international association of marine and shipping ... – 23 jun 2019.pdf · prices would spike. the...
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International Association of Marine and Shipping Professionls
NEWS BULLETIN 25 – 23 Jun 2019
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
23/06/2019
Escalating trade hostilities between the US and China spells bad news for the Transpacific container trade but
should also result in higher volumes of intermediate goods.
When it comes to trade, any dispute between two countries, particularly when it is between the world‘s two
largest economies, has far wider ripple effects. Numerous countries and industries are involved at some stage
of the supply chain to make sure the finished product ends up in a store on 5th Avenue in New York, even if
customs only logs the last point of origin.
The fragmentation of production that really took off this century thanks to advances in technology and
China‘s ascension has been a massive boost to container shipping. The movement of intermediate items
necessary to the make the final product account for over half of world trade in goods, according to the OECD
(see Figure 1). More fragmentation means more need for transportation services and vice versa.
Figure 1: World gross exports measured by value added (US$m)
Note: Data refers to all industries, including services
Potential losers in this trade war will be those countries that provide the raw materials and semi-finished
goods to China that go into the re-export of the final products to the US. The US itself could suffer as China
uses up some of its exports for re-exports.
The thing is that China has developed its manufacturing capacity to such an extent that it barely needs inputs
from the rest of the world to support its exports, which should limit the collateral damage.
Using data from the UNCTAD-Eora database that measure trade in value added to better apportion
individual countries‘ contribution to trade (something that gets lost in bilateral trade statistics) China‘s share
of foreign value added in gross exports (the amount of value added upstream in the supply chain previously
by other countries) has been shrinking since the start of this decade from 19% in 2010 to 13% as of last year.
Germany, the world‘s largest exporter in gross value added terms, requires far more inputs from abroad to
support its highly fragmented car industry, with a foreign value added ratio of 36%.
INTERNATIONAL news
International trade: How the trade war might benefit shipping
Figure 2: Value added share of exports 2018 by selected countries (US$m)
Source: UNCTAD-Eora GVC Database
China‘s hogging of production is partly responsible for the slowdown in world trade witnessed in the past few
years and its ever-growing self-sufficiency makes us less fearful of the spill- over effects from the trade war
on global container flows. This should be a fairly isolated affair with the Transpacific bearing the brunt,
compensated to some degree by trade diversion.
Assuming this week‘s G20 summit in Osaka, Japan doesn‘t suddenly reverse the situation and the US goes
ahead with plans to subject all Chinese imports to extra duties, the new protectionist world could bring some
benefits to container shipping lines.
As final goods sourcing moves to countries currently without the same manufacturing eco- system as China
they will require more intermediate inputs, meaning more production fragmentation. Where those links
establish themselves will determine how beneficial the process is for shipping lines. More intra-Asia trade
will boost demand for shipping services and put a greater onus on smaller feeder ships, whereas greater
regional trade in North America and Europe would be less advantageous due to overland opportunities.
Is this the end of China’s export dominance?
The simple answer is no, not in the short-term. While we do foresee some erosion of its market share in
outbound container flows to the US, the sheer size of its export machine means that it cannot be replaced
overnight. China was responsible for around one-third of all US finished goods imports last year, when
measured in bilateral trade, twice as much as the rest of Asia combined.
Figure 4: Share of US imports of finished goods by bilateral region of origin (US$)
Even the trade diversion visible in the customs statistics is possibly a false flag for China‘s supposed demise.
Bilateral data shows that Vietnam is one of the fastest growing exporters to the US, but the country‘s
government recently announced that it is cracking down on Chinese goods being relabelled with ―Made in
Vietnam‖ tags. The rise in Chinese exports of intermediate goods to South East Asia does give credence to
the allegations of tariff gaming (see Figure 5). If true, this illegal practise offers shipping lines some welcome
illicit extra business, but it does not suggest that places like Vietnam are anywhere close to being a
ready-made export destination replacement.
Figure 5: China exports of intermediate products to South East Asia (US$bn)
Source: China customs data
Our view
There will be some short-term disruption to the container market as new trading links are developed, but
further fragmentation of production will boost the need for shipping, assuming demand levels are sustained.
For the foreseeable future China will remain the world‘s container export hub, albeit a slightly smaller one.
[Drewry Container Insight Weekly]
21/06/2019
But disruptions to global oil markets would probably not last long.
The Strait of Hormuz, a narrow stretch of water connecting the Persian Gulf to the rest of the world‘s oceans,
has long been recognised as the most important choke-point for global oil supplies. Accounting for about a
third of the world‘s sea-borne oil (and a fifth of the world‘s total oil exports), the strait links oil and gas
producers in the Middle East with consumers around the globe, including those in Europe, Asia and America.
In 2016, according to America‘s Energy Information Administration, the waterway carried some 19m barrels
of crude and other petroleum products a day. Were it to be blocked, the world‘s supply of oil would fall, and
prices would spike.
The risk of such an event is growing, and oil prices are rising as a result. In May last year, President Donald
Trump pulled out of a nuclear deal with Iran and reimposed crippling sanctions on the country. Hassan
Rouhani, Iran‘s president, responded by threatening to block
Oil shipping: US-Iran tensions threaten the world’s most important oil-shipping route
important oil-shipping route
oil shipments; if Iran could not export oil, nor could others. Tensions have escalated further in recent days. On
June 13th two ships were attacked in the Gulf of Oman. On June 20th an American surveillance drone flying
over the strait was shot down by Iran‘s Islamic Revolutionary Guard Corps. After tweeting that ―Iran made a
very big mistake!‖, Mr Trump reportedly ordered military strikes on Iran—only to change his mind hours later.
Source: EIA / The Economist
One interpretation of the recent attacks on ships—if they were carried out by Iran, as America claims—is that
they are intended to signal Iran‘s readiness to act on its threat to block the waterway. The country could try to
block the strait using speed boats, anti-ship missiles and mines. But doing so would probably be a desperate act
of last resort. Iran would be risking a war with America and its regional allies. And military analysts think that
America‘s Fifth Fleet, based in Bahrain, would be able to re-open the waterway within weeks. In the meantime,
at least some of the oil from Saudi Arabia and the UAE could be rerouted via pipelines away from the Strait of
Hormuz.
[The Economist]
21/06/2019
By Alaric Nightingale and Firat Kayakiran
Oil tanker owners are raising the prices they charge to export Middle East crude as tensions surge in a region
that accounts for about a third of all seaborne petroleum shipments.
Rates for transporting 2 million-barrel cargoes from Saudi Arabia to China jumped to almost
$26,000 a day on Thursday, more than double where they were at the start of June, according
to Baltic Exchange in London. Shipbrokers report a surplus of vessels in the Persian Gulf, indicating that
owners are reluctant to accept charters at low rates given the current risks.
Oil shipping Mideast: Rates are surging
―Nothing much has changed in terms of supply and demand since the latest attacks, so it‘s
pretty much all a risk premium,‖ said Halvor Ellefsen, a shipbroker at Fearnleys London.
A survey of shipbrokers involved in the Middle East trade shows they anticipate there being 22% more ships
available for charter in the next four weeks than probable cargoes. That‘s a smaller surplus than last week but
still higher than normal for the time of year.
Trading paused
Despite the glut, vessel owners including Frontline Ltd., one of the world‘s biggest operators of supertankers,
briefly paused charters in the immediate aftermath of the latest round of attacks in the region last week. The
U.S. blamed Iran for those incidents, something the Persian Gulf country denied.
Insurance rates also soared after those incidents, with companies charging at least $180,000 in premiums to
go to the Persian Gulf. They were about $30,000 early this year before tensions began to escalate.
Since then, frictions have continued to mount. Iran shot down an American drone on Thursday. The U.S. got
to within hours of counter strikes until U.S. President Donald Trump abandoned the plan. Earlier this week, a
rocket landed near an oil field workers‘ camp in Iraq.
Tanker rates are still not particularly high by historic standards. The $26,000 a day that owners are earning
from very large crude carriers, or VLCCs, compares with as much as $177,000 in July 2008 around the time
that oil prices were surging to a record. Oil companies are paying about $1.31 a barrel for shipments to Asia,
according to data compiled by Bloomberg
―VLCC rates continue to rise out of the Middle East Gulf, where modern ships are receiving a premium,‖
said Pareto Securities AS shipping analysts Eirik Haavaldsen and Wilhelm Flinder said in a note. War
premiums are ―starting to show for real.‖
[Bloomberg / BIMCO]
21/06/2019
Work on the Barra do Dande Ocean Terminal in Angola‘s Bengo province, designed to store about 1.2 million
cubic metres of fuel, is expected to start again soon after a two-year shutdown, state newspaper Jornal de
Angola reported.
The information was provided by Sonangol Logística‘s director of engineering and projects, Joaquim Kiteculo,
during a visit by the Minister of Oil and Mineral Resources, Diamantino Azevedo, to the project created to
provide Angola with greater onshore fuel storage capacity.
Kiteculo did not, however, name a date for work to resume. According to Angolan news agency Angop, the
project currently stands at a physical and financial execution of around 25% and cost more than US$23 million
until 20 August 2016, when it was suspended by the Sonangol board of directors. The planned investment for
the Barra do Dande Ocean Terminal was US$1 billion.
Initial work on the project began in 2013 to initially store 641,500 cubic metres of refined fuel and reach
maximum capacity after completion, becoming the first and largest reservoir on land in Angola, in an area
equivalent to 220 football fields. The 29 tanks designed for the first phase are expected to store 360,000 cubic
metres of diesel, 160,000 cubic metres of gasoline and 80,000 cubic metres of Jet-A1.
[Macauhub]
21/06/2019
By Sam Chambers
Investigators have found more cocaine than initially reported onboard the MSC Gayane with further arrests
in one of the largest drugs busts in recent American history.
Oil shipping Angola: Construction of the Barra do Dande Ocean Terminal to be resumed
Drug trafficking U.S.: More arrests as authorities take action against MSC after seizing 17.5 tons of
cocaine on MSC Gayane
Four more crew members of the 120,500-dwt container ship have been arrested along with the initial pair as
seafarers are grilled about how the illicit drug came onboard the huge ship that was raided on Monday morning
when it docked at the Port of Philadelphia. The authorities have now weighed 17.5 tons of cocaine, one ton
more than originally reported, taking the street value of the haul to in excess of $1.1bn.
Embarrassingly for the Geneva-based Swiss Mediterranean Shipping Company (MSC) – owner and operator
of the MSC Gayane registered under the flag of convenience (FOC) of Liberia – this is the second drugs bust on
one of its container ships at the same port in the space of just three months.
In the wake of the contraband find, the US Customs and Border Protection (CBP) has temporarily suspended
MSC‘s Customs Trade Partnership (C-TPAT) certification, meaning US authorities for the time being do not
assess the carrier as ‗low-risk‘ so more scrutiny of its shipments can be expected in the coming days and weeks.
MSC admitted in a client advisory
yesterday that clients can expect ―minimal disruption‖ from the C-TPAT decision. C-TPAT a voluntary
partnership between governments and carriers to ensure supply chain security.
―MSC will continue to collaborate with authorities worldwide, to ensure our vessels are secure and can deliver
our customers‘ cargo safely and reliably,‖ MSC stated yesterday.
According to court documents, second officer Ivan Durasevic allegedly admitted to his role in bringing the
cocaine onboard the vessel. ―Upon leaving Peru on this current voyage, he got a call from the Chief Officer to
come down to the deck, at which time he saw nets on the port side stern by the ship‘s crane,‖ the complaint said.
―Durasevic and approximately four other individuals, some of whom were wearing ski masks, assisted in the
pushing of the nets toward Hold Seven or Eight of the vessel.‖ Durasevic said he was paid $50,000 by the chief
officer, who has not been identified.
Another crew member, identified as Fonofaavae Tiasaga, also allegedly admitted to partaking in loading
cocaine on the ship, including on a previous voyage, the complaint said. ―Prior to departing on the voyage, the
ship‘s Electrician and the Chief Mate also approached Tiasaga and asked if he was willing to help again,‖ the
complaint states. ―According to Tiasaga, each of these four crewmembers coordinated individual loads of
cocaine.‖
The court documents also allege that at least twice while the ship was en route between stops in Chile and
Panama, numerous smaller boats approached the MSC Gayane at sea to hand off large bundles of the illicit
drug.
In March another MSC vessel, the 9,400 teu MSC Desiree, was raided when calling at Philadelphia and a stash
of cocaine worth $38m was found onboard.
[Splash / Equasis / MarineTraffic.com]
21/06/2019
By David Wren
A Portuguese shipping company admitted this week that it illegally dumped oily bilge water into the ocean and
falsified records to cover up the crime.
Portline Bulk International, the Lisbon-based Portuguese operator of the 50,992-dwt bulk carrier Achilleus
registered under the flag of convenience (FOC) of Malta since 2001, pleaded guilty in federal court in
Charleston on Thursday to obstruction and violating the Act to Prevent Pollution from Ships. The company has
agreed to pay a $1.5 million fine and must create an
environmental compliance plan that will be monitored by third parties. The shipping line will be sentenced at a
later date.
The guilty plea comes days after two of the company‘s engineers were sentenced to three years of probation
for falsifying the oil record book of the Achilleus to conceal a series of overboard discharges of oily
wastewater while they were stationed on the vessel.
Chief engineer Anatoli Zotsenko and Valerii Pastushenko, the ship‘s second engineer, will also pay fines
totaling $12,500. Both men are banned from entering a U.S. port during their probation period. The falsified
information was discovered by U.S. Coast Guard inspectors while the Achilleus was docked at the Port of
Charleston in Aug 2018 and led to a nine-day detention of the vessel.
―The world‘s oceans are not a dumping ground for criminals who seek to evade our nation‘s environmental
laws,‖ Jeffrey Bossert Clark, assistant attorney general for the Justice Department‘s Environment and
Natural Resources Division, said in a statement.
It‘s illegal to dump bilge water into the ocean without first running it through an oil-water separator. All
discharges, even those in which the oil-water separator isn‘t used, are supposed to be recorded in an oil
record book, according to international regulations.
Court records show Achilleus crew members regularly bypassed the separator by running bilge water
through a hose — sometimes referred to as a ―magic pipe‖ — that leads to an overboard discharge valve. The
oily discharges were not documented.
―The practice was to hook up the bypass hose a day or two after the ship left port and leave it connected,
under the deck plates, during the oceanic voyage,‖ court documents state. ―Before entering a new port, the
Marine pollution U.S.: Operator of Malta-flagged bulk carrier fined $1.5 million for oil pollution and
falsifying records
hose was disconnected and hidden in a storage room.‖
The illegal discharges took place over at least a 16-month period that started in April 2017, court records
show. This is at least the second case in which a foreign-operated vessel has been charged with dumping oily
bilge water in the ocean near Charleston.
Aegean Shipping Management of Greece paid a $2 million fine in 2017 after admitting crew members on its
Green Sky tanker vessel used a similar hose to bypass that ship‘s oil-water
separator. Those crew members also falsified the ship‘s oil record book to cover up the pollution.
[The Post and Courier]
21/06/2019
Development and projected growth of inland ports, particularly in the Midwest, is increasingly critical to the
nation‘s supply chain.
―The nation‘s inland port system clearly plays a critical role in the global supply chain,‖ said Mary Lamie,
executive director of the St. Louis Regional Freightway, which coordinates regional freight development
efforts by connecting the private and public sectors.
An inland port is a rail or a barge terminal connected to a seaport via regular inland transport services — or
intermodal hubs. Intermodal operations move cargo in shipping containers by more than one mode — though
primarily by rail.
There is an array of logistical activities linked with inland ports, including distribution centers, warehouses
and logistical service providers. The advantage of these hubs, also called ―dry‖ ports, is that more goods get
pushed closer to their destination faster.
Aaron Ellis, spokesman at the American Association of Port Authorities (AAPA), said inland ports diminish
stress on high-traffic East Coast and West Coast ports. ―The whole purpose of these inland ports is they are
developing to serve as a relief valve,‖ Ellis said. ―Ports up and down both the East Coast and the West Coast
are creating inland ports to be able to create these efficiencies.‖
John Young, surface transportation policy and legislation director for AAPA, said inland ports are also at the
crux of developing domestic strategy. ―Our ports identified that 34% of them have working agreements with
inland ports. This is a model that is happening throughout the country,‖ Young said. ―It‘s about strategic,
logistical approaches to moving freight.‖
The Midwest agriculture industry is preparing to meet the competitive logistics needs of farmers and the role
of local ports by supporting infrastructure investment, experts said. The inland port strategy is also key in
moving domestic goods, especially in the Midwest. For example, Illinois is bordered by the Ohio River on
the south, Mississippi River on the west and the Illinois River running right through it.
