heavy lift moving large dry-dock 10,500 NM
The dry-dock extended more than 100 feet over each side of the Hawk (OHT)

PUBLISHED AUG 27, 2021 8:07 PM BY THE MARITIME EXECUTIVE

 

The heavy-lift industry is called on to manage unique projects that often require transporting large or heavy structures long distances. Recently, the Norwegian specialized heavy transportation and installation contractor OHT was assigned the unique challenge of transporting a 590-foot-long floating dry-dock nearly 10,500 nautical miles for Promaritime.

The floating dry-dock, which measures 590 feet in length and 121 feet in width, was located in Abu Dhabi in the United Arab Emirates. It needed to be transported to northern Europe for ultimate deployment in France.

The vessel assigned the task of moving the dry-dock was the Hawk. While it is among the top five largest semi-submersible heavy lift vessels in the world, the Hawk only has 515 feet of free deck length available.

 

 

The solution developed by OHT was to diagonally load the massive dry-dock for the voyage. That meant that the dry-dock would be overhanging the sides of the vessel, which already has a beam of 182 feet. The width of the overall transport was close to 400 feet with the dry-dock overhanging each side of the Hawk by approximately 105 feet.

“With the exceptional experience of the captain and crew on board the vessel, Hawk was able to safely navigate around Cape of Good Hope with only minimal delays due to adverse weather and without stopping in any safe haven such as Port Elizabeth,” reports OHT.

The transit was completed in 40 days. The day after the Hawk arrived in Brest, the dry-dock was offloaded. It was then towed to the Damen shipyard where it is currently completing repairs and receiving a new coat of paint. After the shipyard, the dry-dock will be towed to the port of Rouen, where it will begin operations.

 

 

(photos courtesy of OHT)

 

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Shipowners and operators are being warned of armed attacks on containerships at anchor in Manila Bay.

Marcus Hand | Aug 24, 2021

On 17 July at 0125 hrs the Maersk Njussfjord was boarded and the perpetrators point a homemade handgun at the duty watcher’s head and tied him to the ship’s railing. Seven more perpetrators boarded the vessel and stole a mooring line rope.

On 4 August at 2140 hrs three armed robbers boarded the containership Seaspan New York and were spotted by the ship’s duty crew. One of the perpetrators attempted to stab the duty crew, who was able to evade the attack, but was then tied up by two other perpetrators.

The robbers stole two portable welding machines with cables, 20 reefer cables, three bronze nozzles, and five hydrant caps, and left the vessel before the alarm could be raised.

On 13 August the CMA CGM Cai Mep was boarded at 0130 hrs by five robbers and one pointed a gun at the duty watcher when they were spotted. They ordered the duty watcher to open the storage room and stole 20 buckets of paint. A deck cadet who went in search of the missing duty watcher was also threatened with a knife but was able to escape.

Given international restrictions on crew change vessels have been sailing to the Philippines and anchoring in Manila Bay to undertake exchanges of seafarers.

The latest incidents bring to eight the number of attacks on vessels at anchorage in Manila Bay since the beginning of the year.

ReCAAP said was concerned about the continued incidents and the increased level of violence used. “Ship masters and crew are strongly advised to exercise vigilance, maintain constant look-out for suspicious boats and report all incidents immediately to the local authorities. It is also very important for the crew not to engage in a confrontation with the perpetrators,” it warned


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Container availability and prices could be hit by lockdowns in Ningbo port and Vietnam warns Container xChange.

Marcus Hand | Aug 24, 2021

The online platform for container sourcing is expecting a similar pattern to that was seen for container availability and prices at Yantian port in South China which much of Yantian International Container Terminal was locked down for three weeks due to a Covid outbreak in the second quarter.

The impact in Yantian is still being felt and container prices rocketed from $5,515 in June to $15,336 this month.

