sunday, causing no injuries but causing a leak which officials say is most likely fuel.
The Ulysse, operated by the Tunisian operator CTN, struck the Cyprus-flagged CLS Virgina while it was
anchored about 30 kilometres off the northern tip of the island at around 7:30 am, the regional naval
authority said. According to the CTN's published shipping schedule, the Ulysse was travelling from Genoa
in Italy to the Tunisian port at Rades near Tunis. The Virginia was not carrying any cargo at the time.
Port development UAE: $268 million contract for expansion of Khalifa Port awarded
Port development U.S.: New Orleans obtains approval to deepen 258-mile Mississippi ship
channel to 50 feet
A handout image of the collision released by the on Sunday. Photo: Stanislas Gentien / French
Gendarmerie Nationale / AFP
"The collision caused considerable damage, with an opening several metres long in the CLS Virginia's
hull," the naval authority said, adding that the leaking liquid was spread over "several hundred metres".
Officials said they had not yet identified the liquid, but a source close to the inquiry said it was probably
leaking "from one of the fuel tanks".
The cause of the accident was not yet known, though weather conditions are not thought to have been a
factor, with relatively calm seas and good visibility in the area at the time. The Tunisian ship "was maybe
going too fast compared to its ability to react," the source told AFP.
A tugboat has been dispatched to the scene and the French navy has also sent a vessel specialised in
containing and cleaning up pollution spills. Italy has also offered its assistance as part of the Ramogepol
accord between France, Italy and Monaco to jointly intervene in cases of maritime pollution. "The Italian
authorities offered their help and we've accepted it," the naval authority said. Officials will begin by setting
up equipment to contain the spill.
[AFP]
07/10/2018
The expansion at Khalifa Port, one of the world‘s fastest growing container, bulk cargo and roll-on roll-off
vehicle transport ports, will add 1,000 m of quay wall to the port and deepen its main channel and basin to 18
m from the current 16 m.
Abu Dhabi‘s National Marine Dredging Company (NMDC) said it has been awarded a Dh985.17-million
($268 million) contract for the expansion of Khalifa Port in the UAE capital. On completion, its total annual
capacity will reach 5.6 million vessels. The Khalifa Port‘s free zone includes around 40 companies in
different business segments, such as industrial and commercial businesses.
The expansion at Khalifa Port will add 1,000 m of quay wall to the port and deepen its main channel and
basin to 18 m from the current 16 m. The new quay wall will add a further 600,000 sq m for cargo handling,
said the company in a statement. In another development, The Abu Dhabi Ports had last week received
automated rail-mounted gantry (ARMG) ship-to-shore quay cranes for deployment at Khalifa Port.
[The Medi Telegraph]
07/10/2018
: Port development Mozambique: US$274 million Nacala modernization project starts
The Port of New Orleans is making significant progress on two key projects that are in the pipeline after the
US Army Corp of Engineers gave its approval to deepen the 258-mile Mississippi River ship channel to 50
feet, up from 45 feet at present.
The deepened channel will run from the Gulf of Mexico 256 miles upriver to the port of Greater Baton
Rouge. The timeline was not immediately clear, "but we are ahead in terms of approvals," the port's vice-
president Robert Landry was quoted as saying in a report by IHS Media.
The federal share of costs will be US$118.1 million and the non-federal share $39.4 million. The ship
channel is home to four key US ports by tonnage, namely New Orleans, South Louisiana, Greater Baton
Rouge and Plaquemines.
The port is also pushing ahead with its plan to better integrate the port's public belt rail and six class I
railways. The Port of New Orleans and the New Orleans Public Belt Railroad became partners early this
year when the port acquired the city-owned shortline railroad in exchange for two Mississippi River
wharves, Esplanade and Governor Nicholls.
These wharves will now extend the city's riverfront park. The 26-mile shortline provides switching service
for the port's six class I railroads: Kansas City Southern (KCS), Canadian National Railway, Union Pacific,
Norfolk Southern, CSX Transportation, and Burlington Northern Santa Fe.
At present only 11 per cent of the port's containerised cargo is handled by intermodal rail, the rest is trucked.
The port plans to better integrate with the public belt system and the six railways to increase that intermodal
percentage, Mr Landry told JOC.com.
Containers continue to be the mode of the choice for resin exports. Resin buyers prefer to receive resin in
the 25-kilogramme bags used to load containers, Mr Landry said, and are reluctant to switch to the
supersacks that would be used if resin shippers switched to breakbulk mode. Theoretically, 25 kilogramme
bags could be packed into supersacks and some carriers are looking at going after that cargo but "it's tough
to get [receivers] to change modes," he said.
[Hong Kong Shipping Gazette]
05/10/2018
The project to modernize the deep water port of Nacala, northern Mozambique, began on Thursday with a
ceremony attended by the Minister of Transport and Communications, African news agency APA
reported.
Port of Nacala: Credit: Macauhub
Minister Carlos Mesquita recalled that this project, with funding of US$273.6 million from the Japan
International Cooperation Agency (JICA), will have a major social impact on the region, as well as an
economic impact. ―This project will give direct employment to 400 citizens and allow companies
operating in Nacala to benefit from it, since a wide variety of services will be needed,‖ he said.
The port, part of the Nacala Development Corridor, currently has the capacity to process 900,000 tons of
miscellaneous cargo, and is still being used by Vale Moçambique to export coal mined in Moatize, Tete
province.
Nacala Corridor. Credit: Mitsui
Marine pollution: Plastic waste in the world's oceans could double by 2030
Most of the cargo transiting the port, in addition to coal, comes from Malawi, which does not have direct
access to the sea and uses the facility to import and export some of the products it needs, such as fertilizers,
sugar, wheat, clinker and tobacco.
The port and the rail network in northern Mozambique are managed by the Northern Development
Corridor, a partnership between Sociedade de Desenvolvimento do Corredor de Nacala and state rail and
port company Portos e Caminhos-de-Ferro de Moçambique.
[Macauhub]
05/10/2018
By Alexander Kwiatkowski
• IEA warns of "starkly unacceptable" scenario as demand grows
• Agency says recycling, waste management need to improve
The International Energy Agency (IEA) has a sobering warning about the health of the world‘s oceans. The
total amount of oceanic plastic waste is likely to more than double by 2030, and then keep getting worse, if
action isn‘t taken now, according to projections by the Paris-based organization in a report published Friday:
The Future of Petrochemicals.
Credit: Rich Carey / Shutterstock
Arresting images of strangled turtles and tropical waves clogged with garbage have helped raise awareness
about the threat to oceans from plastic waste. But the IEA‘s projections suggest that efforts to curb that
pollution -- such as the movement to ban plastic straws -- may prove futile unless there‘s a global revolution
in recycling and waste management.
It‘s estimated that around 100 million metric tons of plastic waste has already ―leaked" into oceans, an
amount that‘s increasing annually by 5 million to 15 million tons, according to research cited by the IEA.
The infamous Pacific garbage patch, which covers an area three times the size of France and holds the
equivalent of 250 pieces of plastic for each person on earth, may only contain as much as 79,000 tons, the
IEA said.
Annual and cumulative ocean-bound plastic leakage by scenario
Source: IEA / Jambeck, J.R. et al.: Plastic waste inputs from land into the ocean [2015]
Source: Bloomberg
The problem is that recycling and waste management efforts aren‘t keeping pace with the massive growth in
plastic production and consumption. Less than 20 percent of plastic waste is currently collected for
recycling, according to the IEA.
‘Far outweighed’
―Although substantial increases in recycling and efforts to curb single-use plastics take place, especially led
by Europe, Japan and Korea, these efforts will be far outweighed by the sharp increase in developing
economies of plastic consumption (as well as its disposal),‖ the agency wrote in its report on the
petrochemical industry.
Source: OECD / IEA
Global plastics production has increased by more than 10-fold since 1970, faster than any other group of
bulk materials, according to the IEA. And demand has nearly doubled since the start of the millennium.
Source: OECD / IEA
Container shipping: World Container Index - 04 Oct 2018
The agency projects that by 2050 production of a group of key thermoplastics including polyethylene
terephthalate (used to make plastic bottles), polyethylene and PVC could grow almost 70 percent from 2017
levels. Global production would increase almost 30 percent to more than 60 kilograms per capita.
The U.S., Europe, and other developed economies currently use as much as 20 times more plastic per capita
than emerging economies, according to the IEA. Developing nations will increase their share of global
consumption as their populations get bigger and wealthier, while use by developed countries remains stable
or declines.
―Without ambitious action being taken globally, particularly in regions in which plastic demand is growing
rapidly, current trends of plastic leakage are unlikely even to slow, let alone reverse,‖ the IEA said.
The IEA‘s projections are according to its Reference Technology Scenario, or how things could develop
based on today‘s policies and behavior. The future is less bleak under its Clean Technology Scenario. This
model is based on the agency‘s Sustainable Development Scenario, which takes ―a vision of where the
energy sector needs to go and works back from that to the present, rather than projecting forward from
today‘s trends.‖
Under this scenario, ―environmental impacts decline across the board‖. Thanks to waste management
improvements and a rapid increase in recycling, cumulative plastic waste in oceans could be halved by 2050
compared with the RTS scenario. This would require the elimination of materials that defy collection, such
as microbeads and ultra-thin plastic films.
As well, ―achieving this goal entails a transformation in waste management practices across the globe,‖ the
IEA said, ―including widespread waste collection in regions that have poor systems in place at the moment,
if at all.‖
[Bloomberg]
04/10/2018
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 by 3.1% to $1,668.47 per 40ft container.
Two-year spot freight rate trend for the World Container Index:
Container shipping: Supply-demand balance postponed
Our detailed assessment for Thursday, 4 Oct
The composite index is down by 3.1% this week, however, 29.1% up as compared with same period of 2017.
• The average composite index of the WCI, assessed by Drewry for year-to-date, is US $1,471/40ft container,
which is $44 lower than the five-year average of $1,515/40ft container.
• Drewry‘s composite World Container Index (WCI) is slightly down by 3.1% to $1,668.47 per 40ft
containers. Freight rates on Shanghai-Rotterdam decreased by $113 to $1,433 for a 40ft container. Similarly,
rates from Rotterdam to Shanghai plummeted by $159 for a 40ft box to $808. On the other hand, rates on the
Transpacific routes remained almost stable. Drewry expects rates to soften 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]
04/10/2018
A gloomier world economic outlook and rising trade tensions have forced Drewry to downgrade its forecast
for container demand over the next five years, according to the global shipping consultancy‘s latest edition
of the Container Forecaster.
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Drewry‘s long-term supply and demand prognosis for carriers has deteriorated since the last report.
Previously, the company‘s global supply-demand index was expected to take incremental steps upwards
through 2022, by which time the industry would at long last be close to equilibrium. However, the new
forecasts suggest that the industry now faces being stuck with the current over-supplied situation for several
more years.
―The anticipated re-balancing of the container market looks to have been postponed. That‘s more bad news
for carriers that are facing substantial cost increases as a result of stricter ship fuel standards from 2020,‖ said
Simon Heaney, senior manager, container research at Drewry and editor of the Container Forecaster.
It has been a topsy-turvy year in the container market with demand growth oscillating on a quarterly basis,
from the highs of the first quarter to the lows of the second. Growth returned with a vengeance in the third
quarter, but no-one can tell at this stage how much it was artificially stimulated by fears surrounding the
latest round of tariffs issued by the US and China, or how hard the come down will be in the fourth quarter
without the expedited cargoes.
Drewry rough impact assessment of the latest round of US tariffs imposed last month indicate that eastbound
Transpacific flows could be hit with an opportunity cost of approximately 1 million teu next year.
―That is a similar sum to what we pinned to the trade under our ―medium intensity‖ trade war scenario in the
previous edition,‖ said Heaney. ―It is an unfortunate fact that trade barriers could yet be raised higher with
the prospect of further tit-for-tat measures. In such a fluid situation it is impossible to second-guess where
this will end. With so many moving parts all trade forecasts need to be treated with more caution than usual
as they now have a shorter shelf life and need to be revisited after each breaking news or tweet.‖
On the supply side, greater than expected new ship deliveries, combined with fewer demolitions in the
second quarter prompted Drewry to marginally raise the fleet growth rate forecast for this year. While the
difference between the current and previous forecasts for year-end fleet teu is relatively small at +67,000 teu,
the significance of the upgrade is larger as combined with a more pronounced downgrade for container
volumes supply growth is now expected to exceed that of demand.
Such a scenario has clear negative implications for container shipping lines as without any meaningful
narrowing of the gap between supply and demand they will have to continue to firefight capacity
management on a week to week basis in order to prop up ship utilisation and freight rates.
Drewry‘s outlook for freight rates and carrier profitability in 2018 and 2019 is little changed from earlier
estimates, despite the downward revision of trade forecasts and more bearish outlook for vessel supply.
While the market remains fiercely competitive, there are signs that some aspects of predatory pricing
practices are receding and carrier vessel deployment more disciplined.
[Drewry]
04/10/2018
By Mayuko Tani, Nikkei staff writer
Exports from South America are helping the shipping industry to fend off the effects of the U.S.-China trade
war, the chief of shipping information provider Baltic Exchange said in an interview.
Mark Jackson, CEO of the 274-year-old London-based organization which is wholly owned by Singapore
Exchange, said rates in the bulk freight market were holding firm and goods continued to flow despite the
imposition by Washington and Beijing of tit for tat tariffs. But he conceded that the growing wave of trade
protectionism could disrupt traditional shipping routes.
Jackson told the Nikkei Asian Review in an interview that grain export volume from the U.S. to China had
fallen in reaction to the 25% tariffs imposed on products such as soybeans. Yet exports from South America
have increased, he said. Rates remained solid because the overall volume of cargo remained strong.
"Shipping, because it is a very global marketplace, reacts very fast [to the new rules]," Jackson said. "It is
very hard to contain trade."
Jackson's view is shared by Jayendu Krishna, director of Drewry Maritime Advisors. "Total traded volume
of soybeans, grains and coal, the three largest traded commodities between the U.S. and China, is just about
1% of total global dry bulk trade," Krishna said. "Therefore, the potential for the dry bulk market to get
severely affected due to the trade war is limited."
The Baltic Dry Index, Baltic Exchange's main index for tracking the cost of shipping dry bulk cargo, has
been on a recovery track since it hit the lowest level in its three-decade-plus history in early 2016. Despite a
weak spell in August, things are still looking up.
Industry watchers expect the index to head higher due to a tighter supply of ships coupled with healthy
demand. Maritime research consultancy Drewry sees dry bulk shipping demand growing 2.7% per annum
over the next five years.
A strong global economy has helped the shipping market bounce back from its crisis in 2016. Though
oversupply has not been completely wiped out, Jackson observed that "the amount of new building of ships
is very slow."
Baltic Dry Index
Source: Baltic Exchange
Climate change efforts should focus on ocean-based solutions
Nonetheless, with the trade tensions fueling uncertainty, interest in freight rate information is increasing, he
added. Baltic, started releasing grain freight indexes in July for the new routes from the U.S. Gulf to China,
as well as from South America to China.
Baltic traces its history back to 1744 when sea merchants gathered in a London coffee shop to exchange
news on chartering vessels. Its indexes are used as bench marks for freight or ship charter rates, as settlement
tools in freight futures trading, or simply to understand the health of the shipping market.
Singapore Exchange, or SGX, acquired the operation in November 2016 for 87 million pounds ($108
million at the time). The bourse wanted to cultivate the maritime financial derivatives market. Since then,
the storied London institution has been focusing on Asia expansion.
In the first year after the acquisition, Baltic's individual members -- ship owners, vessel operators,
commodity traders, brokers and so on -- increased by about 300, of which about 100 came from Asia,
Jackson said. Currently, Baltic counts 602 corporate members, with 126 from Asia. It welcomed its first
Vietnamese member in 2018, and Jackson said new members from countries like Indonesia, Malaysia and
Japan have come aboard too.
[Nikkei Asian Review]
04/10/2018
Ambitious and rapid action is needed to reduce climate change and its impacts—and the first broad-scale
assessment of ocean-based solutions shows the focus should be on the oceans.
The study Ocean Solutions to Address Climate Change and Its Effects on Marine Ecosystems, published in
Frontiers in Marine Science, looks at the feasibility of 13 ocean-based measures to reduce atmospheric
carbon dioxide (CO2), counteract ocean warming and/or reduce impacts like ocean acidification and sea-
level rise.
It identifies ocean-based renewable energy as the most promising, and several local marine conservation and
restoration options as 'no-regret measures', that should be scaled-up and implemented immediately, but
concludes all other measures are still too uncertain to recommend without further research. Published in
Frontiers in Marine Science as part of the article collection 'Successes at the Interface of Ocean, Climate and
Humans', the study highlights the trade-offs and governance issues associated with all solutions and
emphasizes that the greatest benefit will come from combining global and local solutions through policy
cooperation.
Current plans to reduce CO2 emissions under the 2015 Paris Agreement are not enough to keep global
temperatures below a 20C increase relative to pre-industrial levels. Despite the major role of oceans in
climate regulation, ocean-based solutions to combat climate change have received relatively little attention
compared to land-based solutions.
"The ocean already removes around 25% of anthropogenic CO2 emissions—and could remove and store
much more," says the study's lead author, Dr. Jean-Pierre Gattuso from the Centre National de la Recherche
Scientifique (CNRS), France. "However little guidance is currently available on which ocean-based
interventions will work best to reduce the scale and impacts of climate change."
Propulsion: Wind-powered ships are making a comeback
To fill this gap, Gattuso and an international team of experts collaborating on The Ocean Solutions Initiative
assessed 13 global and local measures. These fell into four categories: reducing atmospheric CO2
concentrations; increasing the proportion of solar radiation reflected back to space; protecting marine
ecosystems; and manipulating biological and ecological adaptation to climate change impacts.
The team analyzed each measure's potential to reduce three climate-related drivers—ocean warming, ocean
acidification and sea-level rise—as well as its technological readiness, benefits, drawbacks, cost-
effectiveness and governability. They also looked at the potential of each measure to reduce impacts on key
marine ecosystems, namely warm-water coral reefs, mangroves and salt-marshes, seagrass beds and Arctic
habitats, and key ecosystem services, namely fisheries, aquaculture and coastal protection.
