Striking subcontractors at South Korea’s Daewoo Shipbuilding and Marine Engineering yard have reportedly decided to accept management’s offers and end their prolonged strike and occupation of a VLCC tanker under construction at the yard. In a report first carried by Reuters and confirmed by Korean media, the subcontractor’s union has agreed to end its action if DSME agrees not to pursue legal cases against the union for damages.

Faced with increasing pressure from the government and with the potential of police intervention growing, the union and representatives of the shipyard resumed negotiations. Initial reports said the two sides remained far apart with DSME firm on its offer of a 4.5 percent wage increase in response to the union’s demands for up to a 30 percent increase. Recent reports said that the union was now seeking a 5 percent increase along with the agreement not to seek damages due to the strike.

South Korea’s news agency Yonhap is reporting that the police are prepared to move to end the strike at any time. The news agency said the police would respond if the current negotiations failed. Earlier, South Korea’s president Yoon Suk-yeol hinted at the use of police saying the time had come to end the illegal action.

Yonhap also noted a softening in the tone of the president’s remarks on Thursday. At the beginning of the week, Yoon voiced harsh criticism over the now 50-day long strike. This morning he said the people wish the strike to come to an end. He said a quick resolution would be helpful to everyone.

While the union representing DSME’s full-time employees has also been critical of the strike, the workers said they would stand with the strikers if the police attempted to move in to end the occupation. They have said there must be a negotiated settlement while also saying the occupation should end.

DSME continues to say that the strike has cost the company more than $400 million. On Wednesday, a spokesman told Reuters that the shipyard was delaying deliveries for eight vessels under construction for anywhere from two to five weeks.

Concerned by the prolonged strike, Business Korea reports that South Korea’s largest shipbuilder, Hyundai Heavy Industries Group convened a meeting of its divisional presidents to discuss the business environment in shipbuilding. They reported that the company said what has been a booming period is evolving into a crisis. They pointed to the impact of rising costs, global inflation, and the war in Ukraine as creating challenges.

Business Korea reports that Hyundai is also commencing contract negotiations with the unions at its three shipyards. In a first-ever move, the three unions have come together with a unified demand for a 7.5 percent wage increase as well as several smaller concessions.

Source: https://www.maritime-executive.com/article/union-offers-to-end-dsme-shipyard-strike-after-days-of-pressure


Thunderball has offer £0.09 per share for Lamprell which values the company at £38.8m, assuming the exercise of full rights under a share issue plan.

Blofeld holds a 25.5% stake in Lamprell and is associated with the yards joint venture partners in Lamprell Saudi Arabia. Sami AlAngari, a person acting in concert with AlGihaz.

Blofeld in wholly-owned Osama AlSayed the controlling shareholder and chairman of Jeddah-based Asyad Holding Group.

As part of the offer Maverick Investments, a company controlled by the AlSayed family and AlGihaz has extended a bridging loan facility of up $145m to Lamprell Energy, which is available to be drawn down in tranches.

Lamprell faces “urgent and severe liquidity constraints” with funding obligations of $95m due by end July. It also has medium-term financial commitments of $164m.

The bidder plans to take Lamprell private, delisting from the London Stock Exchange on completion of the takeover. “Operating as a private company with a simplified corporate structure and a reduced regulatory burden, Lamprell will be able to benefit from the elimination of the numerous costs associated with maintaining a UK public quotation as well as the removal of the short-term financial expectations of the market,” it said.

The bidder said it believed in: “Lamprell’s high quality pipeline has the potential to convert into a high margin backlog and believes that the market segments in which Lamprell operates are underpinned by positive long-term fundamentals.”

Source: https://www.seatrade-maritime.com/finance-insurance/lamprell-board-recommends-464m-takeover-offer


Despite predictions that the long downturn in the cyclical tanker market might be bottoming out, shipowners are remaining on the sideline holding back on new shipbuilding orders. Shipbuilding orders in the segment have reached a new low with industry trade group BIMCO forecasting that it is likely to cause a decline in the global tanker fleet in the near term. However, the contraction in the global fleet might be the good news needed to start the long expected, but frequently delayed, rebound for the sector.

