Research is continuing to expand on the potential of fuel cells to meet the power challenges for the next generation of ocean shipping. In the latest development, German battery technology company Freudenberg e-Power Systems received type approval from classification society RINA for the first methanol-powered fuel cell system, an application which the company believes could be the solution for large vessels, such as cruise ships and containerships, that sail long distances. The new fuel cells build on work with hydrogen fuel cells that are currently being applied for limited applications on cruise ships as well as others such as offshore support vessels.

Freudenberg developed an innovative approach to using methanol that combines highly efficient fuel reforming technology with a long-life PEM fuel cell in a modular, scalable system unit. It generates hydrogen via steam reforming, which then reacts with oxygen from the air in the fuel cell to produce the electrical energy needed for both propulsion and the ship’s electrical system. The heat required for the reformer can be obtained directly from the waste heat of the fuel cells. The fuel cell stack, reformer, and control electronics as well as all components for media supply are located in a prefabricated, modular unit.

The company points out that hydrogen is not practical for cruise ships, tankers, or containerships, that require route flexibility and often operate voyages of more than 5,000 nautical miles. While fuel cells have advantages due to their high efficiency and low maintenance requirements, Freudenberg says that due to its low volumetric energy density hydrogen as a direct energy storage medium is not practical because of the volume and the huge hydrogen tanks in a cryogenic or highly compressed state that would be required. Additionally, purely battery-electric solutions have high weight and space requirements.

Methanol they highlight is a simple alcohol that is liquid under normal ambient conditions and has around three times the volumetric energy density of liquefied hydrogen. The safety of their approach Freudenberg says is demonstrated in RINA’s Type Approval while using the chemical process they believe creates an economic alternative for ocean shipping.

“Achieving Type Approval represents an important milestone for the maritime industry,” said Dr. Manfred Stefener, Managing Director of Freudenberg Fuel Cell e-Power Systems. “This lays the foundations for fuel cell systems to be used on a megawatt-scale on cruise ships and the international ocean fleet. The marine energy systems of the future will be safe and highly efficient thanks to fuel cell technology.”

Freudenberg is currently working with a project consortium focusing on passenger shipping that includes Carnival Maritime (AIDA Cruises), Meyer Werft, as well as Lürssen Werft, besecke, DLR, EPEA, and the classification society DNV GL.

Meyer Werft is currently building the Silver Nova, which will be equipped with the world’s largest fuel cell system on a cruise ship. The 54,700 gross ton ship is due to enter service in July 2023 and will be able to run its hotel operations on the fuel cell without power from the combustion engines. Meyer Werft and Freudenberg are also working together on the Pa-X-ell2 research project, in which a fuel cell system is being retrofitted on board the Carnival Corporation’s AIDAnova. The companies are also planning further cooperation, not only on newbuildings but also on existing ships. Meyer Neptun Engineering is developing retrofit solutions and will work closely with Freudenberg to advance joint development for future power solutions.
Source: https://www.maritime-executive.com/article/first-methanol-powered-fuel-cell-system-approved-by-rina

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022

 


At Gastech 2022, DNV signed a memorandum of understanding (MoU) with maritime industry technology leaders HHI, AVIKUS, and Liberian International Ship & Corporate Registry (LISCR) to collaborate on autonomous ship technology developments.

The Hyundai intelligent Navigation Assistant System (HiNAS 2.0) is an AI-based navigation solution that covers all steps for voyage from detection to situation analysis, planning, and control. The system assists in safe navigation by displaying augmented reality (AR) images of detected ships and navigation information. Furthermore, it controls heading and speed for collision avoidance and route tracking. Developed by AVIKUS, a subsidiary of Hyundai Heavy Industries (HHI), the system creates and controls optimal routes for collision avoidance in the ocean, aiming to reduce crew fatigue and increase fuel efficiency.

The multilateral MoU includes a joint study to deploy autonomous navigation systems on-board ships to increase technology uptake by the industry and flag states. During the project, AVIKUS, HHI, and LISCR will actively contribute to developing autonomous maritime solutions that comply with DNV rules on autonomous operations, where AVIKUS aims to obtain an Approval in Principle (AiP) from DNV as well as the Liberian Flag Administration.