Scott Sigman, transport and export infrastructure lead for the Illinois Soybean Association, said the web of
infrastructure that inland ports create in the Midwest is crucial. ―The primary pathway for soybeans for
export starts really on the rivers that surround Illinois, for our 43,000 soy farmers here in the state,‖ Sigman
said. ―Sixty percent of our exports are going to the Gulf and about 25 to 30% are going to the Pacific
Northwest by rail. So, the inland port network is really critical.‖
Inland waterways U.S : The push for inland port development
[Transport Topics]
21/06/2019
A contract has been awarded for a new container terminal at the Port of Townsville in Queensland, Australia.
Townsville construction company Formset has been awarded a $10 million contract for the 1.6-hectare
container terminal which is part of the Townsville Port‘s A$30 million Crane and Cargo Terminal project at
Berth 4. The $30 million project adds to major capacity-expanding projects at the port, including
construction of the $48 million intermodal facility, $193 million port channel upgrade and the completion of
the $40 million Berth 4 upgrade.
Formset Managing Director, Brent Zander said the construction of the Berth 4 Cargo Terminal Area was
expected to take up to 36 weeks to complete.
The volume of freight moving across Queensland is expected to grow more than 20 percent, and the terminal
is expected to boost trade through northern Australia‘s largest cargo port. The port is Australia's largest
exporter of zinc, copper, lead and fertilizer and its eight berths connect to over 130 ports around the world.
[The Maritime Executive]
[The Maritime Executive]
21/06/2019
Texas Governor Greg Abbott has bowed to Houston oil and gas interests in signing into law restrictions on
containership traffic moving to and from the Port of Houston.
Port development Australia: Expansion of Port of Townsville
Port development U.S.: Containerships face restrictions in spat with Houston oil and gas interests
Promoted by the local oil and gas industry, but opposed by other maritime interests, namely the dockers union
and their employers in the United States Maritime Alliance, the law is unpopular with most mariners.
Houston is a fast-growing container port, and energy companies have been concerned that large
containerships could result in one-way traffic along the Houston ship channel, hampering tanker traffic.
Gov Abbott signed the legislation even though the Port of Houston Authority and Houston Pilots had taken
steps to address the concerns of oil and gas people. Said Houston port executive director Roger Guenther:
"We are steadfast in our position that keeping the channel open for all vessel traffic is in the best interests of
our state and nation."
Mr Guenther said the port focused on obtaining federal authorisation for construction to widen the Houston
Ship Channel.
[Hong Kong Shipping Gazette]
20/06/2019
By Steve Clark
The Port of Brownsville is another step closer to deepening the Brownsville Ship Channel, a project already a
dozen years in the making, with the issuance of a key permit from the U.S. Army Corps of Engineers
(USACE).
The permit allows the Brazos Island Harbor Channel Improvement Project to move forward to the
construction phase. Deepening the channel to 52 feet from its current depth of 42 feet is necessary for the port
to be able to accommodate larger, heavier cargo vessels, which in turn is necessary for the port to stay
competitive, according to officials.
Planning for the project began in 2007 with a USACE feasibility study. The study was completed in 2014
with the recommendation that the channel be deepened to 52 feet. The project was authorized by Congress in
late 2016, making it eligible to receive for federal
funding, though no money was appropriated. The estimated cost is $350 million, which port officials expect
to cover through a combination of private and public funds, including federal dollars.
Houston-based NextDecade Corporation, which is waiting for Federal Energy Regulatory Commission
approval to build its proposed Rio Grande liquefied natural gas export terminal at the port, signed a deal with
the port on April 24 agreeing to pay for deepening the channel from NextDecade‘s lease on the channel to the
Gulf — about nine miles, more than about half the length of the overall project.
Dredging for the project is expected to begin next year. Port officials expect other proposed port projects to
sign on with the public-private partnership to help pay for the channel deepening.
[The Brownsville Herald]]
20/06/2019
Port development U.S.: Army Corps of Engineers approves $350 million project to deepen Brownsville
Ship Channel
Port development Russia: Construction of Lavna terminal in Murmansk is making progress
By Atle Staalesen
According to regional authorities, the new terminal and the connecting 46 km long railway line will cost 34
billion rubles (€475 million). That is significantly higher that the estimates provided by regional authorities
less than a year ago.
Coal is the primary commodity and the terminal is to reach its full capacity of 18 millions per year in 2022.
However, also other kinds of goods can be handled by the Lavna, project participants underline. That could
include mineral fertilizers.
In early June, company Phosagro signed a deal with Infotek Nord about the development of terminal
facilities. The terminal is to be able to handle up to 4 million tons of fertilizers per year and be located on the
western shore of the Kola Bay, representatives of the companies said during the contract signing ceremony.
The developers of the terminal includes the Center for Development of Port Infrastructure (30%) and
Biznesglobus (20%). In addition, the Sibirsky Delovoy Soyuz and the Russian Railways hold respectively 25
percent and 10 percent.
The new ownership constellation was approved by Russian Deputy Prime Minister Maksim Akimov on 12th
February and the project contract was signed on 17th April.
[The Barents Observer]
20/06/2019
The World Container Index assessed by Drewry, a composite of container freight rates on 8 major routes
to/from the US, Europe and Asia is down 1.6% to $1,329.94 per 40ft container.
Two-year spot freight rate trend for the World Container Index:
Container shipping: World Container Index - 20 Jun 2019
Our detailed assessment for Thursday, 20 June 2019
•The composite index decreased 1.6% this week similarly, 4.4% down as compared with same period of
2018.
•The average composite index of the WCI, assessed by Drewry for year-to-date, is US $1,469 per 40ft
container, which is $12 higher than the five-year average of $1,456 per 40ft container.
•Drewry‘s composite World Container Index (WCI) decreased 1.6% to $1329.94 for a 40ft container. Freight
rates on Shanghai-New York tumbled $65 to reach $2427 per 40ft box. Rates on Shanghai-Genoa dropped
$32 to touch $1537 per feu. Rates on Shanghai-Rotterdam dwindled $28 from $1487 and stood at $1459 per
40ft container. Conversely, freight rates from Rotterdam-Shanghai gained $17 to reach $565 per 40ft box.
Drewry expects that rates will struggle to recover next week.
Our latest freight rate assessments on eight major East-West trades:
Spot freight rates by route - assessed by Drewry
Source: Drewry Supply Chain Advisors
[Drewry]
20/06/2019
By Costas Paris
Shipping lines Evergreen Marine Corp. of Taiwan and Germany‘s Hapag-Lloyd AG have put in separate
requests to Asian yards for the construction of more than a dozen mega-container ships that would have a
combined value of about $2.2 billion.
The proposals signal that a lull in new orders in the sector is ending as carriers seek ever- bigger vessels to
carry goods. The fleet additions would widen the gap between capacity and demand on container shipping‘s
critical Asia-to-Europe trade lanes, where operators have been mostly losing money over the past five years.
Hapag-Lloyd, the world‘s fifth-largest container operator in terms of capacity, is sounding out yards in
Japan, South Korea and China for up to six ships that could each move 23,000 containers, people with
knowledge of the matter said. Evergreen, the seventh-biggest player, is considering adding eight or nine
ships in a deal that may be signed by the end of the summer, these people said.
The carriers are members of competing alliances that share ships and port calls to cut costs. A typical
one-way trip from Asia to Northern Europe involves at least 10 port calls in which the megaships drop off
and take on cargo.
―Some of the vessels are to fulfill capacity commitments within the alliances and others to renew older and
less efficient ships,‖ another person involved in the matter said. ―Yes, there is overcapacity and the trade
picture does not look good with the tariffs and the economic slowdown, but these ships will run for the next
25 years and now is a good time to buy.‖
Taiwan‘s Yang Ming Marine Transport Corp. and China‘s Cosco Shipping Holdings Co., the third-biggest
box-ship operator, are also in the market for new ships but no orders are imminent, the people said.
The orders would be the first for big ships in the container-shipping sector since last fall, when South Korea‘s
Hyundai Merchant Marine signed contracts for 20 vessels. The order included 12 of the biggest ships,
carrying up to 23,000 20-foot containers
Demand for shipping consumer goods, manufacturing parts and other staples of global trade is waning this
year amid a slowing global economy and continuing tensions between the U.S. and China. Maritime data
provider Alphaliner in late May cut its container volume growth estimate for this year to 2.5% from 3.6%.
Chinese shipping executives say they have withdrawn capacity in the trans-Pacific route since a first round of
U.S. tariffs on Chinese goods happened last summer.
Operators say they have little choice but to invest in new ships despite a gloomy outlook because of stricter
environmental regulations kicking in next year. Starting in January, all oceangoing vessels will have to
sharply reduce their sulfur emissions. Maritime operators expect to slash greenhouse gas emissions from
ships by half by 2050.
"This means a lot of older ships will be scrapped because the cost of retrofitting them to meet clean-air
standards will be too expensive,‘‘ one of the people familiar with the recent orders said. ―We actually expect
supply of new ships to match demand by 2021, which is just around the corner.‖
[The Wall Street Journal]
Container shipping: Evergreen and Hapag-Lloyd seeking megaships worth $2.2 billion
20/06/2019
Transnet SOC has signed another Manganese Export Capacity Allocation (MECA 2) contract with United
Manganese of Kalahari (UMK), the fourth largest manganese producer in South Africa.
The seven-and-a-half-year contract is worth €500m and will allow UMK an allocation of both rail and port
capacity through the different manganese export channels in South Africa. The allocation agreement is
inclusive of the transportation, storage, and loading on-board a vessel of the UMK production destined for
the export market.
The manganese from UMK will come mainly from the Kalahari Manganese fields in the Northern Cape
through to the Port of Saldanha on the iron ore railway line, Port of Port Elizabeth, and the Port of Richards
Bay.
Since the inception of the MECA2 programme in 2015, Transnet has witnessed an increase of manganese
export volumes from 5m tonnes per annum to the current 15.1m tonnes per annum. Transnet together with
key manganese producers have set aside 15% of the overall manganese export line capacity for the new
entrants in the manganese export market.
The contract will be back-dated from September 2015 until March 2023. The contract term is aligned with
Transnet‘s Manganese Expansion plans to create capacity ahead of demand in freight, ports, terminals and
rail systems in the country. South Africa accounts for close to 75% of global manganese reserves. The project
aims to retain the country‘s position as the leading exporter of high-grade manganese ore.
[Transport intelligence]
20/06/2019
South African rail, port and pipeline company Transnet has awarded a 20-year concession to Southern Palace
to design, build and operate the US$168 million Tambo Springs Intermodal Terminal in Ekurhuleni - a new
'inland port' in Gauteng, the province encompassing Johannesburg and Pretoria.
The consortium is led by Ferrovie dello Stato Italiane, which will serve as a technical partner, and comprise
of Makoya, an empowerment logistics partner that would be supported by Concor, Aecom and Italferr.
Through a public-private partnership the project dubbed Tambo Springs Intermodal Terminal is expected to
reach a financial close by September with sod turning set for November, the Nairobi's Construction Review
Online magazine reported.
The terminal will be built on a 607-hectare site near Vosloorus, in Ekurhuleni which has been earmarked for
development of a larger logistics hub being promoted by the Tambo Springs Development Company.
The hub and the terminal are among the government's Strategic Infrastructure Project 2 which aims to
develop growth-supporting infrastructure along the Durban-Free State-Gauteng Corridor. Additionally, the
intermodal terminal also forms part of Gauteng Integrated Transport Master plan.
Dry bulk shipping South Africa: Transnet signs €500 million contract with United Manganese of
Kalahari
Terminal operators South Africa: Transnet awards concession to develop and operate US$168 million
Tambo Springs Intermodal Terminal
"Springs inland terminal has been on the government's plans for a number of years now. Witnessing it
coming to fruition is indeed a historical moment for many South Africans. Once completed, the inland
terminal will change the face of Gauteng," said Transnet's chief business development officer, Gert De Beer.
If all goes to plan the 225,000 TEU facility will begin operations during the third quarter of 2022, but the
concession agreement includes scope for an expansion to 560,000 TEU a year. Moreover, it also allows for
the concession term to be extended.
The new Springs terminal will boost efficiencies as a fully-fledged modern intermodal facility, directly
connected to the Natal Corridor (NATCOR) rail link between Durban and Johannesburg. The project will
lead to the creation of 81,000 jobs during the contract phase and 110,000 permanent jobs in transport,
manufacturing and logistics operations.
[Hong Kong Shipping Gazette]
20/06/2019
Global trends mean the industry needs fewer big box terminals, Neil Davidson, senior analyst, ports and
terminals at Drewry tells TOC Europe 2019 in Rotterdam.
In a wide ranging presentation, he said changes in world trade and consolidation in the liner shipping
business were having significant effects on the container ports and terminals sectors.
―Globalisation is no longer the big trend that it was and factors, such as trade protectionist policies, rising
labour costs, particularly in countries like China, automation of manufacturing and growing concerns over
climate change and emissions coalesce and support the regionalisation of trade.
―Smaller gateway ports can be very successful as they are often close to centres of consumption and
production and generally have good inland connections in their hinterlands.
But they have to be green and efficient and in the future that means automation and digital
concepts have to work.‖
In contrast, Davidson said that economies of scale and critical mass meant large terminals were still the norm
for transhipment and if anything, this was increasing. He pointed to smaller hubs, including in the
Mediterranean basin, as suffering.
Within ports he expects some consolidation of container-handling facilities terminals to take place.
―Consolidation in the ocean carrier business means there is a need for fewer multiple container terminals in a
port. Take Buenos Aires, which is looking to consolidate as many as five terminals into one,‖ said Davidson
―Look at Hong Kong where HPH, Modern Terminals, Asian Container Terminal and Cosco-HIT have set up
an operating alliance and are now viewing the implementation of a unified terminal operating system.‖
He also said that generally lower margins in the terminal operating business could result in less greenfield
developments.
[WorldCargo News]
Terminal operators: Fewer big container terminals needed
Terminal operators U.S.: Port of Los Angeles upholds APM Terminals permit to test automated
equipment at Pier 400
20/06/2019
By Chris Dupin
The board of commissioners of the Port of Los Angeles voted 3-2 on Thursday morning to deny an appeal of
a coastal development permit that had been granted to APM Terminals to test equipment at its Pier 400
container terminal that eventually could be used to automate the facility.
The appeal was filed by the International Longshore and Warehouse Union (ILWU), which fears it will result
in the elimination of its members‘ jobs and have a negative impact on the communities surrounding the port.
Hundreds of longshoremen and community members attended the commission meeting. Jaime L. Lee, the
president of the board of commissioners, said that she believed the Level 1 permit complied with the port‘s
master plan and was properly issued by Gene Seroka, the port‘s executive director, who had the authority to
issue the permit.
―I don‘t believe there is anything within the scope of the work considered by APM Terminals that would
raise it to the level of a Level 2 coastal development permit,‖ Lee said. She was joined by Commissioners
Lucia Moreno-Linares and Edward R. Renwick in denying the ILWU appeal. Commissioners Anthony
Pirozzi Jr. and Dianne Middleton voted to support the appeal.
Source: American Shipper
Lee said while Pirozzi had pointed to some deficiencies in information provided, there was not
a requirement that the permit ―check every box and fill every line.‖
―It‘s not our job here to opine on whether or not this is a good business decision or a good investment,‖ she
said, adding there also was not a requirement in the Level 1 CDP to create jobs or prevent the loss of jobs.
Middleton argued that the permit did not conform to the port‘s master plan and would have significant
adverse environmental impacts. She complained that the permit information was ―vague and ambiguous‖ and
that the company had not done an analysis of the impact on employment.
Transparency & corruption: World's biggest oil traders paid huge bribes to executives of Brazil’s
state-owned Petrobras
She said the union did not have sufficient information about APMT‘s plans for Pier 400 ―and neither do we.‖
Middleton said employment is ―absolutely part of the port‘s master plan‖ and argued the effect that
automation of the terminal might have on employment should be part of the review process for the permit.
―This is a major economic issue,‖ she said.
Los Angeles Mayor Eric Garcetti has been meeting with the union and APMT in recent months. A
spokesman for the mayor issued a statement saying he ―is strongly committed to a secure future for the men
and women whose hard work has made our port the best in the world — and knows that continued success
depends on all parties staying committed to productive discussions around training, safety and staffing
programs that will strengthen the port and its workforce. The mayor will continue to engage all parties and is
optimistic as talks move forward.‖
The Pacific Maritime Association (PMA), the organization that negotiates labor contracts between
employers and the ILWU, said the commissioners "acted in clear compliance with the Port Master Plan and
the law by enabling Pier 400 to modernize in order to stem the
troubling loss of market share at the Port of Los Angeles and create one of the greenest terminals in the
world."
