The ship recycling market has once again heated up, with ship owners financially incentivized more than ever to sell their older tonnage. In its latest weekly report, GMS (www.gmsinc.net), the world’s leading cash buyer of ships said that “Sub-continent markets continue to fire on during the summer / monsoon months, as firmer steel plate prices and an increasing lack of available tonnage has invariably pushed sub-continent offerings on to previously unthinkable levels. Not since the boom year of 2008 have we seen levels quite so high, and as the mythical USD 600/LDT draws ever closer, we will certainly see some fresh sales records being set from over the past decade. Notwithstanding, what comes up must eventually come down and many in the industry are now starting to fear that the markets may have peaked already and are now adjusting their levels in anticipation of some kind of an adjustment in the immediate future”.

Source: GMS

According to GMS, “to see levels DOUBLE over the course of just the last year alone, is quite an impressive and unexpected feat. The supply of tonnage has been increasingly centered around offshore units and tankers of late viz. smaller bunkering tankers, MRs, Aframax tankers, and even FSUs, along with a variety of offshore vessels – including MOPUs and drill ships. Due to the ongoing global Covid-19 restrictions, the expected summer slowdown has yet to really occur and most yards across the sub-continent recycling markets remain open and ready to accept vessels, as opposed to the slowdowns experienced during the seasonal retreat of yard laborers back to their hometowns over the summer / monsoon months. Similarly, shipowners and shipbrokers continue to do business at these fantastic numbers whenever they can, especially as freight markets also remain strong across the dry bulk and container sectors. Finally, global vaccine rates need to pick up, in order to combat the concerning spread of the Delta variant of the virus as well. And it will certainly be interesting to see how countries like the U.K., Israel, and the U.S.A. fare, now that restrictions are easing as vaccine rates hit the magic number in excess of 70% for herd immunity to take hold”, GMS concluded.

In a separate note, shipbroker Clarkson Platou Hellas said that “the feel-good factor has not just been felt here in England after the football teams heroics, but also across the strong buying appetite being felt across the sub-continental markets. Despite many predicting a fall, this is yet to materialise and with the lack of workable tonnage looking set to continue until at least the end of the year, demand should remain strong resulting in continued aggressive rates. Surely, it is only a matter of time for the much anticipated USD 600 per ldt level to be reached for a conventional ship which would be a remarkable recovery from this time last year where the market was in a depressed state due to the Covid restrictions in place. The Pakistani recyclers are making a sterling effort to compete with their counterparts in Bangladesh, however, are still a little short in their indications, whereas the Indian recyclers are still unable to mount any competitive levels”, the shipbroker said.

Source: Clarkson PLC

Allied Shipbroking added that “the robust activity in the ship recycling market resumed this past week, despite that fact that we are within the monsoon period and the fact that the market has almost completely dried up of dry bulk and containership demo candidates. The uninspiring freight scene on the side of tankers and on in other secondary sectors, in combination with the record highs in offered scrap prices have maintain the interest in the ship recycling industry vivid. Enquiries have started once again to ramp up in Bangladesh, with local scrapyards offering very attractive scrap prices, while several slots are again available.

Source: Allied Shipbroking

At the same time though the COVID-19 resurge has obliged the government to announce fresh lockdown measures, trimming appetite. Meanwhile, an improved picture is witnessed in India as of late, with interest for ship recycling having started to increase slowly but steadily. The domestic players are still behind competition on the pricing front, but interest from offshore and tanker owners seem to have revived. Finally, a strong market has been seen in Pakistan as well during the last few weeks, with Gadani scrapyards attracting owners due to robust fundamentals. Actual businesses may well have remained modest, but it is expected that more activity will be seen in the coming weeks”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide

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https://www.hellenicshippingnews.com/ship-recycling-market-is-red-hot/

Decarbonization is now one of the most critical challenges for the maritime industry apart from the global pandemic COVID-19 and oversupply of ships. The pathway is already there and industry players are taking the necessary steps to reach the goal for the reduction of GHG emissions from shipping by at least 50 percent by 2050. Shipyards, engine manufacturers and energy companies are upgrading their operations and technologies to achieve commercially viable zero emission maritime transportation.

