It comes as no surprise that U.S. importers have been experiencing a tremendous increase in cost of ocean freight. Ocean freight rates have been steadily increasing over the past several months. And, the reality is, there is no end in sight to these skyrocketing costs.

 

Global pandemics have global consequences, and the consequences created by the Coronavirus disease (COVID-19) global pandemic certainly bears that out. In the first quarter of 2020, China factories were forced to close down in an attempt to slow the spread of the Coronavirus. When those factories finally re-opened in the early part of the second quarter of 2020, order backlogs were their first priority.

Next came the need to fill new orders, which were coming in it at record levels. This dynamic created the first part of the “Perfect Storm.” With the worldwide lockdowns in 2020 as a result of COVID-19, a new dynamic was created.

People were forced to work from their homes and many still are and will be for quite some time. This phenomenon created a significant increase in the utilization of online shopping networks, to order merchandise they would normally pick up at a retail store. That was coupled with the fear of shortages of everyday necessities, which then created even more havoc in U.S. consumers’ buying trends.

Demand outweighed supply and that trend is continuing.

Fast forward to where we are today, and we not only see continually increasing ocean shipping costs, but we are now also experiencing major delays in getting products from Southeast Asia to North America. The main reason behind these delays is the lack of space availability on ocean carrier’s vessels, which is exacerbated by a shortage of available ocean containers to meet the importers’ shipping demands. In addition, with limited workforces at several U.S. ports, many ships are anchored offshore on the West Coast waiting for births to be unloaded. Recent estimates claimed that over 60 ships were waiting for their turn to unload their cargo at several West Coast Ports.

 

Source: foodlogistics


Cyprus introduced tax cuts in January to incentivise shipping companies towards energy efficiency and use of alternative fuel, ultimately aiming for Green House Gases reduction. The measures are part of a wider debate juxtaposing international and local decarbonisation regulation.

 

Decarbonisation, the reduction of Green House Gases (GHG) in an effort to combat climate change, is considered by many as the shipping industry’s ultimate challenge for decades to come. Cyprus, an island state with a proud maritime history going back millennia, has recently taken actions which reveal it intends to play a lead role in shipping’s transition to a greener future.

BACKGROUND

Decarbonising shipping is a complicated task, with a projected cost of cost up to $1.65 trillion by 2050. It is set within the general context of the Paris Agreement, which aims for GHG emissions neutrality in the second half of the current century (though strictly speaking the Paris Agreement does not regulate shipping), and emissions targets provisionally introduced by the International Maritime Organization (IMO) to reduce C02 emissions 40% by 2030, and GHG emissions 50% by 2050.

Achieving these objectives is no easy task, and research suggests operational and efficiency measures will not suffice to meet the 50% reduction target by 2050. Alternative fuel then comes into play, such as Liquefied Natural Gas (LNG), Liquefied Petroleum Gas (LPG), methanol, biomethane, hydrogen and ammonia, as well as hybrid powering options such as batteries and wind-assisted propulsion (WAP). Clearly, shipping companies need to devise short to longer-term strategies factoring in CAPEX and OPEX, if they are to survive and thrive. Ultimately, what sets them on the path to transition is regulation, as admitted by various stakeholders in the industry and revealed by multiple surveys (for a detailed analysis of the interplay between decarbonisation and regulation please refer to our recent article on ‘Decarbonising Shipping: A Review of IMO and EU Regulation’).

However, shipping decarbonisation regulation is for the better part in nascent form, which brings uncertainty to shipping companies, hesitant to invest in new ships that may be rendered obsolete, or R&D which may be proven futile. Meanwhile, a debate is raging in the industry on whether regulation should be at IMO level exclusively, thus applying internationally, or should also be implemented at local level, such as that of the EU or individual countries. IMO regulation is thought of as slow to emerge, while local regulation is seen as creating an uneven playing field. Such local regulation includes the EU’s ongoing push to include shipping in the EU Emissions Trading System (ETS), a move that further divides the industry.

CYPRUS TAKES THE INITIATIVE

Cyprus features the 3rd largest merchant fleet in Europe and 11th largest fleet globally, along with the largest third-party ship management centre in the EU, managing 20% of the world’s fleet. As a member of the IMO Council since 1987, of the EU since 2004, and a signatory to over 25 merchant shipping bilateral agreements, Cyprus enjoys prominence in the shipping world. It came therefore as no surprise when the Cyprus Shipping Deputy Ministry took the initiative to organise a virtual international debate in December on the EU ETS push titled  ‘ETS in Shipping: Elixir or Threat to Sustainability?’, ahead of the EU Commission’s consultation.

