Strategic Marine (S) Pte Ltd (“SMS”) has successfully delivered a 42m Fast Crew Boat (FCB) to repeat client Centus Marine Sdn Bhd. The FCB is a bespoke design and is the fourth vessel delivered to the offshore marine service provider in the last two years.
The 42m FCB has been designed to meet the specific requirements of oil majors, its station-keeping and maneuvering capability have been enhanced with a tunnel thruster installed at the bow.
Powered by three Cummins KTA50 engines, the FCB completed its sea trials last month achieving impressive results, cruising at 30 knots and reaching top speeds of more than 31 knots. The FCB has also been designed with rigorous weight control measures to boost performance and incorporates robust hull engineering for the tough commercial environments and demanding offshore conditions where it will be operational.
Crew comfort is a priority, and this is reflected in the interior arrangement of the vessel. It can carry up to 100 personnel in spacious business class recliner seats with dedicated luggage racks and an accommodation area that offers 12 berths in seven cabins. The new vessel also offers bow boarding, an enlarged wheelhouse and incorporated a large deck storage area with wide walkways to ensure safe and efficient crew transfer in challenging offshore conditions.
Centus Marine said: “This new vessel boosts our fleet, significantly enhancing our capacity and capabilities. As before, working with Strategic Marine we have been able to incorporate our latest refined design and ensure that this vessel is as tailored to our specific operating conditions as possible.”
Strategic Marine’s General Manager Commercial, Mr Wayne Poh said: “This is the latest vessel successfully delivered on schedule to Centus Marine. We pride ourselves on close communication between both parties at all stages of the build and our commitment to continuous improvement means that we are always ready to respond to customer feedback. Centus Marine is a highly valued customer and we appreciate their confidence in our high quality vessels, and look forward to working with them in the future.”
Strategic Marine Group has now built and delivered more than 600 vessels made of both aluminium and steel for a variety of clients in the maritime, offshore and naval defence sectors. The company’s solid reputation continues to grow, based on its high-performance vessels built on time and to budget.
Hong Kong plans to amend eight regulations under the Merchant Shipping (Safety) Ordinance, the Merchant Shipping (Prevention and Control of Pollution) Ordinance, and the Merchant Shipping (Local Vessels) Ordinance.
It intends to incorporate the latest requirements under three conventions of the United Nations’ IMO:
– the International Maritime Dangerous Goods Code (IMDG Code);
– the International Convention for the Prevention of Pollution from Ships;
– the International Convention on the Control of Harmful Anti- Fouling Systems on Ships.
The proposed amendments to the regulations include the prohibition on the use and carriage for use as fuel of heavy fuel oil by ships in Arctic waters, the exemptions of unmanned non-self-propelled barges from survey and certification requirements, the controls on cybutryne for use as a biocide in the anti-fouling systems of ships, the new requirements of certain greenhouse gas emission reduction measures and regular revision of the IMDG Code.
The eight regulations up for amendment are:
– the Merchant Shipping (Safety) (Fire Protection) (Ships Built Before 25 May 1980) Regulations;
– the Merchant Shipping (Safety) (Fire Appliances) (Ships Built On or After 25 May 1980 but Before 1 September 1984) Regulations;
– the Merchant Shipping (Safety) (Fire Protection) (Ships Built On or After 1 September 1984) Regulations;
– the Merchant Shipping (Prevention of Oil Pollution) Regulations;
– the Merchant Shipping (Prevention of Pollution by Sewage) Regulation;
– the Merchant Shipping (Control of Harmful Anti-Fouling Systems on Ships) Regulation;
– the Merchant Shipping (Prevention of Air Pollution) Regulation;
– the Merchant Shipping (Local Vessels) (General) Regulation.
The Transport and Housing Bureau said that the Government of Hong Kong has been sparing no effort in implementing the latest requirements from the International Maritime Organisation through local legislation. The proposed amendments will contribute to environmental protection and the sustainable development of the maritime industry.
Against the backdrop of a former Massachusetts coal-fired power plant that is to host a cable manufacturing facility to support offshore wind, President Biden today announced a number of executive actions on climate aimed at addressing extreme heat and boosting offshore wind.
According to a White House fact sheet, the offshore wind actions include kickstarting the potential for offshore wind in the Gulf of Mexico and promoting offshore wind opportunities in the Southeast.
TWO GULF WIND ENERGY AREAS
In response to the President’s actions, the Department of the Interior today announced that the Bureau of Ocean Energy Management (BOEM) is now seeking public input on the identification of two potential offshore wind energy areas (WEAs) in the Gulf of Mexico (GOM) Outer Continental Shelf (OCS).
The first draft WEA is located approximately 24 nautical miles off the coast of Galveston, Texas. The area for review totals 546,645 acres and according to BOEM has the potential to power 2.3 million homes with wind energy. The second draft WEA is located approximately 56 nautical miles off the coast of Lake Charles, La. The area for review totals 188,023 acres and has the potential to power 799,000 homes.
