Turkish officials confirmed today that the decommissioned Brazilian Navy carrier NAe São Paulo which was to have been dismantled at Aliaga has reversed course and is now heading back to Brazil. The tug towing the carrier changed its AIS signal now showing that they will arrive back in Rio de Janeiro on October 2. The two-month roundtrip is a similar fate to her sistership the French aircraft carrier Clemenceau which was also turned away by the Indian government in 2006.

Writing that the will of the Turkish people was being honored, Ednan Arslan, a member of the Turkish parliament confirmed the reports that the carrier was returning to Brazil. He Tweeted an image of the AIS ending two weeks of speculation and initially a standoff between Brazil and Turkey.

Like her sistership, the issue for the NAe São Paulo became the question of the presence of toxic materials aboard the carrier and if a proper inspection had been done before the sale to the breakers. Last year, Brazil auctioned the carrier, which had been decommissioned in 2018, with reports that only one of the eight bids was found to meet the conditions and have the necessary credentials. The carrier departed Rio on August 4, 2022, under tow.

Shortly after she departed environmentalists began protesting citing what they believed was a fault inspection of the vessel that reported only minor amounts of toxins aboard. The watchdog organization NGO Shipbreaking reported that only 12 percent of the spaces aboard the carrier had been tested to prepare the report which estimated just 9.6 tons of asbestos-contaminated materials onboard the vessel. The Clemenceau by comparison contained at least 600 tons of asbestos. The report failed to test electrical cabling and said that there was no presence of PCBs. Finally, the NGO contended the carrier had been used by France in the 1960s with atmospheric nuclear bomb testing in the Pacific meaning that it could have radioactive contamination.

Turkey responded by calling for a second inspection of the vessel before it arrived but Brazil said the vessel had already left making it impossible. Two weeks ago, Turkey’s Environment, Urban Planning and Climate Change Minister, Murat Kurum, announced that due to Brazil’s failure to carry out a second audit process that “the Brazilian navy ship NAe Sao Paulo, which will arrive at the ship dismantling facility in Izmir Aliaga, will be sent back.”

The tug towing the carrier was waiting off northern Africa for the past two weeks with reports that the British authorities had denied a permit to transit the Strait of Gibraltar. Media reports indicated that Brazil had agreed that the vessel should return but it had continued to linger off the Moroccan coast.

Commissioned in 1962 as the Foch, the 32,800 dwt carrier (fully loaded) was a sistership to Clemenceau. France operated her for 37 years selling her while she was still in service in 2000 to Brazil where she would have a career troubled by mechanical failures. After a fire in 2012, Brazil had said she would be fully reconditioned, but by 2017 she was listed as demobilized and officially decommissioned the following year.

The Clemenceau had become the center of world attention, including protestors blocking her entry into the Suez Canal, in 2006 when she was turned around after an Indian court ruled that she had to return to France. She was finally dismantled starting in 2009 at a specialized facility in the UK that met international standards for the handling of toxic materials.

Source: https://www.maritime-executive.com/article/tow-for-toxic-aircraft-carrier-reverses-course-back-to-brazil

As 2021 developed and Covid-19 restrictions waned, the global economy’s GDP recovered from -3.1% to +5.9% year-on-year, seaborne trade from -3.5% to +4% year-on-year, whilst the shipping fleet’s growth was limited to a 2.9% increase.

Further, Athens-based Petrofin Research in its annual review of Global Ship Finance reports the Petrofin Index for Global Ship Finance which commenced at 100 in 2008 is up by one point, from 62 in 2021 to 63, showing a rise for the first time in 11 years.

At the same time, the lending by the top 40 banks’ backing shipping in 2021 was higher at $290.12bn up from $286.9bn in 2020. This 1.12% growth year-on-year may appear small but it does represent the first rise since 2011.

Petrofin Research says the turnaround was assisted by continuing central banks’ monetary easing, low interest rates and a resurgence of demand for goods and commodities leading to increased congestion and fleet inefficiency.

As a result of these developments, charter rates across most sectors (except for tankers) shot up, by 50% for LNGs, up to 185% for dry bulk and multi-fold for containers according to Clarkson’s statistics. Vessel values followed suit, whilst scrapping decelerated. All in all, a remarkable turnaround, says Ted Petropoulos, head of Petrofin Research.