The debate featured diverse stakeholders from the European Community Shipowners’ Associations (ECSA), the Cyprus Shipping Chamber (CSC), regulators’ representatives from the EU Commission and Parliament, as well as various NGOs. The CSC provisionally concluded that:

  • There was no certainty the EU ETS inclusion would reduce GHG beyond IMO’s regulations, while the EU system would lead to carbon leakage;
  • The EU ETS would undermine the viability of small to medium sized shipping enterprises; and
  • Any EU system introduced should be IMO compatible.

CYPRUS INTRODUCES TONNAGE TAX CUTS

Cyprus moved swiftly from words to regulatory actions in January, by introducing environmental incentives through cuts based on the tonnage tax system up to 30%  ‘for owners  of  Cyprus  and Community flagged ships that  use  mechanisms  for  the  environmental  preservation  of  the marine environment and the reduction of the effects of climate change’.

The incentives apply at three different levels: (i) the Energy Efficiency Design Index (EEDI); (ii) the IMO Data Collection System (DCS); and (iii) the use of alternative fuels.

The incentives are cumulative and subject to a 30% maximum, as well as to a ship not having been detained under Port State Control for environmental deficiencies, and/or not having violated any environmental regulation/EU Directives, and/or not having been in laid-up condition (warm or cold) during the calendar year the shipping company applied for the incentive. They apply from fiscal 2021 onwards.

DISCUSSION

With decarbonisation now firmly in the agenda of the global shipping community, Cyprus demonstrates, through dialogue and actions alike, it intends to play a lead role suitable to its eminent position in the maritime industry. The recently announced tax incentives are exactly that, a practical way to incentivise shipping companies to operate in a manner that protects the environment, and to invest in environmentally sustainable solutions through alternative fuel. The Cyprus government also expects such incentives may lead to increased competitiveness and growth through new green technologies coupled with job creation.

 

Source: legal500


The offshore wind business is booming around the world, and the US is no exception. As a result, vessel owners and the companies that contract them are looking for cost-competitive multi-purpose service operation vessels (SOVs) that not only meet their requirements in a cost-effective manner, but ships that are ‘future-proof,’ with environmentally friendly technologthat will enhance the performance and service life of their assets.

Wärtsilä Marine Business sales engineer newbuilds Blake Jackson says, “With wind energy now such big business in the US, owners and operators are taking a more strategic, long-term view of potential investments.

The next generation of vessels has to check all the boxes in terms of IMO emissions regulations and flexible designs, so they can take advantage of technological advances as and when they become available,” he explains.

In addition to the need to comply with evermore stringent emissions regulations, a trend towards longer charter agreements is also driving this increased need for flexibility.

“We’re seeing proposals for longer agreements, in the region of 15 years, so owners need to think ahead,” says Wärtsilä Marine Business account manager newbuilds George Franssen.

Financial considerations are another big factor, because funding is easier to obtain when lenders have the security of knowing the vessel has a profitable future beyond the end of the initial charter agreement.”

Working in collaboration with stakeholders including charterers, shipyards, third-party suppliers and operatorsWärtsilä has designed a USflagged, Jones Actcompliant hybrid multi-purpose SOV. When it began developing the design, the company also worked closely with leading classification societies, including DNV GL and ABS, which both provided valuable input into the design.

Using its ‘OPTI Design design methodology, the company has applied a data-driven approach that focused on the vessel’s propulsive efficiency, in order to optimise the balance between propeller, engine and hull.

Rather than simply adding a propulsion system to a finished vessel design, with this approach the two are designed simultaneously. Wärtsilä also applied a holistic approach, using computational fluid dynamics and other techniques to optimise the design of the vessel. “This means we can determine the effects of interactions between the propulsion unit and the vessel itself and use the information to deliver optimal efficiency, reduced costs and emissions and maximised performance,” Mr Jackson explains.

The propulsion concept adopted for the SOV uses Wärtsilä’s patented Low Loss Concept (LLC), an energy-efficient power distribution system for electric propulsion applications that has a high level of redundancy.

The design also integrates a range of Wärtsilä’s green systems and solutions, including shore-charging or ‘cold ironing’ as it is sometimes known, and a hybrid powertrain employing a containerised battery-on-board energy storage system. This allows for peak shaving, helping the vesselengines to run at optimal load, reducing emissions and maintenance costs. The design also includes space for the integration of potential future powerplant and fuel technology such as hydrogen fuel cells.