A switch to ocean-based renewable energy stood out as having the highest potential for immediately
addressing the causes of climate change. "Not only do offshore wind farms, wave energy and other ocean
renewables have a very large potential to reduce carbon emissions, but they are also cost-effective and ready
to be implemented at a large-scale," says study co-author Dr. Alexandre Magnan from France's Institute for
Sustainable Development and International Relations.
The study also identifies local efforts with moderate effectiveness to reduce ocean acidification and sea-
level rise. "Reducing marine pollution, stopping overexploitation of marine resources, restoring
hydrological flow and protecting marine habitats are all technologically ready and have significant
benefits," says Gattuso. "Restoring and conserving coastal vegetation like mangroves, salt marshes and
seagrass beds to enhance CO2 uptake and reduce further emissions is also already feasible with few
disbenefits."
Other measures were found to have a high potential to address climate-change drivers, but low feasibility.
One potentially large and permanent intervention to consume CO2 and/or neutralize ocean acidity is to add
alkaline materials to the ocean. However, "the feasibility and benefits must be weighed against the financial
costs and environmental impacts of mining or producing vast quantities of alkaline material distributed at
global scales, and the potential impacts on marine life," points out Gattuso.
Large amounts of CO2 could also be removed by fertilizing the ocean with iron to increase the amount of
phytoplankton—but this is difficult to implement and govern. Another approach is to apply foam to the
ocean's surface to enhance reflection of solar radiation. However, the effect would only last as long as the
foam remains in place, just days to months, and would have dramatic impacts on plants and animals.
"Our study shows that all measures involve trade-offs and decisions should consider their relevance in terms
of costs, benefits and ease of governability," says Magnan. "The potential for ocean-based options to address
climate change and its impacts is very high and depends on societies' ability, from local to international
levels, to decide about the right combination of measures."
[Phys.Org / Frontiers in Marine Science]
04/10/2018
A maritime technology from the 1920s is back in fashion.
Credit: The Economist
An oil tanker that ferries nearly 110,000 tonnes of the black stuff between the Middle East and Europe does
not sound like a green ship. But Maersk Pelican is unique among the world‘s biggest cargo ships in that it
does not rely on fossil fuels alone for propulsion. On September 29th it arrived in Saudi Arabia on its first
voyage since the installation of two 30-metre rotor sails.
Coal- and oil-powered cargo ships wiped out wind power in the 19th century. But interest in wind
propulsion, and in rotor sails in particular, is growing as shipping lines seek ways to slash fuel bills. Placed
on a ship‘s decks, these giant rotating cylinders propel it using the ―Magnus effect‖, the force that causes a
spinning ball to curve through the air.
Maersk Pelican with two rotor sails installed. Credit: Joop Klaasman / vesseltracker.com
The concept was demonstrated by Anton Flettner, a German engineer, in the 1920s, but rotor sails failed to
catch on, partly because coal was a cheap alternative. The first ones he made were metal and so heavy that
they slowed ships.
The rotor sails that Norsepower, a Finnish firm, has developed are made of carbon fibre and are far lighter,
says Tuomas Riski, its chief executive. They are also automated, so no extra sailors are needed to operate
them, unlike Flettner‘s version. As well as Maersk Pelican, Norsepower has already fitted them to several
River transport Myanmar: Japan provides US$ 53 million grant for Mandalay port
construction project
other ships, including Estraden, a ferry which operates between the Netherlands and Britain, and Viking
Grace, which sails between Sweden and Finland.
The interest in the sails comes because they can slash fuel bills and emissions, says Tommy Thomassen,
chief technical officer of Maersk Tankers. The Maersk Pelican‘s two rotor sails will cut its fuel bills by 7-
10%, he forecasts; if it added two more that could rise to 15-20%. Such savings help with another priority
for the shipping industry; complying with new climate-change targets. In April the International Maritime
Organisation, a UN agency, agreed to cut by half the global shipping sector‘s carbon emissions from 2008
levels by 2050.
Sails can make serious contributions to that target. Most other technologies (such as adding bulbous bows)
shave only a few percent off fuel bills. Electric batteries cannot store enough energy for long sea voyages.
Upfront costs remain a problem. Norsepower‘s rotor sails cost €1m-2m ($1.15m-2.3m) to install; it takes
five years on average to earn that back in lower fuel bills. Mr Riski hopes to slash that figure to three years
by making the sails more cheaply in China. It would then become worthwhile for charterers, which only
tend to lease ships for under three years, to install them.
Rotor sails are not the only ones about. Modern versions of the sort of sails fitted to conventional ships, as
well as kites attached to the front of the vessel, have also been mooted as energy-saving solutions. But these
are a health-and-safety risk to sailors in bad weather. Wind power may be back in fashion but no one needs
to mount the rigging.
[The Economist]
04/10/2018
On October 3, the Japan International Cooperation Agency (JICA) signed a grant agreement with the
Government of the Republic of the Union of Myanmar in Yangon, to provide grant aid of up to 6.033
billion yen (US$ 53 million] for the development of Mandalay Port.
Source: JICA
Port development: Container port planning faces increasing challenges
The objective of the project is to modernize Mandalay Port in Myanmar‘s second largest city, Mandalay,
which is located in the economic center of the northern region of Myanmar. This will be done through the
construction of berthing facilities and a terminal and the mechanization of cargo handling facilities. This
development will contribute to improvements in the lives of residents in the northern region.
Mandalay Port is one of the most important river ports in Myanmar for domestic water transportation.
Many passenger and cargo vessels travel between the port and Yangon, which is the largest city in the
country and the center of economic growth, and as a base for transportation and goods distribution, the port
supports the lives of people in the northern region. However, the port has no cargo-handling facilities and
uses only the natural riverbank, and therefore water transportation efficiency is extremely poor such that
cargo must be carried manually on wooden planks when crossing from the riverbank to ships.
By providing infrastructure and mechanizing cargo-handling, the project is expected to greatly improve the
efficiency of inland transportation and goods distribution by water in Myanmar by making it possible to
handle up to 200,000 tons of cargo per year, as well as increasing the cargo-handling efficiency per hour by
approximately six times, shortening the ship mooring time by 90 percent or more and in other ways. It is
also expected that this optimization will contribute to the growth of the northern economic zone.
In addition to this project, JICA comprehensively supports the development of transportation
infrastructure, including railways and arterial roads, to extend the growth in Yangon throughout the
country, and contributes to sustainable economic growth in Myanmar as a whole.
[JICA]
04/10/2018
By James Baker
Larger vessel sizes and fewer, longer ship calls put increasing pressure on container terminals. Plans for
future developments must address slowing growth and be flexible enough to accommodate a variety of
scenarios
The most competitive box ports of the future will be those that accommodate developments in container
shipping effectively, while successfully adapting to developments in the hinterland, according to a new
report.
The Container Port Strategy report, from the International Transport Forum (ITF) at the Organisation for
Economic Cooperation and Development (OECD), found that effective port planning required a thorough
understanding of the way the needs of shippers were likely to develop in the future. ―This sounds self-
evident, but all too often port planners and policy makers have little knowledge of the main exporters and
importers using the port, and the related cargo flows,‖ the report said.
Port planning has often been mainly a question of timing when to phase in expansions, with projections
based on the extrapolation of past trends, but this model‘s time has ended, according to the report, which is
based on a round-table held in Buenos Aires, Argentina, in 2017. ―Some ports have already developed
long-term planning frameworks that include scenarios in which cargo volumes decline. Conversely,
structural reforms can drive a step-change increase in the volume of trade.‖
The increasing size of containerships and the volumes of cargo that need handling has put huge stress on
Port development Argentina: Buenos Aires must secure capacity
equipment and labour and led to high idling rates between ship arrivals. This in turn increases the need for
flexibility in port labour forces and for pooling arrangements between terminals. Larger ships also require
deeper and larger access channels, longer and stronger quay walls and bigger cranes. Larger yard capacity
is required to deal with peak traffic and to provide buffer capacity in the connection with hinterland
transport.
―This requires a lot of space,‖ the report said. ―Terminal operators, port authorities and hinterland transport
companies have to respond and often taxpayers cover the cost. Shipping companies reap benefits from the
larger ships but are not responsible for many of the associated costs. Consequently, the total supply chain
costs of larger ships may surpass the cost savings for shipping companies.‖
Increasing ship size has accelerated the trend for concentration among shipping lines, with a combination
of horizontal and vertical integration that could lead to a freight transport system with very limited choice
for shippers, the report warned. ―This challenges the regulatory capacity of even the largest economies to
address potential issues of abuse of market power. A review of the legal frameworks that provide antitrust
exemption for conferences and alliances appears due.‖
In its recommendations, the ITF port planning should be driven by demand and flexible. ―Port planning
should consider a full range of potential scenarios for trade and containerisation,‖ it said. ―Uncertainty
implies that capacity expansion should be designed to be as modular and flexible as possible.‖
Public policy tended to focus on developing large hub ports, often seeking to expand transhipment. A
thorough assessment of costs and benefits for transhipment ports was warranted, considering the small
transhipment margins and the large costs of transhipment ports that are covered, usually, by the public
purse.
―Not all ports can be hubs and feedering is often more efficient,‖ the ITF said. ―As shipping becomes
increasingly concentrated around a smaller number of hubs, feedering will become more prevalent
worldwide. Relocation of container ports to non-urban areas can be a viable option, but optimal decisions
are very much case-specific and require a solid analysis of market prospects and the costs and benefits
involved.‖
[Lloyd‘s Loading List]
03/10/2018
An immediate concern for the Port of Buenos Aires is to secure container handling capacity, considering
the 2019 expiration of concessions of the three container terminals.
Port of Buenos Aires: Credit: ITF
This is the declaration of the International Transport Forum (ITF) in its discussion paper on The Container
Port of Buenos Aires in the Mega-Ship Era released today. The paper finds that bigger ships, industry
consolidation and increased trade will pose numerous challenges for the port.
Port authority AGP is planning a land reclamation project to transform some of the current finger piers into
linear quays able to handle the largest container vessels. "This new port layout would make it possible to
accommodate 14 000 TEU ships," said ITF. AGP also plan to "move from three to one container terminal,
which would increase terminal size," it said.
Inadequate analysis?
It is difficult to assess how current infrastructure investments might improve the freight transport network,
said ITF, because while major government infrastructure investments that should improve the freight
transport system connecting the ports to their hinterlands have been announced, it has not seen analysis by
the government identifying the largest bottlenecks, the main current and potential freight flows and where
it would make most sense to improve networks.
It warned the Paseo del Bajo project that will connect the Buenos Aires-La Plata and Illia highways, whilst
creating new green spaces in the El Bajo area of Buenos Aires to relieve congestion may have mixed
results.
As part of the works associated with the project, the "government is putting some key port land up for sale:
the railway sidings at Empalme Norte (Retiro) and practically all of the customs warehouses adjacent to the
container handling facilities in Puerto Nuevo," explained ITF. "This might complicate railway access and
detract from value added logistics services in the port: it takes rear space away from the port necessary to
keep the port operational."
Capability concerns
In looking at how well policies are adapted to future requirements, ITF found that AGP's proposed depth
limit of 11m would impose limits on the extent to which megaships could be loaded when calling Buenos
Port development Nigeria: New report reveals inefficiency, corruption, red tape, illegal
charges, delays and high costs
Aires.
Dredging the River Plate to the considered maximum depth of 12.8m would make it possible to have calls
from ships with capacity up to 20 000 TEUs but only as long as these are not loaded beyond 25% capacity.
Source: ITF: The Container Port of Buenos Aires in the Mega-Ship Era [Oct 2018]
The proposal for restructuring of the container terminals would increase yard space, but only by 14
hectares to 91 hectares, which may not provide the appropriate buffer capacity needed for handling larger
ships.
If container volumes grow by a factor of three to four as predicted by ITF's freight model, there will be a
moment in the next three decades when demand will exceed projected container terminal capacity.
In the short term there certainly is not a lack of container port capacity – although most of this capacity
might not be suitable for the ship sizes that will soon come to the East Coast of South America, found the
paper. Currently available capacity (almost 3m teu handling capacity in the Buenos Aires region) is around
double the volume handled. If all of the possible extensions and announced plans would be realised, this
capacity would even rise to almost 4m teu.
The proposal for Puerto Nuevo is framed as a solution for the long term, but it is most likely only a solution
for the short – and possibly medium – term, the paper concluded.
[Port Strategy]
03/10/2018
Operators, users of Nigerian ports and industry players are increasingly faced with bureaucratic red tape,
constant delays and illegal charges leading to costly operations, a new report has found.
Source: LCCI: Costs of Maritime Port Challenges in Nigeria [Sep 2018]
The Nigerian economy is currently losing about N600bn in customs revenue, an estimated $10bn for
non-oil export and about N2.5 trillion corporate revenue in the ports industry on an annual basis, shows the
report Costs of Maritime Port Challenges in Nigeria by the Lagos Chamber of Commerce and Industry
(LCCI) and other members of the Organised Private Sector (OPS).
Capacity utilisation stands at 38-40% and approximately 40% of businesses located around the ports
communities have either relocated to other areas, scaled down operations or completely closed down.
The report noted that significant efforts were made in reforming the Nigeria‘s maritime sector through the
partial privatisation of the ports in the mid-2000s and other subsequent interventions, however these
initiatives have not been as successful as hoped.
Source: LCCI: Costs of Maritime Port Challenges in Nigeria [Sep 2018]
Potential solutions
To reduce port congestion the report suggested following the Port of Rotterdam‘s example in allocating
different terminals to the ships arriving based on their size and number of containers
carried, deploying efficient cranes to unload vessels with high capacity and expanding the use of inland
port facilities. The report also noted that Singapore created the Maritime Innovation and Technology
(MINT) to address congestion and other port issues.
Looking at faster and convenient port clearance processes and procedures for efficiency, the report pointed
out the Vessel Traffic Information System (VTIS) used by the Singapore Maritime Port Authority and
pinpointing the ports of Singapore and Shanghai, noted the benefits of government and private sector
participation in providing needed infrastructure and maintenance, including road networks.
To tackle excess government agencies and charges, the report acknowledged Nigeria‘s need to investigate
―illegal excesses‖ to encourage ease of business, as it currently has more than 12 agencies.
Global Maritime Forum 2018: Senior maritime stakeholders deem industry not prepared to
deal with global issues
Technology and innovations can be used to cut down on corruption and other forms of illegality, said the
report. ―The implementation of the Nigerian Single Window trade is very crucial at this point is enhancing
service deliveries across various port activities.‖ The Single Window provides access to all resources and
standardised services from the different Government agencies. ―This would further eradicate the unlawful
charges and hitches associated with these agencies,‖ added the report.
The Creation of a National Trade Data Centre also remains critical in integrating the various processes and
value chain management within the ports to achieve increased efficiency and adopt global business
practice, said the report.
[Port Strategy]
03/10/2018
• Economic issues dominate maritime agenda; impact of future ‗global economic crisis‘ ranked as most
severe in 10-year outlook.
• ‗Cyber-attacks and data theft‘, ‗energy price fluctuations‘, and ‗changing trading patterns‘ most likely to
occur. Less concern among stakeholders of ‗increasing influence of non-maritime disruptors‘.
• Viable solutions to decarbonization are still perceived as in the future.
Senior stakeholders believe that the global maritime industry is not prepared to deal with major issues that
are likely to impact it over the next ten years. This is according to the Global Maritime Issues Monitor
2018, published today by the Global Maritime Forum, global insurance broker and risk adviser Marsh, and
the International Union of Marine Insurance (IUMI).
The first industry report of its kind, the Global Maritime Issues Monitor 2018 examines the impact and
likelihood of 17 major issues based on research among senior maritime stakeholders across over 50
countries globally. According to the research, the maritime industry does not appear to be prepared for any
of these issues. Worryingly, this is amplified by the fact that the issues the industry are least prepared for
are the ones deemed to have potentially the biggest impact on the sector.
―The difference between a risk and an opportunity is how soon you discover it. The Issues Monitor shows
that there is a need for a greater awareness of the long-term forces shaping our decision-making and the
Global Maritime Issues Monitor can in this perspective be seen as a modest contribution to a thorough
understanding of the current state of affairs,‖ says Peter Stokes, Chairman of Global Maritime Forum.
The five issues that the maritime industry appears to be least prepared for are ‗cyber-attacks and data theft,
‗global economic crisis‘, ‗geopolitical tension‘, ‗air pollution‘ and ‗governance failure‘.
Source: Global Maritime Issues Monitor 2018 [Oct 2018]
Source: Global Maritime Issues Monitor 2018 [Oct 2018]
Top issue: Cyber-attacks and data theft
‗Cyber-attacks and data theft‘ appear to be the maritime industry‘s Achilles‘ heel. In addition to being
ranked as the top issue that the industry is least prepared for, executives believe it has the highest likelihood
of occurring and is only surpassed by a ‗global economic crisis‘ and energy price fluctuations‘ in terms of
impact.
―Emerging digital technologies are challenging conventional business models and are creating new
opportunities for the global maritime industry. But, along with its transformative power, this digitalization
is creating rapidly evolving risks such as cyber-attacks and data theft. It is worrying that, despite recent
high-profile attacks, the industry is failing to get to grips with cyber risk. By taking a more strategic
approach, firms are better positioned to capitalize on these opportunities, while protecting their people and
assets from digital threats,‖ says Marcus Baker, Chairman of Global Marine Practice at Marsh.
Apart from ‗cyber-attacks and data theft‘, economic issues such as ‗global economic crisis‘, ‗energy price
fluctuations‘, and ‗changing trading patterns‘ dominate among the top issues of the maritime industry.
Deep dive on digitalization: No fear of non-maritime disruptors
According to the research, the ‗increasing influence of non-maritime disruptors‘ does not seem to keep
senior maritime stakeholders awake at night. In the Issues Monitor‘s deep dive on digitalization, the issue
Oceans: Commercial fishing to be banned across much of the Arctic
is ranked number six out of seven both in impact and likelihood, placing higher only than ‗3D printing‘. It
is also the issue for which the maritime industry feels the least prepared.
