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Tug BLUE DRAGON 12 suffered explosion and subsequently, sank, in the afternoon Jul 23 in Semoi Setawir, Sungai Sepaku river, upstream from Balikpapan, Eastern Kalimantan Makassar Strait, Indonesia. Of 12 people on board, 4 suffered burns (their condition unknown), 1 went missing, 7 escaped. The tug was waiting for barge Sea Dragon 2712 to be loaded with coal. There were wielding works taking place in stern area, shortly after works started an explosion came about.

Source: https://www.news2sea.com/tug-sank-after-explosion-4-burnt-1-missing-indonesia-tb-blue-dragon-12/


American Cruise Lines announced it will begin offering California cruises starting in 2023.

The U.S. river and small ship coastal cruise line will offer a new eight-day round tris from San Francisco exploring the San Francisco Bay, San Pablo Bay, the Napa River and the San Joaquin River, with stops in San Francisco, Napa, Vallejo, Stockton and Sacramento.

“American continues to expand the possibilities for exceptional domestic small ship cruises across the country. Exploring this beautiful region of Northern California by riverboat will provide a new opportunity for our guests to discover the Bay area and the Napa Valley in an exceptional way…many have driven there, but not many can say they have actually cruised through wine country,” said Charles B. Robertson, President & CEO of American Cruise Lines.


In a joint letter to the European Commissioner for Competition, Margrethe Vestager , the signatories demanded an immediate review of the EU’s Consortia Block Exemption Regulation for the container shipping industry. The regulation allows for the sharing of commercially sensitive information between container lines to enable control of vessel supply, size, and route frequency – exempting lines from certain parts of EU competition law.

The block exemption was last renewed in April 2020 and the signatories said supply chains have suffered huge disruption, blanked and diverted sailings, skipped calls and a quadrupling of freight rates on some routes.

The letter noted investigations in the US which led to the Ocean Shipping Reform Act. The signatories said OSRA “addressed many of the grievances of users and services suppliers to the container shipping lines”, while others in the shipping industry say OSRA lays blame for complex logistical issues at the feet of foreign container lines. Hong Kong recently renewed its block exemption rules for container vessel sharing agreements after a review of the market last year.

“The effects of lockdowns on the production of goods and the shifts in demand due to the effects of the Covid pandemic were certainly significant. But the ability of the shipping industry to collectively manage these impacts, and at the same generate profits totalling over $186 billion in 2021, at the expense of the rest of the supply chain, and ultimately Europe’s consumers, demonstrate that something is wrong,” said the signatories.

A review of block exemption could address container lines’ hoarding of the benefits of exemptions, distributed it more fairly.

“The Regulation’s review will allow all interested parties to submit evidence and arguments as to how the Commission should act to ensure the deep-sea container shipping market operates in a way that is fair and transparent to all parties in the maritime supply chain. This should include consideration of new measures and mechanisms and should allow sufficient time for these to be considered and implemented before the expiry of the current regulation in April 2024,” said signatories.

The letter to the Commissioner was signed by CLECAT (European Association for Forwarding, Transport, Logistics and Customs Services), FEPORT (The Federation of European Private Port Companies and Terminals), the European Shippers’ Council, the European Barge Union (EBU), Global Shippers Forum, European Tugowners Association, International Union for Road-Rail Combined Transport (UIRR), the International Federation of Freight Forwarders (FIATA), International Association of Movers and FIDI Global Alliance.


“Carbon Capture on the Ocean” (CC-Ocean) project conducted in cooperation with Mitsubishi Shipbuilding Co., Ltd., a part of Mitsubishi Heavy Industries (MHI) Group, Kawasaki Kisen Kaisha, Ltd. (“K” Line) and ClassNK has received the “Marine Engineering of the Year 2021 (Doko Memorial Award)” from the Japan Institute of Marine Engineering (JIME). The award was received in recognition of the world’s first marine-based CO2 capture system on actual voyage to successfully separate and capture CO2 from flue gas, with the captured CO2 having a purity of greater than 99.9%, achieving performance in line with plan. The award ceremony was held on July 22 at the Kaiun Club in Tokyo.

Ceremony Photo
Ceremony Photo (courtesy of Mitsubishi Heavy Industries, Ltd.)

