Danish shipping and logistics giant A.P. Moller – Maersk has continued to deliver strong growth and profitability with profit going up to $3.7 billion in the second quarter of 2021.

Revenue was up almost 60% to $14.2 billion compared to the same quarter last year and EBIT amounted to $4.1 billion, which is up more than five times.

With a net profit of $3.7 billion in the second quarter of 2021, the net result for the first half of 2021 went up to $6.5 billion, the company revealed in its financial report.

“The results benefitted both from the exceptional circumstances in Ocean, where congestions and bottlenecks continued to drive up rates, and from solid progress in executing on our strategic transformation,” Søren Skou, CEO of A.P. Moller – Maersk commented.

“Looking at both the second quarter and the first half, I am pleased with the progress made and the high value generation, with a return on invested capital now at 23.7% for the past 12 months.”

The outlook for global market demand growth for the year has been revised up to 6-8 percent (about one percentage point), still mainly driven by American demand for Chinese goods.

Accordingly, Maersk has raised its profit guidance upwards, it now expects full-year EBITDA in the range of $18-19.5 billion (about $5 billion more than previous guidance of $13-15 billion) and underlying EBIT expected in the range of $14-15.5 billion (previously $9-11 billion).

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Maersk posts $3.7 billion profit in Q2 2021, expands logistics service


Taiwanese shipping line TS Lines has placed an order for the construction of six 1,100 TEU boxships at Fujian Mawei Shipbuilding.

As disclosed, the vessels feature Shanghai Ship Design and Research Institute’s (SDARI) design and are the latest generation of vessels for China-Japan shipping routes.

The new generation of 11,00TEUs is further optimized and upgraded to achieve energy saving and environmental protection targets.

The vessels are 147.9 meters long, 23.25 meters wide, and have 13,300 deadweight tons (DWT).

The ships’ price or the delivery dates were not disclosed.

The move follows TS Lines’ announcement made last month, revealing the order of four 7,000 TEU containerships at Shanghai Waigaoqiao Shipbuilding.

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TS Lines adds six 1,100 TEU containerships to its fleet


Monaco-based tanker operator Scorpio Tankers has taken a minority interest in a group of nine product tankers, including five dual-fuel Medium Range (MR) methanol tankers.

As informed, the MR tankers, built between 2016 and 2021, are designed to use methanol as fuel and carry it as cargo.

The dual-fuel MR Methanol tankers are currently on long-term time charter contracts longer than five years. The portfolio also includes four ice-class Long Range (LR) product tankers.

The company has bought the 6% minority stake for $7.2 million.

Separately, Scorpio Tankers announced its financial results for the second quarter of 2021. The company had a net loss of $52.8 million, or $0.97 basic and diluted loss per share.

“The global demand for oil and refined petroleum products remained subdued as governments around the world continued to impose travel restrictions and other measures in an effort to curtail the spread of the virus. These market conditions had an adverse impact on the demand for the Company’s vessels beginning in the third quarter of 2020 and continuing through the second quarter of 2021,” the company’s officials noted.

“The scale and duration of these circumstances is unknowable but could continue to have a material impact on the Company’s earnings, cash flow and financial condition in 2021.”

In January this year, the operator decided to sell and lease back three MR product tankers and one LR2 product tanker to China’s AVIC International Leasing.

 

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Scorpio Tankers boosts methanol footprint with new investment


Shell Tankers (Singapore) has signed a partnership agreement with ship management company Signal Maritime placing ten Medium Range (MR) product tankers into the company’s MR pool.

The company was an early adopter of the Signal Ocean platform in product tankers and the duo said they expect digital technology to help improve commercial results through the MR pool structure and other potential synergies.

In line with the shipping industry’s decarbonisation efforts, Shell and Signal have also joined forces to collaborate on carbon emissions reduction initiatives.

They will investigate further synergies and pooling opportunities in other tanker segments, as revealed by Signal Maritime.

Commercial ship manager Signal Maritime expanded its services by launching a new pool for MR product tankers in May 2021.

The move followed the success of its Aframax pool, which has been running since 2018 and consistently delivering good results, according to the company.

“Plans for further expansion of the pool with select partners are in progress, following the initial launch of the pool with vessels from Astra Shipmanagement and Signal.”

Last month, Shell Tankers inked new charter agreements with Knutsen LNG, Pan Ocean Co. and investors advised by J.P. Morgan Asset Management for six liquified natural gas (LNG) ships, bringing its LNG carrier fleet to a total of 24 vessels.

 

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Shell brings ten tankers to Signal Maritime’s MR pool


Carnival Cruises’ Italy-based, clean technology subsidiary Ecospray has expanded its range of innovative products with WESP, a preparatory technology for carbon capture solutions combined with EGCS and diesel engines.