Renwick noted in his comments that while the Port of Los Angeles reported record container volumes in the
past two years, it has lost 20 percent of market share to other in the past decade. While ILWU members are
legitimately concerned about job loss, he said "unfortunately none of that is relevant to the decision we have
to make."
"As an appointed representative my leeway is narrow. I have to follow the law. I am not allowed to change
the law," he said.
After the vote, Los Angeles City Councilman Joe Buscaino said, ―I will be asserting the City Council‘s
jurisdiction over this item and will bring it before the full council for a vote.‖
The PMA said "if the city council was to overturn the harbor commissioner's decision it would "send a
damaging message regarding the City‘s commitment to environmental leadership and the continuing
competitiveness of the Port of Los Angeles. The permit enabling terminal modernization was granted in
compliance with the Port Master Plan and local and state laws, and the automation that would follow is
explicitly provided for under the terms of the collective bargaining agreement between the ILWU and PMA.
"Preventing port terminals from evolving to keep pace with the global economy and to combat climate
change threatens to cause long-term damage to jobs, tax revenue, and economic vitality for all of California,"
said the PMA.
[American Shipper]
20/06/2019
By Emanuele Scimia
The hard reality for Trump is that Chinese businesses are modernising European port infrastructure and
creating jobs as part of belt and road integration. Many in Europe see US fears about the Chinese navy
gaining greater strategic access as overblown.
Port development: Europe continues to welcome Chinese investment in its ports, despite US concerns
The United States is becoming increasingly obsessed with Chinese activities in commercial seaports of allied
countries because of the risk they would pose to its navy. Nonetheless, calls for European allies to avoid
backing China‘s global maritime ambitions and the Belt and Road Initiative continue to fall on deaf ears.
At last week‘s Transport Logistic fair in Munich, the Italian port of Genoa signed a cooperation agreement
with the Chinese port of Shenzhen, the world‘s fourth-largest container port.
Together, China‘s Cosco Shipping Ports and Qingdao Port International Development have a 49.9 per cent
stake in two terminals in Genoa. Other European operators are also engaging with Chinese counterparts.
The Italian port of Genoa has signed a cooperation agreement with the Chinese port of Shenzhen. Europe‘s progressive integration into China‘s belt and road plan has alarmed Washington. Photo: Shutterstock
Europe‘s progressive integration into the belt and road plan, which is aimed at reviving the ancient Silk Road
and creating a China-centric network of trade relationships across Eurasia and beyond, has alarmed the
administration of US President Donald Trump.
In its annual report to Congress on China‘s military power, released last month, the US Department of Defence
said the belt and road investments could help the Chinese navy gain access to ―selected foreign ports to
pre-position the necessary logistics support to sustain naval deployments in waters as distant as the Indian
Ocean, Mediterranean Sea and Atlantic Ocean‖.
To US strategists, China is seeking control of overseas infrastructure to project and support naval power at
greater distances. The Chinese could achieve such a goal by gaining preferred access to foreign commercial
ports through belt and road projects, as well as through some exclusive logistics facilities.
Shipbreaking: Shipowners challenged as recycling is caught in transition
China opened its first – and, until now, only – overseas military base in Djibouti two years ago. The tiny
country in the Horn of Africa also hosts a US naval facility. According to the Pentagon, the Chinese could
establish a second naval outpost near the Pakistani commercial port of Gwadar, which is being operated by
China Overseas Ports Holding Company.
The Trump administration sounded the alarm on Chinese-managed European ports as Italy became the first of
the Group of Seven nations to sign up for the Belt and Road Initiative in March, and the Italian ports of Genoa
and Trieste signed cooperation agreements with state- owned China Communications Construction Company.
However, NATO allies in Europe appear unwilling to block Chinese investment in their port facilities. The
Dutch port of Rotterdam – where Cosco has a 35 per cent stake in a terminal – recently signed a declaration of
intent with Chengdu International Railway Port Investment to improve connectivity between Europe and
China.
The port of Dunkirk, the third largest in France, said last month that it would try to seize the opportunities
offered by China‘s belt and road plan to boost trade between the two countries. In March, during Chinese
President Xi Jinping‘s state visit to France, the port of Marseille concluded an agreement with China‘s
Quechen Silicon for the construction of a processing plant in the port industrial zone.
The Chinese run or hold stakes in a dozen European ports. Cosco manages the strategic port of Piraeus in
Greece, and Chinese port operators are also active in Belgium, Spain, France, Italy, the Netherlands and Malta.
Some of these countries have the highest unemployment rates in Europe, and welcome Chinese financing of
infrastructure.
Local communities are often major supporters of China‘s participation in port development projects. This is the
case for the construction of a new seaport in the Arctic city of Kirkenes, Norway, which could become another
gateway for Chinese products shipped to Europe. China has expressed interest in the initiative as it wishes to
take advantage of the melting ice in the Arctic to develop a Polar Silk Road connecting its northeastern ports to
the Baltic Sea.
European governments reckon they are ready to manage a growing Chinese presence in their transport
facilities. Also, the European Union has set up a mechanism for screening foreign investment and safeguarding
the region‘s strategic interests, which is evidently aimed at China.
With regard to the possibility of gathering intelligence on the movements and maintenance of US and NATO
vessels stopping at ports operated by Chinese companies, some European port officials told me this was not an
issue, given that the civil and military sides of their terminals are separate.
After all, Chinese port operators are also present at a number of US terminals and do business with many allies
of Washington. For example, China‘s Landbridge Group signed a 99-year lease for the Australian port of
Darwin in 2015. It is worth noting that 2,500 US marines will be based in Darwin by July.
The Chinese have also heavily invested in ports in Israel, Turkey, Saudi Arabia, United Arab Emirates, Kuwait,
Egypt and Oman, which are all part of the US security system in the Middle East.
The hard reality for Trump and his China hawks is that Chinese businesses are modernising European port
infrastructure, adding value to the concerned countries and creating jobs. And the same is often true of Chinese
investment in other parts of the world.
[South China Morning Post]
17/10/2018
By Jack Wittels, Bloomberg
20/06/2019
Following recent media reports about the Arctic permafrost going through a ‗rapid meltdown‘, the Clean Arctic
Alliance has stepped up its campaign for an immediate ban on the use and carriage of heavy fuel oil (HFO) in
Arctic waters.
In an open letter sent to International Maritime Organization (IMO) Secretary-General Kitack Lim on Tuesday
(18 June), the CAA urged that, in addition to the HFO ban, action ‗can be taken immediately‘ to ‗reduce black
carbon emissions by switching to cleaner fuels, and reduce ship speed to cut CO2 emissions‘.
‗None of these measures require infrastructure costs, only changes in current practice,‘
claimed the CAA.
Dr Sian Prior, Lead Advisor to the Clean Arctic Alliance, commented: ‗With the climate crisis pushing Arctic
change into overdrive, the global shipping industry must take responsibility for its contribution and action to
counter the impacts of shipping pollution. By immediately cutting ship speeds to lower CO2 emissions, and
reducing black carbon emissions by switching to cleaner fuels, the shipping industry can lead by example in
rapidly and efficiently lowering its contribution to this Arctic climate emergency.‘
Dr Prior continued: ‗While an Arctic ban on the use and carriage of heavy fuel oil – a source of black carbon
emissions – is currently being developed by the IMO, we are calling on Secretary General Kitack Lim to raise
the alarm over the current Arctic meltdown with Member States, urge them to immediately stop the use of
polluting heavy fuel oils by ships in the Arctic, and move to the use of alternative, cleaner fuels, in line with a
recommendation of the IMO‘s Polar Code, which took effect in January 2017 [4]. We have limited time to act
and that time must be well spent, if we are to radically decrease the impact of shipping pollution on the Arctic
region.‘
With the anticipated opening-up of the Northern Sea Route (NSR), there is likely to be a noticeable increase in
shipping activity in the Arctic waters. This has raised concerns over the prospect of more emissions and noise
pollution (which can severely disrupt the lives of Arctic mammals) and a greater risk of oil spills.
[Bunkerspot]
20/06/2019
By Sam Chambers
A new index is set to shine a light on port corruption around the world.
The Maritime Anti-Corruption Network (MACN) – a global business network of over 110 companies
working together to tackle corruption in the maritime industry – has teamed with the Ministry of Foreign
Affairs of Denmark (MOFA). The partnership will allow MACN to develop and launch the first ever Global
Port Integrity Index and to scale up its collective action activities in West Africa.
Shipping emissions: Clean Arctic Alliance ramps up anti-HFO campaign
Transparency & corruption: Global port corruption in the spotlight
The Global Port Integrity Index will provide an overview and comparison of illicit demands in ports around
the world. It will be based on the unique first-hand data gathered from captains calling at ports around the
world through MACN‘s Anonymous Incident Reporting Mechanism. To date, MACN has collected over
28,000 reports of corruption in ports.
―Through the support from the Ministry of Foreign Affairs of Denmark, MACN can take our world-leading
incident data to the next level and turn it into a powerful advocacy tool. This index will be instrumental in
highlighting the need for further investments and initiatives addressing integrity challenges in ports to
promote fair global trade,‖ said Cecilia Müller Torbrand, executive director of MACN.
The partnership with MOFA will also allow MACN to expand its collective action program in West Africa
and to deepen its current engagement in the region.
[Splash]
20/06/2019
By Jacqueline Charles
A Haitian ambassador-at-large and his business partner, a prominent retired U.S. Army colonel, were both
found guilty by a federal jury in Boston on Thursday of participating in a scheme to bribe Haitian
government officials in exchange for business advantages on an $84 million port project in northwest Haiti.
Roger Boncy, the CEO of Hispaniola Invest, LLC, and a dual citizen of the United States and Haiti who lived
in Madrid, and Dr. Joseph Baptiste, a Maryland dentist and founder and
chairman of the National Organization for the Advancement of Haitians (NOAH), were convicted after a
two-week jury trial. Both were found guilty of conspiring to violate the Foreign Corrupt Practices Act and the
Travel Act, while Baptiste, 66, was also convicted of conspiracy to commit money laundering and an
additional Travel Act violation. Boncy, 74, was cleared of the latter two counts.
Under the federal Foreign Corrupt Practices Act, it is illegal for Americans or U.S. companies to pay foreign
officials to win business. The Foreign Corrupt Practices Act and the Travel Act counts carry a maximum of
five years each in prison, while the more serious money-laundering conspiracy charge carries a maximum of
20 years. Both men are scheduled to be sentenced on Sept. 12 and will remain free until then, Boncy‘s
lawyer, Jed Dwyer of Greenberg Traurig said.
Both men came under the glare of U.S. officials after the FBI received a tip about the alleged scheme. It then
conducted a sting operation in Boston, using undercover FBI agents posing as potential investors interested
in the port project. The agents, for example, gave Baptiste two separate payments of $25,000 meant to be
used to bribe Haitian government officials. The money was funneled through Baptiste‘s nonprofit charity.
The money, however, was ―ultimately used ... for personal purposes‖ by Baptiste, an agent said in the
criminal complaint.
[Miami Herald]
Transparency & corruption: Two U.S. businessmen convicted of bribery in scheme involving $84
million Haiti port project
19/06/2019
The International Maritime Organization (IMO) Maritime Safety Committee (MSC) held its 101st session
from June 5 to 14, 2019.
After its conclusion, the classification society American Bureau of Shipping (ABS) published the MSC 101
News Brief that provides an overview of the more important issues agreed at this session. Among others,
these include fuel quality and safety, maritime autonomous surface ships, and the approval and adoption of
various instruments.
[ABS]
19/06/2019
Insurers have been warning for years that the increasing size of vessels is leading to a higher accumulation of
risk. These fears are now being realized, potentially offsetting improvements in safety and risk management.
Over the past 50 years container ships have increased in capacity by almost 1,500%, although many of the
risk concerns with them are also applicable to cruise ships, car carriers and other
large vessels. In many respects, such vessels are safer and the frequency of shipping losses overall has
steadily declined over the past decade. However, the cost of incidents has been increasing, driven in large
part by the cost of claims involving large vessels. For example, data from the Nordic Association of Marine
Insurers (CEFOR) has previously shown that the costliest 1% of all claims account for at least 30% of the
value of total claims in any given year [1].
Larger vessels mean far greater accumulations of risks and therefore larger values and exposures, both on
board vessels and in ports. Dealing with incidents involving large ships, such as fires, groundings and
collisions, are also becoming more complex and expensive. Ultra large container ships (ULCS) are of
particular concern following a number of fire and explosion incidents, but also groundings and collisions.
Such vessels, the largest of which can carry 20,000+ teu (20-foot equivalent unit) containers, require ports
with appropriate specialist infrastructure to unload cargo or carry out repairs.
Rules & regulations: Overview of MSC 101 outcome
Marine insurance: Larger vessels bring bigger losses
Note: Approximate ship capacity data: Container-transport.com; AGCS
―Insurers such as Allianz Global Corporate & Specialty (AGCS) have been warning for years that the
increasing size of vessels is leading to a higher accumulation of risk,‖ explains Captain Rahul Khanna, Global
Head of Marine Risk Consulting at AGCS. ―These fears are now being realized, as demonstrated by the
growing number, and cost, of incidents with ULCS. While we have seen total losses reduce over the past
decade, the benefits are being largely offset by the increased cost of losses for large vessels. The cost of
casualties or incidents is rising, with an increase in severity, and this is down to the increasing size of vessels.
Such ships generate economies of scale for ship owners but also increased risk, and a disproportionately
greater cost when things go wrong.‖
Fires on board large container vessels are now a regular occurrence – there were two in January 2019 alone,
following a number of other incidents – and continue to be a major concern. In addition, the car carrier
Sincerity Ace caught fire in the North Pacific on December 31, 2018, the latest large vessel of this type to do
so, while Ro-ro cargo ship, the Grande America sank on March 12, 2019 after its cargo of vehicles and
containers caught fire. On average, insurers see around two major losses involving car carriers each year.
Such incidents can easily result in large claims in the hundreds of millions of dollars, if not more. A
hypothetical worse-case loss scenario involving the collision and grounding of two large container vessels, or
a container vessel and a cruise ship, could result in a $4bn loss when the costs of salvage, wreck removal and
environmental claims are included, according to AGCS. Potentially, one insurer could find they have insured
more than one vessel involved in the same incident, with exposure to hull, machinery breakdown and cargo
losses. ―The size of a vessel can significantly increase salvage and general average costs. ULCS require
specialist tugs and finding a port of refuge with capacity to handle such a large ship can be difficult, which
increases the salvage operation costs,‖ explains Régis Broudin, Global Head of Marine Claims at AGCS.
―For example, in the case of the Maersk Honam container ship which caught fire at sea in March 2018,
salvage and general average represented close to 60% of the cargo value. A high contribution has also been
requested for the Yantian Express, container vessel which suffered a fire on board in January 2019.‖
How a $4bn loss scenario could occur
The increasing size of vessels has raised fears about the potential for higher losses if a major casualty does
occur, particularly one involving two large vessels, such as a cruise ship and a container ship, for example.
There are many factors to consider when evaluating the potential costs from such an incident. Below, we
consider a worst-case scenario casualty involving a collision, followed by grounding of both vessels and
pollution, in an environmentally-sensitive location. In this scenario both vessels are then deemed constructive
total losses. The potential exposure could be:
Source: Allianz Global Corporate & Specialty (AGCS)
Following a number of incidents in recent years, the shipping industry should question whether it is running
acceptable levels of risk for large vessels, according to Captain Andrew Kinsey, Senior Marine Risk
Consultant at AGCS. ―There is a push for efficiency and scale in the shipping industry but this should not be
allowed to give rise to unacceptable levels of risk,‖ says Kinsey. ―We continue to see the normalization of
risk in the shipping industry. There have been welcome technical advances in shipping but we do not yet see
a commensurate safer environment. There is now much talk of automation and autonomous vessels and how
this will be safer. But in truth, innovation will be driven by the bottom line.‖
―It is very clear that in some shipping segments, loss prevention measures have not kept pace with the
upscaling of vessels,‖ says Chris Turberville, Head of Marine Hull & Liabilities, UK, AGCS. ―This is
something that needs to be addressed from the design stage onwards.‖
More information: Allianz Safety and Shipping Review 2019 [Allianz]
19/06/2019
Spanish authorities informed that they have captured hashish worth about 20 million euros ($22 million) from
a container ship that allegedly was smuggling the drug from North Africa to the eastern Mediterranean.