This prize, awarded for outstanding technical achievements in the fields of marine engines and equipment, offshore instruments, and related marine engineering, aims to draw attention to the innovativeness and importance of these achievements both in Japan and around the world, and support the further advancement of associated scientific and industrial technologies.

The award-winning “CC-Ocean” project aims to capture CO2 at sea by converting an existing CO2 capture system for onshore power plants to a marine environment. The system was installed on board the CORONA UTILITY, a coal carrier for Tohoku Electric Power Co., Inc. operated by “K” Line, with demonstration testing conducted for approximately six months starting in August 2021. The amount, ratio, and purity of the captured CO2 were all in line with plan, demonstrating the feasibility of capturing CO2 from the flue gas of marine engines onboard ships, where operating conditions differ from those on land.

ClassNK was involved in the evaluation and verification of the overall project from a safety perspective. The knowledge gained from this project will be used to develop adequate standards related to CO2 capture technologies in order to contribute to the reduction of GHG emissions from ships.

Source: https://www.marineinsight.com/shipping-news/cc-ocean-marine-based-co2-capture-system-demonstration-project-receives-marine-engineering-of-the-year-2021-award-from-the-japan-institute-of-marine-engineering/


As a result Fray said a recovery in 2023 is now at risk. The demand outlook is weak, implying that a negative impact of the easing of covid-related inefficiencies more than offset the positive impact of increased inefficiencies driven by environmental regulations, Fray continued. An improvement in market balances relies on scrapping in 2023/2024.

Looking at the oil tanker market, the available fleet is growing by significantly more than actual capacity owing to reversal of floating storage, capacity growth is decelerating and will become negative over the forecast.

The tanker scrapping has ramped up in 2022, but volumes remain slow on larger tonnage, particularly VLCCs, explained Tim Smith, Director of MSI. Forecast newbuilding deliveries have been lowered due to a drop in contracting.

Although the container market remains very strong, there have been signs of weakness, said Daniel Richards, Associate Director MSI. Trade growth has slowed due to disruption to manufacturing in China caused by Covid-19 and there is pressure on consumer incomes. However, container volumes are still high, and congestion is a major issue as well.

The containership orderbook is now very large, and Daniel suggested stopping ordering containerships as the market is facing risks due to the massive orderbook.

Trade outlook is weak in 2022-2023, the industry is expected to back to “normal” by mid-2023. After mid-2023, vessel speed will become more important if the fleet slows down to meet environmental regulations, which would partly offset high vessel deliveries, Daniel added.

Another big challenge facing the newbuilding market that is the environmental timelines continues to accelerate, with an increasing focus on GHG emission regulations. The majority ships will need to comply with regulations with EEXI and CII will come into force shortly, said Jianjun Wang Regional Director, Asia for MSI.

Source: https://www.seatrade-maritime.com/dry-cargo/risks-ahead-shipping-markets


Egypt’s state-owned energy company EGAS (Egyptian Natural Gas Holding Company) reports that plans are moving forward for the development of an LNG bunkering hub to be developed at the Suez Canal. Working with partners Kanfer Shipping headquartered in Norway and Leth Suez Transit are working to develop the strategic hub and to have the bunkering infrastructure in operation by 2025 at the latest.

The companies reported they are expanding on an initial Memorandum of Understanding signed in February 2022 to explore bunkering operations in the Mediterranean, Suez, and the Red Sea from a hub in Egypt. The companies have agreed to form a joint venture which will charter a bunker vessel from Kanfer and manage operations from Egypt. The LNG would come from EGAS or other sources in Egypt.

The companies point to the location of the Suez Canal as to making their operation a strategic asset to the industry. They point out that more than 20,000 ships are transiting the Suez Canal each year and the ships have to wait at the northern and southern terminus while the daily convoys are formed.

While vessels are waiting to transit the Suez Canal, the group says the time can be used to increase efficiency by bunkering. They said the service would be available at both Port Said and the Suez Port and could be offered at other important Egyptian ports on the Mediterranean.

According to DNV, there are currently 38 LNG bunker vessels in operation with 18 additional orders and still others under consideration. LNG bunker is today offered in France, Spain, and Gibraltar, with Fratelli Cosulich planning to launch operations in Italy in 2023 and 2024. Similarly, there are discussions for LNG bunkering based in Portugal, but currently, there are no LNG operations regularly planned for the Southern Mediterranean and Egypt.