IMO concluded its 76th Marine Environment Protection Committee (MEPC) during 10-17 June with discussions focusing on actions to tackle climate change, including the adoption of short term measures to reduce carbon intensity of ships and on the more general way forward. This report summarizes the latest trends seen this year in the transition to a greener future for shipping. It also covers the concluding remarks of MEPC 76 and some statistical data on the to-date CO2 performance of the maritime industry.

CO2 Emissions from 2012 to 2018
According to the fourth IMO greenhouse gas study, total CO2 emissions grew by almost 10 percent from 2012 to 2018, accounting for 2.89 percent of total global anthropogenic emissions. The analysis confirms that while total emissions have grown, the carbon intensity of shipping improved between 2008 and 2018, both for international shipping and for the majority of ship types. On average, carbon intensity for international shipping was between 21 and 29 percent lower in 2018 than in 2008, the figures show.

According to research by the International Council on Clean Transportation, published November 2020, the proposed short-term measures to reduce carbon intensity fall into two categories: operational and technical. Ships will be required to address both areas starting in 2023 to help meet IMO’s minimum 2030 carbon intensity goal. Main engine power limitation (EPL), a semi-permanent, overridable limit on a ship’s maximum power, is believed to be the easiest way for older ships to meet Energy Efficiency Existing Ship Index (EEXI) requirements.

Chart 1: Total CO2 Emissions, Year 2020 per Load Area, for VLCC, Suezmax, Aframax, Panamax, MR Fleets. Signal Ocean Platform data.

Decarbonization solutions: The role of data in call for action
Solutions to reach decarbonization exist and will continue being developed. Data plays a significant role in increasing transparency and pushing for prompt actions. It won’t just be IMO deadlines set on a future date anymore. Satellites, remote sensing technologies, and artificial intelligence will monitor worldwide greenhouse gas emissions in real-time and pinpoint them to specific sources: individual ports, ships, services, and businesses. Such authentic and unprecedentedly detailed emissions data will tighten regulations and shed new light on ESG integration and investing.

Data monitoring is essential for all players, owners and charterers alike, to assess emissions historically and identify load / discharge areas with the highest and lowest CO2 emissions levels per vessel segment. With this method, shipping players can optimize fleet deployment and immediately address short term factors, such as slow steaming and triangulation. By optimally selecting ships for cargoes the industry can, starting today, achieve a direct reduction in the CO2 emissions of shipping. Digital transformation in commercial shipping is now crucial to facilitate decisions that balance profitability with environmental footprint.

Chart 2&3:Average Triangulation Time and CO2 emissions per vessel class. Signal Ocean Platform data.

CO2 emissions monitoring with the Signal Ocean platform
In December 2020,a new tool in the Signal Ocean Platform was launched covering the tanker and dry bulk segments. Industry participants are now able to consider the CO2 impact when chartering ships alongside their Time Charter Equivalent (TCE) rates. Key influencing factors include not only the emissions during the laden sea passage of a voyage, but also ballasting, route deviations and other operations, all in conjunction with technical ship characteristics, age, shipyard/design, use of scrubbers and type of fuel used.

The Signal Ocean Platform estimates CO2 emissions from AIS data converted into voyages, where all stops for bunkering operations, idle times, repairs, loads and discharge operations have been taken into account. At sea, ballast and laden legs and SECA navigation times are clearly defined. Models that estimate consumptions for each distinct operation have included vessel particulars including country built, year built, scrubber fitting, operational conditions and vessel speeds. Fuel consumption is mapped to different types (VLSFO, MGO, HSFO) based on the area that vessels have been trading as well as the information about if a vessel is scrubber fitted or not and emissions are derived from consumptions using IMO references.

Statistics data on wet CO2 emissions reduction
The below geographical distribution (Chart 1), using The Signal Ocean Platform data, demonstrates the level of CO2 maritime emissions for the year 2020, million tons per load area, for VLCC, Suezmax, Aframax fleets compared to Panamax and MR fleets. The same dataset can be used to aggregate information by segment, route or industry player (charterer or commercial operator), as a useful proxy to their comparative environmental performance. Such perspectives can enable participants to track and adjust their operational practices and decision making as they look to achieve the interim 2030 IMO objectives.

Chart 4: Speed report per vessel class. Signal Ocean Platform data.

