PUBLISHED SEP 10, 2021 5:39 PM BY THE MARITIME EXECUTIVE

The Port of Baltimore received four of the largest cranes in the world that will help to double the container terminal’s capacity. Arriving at the port on September 9 after a two-month voyage from China, the last miles were among the most challenging as they carefully maneuvered the cranes with just feet of clearance under interstate highway bridges spanning the entrance to the harbor.

The new fully electric cranes were loaded aboard the heavy lift vessel Zhen Hua 24 for the voyage from China. According to details released by the U.S. Coast Guard for the navigation into the port, the cranes were standing 176 feet above the deck of the lift vessel, leaving just 10 feet of clearance at the William P. Lane, Jr. Memorial Bridges across the Chesapeake Bay and the Francis Scott Key Bridge across the Patapsco River Bay.

The navigation was further complicated because the cranes were extending over the sides of the lift vessel. The Coast Guard reported the total beam at approximately 489 feet with an extension of approximately 129 feet on the port side and approximately 228 feet on the starboard side.

“This beam width and cargo height will severely restrict the M/V Zhen Hua 24‘s ability to maneuver and create a hazard to navigation if required to meet or pass other large vessels transiting the navigation channels,” the Coast Guard wrote in the rules for a special safety zone created for the transit. “Because of the size of the cargo and the width of the navigation channels, vessels will not be able to transit around the M/V Zhen Hua 24, necessitating closure of the navigation channels,” and “safety concerns will be heightened due to the small margin of error for safe passage,” under the bridges.

The Coast Guard placed special restrictions requiring the arrival to happen only with wind conditions of 25 knots or less in the harbor. Further, the vessel was only permitted to conduct the transit at low tide and further safety vehicle traffic across each of the bridges was suspended for up to 30 minutes during the transit.

The cranes arrived in the area on September 3, after 68 days at sea. However, due to the passage of Hurricane Ida the decision was made to hold the vessel offshore for four days until conditions improved for the delicate maneuver.

With spectators lining the shoreline and more than a few people holding their breath, the cranes completed the transit at mid-day. They are part of a significant expansion and improved efficiency for the container terminal’s operations. A total investment of $166 million in the terminal also included a second, 50-foot-deep berth and other upgrades to the equipment.

“The Port’s container business has grown impressively in recent years and is poised to grow even more with the addition of these new ultra-large cranes,” said Maryland Governor Larry Hogan, who joined Port and MDOT officials to view the cranes as they made the final leg of their journey. In 2020, the Port of Baltimore handled 628,132 TEU an increase of 144 percent over the past decade at the Seagirt terminal.

The new fully electric cranes when finally assembled and operational at the port will stand 450 feet tall and weigh about 1,740 tons. They are 25 feet taller and 190 tons heavier than the port’s first set of Neo-Panamax cranes that arrived in 2012. The new cranes can each extend to reach 23 containers across on a ship and lift 187,500 pounds of cargo. Ports America Chesapeake will test and prepare the cranes over the next few months, and they are expected to be fully operational in early 2022.

(Photos courtesy Port of Baltimore)

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PUBLISHED SEP 10, 2021 6:48 PM BY THE MARITIME EXECUTIVE

Four new records were established today for the volume of ship traffic in the Southern California port complex at San Pedro Bay led by the continuing surge in imports. While the number of containerships arriving at the ports of Los Angeles and Long Beach might decline slightly in the coming days, the overall outlook is for a steady flow of ships and a continued record-setting inbound flow of containers.

After highlighting the multiple new records set in San Pedro Bay yesterday, September 9, the Marine Exchange for Southern California announced four new records just a day later on September 10. Captain Kip Louttit, Executive Director for the Marine Exchange of Southern California & Vessel Traffic Service Los Angeles and Long Beach San Pedro, CA continues to highlight that the port is operating as efficiently as possible as they manage the onslaught of vessels.