The partners point to the record orderbook for LNG vessels. Citing data from DNV, they said there are currently 304 LNG-fueled ships in operation. However, that number is expected to rise rapidly with 511 dual-fuel ships on order with the intent to operate them with LNG. Himalaya Shipping, with 12 Newcastlemax LNG-fueled bulkers on order, for example, welcomed the news saying the strategic location would help the company transition its dry bulk shipping to LNG.

“One of the key advantages of Egypt as an LNG bunkering location is that Egypt has natural gas resources and liquefaction facilities, which put them in a unique and competitive position towards the key LNG bunkering hubs of the world,” the partners said in discussing their plans. They said LNG can be sourced from two existing terminals and an FSRU stationed in Egypt. They believe this will make their operation price competitive.

Leth and Kanfer plan to seek an additional joint venture partner that has experience with bunkering or a commodity trader that can play an active part in developing the business model.

Source: https://www.maritime-executive.com/article/egypt-proceeding-with-plans-for-lng-bunkering-operation-at-suez-canal


Indian Ocean security is an enduring maritime issue. Tensions on the high seas also include focusing on the Indian Ocean. As an area of water, policing and securing these sea lanes has always been a challenge. Today, the issues are becoming more complicated but manageable with deconfliction measures when necessary.
Size matters in terms of the scope of Indian Ocean area of operations. The Indian Ocean covers a vast area stretching from the coasts of East Africa in the west, to Malaysia and Australia in the east, to South Africa in the south. Its broader territory runs from the waters of the Arabian Gulf to the South China Sea, covers 70 million sq. km, or a whopping 20 percent of the world’s water surface, hosting one-third of the world’s population, one quarter of the world’s landmass, three quarters of global oil reserves, iron and tin, and more than 70,000 ships cross its expanse every year by hugging the coastal outline of the maritime arena. About 65 percent of the world’s oil reserves belong to just 10 of the Indian Ocean littoral states. The Indian Ocean hosts the world’s most significant “sea lanes of communication” and as such already played a pivotal role in the global economy, even before COVID-19 interrupted supply chains.
The world’s major choke points are also located in the Indian Ocean. These are: The Strait of Hormuz, Bab El-Mandeb (west) and Malacca Strait (east), creating “brackets of troubles” for seafarers, shipping companies and international security. A large portion of global trade and most Gulf oil en route to Asia passes through these chokepoints. As such, they are strategically important for global trade and economic development.
Despite its significant strategic position as a trade route and home to a large part of the world’s population, the Indian Ocean was for a long time rather neglected. The rise of India and China as global economic powers has significantly increased their energy needs and their dependence on Gulf oil supplies. Consequently, their energy security interests give these two Asian players direct stakes in the security and stability of the Indian Ocean, in particular the safety of transit lines form the Arabian Gulf toward the east coast of the Arabian Sea and the Bay of Bengal which surround India’s long coastal area. This has positioned India and China as major contenders for the share of the ocean’s dominion. Increasingly, China and India are bumping up against each other on East Africa’s coastline.
Historically, regional merchants moved throughout the Indian Ocean network and established diaspora communities. Through these diaspora communities, merchants introduced their cultural traditions to local indigenous cultures along coastlines. Often native customs and outside traditions existed side-by-side in relative peace, and local communities sometimes even adopted new practices and beliefs from the merchant diaspora. That peacefulness becomes interrupted by nation-state competitions over sea lane access.

Indian Ocean countries and those who access its sea lanes need to begin thinking in the long term to guarantee the safety and security of this broad expanse of sea.