Two boat landings enhance the safety and efficiency of operations by providing dedicated safe-passage zones for technicians transferring to and from crew transfer vessels. Wärtsilä SmartDock, an automated system that enables consistent and repeatable docking further increases safety, improves operational performance and reduces fuel consumption and wear and tear. Owners can also benefit from Wärtsilä’s Smart Voyage Optimisation solutions to further improve fuel efficiency and safety.

To ensure safe operations in all sea conditions the multi-purpose SOV has a Wärtsilä dynamic positioning (DP) system that is fully integrated with the vessel’s propulsion system. This supports the use of the ship’s walktowork system, centrally located 3D motion-compensated gangway integrated into the structure of the vessel.

The vessel’s double-decked cargo space is designed to provide ample room for technicians, lifting equipment, parts storage and palletised and containerised cargo. The latter is stored in the dedicated upper deck, which can be fitted with an optional container-handling system.

The 76-m vessel can accommodate up to 60 crew and windfarm technicians and, as Mr Jackson explains, the need for comfort, physical distancing and flexibility in terms of the accommodation layout influenced the design significantly.

“The layout reduces common areas to provide more space in individual cabins, which can be configured for double occupancy if needed. This is another way in which the design allows for greater flexibility should the vessel’s operational profile or application change in the future,” he explained.

“The design also takes into account the need for crew members to maintain a safe distance from one another in logistics and workflows during situations such as the Covid-19 pandemic.”

Once a vessel is in operation, Wärtsilä can provide ongoing support through its lifecycle solutions, which maintain and optimise marine asset performance for their entire operational lifespan. This support can include, for example, guaranteed asset performance with mutually agreed performance targets based on specific business needs.

“We can support owners of this vessel with a comprehensive operation and maintenance agreement to ensure worry-free operation and avoid unexpected surprises related to maintenance costs,” Mr Franssen says.

“The design brings together our expertise in flexible fuel strategies, propulsion, automation, navigation, dynamic positioning and systems integration in a single fit-for-purpose and cost-effective package,” Mr Franssen tells OWJ.

Thanks to a comprehensive in-depth design process and close co-operation with key stakeholders, we have developed a design that brings operators everything they need and nothing that they don’t.”

“In addition to making it an efficient and futureproof multi-purpose SOV design, this leaner approach also enables the vessel to be built for a considerably lower cost than similar designs, without compromising on capabilities or performance, Mr Jackson concludes.

 

Source: rivieramm


As the nation continues to adapt to the evolving global pandemic, the tug, towboat and barge industry is playing a quiet but important role in the national response to the Covid-19 crisis.

For the past 10 months, through lockdowns and major economic shifts, vessels plying the inland and coastal waterways have kept working under strict health protocols, assisting ships arriving at U.S. ports and moving products throughout the inland river system that are keeping the national and global economy going.

Tidewater saw a brief bump in the movement of wood products used in the manufacture of paper products in April due to demands for toilet paper and paper towels. Tidewater Transportation & Terminals photo

For many companies, demand for their vessels has slipped, especially for energy-related products as the pandemic has depressed the worldwide demand for oil. Other barge lines that carry grain mostly for export have thrived. Overall, companies and their employees appear to have adapted well to the new health and sanitary operating rules which have helped avoid widespread Covid outbreaks and kept barge tows moving. Unlike other industries, major layoffs have been avoided.

All maritime companies play a role in the pandemic response in that they are important players in the global supply chain, moving all types of commodities that are crucial to the economy. It might not be obvious, but transporting these products keep refineries, energy plants and factories working, ships full of grain for export, and steel and wood flowing for construction. This keeps many Americans working and assures that products are available for consumers.

COVID-19 BUSINESS

Some companies have seen some business directly related to Covid-19 response, transporting materials used to make medical supplies, hand sanitizer, personal protection equipment, or guiding into port Navy hospital ships called to help in New York and Los Angeles.

Tidewater Transportation & Terminals, Vancouver, Wash., experienced a 5%-7% increase in movements of finished wood products in the Pacific Northwest in April over the same month in 2019, due to a surge in demand for toilet paper and paper towels, according to Geoff Doersler, dispatch and logistic manager. “That has since leveled out, and we’re now back to the status quo.”

