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The newly built Mark W. Barker, the United States’ first new Great Lakes bulk carrier in nearly 40 years, has embarked on its maiden voyage from Fincantieri Bay Shipbuilding in Sturgeon Bay, Wis.

“This is a monumental day for our company and the U.S. flag fleet as our much-anticipated freighter departs on her first voyage in what will be a long life of service on the Great Lakes,” said Mark W. Barker, President of The Interlake Steamship Company and namesake of the vessel—the company’s first new build since 1981. “The construction of this vessel, which was made from steel manufactured in Indiana, from iron ore delivered by vessel from Minnesota, reinforces our long-term commitment to shipping and delivering essential cargoes for our customers throughout the region.”

The River Class self-unloading bulk carrier is believed to be the first ship for U.S. Great Lakes service built on the Great Lakes since 1983. Measuring 639 feet in length (78 feet W, 45 feet H, 28,000 DWT), the ship will transport raw materials such as salt, iron ore, and stone to support manufacturing throughout the Great Lakes region.

It was designed jointly by The Interlake Steamship Company, Fincantieri Bay Shipbuilding (FBS) and Bay Engineering, complete with advanced vessel and unloading systems automation. Under construction since August 2019, the carrier was built by FBS’s nearly 700 trade workers and generated business for partnering contractors, vendors and suppliers. Major partners for the project included: American Bureau of Shipping (ABS); Cleveland-Cliffs, Bay Engineering (BEI); EMD Engines; Caterpillar; EMS-Tech, Inc.; Lufkin (a GE Company), Kongsberg and MacGregor.

(Photo: The Interlake Steamship Company)

The new ship departed the Sturgeon Bay, Wis. shipyard at 10:36 central time for its 110-mile journey to Port Inland, Mich. where its crew of 21 mariners will load stone to deliver to Muskegon, Mich. Once delivered, that stone cargo will go into ready-mix concrete production.

“This new vessel not only brings with it additional cargo carrying capacity and capabilities, it is the most versatile in our fleet and strategically sized to navigate into nearly any port on the Great Lakes,” said Brendan P. O’Connor, Vice President of Marketing and Marine Traffic at The Interlake Steamship Company. “The M/V Mark W. Barker will give us unmatched ability for cargo operations and to carry unique project cargoes because of both her square-shaped cargo hold and larger hatch openings. She truly was designed to be a vessel for the future.”

“We couldn’t be prouder to add this skillfully constructed vessel to our growing Interlake fleet,” said Barker, who was at the shipyard this week to personally wish the best to the ship’s crew fitting out the new vessel. “It has been genuinely inspiring to see the dedication and workmanship from all of those involved in this multi-year project, from the design, construction, final outfitting and successful sea trials. We are thrilled to add our newest U.S.-crewed, U.S.-built and U.S.-owned vessel to the Great Lakes fleet.”

Source: https://www.marinelink.com/news/us-first-modern-laker-begins-maiden-498334


In a mid-year report from the US Department of Energy’s (DOE) Energy Information Agency (EIA) said LNG exports increased by 12% in the first half of 2022, averaging 11.2bn cubic feet per day (Bcf/d), compared with second half of 2021.

They also broke down the total US LNG exports during the first five months of 2022, prior to the fire at a Freeport LNG facility in early June, which will be reducing export volumes for several months going forward. The EIA said that deliveries to the United Kingdom and European Union accounted 8.2 Bcf/d, amounting to 71% of total exports.

The EIA was estimating that the shutdown at Freeport LNG reduced US export capacity by an estimated 2.0 Bcf/d. During May, the Freeport facility loaded 20 vessels. For data on LNG vessel loadings, readers can find them at: https://www.energy.gov/fecm/articles/lng-monthly-2022

The growth in US at the present time was among many issues covered in a very thorough webinar presentation on LNG markets by Poten & Partners, which is active as a broker in the sector, but also offers extensive analytics on supply, demand and overall LNG market dynamics.  Poten analyst Kristen Holmquist, explaining Poten’s longer term outlook (going out 10 years) said that major growth areas will be in Europe, Northeast Asia- especially China, and Southeast Asia.