“Through this co-operation, we believe that we will gain momentum to move forward to the next stage of autonomous ship technology. We will try to maintain the leading position in this technology and to increase competitiveness in the future ship market,” said Won Ho Joo, CTO of HHI.

“This joint development is meaningful in that it includes shipyards, autonomous solution companies, classification, and flag states to commercialise autonomous navigation solutions. Based on the results of this project, we will successfully commercialise HiNAS 2.0 and contribute to the improvement of navigation safety and fuel savings,” said Dohyeong Lim, CEO of AVIKUS.

“As a result of the 4th Industrial Revolution, the fast-paced technology development will pave the way for autonomous shipping. This ground-breaking MoU with collaboration between forward-thinking and safety-focused stakeholders will set an example of how artificial intelligence (AI) can support and enhance the safety of navigation and reduce greenhouse gas (GHG) emissions,” said Thomas Klenum, Executive Vice President, Innovation, and Regulatory Affairs at LISCR.

“Rightly applied, a higher degree of digitalisation can contribute to safety and efficiency enhancements in shipping. Therefore, we are pleased to collaborate with industry technology leaders and help to advance the development of autonomous ships,” said Vidar Dolonen, Regional Manager DNV Maritime Korea & Japan.

Source: https://www.lngindustry.com/liquid-natural-gas/12092022/dnv-signs-mou-with-hhi-avikus-and-liscr/

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022


Aurelia Green Ship Concept Design has unveiled a new design with 100% hydrogen propulsion, which challenges the future of the green design business. The Certificate of Approval in Principle has been issued by RINA based on the newly published RINA Rules for Hydrogen Fuelled Ships and the RINA Guide for the Approval in Principle of Novel Technologies.

The new design concept is the ACD01 1000, a RORO vessel for transporting ro-ro cargo, with electric propulsion using highly compressed H2 as fuel. Beyond the green design, the difference is marked by the ship’s hydrogen-based engine system, which can be applied to other ship designs.

The fuel used to operate the vessel is 100% compressed hydrogen which generates no environmentally harmful emissions with a design which can be considered as zero emission not only in port, but also during navigation. The hybrid propulsion is based on battery and fuel cell power modules and it is not supported by internal combustion engines supplied by petroleum-based conventional fuels. The batteries are used as an energy storage source to supply power for the hotel load too.

Ton Bos, partner, and co-founder of Aurelia commented: “The world of zero emissions is a pioneering world open to new opportunities, which to some extent reminds me of the first operations in the heavy lift sector, where there was also no experience yet. In this sense, the cooperation with RINA is a strong signal that the maritime world is ready to work together for clean shipping.”

“This cooperation gives us the opportunity to tune the recently published rules for Hydrogen, to focus on new technical challenges as well to verify the technology readiness level of the components and systems used for the storage, supply and bunkering of hydrogen. The commitment of the persons involved is high and this will bring realistic achievements”, said Patrizio Di Francesco, EMEA Special Projects Manager at RINA.

Furthermore, this new design complies well beyond the limits settled by EEDI Phase 3 according to MEPC.203(62), the ballast water treatment plant is in accordance with the latest amendments of the International Ballast Water Management Convention and the hull is designed to ensure excellent hydrodynamic and maximum propeller efficiency.

“This new design for a compressed hydrogen RORO is part of a long-term cooperation between Aurelia and RINA in which we will develop liquefied hydrogen propulsion system that could be used for heavy lift, cruise and Ro-Pax vessels. This cooperation with RINA will ensure that the design of renewable ships becomes a reality and does not remain a distant dream. From Aurelia we are synergising with RINA to achieve this out of the box design concept, we think big, we think about the future, we think about safety and our planet,” said Raffaele Frontera, founding partner of Aurelia Green Concept Design.

Source: https://www.marasinews.com/environment/aurelia%E2%80%99s-100-hydrogen-powered-design-awarded-rina-approval

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022

 


HCMC – The Ministry of Finance (MOF) has proposed cutting some transportation fees by 50% in a draft circular detailing the collection rates of fees and charges in the transportation sector.