As the Spanish government stated on June 18, an aircraft noticed numerous semi-rigid boats, which North
African drug-runners often use, around the vessel Elg. After spotting the boats, agents boarded the ship and
discovered over 10 metric tons of hashish in the hold. As a result, six Ukrainian crew members were arrested.
The seizure of the drugs and the arrest of the crew is a result of a six-months tracking by the authorities.
Spanish officials report that a large amount of hashish travels from near the Strait of Gibraltar to eastern
Mediterranean.
Drug trafficking Spain: Authorities seize 10 tons of hashish on board Moldova-flagged general cargo
ship and arrest crew
Source: SAFETY4SEA
The Elg is a 36-year old general cargo ship registered under the flag of convenience (FOC) of the Republic of
Moldova. Since Nov 2018, she is operated by the Istanbul-based Turkish company Adoken Shipping Ltd and
owned by the Turkish one-ship Istanbul-based mailbox company DOB Shipping & Trading Inc, according to
Equasis.
Source: Equasis
In Feb 2019, the UK authorities banned the Elk because of multiple detentions after Port State Control (PSC)
inspections under the Paris MoU that identified a variety of serious deficiencies.
Since many years, the flag of the Republic of Moldova is on the ―Black List‖ of the Paris MoU on Port State
Control, with a very poor performance considered high and very high risk, together with the infamous flag
states of Sierra Leone, Ukraine, Tanzania, Cambodia, Palau, Comoros, Togo and the Republic of Congo.
Black list of the current Paris MoU flag performance list [effective from 1 Jul 2019 to 1 Jul 2020]
Unfortunately, only the International Maritime Organization (IMO), the United Nations organization in
charge of maritime safety, and the maritime administration of Moldova – the
Naval Agency of the Republic of Moldova - will be able to provide an explanation why this vessel continues
to be allowed to sail the seven seas.
[SAFETY4SEA / Equasis / Paris MoU]
19/06/2019
With global demand for sand and gravel standing at up to 50 billion tons per year – and forecast to rise 5.5%
a year – a UN report has sounded a klaxon over an emerging global environmental problem.
The demand for sand increased three-fold over the last two decades. Credit: UNEP
―Sand mafias‖ are destroying beaches, while even permitted extraction to feed the international sand trade is
causing pollution, flooding and the erosion of marine habitats, says the UN Environment Programme
(UNEP) report Sand and sustainability.
It says that while urbanization and infrastructure development can raise living standards, the huge demand
for aggregate is causing trouble, and effective policy and planning will be needed to meet demand in a world
of 10 billion people. Already in the last 20 years, global demand for sand has increased three-fold.
It calls on countries to avoid unnecessary use of sand and aggregate, recycle and find alternatives, and cut
sand-mining‘s impact on habitats.
Sand mafias destroy beaches
In Morocco, half of the sand – 10 million cubic metres a year – comes from illegal coastal extraction. ―Sand
mafias‖ have turned a large beach between Safi and Essouira into a rocky landscape, the report says.
Asilah in northern Morocco has suffered severe beach destruction, the report warns. Beach erosion even
threatens buildings and infrastructure near the coast.
Ironically, the sand is used to build hotels, roads and other tourism infrastructure, but raiding beaches this
way is likely to lead to the destruction of the main tourist attraction – the beaches themselves.
Oceans: “Sand mafias” are destroying beaches and habitat, UN report warns
Beach-raiding in Tanzania
Sand-mad Singapore
The expanding city-state of Singapore is singled out for being especially sand-greedy. The biggest importer
of sand worldwide, it has increased its land area by more than 20% in the last 40 years by dumping
aggregates into the sea.
Singaporean demand for sand and gravel has triggered an increase in sand mining in Cambodia and Vietnam.
Meanwhile, sand mining in the Mekong basin, affecting Laos, Thailand, and Cambodia, is impacting delta
erosion.
How Singapore has expanded
The report also notes a mismatch between the reported total amount of sand imported by Singapore (517
million tons) and the total of sand exports to Singapore from its four neighbours (637 million tons).
It says the illegal trade in sand should be monitored better. But as the price of sand rises, so does illegal
traffic. The average price of sand imported by Singapore was $3 a tonne from 1995 to 2001, but the price
increased to $190 a ton from 2003 to 2005, the report said.
Using up our sand budget
The report shows how shifting consumption patterns, growing populations and increasing urbanisation have
increased demand for sand three-fold over the last two decades. ―We are spending our sand ‗budget‘ faster
than we can produce it responsibly,‖ said Joyce Msuya, acting executive director UNEP. ―By improving the
governance of global sand resources, we can better manage this critical resource sustainably and truly
demonstrate that infrastructure and nature can go hand in hand.‖
The report says sand and gravel resources are the second-largest resource extracted and traded by volume
after water. With sand extraction regulated differently around the world, important regions for biodiversity
and ecosystems are made more vulnerable.
[Global Construction Review]
19/06/2019
By Emma Charlton
If the ocean was an economy, it would be the seventh largest in the world.
But instead of fostering it as a resource, humans are jeopardising its future – using it as a garbage dump and
fishing it dry.
Broadcaster and naturalist Sir David Attenborough has warned our waters are facing the biggest threat in their
history, with industrial overfishing putting the entire ecosystem at risk. Seafood is a key source of protein for
people around the world, but nearly 90% of the world‘s marine fish stocks are now fully exploited,
overexploited or depleted, according to Friends of Ocean Action, a group of more than 50 global leaders,
convened by the World Economic Forum and World Resources Institute.
The impact of overfishing is wide-ranging. It‘s a cause of degraded ecosystems, according to the WWF, and
affects the size of the fish left behind, as well as how they reproduce and the speed at which they mature.
When too many fish are removed from one particular spot, the resulting imbalances can kill off other marine
life, including sea turtles and corals.
[Lloyd‘s Loading List]
Oceans: Industrial overfishing is the biggest threat
There‘s also an economic aspect, with many businesses and jobs reliant on the fish industry. When fish are
under threat, the coastal economies that depend on them are also put at risk.
Adding another layer of complexity are the illegal and unregulated practices that are difficult to track. One in
three fish captured never makes it to the plate, according to Friends of Ocean Action, and it‘s tricky for
consumers to know whether the fish they‘re eating have been caught legally.
The good news is that the plight of the ocean is rising up the international policy agenda.
Working with Stanford University‘s Center for Ocean Solutions, Friends of Ocean Action is making efforts
on three fronts: getting better data to help detect and eliminate illegal fishing, increasing traceability and
transparency across supply chains, and encouraging international cooperation to prevent vessels from landing
illegal catch.
Sweden is the worst offender for overfishing in the northeast Atlantic, according to a report from the New
Economics Foundation that ranked countries exceeding the total allowable catch (TAC) for commercial fish
stocks. In 2019, Sweden exceeded its TAC by more than 50%. The UK and Ireland were second and third.
Technology could help in this area, enabling better monitoring and measurement. Data scientists from the
National Geographic Pristine Seas project have used satellites to track marine vessels from space, following
industrial fishing vessels. They found more than 55% of ocean surface is exploited for industrial fishing,
more than four times the land area covered by agriculture.
In less than a year, world leaders will meet at the UN Ocean Conference with the aim of agreeing how to scale
up ocean action. Plastic, overfishing and toxicity - just some of the threats to our waters - means they‘ll have
a packed agenda.
[World Economic Forum]
19/06/2019
By Jim Walker
According to the U.S. Department of Justice (DOJ), from 2003 to around 2013, engineers on the Caribbean
Princess, Star Princess, Grand Princess, Coral Princess and Golden Princess by- passed the oil-water
separators (OWS) and released oily substances into the oceans.
These employees of Princess Cruises used a number of techniques, including the so-called ―magic pipes‖ and
running clean water past the sensors of the OWS to prevent the system from triggering an alarm. The
engineers lied and falsified oil logs on the ships.
Marine pollution U.S.: Why no prosecution of the engineers on the Carnival cruise ships Caribbean
Princess, Star Princess, Grand Princess, Coral Princess and Golden Princess ?
On the Caribbean Princess, once a whistleblower reported the environmental violations, the senior ship
engineers dismantled the bypass pipe and instructed crew members to lie. These illegal practices on the
Princess cruise ships took place over nearly a ten-year period of time.
Why didn‘t the US Department of Justice (DOJ) arrest a single one of the engineers engaged in the illegal
practices? I have received many inquiries from people asking why no one, including cruise executives, will
serve jail time?
A couple of years ago, gCaptain reported that ―two high-ranking ship engineers were sentenced to prison …
Star Princess after being convicted of using a so-called ―magic pipe‖ to illegally dump oil sludge and
wastewater overboard from their ship and then attempting to cover it up.‖ The sentencing involved the chief
engineer and second engineer of the Ocean Hope, a Greek operated cargo ship, who were convicted of
conspiracy, violating the Act to Prevent Pollution from Ships, obstruction of justice and witness tampering by
a federal jury in Greenville, North Carolina.
Assistant Attorney General John C. Cruden of the Department of Justice‘s Environment and Natural
Resources Division stated: ―This case shows that polluting the ocean with oily waste and sludge will land you
in jail . . .‖
Cruden was also involved in the original Princess Cruises investigation, where the misconduct involved more
ships for a far longer period of time.
So why the difference? Princess Cruises and parent company Carnival Corporation clearly wanted to put this
debacle behind them, so they apparently cut a deal which eliminated the possibility that the DOJ would be
eliciting sworn testimony from any of the shipboard employees. The DOJ press release indicated that Princess
engineers on the Caribbean Princess believed that the shore-side superintendent, like the chief engineer on the
ship overseeing the cover-up, suffered from the braccino corto complex (an Italian expression for a cheap
person whose arms are too short to reach his wallet).
So the engineers‘ testimony could have implicated Princess Cruises‘ shore-side supervisors. And once it was
proven that an audit of the vessel expenses showed that there were no costs for offloading and legally
disposing the oily waste, the only issue is how many people in Princess Cruises‘ and Carnival‘s headquarters
in Santa Clarita and Miami were involved in the conspiracy. The cruise executives wanted to maintain
plausible deniability which would not be possible if their senior engineers were going to face prosecution and
began pointing their fingers at the corporate offices. So, in my view, Carnival Corporation and Princess
Cruises negotiated a settlement with a relatively small fine, which avoided their greatest concern that the
DOJ‘s investigation would reveal the senior shipboard officers‘ criminal conduct and, in turn, expose the
shoreside managers and executives to criminal liability.
The DOJ touted that the case involved the ―the largest-ever criminal penalty involving deliberate vessel
pollution.‖ But the reality is that polluting the oceans will not land you in jail if you are an engineer on a
cruise ship who can implicate the owners and executives in the pollution, lies and cover-up.
Of course, we now know that Carnival Corporation did not learn anything after being caught with its
widespread pollution and lying and being fined $40,000,000 several years ago. The Carnival-owned ships
continued to illegally discharge grey water, sewage and plastics from their ships, from Glacier Bay in Alaska
to the water of the Bahamas, according to findings submitted to the Court by the Court Appointed Monitor
(CAM). All Princess Cruises and Carnival Corporation had to do was just pay another fine, a paltry
$20,000,000, from its tax-free bounty of $3,200,000,000 in profits from last year alone.
Without jail time and personal liability of the engineers and executives, the Carnival-owned ships will
continue illegally discharging oil, sewage, plastics, and grey water. Carnival has an endless source of money
that can fund $20,000,000 fines, just like you or me handing out $5 bills.
[Cruise Law News]
19/06/2019
By Kimberly Riskas
For better or worse, oceanographic and meteorological forces in the Indian Ocean seem to be preventing
plastic from accumulating to form a garbage patch.
Garbage patches in the ocean are sobering reminders of humanity‘s collective plastic pollution problem.
Measuring up to thousands of kilometers across, the patches have been confirmed to exist in the Pacific and
Atlantic Oceans, but not in the Indian—a surprise, given that more plastic waste enters the Indian Ocean than
anywhere else on Earth.
According to a new study – Role of Indian Ocean Dynamics on Accumulation of Buoyant Debris
– led by Mirjam van der Mheen, a doctoral candidate at the University of Western Australia, the Indian
Ocean‘s unique geography, ocean currents, and atmospheric conditions actually appear to be preventing
waste from piling up in a garbage patch. Pinpointing where all the plastic goes, says van der Mheen, is a huge
challenge.
―The technology to remotely track plastics in the ocean does not yet exist,‖ explains van der Mheen. ―There
aren‘t many measurements of marine plastic debris, so it is not straightforward to predict how plastic waste is
transported once it enters the ocean.‖
Since they couldn‘t track individual pieces of plastic, the team used the next best thing: GPS data from more
than 22,000 buoys that have drifted around the oceans since 1979. Running the data through computer
simulations provided a picture of how floating objects are pushed around by currents and wind. The
simulations show that multiple physical forces prevent the formation of an Indian Ocean garbage patch. In the
south Indian Ocean, an unusually persistent equatorial countercurrent flows from west to east across the
basin, scattering a trail of submerged plastics all the way to Australia.
Additionally, strong easterly monsoon winds move buoyant surface debris in the opposite direction, toward
the African coastline. Because the south Indian Ocean‘s gyre extends just past the southern tip of Africa,
plastics accumulate here briefly, then move out past South Africa into the southern Atlantic Ocean.
These transient accumulations of plastic debris near the coast pose a serious threat to marine biodiversity—as
highlighted by recent reports from South Africa of dead sea turtle hatchlings washing ashore with plastic in
their guts. The modeling research also indicates the possibility of a garbage patch forming in the Bay of
Bengal, although more measurements of plastic concentrations are needed to confirm this.
Marine pollution: The Indian Ocean’s great disappearing garbage patch
The Indian Ocean‘s dispersed plastic debris may be more difficult to clean than waste concentrated into a
garbage patch, says van der Mheen. Even so, knowing how floating debris moves through the ocean can help
identify common movement pathways—what she calls ―plastic highways‖—where converging waste flows
could one day be intercepted.
These results have implications for those studying plastic pollution in other oceans. Understanding the forces
driving Indian Ocean plastic movement ―will result in a better description of surface dispersion at the global
scale,‖ says Christophe Maes, an oceanographer at France‘s Laboratoire d‘Océanographie Physique et
Spatiale.
Yet with plastic waste piling up on some of the Indian Ocean‘s most remote beaches, the key to halting the
pollution crisis lies further up the supply chain, says Annett Finger of Australia‘s Victoria University. ―The
only viable solution is to reduce plastic production and consumption while improving waste management to
stop this material entering our oceans in the first place.‖
[Hakai Magazine]
19/06/2019
By Katherine Si
China Communications Construction Company (CCCC) announced that, China Harbour Engineering
Company (CHEC), a subsidiary of CCCC, is to invest in the Laem Chabang Port Phase 3, terminal F project
in Thailand.
CHEC will jointly set up a project company with relevant partners and will hold a 30% stake equity of the
new JV. The company estimates a requited investment of $1bn in the project.
Laem Chabang Port Phase 3, terminal F is a deep-sea project at the depth of 18.5 meters, consisting of
terminal F1 and F2 with a total berth length of 2,000 meters and a total width of 550 meters. The project will
include four container terminals, one multi-purpose terminal, one coastal terminal and one service terminal.
The project will enhance the handling capacity of the Laem Chabang port to be sufficient for continuously
demand at the port, and enhance the operational and management efficiency of the Phase 3.
In January this year, Terminal D Phase I Project of Hutchison Ports Thailand at Laem Chabang Port was
opened, constructed by CHEC.
[Seatrade Maritime News]
19/06/2019
The European Bank for Reconstruction and Development (EBRD) is to provide a $17.5 million (€15.78
million) loan to Ceyport Tekirdag Uluslararasi Liman Isletmeciligi A.S. (Tekirdag A.S.) to fund a 36-year
concession of Tekirdag port, which is currently state-operated.
Terminal operators Thailand: China Harbour Engineering Company to invest in Leam Chabang Port
terminal F project
Terminal operators Turkey: EBRD to provide loan in support of 36-year concession of Tekirdag port
The company will run a project to privatise the port, and with an investment plan it aims to modernise the
port and increase capacity from 1.6 million tons in 2017 to 1.9 million tons in 2022 for general and dry bulk
cargo, and from 150k to 260k tons for liquid cargo mainly due to improvement in storage. Total project cost
is estimated at $127.8 million (€113.92 million), with funding also from ICBC Turkey Bank A.S.
Tekirdag A.S. is 51% owned by Ceynak Lojistik ve Ticaret A.S., 25% owned by Samsunport- Samsun
Uluslararasi Liman Isletmeciligi A.S. and 24% by private individuals Ali Avci, Mehmet Berzan Avci and
Lerzan Avci Lulecioglu. The Port is located on the northern coastline of the Marmura Sea, and has dry
bulk/general cargo, liquid bulk, container and Ro-Ro handling capacities serving industrial and agricultural
production and trading in the Marmara region.