Poten pegs the overall market for LNG shipments at 400 million tonnnes annually (mta) in 2022, with growth up to 550 mta in 2032. China alone is expected to account for nearly 40 mta of the incremental growth- as LNG is substituted for coal.  India is expected to account for almost 25 mta of this increase. The US is likely to continue its front-runner status, with Poten saying that much of the new contracting for LNG sales, some with timeframes extending out 20+ years, is tied to US origins.

Over the next decade Poten sees the largest portion of supply growth coming from the US and Qatar with the two countries forecast to account for around 100 mta of 200 mta in supply growth between 2022 and 2032. Of this supply from the US would increase by around 60 mta and Qatar by around 42 mta tonnes year by 2032 with the US expected to overtake Qatar as the world’s largest supplier of LNG.

Holmquist, cautioned, “I think there could be some flexibility in that some US projects don’t get approved and more comes on in Qatar, but overall that’s about 100m tonnes of the 200m tonnes of increase in supply.”

Not surprisingly, estimates for European demand have been revised dramatically upward by events in Ukraine with European consumers scrambling to reduce their dependence on gas from Russia. Poten’s forecasters have increased their views of European imports from around 85 mta in the mid/ late 2020’s up to 110 mta, with some 18 mta – more than half of this growth, tied to consumption in Germany, predominantly, and Poland. This is set to drive demand for FSRUs read more here 

Source: https://www.seatrade-maritime.com/lng/us-overtake-qatar-top-lng-supplier


Under the new deal, HHI will provide technical assistance and consulting services in VLCC engineering to IMI, building on a collaboration which began in 2018.

The deal builds on an MoU between IMI, HHI, and Bahri for shipbuilding collaboration signed in June 2019 and a term-sheet for the technical service agreement signed in September 2019.

The agreement was signed by Dr. Abdullah Al Ahmari, Chief Executive Officer of IMI, and Mr. Ohmin Ahn, Executive Vice President at HHI, at the King Salman International Complex for Maritime Industries and Services in Ras Al-Khair, Saudi Arabia.

“We are pleased to further expand our partnership with HHI, one of our four founding JV partners and a key enabler of our progress to date. This agreement reflects HHI’s ongoing commitment to supporting our efforts to build a world-class shipyard capable of locally manufacturing VLCCs and other vessels, that will help drive the development of Saudi Arabia’s maritime industry,” said Ahmari.

Ohmin Ahn, said: “We are delighted to have signed this agreement with our partner, IMI. Working with IMI to leverage our technical expertise and facilitate knowledge transfer and capacity building, we are helping to contribute to the development of the Saudi maritime industry under Vision 2030.”

IMI is a joint venture between Saudi Aramco, Bahri, Lamprell, and HHI, and is the largest shipyard in the MENA region at nearly 12m sq m. It provides new build and maintenance, repair, and overhaul (MRO) services for commercial vessels, including VLCCs, Bulk Carriers, Offshore Support Vessels, and Offshore Jackup rigs.

Source: https://www.seatrade-maritime.com/shipbuilding/imi-and-hhi-sign-vlcc-technical-agreement


Brokers Poten & Partners European demand estimates have been revised dramatically upward by events in Ukraine with European consumers scrambling to reduce their dependence on gas from Russia. Poten’s forecasters have increased their views of European imports from around 85 million tonnes per annum (mta) in the mid – late 2020’s up to 110 mta, with some 18 mta – more than half of this growth, tied to consumption in Germany, predominantly, and Poland.

These countries, along with other European cargo receivers, are lacking the required facilities for receiving cargoes and there is a major role FSRUs to plug the gap.

Speaking on an LNG webinar Poten analyst Kristen Holmquist said: “In Germany alone, there are eight potential new projects, with two of those being onshore projects- but the rest are FSRUs.”

In talking about Europe more broadly, she said, “There’s a lot of activity, a lot of FSRUs being looked at…they are easier to start up, especially if you already have a port. It’s easier to ramp those up, and that’s what the region is looking for.” Noting the bigger decarbonisation trends on the horizon, she said, “It doesn’t have to be permanent; it’s easier to remove if renewables start to pick up more rapidly.”

Answering a question about what the future in Northwest Europe holds for FSRUs versus not yet constructed regasification terminals, Holmquist responded: “Not all these FSRU’s exist; we would be constructed new ones.” She said that in the longer term, out to 2032, there would be a need for onshore regas facilities.