Triangulation is key
While we often consider the laden leg when we are thinking about CO2 emissions and the impact on the environment, the ballast leg has almost the same impact. Optimizing ballast legs has a different order of magnitude impact compared to Engine types, Age or Fuel. Of course there are trading routes that allow for higher levels of triangulation, therefore a reduction of emissions, and others that don’t. Typically the smaller the vessel-class, the higher the average triangulation and lower level of emissions. The below charts 2&3 with The Signal Ocean Platform data demonstrate the average triangulation time per vessel class and the level of shipping emissions. In Chart 3, we normalized CO2 emissions per ton mile to compare the average triangulation time and CO2 emissions between large and smaller ship sizes.

The figures for year 2020 indicate highest average triangulation time for MR2: 59% and MR1:57% (chart 2), however, taking into account cargo quantity transported and the number of voyages per vessel size, normalized CO2 per ton mile (chart 3) appear the lowest for MR2s and Aframaxes.

The impact of vessel speed on the reduction of CO2 emissions
The industry is used to adjusting the speed based on market conditions as shown at the chart 4 below. The commercial decision of vessel speed follows the volatility of the spot freight market and market expectations for future earnings. It is worth noting that establishing slow steaming could have a significant impact on the overall CO2 emissions. With The Signal Ocean Platform, users can navigate and monitor cases of CO2 savings in the ballast and laden leg of voyages adjusting vessel speed. We can say that with a 1 knot reduction in vessel speed in the laden leg, there is potential to save around 2 millions tons of CO2 on a yearly basis for tankers, however this can fluctuate with market conditions and is strongly influenced by the decisions of commercial operators as they navigate the challenges of supply and demand.

The steps for lower CO2 emissions transition
The establishment of alliances for zero emissions is a milestone for the industry and contributes to the development of green shipping. One of the most powerful alliances is the “Getting to Zero Coalition” . The coalition builds on the Call to Action in Support of Decarbonization launched in October 2018 and signed by more than 70 leaders from across the maritime industry, financial institutions and other stakeholders, as well as on the Poseidon Principles.

In June, the governments of Denmark, Norway and the United States, along with the Global Maritime Forum and the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping announced that they will lead a new Zero-Emission Shipping Mission as part of Mission Innovation. The target scope is to accelerate international public-private collaboration to scale and deploy new green maritime solutions, setting international shipping on an ambitious zero emission pathway. The mission will also be supported by the governments of India, Morocco, the U.K., Singapore, France, Ghana, and South Korea.

The international advisory panel on maritime decarbonization
Apart from the existence of above alliances for the transition to green friendly decisions, Singapore has emerged with a significant presence to smooth the procedure towards 2050.

The International Advisory Panel on Maritime Decarbonisation (IAP) formed in July 2020 by the Singapore Maritime Foundation (SMF), with the support of the Maritime and Port Authority of Singapore (MPA), has identified nine pathways for decarbonisation, including policy options to accelerate the transition and ways in which Maritime Singapore can support the industry’s decarbonisation. To achieve this vision, the IAP has recommended focusing on four strategic objectives: (1) harmonise standards; (2) implement new solutions; (3) finance projects; and (4) collaborate with partners.

IMO MEPC 76 concluding remarks
The MEPC 76 adopted amendments to the international Convention for the Prevention of Pollution from Ships (MARPOL) Annex VI that will require ships to reduce their greenhouse gas emissions. These amendments combine technical and operational approaches to improve the energy efficiency of ships, also providing important building blocks for future GHG reduction measures.

The new measures will require all ships to calculate their EEXI and establish their annual operational carbon intensity indicator (CII) and CII rating. Carbon intensity links the GHG emissions to the amount of cargo carried over distance travelled. Ships will get a rating of their energy efficiency (A,B,C,D,E – where A is the best). A ship rated D or E for three consecutive years is required to submit a corrective action plan to show how the required index would be achieved.

The amendments of MARPOL Annex VI are expected to enter into force on 1 November 2022, with:

The Energy Efficiency Existing Ship Index (EEXI), applicable from the first annual, intermediate or renewal IAPP survey after 1 January 2023
The operational Carbon Intensity Indicator (CII) rating scheme, taking effect from 1 January 2023
A review clause requires the IMO to review the effectiveness of the implementation of the CII and EEXI requirements, by 1 January 2026 at the latest, and, if necessary, develop and adopt further amendments.