Currently, there are a total of 134 vessels in port which breaks the prior record of 129 set just over a week ago on August 29. Among the vessels in the twin ports are a total of 86 containerships, which again is a record. One day earlier they established the prior record of 79 containerships.

The number of vessels waiting outside the port continues to grow. The Marine Exchange reports that a total of 74 of the vessels “in port” are actually waiting offshore. This includes a record of 55 container vessels passing the prior record of 49 set just yesterday. The ports’ anchorages are full as are the contingency anchorages and now a fourth record was set with 16 vessels in the drift areas as of mid-day surpassing the prior record of a dozen. The Marine Exchange started using the drift areas in January 2021 for the first time in 17 years and after clearing them by spring has again been forced to hold vessels outside when the anchorages are full.

Screen shot of the Vessel Traffic Service’s computer screen with the green circles showing the 16 vessels drifting (Marine Exchange)
The 55 containerships currently waiting outside the port include 14 mega-containerships each with a capacity of over 10,000 TEU. Those vessels alone have a combined capacity of 181,000 TEU. The report indicates that the containerships have been in the anchorage anywhere between one and 18 days. Twenty-four of the boxships waiting are heading to terminals in the Port of Los Angeles, which reports that its average waiting time has risen to 8.5 days based on a 30-day average.

“A huge 56 vessels are scheduled to arrive over the next three days,” reports Louttit. He calculates that it is 19 more than their normal pre-COVID levels. The pending arrivals include another 22 containerships.

“As we look forward to the weekend in these record-breaking times, as the Coast Guard’s motto ‘Semper Paratus’ (Always Ready) says, we and our port partners keep your Marine Transportation system always ready and safe, secure, reliable, and environmentally sound,” concludes Louttit.

The peak shipping season started with a roar reported the Port of Long Beach lifting its operations to its strongest August on record. Dockworkers and terminal operators moved 807,704 TEU the port announced which represented a better than 11 percent increase compared to August 2020, but the strongest gains came with empties followed by imports. Exports were down more than five percent in August.

The ports continue to project a steady increase in container traffic in the coming weeks. The Port of Los Angeles in its Signal planning tool reports volumes were up 24 percent this week alone to over 122,000 TEU. However, that pales in comparison to the forecast of over 170,00 TEU in just two weeks.

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PUBLISHED SEP 10, 2021 7:20 PM BY THE MARITIME EXECUTIVE

Marking a major foreign policy success for the Russian government, state-owned gas producer Gazprom announced Friday that it has completed the Nord Stream 2 pipeline connecting St. Petersburg with Germany’s Baltic coast. The line will double the amount of gas that Russia can deliver to European customers by the Baltic route, giving Moscow a new alternative to existing pipeline networks on shore.

“Today, the sections of the second Nord Stream 2 pipeline laid from the German shore and Danish waters have been connected in a so-called above water tie-in. The opposing pipe strings were lifted from the seabed by the lay barge Fortuna and the pipe ends were cut and fitted together,” Gazprom said in a statement. “The welding to connect the two lines took place on a platform located above the water on the side of the vessel. Then the connected pipeline was lowered to the seabed as one continuous string. Afterwards, the required pre-commissioning activities will be carried out with the goal to put the pipeline into operation before the end of this year.”

The completed pipeline raises the possibility that Russia will shift Europe-bound gas shipment volumes away from U.S.-allied Ukraine, which currently receives about $3 billion per year in revenue from Gazprom in exchange for the use of its pipelines. Ukraine’s contract for gas transport will expire in 2024, and Russian President Vladimir Putin has previously said that Ukraine must show “good will” if it wishes to continue to carry Gazprom’s product. Relationships between the neighboring countries are tense: Russia annexed Ukrainian Crimea by force in 2014, and it supports Russian-allied partisans in the ongoing fight for control of the eastern Ukrainian region of Donbass.