However, turning again to what she called a “push pull with decarbonization” she asked, rhetorically, “Do you want to build an onshore regas terminal onshore if by 2040 you are not supposed to be using it anymore?” She said, “That’s why FSRUs are more attractive; when the contract is over, they can pull up their anchor and sail away…” to another engagement.

Recent concerns about reduced supplies from Gazprom have driven gas prices higher; however, short term cargo movements depend on price differentials between regions- also known as “arbitrage”. Greater price disparities enable vessel charterers to pay more for vessel hires.

Jefferies stock analyst Omar Nokta wrote, in a late July commentary to investors, that: “Higher prices are supportive of overall LNG shipping movements with liquefaction plants operating at high capacity, but tightened regional arbitrages have reduced spot shipping requirements following the latest price surge. Spot TFDE shipping rates are assessed around $44,000 per day as compared to 12-month time charter rates above $100,000 per day.”

Source: https://www.seatrade-maritime.com/offshore/european-lng-import-growth-set-drive-fsru-demand


Italian shipbuilding group Fincantieri continues to recover from the effects of the pandemic reporting record-high production volumes while the production increases and associated costs in part due to the war in Ukraine drove the company to a financial loss in the first half of 2022. Management however expressed confidence that they will be able to lower their ballooning debt while also re-focusing on core businesses to drive future growth.

“Second quarter results are negatively affected by the impacts of a strategic review of the non-core business portfolio, by the surge in raw materials prices caused by the Russian-Ukrainian conflict, and by other non-recurring items,” said Pierroberto Folgiero, the newly appointed chief executive and managing director for the group. He assumed his role on June 30 replacing long-term chief executive Giuseppe Bono.

Folgiero assumed the leadership as the shipyard group continues to be in a period of transition. Recent deliveries included two new cruise ships, Discovery Princess and Viking Mars, and a multipurpose offshore patrol boat for the Italian Navy, as well as the first patrol boat and second corvette for the Qatari Ministry of Defense. A total of eight ships from five shipyards were delivered in the first half of 2022, contributing to a 16 percent increase in net revenues to more than $3.5 billion.

The company, however, also reported declines in EBITDA, adjusted, and net income with a net loss of $237 million, driven in part by the record production and increasing costs. It also contributed to a more than $1.1 billion increase in the group’s debt since the end of 2021, reaching a total debt of more than $3.3 billion. Debt, they, however, forecasted as peaking and expected to improve at least slightly by year’s end.

“In the upcoming months, we will be fully committed in the core business, benefitting from the expected growth in defense and the resumption of the cruise market,” said Folgiero. Furthermore, we will pursue with great dedication those industrial projects fostering operational excellence both in Italy and abroad, while investing in our human capital.”

He predicted that the company’s results would improve in part as they deliver five additional cruise ships in the second half of 2022. He pointed to the increased production for those ships as well as the rescheduling of payments from the cruise company provided during the pandemic as impacting the short-term performance of the company. He also highlighted a rescheduled delivery from July to December and the associated financial costs.

All of the shipyard group’s segments are however reportedly showing positive trends. The group’s committed backlog stands at 93 vessels with deliveries scheduled to 2029 with a value of more than $24 billion. In addition, they have pending commitments for 20 additional vessels, including the first commitments in years for new cruise ships, with the potential for more than $10.5 billion in additional revenues. Other new orders included a third vessel for the U.S. Navy to be built by Fincantieri Marinette Marine in Wisconsin as well as two offshore vessels to be built by VARD in Norway.

The conflict in Ukraine was highlighted as a key driver of costs as it affected the steel supply chain and caused increased energy and natural gas costs. It also negatively influenced transportation and insurance costs for the group which builds sections in Romania and transferred them through the Black Sea to Italy where the yards complete ship assembly.

With the cruise industry continuing its comeback, management expressed confidence that with their focus on their core businesses the financial performance will improve. With the continuing delivery of cruise ships, they however are now the smallest segment of the orderbook, with 27 ships, versus 34 in naval orders and 32 for offshore and specialized vessels.

