The U.S. Navy sees its future fleet comprised of more than 350 manned ships and about 150 unmanned ships hoping technology means lower operating costs as it prepares to counter a growing Chinese fleet, according to a Navy report released Tuesday.
The plan for the 2040s and beyond underscored “the need to address long-term competition with China and sustain military advantage against Russia”. It forecasts fleet numbers up slightly from a 2021 Navy long-range shipbuilding plan which had a range of 321 to 372 manned ships and 77 to 140 large unmanned vessels.
Huntington Ingalls Industries Inc and General Dynamics Corp are the largest shipbuilders in the United States with other weapons makers like Boeing Co working on unmanned ships programs.
Today the Navy has 298 ships in its “battle force” which ignores scores of resupply and logistics ships.
The Navy’s proposed fiscal year 2023 budget requested $27.9 billion in shipbuilding funding for eight new ships, including two Virginia class attack submarines, two Arleigh Burke destroyers, and one Constellation frigate.
The U.S. Congress is working to add ships to the Navy’s fleet.
Ukraine hoped the UN-brokered contract would ease global food shortage as the war-torn nation planned to restart shipping grains from the Black Sea ports this week.
Moscow brushed aside the rising concerns that the deal could again be derailed owing to a Russian missile strike that hit Ukraine’s Odesa port on Saturday, mentioning that it targeted only the military infrastructure. Volodymyr Zelenskyy, the Ukrainian President, denounced the latest attack as “barbarism,” which reflects how Moscow can’t be trusted.
A worldwide wheat shortage and rising energy prices in Europe are some of the most far-reaching impacts of Russia’s war against Ukraine, threatening millions in the poorer countries with hunger and resulting in fears of overheating supplies in the coming winter.
Officials from Ukraine, the UN, Russia, and Turkey agreed on Friday there would be no attacks on any ship sailing via the Black Sea to Bosphorus Strait in Turkey and on to markets. They are preparing for a joint monitoring center.
Image for representation purpose only
A senior government official from Ukraine reported that he was hoping that the first grain shipment from Ukraine, a supplier major, would be possible this week, with the shipments from other ports spoken of in the deal in about two weeks.
In the next 24 hours, we’ll be prepared to resume exports from Ukraine’s ports. The port of Chornomorsk, then there will be Odesa, and then the port of Pivdeny, the deputy infrastructure minister Yuriy Vaskov reported at a news conference.
As the war lasted six months, Ukraine’s military was informed about the Russian shelling in the eastern Ukrainian region overnight. It said that Moscow continued to prepare to launch an assault on Bakhmut in Donbas, which Russia targets on seizing on behalf of its separatist proxies.
Ukraine said its forces had used U.S-supplied HIMARS rocket systems to destroy 50 ammunition depots in Russia from when they received the weapons around last month. Russia did not immediately comment, but its Defense Ministry said its forces had destroyed an ammunition depot for HIMARS systems.
Grain Export
Russia’s Black Sea fleet has prevented grain exports from Ukraine since Moscow’s February 24 invasion. A UN official referred to Friday’s deal as a “de facto ceasefire” for facilities and ships covered in the agreement.
Moscow denies responsibility for the food crisis, blaming the sanctions for hampering the food and fertilizer business and Ukraine for mining approaches to its ports.
Ukraine’s military mentioned that two Kalibr missiles fired from Russia’s warships on Saturday hit a pumping station at Ukraine’s Odesa port as well, as the country’s air defense forces shot down two others. They did not hit the grain storage area or result in significant damages.
Russia said the strikes hit a weapons store based in Odesa and a Ukrainian warship. They were fired with precision missiles.
They are unrelated to the infrastructure used for grain export. And it should not – and will not severely impact – the beginning of shipments, Dmitry Peskov – a Kremlin spokesman, mentioned on Monday.
Peskov signaled that Russia’s European natural gas exports restarted at reduced volumes last week. However, the volume could also soon increase.
Diplomats from the EU that have joined the US in imposing sanctions on Russia but continued to purchase its gas were prepared to discuss targets on Monday for member states to cut down on gas use. Russia has cut down its supplies to Europe and has blamed the sanctions.
Global wheat prices increased sharply on Monday owing to uncertainties regarding the grain agreement, clearing most of the falls observed on Friday when traders were anticipating a relaxation of supply shortages.
Referendums
As well as Ukraine’s eastern Donbas region, Russian forces have set sights on southern Ukraine, where they have already occupied two areas north of the Black Sea peninsula dubbed Crimea, which it annexed from Ukraine back in 2014.