“We saw a real and measurable spike in container prices and a major drop in container availability as measured by our Container Availability Index (CAx) when terminals at Yantian saw operations disrupted through most of June,” said Christian Roeloffs, co-founder of Container xChange. “Early indicators suggest we are likely to see the same impact in Vietnam and at Ningbo.”

At Yantian, the CAx level for a 40-foot dry container was 0.61 in Week 17 but fell to 0.47 in Week 22 and 0.3 in week 32.

Looking to Ningbo and Vietnam, where there are current lockdowns, average container prices at Ho Chi Minh City jumped from $2,872 in May to $4,875 in August. For Ningbo where Meishan Island International Container Terminal (MSICT) suspended operations from 11 August Container xChange said it had seen early indicators of an increase in container prices. Average August prices have climbed to $5,731, up from $5420 in June.

“Whether we see a further spike in container prices at Ningbo will probably be determined by how much cargo was disrupted at the port and whether we see additional shutdowns later this month,” said Dr Johannes Schlingmeier, CEO & Founder of Container xChange.

“Even if there are no additional closures it is likely that container prices will rise on lower availability in the coming weeks due to the lag between liner schedule disruption and container availability and pricing.”


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The port of Valencia moved 3.28m teu, up 10%, and more than 49.5m tonnes of goods, up 11.1%, during the first seven months of this year, compared to the same period the year before.

Michele Labrut | Aug 24, 2021

Containerised cargo grew by 1.7% and 2.4% in tonnage if compared to 2019, previous to the pandemic.

Exports of Spanish companies operating in Valenciaport, played a strategic role growing by 22.7% with a total of 632,082 containers full of cargo up to 31 July, 116,880 more than in the same period in 2020.

This growth is reflected in the dynamism of sectors such as construction materials, the agri-food industry, chemical and steel products and the automotive sector.

In these first seven months of the year, imports have also increased by 15.53% and transhipment by 7.61%. Between January and July of this year, ro-ro traffic was 14.36% higher than in the same period in 2020, and automobiles registered an increase of 5.35%.

In the year-on-year data for August 2020-July 2021, – a period that is still marked by the complexity of the economic and pandemic situation –a total of 5.72m teu were moved, a number that is close to 6m teu per year.

Trade with China was the most important with a total of 356,389 teu at the end of July, 22.61% more than in 2020, followed by the United States, with a growth of 7.86% and 317,989 teu. In third place is Turkey with an increase of 10.74% and in fourth place is India with a growth of 38.18%.

The Far East is the first destination of containers with a growth of 14.55% compared to 2020, followed by the Mediterranean and Black Sea (+6.67%), West Africa (+34.65%) or Atlantic South America (15.59%).


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AP Moller – Maersk is making a major commitment to methanol as future marine fuel with an order for eight 16,000 teu dual-fuel containerships at Hyundai Heavy Industries (HHI).

Marcus Hand | Aug 24, 2021

When the eight 16,000 teu vessels are delivered in 2025 they will enable to Maersk to offer carbon neutral shipping to its customers on mainline ocean trades – a first for the industry sector. The contract with HHI includes options for four additional vessels.

While many of Maersk’s competitors are opting for LNG as a low carbon, bridging fuel option, the Danish shipping company has taken the plunge to invest in carbon neutral based solutions from the outset.

“The time to act is now, if we are to solve shipping’s climate challenge. This order proves that carbon neutral solutions are available today across container vessel segments and that Maersk stands committed to the growing number of our customers who look to decarbonise their supply chains. Further, this is a firm signal to fuel producers that sizable market demand for the green fuels of the future is emerging at speed,” said Soren Skou, CEO, AP Moller – Maersk.

Maersk named Amazon, Disney, H&M Group, HP Inc., Levi Strauss & Co., Microsoft, Novo Nordisk, The Procter and Gamble Company, PUMA, Schneider Electric, Signify, Syngenta and Unilever as customers that have committed to actively use and scale zero carbon solutions for their ocean transport.