Reduced fuel consumption and Emissions: The enhanced Ship Energy Efficiency Management Plan (SEEMP) stipulates that an approved SEEMP will need to be kept onboard from the 1st of January 2023. The IMO’s SEEMP (Ship Energy Efficiency Management Plan) guidelines suggest a variety of options to improve fuel efficiency – from speed optimisation, optimised weather routing to timely hull maintenance, engine load efficiency.

Decarbonization fund
Recognizing the R&D gap, the industry has proposed to the IMO a new, industry funded, research and development effort. The International Maritime Research and Development Board (IMRB) is a USD 5 billion program, governed by the IMO, to coordinate and fund applied R&D and prototype development to catalyse the introduction of zero-carbon fuels and technologies in the maritime sector. Studies show that this dramatic increase in funding would enable the development of commercially viable low-carbon/no-carbon ships by the early 2030s. Ten IMO Member States are currently co-sponsors of the IMRB proposal. ICS, which represents 80% of the world’s merchant fleet, has highlighted that growing uncertainty is leading to a reduction in confidence about R&D investment.

Carbon tax: A priority for the maritime industry
Several trade groups, representing more than 90% of the world’s merchant fleet, have submitted a proposal to shipping’s United Nations regulator calling for it to prioritize a carbon tax for the industry. There is a call from Maersk for a CO2 tax on marine fuels of at least $150/t, which would almost double the cost of VLSFO, while Trafigura has asked even higher at $250-$300/t. There is also a call for a $100/t a carbon dioxide tax by 2025, ratcheting up every five years, from the Marshall Islands and Solomon Islands. The discussion will resume at the Committee’s next session.

The roadmap to ‘’zero carbon bunker fuels”
Shipping’s fuel of the future must produce lower or zero emissions and also have enough power to support the voyages of large sized ships around the world. The fuel type must be storable, transportable and affordable. Shipowners are now weighing the pros and cons among ammonia, hydrogen, LNG, biofuels, methanol and nuclear.

The World Bank published in April the first report ‘’The Potential of Zero-Carbon Bunker Fuels in Developing Countries” and identified two alternative fuels, ammonia and hydrogen as the most promising for zero carbon bunker fuels for shipping. The second report, “The Role of LNG in the Transition Toward Low-and Zero-Carbon Shipping”, identifies that LNG will play a limited role in the decarbonization process, emphasizing its specific niche applications on pre-existing routes or in specific vessel types. The reports evaluate that by transitioning to zero carbon shipping many developing and developed countries, especially those with large renewable energy resources, can break into a future zero carbon fuel market. The report illustrated some present initial case studies for Brazil, India, Mauritius and Malaysia.

The World Bank underlines that zero carbon fuels will need to represent at least five percent of the bunker fuel mix by 2030 to put shipping on a GHG trajectory consistent with the Initial IMO GHG Strategy, as well as the Paris Agreement’s temperature goal.

The challenge for 2030 and 2050 milestones
The maritime industry faces an unprecedented challenge in complying with the IMO’s targets for decarbonization even before 2030 and 2050 as owners and charterers need to demonstrate that the vessels they buy and operate are high performers and that less efficient ships are subject to performance improvements. Shipyards too, will need to prioritise higher efficiency vessels and may have to improve their standard designs to achieve the minimum acceptable Carbon Intensity Indicator (CII) levels. The main focus so far has been on the impact of the Energy Efficiency Existing Ship Index (EEXI), however, CII could have a dramatic impact on the marketability of vessels as it creates a market mechanism for charterers, financiers and regulators to grade the performers. There is already an urgent call of action from shipping to governments for the acceleration of decarbonization with a welcomed fund for a USD 5 billion R&D to be led by a new International Maritime Research and Development Board (IMRB), with many nations stepping up to support the proposal. The next decade will revamp the maritime industry and scale up all the necessary steps for the transition to “Green Future’’.

This CO2 shipping market report for the evolution of reducing GHG emissions was produced using insights, data and reports from the Signal Ocean platform and other trustworthy sources.

