Maritime Safety News Archives - Page 21 of 258 - SHIP IP LTD

The leveling off of demand and even declines in container volumes appear to be finally creating good news for shippers. After nearly two years when the balance of power shifted to the carriers, the recent market changes are helping shippers with the spot rate for standard containers set to fall below a threshold in September and transit times falling despite the industry being in a traditional peak season.

After repeated reports of falling spot prices, technology platform provider Shifl reports that its data analysis shows that the shipping rate for a standard 40-foot container from China to the U.S. West Coast is set to fall for the first time in approximately 20 months below the $5,000 threshold.

Shifl forecasts that the September spot rate between China and Southern California on average will drop to $4,900 for a 40-foot box. That would be a decline of 72 percent year-over-year from a high of $17,500 a year ago in September 2021. Rates, however between China and the U.S. East Coast have shown a smaller decline. Shifl points out that they are expected to be down 54 percent, or an average of $8,900 compared to $19,500 in September 2021.

“While spot rates continue to decline, they are still more than three times higher than they were prior to the pandemic,” comments Shabsie Levy, CEO and Founder of Shifl. “The rates, however, are at levels far lower than at the beginning of 2022, when consumer demand was very high. The pace of this continued decline points to the market returning to some semblance of the new normal.”

The continued decline in spot rates, Shifl predicts, will place continued pressure on the carriers. Carriers in their most recent financial reports highlighted that long-term contract rates were contributing to their extraordinary profits. Shifl’s analysis reports that for major lines such as Maersk and ONE, volumes were down overall in the second quarter with multi-year contracts accounting for up to 70 percent of their container moves.

“As the spot market rates continue to drop, carriers will be forced to renegotiate long-term contract rates that were set at the previous higher levels. Some customers have contracts that have built-in rider clauses pegging them with spot rates,” said Levy.

The declines in volumes are also benefitting shippers in other ways. Transit times are down on major routes despite persistent reports of port congestion in some areas such as the U.S. East Coast. However, even on the routes to the East Coast Shifl reports transit times peaked at 50 days in April and since then are down to 46 days on average.

The improvement has been more dramatic to the U.S. West Coast ports. From China, the average transit time is down from 50 days in December 2021 to an average of 32 days to the California ports.

Levy points out that the progress, however, is marginal when considering that transit times are still twice what they were between China and the U.S. West Coast before the pandemic. Transit times between China and New York are also 1.7 times longer than before the pandemic.

Part of the problem with transit times may be the continued congestion in ports primarily from empties. Shifl’s analysis shows that gate-out times for full import containers have increased. In Los Angeles, for example, Shifl reports gate-out times were up one day from June to July while in New York they jumped one day from May to the current plateau at four days.

These declines spell good news for both shippers and potentially U.S. consumers. Lower shipping prices should help to ease inflation and the out-of-stock conditions experienced during the surge in volumes.  The easing in the market aligns with the forecast from many of the leading carriers that said they expected normalization in the markets coming by the third or fourth quarter of 2022.

Source: https://www.maritime-executive.com/article/spot-rates-drop-to-20-month-low-improving-shippers-outlook

• Global chemical distributors belonging to International Chemical Trade Association have endorsed a safety guidance issued by organizations engaged in moving dangerous goods

• A white paper, “Safety Guidance for Dangerous Goods Storage and Handling Facilities,” along with “Warehouse Checklist,” was issued last December by four global trade groups

• ICTA promotes safe and sustainable chemical supply chains based on chemical distributors deep knowledge of chemicals and global markets

Global chemical traders have backed a safety guidance issued last December by a collective of organizations engaged in handling and moving dangerous goods.

Its latest endorser is International Chemical Trade Association (ICTA), which promotes safe and sustainable chemical supply chains. ICTA says it believes the chemical distribution industry has a key role in enabling chemistry to make a positive societal impact.

“Chemical supply chains rely on an interplay of different actors to deliver dangerous goods safely across the globe,” said Douglas Leech, chairman of the ICTA Transport & Security Committee.

Leech was quoted in a press release issued on August 18 by the International Cargo Handling Coordination Association (ICHCA), one of four global trade groups that issued the white paper, entitled “Safety Guidance for Dangerous Goods Storage and Handling Facilities.”

A pivotal element of the white paper is a warehouse checklist. A practical management tool, the checklist format is a significant addition to the other elements of the white paper.

Broken down into eight key functional areas of operation, the warehouse checklist’s 14 pages are designed to be comprehensive yet easily digestible as an everyday device for maintaining safety management vigilance.

“Chemical distributors cooperate closely with [logistics] and warehousing companies to make this happen. These guidelines will help them to jointly prevent incidents in their warehouses – keeping workers, neighbors, and the environment safe,” said Leech.

ICTA said that, aside from taking responsibility for their own operations, chemical distributors interact with their customers and suppliers to help them to work more safely and securely.