This does not reflect the growing influence of data-based companies and the increasing power of data in
our society. Whether barriers to entry into the maritime industry are simply too big or the profit margins
too low to attract new entrants, or whether key maritime stakeholders are not sufficiently informed on the
potential risks involved, is an open question.
Deep dive on decarbonization: No quick fix in sight
Reducing greenhouse gas emissions is a major challenge for the maritime industry; viable alternatives to
traditional fuels and propulsion technologies are required to succeed in this. In the Issues Monitor‘s deep
dive on decarbonization, ‗non-fossil fuels‘ and ‗alternative propulsion technologies‘ – both potential
pathways towards zero-emission vessels – are perceived to be less significant in impact and likelihood over
the next 10 years. This is further confirmed by the industry‘s low ranking of its perceived preparedness for
both issues: ‗non-fossil fuels‘ were given the lowest preparedness score of the section, with ‗alternative
propulsion technologies‘ ranking in third lowest place.
―The development of non-fossil fuels and alternative propulsion technologies is a prerequisite if the
maritime industry is going to achieve a reduction in greenhouse gas emissions by at least 50% by 2050 as
stated in the IMO‘s initial climate change strategy. It is one of the industry‘s biggest challenges in our
lifetime and will require innovation, collaboration and investment from all stakeholders,‖says Richard
Turner, President of IUMI.
[Global Maritime Forum]
03/10/2018
By Fiona Harvey, Environment correspondent
Commercial fishing will be banned across much of the Arctic under a new agreement signed on
Wednesday in Greenland, closing down access to a vast area of sea that is newly opening up under climate
change.
The moratorium on Arctic fishing will safeguard an area about the size of the Mediterranean for at least the
next 16 years, as warming temperatures allow summer navigation across what was previously ice.
Sea ice in the Arctic reached its annual minimum last week, with what polar scientists confirmed was the
joint sixth-lowest extent of ice on record. This year sits with 2008 and 2010 in the rankings of ice
minimums, showing a clear trend of diminishing summer ice cover and thickness, with record lows in the
last decade and reports of thick multi-year ice showing new vulnerability to break-up.
No fishing takes place there currently, but large ships are starting to explore the area. Maersk, the Danish
shipping company, in August sent the first container vessel through the previously frozen route, starting
from the Russian city of Vladivostok and arriving safely with its cargo of frozen fish in St Petersburg after
a 37-day voyage.
The Arctic is likely to become more attractive to commercial fishing fleets in future years, as climate
change is causing major fish stocks including cod and halibut to move further north as lower latitudes
warm, and overfishing in traditional grounds makes potential new areas appealing.
Seven key trends shaping maritime transport
Nine nations – the US, Russia, Canada, Norway, Denmark, Iceland, Japan, South Korea and China – plus
the EU signed the Central Arctic Ocean agreement at a ceremony in Greenland, following several years of
talks. The countries will also begin a joint programme for scientific monitoring of the 2.8m sq km, and the
moratorium can be extended in five-year increments dependent on the results.
David Balton, former US ambassador for oceans and fisheries, who helped negotiate the pact, said the
agreement would change international oversight of the Arctic and help people living there. ―There has been
a lot of work in the last decade to try to strengthen various regimes of governance and to improve
international cooperation about the Arctic,‖ he told the Pew Charitable Trusts NGO. ―Is there more that we
need to do to improve Arctic governance? That will be a key question.‖
Steve Ganey, senior director for land and oceans programmes at Pew, said: ―As new open waters emerge at
the top of the world, international leaders have agreed that it would be risky and unwise to allow
commercial fisheries to operate in the Arctic before scientists have established a baseline for monitoring
the health of the region‘s marine ecosystem. By using science-based measures to guide decision-making,
the agreement will go a long way toward conserving this unique environment.‖
The prospect of oil drilling in the Arctic has alarmed campaigners in recent years. Current governance of
the Arctic is not well set out in international law, since until recently it was largely academic. The new
moratorium is one of the first steps to bring legal protection to the area‘s fragile environment.
For those countries with land borders in the Arctic circle, and therefore stakes in its undersea resources,
one hope behind the agreement will be to cement their claim to any natural resources that one day open up.
However, the effect of the ban is likely to be, not only preventing the exploitation of fish stocks, but also
the pollution and damage that would accompany vessels.
[The Guardian
03/10/2018
Seaborne trade expanded by four percent in 2017, the fastest growth in five years, and UNCTAD forecasts
similar growth this year.
According the UNCTAD Review of Maritime Transport 2018 volumes across all segments are set to grow
in 2018, with containerized and dry bulk commodities expected to record the fastest growth at the expense
of tanker volumes. UNCTAD projects an average annual growth rate in total volumes of 3.8 percent up to
2023.
After five years of decelerating growth, 2017 saw a small pick-up in world fleet expansion. During the
year, a total of 42 million gross tons were added to global tonnage, equivalent to a 3.3 percent growth rate.
The UNCTAD Review of Maritime Transport 2018 identifies seven key trends that are currently
redefining the maritime transport landscape and shaping the sector‘s outlook:
1) Protectionism
On the demand side, the uncertainty arising from wide-ranging geopolitical, economic and trade policy
risks as well as some structural shifts, constitutes a drag on maritime trade. An immediate concern are the
inward-looking policies and rising protectionist sentiment that could undermine global economic growth,
restrict flows and shift trade patterns.
UNCTAD Review of Maritime Transport 2018
2) Digitalization, e-commerce and the implementation of the Belt and Road Initiative
The unfolding effects of technological advances and China‘s ambitious reordering of global trade
infrastructure will entail important implications for shipping and maritime trade. The Belt and Road
Initiative and growing e-commerce have the potential to boost seaborne trade volumes, while the
digitalization of maritime transport will help the industry respond to the increased demand with enhanced
efficiency.
3) Excessive new capacity
From the supply-side perspective, overly optimistic carriers competing for market share may order
excessive new capacity, leading to worsened shipping market conditions. This, in turn, will upset the
supply and demand balance and have repercussions on freight-rate levels and volatility, transport costs as
well as earnings.
4) Consolidation
Liner shipping consolidation through mergers and alliances has been on the rise over recent years in
response to lower demand levels and oversupplied shipping capacity dominated by mega container vessels.
The way this affects competition, and the potential for market power abuse by large shipping lines as well
as the related impact on smaller players, remains a concern.
5) The relationship between ports and container shipping lines
Alliance restructuring, and larger vessel deployment is also redefining the relationship between ports and
container shipping lines. Competition authorities and maritime transport regulators should also analyze the
impact of market concentration and alliance deployment on the relationship between ports and carriers.
Areas of interest span the selection of ports-of-call, the configuration of liner shipping networks, the
distribution of costs and benefits between container shipping and ports, and approaches to container
terminal concessions.
6) Scale
The value of shipping can no longer be determined by scale alone. The ability of the sector to leverage
relevant technological advances is as increasingly important.
7) Climate change
Efforts to curb the carbon footprint and improve the environmental performance of international shipping
remain high on the international agenda. The initial strategy adopted in April 2018 by the IMO to reduce
annual greenhouse gas emissions from ships by at least 50 percent by 2050, compared to 2008, is a
particularly important development. On the issue of air pollution, the global limit of 0.5 percent on sulfur
in fuel oil will come into effect on January 1, 2020. To ensure consistent implementation of the global cap
on sulfur, it will be important for shipowners and operators to continue to consider and adopt various
strategies, including installing scrubbers and switching to liquefied natural gas and other low-sulfur fuels.
[The Maritime Executive]
03/10/2018
Seaborne trade expanded by a healthy 4% in 2017, the fastest growth in five years, while UNCTAD
forecasts similar growth this year, according to its Review of Maritime Transport 2018. Volumes across all
segments are set to grow in 2018, with containerized and dry bulk commodities expected to record the
fastest growth at the expense of tanker volumes.
World seaborne trade in 2017
Source: UNCTAD Review of Maritime Transport 2018 [Oct 2018]
The UNCTAD Review of Maritime Transport 2018, marking its 50th year of publication, was launched at
the Global Maritime Forum‘s Annual Summit taking place in Hong Kong on 3–4 October 2018.
An improved balance between demand and supply has lifted shipping rates to boost earnings and profits.
Freight-rate levels improved significantly in 2017 (except in the tanker market), supported by stronger
global demand, more manageable fleet capacity growth and overall healthier market conditions.
Supply-demand improvements, namely in the container and dry bulk shipping segments, are expected to
continue in 2018. Freight rates may benefit accordingly, although supply-side capacity management and
deployment remain key. UNCTAD projects an average annual growth rate in total volumes of 3.8% up to
2023.
On the supply side, after five years of decelerating growth, 2017 saw a small pick-up in world fleet
expansion. During the year, a total of 42 million gross tons were added to global tonnage, equivalent to a
modest 3.3% growth rate.
Looking at the shipping value chain, Germany remained the largest containership-owning country with a
market share of 20% at the beginning of 2018, although it lost some ground in 2017. In contrast, owners
from Greece, China and Canada expanded their containership-owning market shares.
Source: UNCTAD Review of Maritime Transport 2018 [Oct 2018]
Meanwhile, in 2018, the Marshall Islands emerged as the second largest registry, after Panama and ahead
of Liberia. More than 90% of shipbuilding activity in 2017 occurred in China, the Republic of Korea, and
Japan, while 79% of ship demolitions took place in South Asia, notably India, Bangladesh and Pakistan.
Key drivers of change
Liner shipping consolidation, technological advances, and climate change policy are key drivers of change
in global shipping, the report says.
Consolidation activity in liner shipping continued unabated: the liner shipping industry witnessed further
consolidation through mergers and acquisitions and global alliance restructuring.
As of January 2018, the Top 15 shipping lines accounted for 70.3% of all capacity. Their share has
increased further with the completion of the operational integration of the new mergers in 2018, with the
Top 10 shipping lines controlling almost 70% of fleet capacity as of June 2018.
Container shipping consolidation
Source: UNCTAD Review of Maritime Transport 2018 [Oct 2018]
Alphaliner top 15 container carriers
(Operated fleets 03 Oct 2018)
Source: Alphaliner TOP 100 [03 Oct 2018]
Three global liner shipping alliances dominate capacity deployed on the three major East-West container
routes, collectively accounting for 93% of deployed capacity. Alliance members continue to compete on
price while operational efficiency and capacity utilization gains are helping to maintain low freight-rate
levels. By joining forces and forming alliances, carriers have strengthened their bargaining power vis-à-vis
the seaports when negotiating port calls and terminal operations.
Growing consolidation can reinforce market power, potentially leading to decreased supply and service
quality, and higher prices. Some of these negative outcomes may already be in effect. For example, in
2017–2018, the number of operators decreased in several small island developing States and structurally
weak developing countries.
―There is a need to assess the implications of mergers and alliances and of vertical integration within the
industry, and to address any potential negative effects. This will require the commitment of all relevant
parties, notably national competition authorities, container lines, shippers and ports,‖ Shamika N.
Sirimanne, Director of UNCTAD‘s Division on Technology and Logistics, said.
Technological advances
Port traffic volumes picked up speed: global port activity and cargo handling expanded rapidly in 2017,
following two years of weak performance. UNCTAD estimates that 752 million twenty-foot equivalent
units were moved at container ports worldwide in 2017. The outlook for global port handling activity
remains positive supported by projected economic growth and port infrastructure development plans.
Port operations, performance and bargaining power continued to be defined by mega-ship deployment and
alliance restructuring: Liner shipping alliances and vessel upsizing have made the relationship between
container shipping lines and ports more complex and triggered new dynamics where shipping lines have a
stronger bargaining power and influence.
Source: International Transport Forum (ITF): Container Ship Size and Port Relocation [Sep 2018]
Source: UNCTAD Review of Maritime Transport 2018 [Oct 2018]
Increases in the size of vessels and the rise of mega-alliances have heightened the requirements for ports to
adapt. While liner shipping networks seem to have benefited from efficiency gains arising from
consolidation and alliance restructuring, for ports, the benefits did not evolve at the same pace. This
dynamic is further complicated by the shipping lines often being involved in port operations which in turn
could redefine approaches to terminal concessions.
The report says that global ports and terminals need to track and measure performance as port performance
metrics enable sound strategic port planning, investment and decision-making.
Technological advances in the shipping industry, such as blockchain applications, cargo and vessel
tracking, autonomous ships, and the Internet of Things, hold opportunities for the global shipping industry.
However, there is still uncertainty within the maritime transport industry regarding possible safety, security
and cybersecurity incidents, as well as concern about negative effects on the jobs of seafarers, most of
whom come from developing countries.
The climate change agenda remains a priority. The shipping industry must reduce greenhouse gas
emissions, the report says, welcoming among international efforts the April 2018 adoption by the
International Maritime Organization (IMO) of an initial strategy aimed at reducing by at least half the total
annual emissions from ships by 2050 compared to 2008.
The IMO strategy identifies potential short-, mid- and long-term further measures with possible timelines,
and their impacts on States, highlighting the need to pay attention to the needs of developing countries,
especially small island developing States and least developed countries.
Depending on the outcome of negotiations and the specific design of any future instrument, it will be
Market consolidation in container shipping: What next?
important to assess the related potential implications for carriers, shippers, operating and transport costs as
well as the cost of trade. It will also be important to assess the benefits associated with these measures,
including market-based instruments in shipping and how these could be directed to address the maritime
transport and logistics challenges facing developing countries, the report says.
[UNCTAD / Alphaliner / ITF]
03/10/2018
Over the past two years, a wave of market consolidation has transformed the global container shipping
industry, leading to mergers and acquisitions between container lines, a reshuffling of shipping alliances
and the expansion of shipping companies into port operations. There is potential for more consolidation,
which raises the question as to the implications for market concentration levels, and whether the industry is
becoming an oligopoly on certain routes.
Consolidation activity in 2016–2018 reflects the industry‘s efforts to cope with the difficult market
conditions faced since the 2008 global financial crisis. For many years, container shipping has struggled
with low freight rates, dwindling earnings and poor financial returns.
There are clearly two sides to the container market consolidation story. By consolidating and joining
alliances, container lines can expect to reduce costs, better manage ship capacity and enhance efficiency.
These, in turn, benefit shippers, if on a given route the savings achieved by container lines translate into
lower rates and improved service offerings. On the other hand, shippers, trade and ports can be negatively
affected, if on a given route, consolidation
results in reduced competition, constrained supply, market power abuse, and higher rates and prices. These
trends call for systematic and regular monitoring and assessment of consolidation trends in container
shipping.
Growing container shipping market consolidation
Alphaliner top 15 container carriers
(Operated fleets 03 Oct 2018)
Source: Alphaliner
Since 2016, the global container shipping industry, which handles about 60 per cent of seaborne
merchandise trade in terms of value, witnessed a series of developments leading to major market
consolidation. 1 Container lines concluded various mergers and acquisitions and formed larger strategic
shipping alliances – groupings where member container lines cooperate on strategic issues. This
consolidation activity resulted in greater market concentration, with a handful of container lines
dominating the market. As of January 2018, the top 15 container lines accounted for just over 70 per cent of
all container ship capacity.
1 This policy brief draws mainly upon the information, data and analysis reported in the UNCTAD
publication Review of Maritime Transport 2018. Relevant references and sources are available at
http://unctad.org/RMT.
Six months later, in June, the top 10 controlled almost 70 per cent of capacity, reflecting the completed
operational integration of the new mergers.
Between 2004 and 2018, the number of companies providing services per country declined by 38 per cent
on average. In this context and given the potential for more consolidation in the future, the critical issue is
whether the container shipping industry is moving towards oligopolistic markets.
What drives container shipping consolidation and new alliances?
The industry experienced years of no merger and acquisition activity after intensified consolidation in the
early 2000s. The new wave of consolidation observed since 2016 was a means for the container shipping
industry to cope with the depressed market conditions and poor financial returns that had persisted since
the 2008 financial crisis. Over the past decade, the industry has struggled with a chronic supply and
demand imbalance that undermined profitability, reduced freight rates and compressed earnings. Weaker
global trade and decreased demand for ships coincided with an overcapacity in ship supply. The prevailing
supply and demand mismatch was further amplified by the arrival of very large container ships that had
been ordered years earlier. The 2016 bankruptcy of the container line Hanjin (Republic of Korea)
contributed to the trend towards consolidation.
Mergers and acquisitions and alliances: Mega deals
In 2016, the shipping line CMA CGM acquired American President Lines, China Shipping Container
Lines merged with China Ocean Shipping Company and Hanjin filed for bankruptcy. Acquisitions
concluded in 2017 include the Hapag Lloyd and United Arab Shipping Company merger in May, the
Maersk–Hamburg Süd sale and purchase agreement signed in March, as well as the joint venture between
the three largest Japanese lines in July – Nippon Yusen Kabushiki Kaisha, Mitsui Osaka Shosen Kaisha
Lines and Kawasaki Kisen Kaisha.
Beyond mergers and acquisitions, the industry has also undergone a shift by reshuffling existing alliances
and creating new ones. Alliances allow container lines to participate as global players and reduce operating
costs through asset sharing. While these cooperation arrangements have been a fixture of container
shipping for many years, the scale and extent of the restructuring of late is unprecedented. The leading
container lines joined forces in three global alliances, down from four at the beginning of 2017. The three
global alliances dominate capacity deployed on the major East–West container routes.
Consolidation and alliances: Implications for shippers
By consolidating and joining alliances, container lines can improve rates, earnings and financial returns.
This becomes possible as container lines are able to achieve the following: combine operations, improve
supply management and fleet utilization, pool cargo, leverage economies of scale, reduce operating costs
and share resources and networks. By increasing their size, container lines can offer a wider range of
services and invest in technological upgrading.
Container lines that are not members of alliances will find it increasingly difficult to compete. Some argue
that they will be forced to join alliances with one of the major strategic players. Others contend that some
independent container lines will continue to operate in niche markets. Evidence suggests that smaller
container lines operating in niche markets are already losing ground to mega alliances.
Consolidation offers certain benefits for shippers as well. These include less fluctuation in freight rates,
more efficient and extensive services offered by container lines and lower rates and prices if cost savings
made by the lines are effectively passed on to shippers.