Carnival Cruises’ Italy-based, clean technology subsidiary Ecospray has expanded its range of innovative products with WESP, a preparatory technology for carbon capture solutions combined with EGCS and diesel engines.

WESP (Wet Electrostatic Precipitator) which was developed in recent months is ready for its first installation on a cruise ship. Subsequently, thorough testing will be run in collaboration with important third-party bodies, such as RINA and SGS, in order to validate and assess the results.

The WESP system was developed to eliminate visible smoke from the stack, especially during engine start-up and at low loads, by capturing particles (PM2.5 and below) and part of condensable species (SO3). It can be installed downstream of the scrubber DeSOx tower and has low pressure drops and high removal efficiency. WESP can be integrated into an existing DeSOx tower or installed as a stand-alone unit, for both Open Loop and Hybrid scrubber systems.

All required laboratory testing has been successfully completed in recent months at the Ecospray Labs. The project will be developed in collaboration with RINA, who will support Ecospray in the assessment of the technology and run various tests.

SGS will also assist Ecospray with the laboratory analyses to test system performance in full scale.

Andrea Cogliolo, Senior Director Marine RINA, said, “RINA’s role in this project begins with the verification and validation of the installation drawings onboard the ship, continues by establishing a test protocol which is to be performed with the support of a third-party company equipped for measurements, and ends with the issuance of a report on the results achieved. The collaboration with Ecospray is part of RINA’s strategy, which looks at the energy transition as an area in which to make an important contribution. In the coming years, the shipping industry will be driven by decarbonisation and RINA is playing an active role in this transformation, making its multidisciplinary skills available to the sector to build an increasingly sustainable future.”

Vladimiro Bonamin, Director of SGS I&E Marine Services Geneva, said, “For this project, SGS Marine Services has been tasked with establishing the details for the analytical side of the test protocol prepared by RINA, and above all, preparing the QAQC protocol in order to guarantee top quality measurements. This collaboration with Ecospray is part of SGS’s wider strategy – as the only global player operating in the field of environmental measurements on large transport and cruise ships, we also want to be leaders for complex measurements in technological and scientific content.”

Filippo Lossani – Ecospray added, “Like the EGCS plants for diesel engines, WESP is a ‘bridge’ technology, meaning it’s a true transition technology which will guide us towards the 2030-2050 objectives. We are very satisfied with WESP, as it is a new product for the maritime industry and is ready to be installed. Considering the ever-increasing focus on issues involving environmental sustainability and health – and given the growing demand for the reduction of polluting emissions – we expect that the standardisation process of dust and particulates will be the necessary next step; and we are ready.”

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Ecospray unveils new particulate removal solution


Japanese operator K Line is claiming a world first with the installation of a carbon capture system on a bulk carrier as part of its CC-Ocean project carried out jointly with Mitsubishi Shipbuilding.

Japanese operator K Line is claiming a world first with the installation of a carbon capture system on a bulk carrier as part of its CC-Ocean project carried out jointly with Mitsubishi Shipbuilding.

K LINE has been conducting the joint project with Mitsubishi and Class NK to develop CO2 capture plant onboard vessel as part of the “Research and Development for advancing marine resources technologies”.

The small CO2 capture plant was installed on the coal carrier Corona Utility, operated by K Line for Tohoku Electric Power at Mitsubishi Heavy Industries’ Yokohama Works. For the installation of the plant, Class NK conducted a Hazard Identification Study (HAZID) and verified the viewpoint of safety.

After departure of the vessel from MHI Yokohama, experts from Mitsubishi Shipbuilding will be on board the vessel for one voyage to commission the small CO2 capture plant, evaluate its operation performance at sea, and analyse the captured CO2. After that, until the end of FY 2021, the ship’s crew will evaluate the operation, safety and operability of the CO2 capture plant, and will conduct demonstration tests in order to commercialise the plant such as downsizing in size and weight, efficiency of CO2 capture system with Mitsubishi Shipbuilding.

Based on the K LINE Environmental Vision 2050, the shipowner will continue to research, develop, and introduce various environmental load reduction technologies, including the “CC-OCEAN” project, and contribute to activities aimed at achieving GHG reduction targets and realising a carbon-neutral society.

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Misubishi and K Line testing shipping’s first carbon capture unit


Classification society Bureau Veritas (BV) and service provider MaDfly – Marine Drone Services – have successfully completed the first full in-water ship’s hull survey with a mini ROV on Brittany Ferries’ ship Bretagne.

Classification society Bureau Veritas (BV) and service provider MaDfly – Marine Drone Services – have successfully completed the first full in-water ship’s hull survey with a mini ROV on Brittany Ferries’ ship Bretagne.

The survey, which was supervised by BV on behalf of the French Flag, provided an opportunity to validate the integrity of the entire ship’s hull’s bottom. Efficient underwater inspections of shipping vessels are playing an increasingly important role for the industry as a substitute for docking surveys at agreed intervals or occasional surveys of hull damage.