[EBRD / PortSEurope]
19/06/2019
Terminal operator International Container Terminal Services Inc. (ICTSI) has been declared preferred bidder
for the development and management of the Port of Kribi in Cameroon.
The 25-year concession for the new Multi-Purpose Terminal of the Port of Kribi was agreed on June 14,
2019. The multipurpose facility comprises a berth of 265 m and a 10-ha yard.
The concession increases the presence of ICTSI in Africa, where it operates already terminals in Madagascar,
Democratic Republic of the Congo and Sudan.
[Port Technology International]
19/06/2019
The Port Authority of Las Palmas has said it is currently carrying out infrastructure works
worth €42.5 million ($47.6 million).
One of the new projects is the platform in the León and Castillo Naciente pier, which, at a cost of €5 million
($5.6 million), would be used to build a foundation for new cranes, so that the OPCSA operator can continue
with the expansion process and reorder the terminal. The purpose of the project is to give space to the new
loading and unloading cranes and to expand the surface, with a deadline of less than one year after the port
authority tenders the project.
The project of the conditioning of the Zone of Operations of the Virgin dock, in which the Boluda group
works and that will improve the operations of the terminal and its performance with new lanes, with a budget
of around €3 million ($3.4 million) is also on the list of activities. If everything goes according to plan, the
port authority will tender the project in the coming days.
[PortSEurope]
Terminal operators Cameroon: ICTSI preferred bidder for the development and management of
Kribi
Port development Spain: Las Palmas implementing projects orth €42.5 million
22/10/2018
19/06/2019
By James Robinson
A Scheme to improve freight train access to Southampton docks could cut tens of thousands of lorry
movements in the city each year, according to port bosses.
Port chiefs say work to lengthen the tracks at the Port of Southampton‘s Solent Rail Terminal has now been
completed. The work involved extended tracks at the site by 70 metres, allowing two large container trains to
be serviced simultaneously – rather than just one previously. Port bosses say this will improve efficiency at
the terminal by more than doubling the capacity of daily train services from five to a potential of 12.
They say this could increase container rail freight moves in the port from 60,000 per year to a potential of
180,000 moves per year. Port chiefs say this could take 180,000 lorry movements off the city‘s roads.
[Daily Echo]
19/06/2019
By Sam Chambers
Container shipping has reached a point of no return in terms of connectivity with analysts at Sea-Intelligence
suggesting the majority of carriers will have installed the necessary hardware to take their boxes online by
2025.
Connected containers have taken a long time to gain traction but in the past couple of months there have been
a slew of announcements that Sea-Intelligence reckoned in its latest weekly report will see more than
600,000 boxes going online with real-time tracking soon.
Maersk subsidiary Hamburg Süd‘s reefer fleet is being equipped with online trackers. MSC, CMA CGM,
and Maersk are each ordering 50,000 trackers for dry containers from Traxens, while Hapag-Lloyd has said it
will equip its entire fleet of some 100,000 reefer containers with trackers from Globe Tracker, and intimated
that some dry containers may be outfitted too.
Most recently, Israeli company Loginno announced during the Nor-Shipping exhibition outside Oslo earlier
this month the winner of its Contopia competition. Loginno will be outfitting the full container fleet of
Brazilian Log-In Logistica with live trackers free of charge.
―If this adds the value everyone believes will become the case, we are clearly past a point of no return, where
competitive pressure will compel all carriers to eventually provide this feature as a matter of course,‖
Sea-Intelligence stated. Whereas in the past, connected boxes were seen as a competitive value-add,
Sea-Intelligence predicted that will change soon into becoming a ―qualifier to even be competitive
Port development UK: Rail extension works at Southampton port completed
Container shipping: 600,000 containers set to be online soon
[Splash]
19/06/2019
Global container shipping is focusing more on vertical integration, moving into logistics and away from
consolidation amid slowing growth in container trade as well as digital disruption, Fitch Ratings says.
The credit implications are not yet clear as shipping companies' ability to generate relatively stable cash flows
through vertical integration could be offset by the competitive and fragmented nature of logistics markets.
We believe that the consolidation wave in container shipping is approaching its end. The top six container
lines account for over 70% of global market capacity. While we do not discount the possibility of further
consolidation through the defaults of smaller, financially weaker companies or their acquisition by stronger
rivals, we believe any large-scale acquisitions are unlikely. This is because only limited additional cost
efficiencies are achievable through further increases in scale. Moreover, obtaining regulatory approvals may
become challenging due to competition issues, while funding large acquisitions requires an ability to
demonstrate a clear deleveraging path, which could be difficult in the prevailing market conditions.
Global container shipping companies Capacity market share, %, as at March-2019
Shifts in strategic initiatives announced by a number of container shippers highlight the emerging trend of
vertical integration into logistics. This includes the acquisition of CEVA, one of the world's leading logistics
companies, by the fourth largest container shipper, CMA CGM.
Meanwhile A.P. Moller-Maersk is transforming itself into an integrated container logistics company with a
view to balancing its Ocean (shipping) earnings by developing its non-Ocean (logistics & services, and
terminals) business by 2023.
In its "Strategy 2023" document Hapag-Lloyd also emphasises the necessity of building leadership in
quality, agile organisation, digitalisation and automation. A similar focus is being pursued by COSCO
Shipping, which envisages improved customer experience through digitalisation and end-to-end services.
The shift from consolidation to vertical integration provides an opportunity for container shipping companies
to generate more stable cash flows and to reduce exposure to highly volatile freight rates. However, the
logistics business is also competitive and fragmented and includes freight forwarders, logistics companies,
digital start-ups and now container lines. The speed of adaptability along with the ability to build agile
operations will be necessary for long- term winners. Although boosted by e-commerce, global growth rates
in logistics have slowed down, and the margins in freight forwarding are under pressure from digital
Container shipping: Lines shift to vertical integration, moving into logistics and away from
consolidation
competition.
[Fitch Ratings]
19/09/2019
By Sabina Zawadzki
U.S. energy firm Anadarko Petroleum Corp on Tuesday gave the go-ahead for the construction of a $20
billion gas liquefaction and export terminal in Mozambique, the largest single LNG project approved in
Africa.
The announcement, which occurred at an event in Mozambique, was widely expected after Anadarko last
month flagged the decision date. "As the world increasingly seeks cleaner forms of energy, the Anadarko-led
Area 1 Mozambique LNG project is ideally located to meet growing demand, particularly in expanding
Asian and European markets," Chief Executive Officer Al Walker said in a statement here
Anadarko has agreed to be taken over by Occidental Petroleum Corp. Once that deal goes ahead, Occidental
has agreed to sell assets including the Mozambique LNG project to French oil major and large LNG trader
Total SA. Officials at Total were not immediately available for comment.
Natural gas use is growing rapidly around the world as countries seek to meet rising energy demand and
wean their industrial and power sectors off dirtier coal. The project, which has committed long-term supplies
to utilities, major LNG portfolio holders and state companies around the world, underscores the industry‘s
conviction that LNG demand will soar in years to come despite a slump in prices this year.
Low prices for the gas that is super-cooled for transportation prompted fears final investment decisions
(FIDs) such as Anadarko‘s would be delayed or scrapped. But the U.S. company gathered enough long-term
buyers to underpin the financing of the project.
―Flexible commercial arrangements, including an innovative co-purchase agreement with Tokyo Gas and
Centrica, have been instrumental in securing the project a roster of high- quality customers in a crowded
LNG market,‖ said Frank Harris, head of LNG Consulting at Wood Mackenzie.
LNG prices slumped this year as a jump in supply from new terminals in the United States, Australia and
Russia were not totally met by higher demand in Asia. The trade is also nowhere near as developed as the
market for crude oil, causing erratic price movements.
―At $20 billion, today‘s FID is the largest sanction ever in sub-Saharan Africa oil and gas,‖ added Jon
Lawrence, an analyst with Wood Mackenzie‘s sub-Saharan Africa upstream team.
The project is also expected to be transformational for Mozambique, one of the poorest nations on earth beset
by economic crisis, conflict stemming from a civil war and serious governance malaise, whose annual gross
domestic product is just $13 billion.
The government of Mozambique said the project is expected to create more than 5,000 direct jobs and 45,000
indirect jobs. With a 12.88 million tonne per year (mtpa) capacity, Mozambique LNG is one of the largest
greenfield LNG facilities to have ever been approved. It involves building infrastructure to extract gas from a
field offshore northern Mozambique, pump it onshore and liquefy it, ready for further export by LNG
tankers.
On the African east coast, the liquefaction plant will be able to sell LNG to both the lucrative Asian market,
Gas shipping Mozambique: Anadarko approves $20 billion LNG liquefaction and export terminal
home to 75%of global LNG demand, and to the flexible European market, which helps balance global LNG
trade by soaking up excess supply.
Mozambique LNG joins other mega-projects approved in the past year such as Exxon Mobil Corp‘s 16 mtpa
U.S. Golden Pass plant and Royal Dutch Shell Plc‘s 14 mtpa LNG Canada facility.
Still expected this year are approvals from Exxon for a 15.2 mtpa project also in Mozambique, and from
Russia‘s Novatek for its 19.8 mtpa Arctic LNG-2 plant. Anadarko‘s partners in the Mozambique LNG
project are Mitsui, Mozambique state energy company ENH, Thailand‘s PTT and Indian energy firms
ONGC, Bharat Petroleum Resources and Oil India.
[Reuters]
19/06/2019
By Sabina Zawadzki
U.S. energy company Anadarko has approved the construction of a $20 billion gas liquefaction and export
terminal in Mozambique, reflecting a global boom in LNG trade.
Its announcement late on Tuesday underscored the industry‘s conviction that global LNG demand,
particularly in Asia, will rise sharply despite a slump in prices this year. But the race is on for LNG producers
to approve their own projects before the market is deemed oversupplied.
A total of 60 million tonnes a year (mtpa) in liquefaction capacity, including Anadarko‘s 12.88 mtpa, has
now been given the go-ahead since October 2018, when Royal Dutch Shell signed off on its 14 mtpa LNG
Canada project.
That triggered a long-awaited wave of production project approvals.
Projects approved since 2018
Gas shipping: Global LNG export terminals awaiting approval in 2019
[Reuters]
18/06/2019
By Gabriella Twining
According to the latest EU Environment Agency (EEA) paper Contaminants in Europe‘s seas, 85% of
examined areas of European Waters encompassing the Baltic, North, Black, and Mediterranean seas, have
been classified as contaminated problem areas.
Marine pollution: 85% of European waters are contaminated problem areas
The researchers looked at pollution, deposits of heavy metals, and sediment that pose a threat to not only
marine life but also to companies who want to develop the coastline or nearby areas in an environmentally
friendly way. The problem areas assessed also take into consideration contaminants in the seawater, such as
biota (filter feeder organisms) and biological effects on sea life.
The paper aims to show how effective measures such as the Helsinki Commission and the Baltic Sea Action
Plan have been at combatting the levels of contaminants in Europe‘s seas. The problem areas were identified
through the Chemical Status Assessment Tool (CHASE+). The five-step procedure identifies whether the
levels of contaminants in the assessed zone merit problem area status.
CHASE+ identified high concentrations of contaminants in surface sediments in the Baltic Sea and Danish
Straits, totalling 77% of assessed units as problem areas. The Black Sea also had high levels of sediment
contaminants, with 57.9% classified as problem areas.
The Mediterranean, on the other hand, had 68% of areas assessed as non-problem areas. However, it must be
noted that countries such as Greece, Iceland, Ireland, Estonia, and Latvia do not monitor their sediment
contaminants on a regular basis.
When it comes to metals, such as mercury forming part of the contaminants, they were detected in 49.7% of
the total highlighted problem areas, although it has been assessed that concentrations are declining.
The researchers also looked into how the contaminants got into Europe‘s seas. This can be explained through
the growth of chemical discovery and production. According to a division of the American Chemical
Society, during 2000–15, the number of new chemical substances added to its database rose from 25 million
to more than 100 million. Further, global chemical production was expected to increase by 3% every year
from 2000. Heavy metals also play a part in the contamination of Europe‘s seas. Initially, they occur
naturally in the marine environment, but, for example, excess cadmium can appear in the waters as a
by-product of mining other metals or through the use of fertilisers.
Sea-based sources of contaminants originate from discharges of oil products from ships, infrastructures such
as oil platforms, and even the dumping of dredged material from ports or the surrounding areas. The resulting
contaminants sink to the seafloor and stay in the sediment.
Research into contaminations started after the Torrey Canyon marine pollution disaster in 1967 where a
super tanker collided with an offshore reef, causing 117,000 tonnes of oil to be spilled into the sea off the
coast of Cornwall, UK. Following this, European governments were prompted into passing legislation
throughout the 1970s to limit contamination in their seas, which included the Helsinki Commission.
[Dredging and Port Construction]
18/06/2019
By Nicola Capuzzo
Three officers of the Grimaldi Group who were on the Grande Europa conro ship which caught fire while
transiting off the island of Mallorca last month have been arrested in Spain for alleged arson.
The third officer Cristian Porritiello and two other crewmembers whose names have not been revealed are
Casualty Spain: Three crewmembers arrested in arson case involving Grimaldi’s Grande Europa
accused of setting off two fires on the ship on May 15. The Italian newspaper Corriere della Sera, which
broke the case, reported that prosecutors in Spain are also considering the possibility that the fires could have
been a ruse to get insurance payouts.
Grimaldi Group in a statement specified that they are cooperating with the investigations conducted by the
Spanish Guardia Civil and in any case the Italian shipping group has to be considered as a victim since ―it
suffered severe impacts on the operative, commercial and insurance sides‖.
Apart from the Grande Europa case, two other ships controlled by the Naples-based shipping company –
Cruise Ausonia and Grande America – were hit by fires in the last eight months, cases that are still being
investigated.
Grimaldi Group has called for more stringent controls and regulations for cars being transported and for
dangerous goods shipped in containers.
[Splash]
18/06/2019
The UN refugee agency, UNHCR, has warned that the Mediterranean ―will be a sea of blood‖ unless there is
intervention to prevent shipwrecks and drownings of migrants and refugees attempting the sea crossing into
Europe. It warns that the conflict in Libya is forcing thousands of people to flee, but the lack of rescue ships
puts more at risk of dying at sea.
Search & rescue Mediterranean: UN refugee agency warns of “sea of blood”
Credit: sosmediterranee.org
In recent days, almost 700 people are estimated to have left the coast of Libya – 40 percent arrived in Malta
and 11 percent in Italy; the fate of the rest is not known. Data from UNHCR and the International
Organization for Migration indicate that 1,940 people have reached Italy from north Africa since the
beginning of 2019 and almost 350 have died en route, a death rate of more than 15 percent.
The situation is likely to worsen after Italy passed an emergency decree targeting migrant rescue boats; ships
entering Italian waters without permission face fines of up to EUR50,000.
In the Eastern Mediterranean, at least seven migrants drowned and 57 others were rescued after their boat
sailing from Turkey capsized in the Aegean Sea near the Greek island of Lesbos. The recuse was carried out
by the Greek coast guard and a European Union patrol boat.
[itfseafarers.org]
18/06/2019
The European Commission has added eight new yards to the European list of ship recycling facilities.
The newest edition includes five Norwegian, two Danish and one Turkish yard to the list of facilities suitable
for the dismantling of EU-flagged vessels. The new yards in Denmark and Norway have been notified to the
commission by the competent national authorities, while the non-EU yard applied to join the list and
demonstrated that it fulfills the strict requirements for inclusion.
―The EU is committed to reducing the impact of EU shipping industry on the environment, including through
better protection of environment and workers in ship recycling,‖ Karmenu Vella, EU Commissioner for
Environment, Maritime Affairs and Fisheries, said. ―The updated list will increase the recycling capacity of
the European list, and give European ship owners a wider range of recycling options.‖
European ship owners own 35 percent of the world fleet. A large percentage of these is being dismantled on
beaches in South Asia, under conditions which are often harmful to workers‘ health and the environment.
From December 31, 2018, the EU Ship Recycling Regulation requires all large sea-going vessels sailing
under an EU member state flag to use an approved ship recycling facility included in the list.
With the new update, the European list of ship recycling facilities currently contains 34 yards, representing a
total available annual recycling capacity of nearly 2.4 million light displacement tonnes.
Also, another 28 yards located outside the EU have applied for inclusion in the European list of ship
recycling facilities. The commission said it is currently assessing how these yards comply with the
requirements for such inclusion. The European Community Shipowners‘ Associations (ECSA) has recently
called on the EU to give the audited South Asian ship recycling facilities ―a fair chance‖ to get on the EU list.
