International Association of Marine and Shipping Professionls NEWS BULLETIN 04 – 10 June 2018
CALL US ON +41 22 519 27 35 @ [email protected] WWW.IAMSP.ORG
About I.A.M.S.P
The International Association of Marine and Shipping Professionals (IAMSP) is the professional body for Marine and Shipping professionals world-wide, formed in 2015. The association is an independent, non-political organization aims to:
Contribute to the promotion and protection of maritime activities of the shipping industry, the study of their development opportunities and more generally everything concerning these activities.
Promote the development of occupations related to maritime and shipping; serve as a point of contact and effective term for the business relationship with the shipping industry
(charter brokers, traders, shipping agents, Marine surveyors, ship inspectors, ship-managers, sailors, and stevedores etc.).
Ensuring the representation of its members to the institutions, national and international organizations as well as with governments, communities and professional groups while promoting the exchange of information, skills and the exchange of experience.
Develop the partnership relations sponsorship, collaboration between IAMSP and other associations, companies, national and international organizations involved in activities related to Maritimes and shipping.
Contribute to the update and improvement of professional knowledge of its members and raise their skill levels to international standards.
Progress towards a comprehensive and integrated view of all marine areas and the activities and resources related to the sea. INTERNATIONAL news
Oil & gas shipping: Oil tanker scrapping to hit multi-year high as earnings sink
03/06/2018 By Jessica Jaganathan The shipping industry will this year scrap the largest number of oil tankers in over half-a-decade, driven by weak earnings, firm prices for scrap steel and the need to prepare fleets for strict new environmental regulations.
The surge in scrapping underscores how the sector is grappling with one of its worst-ever crises, hit hard after rates for transporting oil plunged to multi-year lows in the wake of excess tanker supply and tepid demand as OPEC production cuts bite.
―The tanker markets are definitely in a trough at the moment, with one of the worst years in a decade in terms of freight rates and returns,‖ said Ralph Leszczynski, head of research at ship broker Banchero Costa in Singapore. The tough operating conditions are expected to persist until at least the second-half of 2019, analysts and industry sources said.
Estimates on the number of tanker demolitions vary between the four shipping analysts that Reuters spoke to, with the most conservative standing at a seven-year high in 2018. About 10.3 million deadweight tonnes (DWT) have been sold for demolition from January to April this year, compared with 11.2 million DWT for the whole of 2017 and 2.5 million for 2016, said Erik Broekhuizen, head of tanker research and consulting at ship broker Poten & Partners Inc.
Source: Thomson Reuters Research & Forecasts
―OPEC production cuts are hurting the market, and as long as they are in place, the tanker market will remain challenged,‖ he said, adding that scrapping had picked up for large vessels in particular.
Since early 2017, members of the Organization of the Petroleum Exporting Countries (OPEC), Russia and other non-OPEC crude producers have curbed exports to fight a global oil glut.
The imposition of new U.S. sanctions against Iran looks set to further reduce oil flows later in 2018, although Saudi Arabia and Russia have discussed potentially raising output to fill the subsequent void.
Getting scrappy
More stringent environmental regulations to be implemented by the International Maritime Organization (IMO) in 2020 will make operating old ships uneconomical, said Leszczynski at Banchero Costa.
Limited interest in using tankers to store oil, which has historically been a profitable option for shipowners during lulls in shipping volumes, is also curbing overall demand, analysts said. Scrap steel prices in Shanghai, China – the world‘s top consumer and producer of the material – have meanwhile nearly doubled from a year ago due to shutdowns of inefficient steel mills amid a widespread crackdown on industrial emissions.
Firms that have recently sent ships for scrapping include India‘s Essar Shipping Ltd and Oslo-listed Frontline Ltd. The latter last month reported better earnings than analysts had expected, partly due to its increased scrapping.
Getting younger
The ships being scrapped are also getting younger, with the average age falling to 19.5 years in the first quarter of this year, compared with 2017‘s average of 22 years, said Rajesh Verma, an analyst with shipping consultancy Drewry.
Most of the vessels are being scrapped in Bangladesh and India, although Pakistan has also returned to the demolition market after an 18-month ban, analysts said. The uptick in demolition rates has come despite increased opposition from European regulators due to environmental concerns.
Despite the high scrap rate, tanker earnings will continue to be hit as fleet-growth is still too high, analysts said. Banchero Costa‘s Leszczynski expects the crude tanker fleet to expand 3.3 percent this year, following growth of 4.6 percent last year and 5.8 percent in 2016.
With tanker rates still a long way from being profitable, there‘s little prospect of a broad industry improvement until the second half of 2019 at the earliest, said Peter Sand, chief shipping analyst at industry lobby group BIMCO.
―Any recovery in rates in the tanker market will be hinged on the extent of scrapping in the coming years … we expect rates to start recovering in the second half of 2019 if scrapping remains strong,‖ said Verma at Drewry.
Source: Thomson Reuters Research & Forecasts [Reuters]
Hidrovía Paraguay Paraná: El boom de la soja convirtió a Paraguay en líder del transporte fluvial
02/06/2018 Por Nina Negron Alentado por su masiva producción de soja, Paraguay se convirtió en los últimos años en líder indiscutido de la navegación fluvial de América Latina y figura como tercero en el mundo, superado solamente por Estados Unidos y China.
Cruzado por caudalosos ríos, este país no tiene salida al mar pero en la temporada 2016/2017 sacó más de 6 millones de toneladas de su cosecha de soja, principalmente hacia la Unión Europea y Rusia. Su río homónimo, que nace en Brasil y baña un tramo de territorio boliviano al norte, atraviesa Paraguay a lo largo de unos 1.000 km antes de unirse al caudaloso Paraná en el límite con Argentina y desembocar finalmente en el Río de la Plata en un recorrido total de unos 3.000 km. Se trata de uno de los cursos fluviales más largos del mundo.
La flota paraguaya es operada por 46 empresas internacionales y siete nacionales. Está compuesta por unas 3.000 barcazas y 200 empujadores que transfieren la carga a puertos de Uruguay y Argentina para su trasbordo hacia los lugares de destino en Europa, Asia y Estados Unidos.
Cosecha de barcazas
"En los años 1990, con el aumento de los precios de las materias primas, Paraguay comenzó a sembrar soja masivamente", comentó a la AFP Guillermo Ehreke, directivo de la empresa armadora Shipyard.
"Eso coincidió con la firma del tratado de Mercosur (Argentina, Brasil, Paraguay y Uruguay) en 1991 y con el tratado de la hidrovía Paraguay Paraná (Argentina, Bolivia, Brasil, Paraguay y Uruguay) en 1992, lo que dio vía libre a la navegación", añadió.
Paraguay pasó de una producción de unas 700.000 toneladas de soja para la cosecha 1992/1993 a unos 4,5 millones de toneladas en 2002/2003. Actualmente es el sexto mayor productor mundial de soja, con 10,6 millones de toneladas para la cosecha 2016/2017, y el cuarto exportador, con 6,1 millones de toneladas, según el Departamento de Agricultura de Estados Unidos.
Video: Boom de soja convirtió a Paraguay en líder de transporte fluvial Y sobre esos cultivos ha basado en la última década su crecimiento económico alto y sostenido, de alrededor de 4% anual.
Además de las facilidades que le dieron el tratado de Mercosur y el de la hidrovía, la industria naviera paraguaya recibió un impulso surgido de una dificultad. "La exportación de granos se hacía por tierra hasta Paranaguá, en Brasil, donde Paraguay tiene un puerto franco. Pero en los 1990, el gobernador de Paraná prohibió el paso de material transgénico, y le cerró el paso a la soja", recuerda Ehreke.
Soja brasileña y minerales bolivianos
Actualmente, las barcazas que descienden los ríos Paraguay y Paraná llevan no solo la producción paraguaya, sino también una parte de la de Brasil, segundo productor mundial de soja, y minerales de Bolivia.
Lo usual es que transiten juntas entre 9 y 12 barcazas, con una carga equivalente a lo que transportan 800 camiones.
Vista aérea de un empujador con barcazas en el río Paraguay. Fuente: AFP
En 2017 hubo un tráfico de 21 millones de toneladas por las vías fluviales paraguayas y para 2030 la estimación es de 56 millones de toneladas, según Juan Carlos Muñoz, presidente del Centro de Armadores Fluviales y Marítimos de Paraguay.
"El tráfico se va a triplicar gracias a la apertura del puerto de Concepción (400 km al norte) y próximamente Carmelo Peralta-Puerto Murtinho (650 al norte de Asunción) para la soja producida en el estado de Mato Grosso do Sul, para su embarque hacia los puertos de ultramar", señaló Muñoz, quien apunta que a esos cargamentos hay que sumar los minerales que exporta Bolivia desde sus yacimientos del noreste.
La industria naviera paraguaya representa cerca de 2,3% del Producto Interno Bruto en servicios, con una inversión de 5.000 millones de dólares en equipo y 800 millones de facturación anual en fletes, según cifras del sector. Genera 5.400 empleos directos y 16.000 indirectos.
Pasajeros, el próximo desafío
La flota fluvial paraguaya comenzó con embarcaciones usadas del Misisipi que trajo la multinacional Cargill. También se nutrió de empresas armadoras argentinas que en los 1990, durante la presidencia de Carlos Menem, quedaron liberadas de bandera.
"Paraguay resultó muy atractivo con su sistema fiscal de baja presión. Con el tiempo, se fue generando capacidad de mantenimiento y reparación, y también de construcción", refirió Ehreke.
Pero así como creció rápidamente para transportar carga, la flota fluvial es prácticamente inexistente para el traslado de pasajeros. "Hay 250.000 personas que a diario vienen desde zonas aledañas a Asunción a trabajar. Ese es el desafío ahora: crear una flota fluvial de pasajeros que requiere de embarcaciones y también de embarcaderos", dijo Ehreke.
[AFP]
Terminal operators: PEMA issues crane operator health and safety information paper
01/06/2018 Terminal operators could benefit from a new report which includes 20 recommendations for crane manufacturers and terminal operators on how to improve RTG and ship-to-shore (STS) container crane cabin ergonomics and safety.
Published by the Port Equipment Manufacturers Association (PEMA), the Crane Operator Health & Safety information paper makes recommendations covering a wide range of areas including cabin vibration, maintenance, ambient temperatures, airflow, emissions, integrity of glass floors, fall risks, visual and audio warning systems, inertial forces, and conflicting data sets between control workstations and anthropometric readings.
―This paper and its recommendations provide the industry with a set of best practice advice and points to consider in terms of crane operator safety and well-being,‖ said PEMA president
Ottonel Popesco. He added: ―Similar to the Association‘s existing information papers, we hope that this report will be widely used as a trusted source of information in the industry.‖
[Port Strategy]
Terminal operators Angola: Government negotiates the termination of the concession contract awarded to Caioporto
01/06/2018 The Angolan government plans to negotiate the termination of the concession contract for the construction of the Caio port in Cabinda, granted to Caioporto. A commission for that purpose was created by presidential dispatch no. 66/18, of 30 May, according to the international press.
The creation of this negotiating commission, to be coordinated by the Ministry of Transport, is a summary of the presidential dispatch involving Caioporto, whose main shareholder is Swiss-Angolan businessman Jean-Claude Bastos de Morais, investigated by the Angolan authorities about management of assets of the Angolan Sovereign Fund. The Swiss-Angolan businessman, president and founder of Quantum Global, who managed more than US$3 billion of the US$5 billion in assets of the Angola Sovereign Fund, was charged last week and prevented from leaving Angola after questioning at the National Directorate of Investigation and Criminal Action of the Attorney General‘s Office (PGR), according to the local press.
Read more: Stealing with Presidential Decrees [14 de March de 2017]
The construction of the port, valued at US$831.9 million, was included in the China Credit Line, with the Angolan State bearing 85% of the cost of the contract and the concessionaire the remaining 15% or US$124.8 million.
Construction of the port, in Caio Litoral, will be carried out in three phases, the first of which is the construction of port infrastructure and a cargo service area of 100 hectares and a 775-metre pier. The China Road and Bridge Corporation (CBRC) has been hired to carry out the contract.
[Macauhub]
Oil & gas exploration Brazil: Total determined to drill in the Amazon Reef as Greenpeace
storms annual general meeting
01/06/2018 Total is determined to push ahead with its plans to drill for oil in the Amazon basin, it said on Friday as Greenpeace activists interrupted its annual general meeting in protest at the project.
The French oil major wants to explore Brazil's Foz do Amazonas basin, but Brazil's environmental agency rejected its licence application on Tuesday for a fourth time.
Source: Reuters
As the company's annual general meeting opened in Paris on Friday, four activists from Greenpeace descended by rope from the ceiling above the stage, unfurling banners reading "Let's save the Amazon's coral reef".
Credit: The Guardian At least a dozen others managed to enter the hall, with some chaining themselves to fixtures in the room.
Total CEO Patrick Pouyanne told the meeting he would not cede to any kind of blackmail over the project, as the activists dangled on ropes above him. "Our position on the Amazon project has not been abandoned. We have our rights and we have obviously to respect Brazilian laws," Pouyanne told shareholders. It is also clear that Brazil's environmental regulators are under immense pressure from other organisations. We are exchanging information with them."
Brazil's Foz do Amazonas basin could contain up to 14 billion barrels of oil, geologists estimate, or more than the entire proven reserves in the Gulf of Mexico.
Massive coral reef
A Greenpeace expedition in April documented coral in the area where Total plans to drill, after an earlier discovery of a massive coral reef nearby.
―More than two million people, the scientific community and the Brazilian administration have already expressed their opposition to Total‘s drilling project in the mouth of the Amazon. Despite these calls, Total refuses to listen to reason and continues its attempts to drill near this unique reef, risking irreparable damage to it. In front of its own shareholders Total calls itself the ‗responsible energy major‘, but what is responsible about drilling at nearly 2,000 meters deep, in extreme conditions, near a network of undiscovered reefs?‖ ―Total opening new oil explorations in a new oil frontier is nonsense in the current climate context, when global emissions of greenhouse gases need to be drastically reduced. Peaceful protests like this are essential to denounce the inaction of multinationals such as Total in the face of this climate emergency. We can no longer allow such activities that risk destroying life on Earth to continue with impunity.‖
Source: Greenpeace: Activists interrupt Total‘s AGM in Paris over company plans to drill in the Amazon Reef [1 Jun 2018]
Brazil's environmental agency requested more information from the company when it rejected for the fourth time its bid for an environmental license on Tuesday.
The Greenpeace activists were also protesting at Total's investment in offshore oil production blocks in French Guyana, which will boost its presence in the potentially lucrative Guyana basin.
Total faces more protests this month, after France's largest farmers' union called for a blockade of French oil refineries in protest at the company's decision to use imported palm oil at a new biofuel production site.
[Reuters / Greenpeace]
America is good at dealing with hurricanes on the mainland —after they strike :
01/06/2018 Better preparation would save taxpayers billions With summer around the corner, Americans have weeks of sun to look forward to. In many parts of the country, however, the season brings a much more threatening force of nature. The Atlantic hurricane season officially begins on June 1st. This year, America‘s National Oceanic and Atmospheric
Administration expects 10-16 big storms and five to nine hurricanes (a typical year has around 12 storms and six hurricanes). After a record-breaking season in 2017, which brought ten hurricanes that inflicted around $265bn in damage, this year‘s rather average forecast may come as a relief. But policymakers would be foolish to ignore the growing risk.
But the process for responding to such crises remains wasteful and inefficient. When a hurricane strikes, the Federal Emergency Management Agency (FEMA) uses its Disaster Relief Fund to pay for food, shelter and repairs to infrastructure. In the past eight months, FEMA has doled out over $17bn from the fund (see chart). This pot of money, which pays for about half of all federal spending on hurricane relief and recovery, is often woefully close to empty: it held just $2.2bn when Hurricane Harvey struck last August. It is only after the roaring winds and rising waters have done their damage that Congress allocates new funds to top it up through ―supplemental appropriations‖.
America‘s policymakers would get better bang for their buck if they made greater efforts to prepare for disasters ahead of time. The National Institute of Building Sciences, a trade group, reckons that each dollar spent on disaster mitigation can save as much as six dollars in future losses. Yet such spending has been declining for over a decade. This year Donald Trump, who gave himself a grade of A+ for his responses to last year‘s hurricanes, proposed $61m in cuts to FEMA‘s Pre-Disaster Mitigation grant programme—a 61% reduction.
Whatever happens this hurricane season, preparation will only become more important in the long run. According to the Congressional Budget Office, damage from hurricanes is expected to grow in the coming decades—in part because of climate change, which will cause sea levels to rise and increase the frequency of the most intense storms. The White House appears to be ignoring such risks for now. Last August Mr Trump rolled back a rule implemented during Barack Obama‘s presidency, which required the government to account for climate change in federally-funded building projects. In March FEMA dropped references to ―climate change‖ from its strategic plan. Such denialism delights many of Mr Trump‘s hard-line Republican supporters, who doubt that climate change is real. But the costs of natural disasters will ultimately be borne by Democrats and Republicans alike.