Russia’s news agency RIA reported that the two regions, Kherson and Zaporizhzhia, may also conduct referendums in September 2022 on joining Russia, mentioning Vladimir Rogov. He is a member of the Russian-appointed Zaporizhzhia’s provincial government.
The Ukrainian military updated regarding progress in what is referred to as a counter-offensive in Kherson, mentioning that its forces moved within the firing range of Russia’s targets. Reuters could not verify the reports independently.
Britain informed that the Russian commanders keep facing a dilemma – whether to bolster defenses at Kherson and areas close by or resource offensive toward the east.
Moscow charged about 92 members of the armed forces of Ukraine with crimes against humanity. It also proposed an international tribunal to tackle the examination, Alexander Bastrykin, who leads Russia’s investigative committee, reported.
The declaration comes after the US and more than 40 other countries agreed on July 14 to coordinate examinations into the suspected war crimes in Ukraine, especially concerning alleged actions by forces of Russia and its proxies.
Putin refers to the war as a special military operation aimed at demilitarizing Ukraine. Kyiv and the West refer to the war as a baseless pretext for land grab.
Fire erupted in cargo hold of general cargo ship NOVA berthed at Eemshaven, Netherlands, in the afternoon Jul 26. The ship loaded with wind turbines parts, to get to the hotspot inside cargo hold firefighters had to remove or relocate cargo on deck and in hold. Fire is said to be under control or extinguished, it started in one of the containers in hold bottom.
A district court in Batam, Indonesia has issued a seven-year jail sentence for the master of the workboat Cramoil Equity for entering Indonesian waters with barrels of hazardous liquid waste.
In mid-June 2021, the Batam Port Authority received a tip that the Belize-flagged Cramoil Equity was carrying hazardous waste without a permit in the waters of Batam. The agency’s patrol team ordered the ship to leave, but it allegedly did not comply.
Two days later, the patrol team found Cramoil Equity still within Indonesian waters. A boarding team found 20 bulk containers of toxic waste on the back deck, each containing about 250 gallons of liquid. Transporting hazardous waste into Indonesian waters without a permit is a violation of the nation’s environmental laws, punishable by up to a maximum of 15 years in prison.
The captain, identified as 48-year-old Indonesian national Chosmus Palandi, was convicted of transporting hazardous waste in June 2022 and sentenced to seven years in jail, plus a fine of $330,000 (or an additional three months in jail). The outcome of the case was announced in July.
The case may expand beyond a penalty for the captain alone. Indonesia’s ministry of the environment is working with the Indonesian embassy in Singapore to try to track down the cargo’s origin. The vessel’s operator, Cramoil Singapore, has previously been cited by Singaporean authorities for alleged discharge of untreated wastewater.
“Firm action against waste smuggling and any act against the environment must be carried out to protect Indonesian waters and environment,” the ministry said in a statement.
The UK Hydrographic Office (UKHO) has taken a major step on the path to digitalization in the shipping industry: the end of Admiralty paper charts.
Durable, tangible, and with no batteries required for use, the paper chart has been a mainstay of maritime navigation for centuries. Generations of mariners have relied on paper charts for voyage planning and positioning. But the times have changed, and automatically-updating electronic charts have become the default option – especially after the SOLAS mandate for the transition to ECDIS took effect.
On Tuesday, the UKHO announced that it will also phase out global paper chart production by late 2026. Its Admiralty charts are the most widely used paper charts globally, and the decision will affect stakeholders in many regions; however, UKHO says, most mariners have already made the switch to digital.
The agency is winding down paper chart production because its customers are “primarily using digital products and services for navigation” and it has seen a “rapid decline in demand for paper charts.” The decision will allow it to focus on its 18,000-plus electronic charts and other digital products.
“The decision to commence the process of withdrawing from paper chart production will allow us to increase our focus on advanced digital services that meet the needs of today’s seafarers,” said Peter Sparkes, UKHO’s chief executive. “Shipping is moving quickly towards a future underpinned by digital innovations, enhanced satellite connectivity at sea and optimized data solutions, supporting the next generation of navigation. The UKHO aims to be at the vanguard of this digital transition.”
UKHO says that it will work with the UK Maritime and Coastguard Agency, commercial distributors, and other stakeholders to help remaining paper chart customers transition to electronic products by the deadline. “We understand the significance of this announcement, given the distinguished history of the UKHO’s paper chart production and the trust that mariners have placed in Admiralty charts over the generations,” said Sparkes.