Shippers can also benefit from alliances that allow for stronger partnerships among container lines that
enable preventive measures to protect the industry, including shippers. This was the case, for instance, with
an alliance that put in place an emergency fund for its members in the event of a bankruptcy.
A priority for shippers remains their continued access to frequent and varied container-shipping services,
as well as the ability to choose from a selection of container lines. In this respect, the United Nations
Conference on Trade and Development (UNCTAD) finds that the average number of companies providing
services per country increased between May 2017 and May 2018, thereby offsetting the effect of takeovers
and mergers, although the long-term trend has been a continuous reduction in the number of carriers over
the years. In particular, the number of operators servicing several small island developing States has
continued to decline.
Ports of call experience changing relationship with carriers
Consolidation and the rise of mega alliances entails some important implications for ports as well.
Alliances have altered the relationship between container lines and ports and have triggered new dynamics.
First, the lines have stronger bargaining power and influence. Ports may be negatively affected, with some
potentially being left out or losing their market share. The stakes are high for terminal operators, as a port
call by alliance members using larger vessels can generate significant port volumes and business. For
example, Port Klang, Malaysia, handled less cargo
in 2017, as alliance members limited their calls at the port. Meanwhile, the ports of Singapore and Tanjung
Pelepas, Malaysia, benefited from additional visits by ships, following the decision by alliance members to
use these two ports as pivotal ports of call. Such trends would be more detrimental for certain secondary
ports with relatively lower volumes and weaker bargaining power. By reducing the number of port calls,
container shipping connectivity at the country level could be undermined, while shippers could be required
to redefine their supply chains.
Second, a process of vertical integration, whereby container lines invest in ports and terminals, has been
observed. This adds complexity to the relationship between container lines and ports and could have some
implications for, among others, approaches to terminal concessions.
With container lines increasingly requiring fewer, but larger terminals in ports, consolidation in terms of
port calls and control of terminals through vertical integration will probably increase further.
Leading 20 global container ports, 2017
Source: UNCTAD Review of Maritime Transport 2018 [Oct 2018]
Some observers expect to see increased cooperation between neighbouring ports, as in the case of Seattle
and Tacoma, United States of America. More mergers and acquisitions in port terminals, such as APM
Terminals‘ takeover of the Spanish Group TCB and Yilport‘s purchase of the Portuguese group Tertir, are
also expected.
Policy implications: Regular oversight, monitoring and impact assessment
Current market concentration levels suggest a market structure that is more representative of a loose
oligopoly. With container shipping consolidation activity likely to continue, there is a concern that markets
will become more concentrated and result in reduced competition, constrained supply, market power abuse
and higher rates and prices.
Relevant regulatory and competition authorities need to regularly monitor container market concentration
levels and the potential for market power abuse by large container lines. They should investigate the
related impact on smaller players, as well as potential implications in terms of freight rates and other costs
to shippers and trade. In this respect, the Intergovernmental Group of Experts on Competition Law and
Policy of UNCTAD at its seventeenth session, held in Geneva, Switzerland, in July 2018, called upon
UNCTAD to continue its analytical work on international maritime transport, including monitoring and
analysing the effects of cooperative arrangements and mergers not only on freight rates but also on the
frequency, efficiency, reliability and quality of shipping services.
There is a need to assess the implications of mergers and alliances and of vertical integration within the
industry, and to address any potential negative effects. This will require the commitment of all relevant
parties, notably national competition authorities, container lines, shippers and ports. In assessing the
Container Shipping: Shippers are being 'left in the dark' as carriers look to recover IMO 2020
costs
impact of vertical integration, areas of focus should include selection of ports of call, configuration of
container shipping networks, distribution of costs and benefits between container lines and ports, and
approaches to container terminal concessions, as container lines tend to also have stakes in terminal
operations.
[UNCTAD]
03/10/2018
By Mike Wackett
There has been insufficient mainstream publicity on the IMO‘s 2020 global emissions regulation for
shipping, and a lack of transparency by container lines on their recovery strategies.
These are the worrying conclusions of a review by maritime consultant Alphaliner and a shipper survey by
Drewry Supply Chain Advisors.
It has been estimated that the cost of compliance with the IMO‘s 0.5% sulphur cap on fuel from 1 January
2020 could be a $15bn annual bill for the liner industry – each Asia to North Europe round trip costing
carriers an extra $1m, for example. Recent attempts by Maersk Line, MSC and CMA CGM to outline
bunker surcharge policies have not gone down well with shippers who have claimed the proposals are
unjustified and an excuse for hiking freight rates.
Both the 2M partners plan to bring the new surcharge mechanisms into effect on 1 January 2019, a year
before the IMO regulations become law. Taking Maersk‘s proposals as an example, based on the current
price of heavy fuel oil at $450 per ton, its BAF today would be $270 per teu.
Alphaliner said: ―A longstanding criticism from shippers is that the carriers‘ methods of calculating BAF
remain non-transparent, lack uniformity and could involve an element of revenue generation, rather than
serving only to recoup actual bunkers costs and help carriers cope with unexpected fuel price fluctuations.‖
It added that current practices ―have not helped in dispelling shippers‘ concerns‖, noting that Maersk‘s
existing bunker surcharge tariff ―does not accurately reflect actual fuel costs‖, a point the consultant said
that had been conceded by the carrier.
Accepting that BAF calculations ―will remain highly complex and individual carriers will have different
approaches on how to calculate the surcharge‖, Alphaliner said carriers should incorporate ―all of the
components‖ that affect their fuel costs to appease shipper concerns.
Some of the many questions that have arisen from the carriers‘ BAF proposals include how savings from
the use of scrubbers – enabling ships to continue to burn cheaper heavy fuel oil by onboard refining – on
some vessels will be passed on to shippers, and how will trade balance changes be reflected?
And a survey of shippers, BCOs and freight forwarders by Drewry found that as well as a lack of
transparency from carriers, there was ―very poor awareness and understanding of the new regulations‖.
Indeed, about one-third of the survey respondents admitted a lack of understanding of the forthcoming
IMO emission regulations.
Container shipping: Asian territories retain unassailable lead in connectivity
Source: Drewry Supply Chain Advisors - IMO 2020 Global Emissions Regulation Survey Sept 2018
―The level of uncertainty today as to the total cost impact is so high that nobody is able to provide a
confident forecast of the cost of compliance; the only certainty is that the extra cost will run into billions of
dollars globally come 2020,‖ said Drewry.
Describing the IMO‘s low-sulphur cap as a ―very significant, industry-wide, change event‖, Drewry‘s
Philip Damas added: ―Given the scale of the extra costs triggered by the new regulation, and the carriers‘
expectations that their pricing and fuel charge mechanism with customers must be restructured, there is a
need for carriers to address the transparency concerns expressed by their customers.‖
[The Loadstar]
03/10/2018
China remained the trading nation best connected to others by sea in 2018 according to UNCTAD‘s latest
Liner Shipping Connectivity Index (LSCI), released alongside the Review of Maritime Transport 2018.
The country‘s LSCI number has increased by 88% since UNCTAD first compiled the index in 2004.
Level of maritime connectivity, 2018
Note: For the liner shipping connectivity index of each country, see http://stats.unctad.org/lsci
Source: UNCTAD secretariat calculations, based on liner shipping connectivity index
The best-connected territories for seaborne trade were all in Asia, with Singapore (2), Republic of Korea
(3), Hong Kong (China) (4), and Malaysia (5) rounding out the Top 5, each with a score of more than 100
according to the index‘s metrics.
At the other end of the table, the worst-connected territories, meaning trade in shipped goods remained
problematic with knock-on economic effects, were Norfolk Island, Christmas Island, Cayman Islands,
Bermuda and Tuvalu. The Top 5 territories that increased their score in the index in 2018 compared to the
year before did so by the following percentage growth rates.
• United Arab Emirates (179%)
• Maldives (125%)
• Mauritania (77%)
• Eritrea (73%)
• the Federated States of Micronesia (69%)
By contrast, the following economies experienced the sharpest percentage decreases in the 2018 index as
compared to 2017:
Terminal operators: Ethics and transparency of concession awards and operations under the
spotlight
• Ukraine (-61%)
• Albania (-49%)
• Montenegro (-48%)
• New Zealand (-43%)
• Northern Mariana Islands (-35%)
For maritime companies, it is more cost effective to concentrate cargo traffic in main global hubs. The
most attractive maritime routes connect Eastern Asia and North America (transpacific eastbound) and
Eastern Asia to Northern Europe and the Mediterranean (westbound).
Global maritime hubs are those countries that manage to benefit from being located at the crossroads of
major shipping routes, providing world class logistics and transshipment services.
The LSCI is an indicator of a country‘s position within the global liner shipping networks. It is calculated
from data on the world‘s container ship deployment: the number of ships, their container carrying capacity,
the number of services and companies, and the size of the largest ship.
Since the index was first published by UNCTAD, Morocco has had the highest LSCI growth among
African countries, with its number increasing by 661% between 2004 and 2018. In South-East Asia, Viet
Nam‘s LSCI number increased by 435% during the last 15 years, the highest growth in this region. In Latin
America, the highest surge was recorded by Peru, at plus 196%. The strongest decline in their LSCI
numbers in the last 15 years was recorded by Venezuela and Yemen.
[UNCTAD]
03/10/2018
The ethics of maritime terminal concession awards and operations have been put under the spotlight
recently.
The wider take-up of so-called Multi-Criteria Analysis bid processes – requiring bidders to submit both
Technical and Financial ‗envelopes‘ as opposed to just a financial bid – has contributed a lot to
strengthening the integrity of the bid processes for maritime terminals, particularly in emerging markets.
The technical element requires bidders to set out detailed plans on key aspects such as forecast demand,
development plans and capital expenditure over the lifetime of the concession, and bidders are typically
given marks against key technical criteria which contribute to an overall score when looked at alongside
the financial bid element. Practically speaking, this makes it more difficult for any ‗fiddling‘ with the
financial bid element to take place.
That is not to say that there are no longer attempts to influence the outcome of bid processes; one typical
tactic is to gazump the Preferred Bidder with offers to pay more for the concession. This is when it can help
to have the bid process overseen by independent business advisors or by an arms‘ length agency of
government set up specifically to deter ‗outside influences‘.
Recent history confirms that only a few (multi-bidder) marine terminal concessions have been identified as
subject to improper influence. There has recently been retrospective action taken in this respect in
So what?
Billionaire Bollore transformed a family-run paper factory into a sprawling empire that spans the media,
transport, logistics and telecoms through opportunistic investments and ruthless acquisitions. He counts
presidents among his friends, including former French leader Nicolas Sarkozy. Havas is alleged to have
advised Guinean leader Alpha Conde during his first presidential campaign in return for the Conakry port
concession.
In a 2016 interview in a luxury Parisian hotel, Conde told Le Monde of Bollore in an interview: ―He is a
friend. I favor friends over others. So what?‖
Conde is now midway through his second five-year term. A Guinea government spokesman on Tuesday
told Reuters Groupe Bollore obtained the port concession ―in strict compliance with the laws in force.‖
The investigation into Bollore‘s activities in Guinea and Togo raises questions over whether other
contracts won in the region by his holding company are under scrutiny.
Groupe Bollore‘s Bollore Africa Logistics has a strong grip on port operations in West Africa, holding 16
container port concessions, as well as several rail concessions. It employs 25,000 people.
conjunction with concessions in Togo and Guinea, albeit that the alleged improper actions date back to
around a decade ago. Specifically, billionaire dealmaker Vincent Bollore and Gilles Alix, chief executive
of the Bollore Group, were placed under formal investigation in April this year, although it should be
stressed that they do remain presumed innocent until proven otherwise.
Source: Reuters: French tycoon Bollore placed under formal investigation in Africa graft probe [25 Apr
2018]
The Bollore case breaks new ground in France and it is significant that it follows on from the so-called
Sapin II law, enacted at the end of 2016, which requires French companies to take preventative measures
against graft as well as strengthening existing measures that enable punishment of corrupt practices used to
win public contracts abroad.
This type of more rigorous anti-corruption legislation is becoming more commonplace and it promises to
play a larger role in the ports sector across the board.
DP World under the spotlight
There is an argument based on recent experience, and notably that of DP World (DPW) in conjunction with
the Doraleh Container Terminal in Djibouti, now the subject of an acrimonious dispute with the
Government of Djibouti, that concessions obtained without a public tender process are more at risk. The
checks and balances inherent to a public tender process, where multiple bidders are involved, are absent.
DPW‘s new concession in Ecuador has recently come under strong fire from Ecuadorian investigative
whistle-blower media, Plan V. It points out that while one to-one negotiation is allowed under the
constitution of Ecuador between nation states it was not correct to take this route with DPW as it is not
wholly-owned by Dubai but also has private investors owning equity in the company. ―They violated
Article 297 of the Constitution,‖ Plan V alleges.
Plan V also points out that the project still has political support despite a change of President and suggests
that a key driver is that in supporting the project the new President, President Moreno, receives the
influential support of Jamie Nebot, Mayor of Guayaquil. Indicative of this unorthodox support, claims Plan
V, is the sacking of Guido Ferreti, manager of the Port Authority of Guayaquil, from his job on the very
same day he presented a Memorandum to the Minister of Transport and Public Works highlighting the
Posorja project‘s irregularities, recommending a ―special examination by the State Attorney General‘s
Office‖.
[Port Strategy / Reuters]
Research & development: Towards the battery of the future
03/10/2018
By Anne Marie Roantree
U.S. crude oil shipments to China have ―totally stopped‖, the President of China Merchants Energy Shipping
Co (CMES) said on Wednesday, as the trade war between the world‘s two biggest economies takes its toll on
what was a fast-growing businesses.
Washington and Beijing have slapped steep import tariffs on hundreds of goods in the past months. And
although U.S. crude oil exports to China, which only started in 2016, have not yet been included, Chinese oil
importers have shied away from new orders recently.
―We are one of the major carriers for crude oil from the U.S. to China. Before (the trade war) we had a nice
business, but now it‘s totally stopped,‖ Xie Chunlin, the president of CMES said on the sidelines of the
Global Maritime Forum‘s Annual Summit in Hong Kong.
Ship tracking data in Refinitiv Eikon confirmed that U.S. crude oil shipments to China ground to a halt in
September. ―It‘s unfortunately happened, the trade war between the U.S. and China. Surely for the shipping
business, it‘s not good,‖ the CMES president said. He also said the trade dispute was forcing China to seek
soybeans from suppliers other than the United States, adding that China now bought most its soybeans from
South America.
[Reuters]
03/10/2018
High-quality and innovative batteries are imperative for the EU in the context of its move towards a low-
carbon, climate-friendly and more circular economy. However, manufacturing and using batteries, as well
as the way they are treated at the end of their life, also has environmental impacts.
Oil & gas shipping: U.S. Crude oil shipments to China ‘totally stopped’ amid trade war
Perú invierte US$ 5,848 millones en proyectos de transporte
International trade: The EU countries import the most coffee
Source: European Commission
A new Future Brief, Towards the Battery of the Future, from Science for Environment Policy provides an
overview of technical aspects of battery design and production which enable the environmental footprint of
batteries to be lowered. It also highlights how battery technologies are evolving to deliver better
performance.
[European Commission]
02/10/2018
El director ejecutivo de la Agencia de Promoción de la Inversión Privada (ProInversión), Alberto Ñecco,
señaló hoy que existen 28 proyectos de inversión en el sector transportes a la fecha en sus distintas fases que
suman 5,848 millones de dólares.
Así lo manifestó esta mañana ante la comisión de Transportes y Comunicaciones del Congreso de la
República, donde expuso la situación actual de los principales proyectos de inversión de transporte terrestre,
ferroviario, marítimo, aéreo, lacustre, fluvial, puertos y telecomunicaciones.
Detalló que en la etapa de planeamiento y programación hay un proyecto por 389 millones de dólares y en la
etapa de formulación hay 16 proyectos por 2,123 millones de dólares. En la etapa de estructuración, que
comprende la primera versión del contrato y las bases, hay 3 proyectos por 2,513 millones de dólares.
Finalmente, en la etapa de transacción que comprende la adjudicación y suscripción del contrato, hay ocho
proyectos por 823 millones de dólares, entre ellos el puerto de Salaverry (ya adjudicado).
Asimismo, indicó que por subsectores los proyectos de inversión se encuentran distribuidos en aeropuertos
(185 millones de dólares), carreteras (4,148 millones de dólares). También en puertos (921 millones de
dólares), telecomunicaciones (359 millones de dólares) y ferrocarriles (235 millones de dólares).
[Agencia Andina]
02/10/2018
By Niall McCarthy
Yesterday, many Europeans enjoyed a nice cappuccino or latte for International Coffee Day. To mark the
occasion, Eurostat also released some interesting statistics highlighting the EU Member States importing the
most coffee.
Germany is way out in front with its imports in 2017 totalling 1.1 million tonnes. The Italians are also well
known for their love of coffee and last year, they imported just over 550,000 tonnes. Belgium came third for
coffee imports with 268,000 tonnes.
Out of the countries exporting coffee to Europe, Brazil ships the most. Last year, the EU imported over
840,000 tonnes of coffee from Brazil, more than second-placed Vietnam (671,698) and third-placed
Bunkering: Ship-to-ship LNG bunkering is coming to the northeast Baltic
Honduras (671,698). In total, the EU imported almost 3 million tonnes of coffee in 2017, 5 percent more than
10 years ago. In total, the amount imported was worth €8.8 billion.
[Statista]
02/10/2018
The first of a series of short-sea liquefied natural gas (LNG) bunker vessels to operate in the Baltic Sea will
be constructed under a contract between Damen Shipyards Group and the parent company of Estonia‘s
leading energy company Eesti Gaas.
The 100-meter LGC 6000 LNG class vessel, scheduled for delivery in September 2020, will be the first to
provide mobile ship-to-ship LNG distribution services in the North-east Baltic Sea, and is expected to
accelerate the wider adoption of LNG as a cleaner alternative fuel. It will be built at Damen Yichang
Shipyard in China and will carry 6,000m³ of LNG in two type-C tanks at -163° C.