The proposed collection rates which apply to the tonnage fees and maritime safety assurance charge, charge for entering or leaving seaports for inland maritime activities, will be 80% of the current rates as provided in Circular 261/2016/TT-BTC.

Charges for the use of railway infrastructure are proposed to enjoy a 50% reduction, based on the revenue of railway business operations.

For the charge for entering or leaving seaports for inland maritime activities and waterway reporting fees, the MOF proposed a new collection rate at 50% of the current rates. The new rate shall be effective as of the date of issuance of the circular till the end of December 31, 2022.

As of January 1, 2023, the collection rates of the above fees and charges shall be applied in compliance with Circular 261/2016/TT-BTC and Circular 295/2016/TT-BTC.

In the last eight months, the MOF has proposed reducing 35 types of fees and charges. Some 37 fees and charges have been cut until the end of June 2022 and others will continue to be reduced to support residents and enterprises in easing hardships after the pandemic, totaling up to VND900 billion.

Though the continuous reduction of fees and charges has affected the State budget, the MOF will manage to roll out fiscal supporting packages from now until the end of 2022 to help socio-economic development recover under the guidance of the Government.

Source: https://english.thesaigontimes.vn/transportation-charges-continue-falling/

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022

 


Clean

For the Middle East clean market it has been muted compared to last week. TC1 saw marginal gains over the week to WS280 (a TCE of $63676 per day). A similar run on the LR2 going west, TC20, rose by just over $140k per day ending at $543,333 per day.

TC15 Skikda-Japan on the LR2s has seen a little improvement again, rising week on week to $4,366,667 by the end of the week. There was little gain in overall TCE but a marked improvement from last week. The TC5 55kt Middle East Gulf to Japan saw a jump of WS25.71 points, settling on a firm footing and ending at WS330.71 at weeks end. The MRs saw the worst of it, losing a marginal WS7.5 points, but still sitting high at WS520 with a TCE per day of $58,468.

Handymax routes in both the Mediterranean and the Baltic did opposite shifts with the Mediterranean gaining WS17.82 points to finish just at Ws180.63. This was a relatively healthy gain on the week off the back of decent activity. The Baltic route, meanwhile, saw a drop of WS18.57 finishing at WS347.14.

The MRs on the Continent had another good week with both the Transatlantic and West African routes seeing gains of around WS30 points. The TC19 closed at WS240.71 and TC2 at WS231.94

The US market has been active, despite labour day on the Monday. TC14 and TC18 US export runs rose by WS20 points for Transatlantic to WS183.33 with TCE of $11,602 per day. The run to Brazil finished at WS274.17, a gain of nearly WS35 points.

VLCC

VLCC rates eased this week with the market coming off the recent high. For the 270,000mt Middle East Gulf/China route, the rate fell 4.5 points to the WS70.5 level (a round-trip TCE of $31,700 per day). The rate for 280,000mt Middle East Gulf/USG (via Cape of Good Hope) slipped two points to between WS40-41. In the Atlantic, rates for 260,000mt West Africa/China were three points lower than a week ago at a touch above WS71 ($34,800 per day round-trip TCE). For the 270,000mt US Gulf/China market, rates dipped midweek, then started an upward trajectory on Thursday and were last assessed $37,500 higher week-on-week at $8.5875m (showing a round-trip TCE of $30,700 per day).

Suezmax

Rates for 135,000mt Black Sea/Augusta stumbled this week with tonnage building up in the Mediterranean, which translates into a drop of 10 points since last week at WS181.5 (a round-trip TCE of $73,500 per day). For the 130,000mt Nigeria/UKC trip, rates dipped a meagre 2.5-3 points to WS125 (a round-trip TCE of $33,100 per day). In the Middle East, the rate for 140,000mt Basrah/West Mediterranean continued to hover around the WS65 mark.

Aframax

The Mediterranean market rates took a tumble. The rate for 80,000mt Ceyhan/West Mediterranean fell 32.5 points to WS157 (a round-trip TCE of $30,600 per day). In Northern Europe, similarly the market fell with the rate for 80,000mt Hound Point/UK Continent dropping 25 points to WS152.5 (a daily round-trip TCE of $30,100). The rate for 100,000mt Primorsk/UK Cont route was reduced by 21.5 points to WS181.5 (a round trip TCE of $48,200 per day).