UKHO is following in the footsteps of its American colleagues. In 2019, NOAA announced plans to phase out phase out paper nautical chart production by January 2025. The decision marked a sea change for the agency, which has produced America’s paper charts (and charts for much of the rest of the world) for decades. Like UKHO, NOAA is redirecting its resources to focus on the quality of its electronic chart products and to provide larger scale co
It is not quite the end of the paper chart in the United States, however: American seafarers will still be able to order custom-printed charts based on electronic data.
The Dutch government has suffered another setback in its already widely criticized plan to use chartered ferries or cruise ships to help alleviate the overcrowding in refugee centers across the country. After initially announcing the plan last week, it has been met with a barrage of critics both from residents and local government to aid organizations, yet at least one of the ships is believed to already be sailing to the Netherlands due to start its role as a floating accommodations center next week.
The local council in the municipality of Zaanstad near Amsterdam today withdrew its permission to dock one of the chartered ferries at their pier. City officials said the 21,500 gross ton ferry, Aurelia could not be accommodated at their facilities. They said the 42-year-old ferry registered in Cyprus would produce “too much nitrogen,” and that under the regulations the port would not be able to handle the pollution coming from the ship. In May, the local council had said it was looking into the idea of accepting a ship to address the housing crisis.
Similarly, the port of Vlissingen had also been suggested as another location for one of the vessels. The southern city near the border with Belgium however this week said that it would not be able to accept one of the vessels. Residents had demanded that the city government reject the ship after the widespread criticism of the plan in recent days.
The Dutch government, however, has called the current situation an asylum crisis. The country has accepted an estimated 40,000 refugees from Ukraine in addition to other nationalities that have sought refuge in the country. Reports indicate that the centers are overflowing across the country unable to provide shelter for some of the new arrivals. One report said people are sleeping outside at least one center on the lawn with no shelter from the elements.
Last week, Eric van der Burg, a justice minister who is charged with dealing with refugees, was quoted in the media saying that they had come up with the idea of chartering three vessels, which he referred to as cruise ships, to temporarily house a few thousand of the refugees. Asked where the ships would dock he said that was still under discussions suggesting that the ships might be anchored offshore. He said they were exploring using shuttle services to transport the residents to shore but still aid groups compared the plan to imprisoning the people. An aid group described the idea of placing asylum seekers offshore as absurd.
The minister said last week that the government had already chartered the vessels and that they were heading to the Netherlands. He said they had acted quickly to ensure the availability of the vessels. The AIS signal for the one vessel that was identified for the program, the Aurelia, shows that it is docked in Marseille, France but was expected to depart for Spain and presumably continue on to the Netherlands.
In April, city officials in the Netherlands chartered a Holland America Line cruise ship as one of their first temporary housing locations along with two river cruise ships from AmaWaterways. The charter for the Holland America Volendam was extended through the summer but the cruise line reports the vessel will not extend the charter and will return to cruising in late September.
Other countries have also turned to the use of ferries to accommodate some of the influx of people. Estonia chartered a ferry in the spring and recently another one arrived in Scotland. Groups in Scotland also criticized the effort for the small size of the cabins, but the shipping company responded by saying that the people accommodated aboard would also have the use of the lounges and public spaces. Estonian officials in the spring said the ships worked well with the public spaces and meeting rooms providing the ability to provide counseling and services aboard the ship and the cafeterias or restaurants made it possible to provide basic meal services.
IMO has contributed to the next steps to enhance safety and energy efficiency of domestic passenger ships in the Philippines. A team of experts* undertook a field visit to Manila, Iloilo and Cebu, the Philippines (3-9 July) to see up close how the safety system in the Philippines operates.
The team were able to observe and understand actual operations of domestic passenger ships and their interface with port operations and the regulatory authorities. They were also able to scrutinize the different types of passenger ships which operate in the Philippines, particularly the traditional wooden bancas and redesigned and modernized Fibre Reinforced Plastic (FRP) boats.
Meetings were held with officials from the Maritime Industry Authority (MARINA); the Philippine Ports Authority (PPA); the Philippine Coast Guard (PCG); and faculty members the University of Cebu and the University of the Philippines to see how to build local expertise.
The field visit identified the need:
for support to create databases for the registration of ships, for the storage of data on safety inspections, and for accident investigation, among others.
to study the ship design of the banca and see how to make it safe and fit for purpose.
to look into the design of modernized banca boats.
to improve capacity for accident investigation and make use of the lessons learned from these investigations to improve safety.
for capacity building for the preparation, implementation and enforcement of safety regulations.
to build local expertise, particularly on maritime safety.