[The Economist]
Flags of convenience: Peru arrests Belize-flagged fish factory ship
01/06/2018 On 30 May, agents from the Peruvian Environmental Prosecutor‘s Office have detained the Damanzaihao as part of an federal criminal investigation based on presumed acts of illegal fishing. Peruvian authorities have also accused the Damanzaihao of polluting the marine environment through the illegal discharge of fluids and effluents while anchored in Chimbote.
Current and former convenient flags
• Belize since 01/04/2018 • Peru since 01/08/2014 • Mongolia since 01/07/2014 • Russia since 01/08/2009 • Dominica since 01/09/2008 • Russia since 01/09/2008 • Malta since 01/06/2007
Source: Equasis
According to Equasis, since 26 April 2018 the Damanzaihao is owned by Singapore-based firm DVS-R. Damanzaihao was built in 1980 by Japanese ship builder for a Norwegian tanker company as a 67,000-dwt oil tanker. She was converted to fisheries operation in 2008 at a Chinese shipyard and had fish processing and freezing machinery installed into the hold. According to the New York Times, the reconfiguration cost $100m.
Fish factory ship Damanzaihao. Credit: Undercurrent News
The Damanzaihao is the largest fish factory vessel in the world, capable of processing 547,000 tons of fish per year. Damanzaihao's 232 vertical freezers can together freeze 1,500t of fish in 24 hours. Seven production lines - equivalent to a ―fair-sized‖ onshore fish processing facility, Ture Korsager of broker Atlantic Shipping previously told Undercurrent News – automatically package the fish. Its cargo hold can store 15,000t, while it can accommodate a crew of 320.
In 2014, the South Pacific Regional Fisheries Management Organization (SPRFMO) put Damanzaihao on a draft list of illegal, unreported and unregulated vessels fishing in the region. The reason for the inclusion was that it had been fishing in the region in the summer without authorization, as revealed by Undercurrent News at the time. Later that year Damanzaihao was removed from the list. However, in early 2015, it was again put on the list and its inclusion was finalized.
As a result of the Damanzaihao‘s past illicit fishing activities, the government of Peru issued a multi-million dollar fine against the vessel in 2014. That debt reportedly remains outstanding.
Sea Shepherd has applauded Peru's detention of the vessel. Sea Shepherd vessel M/V John Paul DeJoria was recently in Peruvian waters investigating and gathering intelligence to assist the Peruvian Government in its fight against illegal fishing. Under the Peruvian Penal Code, successful conviction carries a penalty of three to five years of incarceration.
Despite the Damanzaihao switching flag states from Peru to Belize´s notorious flag of convenience while anchored in Peruvian waters, Peru is acting to investigate Damanzaihao's activities. Belize was previously ―red carded‖ by the European Commission for its lack of commitment to tackle IUU fishing. While its red card has since been lifted, Sea Shepherd has called on Belize to also take action on the vessel.
[Maritime Executive / Undercurrent News]
Oceans: Invisible layer on surface reduces carbon uptake
01/07/2018 By Jennifer Johnson Scientists have discovered that an invisible layer of biological compounds on the sea‘s surface can reduce carbon dioxide exchange — the process by which the gas moves between the atmosphere and the oceans — by as much as 50 per cent.
The researchers from Exeter, Heriot-Watt and Newcastle universities say their findings have major implications for predicting the planet‘s future climate.
The world's oceans currently absorb around a quarter of all anthropogenic carbon dioxide emissions, making them the largest long-term sink of carbon on Earth. Atmosphere-ocean gas exchange is driven by turbulence at the sea surface, which is primarily caused by wind-generated waves.
Greater turbulence leads to increased gas exchange — but until now it has been difficult to calculate the effect of biological surfactants on the exchange. The team developed a novel experimental system to compare the so-called ―surfactant effect‖ between different sea waters collected by survey vessels in real time.
At 13 sites across the Atlantic Ocean, the team discovered that biological surfactants suppress the rate of gas exchange caused by the wind. The results build on previous findings that, contrary to conventional wisdom, large sea surface enrichments of the invisible slime counter the effects of high winds.
The scientists made unique measurements of gas transfer using a purpose-built tank that could quantify the relative exchange of gases impacted only by surfactants present at these sites.
"As surface temperatures rise, so too do surfactants, which is why this is such a critical finding,‖ explains Dr Ryan Pereira of Heriot-Watt University. ―The warmer the ocean surface gets, the more surfactants we can expect, and an even greater reduction in gas exchange.‖
The suppression of CO2 uptake across the ocean due to surfactants implies the slower removal of human-generated CO2 from the atmosphere. Therefore, the findings will have an impact on predicting the future climate.
[The Marine Professional]
Container shipping: Shippers and lines battle over emergency bunker fuel surcharges
01/06/2018 By Jack Jordan and Andrew Scorer, Platts
Several of the world's largest container shipping companies have imposed emergency bunker surcharges upon their customers in the past two weeks, seeking to claw back revenues lost to rising fuel bills caused by the jump in crude prices in recent months.
France's CMA CGM announced a $55/TEU surcharge for dry cargo, Israel-based ZIM introduced surcharges ranging from $18-$65/TEU and the Mediterranean Shipping Company (MSC) announced an undetermined surcharge. Hapag-Lloyd and Maersk are reported to have made similar announcements to their customers.
Rising fuel bills driven by a 16% jump in Brent crude since the start of this year have come after a period of intense competition between container lines which drove down box rates, and the shipping companies are now struggling to recover their costs. But their customers have reacted sharply to the imposition of emergency surcharges, arguing their existing arrangements already account for variations in bunker prices.
"The use of emergency surcharges is a none-too-subtle attempt to impose non-negotiable charges on customers," Chris Welsh, secretary general of the Global Shippers' Forum, said this week. "It is incumbent on container carriers to provide their customers with full transparency regarding bunker surcharge costs, and to explain why an emergency surcharge is warranted on top of existing bunker surcharge mechanisms."
The container lines typically allow for changes in fuel costs in their contracts with the bunker adjustment factor (BAF), a floating rate that rises and falls with bunker price assessments at key ports along their routes. Some of their customers have seen the additional emergency surcharges announced in May as an arbitrary cost imposed as a means of improving shipping companies' balance sheets after a disappointing first quarter.
"I have sympathy for the carriers' challenges, but refer to the agreements we and many other beneficial cargo owners have only very recently entered into, both parties with eyes wide open," Bjorg Vang Jensen, vice president for global logistics at home appliance manufacturers Electrolux, said this week. "These agreements include specific clauses around bunker prices, and we expect that the carrierswill respect those."
"There is a risk attached to doing business, which we accept, and which we expect that our suppliers accept too," he added.
The Platts North Asia-North Continent container assessment stands at $1,300/FEU as of May 31, at the same level as at the end of last year and down by 27.8% since the assessment was launched in July 2017.
But over the same period high sulfur 380 cst delivered fuel oil prices at Rotterdam have jumped by 21.6% and 51.9%, respectively.
This discrepancy is already showing up in the shipping companies' reported results. Maersk's Ocean segment reported its average bunker price rose by 19.4% in the first quarter from the same period a year earlier, while average freight rates climbed by just 7%.
Hapag-Lloyd said its bunker price advanced by 18.8% and freight rates slipped by 2.6%. CMA CGM said unit bunker costs jumped by 17% while revenue per container gained 1.7%.
"The situation is no longer sustainable without emergency action," MSC said in a notice to customers announcing its emergency surcharge May 21. "This last-resort measure is essential to ensure that we navigate these challenging economic conditions in a steady and sustainable way."
[Platts]
Container shipping: New bunker surcharges set to bump up shipper costs from tomorrow
31/05/2018 By Mike King New Emergency Bunker Surcharges (EBS) to be applied by lines from tomorrow will hit some shippers far harder than others, according to one analyst.
A slew of lines including CMA CGM and Maersk will start charging an EBS of between $55-60 per TEU, rising to $85-80 per TEU for reefers, from the start of June. In most cases the surcharges will be applied across service networks, although there are exceptions by line and by jurisdiction.
Analysis by digital container freight platform Freightos revealed that on some trades the addition of the EBS to shipper costs would constitute a major hike, whereas elsewhere it would be relatively marginal.
Dr Zvi Schreiber, CEO of Freightos, said the EBS was ―a big deal‖, noting that Maersk‘s $60/TEU and $120/FEU EBS on North American to Europe trades where 40‘ prices are currently around $265 per FEU would result in a 45% price increase to $385 per FEU post-surcharge, putting prices at a 52-week high with the exception of two weeks in October.
By contrast, on services from Europe to America where prices are more competitive, Freightos said a baseline rate of $1,445 per FEU would increase just 8.3% to $1,565 per FEU post-surcharge.
―The good news is that it's still incredibly cheap - shipping a 40‘ container from the US to Europe and back costs about the same as storing those goods at an Amazon FBA fulfilment centre for a month,‖ he added.
While some shippers may have negotiated EBS contingencies into contracts with lines, others will face large new bills, according to Freightos. ―Given the cut-throat atmosphere created by over-capacity, enterprise shippers have the edge in negotiations and may be able to avoid paying the emergency bunker surcharges,‖ a spokesman told Lloyd‘s Loading List.
―This is another reminder how the freight industry's aversion to dynamic capacity management, index-linked pricing and enforceable contracts creates major business issues rare in more advanced industries.
―As a result, this will get resolved manually through thousands of phone calls and meetings, shipper by shipper.‖
The new surcharges by lines come in response to rising fuel costs which hit liner profits in the first quarter. Announcing its new EBS, Maersk, for example, said bunker prices in Europe had now reached their highest level since 2014. ―The increase is more than 20% compared to the beginning of the year and
this unexpected development means it is no longer possible for us to recover bunker costs through the standard bunker adjustment factors,‖ the company said in a notice to customers.
[Lloyd‘s Loading List]
The town already has oil and gas loading terminals, built since 2013, that feed pipelines transporting the fuel directly toContainer Yunnan province shipping: in Western Fairfax China. investing A rail linkanother is planned $500 to million connect in the Seaspan container port.
31/05/2018 By Chris Dupin Seaspan Corporation, the world's largest independent containership owner operator, today announced that Fairfax Financial Holdings Limited, has entered into a definitive agreement to invest an additional $500 million of equity in Seaspan through the exercise of two tranches of warrants, increasing Fairfax's total investment in Seaspan to $1 billion.
David Sokol, chairman of Seaspan, said the investment will ―bolster Seaspan‘s strategy to lead consolidation in the fragmented containership sector and capitalize on the most compelling opportunities in the shipping sector and beyond it.‖ The deal will ―significantly strengthen
Seaspan‘s balance sheet, significantly improve access to capital and accelerate our progress toward achieving an investment grade credit rating.‖
Prem Watsa, the chairman and chief executive officer of Toronto-based Fairfax, said, ―As the global containership industry continues to consolidate, we believe owner-operators like Seaspan, with financially sound balance sheets, will have excellent growth prospects.‖ He added, ―This transaction represents one of Fairfax‘s largest investments in a public company.‖
Watsa sometimes has been called the ―Canadian Warren Buffett‖ because of his investing acumen, and he told the Bloomberg news service that he was making the additional investment in Seaspan primarily based on the track record of Sokol, the former chairman of the utility operations of Buffett‘s Berkshire Hathaway.
Using warrants it acquired earlier this year, Seaspan will acquire 38.46 million shares of Seaspan‘s Class A stock for $6.50 per share on July 16 and then do a similar transaction in January 2019 for a total of $500 million.
Seaspan operates a fleet of 112 ships with aggregate capacity of more than 900,000 TEUs. [American Shipper]
Container shipping: World Container Index - 31 May 2018
31/05/2018 The World Container Index assessed by Drewry, a composite of container freight rates on 8 major routes to/from the US, Europe and Asia, is up by 2.6% to $1386.80/40ft container. Two-year spot freight rate trend for the World Container Index:
Our detailed assessment for Thursday, 31 May 2018
The composite index is up by 2.6% this week, was down by 5.4% from the same period of 2017.
• The average composite index of the WCI, assessed by Drewry for year-to-date, is US $1,364/40ft container, which is $172 lower than the five-year average of $1,535/40ft container.
• The composite index, calculated by Drewry, went up slightly by $35 per feu. Despite edging up of composite index, Transpacific headhaul rates displayed decreasing trend. Rates from Shanghai to New York decreased by $68 to reach $2,394 per 40ft. Similarly, rates from Shanghai to Los Angeles dropped to $1,317 – a change of $41 per feu. Rates from Shanghai to Genoa also inched by $73 for a 40ft box to reach $1,706. Rates from Shanghai to Rotterdam are up by $171 to reach $1,621. Carriers are imposing Emergency Bunker Surcharge (EBS) on global routes hence Drewry expects the rates may increase next week.
Our latest freight rate assessments on eight major East-West trades:
Spot freight rates by route - assessed by Drewry
[Drewry]
Container shipping: Change required for higher rates
31/05/2018
By Peter Sand
Overcapacity remains in the sector, where fleet growth is extremely uneven.
Demand
The growing imports of loaded containers into the US East Coast (USEC) continues to be a focal point for the container shipping industry. Growing by 10.4% in Q1-2018, the first three months saw 215,000 TEU more entering the USEC than in Q1-2017. Exports grew by 55,000 TEU in the same time span, growing outbound loaded containers by 3.8%.
This illustrates the constantly changing imbalance in US foreign trade. For every five containers entering the USEC in 2013, four were exported. In 2018, six containers are entering for every four leaving. The USEC trade lanes becomes more imbalanced by the day. This pattern is also seen on the US West Coast (USWC) trade lanes. For every ten containers entering the USWC in 2013, six were exported. In 2018, ten containers are entering for every five leaving. A clear sign of imports growing stronger than exports.
Despite the positive demand growth, freight rates have lost traction. The broad-based China Containerized Freight Index (CCFI) which covers ten major Chinese ports and includes not only spot rates, but also long-term contracts are down by 5% on average for China-USEC trades and down by 7% on average for China-USWC for the first 18 weeks of 2018. If singled out, the decline in spot rates alone is much deeper, as the USEC is down by 18% and USWC dropped 22% for the first 18 weeks of 2018 as compared to the same time last year.
Similar worrying signs are seen in the Far East to Europe trade. CCFI is down by 3% on average as compared to last year, whereas the spot rates (SCFI) have slid 15%. The latter was quoted at USD 584 per TEU for the week ending 20 April but rebounded to USD 825 per TEU at the end of May.
It‘s not just freight rates that are low, growth in shipped volumes are also weak. During Q1-2018, transportation grew a meagre 1%. Only, 36,572 TEU more was dispatched compared to last year. If we assume a roundtrip on the Far East to Europe trade takes 10 weeks, that kind of growth requires only two additional 15,000 TEU containerships at a utilisation rate of 95%.
Of lesser importance, but still significant, backhaul trades in Q1-2018 from Europe and North America into the Far East are suffering a lot, falling by 8% and 5% respectively. Partly due to very strong growth on those trade in Q1-2017. Over a two-year period, Q1 backhaul volumes are up by 6.4% for Europe and 7% for North America. (Source: CTS) In general, backhaul volumes into China are negatively affected by the import ban of waste products that came into force on 1 January 2018.
As highlighted within our macroeconomic section, EU manufacturing PMI has lost pace in 2018, another reason behind the lost volumes.
Supply
The container ship fleet has now grown by 2.9% in the first four and a half months of 2018. BIMCO expects 1.1m TEU gross to be delivered for the full year and 250,000 TEU to get demolished with the fleet growing by 4.3%. By 1 May, 64 ships with a combined capacity of 534,000 TEU have been delivered. Out of which 35 ships were below 4,000 TEU in size and 10 ships were above 20,000 TEU.
In terms of demolishing containerships, January was weak and February even weaker. The months of March and April only had one containership each demolished. At such low pace we will not get to the 250,000 TEU in demolitions BIMCO expects. However, our estimate remains unchanged for the time being as when reality bites in selected places of the freight market, we expect demolition to pick up. Should demolition volumes only reach 100,000 TEU, the fleet would then grow by an estimated 5.0%.
We continue to see no large containerships being demolished, with a 2018-average of 1,840 TEU for the 14 demolished ships, as the large containerships are still quite new. The average size of a newbuild ships is 8,350 TEU. Overcapacity remains in the sector, where fleet growth is extremely uneven.
Ordering of new capacity continues to fall below that of deliveries, bringing down the orderbook steadily. Currently 2.6 million TEU are on order, just 1/3 of the all-time-high level ten years ago, at 6.8 million TEU in July 2008.