In a new analysis of the shipbuilding market, BIMCO chief shipping analyst Niels Rasmussen reports that orders for both crude oil and product tankers reached a new low for during the first six months of 2022. “Unless contracting picks up, it seems that we may see both the crude and product tanker fleet reducing in size in the coming years,” forecasts Rasmussen.

By the numbers, BIMCO’s data shows that a total of just 23 new tankers were ordered so far in 2022. This amounts to a total of just 1.6 million dwt compared to a previous low of 3 million dwt in 1999. Orders included just three new crude oil tankers and 19 product tankers.

“The orderbook for to fleet ratio is at 5.1 percent for both crude and product tankers,” writes Rasmussen. He concludes that the ratio has not been this low since 1996, 28 years ago during another down cycle in the industry.

UK analysts at Clarksons Research made similar observations in their recent mid-year analysis of the shipbuilding industry. “The tanker orderbook is now the smallest it has been in 25 years,” wrote Clarksons. They calculated that there are just 35 million dwt in orders in the crude and product tanker categories. By comparison, containerships jumped to lead with the global orderbook reaching 72.5 million dwt as of mid-2022.

Despite improved freight rates and a positive market outlook as the tanker sectors seeks to respond to the sanctions on Russian oil, shipowners are holding back on orders. Rasmussen highlights several factors that are likely contributing to the reluctance to place orders. Shipbuilding prices skyrocketed in 2022 surging to their highest levels in 14 years. Further, weighing on the entire shipbuilding industry is an uncertainty over future technologies and increasing emissions regulations. Ship owners have been looking for the best technologies to future proof their investments, with Bimco highlighting that at the moment they are generally favoring LNG with most orders although methanol is drawing increasing attention in shipbuilding.

Near-term, Rasmussen expects that with the decline in orders that size of the global fleet will contract. He points to a projected rate of three percent for demolitions each year while the current build ratio remains low compared to the fleet size. Further, BIMCO highlights that up to seven percent of the tanker sector is now at least 20 years old while nearly a quarter is approaching 15 years in service.

They forecast that the contraction in the fleet, continued demand for oil in the near term, and potential freight rate increases as the markets rebalance in 2023 after the EU’s ban on Russian oil starts, are likely to create the need for new shipbuilding orders. Until those orders can be completed, carriers are likely to see a strengthening in the market as excess capacity declines, but longer-term term BIMCO points to increasing uncertainty as oil demand is expected to peak in the coming decade as the world accelerates its transition to new forms of energy.
Source: https://www.maritime-executive.com/article/tanker-shipbuilding-orders-reach-new-low-says-bimco


The U.S. Justice Department’s mission to seize Russian megayachts has an air of glamor rarely found in the world of sanctions enforcement, but the capture of the yacht Amadea at Fiji appears to be the most glamorous yet.

At the Aspen Security Forum on Wednesday, U.S. deputy attorney general Lisa Monaco – the second-in-command at DOJ – told attendees that a yacht seized in Fiji and recently delivered to San Diego turned out to have a special surprise on board. She did not name Amadea specifically, but it is the only yacht fitting that description.

“Let’s get to the juicy stuff: the yachts,” she said. “We recovered a Fabergé – or alleged Fabergé egg – on one of these so it just gets more and more interesting.”

The Fabergé eggs are a series of intricate, handmade jeweled boxes and “surprises” produced primarily for the Romanov family in the waning years of the Tsardom of Russia. From 1885-1917, the year of the Bolshevik revolution, the jewelers of the House of Fabergé made a series of 52 unique eggs for Tsars Alexander III and Nicholas II. Another 17 were produced for other customers. Today, a total of 57 eggs are known to survive in museum collections, government ownership or private hands.

Fabergé eggs trade for amounts in the range of $12-20 million – well within the means of the Amadea’s alleged owner, sanctioned Russian oligarch Suleiman Kerimov, a billionaire with ties to Russian President Vladimir Putin. Kerimov is not a listed owner of Fabergé eggs, but may be among the small number of undisclosed private owners who hold a handful of these artifacts.