The first draft WEA is located approximately 24 nautical miles off the coast of Galveston, the second is 56 nautical miles off the coast of Lake Charles, La.
The two draft WEAs represent a subset of the original 30-million acre Gulf of Mexico Call Area that the Department of the Interior announced for public comment in October 2021. The draft WEAs were reduced to avoid potential impacts on other ocean uses and resources, such as commercial and recreational fishing, maritime navigation, military activities, marine protected species, avian species, and existing infrastructure.
Public comments on the draft WEAs will be accepted for 30 days beginning July 20, 2022.
In addition to the draft WEAs, BOEM has prepared a draft environmental assessment (EA) covering the entire call area to consider the potential impacts from site characterization (e.g., marine mammal surveys) and site assessment (e.g., installation of meteorological buoys) activities expected to take place following lease issuance. The EA analysis will inform potential lease stipulations necessary to address identified environmental impacts associated with offshore wind leasing activities. Public comments on the draft EA will also be accepted for 30 days beginning July 20, 2022.
SOUTHEAST
The White House fact sheet says that the prior Administration cast uncertainty over the future of offshore wind and other clean energy development off the coasts of Florida, Georgia, South Carolina, and North Carolina.
“Today, President Biden is directing the Secretary of the Interior to advance clean energy development in these federal waters—ensuring that these southeast states will be able to benefit from good-paying jobs in the burgeoning offshore wind industry,” said the statement.
Expect an announcement from BOEM in the not too distant future.
NOIA REITERATES CALL FOR RENEWED OIL AND GAS LEASING
National Ocean Industries Association President Erik Milito issued the following statement following President Biden’s announcement:
“Our country is in dire need of a cohesive national energy policy. The opportunity is before us to produce reliable, affordable, lower carbon, and secure domestic energy. We can only get there through an all-of-the-above approach, which must include the resumption of domestic offshore oil and gas leasing.” said. On a positive note, the Administration continues to promote investment in the offshore wind sector, and the full supply chain of the offshore energy industry is well-positioned for the build-out of the U.S. wind sector. We look forward to advancing projects in the Gulf of Mexico and Southeast.
“Companies along the Gulf Coast are innovating durable climate and emissions solutions across the wide spectrum of energy sectors. Resuming Gulf of Mexico oil and gas leasing will enable continued innovation, including the build-out of American offshore wind, and will reduce the need to secure our energy from foreign, higher emitting sources.”
Major salvage cases continue to make the headlines lately and, according to many insurance sources the costs of these cases are rising. Indeed, according to Allianz Global Corporate & Specialty, the near two-year salvage operation for the car carrier Golden Ray “cost in excess of $800 million.”
Given the sorts of numbers that start flying around whenever there’s a major casualty, it may come as a surprise that the International Salvage Union’s just-released statistics for 2021 show only a modest recovery in ISU member gross revenues. They reached $391 million, compared with $301 million in 2020.
ISU members provided 189 services in 2021, compared with 182 in the previous year.
Lloyd’s Open Form (LOF) cases continued to decline, down to just 29 cases compared to 40 in 2020. However LOF revenue was up, at $122 million, more than double the $60 million reported for 2020.
Wreck removal income reached $108 million from 56 services, compared with $98 million from 101 services in 2021.
CHALLENGING ECONOMIC CONDITIONS
ISU President Captain Nicholas Sloane
“Economic conditions are challenging and activity and income for our industry is volatile year-on-year. The general trend towards a smaller number of larger and more complex cases enhances that annual variability,” said ISU President, Resolve Marine Group’s Captain Nicholas Sloane. “The numbers in this survey reflect the period when the world was still fully contending with the COVID pandemic which made operations and logistics more challenging. Throughout those difficult times ISU members showed time and again their problem solving and willingness to overcome obstacles to provide services to their clients, the shipowners, and their insurers. And, taken alongside the ISU’s pollution prevention statistics, these numbers demonstrate a dynamic industry which most years performs some 200 salvage services.”
“Professional salvors protect the environment, reduce risk and mitigate loss. They also keep trade moving – which is demonstrated so clearly when there are large containership cases. We continue to work closely with key stakeholders to ensure that there is continued global provision of professional salvage services.”
The 2021 ISU statistics show a historic low level of LOF cases – 29 for ISU members – generating income of $ 122 million. It compares with 40 cases worth $ 60 million in 2019. Revenue from LOF cases amounted to 50 per cent of all emergency response revenue and LOF cases accounted for 15 per cent of emergency response cases in 2021. SCOPIC revenue at $41 million in 2021 was up from $24 million previously.