Still, April had orders for ten 12,000 TEU (for 2020-2021 delivery) and four 14,300 TEU (for 2019-2020 delivery) Neo-Panamax ships ordered by Non-operating owners (NOO). The former ten ships are placed against long-term time charter with an operating carrier, whereas the charterer of the latter four ships (options declared) are yet to be disclosed.
Looking into the sub-sectors of the container fleet, it‘s a fact that fleet expansion over the past ten years has exclusively been happening in the +6,000 TEU sectors. With the growth rates seen amongst the largest sectors. This gives reason to look at the feeder fleets and the decline amongst those sectors.
The fleet of containerships with a capacity 1,000-2,000 TEU has declined marginally over the past ten years. Whereas the fleet of 100-999 TEU and 2,000-3,000 TEU ships has declined by 17% and 14% respectively.
Amongst the 3,000-6,000 TEU ships, the fleet of ―old‖ Panamax ships has declined by 12% over the past two years, and the by 24% over the past six years, following the opening of the third set of locks for the Panama Canal.
For the 6,000-8,000 TEU the fleet has grown by 34% from 2010 to 2016, but the past two years have seen the fleet size reduced by 4%.
Container lines constantly optimise their global networks and cascading continues across the board. Is there a limit to cutting capacity across the smaller sectors before the Ultra Large Container Ships can‘t be fed properly any more?
Outlook
2018 is off to a bumpy start. Demand is growing strongly into the US while import growth into Europe from the Far East is critically low. Overall, CTS reports a first quarter total container shipping demand of 40.6 million TEU, up by 4.8% on last year. This is in line with BIMCO‘s expectation for the full year, improving the overall market conditions, while at the same time highlighting regional difference at large.
Whereas overall demand growth is solid, it‘s weak on the Far East to Europe trade and freight rates in general are increasingly under pressure. Bearing that in mind, it seems premature to stop the demolition of containerships. Overcapacity is still around, and growth on high-volume trades is essential. Something has to change to turn the tide on freight rates.
Shedding a bit of light on trades other than the high-volume ones, over the past years, trades from Europe and the Far East to South & Central America has grown rapidly. For the full year 2017, the former grew volumes by 12% and the latter by 11%. Growth has stayed strong in Q1-2018, up by 13% and 15% respectively.
And putting it into perspective: the combined Q1-2018 imports into South & Central America from Europe and Far East accounted for 1.35 million TEU. For comparison, 1.34 million TEU went from the Far East into North America during the month of March only (Source: CTS).
Container shipping is also in the ―line of fire‖ when it comes to the smouldering trade war between China and US. BIMCO see this as troublesome for the eastbound the transpacific trade.
In April, the International Monetary Fund adjusted its world trade volume forecast for 2018 up from 4.4% to 5.1% for advanced economies and up to 6.0% (+0.5) for Emerging Market and Developing Economies. Which is good news for container shipping, if it materialises. This is the result of expected higher GDP growth for Advances Economies which have a high trade multiplier for container shipping.
In our previous container shipping market overview & outlook, we advised to watch out for the New York/New Jersey (NYNJ) inbound loaded containers, as we begin to see the full effect of the elevated Bayonne Bridge that opened for transit of Ultra-Large containerships in September 2017. If judged by the first quarter of 2018, the effect is massive. NYNJ imports are growing by 12.8%, up by almost 100,000 TEU on last year.
[BIMCO]
Dry bulk shipping: No more room for newbuilds
31/05/2018
By Peter Sand
The dry bulk shipping industry remains on the road to recovery, as demand continues to keep its nose just ahead of fleet growth, while scrapping and ordering remains subdued.
Demand
The improved fundamentals during 2017 are clearly seen in the freight rate levels during the first four months of 2018. Freight rates for Handysize, Supramax and Panamax went up by 25-27% as compared to the same period of last year. All three sectors moved from loss-making average earnings in the full year of 2017 to a profitable level in first four months of 2018.
Meanwhile, capesize freight rates improved by only 5% as compared to the same period last year, and stayed within loss-making territory at USD 12,660 per day, needing at least USD 15,000 per day on industry average to cover all costs.
In many ways, shipped volumes during Q1 were seasonally stronger than expected. Except for iron ore. This was hurting the capesize sector. Reported sales from the world‘s top 3 iron ore mining companies were down 9% in Q1-2018 as compared to sales in Q4-2017. Total seaborne iron ore exports were estimated down by 11%, a weak level. That fact clearly affected the performance of capesize freight rates, that took a deep dive during March to hit USD 7,051 per day on 5 April, before bouncing back in the second half of April reaching USD 18,192 on the 25th.
2017 also delivered a comeback of US coal exports (steam and coking). Exporting 88 mill tonnes to at least 42 countries, according to EIA. Distributed with approx. 40% being steam coal and 60% being coking coal. Exports to Asia, which benefit the dry bulk shipping industry the most, more than doubled to reach 30 million tonnes in 2017 (+109% from 2016), most of it being steam coal to South Korea and Japan. Increasing electricity demand fuels imports of steam coal with no expansion of nuclear power production taking place in South Korea and Japan. India is the largest importer of US steam coal, as a large portion of its newer coal-fired power plants require higher quality and energy content than domestically mined coal.
Nevertheless, the amount of US coal exports remains a pricing issue more than anything. Increased US coal production does not automatically mean that more is exported. US export prices are simply too high compared with those of its global competitors. This means that buyers go elsewhere when global prices are low. Since the middle of 2016 global coal prices started to lift and they stayed high during 2017. So far, they have kept up well in 2018 too, resulting in a continued interest in high quality US steam and coking coal.
Supply
Four of the Valemax ships ordered in 2016 have entered the active fleet of ―capesize‖ tonnage since the start of 2018. The remaining 26 are scheduled for delivery in the coming 24 months. All of them are heading for the Brazil-China iron ore trade on long term charters. They are set to increase the pressure already felt by standard capesize ships plying that trade. 30 Valemax can transport 48 million of cargo from Brazil to China a year, and as a result are likely to squeeze out 67 capesizes. Where are these standard capesize to go for other business? For the first four and a half months of 2018, the dry bulk fleet grew by 10.2 million DWT net, equal to 1.2%. 12.1 million DWT was delivered while as little as 1.7 million DWT was sold for breaker‘s yards. Newbuilt deliveries came in all sizes. 44% of the new capacity was added to the capesize, VLOC and Valemax segments at the top of the chart. 27 out of the 114 delivered newbuilds were Handysizes with a capacity less than 40,000 DWT.
Most interesting, only 9.2 million DWT of new capacity was ordered in the first four months. This is an extraordinary and positive development – and one that was not expected either. The improving freight market conditions that we saw in 2017, meant that a higher level of ordering returned, after a year and a half of very low activity. As the freight market continues to improve, a continuance of ordering is expected.
Whereas the low level of newbuilding orders is consistent with being on the road to recovery, the low level of demolition activity is not. Dry bulk demolition during the first four months was down by 73% compared to last year. With these new orders coming in, its relevant to question whether they will derail the ongoing recovery. The reply to that is: they will not derail it – yet. All but a few of the new orders are set for delivery in 2020. But in turn this also mean that there is no more room left for new orders to be placed before the balance potentially tilts.
As BIMCO sees 2% demand growth as the long run average, a fleet growth of 2% or less is required to avoid a worsening of the fundamental freight market conditions. Considering the current orderbook and our assumptions for actual delivery date – 2019 and 2020 are now ―fully booked‖.
Outlook
In summary, the dry bulk shipping industry remains on the road to recovery, as demand continues to keep its nose just ahead of fleet growth, while scrapping and ordering remains subdued.
What could upset the recovery is the looming trade war between the US and China that has caused a lot of commotion already, including within the dry bulk shipping industry. Soya beans are at the centre of attention as also covered by BIMCO, here. Even though, it isn‘t officially a trade war yet – the uncertainty it creates amongst shipping industry participants is very real.
Will we see Chinese stockpiling of Brazilian soya beans, in order to reduce tariffed imports from the US later in the year? The coming months will tell us. Right now, we know that China is importing from anywhere but the US. But be aware that this is simply normal seasonality – almost no soya beans are exported from the US into China in second and third quarter of the year.
Beyond that, Q2 is expected to bring on more cargoes overall in need of transportation. Brazil and Australia will both grow its exports of iron ore, whereas soya bean exports will grow out of Brazil while slowing out of the US. All due to seasonality.
Coal, wheat and coarse grains are likely to stay flat from Q1. Looking into exports in Q3, grain trades are likely to grow, due to larger growing areas, good weather conditions and large harvests anticipated. Wheat from Russia and Ukraine and corn from Brazil will lift shipping demand. In recent years, we have heard a lot about the closing of Chinese steel mills which in turn ‘should‘ reduce production capacity. At the same time, we have seen an almost unchanged production level. The fact is that the capacity that has been closed and currently is being closed comes from old and un-utilised facilities. Instead, China builds new, mills that are using higher quality imported iron ore.
In Q1-2018, China produced 5.4% more crude steel than in Q1-2017. Growing production by 10.8 million tonnes for the quarter. This three-months growth compares to one month of production by the world‘s second largest producer, India, at 9.3 million tonnes.
[BIMCO]
Shipbreaking: Unsafe, dangerous and deadly scrapping by hand continues on the beaches of Alang
31/05/2018
Reuters‘ photographer Amit Dave has published a series of photos taken just this week at a shipbreaking yard in Alang, India, where many of the world‘s ships continue to be sent at the end of their operational lives.
While some yards in Alang have upgraded their facilities to comply with global shipbreaking standards set out in the Hong Kong Convention, the shipbreaking industry in South Asia continues to be notorious for its lax safety oversight and frequent, often-fatal accidents.
According to the NGO Shipbreaking Platform, a whopping 543 of the 835 large ocean-going ships sold for scrap in 2017 were intentionally run ashore and dismantled by hand at shipbreaking yards in Bangladesh, India, and Pakistan using the controversial beaching method despite the human and environmental risks.
In 2017, the NGO Shipbreaking Platform recorded at least 10 deaths at yards in Gadani, Pakistan, eight fatal accidents in Alang, and 15 deaths in Bangladeshi yards, where another 22 workers were seriously injured in accidents.
Looking at these photos it‘s easy to see why the practice is so controversial (and dangerous):
Workers pull a rope tied to a decommissioned oil rig to dismantle it at the Alang scrapping yard in the western state of Gujarat, India, May 29, 2018. Picture taken May 29, 2018. Credit: REUTERS/Amit Dave
Workers prepare to tie a rope to a decommissioned oil rig to dismantle it at the Alang shipyard in the western state of Gujarat, India, May 29, 2018. Picture taken May 29, 2018. Credit: REUTERS/Amit Dave
Workers run away as a part of a decommissioned ship falls as it is being dismantled at the Alang shipyard in the western state of Gujarat, India, May 28, 2018. Picture taken May 28, 2018. Credit: REUTERS/Amit Dave
Report: 80% of Tonnage Sold for Scrap in 2017 Ended Up on South Asia‘s Beaches
Workers dismantle a decommissioned ship at the Alang shipyard in the western state of Gujarat, India, May 28, 2018. Picture taken May 28, 2018. REUTERS/Amit Dave
Related: Shipping‘s Financiers Turning the Tide On Controversial Shipbreaking Practices
Workers sort out metal scrap of a decommissioned ship at the Alang shipyard in the western state of Gujarat, India, May 29, 2018. Picture taken May 29, 2018. Credit: REUTERS/Amit Dave
A worker carries a gas cylinder past decommissioned ships being dismantled at the Alang shipyard in the western state of Gujarat, India, May 28, 2018. Picture taken May 28, 2018. Credits: REUTERS/Amit Dave
See Also: 152 Ships Broken Up on South Asia‘s Beaches So Far in 2018
[gCaptain]
Port development Australia: Newcastle's $ 5 billion expansion of coal export terminal T4 scrapped as demand fails to rise
31/05/2018
By Peter Hannam
The $5 billion-plus Terminal 4 coal export expansion planned for Newcastle has been scrapped after demand for the fossil fuel failed to increase as expected.
Port Waratah Coal Services said on Thursday that it would allow a lease for the terminal - known as T4 - to lapse, signalling that the project would not go ahead.
Port Waratah's two terminals, Carrington and Kooragang, last year exported 105 million tonnes of coal out of a combined capacity of 145 million tonnes, the company said in a statement. Newcastle Coal Infrastructure Group, operator of the city's third terminal, shipped about 60 million tonnes, helping make Newcastle one of the largest coal export centres in the world.
―With significant growth capacity available in the existing terminals, we do not expect that the conditions to support an investment of the large and long-term nature of Terminal 4 will be in place before the development approval lapses in September 2020,‖ Hennie du Plooy, chief executive of Port Waratah, said.
The company is understood to have sunk many millions of dollars into T4, a project that secured its original lease in 2009. The first stage envisaged a 25 million tonne per year terminal, with plans to expand that in the future to 70 million tonnes. [The Sidney Morning Herald]
Port development Iraq: Mitsubishi wins $110 million contract for rehabilitation of Khor
Al-Zubair and Umm Qasr
31/05/2018
The General Company for Ports of Iraq (GCPI) has awarded Mitsubishi Corporation a $110m contract for port construction.
Two Turkish firms, energy infrastructure provider Calik Enerji and construction firm Gap Insaat, will undertake most of the construction work, while Mitsubishi will be responsible for coordination and will arrange the delivery of supplies from Japan.
The contract covers a port rehabilitation project in the country‘s Basra province and is being funded through official development assistance loans provided by the Japan International Cooperation Agency.
Modernisation work includes improving the existing industrial port facilities around Basra by expanding the oil products berth at Khor Al-Zubair Port and building a new service berth for working ships and service boats at Umm Qasr Port.
Khor Al-Zubair and Umm Qasr are the only ports in operation in the Basra region. The project aims to meet the growing demand for port infrastructure as trade flowing in and out of the country increases.
[Global Construction Review]
Port development Canada: Container growth demands more infrastructure and innovation
30/05/2018
By Mark Szakonyi, Executive Editor
The strong container volume flowing through ports from Vancouver to Halifax brings new challenges requiring infrastructure investment, innovation, and the Canadian emphasis on collaboration. Over the last seven months, Canadian shippers and forwarders got a taste of what happens when that formula falls short.
Photo credit: Port of Prince Rupert
Harsh winter weather and a surge of imports, for domestic and US markets, flowing through Canada in the peak season caused delays at the ports of Prince Rupert, Montreal, and
Vancouver. Western ports have since returned to normal rail fluidity, while truck turn times on average at Montreal have fallen below one hour. Lessons were learned. Stakeholders at the ports of Prince Rupert and Vancouver are investing to prevent a repeat peak-season performance; Montreal‘s marine terminals are collaborating on a pilot program extending truck gates.
Canada — one of the hottest container shipping markets
The pressure isn‘t letting up. Canadian container volume rose 7 percent last year, and Maersk Line expects growth to at least equal to that this year. US container volume, comparatively, will rise between 2 and 4 percent, as the market grapples with a ―trucking crisis,‖ rail infrastructure needing improvement, and a lack of terminal competitiveness when compared with other advanced markets, according to Omar Shamsie, president of Maersk Line North America.
―Meanwhile, the outlook is more positive for Canada, which promises to be one of the fastest-growing markets in terms of container trade across the Americas this year,‖ he said. It‘s going to be a close race with Mexico.
To handle the short-term and longer-term growth, the ports of Vancouver and Montreal are expanding terminal and rail capacity, while Prince Rupert is fresh off a project that added 500,000 TEU of annual capacity. Meanwhile, Canadian National Railway is investing hundreds of millions of dollars to build capacity and add daily trains from the west coast to Toronto and Chicago.
But questions remain of not only where capacity is needed, but whether environmental regulators will allow it come online. The most glaring example of the latter is in Vancouver, where the port authority‘s proposed Roberts Bank Terminal 2 Project has been deemed potentially harmful to western sandpipers by Environment and Climate Change Canada, as reported by the Financial Post.
―Without Terminal 2, Canada will run out of capacity on the west coast. There is nothing else anywhere in the planning and permitting process that could deliver capacity for demand by the mid-2020s,‖ Port of Vancouver CEO/president Robin Silvester told the local newspaper.
The port of Quebec‘s plan to build a container terminal has sparked debate on the feasibility of the project and other greenfield proposals aimed at adding more mega-ship handling capacity to eastern Canada. Montreal, the second-largest Canadian port to Vancouver, can only handle ships up to 5,000 TEU. That, however, hasn‘t stopped Maersk Line from adding a trans-Atlantic service to Montreal and Halifax. The carrier has high expectations for Canada-Europe trade as a result of the Comprehensive Economic and Trade Agreement.
Dedicated freight fund to upgrade infrastructure is a start
Unlike the United States, Canada has a dedicated freight fund of C$2 billion ($1.54 billion) to support infrastructure projects, and that will help, but only the most-needed projects will be able to fill the gaps by attracting private investment. In addition to the National Trade Corridors Fund, the Canada Infrastructure Bank plans to invest at least C$5 billion on projects supporting trade and transportation.