Across the Atlantic, the market has steadied for now with small improvements made. The rate for 70,000mt EC Mexico/US Gulf rose two points to between WS252.5-255 (a round-trip TCE of $53,700 per day) while for the 70,000mt Caribbean/US Gulf trip the rate remained flat at between WS237.5-240 (a round-trip TCE of $45,100). For the Transatlantic route of 70,000mt US Gulf/UK Continent, the rate climbed four points to WS210 ($36,400 per day round-tip TCE).
Source: Baltic Exchange

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022

 


U.S. Congressman Alan Lowenthal (CA-47) and Edie Chang, Deputy Executive Officer of Planning, Freight & Toxics Division at the California Air Resources Board spoke at a Community Town Hall moderated by Joe Lyou, president and CEO of the Coalition for Clean Air. The event was hosted by Pacific Environment and Long Beach Alliance for Children with Asthma August 31 evening.

Rep. Lowenthal represents the Port of Long Beach – one of the nation’s busiest cargo ports, and an area that is facing extreme pollution from fossil fuel ships.  At the Town Hall, community members shared heartbreaking stories about how ship pollution has affected their family and communities in profound and irreversible ways.

The policymakers demanded an end to ocean shipping pollution in ports and at sea.

Congressman Lowenthal said, “Since my earliest days of public service on the Long Beach City Council three decades ago, I have worked to clean up the maritime industry. This session of Congress, I introduced a bill to clean up the massive emissions generated from the maritime shipping industry.

“We must all work together towards zeroing out pollution from all ocean shipping companies that do business with the U.S. for our children, our community, and our environment.”

CARB Deputy Executive Officer Edie Chang said “We are vigorously attacking every source of harmful pollution from the transportation of freight that impacts the health of port-adjacent communities.  This includes requiring ships in California waters to use clean-burning fuel, and plugging those ships into the grid – and turning off their engines – while they’re loading and unloading.

“We recently updated our standards for harbor craft from ferries to tugboats so they use the very cleanest engines.  We are proposing regulations to require that trucks transporting containers in and out of ports shift rapidly to zero-emissions.

“And we are continuing to push for tougher federal new engine standards for locomotives to complement our proposed regulations to address sources of pollution like interstate locomotives that California must have in order clean the air especially near port-adjacent communities that are already burdened by high levels of air pollution.”

In July, Rep. Lowenthal introduced the Clean Shipping Act, aimed at zeroing out pollution from all ocean shipping companies that do business with the U.S. This legislation will protect the health of port communities, address environmental injustice and provide solutions to the climate crisis. Through the Inflation Reduction Act, Democrats secured billions of dollars that would help fund the zero-emission transition at the ports.

Antonio Santos, Federal Climate Policy Director, Pacific Environment, said: “We are on the cusp of market changes for zero-emission shipping. But we face a climate crisis, and it’s incumbent on federal, state, and local governments to put into place policies and investments to help accelerate the process.

“For far too long, port communities have suffered the burden of maritime pollution, and it’s time to right the ship. We need Congress to act and pass the Clean Shipping Act of 2022 to end dirty fossil-fueled shipping in our oceans and ports.”

In June, the City of Long Beach joined the City of Los Angeles in calling on the San Pedro Port Complex’s top maritime importers to commit to making all calls on 100% zero-emission ships by 2030.

“We are seeing strong momentum at various levels of government for zero-emission ocean shipping this decade, including recent resolutions from the City of Long Beach and Los Angeles and the Inflation Reduction Act’s $3 billion for reducing air pollution at ports,” said Dawny’all Heydari, Lead for the Ship It Zero campaign, Pacific Environment.

“Emissions from ocean cargo ships pose serious risks to public health, including death from cancer and cardiovascular disease, as well as childhood asthma. This is most especially detrimental to portside working-class Black and Brown communities, including West Long Beach, Wilmington, and San Pedro.

“We applaud the leadership of Rep. Lowenthal, the California Air Resources Board, and city councils for taking action at such a critical time for climate change, and we will continue to demand an end to ship pollution this decade.”