“Maersk’s investment in large vessels operating on green methanol is an important innovative step supporting H&M Group’s climate goals within International Freight and we are proud to take part in this pioneer journey, “ commented, Leyla Ertur, Head of Sustainability – H&M Group

While Michelle Grose, Head of Logistics and Fulfilment for Unilver commented: “Unilever is committed to accelerating the transition to clean transport solutions, not just in our own operations but along global value chains as we work to achieve net zero emissions by 2039. With logistics and distribution accounting for around 15% of our greenhouse gas emissions footprint, it’s important that we work with partners shifting to lower carbon fuels. We are proud to partner with Maersk as they pioneer carbon neutral transportation on the high seas.”

The methanol propulsion system for the vessels is being developed in collaboration with makers including MAN ES, Hyundai (Himsen) and Alfa Laval. The company plans to operate the vessels on carbon neutral e-methanol or sustainable bio-methanol as soon as possible and the company admits that sourcing an “adequate amount of carbon neutral methanol from day one in service will be challenging”.

The order for eight large-sized containerships capable of being powered by carbon neutral methanol follows a contract for Maersk’s first methanol powered vessel at the beginning of June. The 2,100 teu newbuilding ordered at Hyundai Mipo will be delivered in 2023 for trading the Baltic Sea region.

Last week Maersk announced that REintegrate and European Energy would establish a new Danish facility to produce the 10,000 tonnes of carbon neutral e-methanol needed annually to fuel the 2,100 teu vessel.


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The fast-expanding Chinese container shipping service provider, Zhonggu Logistics, is launching a new international service connecting China with Vietnam.

Katherine Si | Aug 24, 2021

The new CV2 service, deploying containerships from its own fleet, will start its maiden voyage from south China on 27 August, including the ports calls of Nansha-Shekou-Haiphong.

Providing connections to south China inland ports, CV2 service will guarantee ample supply of container and will be available for container’s pick-up and return at multi-locations.

Zhonggu launched its first foreign trade service covering Shanghai, Ningbo and Ho Chi Minh City in March this year, and recently invested in 18 new containerships to expand its service network.


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The Greek Court of Audit has approved the sale of another 16% stake in Piraeus Port Authority (PPA) to Cosco Shipping and a five-year extension for the company to complete the investments it has undertaken to make.

David Glass | Aug 24, 2021

The sale raises Cosco Shipping’s stake in PPA to 67% from the current 51%. The new contract between the Chinese company and the seller, the Greek state, go to the Parliament for ratification, and will probably be voted on in the first half of September.

Cosco demanded the provision in the privatisation agreement allowing it to acquire the extra stake be activated despite not having completed the €300m investment programme it had undertaken to implement within five years of its purchase of a 51% stake in PPA from the state for €293.7m.

Cosco had deposited €88m in an escrow account for the 16% stake in 2016

The Court of Audit accepted Cosco is not responsible for the delays in implementing the investment plan. At least some of the delays involve legal wrangling, such as an appeal by locals over environmental concerns that has delayed the upgrade of a cruise terminal. Cosco itself pointed out, in a November 2020 letter to the Finance and Shipping and Island Policy ministries and Greece’s Asset Development Fund, that it was not responsible for the delays.

It is understood the new agreement calls for Cosco to post letters of guarantee covering 33% of the amount of pending investments. The letters will be called in in case the investments are not completed by the new deadline. Also, the state gets a veto on strategic decisions, but will henceforth only be represented by one member on the 11-member PPA board of directors instead of three.

PPA’s master plan calls for €600m in investments, of which half are the mandatory ones that should have been completed by this month. In fact, less than half, or €140m, of the mandatory investments have been completed; the rest of the projects have either not been licensed or are delayed due to court challenges.


By Jack Wittels (Bloomberg) The world’s largest container-shipping line is making a $1.4 billion investment in a greener fleet.  A.P. Moller – Maersk A/S (AMKBY) has ordered eight new vessels, each costing $175 million, that can be propelled by cleanly made methanol instead of an oil-based fuel. They’re set for delivery from 2024.