American Commercial Barge Line, one of the nation’s largest barge operators, said it has transported more than 1.6 million gals. of denatured ethanol, a key ingredient for alcohol-based hand sanitizers, disinfectants, sprays, wipes and cleaners, along the inland river system since the pandemic began. The Jeffersonville, Ind., company said that several of its towboats took turns pushing barges of denatured ethanol along the Texas Gulf Coast and up the Mississippi and Ohio rivers before it was discharged and processed.

Tug companies along the East and West coasts have also assisted in the arrival and departure of two Navy hospital ships.

Tugs from New York-based McAllister Towing helped dock the USNS Comfort hospital ship when it arrived in New York City on March 30 to support the coronavirus response. Four Z-drive tractor tugs maneuvered the 900-foot Navy vessel into Manhattan’s Cruise Terminal at Pier 90 in the Hudson River.

Before departing New York after treating 180 patients during its month-long stay, the bunkering of the Comfort was handled by Baltimore’s Vane Brothers. “Vane’s bunkering of the Comfort illustrates that our mariners and the job they do were essential to the emergency response that the Comfort provided, as well as to commerce during normal times,” John Bowie, Vane’s New York-based general manager, said at the time.

On the West Coast, tugs from Foss Maritime Co. escorted the USNS Mercy into Los Angeles in late March, where the ship treated non-Covid patients in order to relieve pressure on local hospitals.

At the end of the year, Los Angeles requested that the ship return to help deal with a second Covid-19 outbreak, but the Mercy is currently undergoing extended maintenance at a shipyard in Portland, Ore, and the Navy says it won’t be available anytime soon.

Should a redeployment of the Mercy occur, Foss is ready to assist again, said Jeff Horst, vice president of sales and marketing at the Seattle-based company. He added that Foss also assisted the Mercy into Vigor’s shipyard on the Columbia River for repairs.

This assignment is one example of how maritime companies are helping during the pandemic.

“Our tugs have been assisting ships that we can only assume have been carrying needed supplies to first responders,” Horst said. “Given the volume over the past four months, breaking records for containership arrivals and ships at anchorage waiting to berth, the supply chain is full, and all the maritime community has a hand in being sure we continue operations and keep the supplies moving. Our crew protocols are strict and have proven effective in assuring a healthy workforce.”

Pandemic response has also forced many maritime companies to retool their services and business plans. At Crowley Maritime, Jacksonville, Fla., the company has adapted as their customers have adjusted to new market demands imposed by the pandemic.

“As customers changed, we’ve changed,” said David DeCamp, director of corporate communications. In addition to operating vessels, Crowley is a diversified supply-chain logistics company, serving government and commercial clients with an array of transportation services.

Through its different business units, Crowley has taken on more government and military work, supporting delivery of protective masks, PPE and emergency food deliveries, he said, working with companies in the U.S. and Central America that have retooled their production to make protective equipment.

In April, Crowley shipped a container of donated fresh produce from Puerto Rico to low-income families and community centers in the Hispanic community in New York City that were impacted by the pandemic. The container arrived on Crowley’s LNG-powered containership Taíno in Jacksonville and was then trucked to New York City for distribution.

In the early days of Covid-19, when public knowledge about the virus was just beginning to evolve, Crowley developed a new design and operating concept for a medical support barge. It’s a large deck barge that can be quickly deployed to provide emergency housing for about 500 people during Covid outbreaks. But demand for such a vessel has softened as Covid response has evolved over the past several months, DeCamp said, although the temporary conversion of barges for such medical purposes remains a “viable concept.”

The maritime community, which is considered an essential workforce, has made many operational changes and “done a tremendous job keeping commerce moving and the logistical supply chain viable amidst personal sacrifice,” added Cole Cosgrove, Crowley’s vice president of global ship management.

The next big challenge, he said, will be gaining priority access for the Covid vaccine for maritime workers.

“The challenges have been many — and some still to be resolved — but the maritime workforce remains resilient and continues to serve the worldwide need for goods transportation.”

 

Source: workboat


The crew change crisis is set to ramp back up once more, according to crewing firm Danica. Restrictive cross-border movement rules are being imposed again following the emergence of the new, more infectious UK and South African COVID-19 variants, causing airlines to cancel flights and ports to tighten rules on seafarer movement.

“I believe we may be heading for a new crew change crisis every bit as bad as last spring,” warned Henrik Jensen, managing director of Danica Crewing Services. “In response to the rapid increase in infections around the world, governments are imposing new or additional measures including travel restrictions. Although these measures are understandable in the circumstances, based on scientific evidence, and intended to provide protection for their populations, they also cause operational and logistical problems for crew changes.”