To find out more about The Signal Ocean platform and our CO2 tool, contact us here 
Source: The Signal Group, By Maria Bertzeletou (https://www.thesignalgroup.com/newsroom/maritime-decarbonization-reducing-co2-emissions-in-shipping)

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https://www.hellenicshippingnews.com/on-the-path-to-decarbonize-shipping-reducing-co2-emissions-and-achieving-a-sustainable-maritime-industry/

In its latest weekly report, shipbroker Allied Shipbroking said that “undoubtedly, we are amidst one of the best rallies seen for many years now in the dry bulk sector, with many market participants already anticipating a similar trend to take place during the 2nd half of the year. Both market sentiment and various momentum metrics support the idea of a “strong” trajectory in shipping market. However, under the current tail-risk regime, all this cannot be taken for granted.

According to Allied’s Research Analyst, Mr. Thomas Chasapis, “the recent spikes of the COVID-19 Delta variant spread have quickly reminded us that the recent postpandemic recovery is still very fragile and at risk of any negative developments. Moreover, the fear of rising inflation can easily shift the monetary mechanisms and transfer the pressure onto global economic growth (and as a result in trade). On the dry bulk sector, throughout the 1st half of this year, the spot freight market has been the barometer for the current abundant bullish sentiment. The steep upward track in many core indicators is but a mere reflection of a hefty recovery from the side of earnings. A robust and fundamental change in the supply/demand dynamic took place which has been the driver to this and not some exaggerated kneejerk movement with over-speculative and over-enthusiastic plays that the shipping markets are so prone to”.

Source: Allied Shipbroking

Chasapis added that “on the other hand, we could say that there is seemingly a sense of “conservatism”, partially at least. Given the current spot/period TC numbers, while taking into considerations the current ease of access to finance and SnP market liquidity, asset price levels are somehow still lagging their respective freight figures. This, of course can have multiple interpretations. We may assume that this type of conservatism can help overall stability, with the idea of less exposure to potential market shifts and overshooting what the market will do over the next couple of months. However, lagging prices can result in higher price jumps in intermittent periods which could inevitably be a source of instability”.

Allied’s analyst adds that “getting back to the spot market, while measuring the recovery from a different angle, we have mentioned in many different situations in the past that the average figures can be somehow misleading and “skew” perceptions. This is because a periodical strong market can boost average returns, but it has not been taken into consideration that this periodical trend can be narrowed to only a fraction of the fleet and involves those market participants of a given size that have part of their fleet open and can afford taking risks and speculate in any potential market shifts. That is the difficult part of having a homogeneous sentiment over all parties involved of various types of units and fleet profiles”.

Source: Allied Shipbroking

“That is a key step forward that has been made in the dry bulk sector, especially for medium to smaller sizes. In the Panamax, Supramax and Handysize units, looking at the dispersion of freight rates on a year-to-date basis, almost 75% of the values for all these size segments are above the highest figures noted respectively in at least a 3-year comparison. A good market for everyone then. All-in-all, the upcoming months will be very interesting. The recent trends in period TC rates and FFA contracts have built a strong optimism for the market. If we are not about to see any further excessive peak numbers, we will probably remain on a “good” track. That is why, we should not be in hurry to take seasonality pattern assumptions of recent years as a direct link, as we are in a different market regime. Finally, even in a relatively “stagnant” freight market, the upward pressure will theoretically continue on asset prices until they reach be on par with the respective buying appetite”, Chasapis concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide

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PUBLISHED JUL 15, 2021 3:47 PM BY THE MARITIME EXECUTIVE

The non-operating container ship owner Seaspan Corporation announced Wednesday that it has raised $750 million in “blue”-branded bonds, up 50 percent from a planned $500 million issuance. The funds will be used for sustainability-linked purposes in line with a previously-released “blue transition bond framework,” which names LNG as the transition fuel of choice for the short to medium term.

In March, Seaspan entered into an agreement to build ten new 15,000 TEU dual-fuel LNG powered boxships, with delivery scheduled for the first half of 2023. They will be chartered to a major shipping line for 12 years. It ordered ten more 7,000 TEU dual-fuel LNG boxships in early July for long-term charter to Zim.

According to Graham Talbot, Seaspan’s CFO, the company has invested $1 billion in containerships, all attached to long-term charters that will bring in a combined $1.8 billion of contracted cash flow over time. This managed-risk strategy is part of the company’s approach to obtaining an investment-grade credit rating, Talbot said.