Source: https://www.maritime-executive.com/article/fincantieri-reports-financial-loss-as-production-reaches-new-record


Luxury yacht ION FEDRA ran aground or touched bottom in Gulf of Ornos, Mykonos island, Greece, in the afternoon Jul 26. Yacht’s hull in fore part was breached, she started taking on water and developed fore tilt. She was secured somehow, either berthed or by other means, with water ingress taken under control. Accident reportedly was caused by crew mishandling. Yacht AIS is either off or she’s registered under other name. Yacht LONE WOLF was mentioned, but judging from photos and video, it’s not the distressed yacht ION FEDRA.
Luxury yacht ION FEDRA, GT 214, length 33 meters, built 1999, flag UK, 10guests/5 crew, owner G. Kampanis.

 


The nationwide challenges for hiring and staffing have reached Alaska, where the Alaska Marine Highway System is working hard to fill positions – and has had to suspend at least one sailing due to a manning shortage.

The ferry Tustumena, which serves on the run out to the Aleutian Chain, has had to berth at Homer until at least Saturday. She had just returned to service July 16 after an extended yard period. According to AMHS, “a critical crew shortage required the vessel to stay in port for safety reasons.”

The ship had been running with a small crew since mid-July, but because AMHS cannot find enough replacement staff to cover “essential positions that are vacant due to illness or other qualifying needs,” it has fallen below the manning level needed. The agency said that staffing shortages have been a concern throughout the AMHS, as in the rest of the country.

To fill seagoing positions, AMHS has launched an “aggressive hiring campaign.” It has hired headhunters, attended job fairs in the Northwest, and even offered signing bonuses of $5,000, comparable to the current bonus amounts in the trucking industry. According to its site, it is focused on hiring for unlicensed positions in the deck and engine department, as well as support staff and stewards.

According to local KUCB News, the Tustumena is important for small fishing ports like Akutan and False Pass, which can’t accommodate the larger ferry Kennicott, the only other vessel on the route.

Tustumena is 58 years old, and the State of Alaska hopes to replace her within about five years’ time. However, no shipyards bid on the recent request for proposals for the construction of a replacement, according to Alaska House Speaker Rep. Louise Stutes.

The hiring and contracting difficulties compound the line’s challenges with financial stability. AMHS operates underserved remote communities with support from the state, and it has had to fend off intense budget pressure from the office of Alaska’s governor in recent years. A $30 million budget cut forced it to curtail service in Southeast Alaska in 2019, including suspension of winter service to Cordova.  It had to cancel plans for a refit for the ferry Malaspina, and it considered reefing her instead to save costs; she was ultimately sold to a private party for use as an attraction. In 2020, AMHS sold off two high-speed ferries to a Spanish operator at a discount. This year its budget was fully funded, thanks in large part to federal assistance, but it faces an uncertain political climate going forward.

Source: https://www.maritime-executive.com/article/staffing-challenges-loom-for-alaska-marine-highway-system


At the start of 2022, Shanghai Electric Wind Power (Group) Corporation awarded S.M.C. with a plan approval and site supervision contract for two SOVs that will be purpose designed and built for the Chinese offshore wind industry. The vessels are scheduled for delivery in the fourth quarter of 2023 and the first quarter of 2024.

S.M.C. will be working closely with Shanghai Electric – a leading provider of offshore wind turbines in China, Ulstein – a leading designer of SOV units and ZPMC – the builder awarded construction contract. Equipped with hybrid diesel-electric propulsion system that comes with a Battery Energy Storage System installed in addition to very high safety and comfort features, the vessels will improve the efficiency of service operations at Chinese offshore wind farms while reducing their carbon footprint.

In addition to the SOV project, S.M.C. was appointed to carry out plan approval and supervise the construction of a 1,600 tons crane wind turbine installation vessel in China in the beginning of 2022. Set to be jointly classed by the China Classification Society and Bureau Veritas, the self-elevating wind power installation platform is equipped with diesel-electric propulsion system with six diesel generators feeding three azimuth thrusters and two tunnel type bow thrusters. This is in line with efforts by the renewable energy industry to manage its environmental impact. Scheduled for completion by mid 2023, the vessel is capable of installing 20 MW wind turbines at up to 70 m maximum depth of water. The platform, which is independently developed, designed and built in China, is also capable of assembling wind hubs and blades on the main deck.

Source:https://www.bs-shipmanagement.com/media-centre/bsm-highlights/schulte-marine-concept-gains-foothold-in-chinese-offshore-wind-market/


New patrol boats were recently delivered to the Royal Thai Police and a law enforcement agency in Alabama. A new navy ship enters service with Saudi Arabia and construction starts on a logistical support vessel for Italy. The US Navy retires one of its oldest active amphibious ships but takes delivery of a newbuild surface combatant and places orders for additional floating assets for delivery within the next two decades.