In late 2019, recognizing that Nord Stream 2 would reduce the security of U.S.-allied countries in Eastern Europe, the United States Congress enacted legislation requiring sanctions on certain vessels and businesses engaged in the pipeline project. These bipartisan sanctions measures forced the withdrawal of the project’s original pipelay contractor, Allseas, and delayed work on the line by about one year.

In 2020, Gazprom chartered two Russian-flagged pipelay vessels to replace Allseas’ assets, and it renewed its work in February 2021. It encountered little resistance from the Biden administration, which has declined to enforce sanctions on the project’s biggest participants. In particular, the administration waived penalties on Nord Stream 2 AG, a Switzerland-based holding company co-owned by Gazprom, effectively paving the way for the project’s completion.

“I have determined that it is in the national interest of the United States to waive the application of sanctions on Nord Stream 2 AG, its CEO Matthias Warnig, and Nord Stream 2 AG’s corporate officers,” said U.S. Secretary of State Anthony Blinken on May 19. “We will continue to oppose the completion of this project, which would weaken European energy security and that of Ukraine and Eastern flank NATO and EU countries.”

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PUBLISHED SEP 10, 2021 7:51 PM BY THE MARITIME EXECUTIVE

With rates across the container shipping sector reaching new heights, shippers continue to complain not only about skyrocketing costs but a shortage of capacity at any price, while carriers are recognizing unprecedented levels of profits. While many are questioning just how long these rates can be sustained, one shipowner reported a record new contract this week, while one of the world’s largest carriers, CMA CGM Group, announced it is freezing rates for six months.

The world’s third-largest carrier, the French company grabbed headlines with its surprising announcement, while some questioned if that was the primary purpose. “Effective immediately, and until February 1, 2022, the group is prioritizing its long-term relationship with customers in the face of an unprecedented situation in the shipping industry,” CMA CGM wrote in a customer announcement distributed on September 9. “Although these market-driven rate increases are expected to continue in the coming months, the group has decided to put any further increases in spot freight rates on hold for all services operated under its brands (CMA CGM, CNC, Containerships, Mercosul, ANL, APL).”

Coming at the busiest time of the year, skeptics pointed out that CMA CGM is likely fully booked with minimal space in the spot market. Yet the announcement sent a dramatic signal to the market. “CMA CGM aims at strengthening its valuable customer relationships and providing support as they navigate today’s difficult supply chain challenges,” they wrote while also highlighting that the company has increased the capacity of its fleet by 11 percent since the beginning of 2020, adding more than 780,000 TEU in the past 15 months.

The move comes at a time when demand remains at an all-time peak.  Market consultants Drewry reported this week the 21st consecutive week of increases in its freight rate index, pushing it more than 300 percent higher than the same week in 2020. Drewry’s composite World Container index stands at $10,083.84 per 40ft container. “Drewry expects rates to increase further in the coming week but steadily,” they forecast in their analysis.

A further illustration of the soaring rates came this week when the Pittas family of Greece’s container ship operator Euroseas reported, “the highest time charter rate ever achieved by any vessel in our fleet and one of the highest rates ever achieved in our industry.”

Euroseas’ vessel M/V Synergy Oakland, a 4,250 TEU vessel built in 2009, entered into a new time charter contract for a period between a minimum of 60 days and a maximum of 85 days at a gross daily rate of $202,000 or $195,000 depending on where the vessel will be delivered to the unidentified charterer. The new rate will commence in the second half of October 2021 when the vessel is redelivered from its current charter.

The operator of 15 intermediary and feeder boxships reported that its fleet is currently averaging $22,000 a day on its contracts. Other than the Synergy Oakland, which is under a current contract of $64,660 a day, the remainder of the fleet is between $10,200 and $29,500 a day. “Euroseas is well-positioned to take advantage of a further rising market with five ships, including M/V Synergy Oakland after the expiration of its new charter, opening in the next six months,” commented Aristides Pittas, Chairman and CEO of Euroseas.