It‘s going to take more than money; it‘s going to take new, collaborative approaches. Innovation can come in many forms. Global Container Terminals Canada is launching its six-month pilot project at its Vanterm and Deltaport terminals that reduces the $50 flat fee for making daytime appointments to a flat fee of $35 on all appointments, day and night. That‘s an effort to head-off driver dissent that led to crippling portwide strikes in 2005 and 2014.
The port authority, government ministries, and the container trucking industry have separately agreed to raise driver rates 2.6 percent.
Technology is driving much of the innovation. Vancouver is using GPS-tracked trucks and electronic transmissions from rail track readers to better identify rail and road bottlenecks, prioritize infrastructure projects, and optimize existing operations. At the Port of Montreal, efforts are under way to implement predictive analysis to provide predicted truck turn times to drivers and dispatchers. The port is also working to enhance its trucking app, showing turn times at terminals in real-time, to give advance notice of rail shunts so drivers can plan ahead.
Cargo M — a group of federal, provincial, and municipal leaders; the port authority; supply chain partners; shippers; and industry associations — supporting the Montreal effort is an example of the collaboration needed throughout Canada, said Logistec CEO/president Madeleine Paquin, who is also vice chairman of the group. Paquin, who will deliver the keynote address on June 20 at the Canada Trade Conference in Toronto, said the Canadian logistics industry is moving in the right direction, with a greater willingness to improve visibility, create metrics, and team up to boost gateway fluidity.
―We need even more collaboration going forward,‖ Paquin said. ―This would include collaboration on strategic infrastructure investment, technology introduction, environmental efforts, and most of all on talent from the education to workforce development. Canada‘s competitiveness depends on it.‖
[Journal of Commerce]
Port development Oman: Sohar to construct high-capacity mineral terminal
30/05/2018
SOHAR Port and Freezone, Oman, has partnered with Marafi SOHAR to develop and operate a new high-capacity mineral aggregate terminal at the port.
Oman has been recently experienced rapid growth in the aggregate market, and the partnership looks to develop the countries existing capacity for export. The project will utilize the existing Bulk terminal No. 25 at SOHAR port and will develop a new stockpile yard, bringing the total area to 200,000sqm. When completed, the new terminal is expected to have an annual loading capacity of 8 million tonnes.
The development works will be carried out over a 20-month period, during which temporary hybrid solution will be established to allow aggregate export to move freely. The hybrid solution will be located on terminal 2D with a total area of approximately 100,000sqm, featuring two mobile ship unloaders with a capacity of 750MT/hour.
[Port Technology International]
Fleet development: Greece operates a fleet valued at USD 99.8 billion
30/05/2018
Greek ship owners saw a major fleet development in the ten years from the financial crisis and today operate a fleet valued at USD 99.8 billion.
Source: VesselsValue
These owners expanded their control of the world fleet from a 13% to a 17% share, representing some 218 million gross tons or 370 million dwt. Greece is followed by China and Japan at USD 91.9 billion and USD 89.27 billion, respectively, data provided by VesselsValue shows.
VesselsValue has put together a snapshot of the Greek shipping fleet and the billionaires behind the business. Greece has the most valuable fleet in the world, and the top five Greek prinicipals by value are:
Source: VesselsValue
The number were released ahead of the upcoming Posidonia event, scheduled to take place June 4-8 in Athens. Since the last Posidonia, Greece ordered the largest amount of newbuildings by value. The country scored USD 8.96 billion of newbuildings, while Japan took the second place with USD 7.7 billion of new orders, followed by China with USD 6.58 billion of newbuildings.
[World Maritime News / VesselsValue]
Shipping & logistics Brazil: Truck drivers’ strike causes chaos
30/05/2018
By Mike King
A nine-day strike by some 600,000 truck drivers protesting surging diesel prices in Brazil shows no sign of ending.
Hundreds of flights have now been grounded since the start of the strike, most ports are unable to operate and Sao Paulo, the region‘s lead business hub, has declared a state of emergency.
President Michel Temer appeared to resolve the dispute on Sunday night by agreeing to reduce diesel prices, but blockades remained in place on highways throughout the country yesterday, although federal police did clear a number of road blocks around Rio de Janeiro to enable 150 food trucks into the city after supermarkets ran of fresh produce.
Across the country fuel is now in desperately short supply, shop shelves are rapidly emptying, and chickens are being culled in their millions because there is no means of distributing feed.
―This is quite a serious situation we have here,‖ said David Ross, national manager of Brazilian port agency Alphamar Agencia Maritima. ―All of the petrol stations are out of fuel and diesel. Some of the airports are closing down because they can‘t refuel the planes. And obviously there‘s no cargo coming to the ports or leaving the ports.‖
The Brazilian Association of Animal Protein (ABPA) said 120,000 tonnes of chicken and pork exports have been cancelled since the start of the strike, while beef packer trade group Abiec said an estimated 4,000 trucks of beef currently stranded on roadsides would soon rot.
Making matters worse, strike action over ‗non-compliance‘ with workers‘ rights legislation by the National Union of Fiscal Auditors is also affecting cargo clearance by Customs, and a 72-hour strike by oil worker unions is scheduled to start today.
―While the government has reached an agreement with trucking associations, there are still roadblocks in place in many states,‖ Antonio Dominguez, Managing Director Maersk Line East Coast South America, told Lloyd‘s Loading List last night.
―Manaus port in the Amazon now has free access, but most ports in the south, including Itajai and Santos, remain blocked. Brazilian export volumes will be seriously impacted for the next few weeks. The situation is, of course, more challenging for refrigerated cargo exporters who rely on a smooth supply chain to ensure their cargo arrives at its destination without delay.‖
Terry Gidlow, chief executive officer of port agency business WaterFront Maritime Services, confirmed that road and rail access to most Brazilian ports was not currently possible. ―Access is being given only to medicine supplies and frozen goods,‖ he said. ―No other trucks or trains are being allowed to move across the cities and access to the main Brazilian ports are interdicted. Due to the blocking of main roads and railways, cargoes are not being delivered at port for export.‖
He added that customs auditors were also currently working to rule which was affecting cargo inspections and further exacerbating supply chain delays. ―It means that all import/export cargoes that may require a physical inspection are facing delays on its procedures,‖ he added. ―Cargoes which are usually cleared under the ‗green channel‘ remain unaffected so far.‖
Cathy Roberson, founder and head analyst at US-based Logistics Trends & Insights, said the implications of the outbreak of mass industrial action across Brazil would be long-lasting. ―Without the trucks, no freight is moving within the country nor out of it,‖ she said. ―International supply chains that rely on output from Brazil are going to have to look for alternative solutions which in turn can seriously damage Brazil‘s exports, not only in the short term but also the long term.
[Lloyd‘s Loading List]
Marine pollution: EU Directive on single-use plastics considered to be “vague on
sustainable alternatives”
30/05/2018
By Joshua Poole
The European Commission‘s new measures to combat growing levels of plastic pollution in the ocean are described as ―vague regarding sustainable alternatives‖ by François de Bie, Chairman of European Bioplastics (EUBP). EUBP claims that bioplastics can offer sustainable alternatives for the products being targeted in the new legislation, including cotton buds, straws and drink stirrers.
The European Commission presented an ambitious new Directive to tackle marine litter by introducing a number of measures including reduction and restriction of selected single-use plastic products, such as disposable balloon sticks, straws, cutlery, plates, cups and food containers.
―Bioplastics can offer such sustainable and safe alternatives for some of these identified products,‖ Katrin Schwede, Head of Communications, European Bioplastics, tells FoodIngredientsFirst. ―They are readily available and already widely used in the market, and they fulfill the high standards and requirements on food contact and safety.‖
―Biobased plastics provide innovative, sustainable solutions through the use of renewable resources and a reduced carbon footprint. Compostable plastics offer additional benefits when products are mixed with food waste as they can help to facilitate a safe and hygienic collection and recycling of organic waste,‖ she adds.
According to EUBP, the potential positive impacts of the already introduced measures in the revised EU waste legislation need to be assessed first. Additional actions as presented in the proposal should be based on these efforts and efficiently tie in with such developments in the sense of better regulation. The proposal specifically foresees the substitution of currently used single-use products by ―readily available, more sustainable materials.‖
―Plastics have evolved to become one of the most closely scrutinized material categories existing today, especially when it comes to food packaging and catering items,‖ stresses de Bie. He describes the new legislation as ―a meaningful addition to existing legislation and strategies‖ but reaffirms that ―bioplastics can offer such sustainable and safe alternatives for some of these identified products.‖
According to the EUBP, the proposed market restrictions on certain single-use catering items, such as plates and cutlery, does not seem to sufficiently consider the reality of food consumption today, and the proposal falls short on clearly defining the intended action. In a considerable number of contexts, single-use catering items are relevant and necessary, for example, in closed systems with integrated waste management schemes, such as airplanes, sports arenas, or open-air events. Safety and hygiene requirements need to be considered here, next to several other factors. ―In these specific cases, biobased plastic catering items can help to reduce environmental impacts, for example, through a lower carbon footprint. Whether the items should be mechanically recyclable or compostable depends on the defined waste management concept of the respective closed system,‖ suggests de Bie.
EUBP is the European association representing the interests of the bioplastics industry along the entire value chain. Its members produce, refine, and distribute bioplastics i.e. plastics that are bio-based, biodegradable, or both.
The association says it is looking forward to working together with the EU institutions and all relevant stakeholders in the upcoming discussions on the proposal in order to ensure that bio-based plastics that are mechanically or organically recyclable are recognized as sustainable and available alternatives.
Innovation in biodegradable/compostable packaging solutions continues to expand and diversify, offering sustainable alternatives to plastics. Innova Market Insights reports a 40 percent increase in new food and beverage products packaged in biobased/biodegradable material (CAGR 2013-2017).
Meanwhile, PlasticsEurope also pledges support to the new marine pollution Directive while urging the commission to ―avoid shortcuts and focus on improving waste management.‖ They stress that marine litter is a result of a combination of factors, the most important of which is the lack of implementation of waste-related legislation at national/regional level, the lack of proper waste management in some parts of the world and inappropriate littering behavior.
To reduce littering, PlasticsEurope calls for:
• Appropriate waste management infrastructure. Governments should integrate the issue of marine litter in their national waste management strategies: waste management infrastructure needs to be improved so that all plastic waste is collected and then used as a resource. Landfilling has to be avoided.
• Support for innovation and mindful product design.
• Awareness raising campaigns, which lead to responsible consumption and an understanding that waste is a resource.
PlasticsEurope urges the EU to avoid shortcuts: ―Plastic product bans are not the solution and will not achieve the structural change needed to build the foundation for a sustainable and resource efficient economy; as alternative products may not be more sustainable.‖
The EU‘s Directive will now go to the European Parliament and Council for adoption. The Commission urges the other institutions to treat this as a priority file, and to deliver tangible results for Europeans before the elections in May 2019.
[FoodIngredientsFirst.com]
Marine pollution: European Commission launches crackdown on marine litter and ghost
fishing
30/05/2018
By Jason Holland
The European Commission (EC) has tabled new measures on derelict fishing gear as well as single use plastics in order to tackle the marine litter problem.
Estimating that fishing gear – nets, lines, pots, traps, etc. – accounts for 27 percent of all beach litter, the E.C. said that its proposal will encourage all actors involved to get a maximum of derelict gear back to shore and include it in waste and recycling streams. In particular, producers of plastic fishing gear will be required to cover the costs of waste collection from port reception facilities and its transport and treatment. They must also cover the costs of awareness-raising measures.
This new measure, which is in line with EC‘s Strategy for Plastics in a Circular Economy, builds on existing rules such as the Marine Strategy Framework Directive and complements other actions taken against marine pollution, such as under the Port Reception Facilities Directive, it said.
Single-use plastic products covered by the proposal range from food and drink containers to personal care items. Plastic straws and cutlery are among the prohibited items, while food containers and beverage cups are to be reduced. It also introduces measures to increase consumer awareness about the environmental impacts of single-use plastics and extends the responsibility of producers to bear the costs of waste management and cleanup of marine litter.
The proposal will now go to the European Parliament and Council for adoption.
WWF was among those to applaud the move as an ―essential step in the right direction,‖ although the NGO felt that lost fishing gear had not been adequately covered by the proposal. Simple actions such as clear labeling of fishing gear could have a significant impact in reducing lost gear while helping to prevent illegal fishing, as owners of the gear can be held accountable, it said.
According to the commission, abandoned, lost, or disposed of fishing gear accounts for about one-third of marine litter found in European seas, or more than 11,000 metric tons (MT) per year. ―Almost half of the ‗great garbage patch‘ in the Pacific Ocean consists of such fishing gear. We estimate that in the EU, 20 percent of gear is lost at sea. The reasons for this loss vary, ranging from accidents, storms and entanglement to intentional abandonment,‖ it said in a statement.
Fishermen already have the obligation Council Regulation (EC) No. 1224/2009 to retrieve or report lost gear.
[SeafoodSource]
Oil shipping: Added uncertainty is not helpful to struggling tanker operators
30/05/2018
By Peter Sand
The impact of the sanctions against Iran and global stockpile levels are two factors to watch out for.
Demand
Just when you thought it could not get any worse for the tanker shipping industry, the US is re-imposing sanctions on Iran coming into force after a six months wind-down period ending on 4 November 2018. The immediate effects are less tangible but sure to add more uncertainty to the whole shipping industry that has plenty of uncertainty to deal with already.
At the same time, freight rates for both crude oil tankers and oil product tankers are mostly in loss making territory. Hardest hit are the larger crude oil tankers. On 25 May, average earnings for VLCC, Suezmax and Aframax stood at USD 4,238; 18,073 and 17,930 per day respectively. In the product tanker sector average earnings were almost as miserable, ranging from USD 10,561 per day for a LR2 via USD 6,500 per day for a LR1 to USD 9,121 per day for a MR.
In its April Oil Market Report, the International Energy Agency (IEA) asked whether OPEC could claim ―Mission accomplished‖ shortly, on rebalancing the global oil market after several years of oil supply being significantly higher than oil demand. BIMCO believes that the oil market still has some way to go before being balanced. As highlighted in our most recent tanker shipping report, global oil stocks still appear to be significantly above a ―reasonable‖ target (same stocks/consumption ratio as before the building of stocks).
BIMCO believes that the tanker industry will enjoy a noteworthy higher level of demand when global oil stocks are drawn further down. Moreover, a better oil market balance may also cause a return to an oil price contango (contango is a situation where the future price of a commodity is higher than the spot price). An oil price contango is likely to indicate an increased demand for tankers for floating storage.
Supply
March 2018 was the busiest month for crude oil tanker demolition in general and specifically for VLCCs since 2003, with 10 units sold for demolition. Such hefty activity also prompted the crude oil tanker fleet not to grow during the first four and a half months of 2018.
Even though demolition of oil product tankers was high paced too – as 1.1m DWT left the fleet, the oil product tanker fleet size still grew by 0.9% from January through April.
Whereas demolition is affecting the freight market balance right here and right now, ordering of new ships represents an omen of what is to come. Currently it seems that owners and investors who are starving in the freight market have little appetite for ordering new ships for future delivery. Crude oil tanker ordering is up by just 6% to 6.6m DWT (incl. 20 VLCC) during the first four months from a year before, whereas oil product tankers are down by 33% to just 1.4m DWT from a year ago.
Owners and investors have also cooled their interest for second-hand ships, with an average of only six ships changing ownership a month in 2018. This is 50% down on 2017-average monthly Sales and Purchase business. The degradation of the freight market conditions has also meant that less money is spent, even though asset prices have moved up since the low levels of 2017.
BIMCO revises its previous estimate for crude oil tanker demolition upwards, from 9m DWT to 13m DWT. The immediate effect of this is that our estimated fleet growth for 2018 comes down to 2.0% from 2.7%. During the first four months of 2018, 8.5m DWT of crude oil tanker capacity have been demolished.
2018 is a focus year for the crude oil tanker sector more than anything with a fleet growth below 2% – particularly, if 2019 turns out as forecasted with a fleet growth above 3%, due to lower demolition than in 2018. In an average crude oil tanker market, the fundamental conditions only improve if fleet growth is less than 2%.
Amongst oil product tanker companies, patience is virtue. The fleet is growing slowly but earnings aren‘t improving. Quite a few new orders surfaced in November and December 2017, but interest have cooled somewhat since then. Staying away from the shipyards is essential for reaping the benefit that two years of tepid fleet growth (2018 and 2019 at 2.8% and 2.6% respectively) could bring around in the form of higher freight rates.
Outlook
The level of global oil stocks, and not only OECD oil stocks, remains the only factor to watch out for. It is, however, also the one factor we have no hard data for. Nevertheless, indirect measures point to stockpiles still being too high for normal tanker demand to resume.