[World Maritime News]
18/06/2019
Shipbreaking: EU adds eight new yards to ship recycling facility list
Port development Israel: Haifa port construction continues despite US opposition
A source told ―Globes‖ that the US pressure over the Chinese construction company is not motivated by any
real security need.
Israel Ports Development and Assets Company and the planning authorities are proceeding with the
construction of Haifa Bay Port by a Chinese company, despite the escalating trade war between the US and
China and the threat by the US Senate to the continuation of construction of the port.
Construction of the port has lately been threatened from both without and within. The US has been criticizing
Israel‘s concession agreement with Chinese company SIPG for construction of the port and its operation for
25 years. At the same time, the Haifa District Court has issued an injunction halting the issuing of building
permits for the port, following a petition by the Haifa municipality concerning the expansion of the city‘s
airport.
“To consider foreign investments”
The US is exerting pressure through various channels out of concern about the Chinese company‘s proximity
to the existing Haifa Port, which is used by the US Sixth Fleet. The Trump administration has become
involved in recent months, and now the US Senate is considering a bill that includes a resolution calling on
Israel to consider foreign investments in Haifa Port. The resolution states that the US ―has an interest in the
future forward presence of United States naval vessels at the Port of Haifa in Israel, but has serious security
concerns with respect to the leasing arrangements of the Port of Haifa as of the date of the enactment of this
Act and should urge the Government of Israel to consider the security implications of foreign investment in
Israel.‖
One of the sensitive security points is the fact that the Haifa Port sea department, which also manages naval
traffic, will be transferred to the management of Israel Ports Company, which
is also responsible for the Haifa Bay Port. Israel Ports will have to carefully guard the information in order to
prevent the Chinese company from learning about the anchoring plan at nearby Haifa Port.
A source close to the construction of the port said, ―There is no need to operate a port costing billions in order
to discover who is anchoring at Haifa Port. It‘s enough to look out from an apartment on the Carmel
mountain range. You can see the port perfectly well from the Hadar neighborhood without binoculars.‖ The
source believes that the US pressure is not motivated by any real security need.
Unpaved roads
The internal pressure comes from the Haifa municipality, which yesterday petitioned the District Court,
alleging that the new port was preventing the expansion of the city‘s airport and turning it into a small
international airport. Since the election of Einat Kalisch-Rotem as mayor, the municipality tried to change
the construction terms for the port on the District Appeals Committee, and petitioned the court after this
appeal was dismissed. The municipality filed another petition today asking for the tender documents and the
contract signed with SIPG. This petition alleges, ―Disclosure of the information it is asking for is of supreme
importance… It is unacceptable for a contract amounting to hundreds of millions of shekels, which has broad
effects and consequences for a large number of people over an extensive area to be managed in absolute
darkness without a minimum of transparency.
The Haifa municipality is meanwhile disrupting the development plans for the port. The municipality was to
have paved access roads to the port, but has not yet begun to do so, and it appears that it will not do so.
SIPG stated that it would be unable to operate the port without access roads, and Israel Ports is now trying to
find solutions. Despite the delays, however, the planning authorities and Israel Ports still believe that
construction of the port will be completed as planned in 2021, and that speeding up the pace of the work can
make up for the delay.
[Globes]
18/06/2019
By James Baker
The future of Contship Italia‘s Cagliari International Container Terminal (CICT) remains in doubt following
the decision last week by its last major customer, Hapag-Lloyd, to discontinue calls to the Sardinian
transhipment hub
Hapag-Lloyd stated that it had been ―forced to stop acceptance of cargo to and from Cagliari with immediate
effect as CICT has stopped serving container vessels‖.
The Port System Authority of the Sardinian Sea, Cagliari‘s administrative body, insisted that Contship Italia
had not closed the facility, the full operation of Cagliari port was continuing, and that it was accepting
commercial traffic as usual.
A spokesman from Contship Italia shareholder Eurogate said that ―all parties are still negotiating the future
of the terminal‖ and denied that Hapag-Lloyd had cancelled the call because of plans to shutter the facility,
highlighting that three other calls related to scheduled services connected to Cagliari by Hapag-Lloyd had
earlier been re-routed to other Mediterranean ports earlier in the year as the German carrier sought to improve
its network efficiency. This had led to a slowdown at Cagliari, leading to industrial action as port workers
were laid off and May salaries went unpaid.
After Hapag-Lloyd‘s departure, Unimed (UFS) briefly added calls at CICT to its ‗New Tyrrhenian‘ feeder, a
loop that connected Livorno, Genoa, Catania and Naples with Cagliari. This call has been dropped again and
— for the time being — Sardinia is no longer served by any lo-lo container ships, but exclusively by ro-ro
freighters and ro-pax ferries, according to Alphaliner.
[Lloyd‘s Loading List]
18/06/2019
APM Terminals, a subsidiary of the Danish shipping group Maersk, has invested €47 million
($52.6 million) in its terminal in Barcelona to buy 29 straddle carriers from Konecranes Noell.
Narcís Pavón, managing director of Terminal de Contenedores del Muelle Sur (TCM), said it was the largest
investment by the company locally. The machines are suitable to be automated in the future, with the
intention of reducing costs and increasing efficiency. The cranes can lift up to 50 tonnes and are equipped
with a system to save fuel and reduce carbon dioxide emissions.
Other investments that APM Terminals has made in Barcelona are the purchase of two cranes for ships that
transport up to 13,500 containers, a platform for refrigerated connections and technological innovations that
allow to consult in real time the state of the ships.
TCM is 100% owned by APM Terminals and has an annual throughput capacity of 2.3 million TEU.
[PortSEurope]
Terminal operators Italy: Future of Contship Italia’s Cagliari International Container Terminal in
doubt
Terminal operators Spain: APM Terminals invests €47 million in its Barcelona terminal
Marine fuels: Using ammonia as a fuel for tankers
18/06/2019
By Craig Jallal
A new concept for an ammonia tanker powered by an internal combustion engine burning the cargo has been
released by C-Job Naval Architects of the Netherlands.
The concept is the product of C-Job Naval Architects lead naval architect Niels de Vries, who has now
completed several years of research culminating in his Master's thesis Safe and effective application of
ammonia as a marine fuel at TU Delft. He said ―While this research is unique in its scope and provides a
valuable first step towards the application of ammonia as a marine fuel, further research is still required to
explore its full potential and feasibility.‖
It is his contention that ammonia can be safely and effectively applied as a marine fuel to reduce harmful
emissions in the maritime industry. The ground-breaking research uses a new concept design, an ammonia
carrier fuelled by its own cargo, to study the concept of using ammonia as a marine fuel and achieve a
significant reduction in greenhouse gas emissions in shipping. It shows ammonia can be used as marine fuel
if a number of safety measures are included in the design.
Mr de Vries said ―Reviewing all ammonia power generation options, the solid oxide fuel cell is clearly the
most efficient. However, it does have practical challenges as the power density and load response capability
are not on an acceptable level yet. Therefore, in the short term applying the internal combustion engine is the
way to go.‖
―With IMO goals to reduce total annual GHG emissions by at least 50% by 2050 compared to 2008 and
eventually fully eliminate harmful emissions, it is of the utmost importance that the global maritime industry
looks into renewable fuels like hydrogen, ammonia and methanol,‖ he said.
C-Job has a track-record of using the latest technologies to design sustainable and future- proof vessels and
the company has felt for a number of years that ammonia could be a viable and promising option for a clean
and sustainable fuel. C-Job joined the Ammonia Energy Association last year to intensify collaboration with
other industries on this subject to realise its ambition. Together with Proton Ventures and Enviu, C-Job
established a consortium in 2017 to further investigate ammonia as marine fuel.
With the completion of this theoretical research, C-Job has provided a significant contribution to the first
phase of the consortium project which will now move towards the next phases, which includes lab testing,
pilot and evaluation.
[Marine Propulsion & Auxiliary Machinery]
17/06/2019
The Greenpeace ship Arctic Sunrise overtook a BP rig near the drill site of a major new oil well in the North
Sea on Sunday, causing the rig to make a U-turn.
Oil & gas exploration North Sea: BP rig U-turns after Greenpeace ship overtakes
Credit: Greenpeace / Jiri Rezac
The incident took place approximately 20 miles short of the drill site off Scotland. The standoff between
climate activists and BP has been on-going for over a week as activists continue to stop BP‘s plans to drill a
new well in the Vorlich oil field, containing an estimated 30 million barrels of crude.
Greenpeace UK climbers have worked in teams to board the rig Paul Loyd JNR. 11 activists have been
arrested so far in the course of the week-long occupation, and three freelance photographers have also been
arrested but subsequently released. In the early hours of Sunday activists attempted to re-board the rig for the
fourth time, but the BP vessel towing the rig sped away from them. Greenpeace International activists then
pursued and overtook the rig at around 1pm.
BP says it had secured an injunction against the Arctic Sunrise. ―Given Greenpeace‘s repeated interference
and reckless actions directed at our lawful business and their continued illegal defiance of court orders and
police action, we have ... this injunction as a precautionary measure to protect the safety of people and
operations,‖ said BP in a statement.
Earlier on June 10, BP issued a statement saying: ―In all operations safety is our top priority. While we
recognize the right for peaceful protest, the actions of this group are irresponsible and may put themselves
and others unnecessarily at risk.‖
"We are working with Transocean—the rig‘s owner and operator—and the authorities to assess the situation
and resolve it peacefully and safely. We share the protestors‘ concerns about the climate. We support the
Paris agreement. And we are working every day to advance the world‘s transition to a low carbon future.‖
―We‘re reducing emissions from our own operations – down 1.7 million tonnes last year – improving our
products to help our customers reduce their emissions, and creating new low carbon businesses. We are
committed to being part of the solution to the climate challenge facing all of us.‖
Greenpeace notes that its own actions come after Pope Francis warned oil bosses gathered in Rome on Friday
June 14 that when ―faced with a climate emergency, we must take action accordingly, in order to avoid
perpetrating a brutal act of injustice towards the poor and future generations.‖
Greenpeace UK executive director John Sauven said: ―BP‘s oil rig has done a U-turn and we urge chief
executive Bob Dudley to do the same. BP must stop drilling for new oil and switch to renewables.‖
He said: ―BP will face opposition wherever they plan to drill for more oil, from the North Sea to the Arctic
and from the mouth of the Amazon to the Gulf of Mexico. We have tried letters, meetings, petitions – none of
that worked. Now we‘re going to stand in BP‘s way to prevent further harm to people at the sharp end of the
climate crisis.
―In the long run, this is a confrontation BP can‘t win. They are in it for their profits, we‘re in it
for our planet‘s future.‖
Despite BP claiming that its business is compatible with the Paris climate agreement, Greenpeace argues
BP‘s operations are in direct opposition to efforts to prevent catastrophic climate change. The organization
asserts:
•Despite scientists warning that existing oil and gas reserves already exceed what we can safely burn, BP is
seeking to expand its operations in the Gulf of Mexico while welcoming President Trump‘s move to open up
the Arctic National Wildlife Refuge to oil drillers;
•BP is outspending other oil majors on efforts to lobby against climate action. An investigation by Unearthed
revealed BP successfully lobbied the Trump administration to weaken regulations that would have prevented
the release of millions of tonnes of the potent greenhouse gas methane;
•BP capital expenditure remains heavily skewed towards fossil fuels. In 2018 it spent around $16 billion
adding to oil and gas reserves, with $500 million – just over three percent – being spent on alternatives to
fossil fuels. As Bob Dudley admitted to the
Washington Post: ―If someone said, ‗Here‘s $10bn to invest in renewables,‘ we wouldn‘t know how to do it.‖
[The Maritime Executive]
17/06/2019
Buy Sam Chambers
Iranian tankers are increasingly voyaging incognito to get around US sanctions.
Latest AIS data analysed by shipbroker Gibsons shows that approximately 33 Iranian very large crude
carriers (VLCCs) have their AIS trackers completely switched off, a notable increase from just 12 units in
April, just before the expiry of the US waiver program.
While the National Iranian Tanker Company (NITC) has engaged in ship-to-ship transfers in the past,
increasingly the Iranian tactic is to use its tankers for floating storage, Gibson noted. Argus Media has
estimated that floating storage jumped from 7m barrels to 20m barrels last month.
Analysts at TankerTrackers.com have recently spotted one Iranian tanker suddenly appearing in Southeast
Asian waters having gone dark for a number of weeks since leaving Kharg Island in Iran last month. The
2008-built, 317,367 dwt Horse, belonging to NITC, suddenly appeared in Southeast Asian waters late last
week. After weeks of having its AIS switched off, the ship flicked its transponders back on, showing a
changed destination to China and a changed draught.
NITC is one of the world‘s largest tanker operators with a fleet of 59 ships made up of 56 tankers, an LPG
carrier and two OSVs, according to data from VesselsValue.
[Splash]
Oil shipping Iran: National Iranian Tanker Company increasingly operating in the dark
17/06/2019
Canada‘s first propane export terminal – Altagas‘s Ridley Island Export Terminal (RIPET) – dispatched its
first in May 2019 aboard the VLGC Sumire Gas for delivery to Japan‘s Kyushu LPG Fukushima terminal.
With the commencement of operations at RIPET, the total voyage time on a Prince Rupert to Chiba trade will
be just 10 days, compared with 25 days for a voyage between Houston and Chiba, via the Panama Canal.
Propane will reach the RIPET plant from gas fields via rail, which will then be processed and loaded onto
vessels. The total capacity of the terminal is 1.2 million tonnes per annum, which translates to two VLGCs
per month on average.
Given the favorable geographic location and lower price, RIPET will benefit Asian customers as well as
Canada‘s propane industry, which earlier depended on the US exports. Canada‘s share in LPG seaborne trade
will increase with the commencement of exports from RIPET, and consequently, the country will try to cater
to the biggest LPG consumers.
A rise in Canadian LPG production will also impact Asian LPG imports from other regions. In our view
lower shipping costs and increased competitiveness of Canadian LPG with that of the US and Middle East
will favour the former.
The opening of the RIPET facility will also be of benefit to China, which is actively seeking different sources
of LPG with the recent escalation in the US-China trade war. With the 25% tariff slapped on US propane
exports, there were a few Chinese players which opted for imports of small parcels of Canadian LPG through
Petrogas Ferndale‘s export terminal in the US in January 2019. In addition, Japan‘s Astomos Energy – a
major LPG importer – entered into a multi-year contract in 2017 for importing 50% of the output from
RIPET.
Although RIPET is important, we do not expect major changes in demand for VLGCs as the VLGCs Sumire
Gas and Maple Gas (recently delivered), which are on time charter with Astomos Energy, will be the only
vessels used to transport propane from the Canadian terminal in the short term. However, we do expect
RIPET to have an impact on LPG pricing, as it will lead to an increase in the outflow of Canadian and US
LPG supplies, thereby strengthening West Canada and Mont Belvieu LPG prices.
[Drewry Maritime Research]
17/06/2019
Japanese energy company INPEX is expected to agree in principle a deal with the Indonesian government to
build an $18.4bn liquid natural gas (LNG) plant in the eastern Indonesian province of Maluku, the Nikkei
Asian Review reports.
The plant, which would have an annual production of 9.5 million tons, would be one of the largest to be
operated by a Japanese company. It would supply LNG to the domestic market, and take advantage of
China‘s interest in diversifying its energy supplies. The plant would
process gas from the Masela reserves in eastern Indonesia, which is 65% controlled by INPEX and 35% by
Royal Dutch Shell, said Nikkei.
Gas shipping Canada: First propane export terminal became operational
Gas shipping Asia: Japan’s energy company INPEX in talks to build $18 billion LNG plant in
Indonesia
INPEX may sign the deal as early as Sunday if agreement on details can be reached with the Indonesians,
Nikkei reported. If a deal is reached, the plant is expected to go online in the late 2020s.
Global LNG demand is expected to jump from about 300 million tons in 2018 to 800 million by 2050.
[Global Construction Review]
17/06/2019
Estonian port company Tallinna Sadam signed a cooperation agreement and a building title agreement with
PK Terminal to develop a dry bulk and general cargo terminal in Muuga Harbour.
Administrated by Port of Tallinn, Muuga Harbor handles round timber, wood pellets, metal products and
crushed stone.
Under the agreements, PK Terminal will assume the usage rights of the two quays and their hinterland area
used in the former steel sheet galvanizing plant, along with the Koorma 2 real estate. The total area of the dry
bulk and general cargo terminal development is 4.4ha. The agreements are valid for a period of 20 years, with
the option to extend for additional 15 years. Scheduled to be achieved in the next three years, the planned
capacity of the terminal will be up to 500,000t per annum.