Analysts are all carefully watching the market to see how CMA CGM’s announcement will impact other carriers and how long rates can continue their record-setting pace.

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20 years ago this Saturday, hijacked planes struck the World Trade Center in Manhattan and the Pentagon in Washington, D.C. killing nearly 3,000 people. A fourth plane would have hit yet another target if the brave passengers on board had not forced it down on a field in Pennsylvania. The attacks shook America, and they set the stage for two decades of war in the Middle East.

At 0846 and 0903 hours on that fateful day, two Boeing 767 jetliners struck the Twin Towers in Lower Manhattan. Following evacuation orders, survivors streamed down the buildings’ stairwells and out into the streets. At 0959, the South Tower collapsed, and the North Tower followed at 1028.

As first responders rushed to the scene, Mayor Rudy Giuliani ordered an evacuation of Lower Manhattan, and thousands attempted to flee to safety. Many headed out on foot to Brooklyn or Midtown, but hundreds of thousands were trapped down by the waterfront, cut off by a giant cloud of toxic smoke and dust.

Dan Croce, a former Coast Guard officer, was working in Lower Manhattan that morning. When the second plane hit, he realized that a huge number of people would need to be evacuated by water. He made a call to USCG Activities New York and told the chief warrant officer who answered the phone that they would need a boatlift. That is exactly what happened: Under the leadership of Lt. Mike Day, local Coast Guard units marshalled a force of volunteer mariners to pick up survivors and carry them across the harbor to safety.

“I looked out the window and saw the Pilot Boat New York heading towards Upper Bay and the Battery, leading a fleet of tugs and other small boats in what appeared to be a ‘V’ formation. I thought with tears in my eyes that they got my message and help was on the way!” Croce recalled in a recent interview.

That boatlift picked up countless survivors from the water’s edge near Wall Street and delivered them to safety in New Jersey. The flotilla quickly grew to include five cutters, 12 Coast Guard patrol boats and over 100 civilian vessels. Altogether, some 800 mariners rescued about 500,000 people from the waterfront. It was the largest waterborne evacuation of all time – even larger than the Dunkirk evacuation of World War II – and for days afterwards, many of these mariners kept going, bringing supplies and fuel to the responders at ground zero.

To honor their heroism and to remember the fallen, a group of American maritime organizations held a vessel procession past Lower Manhattan on Friday. The event was organized by the American Maritime Partnership (AMP), the Navy League, the Port Authority of New York & New Jersey, the Sandy Hook Pilots and many others. With Coast Guard Commandant Adm. Karl Schultz and Sen. Kirsten Gillibrand in attendance, dozens of tugs, ferries and other vessels joined the procession – including vessels that were present on the day of the attacks.

“Within minutes of the call for help, American maritime vessels of all shapes and sizes responded selflessly and ensured that the events on that fateful day were not even worse. The American Maritime Partnership remembers and mourns all Americans lost that day, and expresses its deepest gratitude to the men and women of American Maritime for their selfless response and service,” said AMP in a statement.

Legacy of change

The legacy of 9/11 and the Lower Manhattan boatlift can be seen in dozens of large-scale changes enacted over the past two decades, like the creation of the Department of Homeland Security; the swift enactment of the IMO International Ship and Port Facility Security Code; the launch of the U.S. Coast Guard’s Maritime Safety and Security Teams (MSSTs); and even the design of vessels that serve the New York harbor. The new ferries and fireboats that the city has purchased over the last decade are built to handle mass evacuations and shoreside firefighting, according to Eastern Shipbuilding Group, the yard behind the city’s new Ollis-class ferries.

On the 20th anniversary of the 9/11 attacks. we remember and honor the victims – the 2,977 people who died, the 6,000 who were injured, and the thousands of first responders and civilians who suffered health effects from Ground Zero dust – but we also celebrate the heroism of mariners at their best. Knowing the risks, the men and women of New York’s working waterfront answered the call, and they saved countless lives.

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