Revenue in 2021 from operations conducted under contracts other than LOF was $120 million, effectively the same as in 2020 ($119 million). The average revenue from each non-LOF contract was therefore $750,000.
Wreck removal is an important source of income for members of the ISU but 2021, with $ 108 million from 56 operations (28% of the total income), showed the same trend as 2020 ($98 million received from 52 services – 33 per cent of the total).
The ISU statistics are collected from all ISU members by a professional third party, which aggregates and analyzes them. The statistics do not include the revenues of non-ISU members but are the only formal measure of the state of the marine salvage industry. The statistics are for income received in the relevant year but that can include revenue relating to services provided in previous years and there can be an element of “time lag”. The statistics are for gross revenues from which all of the salvors’ costs must be met.
Observers of the US Supreme Court say new rules could be promulgated by the Securities and Exchange Commission (SEC) earlier this year, mandating environmental disclosures.
If the proposed rules move into law, shipping companies with shares transacted on US exchanges, along with all other listed companies, would need to provide extensive information on their emissions.
More broadly, the myriad of listed companies moving cargo would need to put numbers on emissions tied to production and transporting materials used in their processes; shipping companies would therefore need to be providing more information to their charterers.
Legal analysts and legislators are divided on whether environmental disclosures are within the SEC’s authority- regulating financial matters. One Republican Senator, Pat Toomey (Republican-Pennsylvania) was quoted as saying that the agency “is attempting to impose this whole climate change disclosure regime … with no authority from Congress to do that.”
Florida-based shipping company World Direct Shipping has selected marine exhaust emissions technology manufacturer CR Ocean Engineering (CROE) as the preferred scrubbing system supplier for its containership Queen B III.
According to CROE, this is the third project that the company will complete for World Direct Shipping. Previous projects included the supply of scrubbers for the shipping company’s Queen B and Queen B II vessels.
By installing scrubbers on its vessel, World Direct Shipping aims to continue using heavy fuel oil (HFO) as known and reliable fuel while meeting the IMO/MARPOL regulations and safeguarding the environment.
It is estimated that CROE’s multistream scrubber will remove about five tons of SO2 emissions per day from the combined exhaust from the main engine plus three auxiliary engines.
In addition to reducing the SO2 emissions, several studies have now shown that scrubbers also reduce the larger airborne particles and, in conjunction with HFO, have a carbon footprint that is significantly smaller than when using low sulfur fuels such as very low sulfur fuel oil (VLSFO) and marine gas oil (MGO), CR Ocean Engineering said.
According to the manufacturer, the Queen B III will be installed with an open loop scrubber with the ability to be modified later to a closed loop or hybrid.
It will also be designed to have a “bottom inlet” configuration and will be installed outside the existing funnel, thus allowing for maximum pre-assembly and faster installation.
IMO has organised a port security workshop in San Pedro Sula, Honduras as part of its capacity building support for Member States. The workshop (18-22 July) primarily focuses on SOLAS Chapter XI-2 and ISPS Code for Designated Authorities (DA) and Port Facility Security Officers (PFSOs), thereby supporting officials to perform their duties in line with IMO maritime security measures.
A total of 31 participants* with roles relating to Honduras’ port security are attending the national workshop. They will receive the knowledge and skills to understand the requirements of key IMO maritime security instruments.
The event, which was requested and co-hosted by the Honduras National Commission for Port Security (Comisión Nacional de Protección Portuaria) included a visit to the Port of Puerto Cortes.
* Seventeen officers in charge of port security from ports across Honduras, six representatives of the National Commission for Port Security, two Navy officers, two merchant marine officers and four port management students.
Construction is underway on the first shore power installation specifically designed to handle containerships. The demonstration project is being built at the Port of Hamburg initially serving two of the terminals and is due to enter an initial test phase in 2023.
The Hamburg City Council authorized the project at the end of 2021 as part of the city’s overall plan to improve air quality and begin dramatically reducing greenhouse gas emissions by 2025. Hamburger Hafen und Logistik (HHLA) which will have the first capability at two of its container terminals, points out that shore power is complex and not easily installed.
Working with the successful installation of shore power for cruise ships at Hamburg Altona as the model, the Hamburg Port Authority, as proprietor of the quaysides at the Port of Hamburg, commissioned Siemens to construct the shore power systems. The stations are being built at the container terminals Burchardkai and Tollerort operated by HHLA.
While the use of shore-side electricity substantially reduces the emissions of a docked ship, HHLA explains some of the challenges required to making shore power available for ships in the port. They pointed out that for a containership to turn off diesel generators usually used for power on board, it requires about as much power as a small city.
The electric grid and generation capacity needs to exist to support the installation or additional generating capacity is required before shore power can be made available. Many ports around the world looking to provide shore power faces these challenges, while experts also point out that increasing the on-shore power generation needs to be done in an environmentally appropriate means so as not to transfer the emissions from the ship to the power plant.