Dr. Theodore Karasik

For quite a long time, the Indian Ocean has been largely dominated by the US. With the economic rise of both India and China in the past two decades, the division of world power has started to change from a unipolar toward a multipolar world in the Indian Ocean basin. This shift has brought the Indian Ocean back into the center of geopolitical attention and strategic gravity as a potential field of malign activity.
The Indian Ocean’s sea lanes are also key factors in global trade and economic stability as oil and other trading material passes through its waterways on the way to Asia, Africa, Europe and other parts of the world. Any disruption in trade causes significant stress and strain in many world economies. This is why supply chain interruptions have a recoil effect when ports are unable to accept cargo — either because of disease or local violence that destroys port facilities, or political moves making access illegal through legal means.
Who will call the shots in the Indian Ocean in the coming decades depends on many factors. The world is progressively moving toward a new international energy order, which for better or worse will be dictated by the supply and demand of key energy resources: Oil, gas and coal on top of the sanctions by the West on Russia over its invasion of Ukraine.
Countries rimming the Indian Ocean have greater potential through the growth of supply chain networks, closer international cooperation with all the states of the Indian Ocean, increased defense ties with those states, and the injection of money in states across a broad spectrum of security issues — whether maritime, food, climate or economic capacity building. The more that countries try to band together on Indian Ocean security issues, the better for potential deconfliction.
There are multiple scenarios of how the Indian Ocean affects global power sharing. The creation of the I2U2, or the West Asian Quad, is an example of a quadruple alliance that has port connectivity as part of its commercial outlook. To be sure, population control, wealth distribution, investment in human capital, development of new technologies and use of clean energy sources will be decisive factors in keeping both the supplier and consumer countries in the playing field. Opposite the West Asian Quad are China, Russia and Iran, creating the potential for high seas hijinks.
As always in this age, with a plethora of international security issues boiling, Indian Ocean countries and those who access its sea lanes need to begin thinking in the long term to guarantee the safety and security of this broad expanse of sea.

Source: https://www.arabnews.com/node/2128621/amp


The global pool of shipping containers increased by 13% to almost 50 mteu in 2021, which was three times prior growth trend. This reflected lessors and ocean carriers ordering a record number of containers, while retiring fewer ageing units, as congestion across global supply chains meant containers were an estimated 15% to 20% less productive than in pre-Covid-19 times, according to Drewry’s recently published Container Census & Leasing Annual Review & Forecast 2022/23 report.

Drewry estimates that each container averaged 18.1 lifts in 2021 compared with 19.2 in 2020 and between 19.5 and 20.6 in the 2010s. Moreover, the number of containers per slot of vessel capacity increased by 8% in 2020 when the pandemic started and remained at this level throughout 2021.

Drewry estimates that as many as 6 mteu of surplus containers now exist in the global equipment pool. While large by historic standards, Drewry considers this surplus to be manageable for the industry.

“The delivery schedule of new ships is very strong with slot capacity expected to increase by 3.6 mteu in 2023 and by over 3.9 mteu in 2024,” said Drewry’s head of container equipment research John Fossey.

“With new IMO emissions regulations coming into force in January 2023 forcing some ships to sail slower, much of the surplus equipment currently in service is expected to be absorbed. In addition, there is evidence to suggest that some carriers are planning to have more buffer stock in their equipment pools, while fewer new containers will be built in the next two years.”

Drewry forecasts that output in 2022 and 2023 will be much lower than last year, at 3.9 mteu and 2.4 mteu respectively, with replacement accounting for most of the orders. While newbuild and second-hand prices will fall, a return to the very low prices of 2019 is not anticipated as manufacturers are expected to manage their capacity and pricing strategies very carefully. Meanwhile, the secondary market remains robust and the uses to which ex-trading containers can be put to use continues to expand.

“Looking ahead, ocean carriers will be the main buyers of equipment over the next two years with lessors then taking control again, raising their share of the pool to 54% by 2026,” added Fossey. “Moreover, per diem rates and investment cash returns will general be higher over the forecast period than in the past five years.”

Source: https://maritimefairtrade.org/container-shippings-equipment-surplus-is-manageable-and-will-recede-says-drewry/


The UK Government has responded to the House of Lords’ International Defense and Relations Committee Inquiry (1 March 2022) into the UN Convention on the Law of the Sea (UNCLOS) 1982 being ‘Fit for Purpose in the 21st Century’.

According to global NGO Human Rights at Sea (HRAS), the government’s response can only be described as weak in respect to human rights protections for people at sea despite extensive and evidenced recommendations to do so by the UK Parliament’s Upper House.

Since then, the Committee continues to challenge the UK Government for its failures to respond to the Inquiry’s recommendations, including explicit coverage of issues pertaining to human rights at sea.

On 19 July, the Committee’s Chair, Baroness Anelay of St Johns, wrote to Lord Goldsmith of Richmond Park, Minister for Pacific and the Environment, the Foreign, Commonwealth & Development Office and the Department for Environment, Food and Rural Affairs, requesting further information from the Government on seven areas including flags of convenience and human rights at sea.