2018 has seen such a narrow focus on VLCC orderings in the crude oil tanker sector that the obvious question is: how much is too much? The developments in shipping in general and within the oil tanker sector specifically is focused on the larger ship sizes, but it remains important not to prepare too far in advance for what is forecasted to come. The better earnings that should come out of a stronger demand scenario, may end up disappointing if there is large overcapacity.
On another note, the sanctions against Iran have already had an impact on trade. But will we be able to single out the effect of US sanctions against Iran, when they come around? The answer is, ―probably not to their full extent‖, because the tankers are impacted by so many other factors too – some more potent. For example, the ongoing crisis in Venezuela and Libya limits oil production in both places. Imagine if that situation was reversed? The world would then be awash with oil, something which is likely to keep the oil price in backwardation (a situation where the spot price of oil is higher than the expected future price of oil).
Additionally, more pipelines are built around the world, and they are all equally critical to the oil tankers – as they take seaborne demand away. Amongst the newer pipelines are the Sino-Myanmar pipeline to
Kunming, the second Sino-Russian pipeline to Daqing and the East-West Petroline from Arabian Gulf to Yanbu in the Red Sea.
Another trend to keep an eye out for is the extent to which Europe is going to keep imports of oil products high. In recent years we have seen especially Middle Eastern refineries built for exports, with more to come online in the next couple of years. But will those refineries end up producing for domestic purposes?
[BIMCO]
Oil shipping U.S.: Oil and fuel exports drive development at Port of Brownsville
30/05/2018
By Steve Clark
An increase in U.S. oil exports and foreign demand for domestically refined gasoline and diesel is driving new development at the Port of Brownsville.
Port of Brownsville Shipping Channel
Dallas-based JupiterMLP LLC announced May 17 that it had secured permits from the Brownsville Navigation District, the Texas Commission on Environmental Quality and the U.S.
Army Corps of Engineers to expand its operations at the port toward creation of the Jupiter Export Terminal, which the company said will allow it to load/unload vessels up to 65,000 deadweight tons at a rate of up to 30,000 barrels per hour.
Jupiter also said it received approval to build up to 2.5 million barrels of storage for hydrocarbons and has permission to blend refined petroleum products such as diesel and gasoline. Crude oil would be delivered to the ―transloading‖ facility via rail tanker car before processing and export.
The company said it expects the export terminal to be fully operational in 2020. Jupiter is currently moving diesel through the port through a third party, according to Port Director and CEO Eduardo Campirano. In its announcement, the company also said it is starting the permitting and engineering process for the addition of two private docks at the port, plus the Jupiter Offshore Loading Terminal, which would accommodate Very Large Crude Carrier vessels six miles off the Texas coast.
Also, the company has proposed the Jupiter Pipeline, which would connect its Port of Brownsville terminal with the Permian Basin oil fields in West Texas. Jupiter expects the 500,000-barrel-per-day pipeline to be complete during the second quarter of 2020.
Campirano said the proposed pipeline, the extra private docks and offshore terminal project fall should be considered ―Phase 2‖ projects and that ―it remains to be seen‖ whether they will indeed happen.
Phase 1, which has been permitted, encompasses construction of additional storage tanks and installation of a hose rack on the liquid cargo dock, he said. ―That‘s for them to be able to store their hoses when they connect to the vessels for whatever commodity they‘re going to be exporting,‖ Campirano said.
[The Brownsville Herald]
Container shipping: Lines make waves on the transatlantic as they cancel services to cut
costs
30/05/2018
By Mike Wackett
Soaring fuel costs combined with stagnant or under-pressure freight rates are forcing container shipping lines to axe services on marginal trade lanes.
The latest route under scrutiny is the traditionally robust transatlantic, which in the past week has seen both Hyundai Merchant Marine (HMM) and Evergreen announce the suspension of services.
HMM is giving up its 700 teu a week allocation on the 2M‘s two strings from North Europe to the US east coast and US Gulf, telling shippers that after June it would ―no longer serve the transatlantic until further notice‖. The South Korean carrier added: ―Market conditions drive HMM to concentrate our efforts to service our customers in other core trades.‖
This represents a setback for HMM‘s aspirations of becoming a global carrier, but according to one source it was not filling the slot allocation, which it had to pay for regardless, and the final straw was the imposition of the emergency bunker surcharge levied by MSC and Maersk.
And next month will see Evergreen pull its TAX North Europe-US east coast and Gulf shuttle, which only launched last month. The Taiwanese carrier did not give an official reason for the suspension, but unlike HMM, Evergreen also operates two other services on the transatlantic, the TAE (transatlantic express) and the EUG (Europe to Gulf of Mexico express).
Carriers have failed to lift rates on the transatlantic and, according to Drewry‘s World Container Index (WCI), spot rates between Rotterdam and New York have remained unchanged for several weeks at $1,918
per 40ft.
Although the WCI is recording a year-on-year increase of 10% on the spots, this is still insufficient to compensate for the 20% hike and rising cost of bunker fuel. Generally, with fuel hedging strategies, carriers have an eight-week grace period on bunker cost increases, which contrasts with the average of two quarters before bunker surcharges, if implemented, are seen in carriers‘ revenues.
Moreover, carriers are facing numerous other inflationary pressures, such as rocketing charter hire rates, big hikes in intermodal costs and a weaker US dollar, which is the bedrock of liner revenue.
Indeed, Maersk reacted to its ―unsatisfactory‖ first-quarter $239m loss by announcing ―a number of short-term initiatives‖ to improve profitability. Nevertheless, the Danish carrier is still on the lookout for trades where it can earn some money, evidenced by last week‘s decision to commence its own Mediterranean to St Lawrence Seaway service in July, after previously slot chartering on a Hapag-Lloyd loop. The weekly Med/Montreal Express service will be a five-vessel rotation stopping in Salerno and La Spezia (Italy), Fos-sur-Mer (France), Algeciras (Spain), Montreal and Halifax (Canada) and Valencia (Spain).
The line said other Mediterranean ports would be connected through its ―integrated transhipment services in Algeciras and Valencia, with consistent products to/from the Middle East, Africa, and Asia‖.
Karsten Kildahl, chief executive of Maersk Line‘s European Region, said: ―We are confident we can create opportunities for European and Canadian businesses which will offer them improved transportation solutions to cater for the demands of growing trade.
[The Loadstar]
Container shipping: Global Shippers Forum criticizes bunker surcharges
30/05/2018
By Chris Dupin
Emergency bunker surcharges announced by several leading liner shipping companies in reaction to rising fuel costs have drawn sharp criticism by the Global Shippers Forum (GSF), which said they were imposed ―almost in unison. In most cases, these emergency surcharges are imposed on top of existing bunker surcharges.‖
GSF ―believes this move is an indictment on the liner shipping industry,‖ it said, adding, ―Few transport operators in other transport sectors would risk imposing such short-notice emergency surcharges because of the likely strong reaction from customers, including the loss of business.
―A decade since the abolition of the liner conference system in October 2008, the container industry is still using conference-style pricing methods to impose surcharges on its customers,‖ GSF said.
Maersk, MS and CMA CGM all introduced new bunker surcharges last week. Hapag Lloyd issued a notice Wednesday adjusting bunker charges on July 1 on trades to and from East Asia, Australia, New Zealand and some other trades.
―Containership operators need to ‗fess up‘ by taking responsibility and greater control of their costs, rather than announcing vaguely explained short-notice unrecoverable surcharge costs on customers,‖ said Chris Welsh, secretary general of GSF.
But Maersk last week explained ―The increase in bunker price in the first quarters of 2018 has been more than 20 percent compared to the beginning of the year, reaching the highest level since 2014.
This unexpected development means it is currently not possible for Maersk Line to recover bunker costs through the standard bunker adjustment factors (or SBF).‖
MSC said, ―The continued surge in bunker prices has greatly impacted the operating environment for container shipping lines. With crude oil today hovering around $80 a barrel — the highest since 2014 — the situation is no longer sustainable without emergency action.‖
MSC said its was introducing a worldwide temporary emergency bunker surcharge on all ocean and land-based cargo carriage with immediate effect, adding, ―This last-resort measure is essential to ensure that we navigate these challenging economic conditions in a steady and sustainable way and continue to provide a high quality of service to all our customers.‖
The website Ship and Bunker says the average price of IFO 380 bunker fuel at four leading bunkering ports (Singapore, Rotterdam, Fujairah and Houston, which its says account for about 25 percent of global bunker volumes) on Monday was $442.50. per metric ton. That‘s down $13 per metric ton from May 22, but up a whopping $140 per metric ton from where it was on May 30, 2017.
But Welsh said that ―it is incumbent on container carriers to provide their customers with full transparency regarding bunker surcharge costs and to explain why an emergency surcharge is warranted on top of existing bunker surcharge mechanisms. Shippers will also want to know what steps have been taken to mitigate the impacts of rising fuel prices, including the impacts of fuel hedging arrangements which are designed to manage the risks associated with the single largest cost component of operating container ships.
―The imposition of emergency surcharges has no place in a modern liner shipping market where costs and prices should be mutually agreed between customers and suppliers, preferably in mutually agreed service contracts,‖ he contended. ―Such arrangements enable the parties to build long-term business partnerships as well as providing clarity on the terms and conditions for the services provided and for appropriate remuneration.
―The use of emergency surcharges is a none-too-subtle attempt to impose non-negotiable charges on customers. The liner industry needs to employ more appropriate pricing arrangements, in conjunction with its customers, if it is serious about developing partnership approaches and improving individual customer-supplier relationships,‖ Welsh said.
In an article posted on Linkedin on Monday Bjorn Vang Jensen, vice president of Global Logistics at Electrolux, wrote, ―I have sympathy for the carriers‘ challenges, but refer to the agreements we and many other BCOs have only very recently entered into, both parties with eyes wide open. These agreements include specific clauses around bunker prices, and we expect that the carriers will respect those.
―Prices of steel, chemicals and freight have risen substantially in our industry over the last 12 months, and in some cases even dramatically, as anyone who reads our published financial reports will know,‖ he added. ―But we have neither a ‗Steel Adjustment Factor‘ nor a ‗Chemicals Arbitrary‘ or a ‗Freight Increase
Surcharge‘ in our contracts with our customers. There is a risk attached to doing business, which we accept, and which we expect that our suppliers accept too. No matter whether they supply steel, gaskets, wire harnesses, compressors, circuit boards, switches, finished products — or freight.‖
[American Shipper]
Shipping subsidies South Korea: Eximbank to prop up industry
30/05/2018
The Export and Import Bank of South Korea (Eximbank) announced on April 20 that it will provide more than 800 billion won this year to help the maritime shipping industry.
At a meeting with the CEOs of major shipping firms at the Korea Federation of Banks building in Myeong-dong, downtown Seoul, Chairman Eun Seong-soo unveiled the bank‘s funding plan for this year, which is large enough to finance the construction of 30 regular-size cargo ships.
Eximbank held the ―Get-together for CEOs of shipping sirms,‖ to learn about the problems facing the shipping industry from the heads of 10 major shipping firms and key executives of the Korea Ship Owners Association at the gathering.
The shipping firms they represented included the Hyundai Merchant Marine, Jangkeum Merchant Marine, Koryo Maritime Shipping, Polaris Shipping, SK Shipping, Dongah Tanker and KSS Shipping, among others. The meeting took place on the heels of the government announcement of its plan to help the shipping industry following the debacle of the Hanjin Shipping, the largest maritime shipping firm in Korea, which went belly-up. The government had to step in to get the shipping firm keep operating.
The government‘s 5-year plan to rebuild the shipping industry involves its support to build 200 ocean-going ships, which will be managed by the Korea Maritime Promotion Corp. to be launched in July.
The Eximbank CEO said at the meeting that the shipping industry and ship yards have been hit by tough times, boosting shipping expenses for export goods from Korea. He said Eximbank will provide its financial support evenly to both the shipping and shipbuilding firms.
The five-year restructuring plan will strengthen the competitiveness of shipping companies, and when this leads to a positive cycle of creating demand for shipbuilders, such cost will be reduced. As part of its determination to revive its ailing shipping industry, South Korea has revealed an ambitious investment plan that will see the construction of about 200 ships in the next three years. These will include up to 140 bulkers and 60 containerships, including 20 ULCVs.
Under the plan, revealed by the Ministry of Ocean and Fisheries earlier in the year, the country aims to create a symbiotic system that would renew the country‘s fleet with efficient eco-friendly vessels, boosting at the same time local shipbuilders with orders and securing cargo influx at local seaports by offering competitive services.
The rehabilitation plan is being pursued in the wake of Hanjin Shipping‘s bankruptcy, which cut South Korea‘s shipping industry‘s sales by over 10 trillion won, halving the country‘s tonnage of the deep sea containers. One of the key features of the plan is to provide financing,especially for smaller shipping companies which have so far had limited access to funding for ship investments.
To that end, the Korea Maritime Promotion Corporation, a maritime powerhouse intended to support the country‘s maritime branches, will have its newbuilding investment support program adapted to benefit small and medium-sized companies. The promotion agency is set to launch this July and will provide money or investment guarantees for companies‘ ship investments. The Export-Import Bank of south Korea (Korea Eximbank) recently promised 800 billion won in loans and guarantees to the local shipping industry this year as the government acts on a five-year restructuring plan.
[News World]
Oceans: Human rights abuses aboard Taiwan’s fishing vessels
30/05/2018
By Cliff White
A report from environmental activist group Greenpeace on crewmember abuse aboard fishing vessels in the Pacific Ocean has pointed blame at Taiwan and the Fong Chun Formosa Fishery Company (FCF), but the company‘s president has characterized the accusations as ―misleading.‖
The Greenpeace report, Misery at Sea - Human suffering in Taiwan‘s distant water fishing fleet, reports on poor labor standards, dire working conditions, and harmful fishing techniques in Taiwan‘s distant-water fishing fleet. It also calls out ―the continued failure of Taiwanese authorities to effectively sanction human rights abuses,‖ including the trafficking of Cambodian nationals into Taiwan‘s fishing fleet, and apparent deficiencies in Taiwan‘s investigation into the death at sea of an Indonesia fisherman on-board a Taiwanese fishing vessel, and the conviction of six fishermen accused of murdering their Chinese captain.
―Conducted over the course of more than a year, our investigations show that Taiwan‘s fishery supply chain is still tainted by human rights abuses, despite the law change in early 2017 to protect migrant fishers on Taiwanese vessels,‖ Greenpeace Global Investigation Lead Yi Chiao Lee said in a press release. ―This means there is high probability that tainted seafood is making its way into sushi shops and dinner plates in Asia, Europe, and the Americas. There are no excuses. Taiwan‘s seafood industry must now act urgently to eliminate these appalling practices.‖
In 2015, Taiwan was given a ―yellow card" from the European Commission, warning the country its cooperation in combating illegal, unreported, and unregulated (IUU) fishing was insufficient. The commission is preparing to review Taiwan‘s status in September, after which it will decide whether to lift the warning, continue it, or impose a ―red card‖ or total ban on Taiwanese seafood imports into the European Union.
The Greenpeace report explicitly calls out Kaohsiung, Taiwan-based FCF, one of the largest marine products trading companies in the world, handling more than 520,000 metric tons of tuna annually and operating more than 600 fishing and fishing-related vessels, for its indirect links to human trafficking and potential exploitation and abuse of crewmembers aboard its boats.
In a statement, FCF Fishery President Max Chou called Greenpeace‘s work on the report meaningful, but said he was ―disappointed that they are implicating FCF in old incidents and cases that have since been in all instances addressed in coordination with the Taiwanese Fisheries Department.‖
―We realize that as one of the world‘s largest marine products integrated supply chain service providers with more than 30 subsidiaries, fishing bases, and shipping agents around the world, we are a prime target for organizations seeking to garner publicity and those not fully aware of the latest development and improvements that are currently taking place in the fishery industry,‖ Chou said. ―However, in their efforts to curb egregious human rights abuses, we believe it is unfair and deceptive to lump our company in with those who condone cruelty and neglect of their laborers.‖
Chou said the company has worked over the past five years to implement ―a high priority on social responsibility and environmental sustainability.‖
―Working closely with our partners, and a global third-party compliance and social accountability firm, we require our associated fleet to formally agree to meet or exceed the standards of our Social Accountability Code of Conduct. Despite considerable challenges related to our supply chains and eclectic providers, FCF is on the forefront of ensuring we meet relevant social responsibility and sustainability standards,‖ he said.
―There is always room for improvement, and even a single case of alleged abuse is too many. FCF remains committed to leading our industry‘s social responsibility effort, and to ensuring respect for all fishing laborers. We welcome anyone who has questions about our work approach, partners, policies, or practices to contact us directly, as we have welcomed dialogue with Greenpeace and other stakeholders.‖
Greenpeace said large, global companies such as FCF bear a heavy responsibility for ensuring the integrity of their seafood supply chains.