The field visit was the next step in a year-long US$354,250 project funded by the World Bank Group (WBG), the International Finance Corporation (IFC) and IMO’s Integrated Technical Cooperation Programme (ITCP).
* Maritime safety and energy-efficiency consultants; specialists from the World Bank; and the IMO Regional Coordinator for East Asia
The Baltic Exchange’s main sea freight index slipped on Monday over declining rates in the capesize vessel segment.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, was down 32 points, or 1.5%, at 2,114 points.
The capesize index lost 100 points, or 3.7%, to 2,596 points, its lowest since July 11.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $836 at $21,526.
Meanwhile, iron ore futures soared, extending a rally spurred by hopes of an economic rebound for top steel producer and consumer China in the third quarter, and support for the country’s troubled property sector.
The panamax index was up for the fifth straight session, gaining 7 points, or 0.33%, at a two-week high of 2,100 points.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, increased by $62 to $18,900.
Top exporter Ukraine’s grain shipments in the first 24 days of July, the first month of the 2022/23 season, were down 39.5% year on year at 1.08 million tonnes, the agriculture ministry said.
However, Ukraine said it hoped a U.N.-brokered deal aimed at easing global food shortages by resuming grain exports from the Black Sea region would start being implemented this week.
The supramax index fell by 1 point to 2,079 points, snapping four sessions of gains.
Source: Reuters (Reporting by Deep Vakil in Bengaluru; Editing by Shailesh Kuber)
The dry bulk market could be entering a more bearish period in the coming weeks. In its latest weekly report, shipbroker Allied Shipbroking said that “it is without question that the dry bulk sector has been on a gloomy path these past few months or so, with the main benchmark freight figures being under pressure and losing considerable ground. On the other hand, even during a booming market regime, it is still normal to expect to see time intervals in which the market corrects. The important question to answer is as to when a periodical correction means more than the very word “periodical” denotes”.
According to Mr. Thomas Chasapis, Allied’s Quantitative Analyst, “when the market is feeling considerable pressure, downside risk is automatically on the rise as well. The graph below tries to give an indication of this with the use of the technical indicator Ulcer Index (UI). UI captures the depth and the duration in the correction of a price from previous highs. The heftier a correction is and the longer it takes to recover, the higher this metric is sustained. It is considered “superior” to other volatility metrics, given that it accounts only for negative volatility and increases in value through price depreciation”.
Chasapis added that “other classic statistical metrics like standard deviation can appear more confusing from time to time when trying to capture a rising risk environment (higher volatility), when the market can actually be quite bullish. Getting back to the graph, we calculate the UI for all benchmark dry bulk indices, and we extended the analysis from the start of the previous year. It is not the first time that this indicator prevails inflated for all separate size segments, but at this point, we have relatively stronger signs of downward resistance, with the market seemingly unable to recover, while constantly lagging well behind its moving 14-day highest value”.
Source: Allied Shipbroking
“The above technical analysis does not suffice to argue any bearish momentum within the dry bulk market. It is more of an indication to understand the fact that we may well be entering into a riskier market regime in the near term. At the same time, it is worth mentioning that what is shown by this graph is that this won’t be a privilege unique to the bigger sizes. Moreover, as the cost of borrowing is already in a transitional period towards higher levels, does it not automatically mean that the market’s risk has become more ‘expensive’ as well? “, Allied’s analyst concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide
Ten trade organisations, representing the owners and forwarders of cargo, port terminal operators and other parts of the supply chain dependent on container shipping, are demanding an immediate start to the review of European Union’s Consortia Block Exemption Regulation for the container shipping industry.
The Regulation exempts container shipping lines from many of the checks and balances of EU competition law and permits them to exchange commercially-sensitive information to manage the number and size of ships deployed and the frequency and timing of sailings on trade routes around the world.
European businesses and other parties in the supply chain have suffered huge disruption to the movement of goods by container shipping since the Regulation was last renewed in April 2020, with many sailings being cancelled or diverted to other ports, and ports being bypassed (‘skipped’) at short notice. At the same time shipping rates have more than quadrupled on many routes and continue to remain 3 to 4 times higher than in 2019 before the pandemic.
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. The benefits of the exemptions from general competition law enjoyed by the shipping lines are not being shared fairly between the lines and the rest of the economy, and this in itself constitutes a compelling reason why the Block Exemption should be reviewed urgently.
In their letter to the Commission the signatories point to the revelations and recommendations of investigations conducted in the United States by the Federal Maritime Commission, resulting in May in the passing of a new Ocean Shipping Reform Act, addressing many of the grievances of users and services suppliers to the container shipping lines.
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.
Source: Global Shippers Forum
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