The Port of Long Beach also joined the Ports of Los Angeles and Shanghai and C40 Cities’ Green Ports Forum to create the world’s first transpacific green shipping corridor between ports in the United States and China.

“We’re not going to solve our climate crisis or our air pollution problems without addressing emissions from ships,” said Joe Lyou, President and CEO of Coalition for Clean Air and moderator of the event.

“This town hall gives us an opportunity to get going in the right direction. We will talk about the problems, the solutions, and the concrete next steps we can all take to reduce and eventually eliminate greenhouse gas and air pollution emissions from ships.”

Source: https://maritimefairtrade.org/u-s-policymakers-demand-end-to-ocean-shipping-pollution/

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022

 


Evidence indicates that the world’s ports are returning to pre-pandemic levels. During the first 11 months of 2021, the value of US international freight increased by more than 22% (PDF) compared with the same 11 months in 2020. More freight means more ships docking at port. And not only are more ships docking, but their dwell times are increasing as well. The average container vessel dwell time at the top 25 US container ports was estimated at 28.1 hours in 2020. In the first half of 2021, average container vessel dwell times increased to 31.5 hours.

While this increase in activity is undoubtedly welcome, more docked ships bring a new challenge. The longer a ship is docked, the more vulnerable the port is to a cyberattack.

The Cyber-Risk to Ships

The maritime industry is especially vulnerable to cyber incidents. There are multiple stakeholders involved in the operation and chartering of a ship, which often results in a lack of accountability for the IT and OT system infrastructure and the ship’s networks. The systems may rely on outdated operating systems that are no longer supported and cannot be patched or run antivirus checks.

Going forward, this threat is expected to increase. Critical ship infrastructure related to navigation, power, and cargo management has become increasingly digitized and reliant on the Internet to perform a broad range of legitimate activities. The growing use of the Industrial Internet of Things (IIoT) will increase the ships’ attack surface.

Common ship-based cyber vulnerabilities include the following:

  • Obsolete and unsupported operating systems
  • Unpatched system software
  • Outdated or missing antivirus software and protection from malware
  • Unsecured shipboard computer networks
  • Critical infrastructure continuously connected with the shore side
  • Inadequate access controls for third parties including contractors and service providers
  • Inadequately trained and/or skilled staff on cyber-risks

Troubled Waters?

Maritime cybersecurity has become a significant issue affecting ports around the world. According to the firm Naval Dome, cyberattacks on maritime transport increased by 400% in 2020. Cybersecurity risks are especially problematic to ports around the globe since docked ships regularly interact digitally with shore-based operations and service providers. This digital interaction includes the regular sending of shipping documents via email or uploading documents via online portals or other communications with marine terminals, stevedores, and port authorities.

Source: https://urgentcomm.com/2022/09/12/why-ports-are-at-risk-of-cyberattacks/

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022

 


Cargoes were transported from the Port of Abu Dhabi to the Beibu Gulf Port, and then transferred to the Qinzhou East Railway Yard Station in mid-August by a block train running through the New Western Land-sea Trade Corridor.

Arrival in Luzhou is expected in three days.

The Qinzhou-Luzhou regular sea-rail block train is an extended service provided by the Port of Qinzhou as a part of the New Western Land-Sea Trade Corridor construction efforts.

COSCO said it can save approximately 25 days for the entire transportation period compared with the traditional intermodal transport mode.

Last month, COSCO SHIPPING announced interim results for the first half of 2022, boasting revenues of $704.6 million.

The figure stands for a 24.7 per cent year-on-year (YoY) increase.

Source: https://www.porttechnology.org/news/cosco-shipping-launches-qinzhou-luzhou-intermodal-train-service/

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022

 


This September, government experts on the health of plants and crops will gather in London for the first ever International Conference on Plant Health. This high-level meeting organized by the secretariat of the UN’s International Plant Protection Convention (IPPC) and hosted by the UK government will review the state of the world’s natural and agricultural plant resources, and what can be done to protect and enhance them.

Given the combined pressures of climate change, water shortages, destructive pests and disease the conference could make for a sobering experience.