The Chair stated: “…we were disappointed with the Government’s response and would like to raise further questions.”

In relation to matters raised in the Inquiry into human rights at sea, the Chair raised several points which had received minimal or nil responses relating to recommendations by the Committee. The points raised reflect the ongoing concerns of HRAS.

On 21 July, HRAS, keeping up the pressure since 16 June when it first commented on the Government’s weak response, said: “The UK House of Lords international Defense and Relations Committee Inquiry was explicit in its recommendations to the UK Government about addressing the issue of fundamental rights and associated protections for the human rights of all persons at sea, both within and external to UK jurisdictional boundaries.

“It is now clear that a unified UK approach is required, and a clear position needs to be taken so “…that the Government confirms, unequivocally, that international human rights law applies equally at sea as on land, beyond just the jurisdiction of the ECHR, and to all categories of seafarers, not just workers.”

“The 31 May 2022 Government response has been found to be sorely lacking in key areas relating to policy responses around the subject of human rights at sea.

“This requires urgent rectification to provide both national and international clarity on the UK’s position and approach if the UK is to be taken seriously as a maritime and human rights leader.”

On 16 June, HRAS first commented: “The UK Government can and must do better on the issue of fundamental protections for all persons at sea if it is to aspire to its proposed thought leadership role and fulfil its own mandate for the 2050 Maritime vision.

“The current political positioning towards the eminent recommendations by the UK House of Lords Inquiry deftly ‘kicks-the-can’ down the road and conveniently stalls to avoid tackling the very serious issues of reinforcing the existing rule of law and international rules-based environment at sea explicitly for human rights.

“And despite explicit Parliamentary reference to the Geneva Declaration on Human Rights at Sea, there was silence on the validity of that extensive soft law development work.

“This weak response sends a clear message to those who wish to write down or even write out human rights protections at sea that a failure to address such key matters raised in a national Parliament effectively means that impunity and abuses at sea can at best be conveniently ignored, at worst, condoned.

“It is therefore time to put ‘human rights at sea’ firmly on the UK political agenda to better participate and support the global narrative for protecting the fundamental human rights of all persons reliant on maritime access and ocean resources, including the extensive use of logistical routes crossing the world’s oceans and seas, while concurrently upholding and reinforcing the international rules-based system in the maritime environment.”

UK Government failings

Despite expert recommendations to explicitly look at human rights protections at sea, extensively evidenced in detailed national and international submissions, the UK Government has failed to comprehensively detail human rights issues which affect global supply chains for all goods transported by sea, affect exploited marine resources including flag state impunity, criminality and illegal, unregulated, and unreported (IUU) fishing at sea, affect mixed migration and affect slavery and trafficking at sea.

Turn-backs of migrant boats in The English Channel remains a significant point of policy and legal contention, while reliance on referencing the ILO 188 Work in Fishing Convention is a distracting point noting the limited numbers of state ratifications and global uptake.

Additionally, the response failed to substantially acknowledge and indeed agree as to the need for better protections of individual fundamental rights for all those persons who live, work and transit by sea, other than within UK territorial waters.

By way of example, the Inquiry’s report stated: “Witnesses were clear that international human rights law applies to those at sea as well as on land. Professor Klein (Australia) explained that: “there was a point in time where some countries did not consider that their human rights obligations extended out to sea once they were beyond their land territory, but that position has been firmly quashed at this stage.”

The UK Government further failed to support the position that ‘human rights apply at sea, as they do on land’. Instead, it weakly commented that: “[Response to 219] The Government accepts that internationally the applicable jurisdiction for victims of human rights abuses at sea may be difficult to ascertain. There is scope to clarify where victims may bring a complaint or case in the UK.”

Applicable contextual evidence from Prof. Petrig (Switzerland) stated: ““Not only has the law of the sea been in large part human rights blind, but human rights law has until very recently suffered from serious sea blindness. As a result, human rights treaties that have been refined through many efforts by many actors are mainly for a land context and not for the sea.” This point was seemingly ignored.

Areas of concern

In terms of the ‘Applicability of human rights law at sea’, it was stated:

“We were disappointed with the Government’s responses to paragraphs 190, 191 and 192 of our report. The response acknowledges that while “human rights for workers ashore in the UK are enforced through tribunals/the ECHR…there is scope to clarify where seafarers have access to these.”