The LGC 6000 LNG is designed to meet the requirements of ICE class 1A certification and to achieve green
ship notation. A dual fuel propulsion system will be used for the management of the Boil-Off Gas (BOG) in
combination with a gas burner, and the interior of the vessel will feature high-quality accommodation for her
crew.
Oil & gas shipping: Shell's LNG Canada seen as tip of megaproject iceberg
Efficient bunkering is particularly vital for passenger, RoRo and RoPax vessels where fast turnaround times
are essential for providing a good service to their customers. Currently, Eesti Gaas is refueling the LNG
fueled RoPax vessel Megastar by truck, with 11 required for a single operation. The LGC 6000 LNG will be
able to resupply the ferry in a single, efficient and much faster procedure while she is alongside her regular
berth, loading and unloading passengers and vehicles. Ports will also be spared the additional traffic
generated by moving LNG by road.
Eesti Gaas will operate this LNG bunker vessel under a long-term charter from its parent company Infortar
AS, which will be the owner of the vessel. Since 2016, Eesti Gaas has expanded its LNG transport and
bunkering capacity by entering long-term LNG supply contracts with shipping companies and industrial
consumers. Over time, as the adoption of LNG as a marine fuel gains momentum, it is anticipated that
additional LGC 6000 LNG vessels will enter operation.
[MarineLink]
2/10/2018
By Sabina Zawadzki
The launch of a massive liquefied natural gas (LNG) export project in Canada has finally fired the starting
gun on a wave of plan approvals around the world, needed to avoid a supply crunch after 2020.
Royal Dutch Shell said it would export LNG from Western Canada by 2025 after approving a $14 billion
project, hot on the heels of Qatar's commitment last week to expand its facilities. The two announcements,
adding 37 million tonnes a year (mtpa) to the 290 million tonnes traded in 2017, are just the start of project
approvals - known as final investment decisions (FIDs) - that have been waiting in company drawers while
LNG prices recovered from a three-year slump.
Despite a slump in global LNG prices between 2015 and 2017, many had long worried there would be a
global supply gap at some point after 2020 due to broadly fast-rising demand and the lack of new export
projects to produce corresponding supply. Several projects that had been touted for years, such as Shell's
LNG Canada venture, were put on the backburner.
LNG prices began climbing last winter and have since broadly stayed at four-year highs, seasonally, driven
by China's policy-dictated shift to gas away from coal. "If you look at the demand curve and the supply
coming on stream, there are simply not enough projects that are being sanctioned or under development to
meet demand by 2023-24," Shell's chief financial officer, Jessica Uhl, told reporters on Tuesday.
Shell's vote of confidence in these new market conditions now gives credence that projects with capacities of
around 175 mtpa will be approved by the end of next year as planned, with most expected to be running by
2024.
Aside from these, projects with another 51 mtpa in the United States have already been approved and are
expected to start operations between now and the end of 2021. Forecasts vary, but LNG demand is expected
to jump to about 360 mtpa by 2023, the International Energy Agency has said, while consultancy Wood
Mackenzie is projecting 450 mtpa.
"There needs to be 200 mtpa LNG capacity authorized by 2025 to meet future demand – this is a colossal
boom, a 42 percent expansion on the entire capacity installed since 1962," Bernstein analysts said in a
European Commission to invest €695 million in ‘sustainable and innovative’ transport
initiatives
research note."Ultimately, this is the start of a major LNG investment wave," Bernstein said.
Qatar Petroleum said it would build a fourth mega train, or production facility, with capacity of 32 mtpa to
bring its supply to 110 mtpa by early 2023, more than twice China's consumption today and enough to feed
China's demand that year.
Other large project approvals on the horizon include Novatek's Arctic LNG-2 project with 19.8 mtpa
capacity after the Russian gas company's Yamal export facility started operations smoothly and quickly at the
end of last year. Two projects are planned in Mozambique backed by different commercial models: Exxon
Mobil's, like LNG Canada, does not make use of long-term offtake agreements to finance it. The other is
more conventional, operated by Anadarko.
A host of U.S. approvals are also anticipated, including from Tellurian for the 27.6-mtpa Driftwood project
in the first quarter of next year, which is seen as a potential industry disruptor because of its LNG supply
pricing models.
[Reuters]
02/10/2018
The European Commission (EC) is to fund several projects, including an LNG bunker vessel in Estonia,
LNG solutions in Spanish ports and an upgrade to LNG bunkering facilities for vessels operating between the
Swedish port of Ystad and Polish port of Swinoujscie, as part of a wider investment in transportation projects
in the European Union (EU).
The European Commission has proposed a total investment of €695.1 million in 49 key projects to develop
sustainable and innovative transport infrastructure in Europe across all transport modes. Selected projects are
expected to provide infrastructure enabling greater use of alternative fuels and electric cars, modernise
Europe's air traffic management, and further develop waterborne and rail transport.
‗Our investment plan for Europe is delivering: today we are proposing to invest €700 million in 49 key
transport projects through the Connecting Europe Facility (CEF). These projects are concentrated on the
strategic sections of Europe's transport network to ensure the highest EU added-value and impact, said EU
Commissioner for Transport Violeta Bulc.
‗This will allow us to further accelerate our transition to low-emission mobility across Europe, and firmly
deliver on the EU's agenda for jobs and growth. We expect it to unlock a total of €2.4 billion of public and
private co-financing,‘ Bulc added.
The largest part of the funding will be allocated to modernising European air traffic management (ATM –
€290.3 million), developing innovative projects and new technologies for transport (€209.5 million), as well
as upgrading the railway network, maritime connections, and ports and inland waterways (€103.6 million).
Several of the 49 projects relate to maritime transport. The EC is to provide Estonian company Infortar – a
private investment group with interests in shipping and transportation – with €7.2 million, or 20% of the total
cost, towards the construction of an LNG bunker vessel. According to the EC, the project is scheduled for
completion in September 2020.
The EC is also providing €11.8 million (20% of total project cost) to Baleària for LNG solutions for smart
maritime links in Spanish Core ports and is also providing €34.9 million (26% of the total project cost) to
Oil & gas shipping Canada: Start of $119m dredging project for LNG export terminal
Container shipping: Shippers have little choice but foot sulphur fuel bill
develop LNG bunkering facilities for vessels operating between the Swedish port of Ystad and Polish port of
Swinoujscie. This project is expected to be completed by the end of 2021.
Venice LNG, a joint venture between Italian industrial groups Decal Spa and San Marco Gas, will receive
€12.1 million (20% of total project cost) for the development of an alternative fuel multimodal facility at the
port, which is scheduled for completion in September 2022. The facility is expected to accommodate a 4,000
cbm-capacity LNG bunker barge currently being designed for Venice. The vessel will carry out both
bunkering inland waterways transport operations.
The EC will also commit €5.6 million in funding (20% of the total costs) for a project which seeks to
accelerate the electrification of inland waterways in the Netherlands, Belgium and Germany. The
newbuildings will be multipurpose ‗Kempenaar‘-sized barges and 110-metre-long container vessels.
[Bunkerspot]
02/10/2018
Royal Boskalis Westminster (Boskalis) has announced that it will be executing the dredging scope for the
development of the first large-scale LNG export facility in Kitimat, Canada (LNG Canada) following the
final investment decision by the shareholders earlier today. The contract value is approximately $119
million.
The dredging scope includes the removal and remediation of contaminated and non-contaminated sediments
at the site of the future facility in order to provide the required physical space and marine access for the
construction of LNG Canada.
For these activities Boskalis will deploy a medium-sized trailing suction hopper dredger, cutter suction
dredger, backhoe dredger and a crane barge. Boskalis was involved from the early stages of this development
illustrating the early cyclical exposure dredging has on green field LNG developments. The dredging
activities are expected to continue into 2020.
LNG Canada is a joint venture comprised of Royal Dutch Shell, Petronas, PetroChina, Mitsubishi and Korea
Gas Corporation. The LNG export facility will initially consist of two LNG processing units with the first
LNG expected to be processed before the middle of the next decade.
It will be Canada‘s biggest ever infrastructure Project and is the world‘s first major liquefied natural gas
project to be given the go-ahead in five years.
Boskalis' strategy is aimed at benefitting from key macro-economic factors which drive worldwide demand
in our markets: expansion of the global economy, increase in energy consumption, global population growth
and the challenges that go hand in hand with climate change. This contract award is closely related to the
increase in energy consumption, Boskalis said in a statement.
[Seatrade Maritime News]
Container shipping: Ripples from congestion at UK box hubs now reaching north European
ports
02/10/2018
By Linton Nightingale
Shippers will have to pick up the tab for rising fuel costs ahead of the 2020 sulphur cap because there is
―simply no-one else to do it‖, according to analysts at SeaIntel.
Weighing into the sulphur debate, SeaIntel said shippers will have little choice but to pay the extra $11.2bn
incurred cost as a result of the impending climate change agenda levy. Maersk Line, Mediterranean Shipping
Co and CMA CGM are among carriers that have announced plans to introduce bunker surcharges to mitigate
against spiralling costs. These have drawn criticism from shippers, with both the Global Shippers‘ Forum and
the British International Freight Association voicing concerns.
―Of course, any type of bunker adjustment factor mechanism can be criticised — but given the reality of the
low-sulphur rules and the associated costs, shippers who are critical of the new structures owe it to the
industry to then explain how they intend to pay the added fuel cost,‖ said SeaIntel. ―At the end of the day,
there is no-one else to foot the bill.‖
Shippers have also argued that carriers should look to meet new air quality standards by fitting scrubbers to
clean up exhaust emissions, as an alternative to buying more expensive low-sulphur fuel. This requires a
major one-off capital expense for carriers, but SeaIntel added that it is ―physically impossible to equip more
than a minority of the vessels with scrubbers in time‖, while LNG-fuelled ships will ―remain a tiny exotic
part of the fleet‖.
SeaIntel pointed to how Maersk Line is anticipating that the cost of compliance in monetary terms will be
close to $2bn annually, which if used as an industry yardstick will mean a total cost to the industry of about
$11.2bn. ―Putting this into perspective, the 13 largest carriers who provide financial accounts had combined
cumulative earnings before interest and tax of just $8.6bn in the six years spanning 2012-2017,‖ said
SeaIntel.
Last year, the 13 largest carriers had combined earnings before interest and taxes of just $3.5bn. ―It is
therefore evident that the carriers cannot in any way absorb the added costs stemming from the low-sulphur
rules.‖
[Lloyd‘s Loading List]
02/10/2018
By Mike Wackett
More ultra-large container vessels (ULCVs) are likely to be diverted from UK ports as Felixstowe and
Southampton struggle to cope with the annual peak season surge, impacting the working programmes at other
north European container hubs.
One carrier source that services both ports told The Loadstar all its UK calls would be ―under the microscope‖
this month, due to the worsening quay and landside congestion. ―We can‘t afford to have our ships sitting at
anchor for days and then being forced to cut and run when we eventually do get alongside,‖ he said.
Yesterday the Ocean Alliance partners advised they were cancelling this week‘s planned call of the 20,388 teu
Ever Goods at Felixstowe, resulting in some 3,000 containers of imports destined for the UK Christmas market
being transhipped at Rotterdam, which could delay their arrival on retailers‘ shelves by several weeks. Earlier
THE Alliance members had pulled Thursday‘s call of the 20,180 teu MOL Truth at Southampton, diverting it to
London Gateway today for import discharge before it goes on to Hamburg.
And the congestion crisis at UK ports is having a knock-on effect at other North European ports, and beyond.
Giuseppe Lamberti, a manager at Salerno Container Terminal, said: ―It‘s incredible the impact of this on North
European shipping trades; carriers, consignors and even terminals have been affected by the Felixstowe failure.
I never thought that my firm‘s container throughput might be affected by the capability of another terminal to
implement in good order a new TOS [terminal operating system].‖
The IT failure at Felixstowe, which began in June, has resulted in a number of ship diversions and in some cases
the temporary transfer of services to other ports. Arguably, the problems at Southampton can be traced back to
the issues at Felixstowe, however it has also highlighted the additional difficulty container ports have in
handling off-window ULCVs.
In a new discussion paper released by the International Transport Forum (ITF), entitled Container Ship Size and
Port Relocation 2, the author, the OECD‘s Olaf Merk, suggests the influence of the orderbook rush for mega-
ships (defined as over 18,000 teu) has yet to be fully realised. ―The impacts of the newest wave of container
vessels only start to become visible, as many of these mega-ships have not been delivered yet,‖ said Mr Merk.
Evolution of number of mega-ships deployed 2013-20
Source: ITF elaboration based on data from Clarkson Research
2 The ITF discussion paper Container Ship Size and Port Relocation analyses the impacts of ever-larger ships
on location choices for new container ports and examines when relocation of a port makes sense. Most ports are
located close to cities, but have difficulties expanding. A number of new container ports have been built further
away from urban centres, and existing ports may at some point feel the pressure to relocate.
Terminal operators India: Krishnapatnam’s Navayuga Container Terminal to double its
capacity
New-built orders of containerships per size class 2015-18
Source: ITF elaboration based on data from Clarkson Research
Notwithstanding the adaptations needed to ports to physically handle the ULCVs, such as longer quays and
container cranes with more outreach, the larger ships mean more containers on each call, which said Mr Merk
―increases the peak and through effects‖. Moreover, the ITF‘s studies clearly demonstrate that the arrival of an
ULCV is ―associated with higher yard occupancy, more feeder traffic and truck and train movements‖, added
Mr Merk.
According to the ITF, based on current industry dynamics, by 2025 some 10% of all container vessels will have
a capacity of 14,000 teu or more.
[The Loadstar]
02/10/2018
Krishnapatnam Port Co Ltd which runs a private port at Andhra Pradesh‘s Nellore district, is expanding the
capacity of its container terminal to handle 2 million twenty-foot equivalent units (TEUs) from next year.
The container terminal, recently rebranded as Navayuga Container Terminal Pvt Ltd to reflect the name of
the holding company, the Navayuga Group, can currently handle 1.2 million TEUs.
The terminal, earlier called Krishpatnam Port Container Terminal Pvt Ltd, recently started container
transshipment operations. The expansion involves adding 250 metres of berth-length to the existing 650
metres and erecting three more quay cranes, Vinita Venkatesh, Director, Navayuga Container Terminal, told
BusinessLine.
The terminal currently has five super-post panamax quay cranes. The twin-lift, 70-tonne ship-to-shore cranes
Italy’s closure to rescue ships drives up sea deaths
can do 50 moves per hour, capable of servicing the biggest of container ships. The berth extension and the
commissioning of the three additional quay cranes will be completed by the second quarter of 2019,
Venkatesh said without giving investment details.
The container terminal, which started operations in 2012, handled 4,81,408 TEUs in the year ended March
2018, clocking a growth of 88 per cent over the previous year. Krishnapatnam is one of India‘s deepest ports
with a draft of 18.5 metres.
Venkatesh said the terminal operator is ―open‖ to inducting a global container terminal operating company as
a strategic partner. The port, with a transit storage area of 6,800 acres, has the country‘s largest waterfront
area of 290 sq km.
[The Hindu Business Line]
01/10/2018
By Steve Scherer
Italy‘s closing of its ports to rescued migrants is driving up deaths at sea, an Italian think tank said on
Monday, using calculations based on numbers collected by U.N. agencies.
Since taking power in June, Interior Minister Matteo Salvini, who heads the far-right League party, has
refused to allow charity rescue ships to dock in Italy, a policy that has broad popular support after the arrival
of almost 650,000 people from North Africa since 2014. Though arrivals are down 80 percent from last year,
Salvini‘s hardline on immigration has helped more than double support for his party since the March national
election. But International Organization for Migration (IOM) estimates of the number of dead or missing at
sea suggest there are dire consequences to this policy, according to Matteo Villa, a researcher at Italy‘s ISPI
think tank.
In the four months since Salvini took power, the average number of deaths per day has risen to 8, compared
with 3.2 in the period between July 16, 2017 nd May 31, 2018, when the previous government was in charge,
Villa‘s calculations show. The death rate in September was 19 percent, so about one in five migrants who
attempted to reach Italy from North Africa perished. That‘s the highest monthly death rate recorded since at
least 2012, when reliable data began to be collected, Villa said.
―These data show there‘s a problem,‖ Villa told Reuters, adding that the lack of civilian ships at sea also
likely means recent estimates of dead are too low because there are no witnesses. There currently are no
civilian charity ships patrolling the waters off of Libya after the latest standoff on the high seas, which
involved the Aquarius rescue vessel, ending on Sunday.
In response to the report, a source close to Salvini told Reuters that the minister‘s objective is to stop
departures altogether, and the presence of the charity ships had caused people smugglers to send migrants on
less safe boats. ―The objective is to bring real refugees to Europe by plane instead of these journeys of hope,‖
the source said.
―The presence of non-governmental groups close to the Libyan coasts has led smugglers to use smaller and
less secure boats to cover just a few miles, hoping that the migrants are picked up by the NGOs. In this way,
the risk for migrants increased, and traffickers increased profits,‖ the source said.
NGOs have repeatedly denied helping or having any ties whatsoever to traffickers. On Monday in Geneva,
General average: Do statutory maritime liens cover costs associated with general average
contributions?
U.N. High Commissioner for Refugees Filippo Grandi repeated a call for more rescuers at sea. ―Rescue at sea
– a marker of our shared humanity – has been taken hostage by politics,‖ Grandi said.
[Reuters]
01/10/2018
By Matti Komonen, HPP Attorneys Ltd
On 29 June 2018 the Eastern Finland Appeal Court handed down a significant judgment on whether the
statutory maritime lien over cargo also covers the costs associated with the general average that accrued as a
result of confirming the general average and exercising the lien for a general average contribution.
Facts
The Lehmann Timber, carrying steel coils under four Congenbill bills of lading from China to St Petersburg,
was hijacked off the coast of Somalia and held until a ransom was paid in July 2008. The owner declared a
general average and requested security from the Russian cargo owner for its share of the general average
contribution. As the owner had received a guarantee only in regard to one bill of lading, the vessel departed
from St Petersburg and discharged the cargo in Hamina, Finland, where the cargo had been stored since
October 2008, causing storage and associated costs approximating $2 million.