Further high-value art seizures might be ahead as the DOJ’s “Project Klepto-Capture” continues. Oligarch Viktor Vekselberg owns more than 20 Fabergé eggs, along with about 1,000 other items made by the House of Fabergé; his yacht was seized in Mallorca, Spain in early April.

The U.S. hopes to auction the seized assets of sanctioned Russian oligarchs and forfeit the proceeds. The Justice Department has asked Congress to create the legal authority to donate the funds to Ukraine for purposes of repairing damages caused by the Russian invasion; it has also sought legislation extending the statute of limitations for certain financial crimes in order to enable a long-term pursuit of sanctioned Russian assets.


Florida-based Eastern Shipbuilding Group has filed a protest over the U.S. Coast Guard’s decision to award the next hulls in the Offshore Patrol Cutter series to a different yard, Austal USA’s new steel shipbuilding division.

In 2016, Eastern Shipbuilding Group won a contract for the first OPC hull and up to eight follow-on vessels, with potential to build up to 25 in total. The yard’s bid of $420 million per unit helped it to win over higher-cost options from more established military shipbuilders. After a devastating Category Five hurricane swept over its facilities in 2018, the Coast Guard agreed to modify the contract timeline and recompete it after four vessels. ESG invested heavily in repairing and upgrading its facilities, and all four awarded hulls are in varying stages of construction.

However, the Coast Guard announced in early July that it has awarded the contract for the next 11 OPCs to Austal USA, the Australian-owned aluminum specialist known for the Independence-class Littoral Combat Ship series. The decision effectively sunsets ESG’s participation in the OPC program after the delivery of its first four vessels, while providing Austal a new long-term source of revenue as the LCS program nears its end.

Eastern has decided to appeal the $3.3 billion contract decision, citing several potential areas of concern. In a complaint to the Government Accountability Office, ESG highlighted the cost and performance record of certain previous Austal contracts, Austal’s lack of prior experience in steel construction, and the potential cost/schedule program risk these factors might create for OPC. These considerations, according to ESG, should have outweighed Austal’s lower bid price per unit, since the RFP for the contract put a heavier weight on schedule, risk and past performance than on price.

“Austal’s purported lower price is overwhelmed by the substantial risks associated with an award to Austal, a new entrant to the steel shipbuilding industry with a record of well publicized cost overruns and performance issues,” asserted ESG.

ESG also protested an alleged Coast Guard leak of ESG’s proprietary pricing data, as well as Austal’s decision to hire a former Coast Guard commander with inside access to ESG’s information to work on the Austal proposal-writing team.

In a statement, Austal said that it expects to prevail in the dispute.

“We are confident in the integrity of the solicitation process and that the United States Coast Guard’s selection of Austal USA as the Stage II OPC shipbuilder will be upheld. We will remain focused on delivering world-class ships to our customers,” a spokesperson for the firm said.

Source: https://www.maritime-executive.com/article/esg-protests-award-of-offshore-patrol-cutter-contract-to-austal


Orders for LNG-fueled ships are rapidly growing reaching new highs as the shipping industry seeks a near-term step toward addressing its goals of reducing emissions and improving the global fleet’s environmental performance. While viewed by many as one of the best currently available options for the shipping industry, the debate continues over methane slip, the release of unburnt gas, which is viewed by most scientists as very harmful to the environment.

Shipping industry and LNG-centered associations have argued that the industry is making strong progress in reducing or eliminating methane slip with the newest engines. They contend that LNG is being badly misrepresented by environmentalist groups.

Scientists and engineers however are continuing their focus on reducing methane slip. A new program with participation from many leaders in the industry including DNW, Shell, and Wartsila, and being led by the VTT Research Center of Finland, aims at minimizing methane slip from LNG-fueled vessels. Chantiers de l’Atlantique and MSC Malta Shipyard are also partners as are CMA Ships, MSC Cruises, and the Finish Meteorological Institute. The EU has awarded the project with €7 million in funding.

Known as the Green Ray project, it was launched last month with a five-year mandate to study methane slip and develop solutions. The project brief outlines components focusing on analyzing methane emissions, as well as the development of two on-engine technologies and one after-treatment technology that can be applied both for existing vessels and new builds. The project plans to demonstrate system prototypes in an operational environment aboard two new ships and one retrofit to existing vessels.