“We don’t believe in more fossil fuels,” Morten Bo Christiansen, vice president and head of decarbonization, said in an interview. “A lot of our customers are very, very supportive of this.”

Shipping, the backbone of global trade, accounts for almost 3% of man-made carbon dioxide emissions. The level has been rising in recent years, according to data from the International Maritime Organization. By 2050, the United Nations body wants shipping’s total greenhouse gas emissions to at least halve relative to 2008. Last year, IMO rules designed to curb air pollution by limiting the sulfur content of marine fuel came into force.

Maersk isn’t the only shipper starting to make the transition. Oil tanker owner Euronav NV has ordered new ships capable of one day running on ammonia or liquefied natural gas. Commodities trader Cargill has said it plans to add so-called wing sails to some of its fleet.

Back in February, Maersk said all future newbuild vessels under its ownership would be able to use carbon-neutral fuels. It also announced the launch in 2023 of a small container vessel that could run on clean versions of methanol. This latest order is much bigger — each ship can carry about 16,000 containers.

“This is a firm signal to fuel producers that sizable market demand for the green fuels of the future is emerging at speed,” said Maersk’s chief executive officer, Soren Skou. More than half of the company’s 200 largest customers have set science-based or zero-carbon targets for their supply chains or are in the process of doing so, according to a statement.

The new vessels, built by Hyundai Heavy Industries Co., represent about 3% of Maersk’s total container capacity. They’ll replace older ships in the company’s fleet, saving about one million tons of carbon dioxide a year. Maersk has the option for four more of the ships to be delivered in 2025.

The company acknowledges that finding enough carbon-neutral methanol for the vessels from the first day of service will be “challenging.” The additional design cost of being able to run on both methanol and conventional oil-derived, low-sulfur marine fuel will be in the range of 10-15% of the vessels’ total price. Maersk plans to use carbon neutral e-methanol, or, sustainable bio-methanol, as soon as possible in the new ships.

Environmentally-friendly sailing isn’t cheap. The clean methanol that the ships can burn is “at least twice as expensive” as the fossil-based, very low-sulfur fuel oil used by many vessels today, according to Christiansen. In a normal freight rate environment — today’s bonanza prices being an exception — doubling the fuel price translates to about a 15% rate increase, he said.

 

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Maersk Makes $1.4 Billion Bet On Methanol Ships


By Nick Savvides (The Loadstar) –

More than 90% of HMM’s seafaring union members voted to strike on Sunday and, if a resolution is not reached, the 453 union members are threatening to resign en masse tomorrow and apply to join Swiss-Italian rival MSC.

HMM’s seafaring and shore-based staff have expressed dissatisfaction over “a meagre” salary increment, despite the company achieving record profits last year, thanks to tight shipping capacity and logistics disruptions caused by Covid-19.

Their grievance stems from an eight-year salary freeze only lifted this year after HMM’s financial struggles culminated in a government bailout when Korea Development Bank (KDB) swapped debt for equity in 2016.

The staff’s unions are demanding a 25% wage hike and bonuses amounting to 1,200% of their salaries.

But HMM management is offering 8%, a bonus of 300% of salaries and a productivity incentive equating to 200%. KDB, HMM’s largest shareholder, is reportedly reluctant to accede to the demands.

An HMM spokesman told The Loadstar: “Negotiations between the management and the labour union are still under way to reach an agreement. Both sides are having a continuing dialogue on this matter and still doing their best for a settlement.”

The Loadstar understands that MSC is offering a salary 2.5 times what HMM is paying, equating to a monthly salary of $13,000-$14,000 to chief officers and a $5,000 for deckhands.

If the strike goes ahead, seafarers on HMM ships scheduled to arrive in Busan tomorrow would disembark in groups, while those supposed to board in their stead will refuse to produce tests stating they are free of Covid-19, a requirement for embarkation.