District court decision
According to the Finish Maritime Code, a maritime lien over cargo is lost if the cargo is released. The
maritime lien extinguishes within the one-year limitation period unless legal proceedings are commenced.
In July 2009 the owner commenced court proceedings before the Kymenlaakso District Court in Kotka,
Finland, to secure its statutory maritime lien under the Maritime Code. The owner's claim was that,
considering the general average claim of $1.3 million (to be confirmed in the arbitration in London) and the
legal costs (totaling over £1 million), interest should be paid by virtue of the maritime lien over the cargo
possessed by the owner in Hamina.
According to the claim, pursuant to Chapter 3(9) of the Maritime Code, a maritime lien on laden goods is
security which covers (for example):
• receivables concerning salvage money;
• general average contributions; or
• other costs to be divided on the same grounds.
The legal proceedings in Finland were complex and delayed for years while awaiting arbitral awards from
England. In the meantime, the cargo was sold to new owners and the original owner went bankrupt.
The district court finally rendered its judgment on 10 February 2017. The court accepted the owner's claims
by relying heavily on the testimony of an emeritus professor regarding whether the maritime lien on the cargo
covered the costs associated with the general average claim in addition to the general average contribution,
including:
• the interest on the general average claim;
• the storage costs in Finland; and
• the legal costs of arbitral and court proceedings in England and Finland.
According to the expert testimony, other than a 1968 reference in support of the owner's view, no existing
Finnish legal literature addressed this question; however, Nordic maritime literature and real arguments
supported the interpretation that legal and storage costs are associated with the general average claim and
therefore, to be recoverable, do not have to be such other costs which are divided on the same grounds.
Appeal court decision
Following the cargo owners' appeals, the Eastern Finland Appeal Court overruled the district court's decision
in regard to the storage ($1.7 million) and legal costs, and partially in regard to the interest on the general
average contribution. The appeal court ordered the owner to release the cargo to the defendants against the
presentation of the original bills of lading and the payment of the general average contribution.
According to the appeal court, a maritime lien arises under the law, not under a contract. Therefore, the court
cannot order any receivables other than those legally owed under the maritime lien. In this regard, the
mortgage is considered differently as, according to the Enforcement Code, associated costs of the receivables
are also secured if they are included in the mortgage deed.
Contrary to the district court, the appeal court based its decision on the Enforcement Code and associated
legislation. According to Chapter 5(33) of the Enforcement Code, claims must be paid in order of priority.
The Act on Order of Priority of Creditors holds that interest is limited to three years.
Regarding the part of the cargo for which the guarantee was provided, the Appeal Court found that this
should have been released in St Petersburg and its possession was unjustified. As for the remaining part, on 5
February 2013 the cargo owners offered to pay the general average contribution and storage costs against the
release of the cargo. The appeal court found that the duty to pay interest had ended on this date.
Regarding the legal costs, the appeal court emphasised that the purpose of the general average contribution is
to compensate financial sacrifices that also benefit the cargo owners. In this case, the legal costs resulted
from the confirmation of the general average and therefore did not benefit the cargo owners. Further, such
costs are not deemed to be recoverable in the legislature.
Regarding the storage costs, the appeal court admitted that the situation might need to be treated differently
as the storage of the cargo had also benefited the cargo owners. However, in order for such costs to be
recoverable, they must be included in the general average contribution. As this was not the case, the owner's
claim was dismissed.
Comment
In deciding that these kinds of associated cost and expense are not recoverable and secured by maritime lien,
the appeal court made the exercise of a lien more difficult and less attractive to ship owners. However, as
statutory maritime lien provides additional security to ship owners, it would be similarly correct to conclude
that the effect of lien cannot be extended beyond the express provisions of the law.
The appeal court's judgment is not legally binding as the owner has sought leave to appeal to the Supreme
Court.
Shipping emissions: Legal considerations for unprecedented changes
[Lexology]
01/10/2018
By Wole Olufunwa, HFW Senior Associate
The recent spate of vessel bunker contamination cases in the US Gulf and Singapore has brought into sharp
focus the unprecedented standards to be affected by MARPOL Annex VI (commonly referred to as "IMO
2020"): the implementation of a global cap of 0.5% Sulphur content in marine fuel oil from 2020. This limit
will apply outside designated emission control areas.
In this briefing we outline what MARPOL Annex VI means in practice for shipping industry stakeholders.
Likely incidence of fuel contamination A global shift from residual fuels, with a maximum of 3.5% sulphur
content, to primarily distillate fuel with a maximum of 0.5% sulphur content will undoubtedly catalyse an
unwanted vicious cycle.
Bunker suppliers will likely be required to conduct more fuel blending to comply with the new low sulphur
cap limits. This is particularly so where traders may not be in a position from the effective date (currently
stated as 1 January 2020) to produce or supply sufficient quantities of low sulphur fuel to meet global
demand.
The increasing incidence of blended fuels inevitably heightens the risk of importing contaminants
completing the cycle 3.
Use of scrubbers
Many ship owners are now actively weighing the need for purchasing or fitting scrubbers (Exhaust Gas
Cleaning Systems) to their vessels to limit sulphur release to the atmosphere, thus complying with the
MARPOL regulation. Whilst scrubbers are admittedly expensive, they enable owners to have the option of
continuing to burn high-sulphur fuels, following the effective date, provided their underlying charter
contracts permit their use 4.
Depending on the overall availability of low sulphur fuels, owners may well benefit from earning increased
freight from scrubber fitted vessels in demand, which freight could also consider additional bunker
consumption incidental to scrubber usage. Within the context of time and voyage charters, this brings a fresh
perspective on the need for owners and charterers to consider clearly all the potential eventualities and draft
their contracts with these in mind.
The parties' respective obligations or responsibilities should therefore be clearly delineated by the charter in
question to limit the likelihood of disputes.
3 This may require alternative testing methods to the current ISO testing which is defective to the extent that
it does not pick up contaminants such as phenol and styrene. However, this is a topic for a separate briefing
note as this briefing will focus on the MARPOL Annex VI sulphur limits and the incidental contractual
regime.
Shipping emissions: Maritime and Port Authority of Singapore dishes out S$26 million to
promote LNG use as marine fuel
4 HFW has been involved in drafting BAF (Bunker Adjustment Factor) clauses which serve to adjust voyage
charter freight rates to take into account the possibility that high sulphur fuels may be burned where Owners
have such liberty under the charter to burn them.
Examples of compliance issues
• In a time charter scenario, the parties could expressly allocate risk, responsibility for delay and/or cost for
removing unused non-compliant fuels from the vessel's tanks. This could deal with the period just prior to
delivery and post delivery.
• In a voyage charter scenario, if high-sulphur fuels (i.e. above 0.5% sulphur content) are permitted to be
burned under the charter, what is the extent, if any, to which owners should warrant as to the condition and
maintenance of scrubbers and/or who is to bear the cost of additional energy consumption with respect to the
use of scrubbers?
• Likewise, charterers may wish to protect themselves with respect to delay, say, where laytime and/or
demurrage is running and time is lost owing to the stemming or de-stemming of bunker fuels. Meticulous
drafting is required to protect the parties' interests in these potential scenarios.
Take home message
These examples are merely scratching the surface where there are a myriad of other potential issues that may
arise.
That said, the standout message must be for chartering and operational teams to consider re-negotiating
existing longer term fixtures and/or focus on the drafting of suitable terms for new fixtures to be entered. The
industry should consider including BAF clauses to reflect more closely the fluctuating cost of the
contemplated compliant fuels, the specifications of which remain unknown at this point in time.
[Lexology]
01/10/2018
By Tan Hwee Hwee
Ahead of the implementation of a green shipping regulation, the Maritime and Port Authority of Singapore
(MPA) has spent S$26 million to kick-start the use of liquefied natural gas (LNG) as a cleaner burning
marine fuel.
This includes S$18 million or up to S$2 million per ship awarded as grants to shipowners for building
LNG-powered ships plus another S$6 million that went to two licensed suppliers for the construction of LNG
bunkering vessels. The MPA has spent a further S$2 million to build LNG trucking capabilities at the SLNG
terminal.
LNG, which emits almost zero sulphur dioxide, is touted as a bridging fossil fuel allowing for international
shipping to comply with an upcoming green shipping regulation. By 2020, the International Maritime
Organization will enforce a 0.5 per cent cap on sulphur content in marine fuel. This is intended to cut the
emission of sulphur dioxide, a harmful greenhouse gas, from ship operations.
Panama Canal: Challenges of the coming years
Transparency & corruption: Disastrous worldwide over-budget construction projects in
comparison
[The Business Times]
01/10/2018
Increased cargo traffic, improving the availability of water for the passage of ships and construction of the
rolling cargo port, are some of the challenges the authorities of the interoceanic route face for the coming
years.
Representatives from the Panama Canal Authority reported that the levels of traffic currently being reported
have already reached the figures expected to be reached in 2020. If this rate of growth continues, the third set
of locks will be close to reaching its maximum capacity in 2026, however, before thinking about a new
expansion, authorities are warning that increased water availability must be ensured.
See "More Traffic Projected in Panama Canal"
Concerning the possibility of an extension, Jorge Luis Quijano, head of the Panama Canal Authority, told
Prensa.com that " ... they are not promoting any type of expansion, but he points out that projections indicate
that by 2030 capacity of the waterway will need to be increased."
Another issue that is a priority is that of the port in Corozal, which consists of the development of a 1,200
hectare logistics area near the International Terminal of PSA Panama, former port of Rodman.
See "Roll On- Roll Off Port Plan Revived"
The purpose of the terminal, which will specialize in rolling cargo, is to convert the area where it will be built
into a center for redistributing vehicles, machinery and heavy equipment to serve the local market and other
countries in Latin America.
In regards to this, Quijano added that " ...'We need to give value to the cargo we handle. Because we are not
producers, we must look for mechanisms to generate new revenues', giving formality to what will be
diversification of business in the Canal."
[CentralAmericaData]
01/10/2018
By Niall McCarthy
Germany's reputation for efficiency and world-class engineering has suffered considerably in recent years
after a spate of embarrassing blunders concerning major construction projects.
Hamburg's spectacular Elbphilharmonie concert hall is a prime example with that project completed six
years late and costing €700 million more than expected. Expected to open on October 2011, Berlin's new
airport is still delayed and hugely over-budget. The late opening date is late 2020 but considering how
disastrous the airport is proving, there are doubts about whether it will ever open at all.
Last week, it was announced that Germany had beaten off fierce competition from Turkey to host Euro 2024,
Europe's flagship international soccer tournament. Given how catastrophic major construction projects have
proven over the past decade (the Leipzig City Tunnel and new Stuttgart train station are other examples), it
might come as a relief that organizers don't have to build any new stadiums in order to host the event. In total,
ten will be used for Euro 2024, of which nine were already used when Germany hosted the World Cup in
2006.
The following infographic shows just how expensive disastrous construction projects can get with the
number of sporting events included particularly noteworthy. When Brazil hosted the World Cup, it had to
pay $2.5 billion more than planned, according to website Podio. The Olympics are also a prime offender
when it comes to keeping costs under control with Athens going $7 billion over budget and London costing
$11.9 billion more than planned. All of that pales in comparison to Sochi, however, with that event running
an incredible $39 billion over-budget.
Despite that mammoth and seemingly unimaginable cost overrun, it is far behind the International Space
Station. The ISS had a $36.75 billion budget and it was completed six years behind schedule and cost $105
billion in total - 186 percent more than planned.
China has plenty of experience with major construction projects, having embarked on a massive building
spree over the past 30 years. It isn't immune to catastrophic cost overruns either with the Three Gorges Dam
163 percent over budget despite being completed three years early. The project had a final price tag of $25.96
billion, $9.85 billion more than planned.
The Channel Tunnel, Three Gorges Dam and Boston's Big Dig are three of the more notable projects where
money spiraled out of control. Between them, they cost $50 billion more than originally estimated.
Terminal operators: Global container terminal productivity slips amid digitalization push
[Statista]
01/10/2018
By Turloch Mooney, Senior Editor, Global Ports
Global container moves per hour, the top-line measure of port call productivity, decreased 4 percent,
effectively meaning ships spent an extra 70,000 hours in port in the first half of 2018 compared with the first
half of 2017, according to an analysis of JOC Port Productivity data.
After an extended period of high growth, average call sizes, or the number of containers exchanged per call,
did not increase in the first half of 2018, compared with the same period in 2017, Concerning the first statistic,
over-deployment by the new alliances in late 2017/early 2018 accounts for the decline of port moves per
hour. The idle fleet dropped to its lowest level since 2009 in early 2018, but has since rebounded to more-
normal levels. That extra capacity reduced load factors and call sizes. However, capacity reductions in May
and June mean that the trend of growth in call sizes will likley have already resumed.
Further, the fact that top-line productivity declined during a period of long-term, steady growth in both ship
size and call size poses the question of what terminal operators need to do to reverse it.
Physically, there are limitations regarding what terminals can do; bigger vessels are wider, rather than longer,
hence adding more cranes is challenging for many terminals. Further, even if terminals add cranes, that
increases crane intensity and will probably just ‗move the bulge‘ onto port yards, gates, and increasingly
congested hinterland waterways and roads, which in most cases were constructed before mega-ships with
their huge cargo surges.
Digitalization potential
For many the solution lies in digitalization or, more specifically, improved collaboration and live data-sharing
between stakeholders in container transport chains. When it comes to digitalization, the broad container
shipping industry‘s recent history is not one of rapid identification and implementation, as noted by the World
Economic Forum in a 2016 report on digitalization in the sector.
―Logistics has introduced digital innovations at a slower pace than some other industries. This slower rate of
digital adoption brings enormous risks that, if ignored, could be potentially catastrophic for even the biggest,
established players in the business.‖
This week the Paris-based Organization for Economic Cooperation and Development (OECD) issued its
recommendations on what is needed to move digitalization forward in the container transport supply chain to
increase efficiency and decrease costs, including port productivity metrics. One of the recommendations is
for governments to increase support for ports to facilitate collaboration among shipping stakeholders and
among ports.
―Although ports of the same region often compete, combined efforts to providing digital solutions for
stakeholder coordination could generate efficiencies from which all participating ports benefit,‖ the OECD
said.
Many larger ports are now moving quickly to develop data-sharing platforms for collaboration across
organizations, but initiatives among competing ports are still rare.
Port collaboration emerges
In Europe, Hamburg and Rotterdam this year started exchanging data related to planned and actual arrival and
departure times for ships coming from or heading to either port. The idea is that live data support faster
reaction and improved coordination to ad hoc schedule changes leading to better allocation of terminal
resources and better liner route and network planning. Bunker costs are also reduced, and there are
environmental benefits because lines can adjust speeds if they have live information on conditions and
available resources at destination terminals.
―It is the logical first step towards building a network of ports all over Europe,‖ Gerald Hirt, managing
director of the Hamburg Vessel Coordination Center, told JOC.com.
Also, the Port of Los Angeles and GE Transportation last year piloted the information portal, limiting
participation to APM Terminals, Maersk Line, Mediterranean Shipping Co., and a handful of beneficial cargo
owners (BCOs) and truckers. By sharing advance information on shipments, the portal‘s Port Optimizer
product allows port users to marshal their labor and equipment assets before vessel arrival in order to expedite
cargo flow and reduce congestion. Participation in the Port Optimizer this year was extended to all six
container terminals in Los Angeles and three of the six terminals in neighboring Long Beach.
Operadores de terminales Argentina: El Gobierno pretende que el puerto de Buenos Aires
sea operado por un solo grupo
Standardization of terms and data elements is critical for this kind of collaboration, the development of which
is something that the OECD wants governments to support. ―Public authorities should support the creation of
open standards in maritime logistics to develop a configuration that is useful to all players in the supply
chain,‖ the OECD said.
Other obstacles to digital togetherness are lack of trust, which is partly due to commercial sensitivities but
also due to questions over data ownership. Further, the emerging world of cyber security risks doesn‘t help
matters, nor do fears of future data oligopolies controlled by small numbers of companies.
―The emergence of proprietary data-enabled systems could potentially concentrate market power,‖ the OECD
warned. ―Such private platform monopolies or oligopolies could lock users into a limited number of solutions
to choose from.‖
Public support for port collaboration, standards development, and data ownership planning is needed, but it is
also clear that digitalization needs to happen competitively, in an open market, with startups, for instance,
playing a critical role in reimagining the container transport chain.
A conservative figure of $2,500 per additional hour a ship spends in port would mean the extra 70,000 hours
spent in port in the first half of the year cost the industry more than $175 million. Costs such as the
aforementioned are hard to see because they are masked by poor efficiency, but they contribute heavily to the
unprofitability of sectors of the industry and ironically drive some of the big agendas that ultimately end up
creating more efficiency and cost issues.
Moreover, those added costs take place at a time when non-traditional companies, such as Amazon, are
entering container shipping‘s supply chain space — disrupting it with cheaper, faster processes. Hence, extra
costs and inefficiencies that historically might be easily passed along to BCOs are being met with shipper
resistance.
All of which suggests that as liner shipping continues its struggle with profitability, and as ports and terminals
creak under the weight of mega-ships and cargo surges, it is time to see the digital strategy move from IT
departments to board rooms.
[Journal of Commerce]
01/10/2018
Convocó a una licitación pública internacional para modernizar las terminales de carga y cruceros. En la
actualidad conviven tres operadores: Hutchinson, APM Terminales y DP World.
El Gobierno llamó en últimas las horas a una licitación pública internacional para la construcción,
conservación y explotación de la Terminal Portuaria de Buenos Aires, ya que a partir del año siguiente
vencen los contratos. El objetivo de la administración de Mauricio Macri es que en la licitación surja un único
operador que se encargue del "Nuevo Puerto" desde mayo de 2020, a diferencia de lo que ocurre actualmente
en la que hay varias empresas operando.
Así lo resolvió el Gobierno a través del Decreto 870/2018 publicado en el Boletín Oficial con la firma del
presidente Mauricio Macri; el jefe de Gabinete, Marcos Peña; y el ministro de Transporte, Guillermo
Dietrich.