In the two days preceding the conference, and in the same London venue, a smaller, and even more specialized group consisting of international trade bodies, shipping industry representatives and national plant protection and bio-security agencies will meet to review one of the many ways that invasive and destructive pests can pass from one country to another – by ‘hitch-hiking’ a ride in, or on, any of the 240 million freight container shipments that are made by sea every year.

The International Workshop on Reducing the Introduction of Pests Through the Sea Container Pathway (19-20th September) will be a wake-up call to all parties involved in international container shipping and logistics.

Pest impacts

The threat to a nation’s food supply or its agricultural industries may not be obvious just because a few insects find their way into a forty-foot steel container. But history is littered with examples of how highly destructive pests have entered a country’s ecosystem through imported goods or packaging, and wreaked devastation on native plant species.

The Great Potato Blight, that caused famine and mass migration from Ireland in the 1840s, is thought to have been caused by the import of the pest responsible from Central America to Europe aboard the sailing ships of the day. In the 20th century, large numbers of trees in the US and Europe were lost to disease and pests thought to have been unknowingly imported as international trade spread.

Contamination is not just confined to ‘dirty’ cargoes. Last year, Australian authorities reported the detection of live pests in a consignment of baby clothes and equipment intercepted at the border. The UK government has related how a colony of invasive wasps found their way to the country having nested in the radiator grill of a brand new (and very expensive) motor car, being delivered to a showroom.

Inspections of containers arriving at borders carried out by national biosecurity agencies over the past few years suggest that the number of containers and cargoes infested by pests may be greater than feared.

National environment and agricultural ministries have been working through the IPPC to tackle this issue for several years and the London workshop has been convened to consider options for regulating the cleanliness of sea containers and setting standards for preventing their contamination by invasive pests.

Shippers will be familiar with ISPM-15, the IPPC’s existing standards for the pre-treatment and marking of timber used to block and brace cargoes in containers or used to make pallets and other packaging for transport. Could a similar International Standard for Phytosanitary Measure for the cleanliness of intermodal containers be in prospect?

Unilateral action

Several countries have already taken unilateral action to protect their native plant species against specific pests. Last year the Australian government introduced new requirements for the pre-treatment of containers imported from listed countries and carrying specific cargoes to protect against the introduction of the Khapra Beetle, a small insect that could devastate the country’s cereal grain crop were it to become established.

These rules supplemented existing measures to protect against introduction of the Brown Marmorated Stink Bug, a creature with effects as unpleasant as its name suggests! Failure to comply with these requirements will almost certainly result in a container being denied entry at the Australian border and possibly re-exported, ultimately at the shipper’s expense.

New Zealand has similar measures and there are controls too to protect against different pests that threaten other countries. Canada and the US are concerned about threats to their forests and their wheat crops; Fire Ants are a big threat to native species in Japan.

This is a live issue (in some senses literally!) and under active review by governments around the world. The possibility of new international mandatory measures on container cleanliness should command the attention of shippers everywhere.

Global developments

The Global Shippers Forum (GSF) has been monitoring and influencing these developments since 2018 when it was invited to join an IPPC Task Force set up to examine the threat to plant health posed by pest-contaminated containers and cargoes. That Task Force reported at the end of 2021 and set out a range of regulatory options for its parent body, the Commission for Phytosanitary Measures (CPM) to consider.

Crucially, it also warned that implementation of new mandatory requirements could impose significant new costs and risks to the fluidity of the international movement of containers and further disrupt world trade. GSF was clear in its opposition to new rules applying indiscriminately to every container shipment, urging that controls and resources be targeted instead on high-risk trade corridors and specific pest threats.

The work of developing any new measures will be taken forward by a CPM Focus Group, which will have the authority to make recommendations to its parent body, the Commission for Phytosanitary Measures (CPM). This month’s workshop in London will develop key ideas for the Focus Group to pursue. GSF is speaking at the event and will be ensuring shippers’ interests are represented and the scope and limits of responsibilities clearly defined.

GSF will also be represented on an industry advisory body that will be advising the new CPM Focus Group on the practicality and effectiveness of any new regulatory measures it may propose. GSF will also be making the case for a significant increase in the publicity given to this threat within the industry.