―Big traders have a major responsibility to reform if the existing business model, which appears based on human exploitation, is to be ended for good,‖ Greenpeace concluded in its report.
[SeafoodSource]
Oceans: Japan slaughters 122 pregnant whales for 'scientific research'
29/05/2018
By Chris Baynes
Animal rights campaigners condemn 'gruesome and unnecessary' hunt.
A dead minke whale is unloaded in Kushiro on the Japanese island of Hokkaido. Credit: AP
More than 120 pregnant females were among hundreds of whales slaughtered in Japan‘s latest hunt in the Antarctic, prompting condemnation and calls for international action. A total of 333 minke whales were killed as part of the country‘s so-called ―scientific‖ whaling programme, which carries out an annual summer hunt in the Southern Ocean.
Among those slaughtered, 122 were pregnant and another 114 were juveniles, according to documents from a meeting of the International Whaling Commission‘s (IWC) scientific committee this month.
Japan has signed the commission‘s moratorium on whale hunting, but Tokyo exploits a loophole each year by saying its hunt is conducted for scientific research. Critics say the research is actually a cover for commercial whaling, as the meat from the harpooned mammals is later sold to be eaten.
―The killing of 122 pregnant whales is a shocking statistic and sad indictment on the cruelty of Japan‘s whale hunt,‖ said Alexia Wellbelove, senior program manager at Humane Society International. ―It is further demonstration, if needed, of the truly gruesome and unnecessary nature of whaling operations, especially when non-lethal surveys have been shown to be sufficient for scientific needs,‖ she added.
Two Japanese vessels were involved in last summer‘s hunt, which targeted the whales using harpoons loaded with a 30g penthrite grenade. The slaughtered animals were taken on board the boats, where researchers took measurements and collected data on their blubber and stomach contents, according to the IWC papers.
Japan‘s fisheries agency collects the data and reports the findings to the commission. It says the programme
is carried out in accordance with the International Convention for Regulation of Whaling.
―Whales are already facing substantial threats including bycatch in fisheries and marine pollution,‖ Ms Wellbelove said. ―Significant conservation efforts are underway worldwide to address these issues, so the least Japan could do is put away the harpoons. The continued killing of any whales is abhorrent to modern society, but these new figures make it even more shocking. We look forward to Australia and other pro-conservation countries sending the strongest possible message to Japan that it should stop its lethal whaling programme.‖
[The Independent Online]
Railways Malaysia: New prime minister scraps high-speed link between Kuala Lumpur and
Singapore
29/05/2018
In a surprise decision that will disappoint international engineering firms, Malaysia‘s new prime minister Mahathir Mohamad declared yesterday that he will cancel the multi-billion-dollar scheme to build a high-speed railway between Kuala Lumpur and Singapore.
Aecom, CH2M (Jacobs), Mott MacDonald, and WSP are some of the European and North American companies to have won roles on the ambitious project, which has been the subject of a formal agreement between the two countries since December 2016.
With his country‘s finances under strain, Mahathir said the decision was to ―avoid being declared bankrupt‖ in an interview with the Financial Times published Monday, 28 May. Malaysia ―needs to do away with some of the unnecessary projects, for example the high-speed rail, which is going to cost us RM110 billion [US$27.6bn] and will not earn us a single cent‖, he said, adding, ―That will be dropped.‖
Mahathir is also reported to be scrutinising the $13bn East Coast Rail Link (ECRL), which China is funding and building.
The cancellation came as an investigation into corruption tightened around former prime minister Najib Razak, who lost the 9 May general election to 92-year-old Mahathir, himself a previously serving prime minister from 1981 to 2003.
Najib was barred from leaving the country after the election. He has faced accusations of corruption in connection to the state property investment fund he set up and ran, 1Malaysia Development Berhad (1MDB), from which billions of dollars appear to have gone missing.
Concern over Malaysia‘s finances intensified last week when documents declassified by the new government showed 1MDB to be drowning in debts of $18bn, nearly double the debt previously declared by the Najib government.
With trains moving at 300km/h, the 350-km line was to begin operating in 2026, cutting the land journey between Kuala Lumpur and Singapore to just 90 minutes from the current four-plus-hour drive. It was to have seven dedicated stations in Malaysia and one in Singapore.
Questions will now be raised over Kuala Lumpur‘s huge property development, Bandar Malaysia, a flagship scheme of 1MDB that was to be developed around the Malaysian terminus of the high-speed railway. The project had been proceeding at pace before the election. Land acquisition for the longer Malaysian segment was to begin next month. In April two large Malaysian consortiums were appointed project delivery partners for the civil works. European and North American engineering firms had won roles on the multi-package scheme. Systra and Meinhardt were awarded two reference design consultant contracts; WSP and Mott MacDonald was named joint development partner in a consortium with Ernst & Young; US group Aecom won a $25m deal to provide engineering consultancy services; and CH2M (now owned by Jacobs) had secured a role as technical advisor for the Malaysian side‘s delivery body, MyHSR.
Yesterday Mahathir acknowledged his government would likely have to pay compensation to Singapore for cancelling the scheme. After the Financial Times interview appeared, the prime minister gave a press briefing in which he said: ―It is a final decision but it will take time because we have an agreement with Singapore. We have to manage it at the least cost possible.‖
Last night Singapore‘s transport ministry said it had not received official confirmation of the Malaysian decision.
According to reports, Mahathir is also reconsidering another major scheme initiated by the Najib administration – the $13bn ECRL, a 688-km line connecting Malaysia‘s northeastern cities with Kuala Lumpur. He called the contract ―strange‖, saying: ―The contractor must be from China and the lending is from China.‖ In the run-up to the election, Mohamad said he would review the in-pouring of Chinese investment in property and infrastructure.
Meanwhile, the re-opened corruption probe into 1MDB took a dramatic turn as well last week when police revealed they had discovered cash totalling $28.6m, plus jewellery and hundreds of luxury handbags in homes they had searched, which included Najib‘s home and those of his son and daughter. The cash was in various currencies, packed into suitcases.
[Global Construction Review]
Marine pollution India: Sagarmala project does not recognise the need for a clean
environment
29/05/2018
By Gayathri Iyer
If Sagarmala is to succeed, it must define steps to manage and contain pollution.
India‘s Ministry of Shipping‘s Sagaramala National Perspective Plan is admirable in having lent an urgency and purpose to coastal infrastructure projects, by aiming to plug gaps between good ideas and their implementation. 1 A flagship project of the Narendra Modi government adopted in April 2018, it plans to develop at least 14 Coastal Economic Zones (CEZ) and 29 Coastal Economic Units (CEU). The ambitious undertaking also envisages the development of mines, industrial corridors, rail, road and airport connectivity with the ports is expected to yield an export revenue growth of US$110 billion and generate over 1,50,000 new jobs.
Notwithstanding its vision for ushering in broader economic development, Sagarmala does not however recognise the need for a clean environment, particularly in the management of wastes and effluents entering the coastal areas from large river systems. This is no small matter, as the Sagarmala has a socio-economic dimension that promises sustainable development. Beyond navigable waterways and port-led development, the project envisions coastal community development, including a clean maritime environment.
An important aspect of environmental protection is the fight against plastics in river-bodies. These are different from the general detritus or plastic dumped on the coasts by the locals, municipalities or the industries. The enormous chemical content present in river-borne plastics endangers the entire aquatic and coastal ecosystem, underscoring the need for a sustainable coastal and marine environment.
1 http://nationalinterest.org/blog/the-buzz/revealed-indias-master-plan-the-indian-ocean-13198
Research shows that of the ten major river systems of the world contributing 90 percent of inflow of plastic in the oceans, three are in India. 2 The Indus River carries the second highest wastes, followed by Brahmaputra and Ganga that together account for the sixth highest amount of mismanaged plastic debris to the sea. 3 The debris include plastic bags, micro-plastics, or small plastic particles from cosmetics, tyres, artificial grass, paints and clothes, etc. These not only affect coastal populations and marine ecosystems, but also pose a bigger threat to the human food chain.
According to recent studies, the reduction of plastic input from the catchment areas of the top polluting rivers, can dramatically curtail the waste outflow into the oceans. For an ambitious pan-national project like the Sagarmala, involving the development of riverine infrastructure, it would appear appropriate to include such programmes such as Swachh Bharat and the National Mission for Clean Ganga (NMCG). The latter has adopted a comprehensive approach, which includes wastewater management, solid waste disposal, industrial pollution and river front development.
Why, one wonders have Sagarmala project managers been imperious to the need to prevent litter and plastic pollution at the marine end of rivers. It is worrying enough that the 2018 Coastal Regulation Zone (CRZ) notification issued by the Ministry of Environment, Forests and Climate Change (MoEFCC) has made it easier to implement government ventures lacking necessary environmental clearances. The fact that the proposed regulations threaten the environment and the livelihood of local fishing communities, points to a general apathy for matters of conservation and sustainability.
Meanwhile, it is clear that the ministry of environment has not been looking at infrastructure projects in holistic fashion. Instead, it is the ministry of Earth Sciences, the National Institute of Oceanography, the Indian National Centre for Ocean Information Services, Centre for Marine Living Research, Ecology, and the National Biodiversity Authority that have persisted with rudimentary initiatives to ensure environmental cleanliness. Even so, none has had river related sub-bodies working to manage problems at the delta end of rivers. a resolution to reduce marine plastic waste at the United Nations Environment Assembly in Kenya in 2017, it hasn‘t laid down specific targets to eliminate major sources of marine litter, plastics and other waste by 2022.
In the conditions that prevail today, New Delhi‘s commitment to the Sustainable Development Goals appears shaky. The SDG creates a framework to sustainably manage and protect marine and coastal ecosystems from land-based pollution. But even as the NDA government has worked towards the development of ocean-based resources, it does has little to mitigate the challenges facing our rivers and seas.
Experts observe the tremendous potential for India to collaborate with China and Africa and other international organizations. The need of the hour is to identify partners that can help in the evolution of programmes for cleaning India‘s major river systems. Whatever modern world-class infrastructure, industrial corridors, rail, road and airport linkages India might create, it is indeed worthless without sustainable systems.
If Sagarmala is to succeed, it must define steps to manage and contain pollution, plastic or chemicals and have a clear focus on its clean environment agenda. [ORF – Observer Research Foundation]
Port development: Japan’s plans to build a “Free and Open” Indian Ocean
29/05/2018
By David Brewster
While many eyes are on China‘s port investments in the Indian Ocean, Japan has also been busy. The scale of its infrastructure investments in the region rivals, and sometimes exceeds, that of China.
But Japan argues that its growing presence in the Indian Ocean is qualitatively different, focused on transparency, economic sustainability, and a rules-based order that should become part of regional norms. Australia must consider the role in can play in these projects.
Compared with China‘s Belt and Road Initiative (BRI), Japan‘s investment activities in the Indian Ocean are barely promoted, and as a result its projects often fly under the radar. This obscures the fact that Japan has been very active in building infrastructure and ―connectivity‖ across the region.
Indeed, spending on these projects is not too different from China‘s spending on the BRI, which is sometimes inflated, double-counted, or based on vague future promises.
Japan‘s ―Partnership for Quality Infrastructure‖ initiative, first announced in 2015, involves infrastructure spending, over five years, of around US$110 billion in Asia. In 2016, the initiative was expanded to $200 billion globally (including in Africa and the South Pacific).
A list of recent Japanese-sponsored port projects since 2016* (with approximate Japanese funding in US dollars) indicates just how active Tokyo has been in the Indian Ocean:
• Nacala, Mozambique – port ($320 million)
• Mombasa, Kenya – port and related infrastructure ($300 million)
• Toamasina, Madagascar – port ($400 million)
• Mumbai, India – trans-harbour link ($2.2 billion)
• Matarbari, Bangladesh – port and power station ($3.7 billion)
• Yangon, Myanmar – container terminal ($200 million)
• Dawei, Myanmar – port and special economic zone ($800 million)
Japanese projects involving the development of connectivity between the Pacific and Africa have now been rolled into its Free and Open Indo-Pacific Strategy (FOIP). Japan‘s regional strategy is essentially about providing alternative responses to China‘s growing economic role in the Indian Ocean region.
American analyst Michael Green argues there is an important difference between Japanese and US strategies: unlike Washington, which often sees China‘s role in zero-sum terms, Tokyo recognises that all the nations encompassed in the arc from Africa to the Western Pacific desire investment and sustainable economic development. This means it is essential they are provided with concrete alternatives.
Anxiety about China‘s BRI regularly centres on concerns that Chinese-controlled port infrastructure might one day be used for military purposes. But there are other reasons to worry.
China‘s approach to building infrastructure is frequently criticised as being non-transparent, non-sustainable, and exclusive. Chinese companies often construct infrastructure on a sole-source basis and then gain exclusive access to what should be common-use infrastructure. Other projects may be economically unsustainable, and host countries may be left with a major debt bill for non-economic projects.
Japan claims that its approach to building connectivity has some important differences with the BRI. Its strategy emphasises the Ise-Shima Principles endorsed by the G7, including safety, reliability and resilience, social and environmental considerations, local job creation and transfer of know-how, alignment with host country development strategies, and economic viability. The strategy also emphasises norms such as transparency and non-exclusivity.
The Japanese initiative also positions India as a key partner and Indian Ocean economic hub. This might seem obvious, but it is a gaping hole in China‘s BRI strategy, which bypasses India. Indeed, it is difficult to conceive of a regional economic system that does not include India as a central player.
In 2017, Japan and India announced the Asia–Africa Growth Corridor as a joint initiative to build connectivity between the Pacific and Africa. While its financial resources may be limited, India can still play an important role. For example, Delhi used its diplomatic influence in Bangladesh‘s decision to award the Matarbari port project to Japan. India and Japan may also partner in other future projects, including at Trincomalee in Sri Lanka, and potentially (subject to US sanctions) Chabahar port in Iran.
While Japan‘s strategy clearly competes with China‘s BRI, it does not exclude China. In fact, if strategic rivalries can be overcome, there is considerable potential for cooperation. Tokyo hopes that the principles espoused as part of its initiative will become norms for future projects in the region. Prime Minister Shinzo Abe has claimed that he expected the BRI will incorporate ―a common frame of thinking, and come into harmony with the free and fair Trans-Pacific economic zone‖.
What does this mean for Australia?
Japan has called for its ―Quadrilateral dialogue‖ partners to join its Free and Open Indo-Pacific Strategy. This is consistent with Australian efforts to maintain a rules-based regional order.
Australia is unlikely to contribute finances to Indian Ocean infrastructure projects in any way approaching the major financial resources being mobilised by Tokyo. Nevertheless, Australia can play an important role as a country with considerable expertise in infrastructure services; for example, in port design and operation. Australia also has strong credentials in ―soft infrastructure‖, such as training and institution-building.
But it is not only technical expertise. Australia‘s participation in some projects, even as a junior partner, may also be seen as useful by some Indian Ocean countries that would prefer to involve several countries (including China) in politically sensitive projects.
Diversifying the participants in these projects could truly be a win-win for all concerned. Australia needs to consider how it can work with both Japan and China in promoting open and sustainable projects across the region.
[The Interpreter / Lowy Institute]
Port development France: European Investment Bank to provide EUR 50 million for project
at Marseille Fos
29/05/2018
By Julia Louppova
The European Investment Bank (EIB) announced yesterday its support of the port development projects of Marseille Fos by allocating EUR 50 mln (USD 57.6).
The aim of the signed agreement is to provide financing for the five projects that require a total investment of EUR 136 mln (USD 157 mln). These include the reconstruction of international passenger terminals and the enlargement of the North pass in the Eastern basin to enable accommodation of large cruise ships. In the Western basin, these projects include the renovation of the K3/K4 substations for the supply of ship fuel, further development of the Feuillane logistics zone and the extension of the two existing berths in order to offer 2.6 km of continuous quay space for the largest containerships of today.
The sharp increase in traffic in the last three years has consolidated the credibility of the port of Marseille Fos in France and internationally. The port was able to take full advantage of the economic recovery by pursuing its strategy of diversification and conquest of new markets.
[port.today]
Port development Vietnam: Plastic and paper scrap imports choke ports
29/05/2018 Large-scale waste dumping has reportedly choked Vietnamese ports, with hundreds of containers loaded with plastic and paper scraps lying unclaimed, forcing authorities to impose a temporary ban on waste imports.
Tan Cang – Cai Mep International Co., Ltd (TCIT), a terminal services company, in a letter to shipping lines and customers, said it would suspend imports of plastic and paper scrap as a similar decision earlier by another operator, Saigon Newport Corporation (SNC), had led to overcapacity at TCIT terminals.
―From 25th of June to 15th of October, TCIT will stop receiving all imports laden containers of plastic waste,‖ a letter signed by general director Chang Fa Wei said. Ngo Minh Tuan, deputy head of SNC, in an official communication, claimed previously that about 5,200 containers of plastic and paper waste have been stored for 90 days or longer at its port.