Los vencimientos de los actuales contratos de concesión de las Terminales Portuarias 1, 2, 3, 4 y 5, se
cristalizarán en forma escalonado el 1º de noviembre de 2019, el 14 de noviembre de ese año, el 9 de febrero
y el 15 de mayo de 2020.
El decreto aclara que el objetivo es la licitación que adopta medidas para modernizar la jurisdicción portuaria
nacional en materia de infraestructura, con el objeto de atención a las nuevas exigencias que se plantean
cotidianamente en el comercio internacional en relación con la carga y los navíos. Se busca de esta manera
"no perder competitividad frente a los puertos de la región, facilitando así la materialización de la inversión
en infraestructura, su mantenimiento y la administración portuaria", dice el texto del decreto.
En la medida en que se llevará a cabo el procedimiento licitatorio, se adoptarán medidas para unificar los
vencimientos de los contratos, con el fin de poder concesionar las terminales de esa jurisdicción como una
sola unidad de carga a un único operador portuario. Por ello se decidió prorrogar los plazos de vigencia de los
contratos de concesión de las terminales 1, 2, 3 y 4 hasta el 15 de mayo de 2020, dado que en esa fecha vence
la concesión de la terminal 5.
Durante noviembre se llevará a cabo un road show para presentar el proyecto ante los principales operadores
del mundo, a cargo hoy de las terminales de Rotterdarm, Barcelona, Hamburgo, Panamá, entre otras. Su
finalidad es mejorar la calidad técnica de los pliegos antes de su publicación, con la participación de expertos
y potenciales interesados.
El Puerto Buenos Aires opera más del 60% de la carga de contenedores del país. Tiene una capacidad de 1,5
millón de TEU por año y permite la operación de carga general y granel líquido. Las principales terminales
que operan con contenedores son la de Buenos Aires; Dock Sud; Zárate; Rosario y La Plata. Todas ellas
suman 3 millones de TEUS. Se espera que este año todos esos complejos operen con una ocupación cercana
al 56 por ciento
Más turistas
Además, es una de las principales terminales de cruceros del país, junto con las terminales de Puerto Madryn
y Ushuaia. El Gobierno Nacional apunta a alcanzar la meta de 1 millón de pasajeros, duplicando así la cifra
de la última temporada, cuando se registraron 490.000 pasajeros. En los últimos dos años se tomaron
distintas medidas orientadas a impulsar la industria, como la reducción de tasas migratorias y tarifas de
combustible, la reducción de costos logísticos y otras mejoras para el sector, como mejoras para los
pasajeros, innovación en movilidad sustentable y en la infraestructura de la terminal.
En la temporada de cruceros pasada, 2017/2018, el Puerto Buenos Aires registró un incremento del 20% en
comparación con la temporada anterior, con un 13% de aumento en cantidad de cruceros.
[BAE Negocios]
01/10/2018
By Rob Ward, Special Correspondent
Five key port terminals in Brazil are up for sale or in search of new investors, and their sales could further
concentrate terminal ownership in the country — something that, if certain circumstances lined up, could
lead to higher rates for shippers. The terminals‘ estimated combined value is 3.1 billion reais ($764.8 million)
to 3.3 billion reais.
Wilson, Sons group is rumored to be trying to sell two container terminals — Tecon Rio Grande (TRG) in the
country‘s far south and Tecon Salvador in the northeast — with an estimated 1 billion reais to 1.2 billion reais
price tag for the pair.
TRG is Brazil‘s fourth-biggest container shipping port and it handled 760,900 TEU in 2017, up 5.8 percent
from 718,500 TEU in 2016. It boasts a roughly 1.2 million TEU in annual capacity. Tecon Salvador is
Brazil‘s seventh-largest port and is the sole option in Salvador. It handled 301,129 TEU in 2017, down
slightly from 302,354 TEU in 2016. Tecon‘s annual capacity is about 500,000 TEU.
The other three terminals for sale or in need of investment are general cargo/container Terminal Santa
Catarina (TESC) in São Francisco do Sul; Libra Rio, a small container terminal owned by Libra Terminais;
and Pontal do Paraná, a new 2 million-TEU-capacity project on the outskirts of Paranaguá, which is looking
for investors to commit 1.5 billion reais in a greenfield site. Shareholders are keen to sell TESC, valued at
300 million reais; TESC lost its container business when Itapoa, 70 percent owned by Hamburg Sud/Maersk
Line, opened in May 2012. Meanwhile, Libra Rio is valued at 250 million reais to 300 million reais.
Tecon Rio Grande, Brazil. Photo credit: Wilson, Sons
The status of Brazil's independent port operators
―It‘s becoming more and more difficult for the independent Brazilian port operators to make a profit because
of the continuing concentration of the shipping lines,‖ said Robert Grantham, director of Navegantes-based
Terminal operators Brazil: Five terminals up for sale or in search for new investors
consultancy Solve Shipping. ―Therefore, Wilson, Sons and Libra have sensed an opportunity to cash in their
assets while they still have some value to prospective buyers, be they units connected to shipping lines and
international terminal operating companies.‖
Several consultants and banks have been brought in to evaluate the two Wilson, Sons terminals, including
São Paulo-based BTG Pactual investment bank, and several JOC.com sources said that a number of
international port terminal operators are showing a keen interest in the potential sale/tie up. DP World has
already had discussions with Wilson, Sons directors, one source told JOC.com.
Among the other international operators showing an interest are Hutchison Port Holdings and PSA
International, neither of which operates a terminal in Brazil, the economic powerhouse of South America,
with more than $2 trillion GDP. DP World (at Santos) and ICTSI (with Tecon Suape in the northeast) already
operate in Brazil. Meanwhile, APM Terminals has a presence in Itajai, Santos (a half share of Brasil
Terminal Portuaria along with Mediterranean Shipping Co.), as well as a presence in Pecem, and is also
rapidly expanding its Terminal 4 facility in Buenos Aires. (It is a favorite to win a new 35-year to 50-year
tender in the Argentine capital.)
According to several JOC.com sources, APM Terminals has a keen interest in Tecon Salvador but not in
TRG, where it could face market concentration concerns from the TCU, Brazil‘s anti-trust body, given its
presence in Itajai and Itapoa, in the state of Santa Catarina. (Santa Catarina can also serve the Porto Alegre
conurbation of 4.5 million people in the state of Rio Grande.)
CMA CGM is also interested in the two Wilson, Sons assets via its two operating arms: Terminal Link
(which has a 49 percent stake in China Merchants) and CMA Terminals. Last year, CMA CGM fulfilled a
20-year Brazil presence goal by buying Mercosul Line, the Brazilian coastal and cabotage carrier, from
Maersk Line, and now it wants to further develop its operation via owning container terminals in Brazil.
CMA CGM already has a close relationship with Libra Terminais, the beleaguered terminal operator which
is in the midst of a Chapter 11 bankruptcy process and trying to sell off assets, reorganize assets, or attract
new partners so that it can survive. In early 2017, CMA CGM switched its east coast South America and
SAMWAF services from Santos Brasil to Libra‘s Terminal 35 and has since then been drawing up plans to
get involved in the operations side with Libra there, and also in Rio de Janeiro.
―It looks very much as though Wilson, Sons is giving up the ghost in trying to compete on its own with the
big boys, and the terminals which are connected to the carriers,‖ said one experienced consultant, who has
worked closely with Wilson, Sons group over the past two decades. ―It is becoming harder and harder to win
liner services, if your terminal is not part of a shipping company — [such as APM Terminals, Terminal Link,
and Terminal Investment Limited] — or a multinational stevedoring company like DP World, PSA, or
Hutchison, which all benefit from economies of scale and cheaper financing.‖
Impact on shippers
However, this constant erosion of players in Brazil and the gradual diminution and disappearance of national
companies — such as Triunfo (at Portonave), Odebrecht TransPort (at Embraport in Santos), Libra
Terminais, Ecoporto Santos, Rodrimar, and local shareholders at TCP in Paranaguá (before the China
Merchants 2018 takeover) — from marine terminal operation may eventually lead to higher costs for
shippers as the multilayered ownership of terminals decreases.
Terminal operators Canada: Box growth buoys hub ports
Wilson, Sons executives are keeping a low profile, but the company has issued a statement, "Strategic
alternatives are being evaluated by the company's board of directors, which may include divestment of such
assets and/or attraction of strategic partners." Wilson, Sons port division has invested a substantial amount in
its two container facilities over the past five years and lauded this investment in its internal magazine
(NE/WS) earlier this year.
During its 180th anniversary, celebrated in 2017, Wilson, Sons CEO Cezar Baiao emphasized that Tecon
Salvador received three rubber-tire gantry (RTG) cranes last year and had spent 397 million reais since it had
been inaugurated in 2000. He added that TRG had invested even more, about 130 million reais last year, for
three ship-to-shore gantry cranes and eight RTGs, giving Brazil‘s southernmost container terminals the
possibility of acting as a hub for Mercosur trade cargo (including from Argentina, Uruguay, and Paraguay).
Still, some might argue that the emphasis on terminal operations by a company that operates 100 ships —
mostly offshore support vessels and tugs — suggests Wilson is already looking to put its container terminals
in the shop window, for a sale or new capital injection.
―With these acquisitions, Tecon Rio Grande can be considered one of the best container terminals in Brazil in
terms of equipment, with a total of 22 RTGs and nine STSs [ship-to-shore cranes] capable of serving ships
with 24 rows of containers,‖ said Baiao. TRG covers 735,000 square meters (879,053 square yards) and hosts
2,000 reefer plugs, one of the highest concentrations in Brazil.
Wilson, Sons also inaugurated a new inland terminal at the port of Suape, in northeast Brazil, which many
believed was a first step toward bidding for a new container terminal in Suape, but that goal will become
history, if it sells its two box terminals. Or, if the company becomes a partner with a major terminal operator
company or ocean carrier, it may lead to a successful bid for Tecon 2 Suape, with the addition of new capital.
The Philippines operator International Container Terminal Services Inc. currently operates Tecon 1 Suape.
[Journal of Commerce]
01/10/2018
By Alex Hughes
Canada‘s container ports are enjoying a surge in volumes which is spurring necessary capacity expansions to
cope with demand. Vancouver Fraser Port Authority for one is enjoying record-breaking volumes that have
cemented the need for new capacity.
In 2017, container traffic of 3.3m teu was a new record, equivalent to year-on-year growth of 11%. Laden
containers handled by Canada‘s largest box port went up by 2.8% to a new record of 2.8m teu. ―Containerised
growth can be attributed to growing demand for imports from key Asia markets, as well as containerised
exports of Canadian goods destined for Asia,‖ said a port authority spokesperson. For the first two quarters of
2018, the port authority reported additional growth of 5.1% in container traffic, which reached 1.6m teu.
In April, the port authority approved the permit application for the Centerm Expansion Project and South
Shore Access Project. Centerm, which is located on the south shore of the port's inner harbour, is DP World's
existing container terminal. If plans are approved, it will increase the terminal footprint by 15% and capacity
by approximately two-thirds.
In the meantime, work has been ongoing to upgrade Deltaport Terminal, which is Canada's largest. Capacity
of 1.8m teu was increased by 150,000-200,000 teu in November 2014, when a new causeway overpass
opened. In 2017, that was followed by the reconfiguration of the intermodal yard. The eventual aim is to add
a further 600,000 teu of capacity through additional rail sidings and road improvements, which include an
HGV staging area.
The port authority is also promoting the Roberts Bank Terminal 2 Project, a new three-berth container
terminal that will be built using port authority and private sector funding. This would add 2.4m teu capacity
and is due to come on stream in the mid-to-late 2020s. In addition, the port is to benefit from C$200m in
federal government funding to ease traffic congestion, improve cargo movement and set up more efficient
transport corridors.
Montreal’s movements
On the east coast, the Port of Montreal posted throughput growth of 6.2% last year, with traffic of 1.5m teu.
―Two growth drivers largely explain these very good results: the markets of Asia and the Mediterranean,‖
says Tony Boemi, the port authority's vice-president for growth and development. ―Asia now accounts for
24% of our international traffic, an increase of 14% compared to 2016. As for the Mediterranean, with a rise
of 9%, it represents 21% of international traffic.‖
Mr Boemi stresses that there are almost as many import containers as export containers, which is an
undeniable advantage for shipping lines. Transhipment currently accounts for 42%-43% of total international
box traffic.
Two new international container services were added in 2017. In the spring, CMA CGM announced an
agreement to partner with Hapag-Lloyd on its new NAWA (North America-West Africa) service, which links
the North African hub of Tangier Med with North America. Then, in September, Maersk commenced the
Med-Montreal service. More recently, Germany's Hamburg Süd Group launched a new service connecting
the Port of Montreal to the ports of Algeciras and Valencia in Spain, Fos-sur-Mer in France, and La Spezia
and Salerno in Italy.
Traffic remains buoyant into 2018, with throughput rising 6.5% to 813,665 teu in the first two quarters.
Exceeding expectations
In terms of capacity, the new Viau container terminal completed its first year of operation in 2017 with results
that exceeded expectations. In service since November 2016, Viau Terminal offers a 330-metre berth, an
intermodal zone, rail service and truck access roads. The second phase development will include the
installation of a second 330-metre-long berth, two more dockside gantry cranes and a complementary
container receiving area.
Once the second phase has been completed, terminal capacity will rise to 600,000 teu, boosting overall port
capacity to 2.1m containers. The next step in that direction is the project to build the Contrecoeur Terminal,
which will have a 1.15m teu capacity. Its commissioning is planned for the middle of the next decade.
Terminal operators India: APM Terminals to shut CFS at Nava Sheva after violence
Also in eastern Canada, the Port of Halifax handled record levels of boxes in 2017, with throughput up 16% to
559,242 teu, which is also a 34% increase over 2015. Lane Farguson, the port's communications advisor,
notes that vessels over 10,000 teu started calling as of June of 2017, with the largest to date being CMA
CGM's APL Salalah (10,798 teu). ―Containerised cargo remains strong. Throughput in 2018 is up 0.7% to
275,839 teu, with June being the highest volume month in the last ten years, with 51,707 teu,‖ he says.
Looking ahead, a significant amount of research and analysis has gone into the study of a second UCCV
Berth at the port.
Rupert’s expansion
On Canada's west coast, the Port of Prince Rupert reported a 2017 box throughput of 926,540 teu, up 26%
from the 736,663 teu handled in 2016. According to Brian Friesen, director of trade development and
communication at Prince Rupert Port Authority, this was partially explained by DP World's Fairview
Terminal being expanded in November 2017, bringing the total terminal capacity to 1.35m teu. Some of that
additional capacity was online prior to the completion of the project, which enabled the terminal to handle
more cargo. In the first seven months of this year, throughput has grown year-on-year by 16% to 591,335 teu,
resulting in an end-of-year forecast in the region of 1.05m teu.
In terms of capacity, the expansion of the Fairview Terminal, Canada's second largest, added a further
500,000 teu last year, bringing total capacity to 1.35m teu. Given the strong volume growth in both 2017 and
2018, the Port of Prince Rupert and DP World have recently agreed on the terms of a project development
plan that will see the terminal's capacity expanded again to 1.8m teu by 2022 as part of a Phase 2B expansion.
Work, which is scheduled to begin in mid-2019, will involve expanding the container yard from its current 32
hectares to 41 hectares. Two additional RTGs will also be acquired, along with an eighth quayside gantry
crane.
[Port Strategy]
01/10/2018
By Anirban Chowdhury
APM Terminals, part of the AP Moller-Maersk Group, will shut down one of its container freight stations
(CFS) at Mumbai‘s Nava Sheva port after two recent incidents of violence by retrenched workers, and daily
threats of more.
The facility will be shut down Thursday night, said Ajit Venkataraman, managing director for inland services
south Asia, where APM‘s CFS business is housed. The closure will affect 500 contractual workers, giving
rise to concerns over further violence. This is one of the two facilities at Nava Sheva, Venkataraman said.
Talking to ET, he did not rule out ―necessary action on the second one‖ if things were to get out of hand. Nava
Sheva is India‘s biggest container operating port. APM has 7 CFS facilities across the country. CFS is a
facility wherein freight shipments are consolidated or de-consolidated and stocked between transport legs.
In February this year, APM Terminals decided to retrench 99 contract workers at the facility to streamline
Container shipping: European Commission reviews liner shipping consortia
business and as part of overall cost cutting measures.
―There are a lot of changes happening in the business environment. There is Direct Port Delivery….
Customers are asking for much more value. We had to make sure our costs are sustained as well,‖ said
Venkataraman, explaining the rationale behind the layoffs. ―Business in general has also been decreasing in
that area. The cost structure was no longer sustainable: So we had to take some corrective actions.‖
Direct Port Delivery (DPD) is a global cargo clearance method, and is mandated by the Indian government in
Nava Sheva last year. In this, cargo is transferred straight from the terminal to the place of delivery, instead of
initially holding the goods at a container freight station.
On August 3, a bus carrying 17 employees of the CFS was stopped. The employees were pulled out, and
allegedly manhandled by a group of retrenched workers. They were threatened with more violence if they
showed up at work. APM appealed to the local police and got protection.
On September 10, a mob of 50 allegedly disgruntled workers and their family members pelted stones at a bus
that had employees and a policeman inside. A video footage accessed by ET showed women pelting stones at
the coach, breaking its windshield, while one other individual got inside and pulled the driver out. Another
shot showed a vehicle with a policeman being pelted with stones.
The violence prompted the decision to shut down the facility, given that ―the safety of employees was at
stake,‖ said Venkataraman. To be sure, the CFS business, especially in Nava Sheva, has seen a significant
decline after the enforcement of DPD. The aggressive enforcement had initially met with significant
opposition from CFS operators across the country over businesses concerns. DPD, however, is a globally
prevalent practice and cuts cargo dwell times considerably.
The company has taken other cost-cutting measures, too. Last year, APM Terminals gave pink slips to 40
employees at a container repair facility in Panvel. A case on the layoffs has been registered in the local labour
court.
[The Economic Times]
01/10/2018
By Chris Dupin
The European Commission is taking a look at how it regulates liner shipping. Last week it asked for
comments on the current legal framework that exempts liner shipping consortia from EU antitrust rules that
prohibit anticompetitive agreements between companies.