As an example, requirements for seafarers to take a COVID-19 test within a certain time period before travel (as mandated for entrance to Singapore and the U.S.) can be a challenge, depending upon the country of origin. The availability of testing capacity and quarantine accommodations can make compliance difficult.

While the IMO’s proposed crew change protocols give port states a helpful template for managing seafarer transits, Jensen says that local regulations are the real governing factor, and uniform international standards “may be a remote dream” – especially when some nations are facing an explosion of domestic cases. “We have seen that, when a country’s health service is at full stretch trying to cope with infected patients, then broad and strict restrictions are imposed quickly,” he said. “Sadly we have to realize that, when a country has a citizen dying every minute from Covid-19, then a handful of seafarers of foreign nationality left behind on a vessel are not a high priority for them.”

Compliance aside, the practical challenges created by the new COVID strains are very real. “The new, more infectious variants present a higher risk that a crew member may be infected on the way to the vessel and transfer the infection to his ship mates onboard,” Jensen said. “One or more COVID-19 infected patients on a vessel is a very serious situation as there is insufficient medical care available onboard to treat a serious case. It is very difficult to mitigate this risk and in some cases we have to abandon crew change plans if they involve a long transit or a high-risk area.”

 

Source: maritime-executive


Understanding the impacts of the COVID-19 disruption on maritime transport, response measures adopted and overall implications for the sector is key given the role of maritime transport as the backbone underpinning global supply chains, trade, and economic interdependency.  Any disruption to global maritime transportation networks can have far-reaching implications for a highly globalized world economy. The restrictions introduced in response to the pandemic have caused disruptions affecting ports, shipping, and supply chains. In this context, assessing impacts, managing risks, and building resilience in maritime transport are the new mantras of a post Covid-19 world.

Organized in collaboration with the United Nations Economic and Social Commission for Asia and the Pacific (UN-ESCAP) and the United Nations Economic and Social Commission for Western Asia (UN-ESCWA), the webinar aims at:

  • Raising awareness, among policy makers and industry players, about COVID-19 impacts, responses and good practices in crises management and resilience building.
  • Improving understanding of the COVID-19 impacts on the region’s maritime transport system.
  • Identifying relevant response measures taken to mitigate impacts and ascertaining potential good practices allowing for effective crises management and business continuity.
  • Building capacity to plan and prepare for future similar disruptions and future proofing the region’s maritime supply chain
  • Gathering input from participating stakeholders with a view to guidance material and tools that will be developed by UNCTAD in support sustainability and resilience building efforts.

The webinar is the second in a series of online regional capacity building activities carried out by UNCTAD under the maritime transport component of the UNDA project named “Transport and trade connectivity in the age of pandemics: Contactless, seamless, and collaborative UN solutions”. It draws upon the main findings of the updated UNCTAD’s assessment contained in the “COVID-19 and Maritime Transport: Impact and Responses”.

Key activities carried out by UNCTAD under this project include:

  • Research and extensive data compilation and analysis to help assess the impact of the COVID-19 disruption on the global and regional maritime transportation systems
  • Analysis and identification of relevant response measures introduced by varied stakeholders in the face of the COVID-19 disruption
  • Identification of good practices that allowed for effective management of the crisis and maintaining business continuity in the maritime supply chain
  • Development of guidance material and training to build capacity and upgrade skills with a view to maritime supply chain resilience-building.

UN-ESCAP and UN-ESCWA have been carrying out a number of activities at the regional level to evaluate the specific challenges and impacts, as well as to strengthen regional and sectoral collaboration in the crisis response and recovery policies.

 

Source: unctad


U.S. ports and terminal operators hope a last-ditch effort on Capitol Hill will send emergency funding their way as lawmakers put the final touches on the next COVID-19 relief package.

Such relief has so far eluded the maritime sector, which has been frustrated watching other transportation modes such as public transit and the airlines get billions of dollars from the previous two COVID-19 relief bills signed during the Trump administration.

“The port industry has yet to receive any relief in funding with regard to this COVID crisis,” testified Mario Cordero, executive director of the Port of Long Beach, California, before a House Transportation & Infrastructure subcommittee Tuesday.

“So if I could leave one thing with this subcommittee, we just want to have a percentile of relief that is so important.”