HHLA explains that currently approximately 75 percent of all ships are equipped with 60-hertz onboard power systems. Yet only a quarter of all countries’ electrical grids operate on this frequency. For example, Germany uses 50 hertz. This requires a complex undertaking to adapt the land frequency and onboard frequency to provide safe power to the ships.
The first shore-side power station in Europe for cruise ships began operations at the Cruise Center Altona in 2016. Since then, numerous ports have adopted shore power and with pending regulations in Europe for in-port emissions, it is expected that more ports will adopt shore power.
While shore power is currently mostly used for cruise ships and ferries, several ports have begun to explore extending it to commercial shipping. Gothenburg, Sweden reported that it was the first port to provide shore power for tankers. The Port of Rotterdam and Stolt Tankers working with Vopak Botlek recently announced a six-month feasibility study for the use of shore-based power for chemical tankers. They highlighted the unique safety concerns of using shore power with tankers.
Hamburg is also participating in a collation with the ports of Antwerp, Bremerhaven, Haropa Port in France, and Rotterdam looking to coordinate their efforts at launching shore power. The five port authorities are calling for a coordinated approach to reduce capex costs through innovation and to provide clarity that will stimulate the shipping sector to equip vessels and make it possible for vessels to use shore power in multiple ports. Working together they plan to coordinate the efforts in their respective ports to ensure consistency in shore power to encourage the industry’s adoption of the technology for a wider segment of ships.
Source: https://www.maritime-executive.com/article/first-shore-power-capability-for-containerships-being-built-in-hamburg
Shell’s beleaguered, ultra-costly Prelude LNG project has been hit with another blow. Its workforce has gone on strike, forcing the floating LNG plant to suspend loadings at a time of record-high spot prices.
The labor dispute has been running since June 10 with a combination of one-hour work stoppages and partial work bans. Last week, when the workers announced a “mooring ban” on LNG carrier arrivals, Shell was forced to shut down production.
Union coalition Offshore Alliance recently informed Shell that it plans to extend its strike through August 4, and Shell’s management has responded with a lockout. Beginning July 25, Shell plans to cease pay for workers who have been taken off the facility. It is already removing nonessential staff and sending them back to shore.
“Following the production shutdown caused by the protected industrial action, we cannot continue to operate in the same way,” a Shell spokesperson said in a statement. “As a consequence, we will be resorting to lock outs as the mechanism available under the Fair Work Act. Once the lockouts are in effect, people will no longer be paid if they are not mobilised to the facility.”
However, Offshore Alliance has warned that a lockout could have consequences beyond the negotiating table. “If Shell is actually serious about a lock-out it will significantly increase the chances of breakdown [on board],” Australian Workers Union leader Daniel Walton told Financial Review. “Shell will also encounter major issues with the regulator and struggle to maintain its licence to operate.”
Shell says that it has offered its unionized workforce a pay raise of $20,000 on top of their average current salary of $140,000. However, the union says that it also wants job security guarantees in order to prevent Shell from outsourcing work to contractors. Its 150 members have turned down the pay offer by a wide margin.
The shutdown takes Prelude’s output off the global market at a time of particularly tight supply. Prices in East Asia are at historic levels approaching $40 per MMBtu, up threefold year on year.
Prelude’s nameplate capacity is about 3.6 million tonnes per annum, but in reality, the troubled facility has rarely lived up to its expected potential. It has been plagued by breakdowns, including a fire and three-day power outage last December. That accident prompted Australia’s National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) to shut Prelude down until Shell could prove that it had made safety improvements.
Labor-management relations may have been colored by December’s power outage. Crewmembers told WA Today that they had had to manage human waste manually because the sewage system was shut down, and without power for transfer pumps, they had to shuttle cans of diesel around by hand to keep a backup generator running. Offshore Alliance spokesman Brad Gandy called the accident “unforgivable” and said that “similar failures” had occured on board in the past. “Clearly Shell has not learned from its past mistakes,” he said at the time.
Ro-ro VICTORY RORO was intercepted by the EU Navy Operation IRINI ships – Greek and Italian frigates, in Mediterranean off Libyan coast, on Jul 18 according to track analysis. The ship was boarded and inspected on suspicion of illegal arms transportation to Libya. VICTORY RORO was en route from King Abdullah Port, Saudi Arabia, to Benghazi, Libya. Inspection found vehicles either specifically military, or converted for military use. VICTORY RORO was taken to Valetta outer anchorage Malta, arriving there on Jul 20. She left anchorage early in the morning Jul 21, and as of 0545 UTC Jul 21, was sailing into Strait of Sicily, destination unknown, probably one of the EU ports in Med region. VICTORY RORO was on the Alert list of IRINI, as probable arms trader, since at least March 2022, being under close surveillance.
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