The incentive for the upgraded status is strong: Seaspan’s latest bonds pay an interest rate of 5.5 percent, above the prevailing rate of 2-3 percent for investment-grade corporate bonds. Seaspan and its holding company, Atlas, are raising large sums to build a targeted $2.5 billion portfolio of vessel investments.

The $750 million bond issuance reflects investor interest in the exceptional financial opportunities in the global container freight market, as well as a growing interest among financiers for “green” lending products. Seaspan’s bonds are designed to align with the International Capital Market Association’s Green Bond Principles and are informed by the Climate Transition Finance Handbook.

There is an active debate in the shipping finance community over LNG’s role as a green fuel or transitional fuel, Standard Chartered executive director Roger Charles told Platts in April. The Poseidon Principles – the green lending standard used by two dozen large shipping banks – notes concern about LNG’s role as a marine fuel, citing the climate-warming influence of methane leakage.

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https://www.maritime-executive.com/article/seaspan-raises-750m-in-blue-bonds-after-giant-lng-boxship-orders

PUBLISHED JUL 14, 2021 11:18 PM BY THE MARITIME EXECUTIVE

On the same day as the European Commission’s announcement of its decarbonization plans for shipping, including the status of LNG as a transition fuel, German carmaker Volkswagen announced that it is chartering four more newbuild LNG-powered car carriers.

Each year, Volkswagen loads 2.8 million new cars on ro/ros for delivery, using chartered space on hundreds of vessels making about 7,700 total departures from ports around the world. The company charters eleven car carriers for its own full-time use.

When delivered and added to its current roster of two LNG-powered ro/ros, the vessels will make VW the first automaker to transport most of its overseas sales using LNG, the company said. All four should be in service by the end of 2023, and they will be deployed on its North American service for deliveries between Germany and Veracruz, Mexico (and points between). On the return trip, the LNG-fueled ships will transport new vehicles destined for Europe. Their engines will be high-pressure injection models with no methane slip.

“In line with the Group’s commitment to e-mobility and climate-neutral production, the LNG fleet . . . represents a major contribution to making Volkswagen net carbon neutral by 2050,” said Simon Motter, Head of Volkswagen Group Logistics. “The new ships will also permit the use of non-fossil fuels in the future, thus reducing CO2 emissions even further.”

VW says that the switch to LNG is consistent with its climate goals. In Germany, the group has already switched all rail transport with Deutsche Bahn to green electricity, and it is extending this to transport throughout Europe. On coastal routes, the group already operates two car carriers with biofuel produced from plant-based residues, including waste oil from the food industry. The company estimates that its biofuel-powered voyages yield an 85 percent reduction in CO2 emissions on a well-to-wake basis.

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https://www.maritime-executive.com/article/vw-becomes-first-automaker-to-ship-most-overseas-exports-using-lng

PUBLISHED JUL 15, 2021 3:47 PM BY THE MARITIME EXECUTIVE

The non-operating container ship owner Seaspan Corporation announced Wednesday that it has raised $750 million in “blue”-branded bonds, up 50 percent from a planned $500 million issuance. The funds will be used for sustainability-linked purposes in line with a previously-released “blue transition bond framework,” which names LNG as the transition fuel of choice for the short to medium term.

In March, Seaspan entered into an agreement to build ten new 15,000 TEU dual-fuel LNG powered boxships, with delivery scheduled for the first half of 2023. They will be chartered to a major shipping line for 12 years. It ordered ten more 7,000 TEU dual-fuel LNG boxships in early July for long-term charter to Zim.

According to Graham Talbot, Seaspan’s CFO, the company has invested $1 billion in containerships, all attached to long-term charters that will bring in a combined $1.8 billion of contracted cash flow over time. This managed-risk strategy is part of the company’s approach to obtaining an investment-grade credit rating, Talbot said.

The incentive for the upgraded status is strong: Seaspan’s latest bonds pay an interest rate of 5.5 percent, above the prevailing rate of 2-3 percent for investment-grade corporate bonds. Seaspan and its holding company, Atlas, are raising large sums to build a targeted $2.5 billion portfolio of vessel investments.