Negotiations on President Joe Biden’s $1.9 trillion relief package are ongoing, with committees within the U.S. House of Representatives expected to begin voting on the bill on Wednesday. A draft version of the proposal includes $30 billion for transit agencies, $14 billion for passenger airlines, $8 billion for airports and $1.5 billion for Amtrak, according to Reuters.

Cordero, who was at the hearing representing the American Association of Port Authorities (AAPA) as its chairman, asked lawmakers to consider funding the maritime sector through the Maritime Transportation System Emergency Relief Program (MTSERA), created as part of the National Defense Authorization Act of 2020. It authorizes the U.S. Maritime Administration to award grants due to emergencies, including the current pandemic.

Eligible recipients include vessel owners and operators, shipyards, and ports. Operating costs for which the relief funds can be used include cleaning, sanitization, personal protective equipment, fuel, debt payments, workforce retention and infrastructure repair.

“Funding MTSERA at $3.5 billion or more will begin to enable this industry to recover,” testified Lauren Brand, president of the National Association of Waterfront Employers, which represents marine terminal operators.

“Each of our members is a key leader in the movement of freight. They handle containers filled with consumer goods and manufacturing parts, bulk products needed to build roads, agriculture shipped overseas to feed other nations, export cars and heavy equipment that is made in the U.S., petroleum products needed to propel trucks, trains, planes and automobiles, and, yes, they handle thousands and thousands of boxes of PPE and equipment needed to fight COVID.”

Brand asserted that the shift by consumers from buying services to buying goods — a direct result of COVID-19 — has pushed the container supply chain to its limits. This has led to loaded containers dwelling on marine terminals for eight days in a system designed to store them for half that time. Containers normally stacked three-high are now having to stack five-high.

“A trucker is dispatched to pick up your container, which is now probably at the bottom of that stack, requiring the stevedore to move four other containers to retrieve your load,” she said. “These added container moves degrade terminal efficiency while vastly increasing operating costs … and the truck driver has been kept waiting.”

 

Source: freightwaves


Ship detection and tracking is an important task in video surveillance in inland waterways. However, ships in inland navigation are faced with accidents such as collisions. For collision avoidance, we should strengthen the monitoring of navigation and the robustness of the entire system. Hence, this paper presents ship detection and tracking of ships using the improved You Only Look Once version 3 (YOLOv3) detection algorithm and Deep Simple Online and Real-time Tracking (Deep SORT) tracking algorithm. Three improvements are made to the YOLOv3 target detection algorithm. Firstly, the Kmeans clustering algorithm is used to optimize the initial value of the anchor frame to make it more suitable for ship application scenarios. Secondly, the output classifier is modified to a single Softmax classifier to suit our ship dataset which has three ship categories and mutual exclusion. Finally, Soft Non-Maximum Suppression (Soft-NMS) is introduced to solve the deficiencies of the Non-Maximum Suppression (NMS) algorithm when screening candidate frames. Results showed the mean Average Precision (mAP) and Frame Per Second (FPS) of the improved algorithm are increased by about 5% and 2, respectively, compared with the existing YOLOv3 detecting Algorithm. Then the improved YOLOv3 is applied in Deep Sort and the performance result of Deep Sort showed that, it has greater performance in complex scenes, and is robust to interference such as occlusion and camera movement, compared to state of art algorithms such as KCF, MIL, MOSSE, TLD, and Median Flow. With this improvement, it will help in the safety of inland navigation and protection from collisions and accidents.

 

Source: x-mol


The World Shipping Council issued an eye-opening report last July. What seemed like a steady stream of vessel fires, capesizes and container losses was in fact a small drop in the global ocean shipping bucket. A WSC study found a tiny fraction, about .0006%, of the roughly 226 million containers shipped on the world’s oceans each year were lost.

WSC reported on average only 1,382 containers were lost at sea per year between 2018 and 2019. So what’s going on? Between Nov. 30 and Jan. 31, more than 2,675 containers were lost in five incidents at sea. That’s almost double the annual average in just a two-month period.

MSC Aries

Most of the accidents have occurred in the North Pacific, including the most recent, the reported loss of 41 containers from the MSC Aries last Friday. All 41 containers lost overboard reportedly were empties being moved back to China to be refilled.

An MSC spokesperson did not confirm the number of containers lost but did tell American Shipper, “No cargo went overboard, according to preliminary reports from the vessel.”