TCIT Port authorities are alarmed that more than 1,132 containers with plastic and paper waste have been stacked up at the port for last few months. ―Customers are not coming forward to claim the scraps. It‘s a complicated situation,‖ Nguyen Thai Thuong, a senior employee of TCIT, told CGTN over the phone.
―The Chinese ban on waste import is the main reason behind the surge of plastic and paper waste imports, undoubtedly.‖ The Chinese ban has meant a diversion to Vietnam of the now unwelcome cargo.
Von Hernandez, global coordinator of Break Free from Plastics, explained that after China‘s decisive action on waste, there was widespread fear that countries like Vietnam, the Philippines, Malaysia, and to an extent India might become a victim of waste dumping by the EU and US. ―Vietnam's ban on plastic and paper waste imports means that such garbage might be diverted to other poor nations,‖ he said.
In 2016, Chinese recyclers imported a whopping 7.3 million metric tons, worth 18 billion US dollars, of waste metal, plastics and paper, mostly from developed countries. In the last five years, the UK has exported over
2.7 million tons of plastic waste to the Chinese mainland and Hong Kong-based recyclers. And the US exported 1.42 million tons of plastics worth 495 million US dollars to China in 2016.
The Chinese mainland banned such waste from the West earlier this year, primarily to protect its environment and control widespread violations. In a note to the WTO, China maintained ―that large amounts of dirty wastes or even hazardous wastes are mixed in the solid waste that can be used as raw materials. This polluted China's environment seriously."
Chinese environmental and customs officials concerned over the massive dumping of banned scraps initiated Operation Green Fence in 2013 that found violations on a large scale. In recent months, Vietnam has witnessed similar violations. The Customs Risk Management Department reported that firms in Binh Dinh Province illegally imported 44,000 tons of plastic waste in Hai Phong.
Hernandez said that for developed countries, it‘s economical to dump waste in developing countries. ―It has become imperative for developing countries to take a stand against the waste dumping jointly, or it will have a major consequence on the environment,‖ he added.
The EU has announced the recycling of all plastic packaging waste and set a deadline to reduce plastic bag use by 90 percent with implementation deadlines set for 2030 and 2026, respectively.
[CGTN]
Port development Australia: Adelaide shipping channel dredging to go ahead despite
environmental concerns
29/05/2018
The South Australian Government has today approved a plan to widen the Port Adelaide shipping channel and dump the dredged waste in Gulf St Vincent.
The controversial Flinders Ports plan involves removing 1.5 million cubic metres of material from the Outer Harbor shipping channel before being disposed 30 kilometres offshore.
Planning Minister Stephan Knoll said he was "extremely comfortable" that the project was environmentally safe. "Ships are being built larger and larger and there's a real risk that if we don't widen our channels that we will not be able to accept larger cruise ships and larger export ships," Mr Knoll said.
The plan was met with resistance from fishers and environmental groups, who said it would harm surrounding marine life. Flinders Ports dredged 3 million cubic metres of silt from the Port River in 2005, resulting in a dredge plume off Adelaide, killing about 1,600 hectares of seagrass.
Environmental concerns continue
In a statement published on its website today, the Environment Protection Authority said the latest proposal would result in "significantly less than 250ha" of die-off.
Greens MLC Mark Parnell said it was too much. "We're putting less sewage out to sea, we're trying to capture stormwater before it goes out to sea because they destroy seagrass — now we're deliberately destroying 250 hectares of seagrass," Mr Parnell said.
Mr Knoll said "almost all of the concerns have been addressed" and no fauna would be lost. "I'm extremely comfortable that this is environmentally safe, that this can be done in an appropriate manner, that there is appropriate monitoring to make sure that we learn the mistakes of 2005 so we can really get back to unlocking these great economic benefits that will result as a cause of this project," he said.
Port Adelaide Enfield Mayor Gary Johanson pushed for the silt to be dumped on land at Gillman while running as an SA Best candidate for Port Adelaide in the March state election. He said he was devastated by the decision.
[ABC Online]
Port development South Africa: Development bank approves $200 million loan for Durban
container berth project
29/05/2018
The New Development Bank (NDB), established by Brazil, Russia, India, China and South Africa in 2014, has approved a $200million (R2.5bn) loan for the Durban container terminal berth reconstruction project.
The Durban container terminal berth reconstruction project is aimed at helping transport parastatal Transnet to enhance capacity of its port in Durban. This is being done through the rehabilitation of its container terminal berths and the upgrading of port infrastructure to provide additional slots for larger vessels.
[Independent Online]
Port development Brazil: Petrocity Portos awards $566 million contract to Odebrecht for construction of multipurpose port
29/05/2018
Odebrecht Engineering & Construction (OEC) has signed a contract with Petrocity Portos to build a multipurpose port in the state of Espírito Santo.
Artist rendering of the new multipurpose port in the state of Espírito Santo. Credit: Arcdia Engineering The work, which is estimated to cost $566m, will be part of the biggest contract signed by the company following the so-called Clean Hands Operation, which was implemented to counter corruption in Brazil.
OEC‘s contract will involve the overall port study, the main project and its construction. Petrocity was set up in 2013 by Brazilian and foreign investors, with finance coming from an Arab fund.
São Mateus Port Complex, which is to be built in the north of the state, will fall under the control of the Sudene region. It will cover an area of 1.5 million square metres and have 5,200 metres of quay. Of this, 1,800 metres will be of linear quay, with the rest constituted by two piers with alongside draft of 16 metres. It will handle containers, ro-ro, ornamental rock and offshore service vessels.
[Port Strategy]
Port development Uruguay: Port master plan due mid-2018
29/05/2018 Víctor Rossi, Uruguay‘s Transport & Public Works Minister, has revealed that a new Master Plan for the country's ports, covering 2018–2035, will be introduced by mid-year.
The plan, which is being drawn up by the Administración Nacional de Puertos (ANP) in association with the port community, will include new operating and commercial areas, as well as contemplating the overall expansion of the existing system to meet future needs.
The plan is being financed by the Corporacion Andina de Fomento – Banco de Desarrollo de América Latina, which contracted Spain‘s Valenciaport as consultants.
[Port Strategy]
Oil & gas exploration Brazil: Environmental agency denies Total license to drill Amazon
basin for fourth time
29/05/2018
By Jake Spring
Brazilian environmental agency Ibama on Tuesday rejected French oil company Total SA‘s application for an environmental license to drill in the ecologically sensitive Foz do Amazonas basin.
It is the fourth time that Ibama has rejected the application and requested additional information. Ibama said when denying the application for a third time in August that it would give Total one last chance to clarify the application before suspending the process. On Tuesday, however, it said it would seek more information as ―new facts‖ had come to light.
Total SA did not immediately respond to request for comment.
An expedition last month by environmental activists Greenpeace documented coral in the area where Total plans to drill, following the earlier discovery of a massive coral reef nearby.
The agency‘s refusals to accept Total‘s environmental impact study has held up the company‘s quest to explore the offshore basin for more than four years. The basin could contain up to 14 billion barrels of petroleum, or more than the entire proven reserves in the Gulf of Mexico, according to geologists.
[Reuters]
Dry bulk shipping Brazil: Dutch support for soy transport mega-project is posing major risk
to Amazon
29/05/2018 By Karlijn Kuijpers For more than a decade, the Netherlands has vigorously supported Brazil in development of the Northern Corridor, a mega-infrastructure transportation initiative that would transport soy and other commodities from Matto Grosso state via new road, rail and port projects to the Tapajós River in Pará state, then downriver to the Amazon, and to the Atlantic for export.
Although the Netherlands government publically says these projects will be constructed in a ―sustainable‖ manner and reduce fuel used in transport, analysts — and even the Dutch government itself — say that the new harbors, roads and railroads would contribute significantly to deforestation, land grabbing and rural violence by bringing many new loggers, cattle ranchers, soy growers, and settlers into the Amazon region.
Internal documents from the Dutch Ministry of Foreign Affairs, obtained through a FOIA request, show that the ministry is fully aware of these negative environmental and social impacts, but sees them as a mere public relations, or ―reputation problem.‖
Internal memos uncovered by Platform Investico, a Dutch collective of investigative journalists, alerted the public to Dutch participation in Brazil‘s Amazon transportation infrastructure initiative and the
environmental and social harm it could do. In response to these revelations, the Dutch Labor Party has requested a debate in parliament about Dutch involvement in the Northern Corridor.
The complete story with the results of the investigation conducted by Platform Investico was published in Mongabay on 29 May 2018.
[Mongabay]
Container shipping: CMA CGM introduces bunker surcharge and reports net loss of
US$77million for first quarter 2018
29/05/2018 French container line CMA CGM has become the third carrier to implement "emergency bunker recovery measures" after 2M Alliance members Maersk Line and Mediterranean Shipping Company (MSC) said they will begin charging an "emergency bunker surcharge" from June 1.
Group CEO of CMA CGM, Rodolphe Saade, announced the surcharge along with first quarter results, which saw revenue surge. Despite that increase in demand, fuel costs resulted in a US$77 million net loss for the quarter.
Due to the significant increase in bunker prices since the beginning of the year and to keep ensuring the highest quality of service to its customers, CMA CGM Group will recover bunker costs through its bunker related surcharges, the shipping line said.
The surcharges of $55 per TEU for dry cargo and $85 per TEU reefer will be applied to all cargo on all worldwide trades. The surcharges will start June 1 (date of loading) for non-FMC trades, and from July 1 (date of loading) for Taiwan and FMC trades.
"The shipping industry is experiencing sustained growth but was hit in the first quarter by the sharp increase in bunker prices," Mr Saade said. "In this environment, CMA CGM succeeded in recording a strong increase both in volumes transported and in revenue, while maintaining a positive core EBIT margin, thus demonstrating once again the relevance of our strategy. Volumes should remain high throughout the year."
Revenue rose 17 per cent to $5.41 billion while container volume grew 15 per cent to 4.95 million TEU in the first quarter compared to the same period last year.
In its outlook for the year, CMA CGM said delivery of new vessels will significantly decrease in the second half that would lead to an improvement in the market environment, although bunker costs and the impact of exchange rates would be a factor.
[Hong Kong Shipping Gazette]
Shipbuilding South Korea: Government to provide financial support for hard-hit shipbuilding areas
29/05/2018 By Cynthia Kim South Korean Finance Minister Kim Dong-yeon said on Tuesday the government will designate five key shipbuilding centres on the country‘s south coast as ―industry crisis‖ zones eligible for economic support.
The areas include Dong-gu in the city of Ulsan, Geoje-si of Kyong-nam province and Jinhae-gu of Changwon, as well as Tongyeong and Mokpo in the southwest coast. These areas are home to heavy shipping and shipbuilding companies and have struggled with high unemployment in recent years.
A copy of the minister‘s speech released from the ministry showed the government would provide financial and tax incentives for suppliers of shipbuilding companies in the designated regions. The government will also provide job training to people made unemployed through recent restructuring to boost their re-hiring or full-time employment prospects.
―Support will be made on product enhancement efforts for shipbuilding and auto industries in the designated regions, and help will also go to developing tourism infrastructure using local attractions,‖ Kim told other ministers in a policy meeting in Seoul.
Daewoo shipyard in Geoje in South Gyeongsang Province, South Korea. Credit: Panwasin Seemala / Shutterstock.com South Korea‘s shipbuilding and shipping companies have undergone massive restructuring in recent years amid a slowdown in global demand and rising competition from China. These heavy industries, which helped propel South Korea‘s growth in past decades, have cut tens of thousands of jobs, hurting local economies and households.
The statement did not provide details on the timing or amounts of public support to be allocated. [Reuters]
Latin America and the Caribbean: Single free trade agreement would reap $11 billion windfall
29/05/2018 Latin America and the Caribbean could add an additional $11 billion in annual trade flows by blending 33 separate agreements into a single regional free trade bloc, according to a study by the Inter-American Development Bank.
The study Connecting the Dots: A Road Map for a Better Integration of Latin America and the Caribbean 4charts a course for the region to attain the elusive goal of regional integration, 4 The Spanish and Portuguese versions of the IDB study can be downloaded here noting that Argentina, Mexico and Brazil would be the key players in any meaningful integration effort.
Trade in the region is a complicated patchwork of preferential trade agreements (PTAs), anchored by its two main blocs, the Pacific Alliance and MERCOSUR. The study notes that while these agreements have increased intraregional trade by 64 percent on average since their inception, these gains fell well short of what a $5 trillion market could offer. More worryingly, they have proved inadequate at making the region more competitive internationally.
The report offers a roadmap toward maximizing these gains by promoting a path of convergence among the existing PTAs which would eventually lead to a Latin American and Caribbean Free Trade Agreement (LAC-FTA).
―Convergence is the way to strengthen the economic relevance of the preferential trade agreements in our region,‖ said Antoni Estevadeordal, manager of the IDB‘s Trade and Integration Sector. ―Together, they could help improve the region‘s competitiveness abroad, particularly in this increasingly challenging trade environment. Alone, and without a critical mass, these agreements face irrelevancy or even a slow death in the face of major deals already in place in Europe, Asia and North America.‖
The report looks at the trade impacts of a LAC-FTA under various international scenarios. In the prevailing environment, the agreement would produce average gains of 9 percent for intraregional trade in intermediate goods used in exports from Latin America and the Caribbean, which would bolster the region‘s underdeveloped value chains.
Driven mostly by tariff elimination, a LAC-FTA would also increase intraregional trade in all goods by an average 3.5 percent or an additional $11.3 billion, based on 2017 flows. The boost to specific exports would range from 1 percent in mining in the Andean countries to 8 percent in manufacturing in Mexico and 21 percent in agriculture in Central America.
In a scenario of increasing trade fictions, the report argues that a regionwide agreement could prove to be an effective insurance policy against market losses. ―A free trade agreement of this sort could mitigate the negative impacts of global trade frictions on LAC exports by as much as 40 percent,‖ added Estevadeordal.
The report acknowledges that this type of strategy is likely to be met with skepticism, given the difficulties faced by previous attempts to reach a single, regional free trade deal. It argues, however, that nearly 90 percent of intraregional trade is already duty-free, thus providing a solid platform for building a regional free trade area. Moreover, the region has never been closer to political consensus around the benefits of trade and integration.
Drawing on the lessons of more than a quarter of a century of integration initiatives, the report recommends first creating a free trade zone focused on goods and services, with other issues such as labor, intellectual property and the environment to be added later. It should also include a chapter on trade facilitation, which would include should move beyond mere customs-related measures to include mechanisms that reduce transportation and transaction costs.
Source: IDB Argentina, Brazil and Mexico are key players
According to the report, a critical mass of countries would be required to get the integration process moving. Argentina, Brazil and Mexico are uniquely positioned to bring together the region‘s largest subregional blocs, the Pacific Alliance and MERCOSUR, whose combined $4.3-trillion market accounts for 81 percent of the region‘s GDP.
Governments could opt for a cautious, step-by-step approach that extends cumulation of rules of origin and fills in gaps in relationships where needed. Despite the political advantages of such an approach, the study argues for a more aggressive undertaking, as the complexities of multiple product rules and intraregional PTAs will remain.
―If governments in the region are really committed to strengthening both the political and the economic cases for integration,‖ said IDB trade research specialist and the study‘s coordinator, Mauricio Moreira. ―Time, unfortunately, is not on their side.‖
[IDB]
Latin America and the Caribbean: Container throughput in region’s ports rose 6.1% in 2017
28/05/2018 The throughput of containerized cargo in the ports of Latin America and the Caribbean rose around 6.1% in 2017, according to data released today by the Economic Commission for Latin America and the Caribbean (ECLAC) in its Maritime and Logistics Profile.
This average figure points to a rebound versus the last three years, when low or negative growth rates in container throughput were recorded at a regional level.
According to the Ranking of container port throughput in Latin America and the Caribbean 2017 published by ECLAC, this data confirms the improvement in Latin America and the Caribbean‘s foreign trade in 2017 as well as the heterogeneity of growth rates in activity among the region‘s ports.
The countries whose container port terminals contributed the most to the change in cargo volume versus the previous year are (from greatest to smallest, according to their relative change): the Dominican Republic (24.0%), Colombia (13.3%), Mexico (12.2%), Panama (10.1%) and Brazil (5.0%). They are followed by, with a smaller contribution to the rise in regional volume but notable relative changes in terms of individual performance: Honduras (9.8%), Peru (9.4%), Argentina (6.7%), Uruguay (5.8%), Chile (5.7%) and Ecuador (4.7%). Finally, those countries that also had a significant performance on an individual level, but marginal participation in the regional volume variation, are: Suriname (13.9%), Grenada (11.6%) and Nicaragua (9.5%).