The $750 million bond issuance reflects investor interest in the exceptional financial opportunities in the global container freight market, as well as a growing interest among financiers for “green” lending products. Seaspan’s bonds are designed to align with the International Capital Market Association’s Green Bond Principles and are informed by the Climate Transition Finance Handbook.

There is an active debate in the shipping finance community over LNG’s role as a green fuel or transitional fuel, Standard Chartered executive director Roger Charles told Platts in April. The Poseidon Principles – the green lending standard used by two dozen large shipping banks – notes concern about LNG’s role as a marine fuel, citing the climate-warming influence of methane leakage.

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https://www.maritime-executive.com/article/seaspan-raises-750m-in-blue-bonds-after-giant-lng-boxship-orders

PUBLISHED JUL 15, 2021 11:56 PM BY THE MARITIME EXECUTIVE

In another indicator of the booming shipbuilding market,  Korea Shipbuilding & Offshore Engineering (KSOE) – the holding company for Hyundai Heavy Industries – reports that it has already surpassed its annual sales targets.

With a new $400 million order for two new LNG carriers – on top of $800 million in orders for four LNG carriers announced earlier this week – the company has now raked in new sales totaling more than $15 billion in the span of seven months. This is more than the entire amount that its sales team brought in last year.

“KSOE will push ahead with a strategy to win more orders focusing on profits this year,” KSOE spokesman Park Joon-su told Yonhap.

The company is also expected to win a groundbreaking $2 billion contract from Maersk for a series of 12 methanol-fueled, 15,000 TEU container ships. One of the conglomerate’s subsidiaries won the contract for Maersk’s first methanol-powered boxship, a trial-size 2,100 TEU feeder, in a deal signed in June.

However, the outsize sales numbers may not translate into outsize profits – at least not right away, according to KB Securities analyst Jeong Dong-ik. The cost of steel plate is soaring, cutting into the profitability of the yard’s backlog of signed newbuild contracts. Given the rising cost, Jeong predicted a second-quarter operating loss for KSOE of about $500 million – and potentially more.

KSOE has also been dealing with a strike movement amongst its unionized workforce, which has been working without a contract for the past two years. On Wednesday, its union announced that it had reached a tentative pay raise agreement with KSOE covering last year’s wages, ending a one-week walkout.

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https://www.maritime-executive.com/article/hyundai-heavy-hits-its-annual-sales-target-five-months-early

PUBLISHED JUL 15, 2021 4:29 PM BY THE MARITIME EXECUTIVE

In what is seen as a significant step forward in the development of floating offshore wind farms, the WindFloat Atlantic project located off Portugal became the world’s first offshore wind farm to achieve class certification. The ABS Class Committee accepted three floating turbines from the projects, which is continental Europe’s first larger scale floating wind farm.

“It’s a historic first and, we believe, the first of many more to come,” said Matt Tremblay, ABS Senior Vice President, Global Offshore. “It underscores the potential of Class and industry working together for the safe adoption of new technologies. ABS has supported innovation in offshore energy and this landmark project underlines how we continue to support promising offshore technology”

ABS noted that it has been working closely with the project through all the phases of its development. The acceptance into class is the latest step in a process that began with the launching of the first demonstration platform at the site in 2011. ABS supported the development of the 2MW WindFloat 1 that was attached to the power grid in December 2011 and has made a significant contribution both to this project and the development of offshore floating wind in Portugal.

The WindFloat Project developed a new technology for the installation of offshore wind turbines at depths of more than 130 feet. The project developed a floating foundation, based on the experiences from the oil and gas industry, to support multi-MW wind turbines in offshore applications. The floating foundation is semi-submersible, anchored to the seabed. Its stability is due to the use of “water entrapment plates” on the bottom of the three pillars, associated with a static and dynamic ballast system.

“The WindFloat Atlantic project is again showing its technology reliability,” said Jose Pinheiro, Ocean Winds Southern Europe BU Country Manager. “Having achieved formal ABS classification for the three floating platforms is, therefore, an important milestone for the project shareholders and also for the offshore floating wind industry.”