The Aries is deployed on MSC’s Sequoia service, with a port rotation of the Port of Long Beach in California and Ningbo and Shanghai, China.

The ship “met with heavy weather while en route from Long Beach to Ningbo, impacting a limited number of empty containers,” the MSC spokesperson said.

The spokesperson said the MSC Aries berthed Thursday at the Port of Ningbo, “where a survey is taking place to assess the status of any containers damaged on board and any further action to take. We expect the vessel to resume service soon after the survey.”

Built in only 2020, according to VesselFinder, the container ship can carry a reported 14,300 twenty-foot equivalent units (TEUs).

Maersk Essen

The Maersk Essen lost 750 containers Jan. 16 while sailing from Xiamen, China, to the Port of Los Angeles. Maersk said the 13,100-TEU Essen “experienced heavy seas during her North Pacific crossing.”

The Essen changed course after the loss of the containers and sailed for the Port of Lazaro Cardenas in Mexico, where it berthed last Saturday.

Representatives from W K Webster, which describes itself as “the world’s leading service provider in the settlement of cargo claims,” are in Lazaro Cardenas and providing updates.

“Our team of surveyors are in place at Lazaro Cardenas to undertake surveys as cargo operations proceed and to ascertain the status of all the containers we represent. We are liaising with representatives of the vessel locally to agree to a protocol for the inspection of containers and the procedures for reloading containers, cross-stuffing cargoes into replacement containers and, in some cases, for the probable disposal/salvage sale of cargo considered to be a total loss,” W K Webster said.

It said the surveyors also were studying drone footage of the Maersk Essen as it approached Lazaro Cardenas. W K Webster said the footage was removed from its website at Maersk’s request.

“Following cargo operations at Lazaro Cardenas, the most likely scenario is that containers discharged ashore — or transloaded — will be reloaded to the vessel for on-carriage to Los Angeles as originally intended,” one update said. “Due to significant port congestion at Los Angeles/Long Beach, Maersk has not ruled out transshipping to alternative vessels or possibly rerouting containers by rail. Whichever plan is ultimately adopted, it is clear that there will be significant delay to cargoes reaching their final destinations.”

The operations in Lazaro Cardenas could take several weeks “given the complexity and dangers involved,” W K Webster noted.

“We continue to liaise with the vessel’s representatives regarding the status of the containers to accurately determine which containers were lost overboard and the stowage positions of those remaining on board,” it said.

A Maersk spokesperson told American Shipper the Essen is “undergoing standard discharge of damaged containers and weather-related repairs” at the Mexican port.

He said the Essen is estimated to sail from Lazaro Cardenas for the Port of LA between Feb. 12 and 16, “resuming regular TP6 string scheduled calls.” The TP6 service connects Asia and North America, with the only U.S. call at the Port of LA.

ONE Apus

In one of the worst cases of cargo losses on record, the ONE Apus lost 1,816 containers about 1,600 nautical miles northwest of Hawaii after reportedly sailing into a severe storm Nov. 30.

The Apus, which had been en route to the Port of Long Beach, turned around and sailed for the Port of Kobe in Japan, arriving there Dec. 8.

W K Webster also has a crew in Kobe and said that as of Wednesday, 638 containers had been discharged from the Apus, which has a carrying capacity of 14,052 TEUs.

“Progress is still relatively slow, although the rate of discharge does appear to be increasing slightly as the most severely damaged containers are discharged, leaving others that are more easily handled to be removed. It is still likely to be a few more weeks before discharge is completed and necessary repairs made to the vessel,” W K Webster said.

“Details of the status of each container still does not include details of those containers thought to be lost overboard as a result of the incident. It is presently unclear whether this will be revealed by a process of elimination as the discharge operation at Kobe concludes or whether earlier information will be made available,” it continued. “A declaration of general average now seems very unlikely. We are pressing [ONE] to formally confirm this so that this issue can be finally put to rest and our clients’ concerns allayed.”

General average basically requires shippers to contribute to the expenditures made to preserve a ship and its cargo. Most cargo insurance policies protect a shipper’s merchandise from physical loss or damage and cover general average losses.

What caused such a massive number of containers to fall from the Apus, which made its maiden voyage in the spring of 2019, reportedly has not yet been determined.

“Investigations into the cause of the incident continue, but a physical attendance by our appointed expert has been delayed as a result of the owner’s current refusal to grant access to the vessel, citing safety issues,” W K Webster said this week. “We still intend this inspection to take place in due course when permitted, including an inspection of all relevant physical evidence that [ONE has] agreed to preserve.”

