BIMCO Archives - Page 12 of 15 - SHIP IP LTD

Dutch scrubber manufacturer Value Maritime is installing a CO₂ capture and storage unit on a 1,036 teu boxship, Nordica, belonging to Visser Shipping. The ship will be operated by X-Press Feeders. The landmark installation is expected to be completed next month.

Value Maritime’s system is based on patented technology to remove CO₂ from exhaust gas. The CO₂ is used to charge Value Maritime’s CO₂ battery, an onboard storage facility which can charge and discharge CO₂. The charged CO₂ battery will be offloaded in ports and transported to CO₂ customers such as the agricultural sector.

Value Maritime claimed it is the first company worldwide to install a capture and storage facility onboard a vessel in operation. Other companies are in a trial stage of similar technology, notably Kawasaki Kisen Kaisha and Wartsila.

“Installing the module will not only be beneficial for our clients, but will bring the maritime industry one step closer to targets set by IMO2030 and 2050,” said Christiaan Nijst, the co-founder of Value Maritime.

Malaysia’s Petronas and Japan’s Eneos have partnered up to jointly develop a clean hydrogen supply chain between the two countries, and to explore other hydrogen opportunities. The companies will carry out a technical-commercial joint study of a hydrogen supply chain which includes hydrogen production and its shipping in liquid form.

Petronas believes the development of liquid organic hydrogen carrier (LOHC) technology is fast gaining traction due to its chemically stable nature that allows for long-term storage and long-distance transport. The company said, the use of LOHC leverages existing conventional oil and petrochemicals infrastructure, which heavily reduces the need to develop new assets.

Petronas and Eneos will also explore low carbon hydrogen production from Petronas’ petrochemical facilities and in the future, green hydrogen produced by renewable energy.

“With emerging clean energy sources like hydrogen, innovation and collaboration with partners in technological development are key, as they contribute towards achieving cost competitiveness and scalability for wider use across businesses and industries,” said Adnan Zainal Abidin, Petronas gas and new energy executive vice president and CEO.

For this project with Petronas, Eneos has applied for funding from the Japanese government’s Green Innovation Fund, which sponsors decarbonisation projects and initiatives. While in Malaysia, the development of a hydrogen-based economy is set to complement future growth as the country prepares to transition towards a low carbon economy.

Previous container shipping cycles tended to end in vicious rate-cutting grabs for market share. In 2021, the most extraordinarily profitable year in liner history, rate topping rather than cutting is happening.

The rates announcement will stand for all the group’s brands including CNC, Containerships, Mercosul, ANL and APL.

Drewry’s composite World Container index increased by 1% or $97 to $10,083.84 per 40ft container yesterday, 309% higher than the same week in 2020.

CMA CGM recently recorded a record EBIT of $3.81bn for the second quarter, firmly putting it on track to post its greatest ever annual results.

Pouring cold water on the announcement, German liner Hapag-Lloyd insisted it had actually done similar for a number of weeks already.

“We have been doing this for some weeks and for the time being. We also believe that spot rates have peaked and we do not pursue further increases. We hope that the market will slowly start to calm down,” Tim Seifert, director of corporate communications at Hapag-Lloyd, told Splash today.

Commenting via LinkedIn on the surprise tactics by CMA CGM, the world’s third largest carrier, Bjorn Vang Jensen, vice president at container consultancy Sea-Intelligence, predicted some coffee will have been spilled in carrier boardrooms across the globe.

“One cannot but admire this brilliantly executed and deliciously diabolical ‘heads I win, tails you lose’ move,” Jensen wrote, going on to explain: “Worst case, CMA in isolation looks like a hero. Best case, the industry will be forced to follow – in which case CMA still looks like a hero. And best of all: lost in all the excitement is the fact that rates will remain sky-high, they just won’t increase further!”

A new container shipping report from BIMCO this week noted: “Years of low freight rates resulting in rigorous cost cutting by carriers have left them in a great position to maximise profits now that the market has turned. Looking to the future, they have proven adept at using their upper hand at the negotiating table to lock shippers into longer-term contracts at today’s higher freight rates.”

The Shanghai Containerized Freight Index (SCFI) – a key spot pricing benchmark – rose by another 65.51 points today to hit a new all-time high of 4502.65 points.

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CMA CGM startles rivals by vowing to stop spot rate increases for coming five months

Some of the biggest shipper names in the world are on the newly formed National Shipper Advisory Committee created by the Federal Maritime Commission (FMC) in the US, one of many measures American regulators and politicians are taking to try and tackle this year’s extreme supply chain crunch.

The committee is comprised of 24 members, evenly divided between those who export cargo from and those who import cargo to the US. It will advise the FMC on policies relating to the competitiveness, reliability, integrity, and fairness of the international ocean freight delivery system. Executives from the likes of Amazon, Ikea, Walmart, Cargill and Louis Dreyfus are on the advisory group.

“I and the other commissioners need rapid access to the perspectives of importers and exporters on the ground dealing with the realities of ocean shipping every day.  We also need them to meet and help guide our efforts and those outside the FMC to improve the system and make it easier, fairer, and more efficient to American shippers,” said FMC chairman Daniel Maffei.

Ships are being forced to drift outside Los Angeles and Long Beach as all anchorages are chock-a-block with the total number of boxships waiting for berth spaces to open up at America’s top two gateways set to hit a new all-time high of 50 ships today.

As of last night, the Marine Exchange of Southern California registered a record 49 boxships waiting for berth space in and around San Pedro Bay. More than 15 ships are due to arrive by the end of the weekend.

Giving an update on operations last month, Gene Seroka, the executive director of the Port of Los Angeles, said the challenge facing the entire supply chain amounts to “squeezing 10 lanes of freeway traffic into five lanes.”

The extraordinary congestion seen at America’s main two west coast ports is far worse than the port lockout days of 2002 and 2004.

When the ports of Los Angeles and Long Beach were locked out for 10 days and eight days in 2002 and 2004 respectively, ship queues never exceeded 30 vessels, and yet the the port lockdowns caused significant economic chaos.

“Record backups at the ports of LA/Long Beach are the major driver of delays that are effectively removing an estimated 20-25% of transpac capacity. Combined with still-surging demand for imports, these delays pushed Asia-US West Coast prices up 12% and past the $20k/FEU mark for the first time this week,” Judah Levine, head of research at online box platform Freightos stated in an update yesterday, adding: “As carriers again look to alternate West Coast ports like Oakland and now Portland, volumes have started causing backlogs in East Coast ports such as Philadelphia as well.”

New York-listed bulker owner Diana Shipping has entered into a new time charter contract with Koch Shipping for the 2009-built capesize Houston.

The charter commenced retroactively on August 30 and will run through to between July 15, 2022 and October 15, 2022, at a charter rate of $27,000 per day. In February 2019, Koch took the same ship on charter for 14 to 17 months at a rate of $10,125 per day.

Before starting its new charter with Koch, the Houston was with C Transport Maritime at $6,250 per day for the first 30 days and $12,400 per day for the balance of the time charter.

The Greek owner, with a fleet of 37 bulkers on a fully delivered basis, expects to generate around $8.51m of revenue on the minimum time charter period. Earlier this week, Diana