“But it gives no detail on how the Government seeks to address these gaps. It also only refers to rights for workers and not wider users of the sea, which we explicitly asked about in our recommendation in paragraph 192.”

“The response also does not confirm, as requested, that the Government considers international human rights law to apply equally at sea as on land. Instead, it refers to the application of the ECHR as applying equally in UK territorial sea as on land. This is a geographically restricted interpretation of human rights at sea and does not explicitly acknowledge the inherent rights of individuals wherever they are located.

“Further, while the response acknowledges there are jurisdictional complexities that exist at sea, this should not detract from the commitment that human rights law applies regardless of these jurisdictional complexities.”

In terms of ‘Flag states and human rights at sea’, it was stated:

“In response to paragraph 193 of our report, the response again asserts that: “The record of compliance with international conventions by vessels on Open Registers is not significantly worse than that of vessels on other registries.”

“However, this does not address the issue of whether a flag state is able to enforce international law when a breach occurs, which is a particular concern for human rights. We ask that in response to question 2 above, you include reference to the specific challenges relating to flags of convenience and enforcing human rights at sea.”

In terms of ‘Justice for victims of human rights abuses at sea’ it was stated:

“The response to paragraph 219 of our report was very brief. The response acknowledges that “internationally the applicable jurisdiction for victims of human rights abuses at sea may be difficult to ascertain”, and that there is “scope to clarify where victims may bring a complaint or case in the UK”, but it does not provide this clarification.”

Key for HRAS is the point on ‘A unified approach to human rights at sea’, where it was stated:

“A reply to paragraph 232 of our report was missing from the response. Paragraph 232 said:

“Piecemeal solutions will not be sufficient. We call on the Government to work with like-minded partners to advance a unified approach to human rights at sea. This will need to draw together practical solutions to challenges including mass migration, forced labor, physical and sexual crimes, and crimes committed by privately contracted armed security personnel, and must lead to the creation of new mechanisms to address the issue.”

Crucially, the Committee stated: “We would like to reiterate this recommendation and ask again whether the Government is planning to work towards a unified approach to human rights at sea.”

Source: https://maritimefairtrade.org/global-ngo-criticizes-uk-governments-weak-support-for-human-rights-at-sea/


The 14 male and 18 female students from the Maritime Transport technology department of the Arab Academy for Science, Technology and Maritime Transport Sharjah Branch (AASTS) will receive training aboard Zakher’s fleet of offshore support vessels, anchor handlers and barges.

Zakher said it will provide suitable living and learning conditions aboard its vessels for the mix of two- and one-semester deployments.

AASTS said the training was in-line with its efforts to empower aspiring maritime professionals to work in the industry.

Dr. Ismail Abdel Ghaffar Ismail Farag, President of the Arab Academy for Science, Technology and Maritime Transport said: “We have equipped our campuses with some of the most advanced and state-of-the-art facilities such as simulators in order to offer our students the ideal environment to gain practical training.
“However, what really keeps our students ahead of the curve is the timely on-field training they are provided with. Our collaboration with some of the leading maritime organisations such as Zakher Marine aims to achieve this very purpose and we are proud of how far we have come with this approach.”

Ali El Ali, Managing Director, Zakher Marine International said: “By offering practical training to the students of the Arab Academy, we will be able to shape the future of the maritime industry by enhancing the skills of its future professionals, many of which may contribute towards the growth of our organisation by working with us as captains or engineers.

“Additionally, the training we offer to the Academy’s students is in line with our efforts to help further improve the UAE’s economy, as we will be able to train aspiring professionals to drive the progress of the maritime industry, which is one of the most significant contributors to the nation’s economy.”

Dr. Capt. Ahmed Youssef, Associate Dean, College of Maritime Transport and Technology, AASTS, said: “We are confident that with Zakher Marine, our students are in the right place to learn and understand what scenarios and opportunities lie ahead of themselves in the industry. This is simply an unparalleled opportunity for our future leaders to gain practical experience and grow on-board one of the largest fleets in the marine and oil field services in the UAE.”

Source: https://www.seatrade-maritime.com/crewing/aasts-students-train-zakher-marine-fleet


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