Royal Thai Police welcomes new patrol boat into service

Photo: Incat Crowther

The Royal Thai Police recently took delivery of a new patrol boat built by local shipyard Seacrest Marine.

Chai Jinda measures 42 by 7.9 metres and is crewed by 22 personnel. Three MTU 16V2000 M86 engines drive fixed-pitch propellers to deliver a maximum speed of 35 knots and a patrol speed of 20 knots.

The boat also has a forward weapons mount for a 30-millimetre autocannon as well as a firefighting monitor.

Alabama’s Orange Beach Police takes delivery of patrol boat

Photo: Metal Shark Boats

Metal Shark Boats has delivered a new patrol boat to the Orange Beach Police Department in Alabama.

The all-weather-capable Marine 1 measures 38 feet (11.5 metres) long and is powered by three Mercury outboards. The electronics suite includes a radar and a rotating thermal camera.

Patrol boat pair handed over to Turkish Gendarmerie

Photo: ASFAT

The Gendarmerie General Command of Turkey has taken delivery of two new patrol boats built by local defence firm ASFAT.

The boats are the sixth and seventh in a series to be supplied to the gendarmerie. Each vessel has a length of 10.2 metres, a beam of 3.2 metres, a draught of 0.55 metres, and space for three crewmembers.

Two outboard engines will deliver speeds in excess of 35 knots.

Littoral combat ship Santa Barbara delivered to US Navy

Photo: Austal USA

Austal USA has handed over a new Independence-class littoral combat ship (LCS) to the US Navy.

The future USS Santa Barbara is the third US Navy ship to be named in honour of the city of Santa Barbara in California.

Three other Independence-class ships are currently under construction at Austal USA’s Mobile, Alabama facilities. The future USS Augusta was recently launched while final assembly is underway on the future USS Kingsville and modules for the future USS Pierre are under construction.

Saudi Arabia to commission second Al-Jubail-class frigate

The Royal Saudi Naval Forces frigate Al-Diriyah during its launching and christening ceremony in Spain, November 14, 2020 (Photo: Navantia)

The Royal Saudi Naval Forces will commission its newest frigate in a ceremony at the San Fernando facilities of Spanish shipbuilder Navantia on Tuesday, July 26.

Al-Diriyah is the second of a planned five Al-Jubail-class frigates being built by Navantia for Saudi Arabia. The frigates are variants of the Avante 2200 series.

The frigate has a length of 104 metres, a beam of 14 metres, space for 102 crew and other personnel, a speed of 27 knots, and an endurance of 21 days.

First steel cut for new Italian Navy support ship

Photo: Fincantieri

Italian shipyard Fincantieri has cut the first steel for the second logistic support ship (LSS) in a series slated for the Italian Navy.

The vessel will have electric motors, low-emission generators, and biological waste control systems. Its secondary functions will include humanitarian assistance and disaster relief.

Delivery of the second LSS is scheduled for 2025.

Sea trials begin for Royal Canadian Navy’s third Harry DeWolf-class patrol ship

The future HMCS Max Bernays, a Royal Canadian Navy Arctic and Offshore Patrol Ship, being launched into the water, October 23, 2021 (Photo: Irving Shipbuilding)

Irving Shipbuilding has begun conducting sea trials of the future HMCS Max Bernays, the second Harry DeWolf-class Arctic and Offshore Patrol Ship (AOPS) that the company is building for the Royal Canadian Navy.

The trials are being carried out in Halifax Harbour just off Irving’s Halifax Shipyard facilities in Nova Scotia.

The 103-metre vessel was designed in compliance to IACS Polar Class 5. A diesel-electric propulsion system consists of four 3.6MW diesel engines that supply electrical power to two 4.5MW motors to deliver speeds of 17 knots in open water and three knots for icebreaking.

Once delivered, the future Max Bernays will be assigned to Maritime Forces Pacific, making it the first AOPS to operate primarily off Canada’s western coast.

US Navy decommissions dock landing ship Whidbey Island

Photo: US Navy

The US Navy formally retired the dock landing ship (LSD) USS Whidbey Island in a ceremony on Friday, July 22.