This inspection was the first of its kind, with the test survey performed twice. A remotely operated drone performed an in-water survey with a BV surveyor onboard the vessel. In parallel, BV also tested the capability with its own remote inspection solutions using full HD live video footage from MaDfly. This enabled BV to carry out the survey remotely without any attended surveyor onboard with live streaming, as well as video and audio recording and photo options.

Bureau Veritas has noted the following benefits of using this system:

  • Safer operations as divers do not have to be in the water
  • Reduction in preparation time – with a single operator and limited equipment
  • High-quality pictures from the drones
  • Reduced risk of disturbance to ship operations

MaDfly CEO, Thierry Guillot, commented, “MaDfly’s team is delighted to be the first company in the world to achieve a vessel survey with a mini ROV for BV. Even more for a Brittany Ferries’ vessel as they supported us from the very first day. New technologies are improving daily to achieve more and more maintenance services in a safer and more cost-effective way.”

Arnaud Le Poulichet, Technical Director for Brittany Ferries, said, “Brittany Ferries has always invested in research and development and this partnership is a success. This underwater inspection with a mini ROV demonstrated the technical relevance of this method and reduced the inspection time.”

Laurent Leblanc, Senior Vice President Technical & Operations for Bureau Veritas Marine & Offshore, said, “Underwater remote surveys improve safety and reduce risk, time and costs to produce high-quality results. Maintaining the integrity and safety of a ship is a crucial task. Today, technology brings digital classification to another level, providing new opportunities and options to our clients.”

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BV claims first with full remote ‘in-water’ hull survey by ROV


Prices of dry freight shipping containers have doubled over the past year to reach historic highs but will moderate over the next few years, according Drewry’s recently published Container Census & Leasing Annual Review and Forecast 2021/22 report.

Prices of dry freight shipping containers have doubled over the past year to reach historic highs but will moderate over the next few years, according Drewry’s recently published Container Census & Leasing Annual Review and Forecast 2021/22 report.

Dry box newbuild prices rallied strongly in 2020 from the lows of the prior year to reach their highest level since 2011 by the fourth quarter, with a YoY gain of 75%. Then by 2Q21 40ft high cube containers breached the $6,500 threshold, more than doubling over the year, to reach their highest value since Drewry started monitoring container equipment prices back as far as 1998.

“Pricing has been driven by soaring demand for newbuild containers as shipping lines and lessors have been seeking to rebuild fleets in the face of chronic equipment availability due to widening disruption across the container supply chain,” said John Fossey, Head of Container Equipment & Leasing Research at Drewry. “But also increased input costs, particularly for Corten steel and flooring materials have also played a part. We expect dry box prices to peak in the third quarter and to soften thereafter, easing further over subsequent years as trade normalises.”

In sharp contrast, reefer and tank container prices changed little over 2020, but rallied in the first six months of 2021, up 6.5% and 40% YoY, respectively, in 2Q21. Prices of these specialist container types have different cost drivers to dry containers and are expected to continue rising although at a moderate pace over the next few years.

Newbuild container output has soared through the first six months of 2021, with China dry box output climbing 235% YoY to 3 million teu and reefer production more than doubling to 260,000. Drewry expects full-year production to reach 5.2 million teu, representing a 67% YoY rise. The main buyers of this equipment have been lessors, accounting for 68% of newbuild purchases. But Drewry expects carriers to invest more in their own container pools over the near term given their much improved levels of profitability.

Despite record newbuild output, insatiable demand for equipment raised utilisation of the leased fleet across all equipment types to over 99% by the second quarter of 2021, its highest level on record. This drove dry box LTL per diem rates to their highest level in 10 years, doubling over the year, bringing investment cash returns (ICRs) back to pre-pandemic levels.

“Looking ahead, dry box per diems are forecast to rally 65% in 2021, the steepest rise since Drewry started recording lease rates in 1990,” added Fossey. “This acceleration will outpace that of newbuild prices as the lagging effect means that lease rates will stay higher for longer, lifting ICRs further. But thereafter we expect some softening of returns.”

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Container equipment prices set to moderate says Drewry


Norway-based ship designer and builder VARD and Rem Offshore have announce an order for two Construction Service Operations Vessels (CSOVs) with an option for two additional vessels. The contracts for the firm two vessels have an indicative total value of €100m.

Norway-based ship designer and builder VARD and Rem Offshore have announce an order for two Construction Service Operations Vessels (CSOVs) with an option for two additional vessels. The contracts for the firm two vessels have an indicative total value of €100m.

The CSOVs are tailor-made for world-wide services and maintenance operations at offshore wind farms. The VARD 4 19 design, developed by Vard Design in Ålesund, Norway, is a highly versatile platform for all offshore windfarm support operations, focusing on onboard logistics, security, comfort, and superior operability.