Latin America and the Caribbean top 15 container ports 2017 [in teu]
Source: ECLAC: Ranking of container port throughput in Latin America and the Caribbean 2017 [May 2018]
The total volume of activity in 2017 reached approximately 50.6 million TEU (the standard unit of measurement, equivalent to a container of a length of 20 feet, or 6.25 meters, meaning it is a standard-sized metallic box that can be easily transferred between different modes of transportation, such as ships, trains and trucks). The first 40 ports in the ranking represent a little more than 87% (or 44.0 million TEU) of this type of cargo operations in the region (a similar percentage to the previous year). The 100 ports that follow move the remaining 13% (6.6 million TEU), the Economic Commission for Latin America and the Caribbean (ECLAC) indicates.
It adds that the region‘s top 10 ports capture 48.2% of cargo in containers in an aggregate manner (a percentage slightly higher than that of the previous year, which was 47.4%). The change in the traffic handled at the top 10 was 7.9%, which was above the regional variation (in 2016, the variation was negative, at -4.0%). According to ECLAC, container port traffic in 2017 also experienced a significant improvement on a global level, thanks to a rebound in international trade. According to estimates published by Alphaliner, the top 110 container ports in the world saw their volume rise 6.1% on average in 2017, meaning that in aggregate terms they reached 600 million TEU (compared with the 565 million TEU notched in 2016). Of these 110 ports, 98 saw gains in their volume while only 12 reported losses.
As in past editions of the ranking, the data compiled by ECLAC shows great heterogeneity in the behavior of port throughput, both at a subregional level as well as by country. In 2017, the East Coast of South America (ECSA) recorded increased activity at container terminals (5.3%), as measured by volume, which compensated for the decline seen in 2016 (-2.8%), thanks to what occurred, in relative terms, in the ports of Argentina, Brazil and Uruguay. Meanwhile, the West Coast (WCSA) continued on an upward trend since activity rose again (6.4%), beating the pace of the previous year (3.7%), due to the positive evolution of port terminals in Peru, Chile, Ecuador and Colombia.
Meanwhile, on both coasts of Central America (including Mexico) – the East Coast (ECCA) and West Coast (WCCA) – container traffic experienced positive growth (12.6% on the ECCA and 4.8% on the WCCA), which reversed what occurred in 2016 (when the declines were -1.2% and -1.3%, respectively). In the ECCA, there were notably higher levels of activity in the ports of Panama, Mexico and Honduras, while in the WCCA, greater port activity was seen in Mexico, Costa Rica, Nicaragua and Honduras.
Finally, in the Caribbean and on the North Coast of South America (NCSA), container throughput in port terminals was dissimilar. On the one hand, in the Caribbean it fell again (-1.1% versus -2.5% in 2016), whereas on the NCSA a significant improvement was seen in comparison with 2016 (11.4% versus just 0.4% growth in 2016). In the Caribbean, the rise in container traffic was notable in the ports of the Dominican Republic, Grenada and, to a lesser extent, Antigua and Barbuda and Martinique, while on the NCSA the most marked increases were seen in Colombia and Suriname.
[ECLAC]
Port development Somaliland: Construction of new facilities at Berbera planned to start in
September
28/05/2018
The government of Somaliland is preparing to start construction of new facilities at the port of Berbera in the wake of forming a tripartite port development agreement with the United Arab Emirates (UAE) and Ethiopia.
During a visit to the port of Berbera - 154 kilometres from the capital Hargeisa - DP World Group head of port operations Ali Ismail Mohamed told Ethiopian journalists: "Construction of the first phase begins in September and bids will be awarded to potential developers."
The port project, in which DP World holds a 51 per cent share, Somaliland 30 per cent and Ethiopia 19 per cent, is expected to be finalised by 2020. The port facility, which currently has the capacity to handle 150,000 TEU, is expected to expand to handle one million TEU.
The Somaliland Port Authority has already consolidated port management operations and let DP World acquire positions in the management and operational activities at the existing port facilities. The US$442 million port, according to Mr Mohamed, will be developed in two phases.
During the first phase of development, a 430-metre berth will be constructed to accommodate two vessels at a time. The overall expansion project will deliver a total of 800 metres of berth that can dock five ships simultaneously. The existing port facility accommodates five major vessels on a 650-metre long berth.
The project, however, is regarded as a threat by the Somalia and Djiboutian authorities. Somalia opposed the project claiming it has violated its sovereignty while Djibouti didn't like Berbera port becoming a potential rival as it takes a considerable share of volume from what it currently enjoys.
[Hong Kong Shipping Gazette]
Port development UK: Port of Cromarty Firth seeking contractors for £25 million project
28/05/2018
By Stan Arnaud
The Port of Cromarty Firth (PCF) is seeking contractors for a £25million development at its Invergordon facilities, which it says could create almost 200 local jobs.
The Port of Cromarty Firth's Invergordon service base. Credit: The Press and Journal
The project will see a 700 foot ―multi-user‖ quayside, capable of accommodating a new generation of huge cruise liners built and a 27-acre laydown area developed.
Following a pre-tender meeting last month, the trust port has opened a pre-qualification questionnaire to find companies interested in bidding for the construction work on what is the fourth phase of its recent expansion.
It is estimated the new berth could support up to 165 full time jobs from the growth in cruise visits, plus a further 180 across the Highlands, while the additional laydown area is expected to lead to around 27 posts supporting renewable energy projects. Construction work will create about 16 jobs.
[Energy Voice]
Terminal operators Costa Rica: APM Terminals Moin remains on schedule for completion in
February 2019
28/05/2018 By Aiswarya Lakshmi With this latest delivery of cranes, the APM Terminals Moin at the Caribbean coast remains on schedule for completion in February 2019, when it is expected to raise commerce in Costa Rica by 23% according to Qbis Socioeconomic Impact Study.
Photo: APM Terminals
This second delivery of Ship-to-Shore and Electric Rubber-Tire Gantry Cranes (ERTGs) to APM Terminals Moin, Costa Rica brings the total on site to six and 23 respectively. The commissioning of the equipment was completed this week.
―APM Terminals Moin is proud to celebrate this milestone, which puts Costa Rica on the logistics map and sends the right signal to stakeholders about our commitment to the country´s trade,‖ said Kenneth Waugh, Managing Director of APM Terminals Moin.
―These cranes represent a significant improvement in the competitiveness of the nation. They will boost the economy, moving it from the 139th to the number one position in the region, according to the World Bank connectivity ranking.‖
As part of a $1 billion investment, APM Terminals has built an island in the Caribbean Sea just off the coast of Costa Rica near Puerto Limon. It is strategically located to promote trade and operate as a hub. This 100% owned greenfield development is part of the 30 years concession to operate the terminal. The current phase, due for completion in February 2019 is the second of three phases.
The company is currently recruiting and training local talent through different programs in the community. To date, more than 200 employees have been recruited. They are being trained in a new Training Centre in Limon.
―Our partnership with the National Learning Institute has been key to recruiting and certifying the right talent,‖ explained Lisbeth Thomas, Head of Human Resources at APM Terminals Moin. ―So far, this includes three female crane operators who have demonstrated a high level of skill.‖
[MarineLink]
Terminal operators Peru: DP World acquires logistics firm for $315 million
28/05/2018 Port operator DP World has acquired a 100 percent stake in a Peruvian logistics provider for $315.7 million, the company announced on Monday.
The deal to acquire Cosmos Agencia Maritima S.A.C. (CAM) also includes 100 percent of the shares in Triton Transports and Neptunia and 50 percent in Terminales Portuarios Euroandinos S.A. in the port of Paita, the second largest container terminal in Peru.
The transaction expands DP World‘s existing presence in Peru by adding another container terminal to the existing one in Pallao, as well as logistics services such as warehousing, distribution and cargo handling.
[Arabian Business]
Multimodal transport India: Country must invest in connectivity, not in more ports
28/05/2018 India needs more investments in multimodal connectivity to existing ports than new deep-sea ports, the World Bank has said, flagging concerns on the country‘s ambitious plan to build new ports as part of the Sagarmala programme.
―There is enough port capacity available prime facie; what is not available is the multimodal connectivity to the ports,‖ said Biju Ninan Oommen, Senior Port and Maritime Transport Specialist at the World Bank.
―What India needs is investment in the land side in multi-modal logistics than more deep-sea ports at this point,‖ Oommen said at a recent Indo-Dutch Forum on Smart and Sustainable Port-led Development.
The 12 major ports run by the Central government have a capacity to handle 1,359 million tonnes (mt) of cargo a year. The dozen ports handled a combined 679.35 mt of cargo in the year to March 2018, operating at a capacity utilisation of 50 per cent. Several new ports built with private funds have added to the capacity and many are struggling for cargo as growth remains subdued due to a decade of weak global trade.
The Shipping Ministry has identified six locations to build new ports — Vadhavan (Maharashtra), Enayam (Tamil Nadu), Tajpur (West Bengal), Paradip Outer Harbour (Odisha), Sirkazhi (Tamil Nadu) and Belekeri (Karnataka).
―The techno-economic feasibility reports have been prepared for five locations and is under preparation for Tajpur. Detailed project reports are under preparation for Vadhavan, Enayam and Paradip Outer Harbour Projects. In-principle Cabinet approval has been obtained for a transshipment port at Enayam,‖ a Shipping Ministry official said.
Sagarmala project
The government plans to investments to expand port capacity by 884 mt by 2035 as part of the ambitious Sagarmala programme, according to the Shipping Ministry. The plan includes 39 road connectivity projects for improving and strengthening the connectivity of major ports to national and state highways, the Ministry said.
Like the World Bank, concerns had been expressed by global port operators such as DP World Ltd and PSA International Pte Ltd, which run multiple facilities in India. In February, Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said the country ―needed more cargo and fewer ports‖.
―India already has a lot of economic activity in the hinterland; it‘s just that they are not well connected,‖ Tan Chong Meng, Group CEO, PSA International Pte Ltd, had said during a visit to Mumbai in February.
The opening of the dedicated freight corridor (DFC) would partially offset these concerns, but that is still a few years away, according to a port industry executive.
[The Hindu Business Line]
Marine pollution: The world’s dirtiest fuel will be banned from Arctic shipping
28/05/2018 The Clean Arctic Alliance has good news to share regarding real progress towards a ban on the use and carriage of heavy fuel oil (HFO) as marine fuel in Arctic waters.
In mid-April, at the HQ of the International Maritime Organization (IMO), the Marine Environment Protection Committee (MEPC 72) agreed to move forward on developing an Arctic HFO ban. The Clean Arctic Alliance was there in force, with an international delegation from Canada, Denmark, Germany, Ireland, Italy, Netherlands, Norway, Russia, Spain, Sweden, Belgium, US – including Alaska, and the UK.
This is exactly what the Clean Arctic Alliance is campaigning for – and while there‘s much to celebrate, there‘s still a long road to getting the ban in place. Public support – through initiatives such as the Arctic Commitment – have been instrumental in raising awareness of the urgent need for an Arctic HFO ban, which will help protect both the marine environment, and the communities who depend upon it. The global community is beginning to regard an Arctic HFO ban as being the obvious, and only way forward.
[Clean Arctic Alliance]
Maritime safety: IMO authorizes new Bering Sea routing
28/05/2018 The IMO adopted a joint proposal by the U.S. and Russia on Friday for a series of connected vessel routes and precautionary areas in adjacent Bering Sea and Arctic waters. The IMO‘s Navigation, Communications and Search and Rescue Sub-Committee gave final authorization during an eight-day meeting in London.
The terminal will be a key logistics hub for the Yamal LNG project as well as future Arctic LNG production projects. From there LNG will be transferred from special ice-class carriers to conventional vessels before heading to Asia-Pacific customers.
Credit: Audubon Alaska
The eastern Bering Sea is a relatively shallow body of water with average depths ranging from six to 75 meters. These shallow depths offer minimal under keel clearances compared to the waters surrounding the western Aleutian Islands and North Pacific Ocean where offshore water depths are well over 900 meters in depth. The shallow depths of the eastern Bering Sea are especially problematic for mariners because some nautical charts for this area are based on hydrographic data obtained over 100 years ago with a leadline at spacing intervals in excess of a mile apart.
The new measures are a culmination of years of analysis and consultation, informed by the U.S. Coast Guard‘s Bering Strait Port Access Route Study. The new shipping lanes will help vessels steer clear of treacherous sea features in the Bering Sea and Bering Strait areas. Areas to be Avoided have been nominated which will ensure that ships bypass culturally and ecologically important coastal waters and, in the event of a vessel power failure, provide valuable time for assistance to arrive.
These protective zones will be established around Nunivak Island, St. Lawrence Island and King Island. While all of the measures are voluntary for domestic and international ships, there is a high rate of compliance with IMO-sanctioned routing measures such as these. Studies have found compliance rates for recommended routes and Areas to be Avoided to be up to 96 percent and 97 percent, respectively.
The new protections are expected to come into effect early next year - ahead of what is expected to be a 100 to 500 percent increase in vessel transit by 2025.
[Maritime Executive]
PROFE SSIONAL MEMBERSHIP
Advance your career by gaining Professional Recognition. Professional recognition is a visible mark of quality, competence and commitment, and can give you a significant advantage in today‘s competitive environment. All who have the relevant qualifications and the required level of experience can apply for Professional Membership of IAMSP. The organization offers independent validation and integrity. Each grade of membership reflects an individual‘s professional training, experience and qualifications. You can apply for Student Membership as per following :
Fellow (FIAMSP) To be elected as a fellow, the candidate must satisfy the council that he/she: Has held for at least eight (8) years consecutively a high position of responsibility in shipping or related business. Has distinguished himself/herself in shipping practice. Is a principal in a firm or a director of a company in the business or profession. Members in this grade are entitle to use the initials FIAMSP After their names.
Full Member (FMIAMSP) Individuals holding an internationally recognised marine qualification, or who can prove that they have practiced on a full time basis for a minimum of five (5) years as a consultant or marine surveyor. Individuals who, by producing written reports can demonstrate that they have practiced marine surveying or consultancy for at least five (5) years. Individuals whose qualifications or experience shall be considered appropriate by the Professional Assessment Committee. Members may use the initials FMIAMSP after their names.
Associate Member (AMIAMSP) Associate Membership shall be open to any person, partnership, company, firm or other corporate that does not own a Ship but is engaged in ship operating or ship management. Associate Members can nominate one (1) person to represent them in the Association. Associate Members are entitled to attend General Meetings and to participate in discussion at such meetings but shall not vote or stand for election to the Board of Directors.
Technician (TechIAMSP) Individuals holding a recognised qualification, for example Inspector level 2 or higher (NACE, FROSIO, ICorr), RMCI and IRMII, NDT Technicians (CSWIP), for example gauging personnel, divers or other surveyors with at least three years full time practical experience in a marine related field. Technician Members may use the designation TIAMSP after their names.
Affiliate (AFFIAMSP) Graduates who do not meet the criteria for Full or Associate Membership and are continuing to train and gain experience prior to applying for Associate Membership
Student (SIAMSP) Individuals who are enrolled in training programs related to the maritime or shipping will be appointed as student members of the Association for the duration of their course.
LAST MEMBERSHIP
Fellow (FIAMSP)
Capt. Skiadas Athanasios M. Robinson Mark Mr. Dekkers Walter
Greece United Kingdom Netherlands
Full Member (FMIAMSP)
Capt. Mushtaq Kamil Al Capt. Jasim Aqeel M. Subbiah Thiyagarajah Attabi
Iraq Iraq Malaysia
Affiliate (AFFIAMSP)
M. Kirton Christopher M. Hubert Louis-philippe Mrs. HELENA ISABEL CAMPOS LANÇA PALMA
Singapore France Portugal
UPCOMING EVENTS SUMMARY
June FUTURE FUELS FOR 2020 COMPLIANCE SEMINAR 13 The Hatton,London
June 3RD ANNUAL PORTS AND TERMINALS INSURANCE SEMINAR 13 The Hallam (Cavendish Venues), London
June 3RD ANNUAL PORTS AND TERMINALS INSURANCE SEMINAR 13 The Hallam (Cavendish Venues),London
June MEETING THE COMMERCIAL, INSURANCE AND LEGAL CHALLENGES OF TODAY'S 26 SALVAGE AND WRECK REMOVAL OPERATIONS
Novotel Clarke Quay, Singapore
June GLOBAL PORT & MARINE OPERATIONS - 11TH INTERNATIONAL HARBOUR MASTERS 28 CONGRESS
Lancaster Hotel, London
September MEETING THE COMMERCIAL, INSURANCE AND LEGAL CHALLENGES OF TODAY'S 26 SALVAGE AND WRECK REMOVAL OPERATIONS
Novotel Clarke Quay, Singapore
September GLOBAL LINER SHIPPING ASIA 26 Novotel Clarke Quay, Singapore
February 2019 12th Arctic Shipping Summit – Montreal 21 Montreal - venue TBC