The project is focused on LNG engine technology based on a low-pressure dual-fuel concept that is the most popular in marine applications. One of the engine technologies they will be exploring is a four-stroke engine seeking to develop an application for the largest engines in the market and able to reduce slip at all engine load levels. These engines are the ones most commonly being used by cruise ships and ferries, as well as the current gas carriers.

Looking toward the containership and tanker segment, the project will also work on a two-stroke engine. Working with a patented LNG injection system, they will seek to significantly reduce methane slip to support the growth of LNG-fueled propulsion in these categories of shipping.

Finally, the project will also be working with a sulfur-resistant catalyst system that they believe can reduce methane emissions by up to 95 percent. The goal is to reduce methane slip to less than 1g/kWh.

The project through its data collection and analysis will also contribute to climate data studies on methane levels, which will allow for a more global assessment of GHG emissions from LNG marine fuel. The data collected will be combined with onboard experiments and modeling to provide a more comprehensive outlook of the climate impacts of marine transport.

A similar project was launched in Japan in 2021 aiming to achieve a methane slip reduction rate of more than 70 percent for LNG-fueled vessels over the next six years. The reduction will be achieved by combining methane oxidation catalysts and engine improvements, while other efforts are focusing on adapting exhaust scrubbers to also be able to achieve capture of methane before it is emitted into the environment.
Source: https://www.maritime-executive.com/article/european-project-to-develop-solutions-for-methane-slip-from-lng-vessel


A competition launched by The Seafarers’ Charity to mark Maritime Safety Week (4-8 July), invited everyone who works at sea to practice and improve their crew muster safety drill.

The competition saw crews from fishing vessels to chemical tankers, and even Border Force, submitting photographs and videos of their safety drills. Many of the crews found that through practice they were able to improve their drill time, which in a real emergency at sea, could help save lives.

The competition judges, Robert Greenwood, Director of The Safety Folder and Captain Jeff Parfitt, Head of Safety & Environment at The Nautical Institute, reviewed all entries submitted and were delighted to choose four winners based on speed, technique, and style of each crew.

Meet the winners:
The Karima is a 26-metre fishing trawler and they have won First Prize. The crew produced a brilliant video of their drill while out in the North Sea.

By taking part in the competition, the Karima crew halved their drill time to 2 minutes and 27 seconds after practising for 2 weeks, which is very impressive considering the amount of safety gear and survival equipment they donned including pyrotechnics and Search and Rescue Transponders (SARTs). The crew reported that practising this drill together was also very helpful for those crew members who had recently joined the vessel.

The Benaiah IV is a 20-metre fishing trawler also fishing in the North Sea.

By taking part in the competition, the Benaiah IV crew had significantly improved their drill times too and the judges were impressed with the additional survival equipment brought to the muster point as well. Their safety drill demonstrates that survival at sea in an emergency is all about working together as a team.

Robert Greenwood said, ‘We wanted to highlight the best fishing vessel entry in the Safety Drill Time competition, but in the end, it was just too difficult to choose between the quality entries from Karima and the Benaiah IV and we decided they are both very worthy winners. Well done to both crews.’

The other two winners were both Ardmore Shipping tankers who demonstrated a great level of skill and teamwork.

The Ardmore Cherokee is a 159-metre tanker. The crew’s muster drill really impressed the judges, as they demonstrated their lifeboat launching drill as well.

Here are some top tips from the crew:

‘The “secret” is just the proper implementation of requirements and carrying out drills in a very realistic manner.
Briefing and debriefing sessions are very important while looking to make the crew more responsible.
Always look for inexperienced crew and help them to get better instead of keeping them away from the action.’

The Ardmore Encounter, a 183-metre tanker crew’s muster drill was also judged as very competent by the judges, and they produced a great video while improving their safety drill time.

Regular drills were carried out ahead of the competition and helped the crew improve its speed.

All four vessels won great quality gear from Guy Cotton Clothing and XtraTuf, as well as Safety Champion 2022 plaques for each vessel. Congratulations to all winners and a huge thank you to all participants for taking part.