In July, MSC advertised for Korean seafarers with manning experience on ultra-large containerships. HMM is the only Korean carrier with such vessels and it was clear the advertisements targeted its crew members.

Korea’s Ministry of Oceans and Fisheries (MOF) is now “undertaking contingency planning procedures”, fearing a logistical crisis reminiscent of Hanjin Shipping’s collapse in October 2016, which immobilised its ships, causing many containers to be delayed before being transferred to HMM and alliance partners.

Hanjin’s collapse caused Korean container shipping capacity to plunge from 1.05m teu in early 2016 to 460,000 teu at the end of that year. And if HMM, which has a capacity of 850,000 teu, were to be incapacitated by the first industrial action in its 45-year history, there would be chaos.

The MOF has formed a task force, led by director of shipping and logistics Jeon Jae-woo to “maintain essential business functions and prepare support measures in case of emergency”.

The ministry has said that HMM was on course to achieve a record performance this year and is urging the management and unions to work together “in the nation’s interests” and to consider the threat logistics bottlenecks present to shippers.

Local media reports suggested SM Line, the only other ocean-going Korean carrier, could carry HMM cargo if required, but given the shortage of ships, there is a limit as to how much relief SM could offer.

The Loadstar is known at the highest levels of logistics and supply chain management as one of the best sources of influential analysis and commentary.

 

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HMM Seafarers Threaten Pay Strike, Mass Resignation


A passenger from the Carnival Vista has died from COVID-19 after several cases – mostly among crew members – were reported on the cruise ship earlier this month.

The New York Times reported Monday that the 77-year-old woman, who previously tested positive, died in a Tulsa, Oklahoma hospital after being transferred there from Belize.

As we reported previously, Carnival Vista arrived in Belize during a round-trip voyage from Galveston, Texas on August 11, reporting to authorities that it had 27 positive cases of COVID-19 on board. The majority of cases, 26 in total, were among crew members of the ship. It’s not immediately clear if the woman was the one passenger out of the 27 cases.

Belize authorities reported Carnival Vista arrived with 2,895 guests and 1,441 crew. Nearly all crew members on the ship were vaccinated as well as over 96% of guests on board, the Belize Tourism Board reported at the time.

The New York Times report said the sickened passenger was disembarked in Belize and admitted to a local hospital, where her condition worsened. She was eventually evacuated to a hospital in Tulsa where she passed away. An update on a GoFundMe page set up for the victim said she was transferred to Tulsa as early as August 6. It’s also no clear if she was vaccinated.

“We are very sorry to hear about the death of a guest who sailed on Carnival Vista,” Carnival Cruise Line said in a statement initially reported by the Times and now obtained by gCaptain. The statement added that the guest “almost certainly” did not contract the virus while on board the Vista.

Nevertheless, the incident highlights the difficulty cruise lines face in returning to cruising. For this reason, the U.S. Centers of Disease Control’s updated guidance recommends that high-risk travelers should avoid cruise ship travel altogether, regardless of whether or not they are vaccinated.

In response to our request for comment, Carnival Cruise Line provided us with the following statement:

“Carnival has implemented a suite of protocols that are designed to flex up as needed to adapt to the changing public health situation related to COVID-19.  We meet the standards for a vaccinated cruise as defined by the CDC, with at least 95 percent of our guests and all of our crew being vaccinated, and then implemented additional measures, as we are now requiring vaccinated guests to present both proof of vaccination and a negative COVID test at check-in.  Those few guests who cannot be vaccinated are tested twice before boarding the ship, and again at debarkation.  And all guests must wear masks in the indoor areas of the ship where people gather, such as dining rooms, theaters and casinos.  Unfortunately, no venue on land or at sea is COVID-free right now, but we are committed to protecting the health and safety of our guests, crew and the communities we visit and have not hesitated to act quickly and go beyond existing public health guidelines.”

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Carnival Vista Passenger Dies from COVID-19


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