A reply to American Shipper’s email to ONE for additional information simply said, “Discharging of damaged containers is still ongoing at Kobe. Kindly understand we disclose details only to the customers.”

The loss of 1,816 containers in a single incident certainly jumps out. But even with the case of the Apus subtracted, the number of containers lost in the last two months is by a far cry outpacing the annual average.

Ever Liberal

Taiwanese carrier Evergreen Marine’s Ever Liberal lost a reported 36 containers after encountering strong winds in the Pacific about 20 nautical miles off the coast of Kyushu, Japan, on Dec. 31. An additional 21 containers reportedly fell onto the deck.

The Ever Liberal had sailed from Busan, South Korea, bound for the Port of LA. Evergreen told the Taiwan News that the container ship diverted to Taipei to survey the damage.

According to VesselFinder, the Ever Liberal arrived at the Port of LA last Sunday and was due to berth in Oakland, California, on Thursday.

Built in 2014, the Ever Liberal has a capacity of 8,452 TEUs.

E.R. Tianping

Israeli carrier ZIM reportedly lost 76 containers last month from the chartered ship E.R. Tianping.

The incident also occurred in the Pacific as the container ship was making its way from South Korea to North America.

The 2006-built Tianping did visit the ports of Vancouver and Seattle at the end of January. It now is sailing for Busan, with an estimated arrival next Wednesday.

ZIM did not respond to American Shipper’s requests for comment.

Giulia 1

While no cargo reportedly was lost, rough seas are being blamed for the death of a crew member from the bulk carrier Giulia 1 off the coast of Nova Scotia, Canada, last Saturday.

According to reports, the Giulia 1 was about 320 nautical miles southeast of Nova Scotia when it was hit by the wave. One crew member, said to be a 30-year-old Filipino man, was killed and three others reportedly suffered injuries.

The bulk carrier reportedly had sailed from Norfolk, Virginia, and was bound for Africa when the incident occurred. The Giulia then diverted to the Port of Halifax, where it arrived Sunday.

Transport Canada told American Shipper that it inspected the vessel Wednesday and “issued a deficiency notice under the Maritime Labour Convention and the International Safety Management Code. The vessel will remain alongside at the Port of Halifax pending rectification of all items to the satisfaction of port state control.”

Transport Canada did not say what those deficiencies were.
Source: Freight Waves

 

Source: hellenicshippingnews


The Ship Communications Officer (SCO) is a civil service mariner (CIVMAR) employed by the Navy to serve the Military Sealift Command (MSC) onboard naval auxiliaries and hybrid-manned warships worldwide, in peace and war. MSC exists to support the joint warfighter across the full spectrum of military operations. MSC provides on-time logistics, strategic sealift, as well as specialized missions anywhere in the world, in contested or uncontested environments.

The Ship Communications Officer (SCO) is the head of the Communications Department and is responsible to the Master for all operational, administrative and maintenance functions of the Communications Department. Incumbent will keep the Master informed of all capabilities, limitations and conditions of assigned equipment in compliance with current policies and instructions; and initiate actions to correct all equipment deficiencies. Incumbent is responsible for proper planning, managing, and executing of all Communications Department evolutions and Communications Department’s role in ship-wide functions. Incumbent will manage the Command, Control, Communications, Computer (C4) systems. Responsible for the proper operation, maintenance and repair of electronic communications equipment/systems onboard the ship.

Assigned as the ship’s Communications Local Element (LE) custodian, incumbent is responsible for all centralized distribution and accounting system designed to provide appropriate safeguards for sensitive cryptographic publications, messages, documents, keying material, equipment and related devices.

Responsible for drafting instructions and implementing plans for contingency communications. In addition, responsible for drafting and implementing the EAP to include destruction and safeguarding of crypto, cryptographic equipment, classified documents and other sensitive material. Schedule and conduct drills frequently to ensure plans can be carried out as envisioned and maintain proficiency of personnel.

Responsible for ensuring an aggressive Safety Program is established and maintained in the Communications Department in compliance with current policies and instructions. Coordinate with the Electrical Safety Officer (Chief Engineer) and establish a Tag-Out/Lock-out Program within the Communications Department and ensure compliance with applicable safety standards and procedures. Ensure BI-monthly Safety Meetings are conducted for his department and submit written reports of such meeting to the Safety Officer (Chief mate and Master) for review.

 

Source: sealiftcommand


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