Take a look at the videos and pictures from the winners
The Seafarers’ Charity is planning to run the competition again in 2023 – so there is plenty of time to begin practising for next year!
Source: The Seafarers’ Charity


Offshore sector consultancy Westwood Global Energy predicts that there will be good times to come for offshore oil and gas development over the next five years.

2022 is looking like a great year for offshore development, though inflation and supply-chain impacts have tempered expectations somewhat. Offshore EPC contracting activity tripled year-on-year in the first half of 2022, reaching $26 billion, reflecting multiple major new project approvals like Exxon’s Yellowtail off Guyana and Equinor’s Haltenbanken East multi-field complex in the Norwegian Sea. The contracting activity includes eight new/refurbished floating production units, 52 platforms and a total of nearly 900 nautical miles of pipeline.

The second half of 2022 could bring another $46 billion worth of EPC awards – particularly from Saudi Aramco, which is investing heavily in four large offshore projects. Taken together, these contracts would amount to more than $70 billion worth of investment over the full span of 2022 – more than in any year since at least 2014, according to Westwood’s data.

The recent period of underinvestment (during COVID) and the return of ultra-high oil prices could boost investment for years to come. Westwood’s markety analytic tools predict a long upcycle through 2026, with offshore EPC spending totaling about $275 million over the period. This is more than 70 percent increase over the past five years, which saw a downturn in investment in the sector. The busiest areas of activity will likely be in Asia, the Mideast and Latin America.

The rising tide is also lifting offshore supply vessels and rigs, which are now bringing in the highest day rates in years – a welcome relief after an extended low period and a wave of consolidation. Clarksons’ sector-wide offshore index has hit a seven-year high, and OSVs are bringing in 50 percent more per day now than they did at the beginning of 2021. OSV utilization is vastly improved at 68 percent and climbing, and the laid-up offshore vessel fleet – a long-term drag on rates – has fallen below 800 hulls worldwide.

Source: https://www.maritime-executive.com/article/westwood-sees-five-good-years-ahead-for-offshore-oil-and-gas


Foremost Electronics, the engineering-led Essex based importer and specialist distributor of electromechanical components, announces the availability of a wide range of enclosures providing rugged protection of electronic systems for shipboard naval systems and maritime electronic equipment.

Applications include shipboard targeting radar, anti-submarine systems, communications equipment and control and monitoring equipment.

Continued maritime threats including territorial disputes, smuggling, and piracy are driving countries to make greater investments in their naval capabilities. This includes adoption of the latest satellite communication technology as well as focusing on smaller vessels with enhanced weapon systems. Commercial marine operators are also enhancing their electronic security and communication systems.

Foremost specialise in manufacturing components that can stand up to harsh environments, rugged applications, and extreme conditions as well as meeting shock and vibration requirements. Foremost’s products combine the know-how of specialists in the integration of mechanics, electronics, and thermal control together with many years of experience and diverse application requirements to maximize customer’s size, weight, and power requirements.

NVent Schroff products from Foremost offer robust 19″ cabinets that meet the specifications of MIL-S-901D. Their characteristics allow systems builders to meet stringent shock and vibration resistance requirements on the high seas.

The Schroff VARISTAR platform offers simple system development and integration capability and includes the following advanced features:

  • Elastomer or wire cable shock absorbers for COTS (commercial off-the-shelf) equipment.
  • Wide range of dimensions.
  • Wide range of accessories.
  • HF shielding
  • Reduced development and manufacturing costs.
  • 19″ standard, in accordance with RoHS.

A cabinet for individual requirements can be quickly and easily developed and validated by numerical simulation, saving lengthy and expensive tests in a laboratory. The elastic suspension is specially adapted to the mechanical environment and the resilience of the components. At the same time, the dimensions and weight of the cabinet are tailored to specific integration requirements. The final design is further validated using a model that has been calibrated in real tests using a finite element calculation.

Source: https://www.electronicspecifier.com/products/component-management/rugged-enclosures-offer-protection-for-naval-and-commercial-maritime-electronic-systems


The ReCAAP Information Sharing Centre (ISC) has released its Half Yearly Report 2022 for the period of January to June. The key highlights of the report are as follows:

Overall situation

·No incident of piracy (occurred on high seas) was reported.