“Banks, under these favourable conditions and prospects, faced increased demand for loans, as well as competition from other non-banking lenders,” says Petroloulos.

Within the top 40, twenty-one banks are based in Europe, 16 are Asian/Australia based, and three North American based.

Asian and Australian banks (APAC) show the only growth, from $100.85bn to $114.75bn APAC increased their share of the global portfolios from 35% to 39.5%. European banks’ share declined further by $9.78bn 5.8% year-on-year.

Within Europe, the big decline continues by German banks although the trend has slowed. Greek banks showed a year-on-year growth of 14.2 %, whilst Scandinavian banks continued their overall decline de-emphasising lending in favour of use of their services to shipping.

Relative newcomers / small banks such as Bank of Cyprus, Hellenic Bank of Cyprus, Norway’s Pareto, the US’ M&M bank, grew during 2021 and provided plurality to the available sources of bank finance.

Petrofin Research, said it can provide “a cautious, indicative figure for global ship finance, including all forms of lending, leasing and alternative providers, of approx. $500bn”.

“The total global bank lending of all banks, including local banks, amounts to approx. $340bn, or some two-thirds of the global ship finance total,” said Petrofin.

It warns however, there is increasing evidence that due to the Russian invasion of Ukraine, together with the high energy prices, geographical sanctions, higher interest rates, slowdown in global growth and concerns over an incoming recession, bank lending in 2022 has been disrupted as caution prevails amongst banks.

Further, the Chinese selective lockdowns and economic slowdown has added to the concerns and is having a temporary impact on Chinese leasing as well.

Source: https://www.seatrade-maritime.com/finance-insurance/ship-finance-returns-growth-first-time-11-years

Saudi Maritime Congress will reinforce industry leaders’ commitment to achieving climate neutrality and discuss its impact on global supply chains, with the aim of creating a sustainable and safe environment in the maritime sector.

Scheduled to take place in Dammam on September 28-29, 2022, industry leaders will come together to discuss the key challenges and opportunities.

As the leading maritime and logistics event in Saudi Arabia, the conference will witness a number of discussion sessions that will bring together decision-makers from private companies and government bodies from around the world. The aim is to focus on accelerating the transition to clean energy and adopting best practices to reduce carbon emissions.

Accordingly, the conference will highlight the adoption of effective policies and constructive strategies that will promote the transition to clean fuels such as hydrogen as an alternative to carbon intensive non-renewable energy sources. These discussions come at a time when the global community is looking to achieve climate neutrality in the marine sector and solve problems related to greenhouse gases.

Eng. Abdulaziz Sabri, President of Bahri Ship Management said: “As one of the world’s largest VLCC owners and operators, Bahri’s participation in the Saudi Maritime Congress, which will bring together the global maritime community, is an ideal opportunity to explore and identify the key drivers of carbon neutralisation for the sector and ensure that we are on the right track. We are also keen to participate in the discussions about the energy alternatives that would be available in shipping, and to learn about the latest developments regarding the use of innovative technologies.”

The maritime sector is a major tributary of Saudi Arabia’s economy and an essential element in supporting the Kingdom’s Vision 2030. Moreover, the country’s significant fleet is instrumental for the industry.

Chris Morley, Group Director of Maritime Events at Informa Markets, said: “The Saudi Maritime Congress provides a comprehensive and integrated platform to amplify the effectiveness of thought leadership debate. Contributors, stakeholders, and participants at the event all play a vital role in the creation and provision of innovative solutions to everything from future fuels to the adoption of technology throughout the maritime industry. It’s important to the whole team at Seatrade Maritime that we support our communities and customers and provide a catalytic experience that contributes to the objectives of the maritime industry.”

He added: “The Kingdom is among the twenty largest economies in the world and has the largest purchasing consumer base in the region. Therefore, the vital role that the maritime sector plays in the Kingdom’s plan for economic diversification cannot be downplayed. We believe this event plays an important role in supporting sector growth and stimulating action toward the goals of Vision 2030.”

Saudi Arabia has increased the tonnage of its marine fleet, which includes 368 tankers and ships, reaching 13.5 million tons.

Source: https://www.marasinews.com/