The lead ship of its class, Whidbey Island entered service in February 1985. Its notable deployments included Operation Desert Storm in 1991, Operation Uphold Democracy in 1994, and various cruises in support of Operation Enduring Freedom from 2002 to 2007.

Like its sisters, the LSD has capacity for four air-cushion landing craft (LCACs) or 21 LCM-6 medium landing craft and up to 400 embarked marines.

US Navy exercises option for two additional Navajo-class salvage vessels

Austal USA has been awarded a US$156 million fixed-price incentive contract option from the US Navy for the construction of two Navajo-class towing, salvage, and rescue ships (T-ATS). With the award, the company is now under contract for four T-ATS, having received awards for T-ATS 11 and 12 in October 2021.

The ocean-going tug, salvage, and rescue ships will be designed to support the navy’s fleet operations. Each T-ATS will have a multi-mission common hull platform capable of towing heavy ships.

The vessels will be capable of supporting a variety of missions including oil spill response, humanitarian assistance, search and rescue (SAR), and surveillance.

US Navy awards design contract for future destroyer class

Photo: PEO Ships, US Naval Sea Systems Command

General Dynamics Bath Iron Works (BIW) has been awarded a contract by the US Navy to provide shipbuilder engineering and design analysis to produce design products in support of the preliminary and contract design for the navy’s DDG(X) guided missile destroyers.

The design effort for DDG(X) will involve a collaborative navy-industry effort composed of the large surface combatant shipbuilders, suppliers, ship design agents and other subject matter experts. A similar award was also made to Huntington Ingalls Industries (HII), according to a recent announcement from the navy.

If all options are exercised, the contract will continue through July 2028. Fiscal Year 2022 Research, Development, Test and Evaluation (FY22 RDT&E) funds were obligated at the time of award.

Source: https://www.bairdmaritime.com/work-boat-world/maritime-security-world/non-naval/maritime-security-vessel-news-roundup-july-26-thai-and-alabama-police-boats-us-and-saudi-naval-ship-deliveries-and-more/


Ten organisations representing European shippers, freight forwarders, terminal operators and firms in the supply chain have demanded that the European Union immediately review its competition regulation for the container shipping industry.

This is the third time the organisations have called for a review of the regulations, citing continued increases in freight rates, and reductions in capacity, reliability, and quality of service.

The Maritime Executive reported that the organisations were now “disappointed” in the EU’s lack of action – after they twice called for a review in 2021 – compared to other regulators, including the United States.  The Global Shipper Forum is leading the call for the review as one of the ten signatories to the letter.

“There is a striking contrast between the approach of the Commission and the vigour with which the Federal Maritime Commission in the US, and a number of other competition authorities globally, have pursued action against the lines, and the revelations of anticompetitive behaviour which emerged from their investigations,” the group wrote in a letter addressed to Margrethe Vestager, European Commission executive vice-president and Commissioner for Competition.

The group highlighted the latest data recently released by The International Transport Forum, which outlines the seven-fold increase in the freight rate and the reduction of capacity in Europe. They said carriers had increased their profit margins by up to 50%, resulting in a net profit of $186 billion last year, while service issues and costs for shippers had increased.

The EU’s Consortia Block Exemption Regulation, which exempts carriers from certain provisions of the restrictions to promote competition, will expire in less than two years and the organisations now want a review to commence immediately.

The organisations have claimed that “many of the excesses of behaviour” exhibited by shipping lines had stemmed from the “open-ended and highly favourable” terms in the current regulation.

“The regulation does not seem to be able to accommodate major changes in this market over the past few years, including developments in information standardisation and exchange, shipping lines’ acquisition of other supply chain functions, nor how the shipping lines have been able to leverage these to accrue supernormal profits at the expense of the rest of the supply chain.”

Among the ten groups endorsing the letter are the European Association for Forwarding; Transport, Logistics and Customs Services; Federation of European Private Port Companies and Terminals; European Shippers’ Council; Global Shippers’ Forum; International Federation of Freight Forwarders’ Associations; International Association of Movers; International Union for Road-Rail Combined Transport; FIDI Global Alliance; European Barge Union, and European Tugowners’ Association.

Source: https://www.freightnews.co.za/article/eu-shippers-freight-forwarders-call-urgent-review-competition-rule


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