Pest contamination is an unintended consequence of international trade and awareness of its risks and consequences is relatively low. Much could be gained in a short time by raising awareness of the issue in the industry and the relatively simple ways of preventing it.

Not that there is any shortage of advice and guidance on how to pack containers safely and to keep them clear of invasive pests. The Code of Practice for Packing Cargo Transport Units (the CTU Code), a publication of three UN trade and transport organizations is the authoritative guide to container packing that all shippers and packers should be aware of, and familiar with.

The IPPC has also acknowledged the work done by the Cargo Integrity Group, a partnership of seven global trade and shipping organizations, including GSF, to develop a ‘Quick Guide’ to the provisions of the CTU Code. This included a ‘Container Packing Checklist’ of 34 questions about the manner of packing and securing of goods that should be answered affirmatively by the packer prior to dispatch of the container to a shipping line.

Simple nudges

Shippers should not wait to be confronted with new regulations before responding to this issue. Whether you are a buyer or a seller of goods, the standards of care with which they are packed into the containers that will transport them should be a core part of your quality checks and specifications to suppliers or contractors.

Is the risk of accidental contamination by pests understood? Are the recommended precautions taken during the packing and storage of the container?  Have staff been trained in what to look out for and what to do if they find evidence of infestation or contamination? Simple nudges could make a big difference.

Hitch-hiking in cargoes is not the only way invasive pests can move between countries. The containers themselves and the conditions under which they are stored in ports and by shipping lines are also crucial to preventing their contamination.

The efforts of shippers to avoid contamination during packing will be wasted if the empty container supplied to them is already infested, or dispatched containers are stored under the wrong conditions awaiting shipment. Container cleanliness is an industry-wide issue and responsibility.

Fewer than one percent of alien species that enter a country are thought to become invasive but where this has happened the effects on economies, landscapes and peoples’ lives has been traumatic and permanent.

Containers can become contaminated at any point in their journeys by sea but keeping bugs out of the boxes as they are packed is a responsibility that shippers and packers are likely to become more accountable for in the future.

Source: https://maritimefairtrade.org/pest-attacks-cleanliness-of-freight-containers-matters/

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022

 


In the mid-2000s, when shipping stocks first became popular on Wall Street, the shares were commonly bought as a play on China’s economy. China is pivotal to ocean shipping, whether it’s container ships, oil tankers, bulkers or gas carriers.

“There’s a saying that everything that moves out of China in containers has to come into China as raw materials,” noted Oeyvind Lindeman, chief commercial officer of Navigator Gas (NYSE: NVGS), on his company’s latest conference call.

Ominously, signs of China’s weakening economy are showing up across all shipping sectors at once.

The glass-half-empty view is that pullbacks in shipping demand are bellwethers of more severe economic problems to come. The glass-half-full view is that declines are temporary. A rebound of Chinese demand for iron ore, oil and gas will eventually boost commodity shipping rates.

Container shipping

Sales of containerized goods to the U.S. and Europe supported the Chinese economy throughout the pandemic era. Markets were rattled Wednesday when China’s official monthly export stats came in much lighter than expected.

China’s exports rose 7.1% year on year (y/y) in August, well below the consensus forecast for 12.8% growth. Exports had grown 18% y/y in July. China’s exports to the U.S. declined 3.8% y/y in August, compared to an 11% increase in July.

Outbound volumes are being squeezed from both sides. Demand for Chinese goods is falling at the same time COVID-19 lockdowns and weather issues are constraining Chinese manufacturing and logistics.

A chart showing U.S. bookings for goods in China by date of departure
Index: January 2019 = 100 (Chart: FreightWaves SONAR)

The government has extended lockdowns in Chengdu and announced new nationwide precautions through the end of October. Analysts do not foresee any relaxation of China’s zero-COVID policy this year.

Meanwhile, China recorded its highest temperatures and lowest rainfall in over six decades last month. Resultant power outages forced factory closures in Sichuan.

Dry bulk imports

China is the world’s largest producer of steel. Its steel production in January-July was down 6.1% y/y. Production in July fell 10% versus June.