Building a new terminal will create additional sources of revenue from the port for Tallinna Sadam due to
handling of more vessel calls and collection of additional charges from cargo handling and land use.
The port operator is expected to gain nearly €14.6m in revenue from the agreements during the total 20-year
period. PK Terminal operates as part of the Palgard Crane Group, which manages operations in Sweden and
the Baltic states. Palgard Crane is primarily engaged in loading and unloading and transport of materials in
ports, warehouses and terminals.
Last year, Tallinna Sadam serviced 10.6 million passengers and 20.6 million tonnes of cargo. The company
also operates in shipping business through its subsidiaries OÜ TS Laevad and OÜ TS Shipping.
[Ship Technology]
17/06/2019
A court in Chile has blocked a $450m port project in Chile‘s Atacama region after it determined that the
environmental impact study (EIS) ―lacked relevant or essential information‖.
Among the missing items in the Environmental Impact Study:"CopiaPort-E" (in Spanish), submitted
Copiaport-E Operaciones Marítimas Ltda. in April, were plans for relocating local residents, reports
BNamericas. The Environmental Evaluation Service of the Atacama Region said in its statement of 11 June
2019 (in Spanish) that the gaps cannot be filled through mere clarifications.
The Copiaport-E project in the Punta Cachos peninsula involves a bulk terminal capable of handling ships up
to 280m and a multi-purpose terminal with a 500m long dock and a handling capacity of 300,000 containers
a year. Work on the port was scheduled to start in February next year.
Project owner, CopiaPort-E Operaciones Marítimas, is reported to have said in a release that the decision
Terminal operators Estonia: PK Terminal to develop dry bulk and general cargo terminal in Muuga
Harbour
Port development Chile: Court blocks $450 million port project over skimpy environmental impact
study
―took us by surprise,‖ and that a modification to the EIS would be discussed in the coming days.
[Global Construction Review]
17/06/2019
It is losing so much water that it may raise global sea levels by a millimetre this year.
Source: Snow and Data Centre, University of Colorado Boulder / The Economist
Greenland‘s misnomer is the result of a marketing campaign by Erik the Red who wished to attract Viking
settlers to its icy landscape. Little did he know that the land had been covered in lush forests many millennia
before he was born. Nor could he have fathomed that, a millennium after his death, the vast ice sheet would
be in rapid retreat.
The ice atop Greenland holds enough water to raise global sea levels by more than seven metres, should it all
melt and run off into the oceans. For this reason, climate scientists closely monitor its seasonal trends, and in
particular how quickly it melts in the spring leading up to the late summer ―ice minimum‖, after which it
starts to grow again. The latest data shows that the area of melting ice this year is unusually high. On June
12th 712,000 square kilometres of the ice-sheet (over 40% of the total) were melting. This is well outside the
norm for the past 40 years (see chart).
Several factors are to blame. First, a natural cycle known as the North Atlantic Oscillation is encouraging
ice-melt. Then there is long-term warming driven by rising greenhouse-gas emissions. Third, climate change
has also weakened the jet stream, allowing a warm and humid weather system to settle over northeastern
Greenland. As a result, the seasonal ice melt began two weeks early. According to data published on the Polar
Portal, a Danish climate- research website, Greenland is currently losing 3bn tonnes of ice every day, roughly
three times the average for mid-June in 1981-2010.
The extent of the melting is not entirely unprecedented for this time of year. Researchers have seen similar
events in 2002, 2007 and 2012. Each portended a record low at the end of the summer. Although a switch in
the weather could still turn things around, the early melt will result in darker snow and ice, which absorb
more sunlight and hastens the melting process, says Thomas Mote of the US National Snow and Ice Data
Centre.
Oceans: The Greenland ice sheet is melting unusually fast
―If this year is anything like 2012 [which set the current record for ice melt], then we will get in the region of
1mm of sea-level rise in one year just from Greenland,‖ says Jason Box, a professor at the Geological Survey
of Denmark and Greenland. The oceans are rising by 3.3mm each year because of global warming.
Greenland may not be green, yet, but it is far less icy than in Erik‘s time.
[The Economist]
17/06/2019
By Mike Schuler
The United States has charged a Greek cargo ship operator and two of its chief engineers with environmental
crimes for allegedly failing to record the illegal dumping of oily waste into international waters and then
obstructing justice by ordering the ship‘s crew to lie about it.
A federal grand jury in Los Angeles last week returned the five-count federal indictment against Capital Ship
Management Corporation, a ship management company based in Piraeus, Greece, and Ioan Luca and Ionel
Surla, both from Romania, alleging conspiracy to fail to maintain an accurate oil record book and to defraud
the United States, falsification of records in a matter of federal administration, witness tampering, and
obstruction of justice, according to the U.S. Justice Department.
Luca and Surla both previously served as chief engineer on board the CMA CGM Amazon, a 115,590-dwt
containership:
•egistered under the flag of convenience (FOC) of Liberia
•operated by French shipping line CMA CGM - Compagnie Maritime D'Affrètement - Compagnie Générale
Maritime
•managed by Piraeus-based Capital Ship Management Corporation
•owned by the Piraeus-based one-ship mailbox company Dias Container Carrier SA.
The indictment alleges that Luca and Surla had previously ordered crew members of the CMA CGM
Amazon to use a portable pump and flexible hoses in the ship‘s engine room to transfer oil-contaminated
bilge water to a tank designed to hold clean water, then dispose of the water directly overboard into
international waters, avoiding use of the oily water separator.
Luca and Surla then failed to record the discharges in the ship‘s oil record book, a document required by
federal law. The ports of call of the CMA CGM Amazon included various ports in Asia, Egypt, and Canada,
Marine pollution U.S.: Grand jury charges Greek ship manager and two engineers over oily waste
dumping and cover-up
as well as the Port of Los Angeles, according to the indictment.
While at the Port of Los Angeles on 11 Jan 2019, the ship presented the false oil record book to U.S. Coast
Guard inspectors during a Port State Control (PSC) standard examination, which identified the following
seven serious deficiencies that led to a 13-day detention of the vessel in the port.
Category Deficiency Defect Number
Fire safety Other (fire safety) unspecified 1
Pollution prevention Control of discharge unspecified 2
Pollution prevention Pumping / piping / discharge
arrangements on board
unspecified 1
Propulsion and
auxiliary machinery
UMS - ship unspecified 1
Safety Management
System (ISM)
Reports of non-conformities,
accidents and hazardous
occurrences
unspecified 1
Safety Management
System (ISM)
Safety and environmental policy unspecified 1
Capital Ship Management and Luca also have been charged with obstruction of justice and witness
tampering for allegedly instructing crew members to lie to the Coast Guard about events that occurred on the
ship while at sea. In conducting the investigation, Coast Guard personnel relied on the statements of the
ship‘s crew as well as documents, the indictment states.
If convicted of all charges, Luca faces a statutory maximum sentence of 61 years in federal prison while Surla
faces a statutory maximum sentence of 11 years in federal prison. Capital Ship Management and Luca, who
was arrested last month and is free on bond, were previously named in a criminal complaint. Surla is
currently believed to be in Romania.
In a related case, Marian Gavriluta-Strat, the Romanian second engineer of the CMA CGM Amazon has
agreed to plead guilty to charges related to his failure and causing the failure to maintain an accurate oil
record book. Gavriluta-Strat is scheduled to enter a guilty plea to the charges on June 19. He faces a statutory
maximum sentence of six years in federal prison.
[gCaptain / Equasis]
17/06/2019
By Jacob Resneck
Three Alaskans are appealing a deal reached between Carnival Corporation and federal prosecutors after the
world‘s largest cruise company recently admitted to violating its felony probation.
The Miami-based cruise giant admitted to illegally discharging wastewater, plastics and other material and
then trying to cover it up. One of its violations included tens of thousands of grey water discharged last year
in Glacier Bay National Park.
Three Alaskans claimed harm from Carnival‘s pollution under the federal Crime Victims Rights Act. But the
Marine pollution U.S.: Alaska fishermen appeal $20 million settlement of cruise line Carnival
district court judge denied the motion. Eric Forrer, a retired fisherman who lives on Auke Bay near Juneau,
said that left him perplexed. ―If the commercial fishermen, who are actually on the water, harvesting
resources, from the very waters that Carnival is polluting aren‘t injured — nobody is injured,‖ Forrer told
CoastAlaska.
The settlement includes expanded court-ordered monitoring and a $20 million penalty in addition to the $40
million the company has already paid in 2016.
―That sounds like a lot of money to normal people,‖ said Kendra Ulrich, shipping campaigner for
Stand.earth, the San Francisco-based group that‘s coordinating the legal challenge filed Monday. ―But for a
multi-billion-dollar international corporation it cannot even be characterized as a slap-on-the-wrist.‖
Carnival posted a $3.2 billion profit during the last fiscal year.
In a written statement to CoastAlaska, Carnival said that environmental protection is a top corporate priority.
―We treasure the places we visit, and our goal is to leave these destinations even better than before we first
arrived,‖ Roger Frizzell, spokesman for the Miami-based company wrote.
Carnival owns more than 100 cruise ships operated by nine cruise brands. It plans to hire a chief compliance
officer to oversee its subsidiaries including Holland America, Princess Cruise Lines and Cunard.
The appeals court is expected to rule later this week.
[KFSK Community Radio]
17/06/2019
By Jonathan Dienst, Tom Winter and Pete Williams
Investigators believe the ship was loaded with drugs after it left its last port of call in the Bahamas. Two crew
members have been arrested.
Federal authorities seized 15,000 kilos of cocaine, worth as much as $1 billion, at a Philadelphia container
terminal, officials said Tuesday. A second mate and a crew member
have been arrested in the massive bust. There were 16.5 tons of the drug found in seven shipping containers
late Monday night, officials said.
―This is one of the largest drug seizures in United States history," U.S. Attorney for the Eastern District of
Pennsylvania William McSwain tweeted. "This amount of cocaine could kill millions
MILLIONS — of people. My Office is committed to keeping our borders secure and streets safe from deadly
narcotics."
The street value of all the seized cocaine could be as high as $1 billion, according to federal prosecutors in
Philadelphia. The illicit haul was found aboard the Liberia-flagged container ship MSC Gayane, which had
traveled from Chile, Panama and the Bahamas, according to NBC Philadelphia.
Federal authorities in Pennsylvania arrested and charged two of the MSC Gayane's crew members with
intentionally conspiring to possess with the intent to distribute. Homeland Security Investigations has filed
an arrest warrant affidavit which details how Ivan Durasevic and Fonofaavae Tiasaga allegedly coordinated
the loading of cocaine onto the vessel.
Marine pollution U.S.: Alaska fishermen appeal $20 million settlement of cruise line Carnival
Drug trafficking U.S.: 16.5 tons of cocaine worth up to $1 billion seized on MSC container ship in
Philadelphia
The court document says that Durasevic, the crew's second mate, admitted his role in bringing the cocaine on
the vessel. It says that he got a call from the chief officer to go to the deck after the vessel left Peru, at which
time he saw nets on the port side (left side facing the bow) by the ship's crane. The document says Durasevic
and approximately four other individuals, some wearing ski masks, assisted in pushing the nets containing
blue and black bags of cocaine into the hold and loaded them into containers.
Durasevic later allegedly told agents that he was paid $50,000 for his role in the scheme. He allegedly told the
feds that Tiasaga was one of the crew members who helped him load the cocaine.
Tiasaga allegedly told agents that it was Durasevic who operated the crane that brought on the bales of the
cocaine after the MSC Gayane was approached by six separate boats during the night while the ship was
sailing between Panama and Coronel. He says an additional eight boats brought more cocaine as the vessel
moved north between Coronel, Peru and Panama.
[NBC News]
17/06/2019
The K Line car vehicles carrier Diamond Highway caught fire Saturday night near the northeastern end of the
Spratly Islands archipelago, and she is now adrift, according to the Philippine Coast Guard.
The Diamond Highway reported a fire on board late on Saturday, said PCG spokesman Captain Armand
Balilo, at a position in the vicinity of Reed Bank. Her 25 crewmembers abandoned ship and were rescued by
another ro/ro vessel, the Canopus Leader, which was passing nearby en route to Thailand.
The Diamond Highway was under way from Singapore to Batangas at the time of the casualty. As of Monday
afternoon, she had drifted away from Reed Bank towards the vicinity of Malampaya, a gas field off Palawan,
Balilo told Philippine media. The PCG vessel BRP Cabra is on scene and attempting to extinguish the blaze.
The 2004-built Diamond Highway is a 19,086-dwt vehicles carrier registered under the flag of convenience
(FOC) of Panama since 2004. She is owned and operated by the Japanese company K Line since Sep 2013.
Source: Equasis
On 10 May 2019, a more detailed Port State Control (PSC) inspection in Bremerhaven, Germany, identified
the following very serious deficiencies onboard the Diamond Highway:
Category Deficiency Defect Total
ISM ISM, related deficiencies Not as required 1
Flag of convenience casualty South China Sea: Panama-flagged vehicles carrier catches fire near
Spratly Islands
MLC, 2006
Accommodation,
recreational facilities,
food and catering
Provisions quality and nutritional
value
Rotten 1
Safety of navigation Charts Not updated 1
Safety of navigation Monitoring of voyage or passage plan Not as required 1
Safety of navigation Nautical publications Missing 1
Structural conditions Hull damage impairing seaworthiness Dented 1
Source: Equasis
Only the International Maritime Organization (IMO), the United Nations organization in charge of maritime
safety, and the Panama Maritime Authority (AMP) – will be able to provide a satisfactory explanation why
this vessel is still allowed to sail the seven seas.
[The Maritime Executive]
17/06/2019
By Maria Bolevich
Many plastics float, block sunlight, and do not degrade—a recipe for altering the physical properties of the
water underneath.
By blocking sunlight, floating plastics limit the energy available for photosynthesis. Photo credit: Cavan/Alamy Stock Photo
Some damage caused by plastic waste is dramatic and well known: every year, plastic is an accomplice in the
deaths of millions of marine birds, mammals, turtles, and fish. But as new research suggests, plastic pollution
may soon have far more insidious effects.
In the paper Can plastics affect near surface layer ocean processes and climate?, published in the Marine
Marine pollution: How enough floating plastic could change the sea
Pollution Bulletin, Renjith VishnuRadhan, a postdoctoral researcher at the Indian Institute of Technology
Bombay, outlines ways in which plastic may affect the physical processes in the ocean. Even a thin coating of
plastic, VishnuRadhan and his colleagues write, could prevent solar radiation from penetrating into the
ocean‘s depths, with consequences from the surface to the seafloor.
Drawing on existing research into ocean processes, rates of pollution, the reflectance of different types of
plastics, and other related topics, VishnuRadhan and his colleagues explore
how floating plastic pollution may, in the coming decades, impact physical and biogeochemical processes,
and possibly even the climate.
Source: Renjith VishnuRadhan: Can plastics affect near surface layer ocean processes and climate?. Marine Pollution Bulletin [Mar 2019]
Obscuring sunlight is not unique to plastic, says Boris Worm, a marine ecologist at Dalhousie University in
Halifax, Nova Scotia, who was not involved in the new paper. ―Clearly any material that is optically dense
will change the optical properties of ocean surface waters,‖ he says.
Many plastics absorb sunlight from the infrared, visible, and ultraviolet parts of the spectrum— just like
many other small floating objects such as phytoplankton or dissolved organic matter. But unlike these other
objects, plastic is stubbornly persistent.
According to VishnuRadhan, plastic isn‘t causing a noticeable effect yet. But it could within the next few
decades. Once this happens, one effect could be a change in the depth of the thermocline—a band of ocean
where the temperature changes rapidly. The report explores how plastic in the ocean could also affect the
exchange of gases between the ocean and the atmosphere; the marine carbon, nitrogen, and oxygen cycles;
the stability of the water column; and the ocean‘s heat balance and energy budget.
In his own work studying anthropogenic pressures on deep sea ecosystems, Alex David Rogers, a zoologist
at the University of Oxford, United Kingdom, who was not involved in the new study, says that in some areas
of the ocean plastics already reach sufficiently high
concentrations that they can scatter sunlight, limiting its availability for photosynthesizing organisms. ―The
results of the paper are important,‖ Rogers says. It offers yet ―more evidence that plastic is extremely harmful
to the health of the ocean.‖
[Hakai Magazine]
State of maritime piracy 2018: Assessing the human cost
17/06/2019
The publication of The State of Maritime Piracy 2018 report marks the ninth year that One Earth Future
(OEF) has assessed the human cost of maritime piracy.