ICTA considers the white paper and the safety efforts that it represents as a step forward in guiding operators to improve their already high standards.

The safety guidance issuers were ICHCA, International Vessel Owners Dangerous Goods Association (IVODGA), National Cargo Bureau (NCB) and World Shipping Council (WSC). They are global trade organizations that drew on their combined expertise and experience in moving dangerous goods around the world to produce the guidance.

Richard Steele, ICHCA chief executive, welcomed the additional support from ICTA. “To make a real difference to the standards of safety in supply chains that feature hazardous materials, it is vital to reach all involved and create a critical mass of like-minded partners,” he said.

“The endorsement of our work by such an authoritative voice as ICTA is therefore decidedly welcome,” Steele said in the press release.

ICTA now joins a number of influential industry stakeholders that have endorsed the guidelines.

The early endorsers were Baltic and International Maritime Council (BIMCO), Bureau International des Containers (BIC), Container Owners Association (COA), Council on Safe Transportation of Hazardous Articles (COSTHA), Danish Shipping, International Chamber of Shipping (ICS), International Federation of Freight Forwarders Association (FIATA), International Group of P&I Clubs (IGP&I) and Through Transport Mutual Insurance Association Ltd (TT Club).

Both the “Dangerous Goods Warehousing White Paper” and the “Warehouse Checklist” are downloadable at  https://ichca.com/warehousing-safety-guidance

Established in 1952, ICHCA International is an independent, not-for-profit organization dedicated to improving the safety, productivity and efficiency of cargo handling and movement worldwide. It provides a focal point for informing, educating, lobbying and networking to improve knowledge and best practice across the cargo handling chain.

Source: https://www.portcalls.com/chemical-traders-back-guidance-moving-dangerous-goods/

The maritime industry contributes nearly 940 million tons of CO2 emissions annually which accounts for nearly 2.5% of the world’s total CO2 emissions (Source: UK Research and Innovation)

But in less than 120 days from now, the IMO’s two new regulations – Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII) – will apply to existing ships of 400 gt and above.

IMO’s intention is for these new regulations is to reduce the total greenhouse gas emissions from shipping operations by 50% by 2050 (against its 2008 emission levels) and carbon intensity of all ships by 40% by 2030.

The EEXI regulation is one of the most significant measures by the IMO to promote more environmentally friendly technologies and reduce the shipping industry’s carbon footprint. For CII, the annual rating ranging from A to E will be issued based on ratio of the total mass of CO2 emitted to the total transport work undertaken in each calendar year and if the rating is below ‘C’ corrective action must be taken immediately.

All of which raises interesting questions about the options available to ships of a certain age – let’s call them vintage assets. One engine manufacturer has warned that more than 80% of bulk carriers and container ships will be in the lowest C,D and E CII categories by 2030 if no action is taken, damaging their commercial viability.

Is scrapping the only commercially feasible option for vintage assets which fall foul of the new regulations? Taking a holistic approach, looking at the vessel’s full life cycle assessment, is there a case for extending the life of older vessels, rather than consigning them to the scrap heap?

If the purpose of EEXI and CII is to save the environment, phasing out vintage assets could be unintentionally counter-productive and lead to greater environmental damage.

How so?
Analysis clearly shows that newbuildings are responsible for significant energy consumption/GHG emissions when taking into account the transportation and handling of the raw materials used in steel production.

In their academic paper on “Assessing Environmental Impacts of Ships from a Life Cycle Perspective” joint authors Stefanos Chatzinkolaou and Nikolaos P. Ventikos state: “The Life Cycle Assessment (LCA) of building, operation and recycling is studied for a panamax tanker and impact on human health (climate change) and ecosystem quality is estimated. The results show that the “ship building has 40% impact and steel production process under the scope of ship building alone responsible for nearly 90% of the total CO2 emissions.”

For a universal approach – also now referred to as the Circular Economy – a life cycle assessment/material balance analysis of the ship’s operational life must also be evaluated.

Circular economies preserve value in the form of energy, labour, and materials with the maximum value extracted from resources before they become waste. It is a framework to tackle not only climate change but also biodiversity loss and pollution.

There are three simple ways shipping can become more Circular.

The first is to consume less – which ensures better use of resources. The second is to consume better. The third is to create systemic change.
And change is already happening. There are other methods to reduce EEXI including retrofitting clean technologies, waste heat recovery systems, air lubrication technology, wind-assisted propulsion, to name a few.

Clearly, questions remain over the commercial viability of retrofitting expensive energy-saving equipment on older vessels. It is clear from the evidence that repairing and extending the life of (mid-sized, vintage) ships is more environmentally friendly than building a new one. The sooner this ‘uncomfortable truth’ is accepted, the better.
Source: GMS https://www.gmsinc.net/article/extending-the-life-of-a-ship-bad-for-the-environment?utm_source=social-media&utm_medium=article&utm_campaign=social-media-article-extending-life-of-ship