“The decline in Chinese steel production has predominantly come from the ailing property sector and the stop-start industrial activity due to COVID-19 lockdowns,” wrote Mark Nugent, dry bulk analyst at shipbroker Braemar, in a research note on Thursday.

Brokerage EastGate Shipping said that the heatwave and power shortages forced 20 steel mills to go offline for around a week in mid-August.

Steel production drives Chinese demand for iron ore imports, largely from Australia and Brazil. These are the most important cargoes for Capesizes, larger bulkers with capacity of around 180,000 deadweight tons. Average Capesize spot rates collapsed from $38,200 in late May to just $5,600 per day on Friday, according to data from Clarksons Securities.

Brokerage BRS blamed the plunge on diversions of Australian iron ore from China to Southeast Asia, and more damaging to rates, a sharp decline in Chinese imports of long-haul Brazilian iron ore in August.

“Scorching temperatures and a relentless zero-COVID policy seriously crippled steel demand in China,” said BRS. It does not expect a full recovery of Chinese steel production until next spring, “casting doubts on a radical rebound in seaborne iron ore demand.”

Oil imports

China is by far the world’s largest importer of oil. Chinese imports are the most important driver for spot rates of larger 2-million-barrel-capacity tankers known as very large crude carriers.

According to Poten & Partners, Chinese crude imports grew rapidly from 4.1 million barrels per day (b/d) in 2009 to 10.1 million b/d in 2019. Growth slowed in 2020 when the pandemic hit and declined by 550,000 b/d in 2021.

Chinese imports sank to 8.7 million b/d in June, the lowest monthly average since July 2018. Imports were 8.8 million b/d in July and 9.5 million b/d in August. In the first eight months of this year, Chinese crude imports fell 5.2% versus the same period in 2021.

The International Energy Agency said in its latest outlook that China’s lockdowns “set back our projected demand recovery by two months.”

BRS noted that China has 920,000 b/d in new refinery capacity scheduled to come online by the end of the year. Normally, that would increase crude import demand. However, China’s refining capacity is already higher than domestic consumption and the government has not been pushing exports.

“Considering our relatively pessimistic short-term outlook for China, [with] COVID and lockdowns to remain a going concern until at least the beginning of next year, we expect little upside in Chinese runs as Beijing appears unwilling to permit its refiners to focus on export markets,” said BRS.

LPG shipping

China also is one of the world’s largest importers of liquefied petroleum gas (LNG): propane and butane.

Beyond its use for energy, China imports propane as feedstock for propane dehydrogenation (PDH) plants for the creation of propylene. The propylene is used to produce polypropylene, which is in turn used to manufacture plastic.

Tim Hansen, chief commercial officer of Dorian LPG (NYSE: LPG), referred to Chinese demand headwinds during his company’s latest call. Hansen cited “renewed impact of COVID-19 lockdowns” and worries about Chinese demand that “were a factor for market players, which resulted in more risk-averse [behavior] and reduced opportunistic trades.”

According to Lindeman of Navigator Gas, “All eyes are on China and when they are getting out of their malaise.”

LNG shipping

In the liquefied natural gas (LNG) sector, Europe is now buying a much higher share of U.S. exports than usual due to fallout from the Ukraine-Russia war.

Oystein Kalleklev, CEO of Flex LNG (NYSE: FLNG), said on his company’s latest call: “In a sense, you could say that Europe has been very lucky, because the cooldown in the Chinese economy driven by COVID lockdowns has resulted in lower demand from China.

“Chinese imports this year are down by more than 20% [or] 9 million tons. And European buyers have been able to get access to these cargoes, which would have been a lot more difficult if the Chinese economy was running at normal capacity.”

Kalleklev believes China will come back to the LNG import market, in a big way, pointing to commitments for new volumes that have yet to come onstream.

“Even though China has a reduction in LNG imports this year, they are signing for almost half of these new volumes, because the LNG story in China is in its early phases,” Kalleklev said. “This year, actually, Japan will probably import more LNG than China. And there are more than 10 times as many people in China. So, China will continue to grow once they get control of COVID and reflate their economy.”

Source: https://www.freightwaves.com/news/shippings-china-syndrome-demand-sinks-across-multiple-cargo-markets

 

 

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