·A total of 42 incidents (comprising 40 actual and 2 attempted) of armed robbery against ships (occurred in internal waters, archipelagic waters and territorial seas) were reported in Asia during January to June 2022.

·This represents an 11% increase compared to 38 incidents reported during the same period in 2021.

·The severity level of the actual incidents are as follows:
One Category 2 incident (same as in 2021)
10 Category 3 incidents (same as in 2021)
29 Category 4 incidents (25 incidents during same period in 2021)

Increase of incidents

·Singapore Strait (SS) and Bangladesh Anchorages
27 incidents were reported in SS (20 incidents were reported during the period of January to June 2021). The SS remains an area of concern.
Three incidents were reported at Chattogram Anchorages, Bangladesh (no incident was reported during the same period in 2021).

Areas of improvement

·Anchorages in Malaysia, the Philippines and Vietnam.
No incidents were reported in Malaysia (one incident was reported during the same period in 2021).
Three incidents were reported in the Philippines (six incidents were reported for the same period in 2021).
No incidents were reported in Vietnam (two incidents were reported for the same period in 2021).

Situation in Sulu-Celebes Seas and Waters Off Eastern Sabah

·There was no incident of abduction of crew for ransom in the Sulu-Celebes Seas and waters off Eastern Sabah since the last incident reported on 17 Jan 20. However, the threat of abduction of crew for ransom remains potentially high, particularly in the area of Sulu and nearby waters off Tawi-Tawi as the Abu Sayyaf Group (ASG) commanders responsible for past incidents of abduction in Sulu are still at large and the presence of remnants of the group in the sea.

Today, ReCAAP ISC also conducted a Dialogue Session with representatives from the shipping industry to share with them the key highlights of the Half Yearly Report 2022. Amongst the issues discussed were sharing of concern regarding the increase of incidents in the SS, and views on how to address these incidents including the conduct by crew when transiting the areas of concern. The participants also agreed on the need for the shipping industry to continually review the Risk Assessment Plan, implement the Ship Security Plan among other time-tested best management measures required to suppress the acts of piracy and armed robbery against ships.

The organisations represented at the dialogue included the Asian Shipowners’ Association (ASA), the Baltic and International Maritime Council (BIMCO), the Singapore Shipping Association (SSA), the Federation of ASEAN Shipowners’ Association (FASA) as well as various shipping companies.

“ReCAAP ISC will continue to provide the shipping community with timely and accurate information. Through the Phase-I of data analytics generated over a 15-year period of 2007-2021 that focused on the number of perpetrators, weapons carried, treatment of crew, stolen items, type of ships boarded and time of the incidents. The Phase-II of data analytics is underway and we hope to be able to provide more analytical information that will enable the ship crew to be better prepared for any potential piracy and armed robbery incidents by adopting the relevant safety measures especially when navigating through the areas of concerns.

Through dialogue sessions with the shipping community such as the one held today, the Centre aims to better understand the challenges faced by the shipping industry. It is only when we remain in close partnership with our key stakeholders that we can ensure that the sea lanes are kept safe and secure for the smooth traverse of maritime trade  and  commerce  for  the   economic   growth   of   all   in   the   region”   said Mr Krishnaswamy Natarajan, Executive Director of ReCAAP ISC.

Looking ahead, ReCAAP ISC will work towards enhancing regional cooperation with the relevant authorities in the region through information sharing and capacity building  initiatives. The Centre will also continue to urge its Focal Points to increase surveillance and patrols to deter perpetrators. Additionally, it is only when there are arrests and prosecution of perpetrators that the threat from these maritime crimes can be further reduced.

As part of efforts to encourage the ship crew to report incidents to the appropriate local coastal state authority for timely response by the enforcement agencies, ReCAAP ISC has published a Poster containing the contact details of Maritime Rescue Co-ordination Centres (MRCCs) and ReCAAP Focal Points. The Centre will also be producing a catalogue on fishing boats operating in Asian waters for easy identification of boats by the ship’s crew. This will enable the ship’s crew to describe the boat to the authorities when attacked by the perpetrators.

Source: ReCAAP


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