Over the years, the report has evolved from being first a project of Oceans Beyond Piracy to currently being
part of the Stable Seas program. Our focus has expanded from piracy off the coast of Somalia to piracy and
robbery of vessels in the Gulf of Guinea, Southeast Asia, and Latin America and the Caribbean. What has
remained constant is our goal to explain and quantify the magnitude of these crimes and the profound impact
they have had on stakeholders and, most importantly, the victims.
Key findings
•n 2018, the Gulf of Guinea was the area worst affected by piracy and maritime robbery of vessels
worldwide. The number of incidents increased by 15 percent over 2017. The number of attacks where crew
members were held for ransom on hijacked vessels or kidnapped for ransom from vessels was alarmingly
high.
•No hijackings were reported in the western Indian Ocean in 2018, including Somalia, the Gulf of Aden, or
the Red Sea, in spite of pirate groups retaining the capabilities. This was the result of efforts on land by
international agencies, coastal communities, and maritime authorities preventing safe haven for pirate
groups. Additionally, the implementation of Best Management Practices (BMP5) by crews and onboard
security teams and the efforts of the European Union Naval Force (EUNAVFOR) and Combined Maritime
Forces (CMF) and other navies all contributed to decreasing the number of attacks.
•ncidents in Latin America and the Caribbean increased by 20 percent. Anchorages off Barcelona in
Venezuela, St Vincent and the Grenadines, and St. Lucia and Grenada represented incident hotspots in Latin
America and the Caribbean during 2018.
•ncidents in Asia for the most part remained the same as in 2017. Several suspects were arrested for crimes
associated with piracy and robbery of vessels due to effective cooperation by regional law enforcement
agencies.
[Stable Seas]
Inland waterways Germany: Trade suffers under broken locks
17/06/2019
By Ines Nastali
Germany‘s locks are ageing and the lack of maintenance and upgrades for them threatens the navigation of
ships through the country‘s inland waterways, the federal association of inland navigation (Bundesverband
der Deutschen Binnenschifffahrt, BDB) has warned.
In total, Germany has 300 locks to enable navigation of 7,300 km of inland waterways – of which the Rhine
is the longest with 900 km. 60% of locks were built before 1950, 20% before the start of the 20th century,
resulting in currently high maintenance demand due to the old structures.
The government has reacted to the claims and launched a masterplan for inland waterways earlier this year.
―The status of the inland waterways infrastructure is a mirror of a lack of investment of the past years,‖ the
federal ministry for traffic and digital infrastructure‘s states in the masterplan‘s report, promising to work on
climate change-induced flood risks, digitising construction projects, as well as transporting more cargo via
waterways than on land.
It also confirmed that every fifth lock has to be replaced or substantially refurbished, resulting in costs of
about EUR5.2 billion (USD5.8 billion). If those works are not being carried out, shipping might come to a
stop as shippers struggle to find vessels small enough that could pass through alternative routes. However,
the ministry has only committed to spend EUR969 million of its budget and states that maintenance will be
prioritised instead of building new locks. While the ministry has created 161 jobs for the necessary work, it
argues that plans have not come into fruition because it struggles to find engineers that can fill these
positions.
In addition, the replacement parts needed for the old locks have become a rarity, resulting in maintenance
taking longer. For example, for years is has been known that the bollards for the six locks along the
Wesel-Datteln Canal, which connects the Rhine with the industrial west of Germany, are worn out and ships
sometimes pull them out. Here and elsewhere those have been replaced against lock staff that manually tows
the ships, which slows the lock-passing process down.
―We struggle to find spare parts for the lock, and two years ago, we even struggled to find a technician who is
familiar with our lock system. At that time, there were two people in Germany still at work who could repair
it,‖ Marius Jazynka, lock master at the Friedrichsfeld lock told the German public broadcaster WDR.
―If this waterway becomes unavailable, then we will have significant problems operating production
facilities,‖ warned Jörg Harren, chief executive officer of industrial cluster Chemiepark Marl that relies on
the Wesel-Datteln Canal.
The BDB‘s and Harren‘s concerns are also a result of what they experienced during a hot summer last year
and fears of facing the same struggle again. During a hot and dry 2018, some of the German waterways were
no longer navigational because of low water levels. This resulted in economic damages – especially for
companies using the Rhine to transport products – as well as high petrol prices because less fuel was
transported via the rivers and, thus, a drop in cargo trade.
―Freight transport on Germany‘s inland waterways fell by 11.1 % in 2018,‖ the German Federal Statistical
Office (Destatis) announced this year. According to Destatis, a total of 198 million tonnes of goods were
transported via German inland waterways last year, a significant drop from 222.7 million tonnes in 2017.
The drop correlates with the low water levels and occurred between August and November, with November
showing a 34% reduction in traffic compared with 2017.
[Dredging and Port Construction]
Cargo theft: Global intelligence report for 2018 issued
17/06/2019
TT Club and BSI have issued the second edition of their report on global cargo theft, the first to cover a full
year.
Highlighted findings include: theft from road vehicles once more accounts for the highest proportion at 84%;
Slash and Grab the largest type of cargo theft at 26% globally but with significant regional variations; the
combination of food, beverage, alcohol and tobacco making up the most common commodity group at 34%
and South America topping the regional analysis of median value for each theft at $77,000
Leading international transport and logistics insurer, TT Club and global provider of supply chain
intelligence, BSI produced their first regular Semi-Annual Global Cargo Theft Intelligence and Advisory
Report late last year but this second edition is the first to cover a complete twelve-month (2018) period.
TT Club‘s Mike Yarwood, explains the rationale behind the initiative, ―Our report brings together threat and
intelligence data from BSI‘s supply chain security country risk intelligence tool, SCREEN and TT Club‘s
insurance risk management and loss prevention insights. It demonstrates the shared goal we possess of
educating supply chain professionals in the threat of cargo theft across the globe. We aim to engage in a
proactive approach in preventing cargo crime and also minimising the financial loss resulting from cargo
crime.‖
The report BSI & TT Club Cargo Theft Annual Report 2018 analyses cargo theft by modality, theft type
(modus operandi), commodities targeted and the value of losses across the major regions of the world.
Source: BSI & TT Club Cargo Theft Annual Report 2018 [Jun 2019]
While the research found a consistency across the regions in terms of the most common modality involved
(road transport) and in the commodities targeted, there was some variation in the median value of the cargo
affected. This ranged from just under $19,000 in Asia, to around $60,000 in both Europe and North America
to a high of $77,000 in South America.
The methods used in the majority of cases, however varied significantly across the regions. The global
aggregation resulted in Slash and Grab at 26% topping the list, with Theft from Vehicle (19%) and Hijacking
(17%) making up second and third spot. In North and South America Hijacking was the most common
method at 37% and 52% respectively. In Asia
methodology was quite different with Theft from a Facility being the most common, at 43% compared with
just 19% from Hijacking.
The report includes several pieces of loss prevention advice to counter the identified threats. The risk
mitigation advisory sections have been co-authored by BSI‘s Advisory Supply Chain Security team and the
TT Club‘s claims and loss prevention team.
Yarwood goes on to say ―In particular we would wish to emphasise The Insider Threat. As security measures
become more sophisticated and widespread in practice, criminal organisations are increasingly recruiting
employees of targeted companies to gain data, cargo information, delivery routes and destinations and access
to IT systems. Due diligence in recruiting and managing staff is paramount. In general full or part-time
salaried staff are less of a security risk than sub-contractors.
[AJOT]
17/06/2019
By Marcus Hand
Insurers and flag-states are urging extreme caution and heightened security measures for vessels sailing in the
Straits of Hormuz following the attack on two tankers on Thursday.
The Front Altair and Kokuka Courageous were both attacked in the Gulf of Oman forcing their crews to
abandon ship. In a circular P&I insurer Gard said: ―While the cause of the incidents that took place in the Gulf
of Oman on 13 June 2019 has not been confirmed, all vessels, and tankers in particular, are advised to operate
with a heightened level of security in the Gulf of Oman/Strait of Hormuz/Persian Gulf region.‖
Gard also quoted an intelligence report by the Norwegian Shipowner‘s Mutual War Risk Insurance
Association, which assessed the threat as ―high‖ for tankers, oil and gas shipping operating in the Persian
Gulf, Strait of Hormuz and North Western Gulf of Oman. For other vessel types it was assessed as moderate.
It advised shipowners, operators and masters to exercise ―extreme caution‖ when operating in the area.
Owners were advised to undertake new ship and voyage specific threat risk assessment before entering the
region and keep well clear of Iranian territorial waters.
The registry of Liberia‘s flag of convenience said it was closely monitoring the threat to
shipping. ―We strongly encourage vessels transiting the Gulf of Oman, Straits of Hormuz, and
those near Fujairah, UAE to continue to maintain the utmost vigilance and increased security
conditions aboard,‖ it said in a security advisory.
Casualties Gulf of Oman: Insurers and flag-states advise heightened security measures for vessels in
the Straits of Hormuz
Owners and operators were strongly encouraged to implement measures equivalent to Security Level II and
to follow BMP5. The Norwegian Maritime Authority has already raised the ISPS/MarSec security level to
level two for vessels arriving Strait of Hormuz within the boundaries of N25° - N28° and E054° - E058° for
Norwegian-flagged ships.
Meanwhile in an update to members the UK P&I Club said: ―Due to the recent attack on vessels in the Sea of
Oman, members are reminded [….] to exercise extreme caution in the region.‖
The exact cause of the attacks remains unknown with the US blaming Iran, and Iran saying the accusations
are unfounded. The attacks have been widely condemned by shipping industry organisations and raise the
spectre of disruption to trade in the Straits of Hormuz one of the world‘s key waterways.
[Seatrade Maritime News]
By Emma Newburger
•Eleven banks say climate impact will be integrated into the criteria that determines how much shipping
companies can borrow.
•The banks hope the new standards will substantially cut CO2 emissions in the industry.
•The lending standards are based around the International Maritime Organization‘s 2018 climate
commitment, which seeks to reduce CO2 emissions by at least 50% from 2008 levels by 2050.
•Shipping accounts for 2.2% of world carbon dioxide emissions, according to the IMO.
Eleven banks that lend to shipping lines announced Monday that climate impact will be integrated into the
criteria that determines how much shipping companies can borrow, an effort the banks say will substantially
cut CO2 emissions in the industry. The banks will set their new lending standards around the International
Maritime Organization‘s 2018 climate commitment, which seeks to reduce CO2 emissions by at least 50%
from 2008 levels by 2050 and to cut emissions from individual ships by 40% from 2008 levels by 2030.
―We‘re making banks alert to the consequences of climate change in their portfolios,‖ said Michael Parker,
global industry head for shipping with Citigroup. ―We‘re now taking climate
change issues into decision-making in a way that helps the industry transition to necessary technology to
design ships, reduce emissions and decarbonize the industry.‖
It‘s the first time that global banks are collectively integrating a climate alignment strategy into financial
decisions. Shipping accounts for 2.2% of world carbon dioxide emissions, according to the IMO, a U.N.
agency that regulates pollution from ships. The lending framework, called the ―Poseidon Principles,‖ will
assess and disclose whether financial institutions‘ lending portfolios are in line with the IMO‘s climate goals
adopted in 2018.
Shipping emissions: Major banks set new lending standards for industry in order to cut CO2
emissions
The shipping industry avoided specific emission-cutting targets in the 2015 Paris climate agreement, when
195 countries pledged to cut greenhouse gas emissions in order to limit global average temperature rise to
below 2 degrees Celsius.
The 11 banks collectively represent about 20%, or roughly $100 billion, of the global ship finance portfolio.
The banks involved include Citi, Societe Generale, DNB, Danish Ship Finance, Danske Bank and Norway‘s
DVB. More signatories are expected following the official launch in a few months, Parker said.
James Mitchell, maritime finance lead at Rocky Mountain Institute, said the new standards will ―redefine‖ the
role of banks in the maritime shipping sector and encourage financial institutions to follow suit in other
sectors.
―[The Poseidon Principles] are the world‘s first global, sector-specific and self-governing climate alignment
agreement among financial institutions,‖ Mitchell said. ―The significance of this agreement cannot be
understated.‖
The maritime sector will require more ships to transport goods over the next few decades, Parker said,
emphasizing that the new lending standards will help make those additional ships cleaner and more efficient.
―We know that it‘s going to get more difficult. The challenge is to ensure that there‘s a transition, that
investment goes into helping the industry find alternative fuels in a way that incentivizes people to invest in
new ships and new technology,‖ Parker said.
―We‘ll help make lending decisions and investing decisions much less speculative and more
directed toward the environmental consequences of that investment,‖ he said.
The IMO also implemented additional climate regulations last year that will slash emissions of sulfur by the
world‘s ships in 2020. OPEC oil producers, fuel sellers and shipping companies raised concerns that those
new rules will make the oil market more volatile and hurt ships that aren‘t equipped to reduce sulfur
emissions or pay premiums for cleaner fuel within the set timeline.
Mitchell said that the IMO will launch more climate alignment policies in upcoming years, as banks and
shipping owners transition to cleaner energy and technology. ―This is not occurring
in a vacuum,‖ Mitchell said. ―There are more policies coming down the pipe from IMO, and those will be
policies that bring in more challenging aspects of decarbonization.‖
[CNBC]
17/06/2019
Hudson Shipping Lines (―Hudson‖) today announced as part of its ongoing ‗green‘ initiatives, that following
the implementation of the IMO2020 sulphur cap on January 1, 2020, it will not employ vessels with scrubbers
installed for the purpose of meeting the new IMO standards.
Shipping emissions: Hudson Shipping Lines pledges not to use vessels with scrubbers installed
Company President Avi Eilon stated, ―We have thoroughly investigated the use and operation of exhaust gas
scrubbers and have found that they simply transfer the pollution produced by vessels from the air to the
ocean.‖ Mr. Eilon also noted that the use of these scrubbers to allow vessels to continue to burn the dirtiest
forms of fuel, high-sulphur fuel oils, violates the spirit and intention of the IMO‘s new fuel regulations.
Rather than employ vessels that use ocean polluting scrubbers (which require the use of additional harsh
chemical additives to work – further polluting the environment), Hudson will instead set an example for other
companies in the maritime industry by exclusively burning fuels that comply with the IMO2020 regulations.
These new regulations give our industry a chance to improve its impact on the environment, and Hudson is
going to be a leader for the industry in moving to cleaner burning fuels‖, said Eilon. It is hoped that if more
companies join Hudson in using fuels that comply with the global sulphur cap that many countries and areas
near the busiest shipping lanes will see significant reductions in pollution and pollution- related health
conditions.
Mr. Eilon noted that Hudson is looking to join and support organizations that promote the use of sulphur
cap-compliant fuels and encourage ship owners to move away from ocean-polluting scrubber technologies.
Founded in 1972, and part of the Seatrade group since 1993, Hudson is a supply chain management company
with an integrated global shipping portfolio utilizing some 70 dry bulk carriers. Hudson has offices in the
United States, Greece, Bulgaria, Singapore, Indonesia, China, Vietnam, the Bahamas, Mexico and Australia.
Hudson is an industry leader in utilizing sustainable shipping technologies and methods; forever seeking
innovative ways to moderate its impact on the planet.
[Hudson Shipping Line]
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)
PROFESSIONAL MEMBERSHIP
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.
Fellow (FIAMSP)
Full Member (MIAMSP)
Mr.Adolfo omar Cortes
Spain
Mr. Rajendran Sellamuthu
India
Mr. Archisman Lahiri
India
LAST MEMBERSHIP
Mr. MARTINS Jorge
Brazil
Mr.Andrianombana Lanja Achille
Madagascar
M. Subbiah Thiyagarajah
Malaysia
Affiliate (AFFIAMSP)
February 2019 GREENTECH IN SHIPPING GLOBAL FORUM
Hamburg, Germany
February 2019 MARITIME RECONNAISSANCE & SURVEILLANCE TECHNOLOGY
Rome, Italy
February 2019
12TH ARCTIC SHIPPING SUMMIT – MONTREAL
Montreal - venue TBC
M. Kirton Christopher
Singapore
M. Hubert Louis-philippe
France
Mrs. HELENA ISABEL
CAMPOS LANÇA PALMA
Portugal
UPCOMING EVENTS SUMMARY
February 2019 GREENTECH IN SHIPPING GLOBAL FORUM
Hamburg, Germany
April 2019 LNG2019
Shanghai World Expo Exhibition and Convention (SWEECC), Shanghai
April 2019 OCEAN BUSINESS 2019
Southampton UK.
April 2019 SINGAPORE MARITIME WEEK (SMW) 2019
Singapore, Singapore
April 2019
COPENHAGEN SHIPPING SUMMIT
The Øksne Hall Halmtorvet 11 Copenhagen, 1700 Danmark