The three 8.4MW floating turbines classed by ABS are SEMI Submersible Type units designed by Principle Power housing MHI Vestas turbines make a total of 25 MWs of floating offshore wind power.  Located approximately 12 miles off the coast of Viana do Castello, Portugal, the project has been developed in phases as a prototype for the float offshore wind sector. The installation of the first Windfloat Atlantic turbine on its floating platform took place in July 2019, Spain, making it the largest turbine ever to be installed on a floating platform. The first turbine was connected to the power grid at the end of the year, and the third turbine was moved to the site in May 2020.

The WindFloat Atlantic project was developed by the Windplus consortium, which is jointly owned by Ocean Winds. Which is a joint venture between EDP Renewables and ENGIE, along with Repsol, and Principle Power.

According to the project managers, floating foundations mean that offshore wind farms are not subject to the same depth restrictions as fixed structures and can be at any depth. With the development of larger turbines above 10 MWs and research focused on shallow water moorings, the floating technology may be an alternative in the future to traditional fixed-bottom technologies in intermediate water depths.

ABS is the leading classification organization for floating offshore wind and continues to lead the development of design standards and concepts for floating offshore wind turbine foundations. ABS certified the first commercial-sized semisubmersible floating offshore wind turbine and released the ABS Guide for Building and Classing Floating Offshore Wind Installations in 2013. ABS also was the first class society to venture offshore, certifying the world’s first mobile offshore drilling unit in 1958 and classing the first jackup, semisubmersible, drillship, FPSO, TLP and spar.

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https://www.maritime-executive.com/article/abs-classes-first-floating-wind-farm-advancing-technology-development

Shown here in dry dock in Marseilles, France, Carnival Dream is the latest Carnival Cruise Line ship to be adorned with a stunning new hull design, joining Carnival Magic and Carnival Glory which were completed over the past few weeks.

The eye-catching livery is inspired by design that debuted on the line’s newest and most innovative ship, Mardi Gras, while serving as an homage to maritime tradition with patriotic red, white and blue hues, also the colors of Carnival Cruise Line which proudly sails as America’s cruise line.

The next ship in line is Carnival Valor, which is currently in dry dock with work scheduled to be done by the end of July, marking the fourth ship to feature the new livery. Going forward, the new design will be added across all Carnival Cruise Line ships.

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Carnival Dream becomes latest Carnival Cruise Line ship adorned with new hull design

MSC takes its commitment to decarbonisation extremely seriously. However, this is a complex endeavour that requires commitment and long-term vision. To reach carbon neutral future is a long journey that will take years and significant investments with strategic partners and enablers.

Despite the disruptions to the supply chains and the huge demand for cargo transportation in an extremely challenging, congested and evolving market, the company continues to focus on improving energy efficiency in its fleet of over 600 ships.

• In 2020, MSC recorded a 44.3% reduction in relative CO2 emissions (compared to 2008 baseline).
• The ratio of CO2 emissions per ton of cargo the company moves is among the lowest in the industry – latest EEOI 13.98*.
• MSC operates one of the most efficient fleets in the industry – MSC Gülsün, the flagship of its latest class of vessels, emits just 7.49g CO2/ton/mile by design.
• The data reported in the EU MRV database reflects MSC’s leadership position (volume) in Europe and should be put into context with the amount of cargo carried – MSC deploys around 58% of its vessels and carries almost 64% of its TEUs on services calling the EU**.
• In 2020, MSC recorded that while its emissions rose by 1%, the amount of cargo moved increased by 3%***. This clearly indicates that MSC’s long term commitment to investing in low-carbon technologies and extensive new-build and retrofit programmes helps boost performance and minimise environmental impact.

MSC fully supports the IMO’s policy goals to decarbonise shipping and is actively exploring and trialling a range of alternative fuels and technologies on top of significant energy efficiency improvements across its fleet.

MSC believes some form of global market-based-measure, incorporating carbon pricing, could help the industry to decarbonise by reducing the price gap between fossil fuels and zero-carbon fuels as they become available. However, only with options at scale for commercially-viable low or zero-carbon vessels can carbon pricing be a truly effective tool to catalyse the shift towards a zero-carbon future for international shipping.

Further to the company’s own efforts to minimise environmental impact, MSC actively contributes to a number of industry and multi-discipline groups, coalitions and associations to accelerate decarbonising across the entire shipping sector.

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MSC position on emissions from shipping in the EU