With a length of 85m and a beam of 19.5m, the vessels will have a height-adjustable motion-compensated gangway with elevator system, a height-adjustable boat landing system, and a 3D-compensated crane. The CSOVs will have an accommodation for 120 persons on board.

The first vessel will be delivered from VARD in Norway in first half of 2023. The hull will be built at Vard Braila in Romania. The second vessel will be built and delivered by Vard Vung Tau in Vietnam, scheduled for delivery in 2024. VARD’s specialised high technology subsidiaries will be involved with major deliveries onboard, and in the shipbuilding process of the vessels.

Rem Offshore’s Chairman, Aage Remøy said, “Rem Offshore has during the last few years increasingly focused attention on building a sustainable platform for growth in offshore wind. Our shareholders are driving this development together with our Rem colleagues onshore and offshore. We are proud to continue our newbuild programme in Norway and support the local maritime industry.”

VARD CEO Alberto Maestrini commented, “We are proud to be chosen as the preferred partner for Rem Offshore in this exciting project, and we are looking forward to working together with their team. These contracts confirm VARD’s leadership in the CSOV market, both in terms of innovative ship design, breakthrough technologies and shipbuilding quality.”

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VARD wins 2+2 CSOV order from Rem


damage from drone attack by Iran on tanker
Damage after the drone attack (US Central Command released photos)

PUBLISHED AUG 6, 2021 5:34 PM BY THE MARITIME EXECUTIVE

 

U.S. Central Command issued a detailed report directly linking an Iranian “kamikaze UAV” (unmanned aerial vehicle) to the attack on the tanker Mercer Street that killed the captain and a security guard. In addition to identifying the method of the attack and its damage, the USCENTCOM revealed the two prior failed attacks had been attempted against the Mercer Street on the prior day.

The summary report made public reviewed the analysis conducted by the U.S. Navy as well as additional work at the U.S. Fifth Fleet headquarters in Manama, Bahrain, and subsequent further testing and verification at a U.S. national laboratory.

The report concludes that there was a “confluence of multiple components with very specific and matching identities to previously exploited (and known) Iranian one-way attack UAVs,” said CENTCOM spokesman U.S. Navy Capt. Bill Urban. “The use of Iranian designed and produced one-way attack kamikaze UAVs is a growing trend in the region. They are actively used by Iran and their proxies against coalition forces in the region, to include targets in Saudi Arabia and Iraq.”

CENTCOM revealed for the first time that the crew of the Mercer Street reported two attacks via distress calls on the evening of July 29. Neither of the explosive UAV used in the first attacks reached the tanker, instead impacted the sea near the vessel. The crew, however, retrieved from the water small remnants of at least one of the UAVs, which they later shared with the U.S. investigators.

The following day, July 30, the Mercer Street was again attacked with a third UAV which CENTCOM reports was loaded with a military-grade explosive. The explosive detonation following the UAV impact created an approximately 6-foot diameter hole in the topside of the pilot house and badly damaged the interior. Investigators found indications that the drone was carrying a Nitrate-based explosive, identified as RDX, indicating the UAV had been rigged to cause injury and destruction.

 

 

“This second attack required calculated and deliberate retargeting of the Mercer Street by Iran,” said Urban. The crew of the tanker reportedly went to a safe location after the attack reporting it to the authorities.

The USS Ronald Regan along with its escort the USS Mitscher was ordered to contact the Mercer Street and a U.S. drone was also deployed. An explosive ordinance team from the Regan was flown to the Mercer Street working with a U.S. zodiac to gather debris and also to verify that no explosive danger remained on the tanker.

According to CENTCOM, the subsequent forensic analysis verified that debris including several pieces recovered from the third UAV, including a vertical stabilizer (part of the wing) and internal components which were nearly identical to previously collected examples from Iranian one-way attack UAVs. Further, “the distance from the Iranian coast to the locations of the attacks was within the range of documented Iranian one-way attack UAVs,” said Urban.

The American report came as the UN Security Council was reported to be discussing the recent attacks. In addition, earlier today the foreign ministers of the G7 countries issued a joint statement saying in part, “We condemn the unlawful attack committed on a merchant vessel off the coast of Oman, which killed a British and a Romanian national. This was a deliberate and targeted attack and a clear violation of international law. All available evidence clearly points to Iran. There is no justification for this attack.”

Reports indicate that elements within Israel’s new coalition government are strongly advocating for a retaliatory attack. Israeli Defense Minister Benny Gantz said during an interview that his country was prepared to attack Iran while calling on the UN and global community to coordinate a far-reaching response to Iran’s aggression.

 

 

 

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https://www.maritime-executive.com/article/photos-u-s-centcom-links-iran-to-attack-on-mercer-street


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