On 22 July, Russia and Ukraine signed an agreement with Turkey and the United Nations to allow grain exports from three ports in western Ukraine: Yuzhne, Chornomorsk, and Odesa. Combined, the three ports accounted for 65% of the country’s total grain exports over the past five years. Exports could, however, face several difficulties.

The deal is valid for 120 days, with an option to extend, and it allows bulkers to be escorted to the ports through a safe corridor. To create a navigable passage, the corridor will have its sea mines removed, a process that is expected to take one to two weeks.

Description automatically generated

“With this deal, the UN hopes to increase monthly grain exports from Ukraine by five million tonnes. However, since over the past five years, these three ports have not ever handled such a high amount of grain, meeting this target could prove to be a challenge,” says Niels Rasmussen, Chief Shipping Analyst at BIMCO. “Even if port logistics accelerate to expedite exports, the need to escort ships in and out of the ports is likely to cause some congestion.”

Over 20 million tonnes of Ukrainian grains are ready for export and the country’s grain traders union (UGA) expects around 25 million tonnes more to come from the 2022 harvest. With the wheat harvest underway and the maize harvest to start in September, a swift export of grain is needed to ensure space in silos for the new harvests. To accelerate exports the Danube ports, as well as land routes, will likely continue to play an important role in the shipment of Ukrainian grain in the short to medium term.

“A significant obstacle to Ukrainian grain exports will be the voyage risk and corresponding insurance premiums. For the shipping of Ukrainian grain to be attractive, high rates will be necessary to mitigate risk-related expenses,” says Rasmussen. “Russia’s recent missile strikes in ports such as Odesa will add to the insecurity and uncertainty of operating in the Black Sea.”

Due to limited global supply of wheat and maize, a return of Ukrainian grain to the global market would positively impact the Panamax, Supramax and Handysize segments. Additionally, the boost in Ukrainian exports would help combat inflation and food insecurity, particularly in emerging economies, and help bring needed stability to the global economy.
Source: BIMCO, By Chief Shipping Analyst, Neils Rasmussen

The Director-General, Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Bashir Jamoh, has inaugurated the Expert Level Planning Team (ELPT) of the Agency to draft the National Maritime Security Strategy (NMSS) to sustain the Agency’s successes in the fight against piracy.
Jamoh also commended the International Maritime Organisation (IMO) for its technical support to Nigeria by assigning facilitators to assist the country.

According to the DG, maritime security will always be of priority concern to the Agency, noting that it is the bedrock and guarantee of every meaningful shipping enterprise.

The NIMASA DG said the strategy would become the culmination of all the various efforts,initiatives, partnerships the Agency started out under its “Triple S” of Maritime Security, Safety and Shipping Development upon his assumption of office in March 2020.

He said, “There can be no doubt, to the fact that maritime security is the bedrock and guarantee of every meaningful shipping enterprise. From the crew to cargo to carrier to the coast and quayside, there must be security all the way for confidence to drive shipping economics.

“Maritime security has always been and will continue to remain a priority. You are all aware of the current successes achieved in ensuring maritime security within the nation’s maritime domain and the Gulf of Guinea (GoG) as a whole.

“Specifically, the GoG region is experiencing an unprecedented decline in piracy incidents over the past three decades. Only as recently as last week, the International Maritime Bureau (the IMB) finally confirmed all the progress we have been making and announcing for months the said Piracy in the Gulf of Guinea – has declined for real. This is a fact that we can all be proud of.

“Also, this is the product of concerted efforts of the Agency in collaboration with other relevant government bodies such as the Nigerian Navy, Nigerian Air Force, Nigerian Police Force, Nigerian Army, the Department of State Security (DSS), and several other state and non-state actors and stakeholders having security responsibilities.

Jamoh pointed out that NIMASA is mindful of the dynamic nature of maritime security threats; hence the need to take deliberate steps to ensure sustainability of its achievements, through the establishment of a coordinated, whole-of-government approach in dealing with issues of maritime security.

He stated that the Agency’s strategic responsibilities to protect ships, seafarers, shipload, merchandise, ports and all other assets in Nigeria’s maritime domain as mandated by the NIMASA Act, ISPS Code Implementation Regulations (2014) and, more recently, the Suppression of Piracy and Other Maritime Offences (SPOMO) Act makes it pertinent for it to successfully drive the collaborative development of the NMSS.

“I am therefore hopeful that by the end of this program, not only will you be trained as Maritime Security Professionals (MSPs), you will also be equipped with the requisite skills to offer similar training on behalf of the Agency to individuals who intend to carry out specific maritime security functions.

“The Expert Learning Planning Team (ELPT) is to develop a blueprint of the National Maritime Security Strategy (NMSS). This would serve as the basis for your determination of the members of the cross government Working Group (WG) that will execute subsequent steps of this drafting process.

Jamoh thanked the International Maritime Organisation (IMO) for the technical assistance through Philip Heyl and Rear Admiral O.C Medani of the Nigerian Navy (Rtd) facilitating the sessions.

He added that the IMO’s unflinching assistance has enabled the Agency to develop a workable, multi-phase plan, which it is currently executing.

Source: https://nimasa.gov.ng/jamoh-inaugurates-expert-team-on-maritime-security-strategy/

Saudi Arabian shipyard International Maritime Industries (IMI) has expanded its partnership with Hyundai Heavy Industries (HHI) through a technical service agreement to aid the Middle Eastern builder in delivering VLCCs.

HHI has been helping IMI expand its expertise since it was founded five years ago. The Korean yard is one of four founding partners in the joint venture in Saudi Arabia with the others being Saudi Aramco, Bahri and Lamprell.

Dr. Abdullah Al Ahmari, CEO at IMI, said: “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.”
IMI is the largest shipyard in the Middle East at nearly 12m sq m.

Sourcce: https://splash247.com/hyundai-heavy-aids-saudi-yard-in-developing-vlccs/

Mexico has the potential to establish itself as a global leader in maritime decarbonisation by engaging in green fuel production and bunkering with swift and strategic action, according to a new report by P4G Getting to Zero Coalition.

Being placed between well-established shipping routes and trade relations to multiple continents in the Pacific and Atlantic Oceans, the report found Mexico could tap into new markets and by investing it itself, the country could create new revenue streams from scalable zero emission fuels (SZEF) exports and bunkering, establish green hubs and ports, as well as open possibilities for green corridors along key shipping routes.

“The massive demand for zero emission fuels that will arise constitutes a major growth opportunity for Mexico, having the chance to become a future powerhouse for international shipping in Latin America,” said Ingrid Sidenvall Jegou, project director at the Global Maritime Forum.

According to the report, the development of green fuel infrastructure to serve Mexico’s shipping sector could attract investments ranging from $1.9bn to $2.7bn in onshore infrastructure by 2030. It discovered three key opportunities for Mexico, including the port of Manzanillo, DH2 Energy activities in Central Mexico, and Baja California, all of which are said to benefit from SZEF production, offtake, and distribution.

A facilitative policy and financial framework capable of effectively motivating and convening key actors across sectors and value chains is critical to unlocking these opportunities. The 111-page analysis stressed that the country currently lacks a favorable ecosystem, both politically and economically, to leverage benefits from SZEF production and use, particularly given the current administration’s preference to continue exploiting the country’s fossil fuel resources.

The report suggested that with appropriate incentives and targeted action towards encouraging investments into renewable energy and fuel production, Mexico could gain a competitive advantage in the bunkering and export of fuels in Latin America as other countries in the region take steps to prepare their own bunker supply chains.

Source: https://splash247.com/mexico-highlighted-as-potential-zero-emission-fuels-hub-for-shipping/