EU law generally bans agreements between companies that restrict competition. However, the maritime
Consortia Block Exemption Regulation allows, under certain conditions, shipping lines with a combined
market share of below 30 percent to enter into cooperation agreements to provide joint cargo transport
services.
―Where such consortia face sufficient competition, where they are not used to fix prices nor share the market,
their users may benefit from improvements in productivity and service quality. They are therefore exempted
from the prohibition of anticompetitive agreements in Article 101(1) of the Treaty on the Functioning of the
European Union,‖ the EC said in a press release that called for comments on the future regime for liner
shipping consortia.
The EC explained consortia agreements renewed every five years and the current block exemption for liner
shipping will expire on April 25, 2020. The EC said it has ―therefore launched a consultation seeking to
collect views from stakeholders to assist the commission‘s assessment of the impact and relevance of the
Consortia Block Exemption Regulation and to provide evidence for determining whether it should be left to
expire or prolonged and, if so, under which conditions.‖
In the past two years, the major liner carriers in the east-west trades have reorganized themselves into three
space sharing alliances — the 2M Alliance of Maersk and MSC; the Ocean Alliance of CMA CGM, COSCO
Shipping, OOCL (now 75 percent owned by COSCO) and Evergreen; and THE Alliance of Hapag-Lloyd,
Ocean Network Express and Yang Ming.
Data from BlueWater Reporting shows that in the Asia-North Europe trade, the Ocean Alliance has a 40
percent share, the 2M Alliance a 32 percent share and THE Alliance a 26 percent share. In the North
Europe-North America trade, Bluewater says the 2M Alliance has a 50 percent share, THE Alliance has a 30
percent share and the Ocean Alliance a 16 percent share.
While carriers share space on alliance ships they also compete vigorously with each other and the industry
had an operating loss of more than $3 billion last year. The European Commission said it is seeking the views
of shipping companies, shippers, freight forwarders, port operators and their respective associations. Other
interested parties include industry analysts, academics and law firms specializing in competition law and the
maritime sector. It also said it will consult the competition authorities of the EU member states. All
stakeholders are invited to submit their views on the commission‘s consultation website until Dec. 20.
In its most recent annual report, the Global Shippers Forum said, ―The consequences of market concentration
for shippers are fewer services to choose from and reduced competition.‖ GSF said it ―believes existing
competition laws need to be reviewed in response to the changing nature of the container shipping market,
and regulators may need to adapt or reform their competition and regulatory procedures to ensure that
effective competition is maintained to the benefit of shippers and, ultimately, the consumers they serve.‖
Carriers are subject to multiple and overlapping regulation regimes around the world. In the transatlantic
trade, for example, they are subject to not only regulation by the EU competition authorities, but the Federal
Maritime Commission in the U.S..
In testimony to the Subcommittee on Surface Transportation and Merchant Marine of the U.S. Senate
Committee on Commerce, Science and Transportation this April, Acting Chairman of the Federal Maritime
Commission Michael Khouri noted, ―The ocean liner industry has been in a state of vessel oversupply for
several years. The low freight rate structure in U.S. trade lanes is a direct reflection of that capacity
supply/demand imbalance and American exporters and importers have been the beneficiary of those low
freight rates.‖ However, he cautioned, ―Such supply imbalances will not last forever.‖
Khouri said even after the consolidation in the liner shipping industry, neither the transatlantic nor
transpacific trade lanes are concentrated when examined using a measure called the Herfindahl-Hirschman
Index (HHI). He noted in its merger guidelines, the Department of Justice‘s antitrust division regards markets
as not concentrated if the HHI is below 1,500. By that measure the HHI for the North Europe-U.S. trade is
1,179, for the Asia-U.S. West Coast 826, and for the Asia-U.S. East Coast 943. The HHI for the
Mediterranean-U.S. trade is higher: 2,114.
Port development Poland: €313 million contract awarded for deepening and widening of
Świnoujście–Szczecin fairway
Port development Germany: Environmental organizations appeal against Elbe deepening
plan
Khouri said, ―A reassuring data trend shows that even with the wave of mergers and acquisitions and new
carrier alliance groupings, the individual ocean carriers within each alliance continue to independently and
vigorously compete on pricing. Further, individual ocean carriers within the alliances continue to add and
withdraw vessels from trades both inside and outside the alliances in which they participate, demonstrating
that competition remains in both vessel capacity decisions and pricing decisions within the alliances.‖
[American Shipper]
01/10/2018
The Maritime Office in Szczecin awarded a €313 million contract for the modernisation of the
Świnoujście–Szczecin fairway in Poland to Van Oord Dredging and Marine Contractors and Dredging
International, a DEME Group subsidiary.
The investment by the Maritime Office in Szczecin will improve access to the Szczecin seaport and increase
the port capacity to handle a growing volume of cargo. The project is a design and build contract to deepen
and widen the fairway along a section of approximately 62 kilometres from -10.5 to -12.5 metres. The
dredged materials will be used to build two artificial islands in the Szczecin lagoon.
The works further include enforcements of slopes and quay walls along the channel, relocation of cables and
navigational aids. Works will start by end of 2018 and are expected to be completed in 42 months. The
contract has a value of approximately €313 million and is co-financed by the European Union.
[Baird Maritime]
01/101/2018
German environmental organizations BUND, NABU and WWF have lodged a legal appeal against the Elbe
deepening plan, shortly after all lawsuits against the project were completed.
However, the appeal is not expected to freeze the project which has received the ―all clear‖ to start. As
explained by NABU‘s Alexander Porschke, halting of the process is not being pursued as there is little
likelihood the court would agree to it. Previous court rulings on claims regarding noise pollution, erosion
fears as well as environmental concerns have been made in favour of the dredging plan, with the court giving
priority to the ―public interest stemming from the deepened Elbe waterway.‖
Last year, the country‘s Federal Administrative Court approved in principle the plan stating that it needed to
be revised due to ―the violation of the habitat protection law.‖ The planning procedure for fairway adjustment
on the outer and lower Elbe has now been completed with the supplementary planning approval being granted
in August. Hence, the legal preliminaries are now in place that will enable the construction to start, making
way for more megaships to come to Hamburg port.
Port development Myanmar: Government cuts cost of China-funded port project by 80%
Around 130 kilometers of the river is planned to be dredged, enabling boxships with a 14.5-meter drought to
reach the port, against 13.5 meters at present. The tender procedure is expected to start shortly, with the
dredging itself estimated to be launched in March 2019.
Nevertheless, BUND, NABU and WWF believe the project still doesn‘t meet the legal requirements on
nature conservation. According to Manfred Braasch from BUND Hamburg, the Elbe deepening isn‘t
ecologically or economically justifiable. Braach said that the ecological consequences of the project are
underestimated, adding that the cost, which is approaching EUR 1 billion (currently standing at around EUR
700 million) is too high considering the alternatives in the form of cooperation between North German ports.
In addition, the organizations said they plan to seek damages from the competent authorities for the
environmental consequences from the previous dredging project carried out in 1999.
[World Maritime News]
01/10/2018
By Yuichi Nitta, Nikkei staff writer
Myanmar has agreed to scale down a Chinese-led port project in the western state of Rakhine, slashing the
initial price tag to $1.3 billion from $7.2 billion over concerns about excessive debt.
The development is located in the special economic zone of Kyaukpyu, a natural harbor facing the Indian
Ocean that is suited for large ships. They already have oil pipelines running to China and a port capable of
docking 300,000-ton tankers.
"Myanmar has been highly successful in re-negotiating the Kyaukpyu deep-sea port," said Sean Turnell, an
economic advisor to State Counsellor Aung San Suu Kyi. "Myanmar's model of dealing with Kyaukpyu
could be replicated by other countries as well."
Myanmar was able to reduce its financial burden while saving face for China, which intends to make the zone
a key point in its Belt and Road Initiative. Construction will be completed in
85
Port & Shipping News 40/18 (01 – 07 Oct 2018)
Uwe Breitling - Port, Transport & Training Consultant
four stages as originally planned but will not proceed to the next phase until certain demand conditions are
met, said a high-level Myanmar official.
In the first stage, worth roughly $1.3 billion, one wharf capable of mooring two to three ships will be built.
The original plan called for two wharves for more than 10 ships. Additional investment will be made to
expand the port if usage and profits are strong. A framework setting up such targets will be agreed upon this
year.
Both countries will invest in the project. A Chinese consortium led by state investment company Citic Group
will take a 70% stake, while the Myanmar government and 42 domestic companies hold the rest. Citic is also
leading a separate group that will develop an industrial park within the special zone, investing $2.7 billion for
a 51% stake
Ship management: Ship operating costs decline for sixth successive year
Credit: Nikkei Asian Review
Myanmar decided to renegotiate the deal after viewing the situation in Sri Lanka, which recently handed over
the operating rights to a Chinese-funded port for 99 years after it had trouble paying back the loans.
Most of Myanmar's capital for development comes from China. "It is possible that we will have to cede some
ownership to China if our business slows and we are unable to repay our debts," a representative of a local
company said.
The Myanmar government won concessions by negotiating aggressively, as anxiety spreads in Beijing due to
growing suspicion toward Belt and Road projects among participating countries. The compromise also has
benefits for China. The success of recent talks could make Myanmar more amenable to Belt and Road
projects in the future. Myanmar's Planning and Finance Minister Soe Win signed a memorandum of
understanding on Sept. 9 in Beijing for the China-Myanmar Economic Corridor, a comprehensive framework
covering projects in 12 fields, such as transport, power and border trade.
"There is flexibility on the both sides to make it work," another person who has been involved in the
negotiation told Nikkei Asian Review. "Now the atmosphere between the parties is very constructive.‖
[Nikkei Asian Review]
01/10/2018
International accountant and shipping consultant Moore Stephens says total annual operating costs in the
shipping industry fell by 1.3 percent in 2017.
This compares with the 1.1 percent average fall in costs recorded for 2016. For the third successive year, all
categories of expenditure in 2017 were down on those for the previous 12-month period, most notably for
insurance costs and stores.
Operating costs for the tanker, bulker and container ship sectors were all down in 2017. On a year-on-year
basis, the tanker index was down by three points, or 1.7 percent, while the bulker index also fell by three
points, or 1.9 percent, with the decline in both indices repeating that seen in the previous year. The container
ship index, meanwhile, was down by two points, or 1.3 percent, compared to the fall in the previous year of
one point, or 0.6 percent.
There was an 0.1 percent overall average fall in 2017 crew costs, compared to the 2016 figure, which itself
was 0.4 percent down on the previous year. By way of comparison, the 2008 report revealed a 21 percent
increase in this category. Tankers overall experienced a fall in crew costs of 0.5 percent on average, compared
to the 1.8 percent fall recorded in 2016. The most significant reduction in tanker crew costs was the 1.7
percent recorded by Aframax Tankers.
For bulkers, the overall average fall in crew costs in 2017 was 0.6 percent, the same as the figure recorded for
the previous year. Panamax Bulkers and Handysize Bulkers each reported increases in crew costs, of 0.5
percent and 0.4 percent respectively, while for Capesize Bulkers and Handymax Bulkers there were
reductions in spending compared to 2016 of 0.8 percent and 0.6 percent respectively.
There was no overall increase in expenditure on crew costs in the container ship sector in 2017, this compared
to the 1.1 percent fall recorded for 2016.
Expenditure on stores was down by 3.5 percent overall, compared to the fall of 2.9 percent in 2016. All
vessels in all categories recorded a fall in such costs for 2017. In the tanker sector, the most significant fall in
such costs was the 5.5 percent posted by VLCCs. Handymax Bulkers led the way in the bulker sector with a
5.2 percent reduction in stores expenditure, while in the container ship sector vessels of between 6,000 and
10,000 teu spent 5.8 percent less on stores than they did in 2016.
There was an overall fall in repairs and maintenance costs of 1.7 percent, compared to the reduction of 0.8
percent in 2016. The only vessels to record increases in such costs were Capesize Bulkers and Panamax
Bulkers (2.4 percent and 1.4 percent respectively), Tankers 5,000 to 10,000 dwt (2.6 percent), and container
ships of between 1,000 and 2,000 teu (2.7 percent). The biggest fall in such costs was the 4.9% recorded by
Chemical Tankers 40,000 to 50,000 dwt, followed by VLCCs (4.8 percent), and Handysize Product Tankers
(4.5 percent).
The overall drop in costs of 4.1 percent recorded for insurance compares to the 3.0 percent fall recorded for
2016.
[The Maritime Executive]
01/10/2018
By Will Owen
Leading ship operators and the International Association of Ports and Harbours (IAPH) have consulted on a
new tool, developed to ensure safer and more sustainable LNG bunkering.
The tool ensures that the responsibilities of bunker facilities operators (BFOs) relating to safe and sustainable
business operations are clearly demarcated and that there is a careful examination of how the LNG bunker
operations are set up.
This tool has been developed in consultation with international players in the shipping sector: IAPH, Titan
LNG, Bureau Veritas, large oil and gas companies such as Shell and ship owners such as NYK and Carnival
Corporation. The objective is for it to become the standard tool worldwide.
Peter Alkema of Port of Amsterdam and chairman of the working group says: ―We fulfil two aims through the
IAPH audit tool. First the tool supports port authorities to carry out the decision-making process relating to
granting permits to LNG bunker facility operators in their ports in a uniform manner. Secondly the tool gives
collaborating ports, which are members of the IAPH, the opportunity to share audit results and information on
a BFO‘s safety performance.‖
As a result, a port does not have to go through the entire audit process again if a BFO has been audited before.
Alkema: ―This is also advantageous for BFOs. This is because the BFO does not necessarily have to be
audited again when it applies for a permit in a port that is a member of the IAPH. This makes the process more
efficient and accessible.‖
The first ship-to-ship LNG bunker facilities are now being realised in ports, including the Port of Amsterdam
where Titan LNG will locate with bunker ship Flexfueler 001 late this year. Port of Amsterdam is also
preparing for the arrival of LNG ships in this way. Based on the global order book, the number of LNG-
fuelled ships is expected to nearly double by 2024. Research conducted by DNV-GL reveals that LNG will
be the transition fuel for shipping in the years ahead en route to carbon-free fuels.
Alkema said the working group is convinced that through the introduction of a standard model for granting
permits for LNG bunker operations, it will also be possible to apply the lessons learned and the employed
methods to other alternative fuels, such as hydrogen and methanol. ―So we are also looking at future
sustainable fuels,‖ he concluded.
[LNG Industry]
Bunkering: New tool for safe and sustainable LNG bunkering
01/10/2018
Advancements designed to enhance navigational watch efficiency and decrease human error.
Source: NYK
NYK said it has completed development of a new concept for a ship‘s bridge and employed it on a large
containership. The integrated information and bridge system has been optimally and ergonomically arranged
and designed to take advantage of Internet of Things aspects of instruments and to improve the safety and
efficiency of vessel operation, NYK said.
Half of marine accidents are said to be caused by human error, according to NYK, which said it has been
studying ways to improve the bridge, enhance navigational watch efficiency and decrease mistakes since
2007.
The new concept makes use of an integrated console that is about two-thirds the size of a conventional one
and enables officers to check essential navigational information and navigate the vessel at the same time.
NYK said a seat helps officers better grasp the situation around the ship.
―A joystick-type autopilot system for navigation has been adopted to better avoid collisions with other vessels
and help officers in a sitting position easily maneuver the vessel,‖ NYK said. ―Moreover, a mini manual
wheel has been installed on the console for steering in an emergency, taking safety into consideration.
―The new bridge has been equipped with larger windows, and the gap between the windows has been
minimized to reduce dead visibility angles,‖ the company said. ―Wipers are now operated by remote control.
Navigation: NYK introduces next-generation ship’s bridge
And the shape of the bridge has been optimized to ensure clear sight from a sitting position. The layout has
also been enhanced to improve the work environment and reduce weariness during navigational watches.‖
At the bridge wing, a narrow walkway extends outward from both sides of a pilothouse, allowing the ship to
be maneuvered for entering and leaving harbors and berthing and unberthing operations, NYK said. The wing
is equipped with an integrated control stand that can remotely control the main propulsion, rudder and bow
thruster.
The J-Marine NeCST ship navigation support tool, which was jointly developed by NYK, MTI Co. Ltd. and
Japan Radio Co. Ltd. to make briefings among the officers and the pilot more efficient, also has been installed
on the bridge. NYK said this will help improve bridge resource management, even when many officers are on
the bridge conducting navigational watches during heavy vessel traffic.
NYK said has decided to adopt the new bridge on pure car and truck carriers and crude oil tankers. It also
plans to make use of the advancement as it looks ahead to manned autonomous ships.
[American Shipper]
PROFESSIONAL MEMBERSHIP
Advance 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
Spain
Mr. MELARAYIL
GANGADHARAN SIBIN
India
Mr. Archisman Lahiri
India
Full Member (MIAMSP)
Mr. MARTINS Jorge
Brazil
Mr.Andrianombana Lanja Achille
Madagascar
M. Subbiah Thiyagarajah
Malaysia
Affiliate (AFFIAMSP)
M. Kirton Christopher
Singapore
M. Hubert Louis-philippe
France
Mrs. HELENA ISABEL
CAMPOS LANÇA PALMA
Portugal
UPCOMING EVENTS SUMMARY
October
LIQUEFACTION OF BULK CARGOES SEMINAR 18
America Square (Cavendish Venues), London
October GST & SHIPPING 2030 DIGITAL WEEK
22
Webinar London, 56273
October SCRUBBER SYSTEMS 2020
30
The Hallam (Cavendish venues), London
November
IRANIMEX 05
Kish International Exhibition Center Hormozgan Province Kish, 79417-83775 Iran
November GREEN SHIP TECHNOLOGY NORTH AMERICA
12
Intercontinental Times Square 300 W 44th St New York , 10036
November
SHIPPING2030 NORTH AMERICA 12
InterContinental New York Times Square 300 W 44th St New York, 10036
February 2019
12th Arctic Shipping Summit – Montreal
21
Montreal - venue TBC
April 2019 COPENHAGEN SHIPPING SUMMIT
21
The Øksne Hall Halmtorvet 11 Copenhagen, 1700 Danmark