Royal IHC has completed a conversion that has transformed a 2014-built pipelay vessel into a J-lay vessel that owner McDermott International says will “redefine what’s possible in deepwater construction.”Now called the Amazon, the then Ceona Amazon, delivered by shipbuilder Lloyd Werft, Bremerhaven in 2014, was acquired by McDermott in early 2017 after it had been in layup since former owner Ceona went into administration in September 2015.

In the conversion project, Royal IHC has converted Amazon into a state-of-the-art J-lay vessel. The patented lay system, with dynamic top tension capacity of 1.500 tonnes, can handle a variety of pipes including normal flowlines, export lines and pipe-in-pipe configurations, ranging in size from 4.5 inch to 25 inches in diameter and inline assemblies. Other modifications included highly automated onboard operation processes for optimized safety performance and production efficiency. This also resulted in a reduced number of personnel requirements for process supervision.

As McDermott International’s only J-lay vessel with a holding capacity of 10.000 tonnes of pipe on board, and ability to produce hex joints from single or double joints in the multi-joint facility, the Amazon gives McDermott a unique key asset for ultra-deepwater projects.

“Completing the Amazon conversion has been challenging at times,” said Jan-Pieter Klaver, CEO Royal IHC. “However, we remain incredibly proud of her and the teams on both sides whose collaboration made this possible. This project compelled us to design a one of a kind system, with specifications that can redefine the pipelaying industry and the worlds understanding of what is possible in ultra-deepwater construction. Redelivering the Amazon is the outcome of dedication, knowledge and passion of all those involved.’’

Source: https://www.marinelog.com/offshore/royal-ihc-delivers-one-of-a-kind-converted-j-lay-vessel-to-mcdermott-international/


In another positive sign from the cruise sector, Fincantieri reports that Viking Ocean Cruises has signed shipbuilding contracts for the third and fourth of six cruise ships it optioned in March 2018. The companies also have signed the contracts for the fifth and sixth units, but subject to access to financing, as is industry practice.

The Italian shipbuilding giant says the total value of the agreements is about $1.7 billion, and that these latest orders “confirm the recovery of the cruise sector, which is expected to return to pre-pandemic levels by 2023.”

The first two deliveries are scheduled for 2026 and 2027 with two more following in 2028.

HYDROGEN FUEL CELLS

For this batch of six vessels, Fincantieri and Viking have developed a project that is based on the successful features of the previous ships, but upgraded and revisited with the latest technologies— including hydrogen fuel cells.

As of today, the collaboration between Fincantieri and Viking Ocean has reached a total of 18 vessels, including two purpose-built expedition vessels from Fincantieri subsidiary Vard.

Source: https://www.marinelog.com/passenger/cruiseships/fincantieri-in-four-ship-1-7-billion-agreement-with-viking-ocean/

 

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

 


Following a contraction in output of newbuild 20ft shipping containers in 2021, ordering has recovered strongly this year, and contrary to popular opinion Drewry expects its share of the global container equipment fleet to remain above 25% for the foreseeable future.

Although the standard 20ft dry freight container has seen its share of the global equipment pool decline over the past decade, Drewry believes its role in the fleet is secure. Indeed, this year has seen production of the unit increase significantly with orders, particularly from ocean carriers robust. This will come as some relief to many beneficial cargo owners (BCOs) concerned at the limited availability of 20ft boxes over the past two years, which has led some to wonder if the equipment type might be on the way out.

In the first eight months of the year manufacturers based in China, which account for over 96% of global output, produced close to half a million teu, which was up almost 64% YoY and 35% on the corresponding period in 2020. Drewry expects output for the full year to total at least 900,000 teu, up from just below 560,000 teu in 2021.

In terms of buyers, transport operators, including ocean carriers, and traders were responsible for an estimated 72% of deliveries made in the January-August period of 2022 with the units needed for both replacement and expansion purposes

Source: Drewry

Meanwhile, the demand for new 20ft containers for non-trading purposes, most notably in the static storage sector, remains robust as existing companies expand their operations and new players are attracted into the business.
While the sharp increase in the production of 20ft containers this year is partly related to some under-ordering last year as lessors and ocean carriers focused their purchasing activities on 40ft high cube containers where there was a global shortage, the demand factors for 20ft containers remain sound.
There are several industries where due to the nature of cargo moved – heavy and dense – 20ft containers are more appropriate to use and where companies have built their supply chains around this type of equipment. Ocean carriers, in particular, need to ensure that they have the inventory to satisfy these accounts, many of which are long-time customers of theirs.

Arguably, for lessors, the 20ft box is less marketable and, potentially, faces longer off-hire periods. Hence their purchasing of this size of box is expected to decline.

Meanwhile, and as already mentioned, the demand for 20ft containers in the non-maritime trading arena is strong and expanding and this will encourage traders to order more of these units.

Consequently, Drewry expects the 20ft container’s share of the fleet to remain stable over the next five years with the unit accounting for at least 26% of standard dry containers in service. And given the upside potential there is the prospect that this share will increase rather than decrease over the forecast period.

Container Census & Leasing and Equipment Forecaster
Drewry’s Container Equipment Forecaster provides quarterly market updates as well as our latest forecasts:
• Detailed assessment of the global container fleet, including fleet structure and 5-year forecasts
• Extensive profiling across all main equipment types including dry, refrigerated, regional and tank container fleets
• Comprehensive ownership analysis – current structure and forecasts
• Assessments and 5-year forecasts of newbuild and secondhand pricing, leasing rates and investment cash returns
• Estimates and forecasts of smart device installation rates
Source: Drewry

 

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

 


The new $8m-RTGs will help speed up container loading and unloading times at the terminal. They also reaffirm the company’s commitment to continue strengthening and expanding the port for the benefit of the supply chain.

“With the integration of these RTGs, in addition to the four that we received in the beginning of 2022, we will double our capacity to move cargo–especially by rail–thus adapting to the requirements of the market and our clients,” said José Antonio Contreras, CMSA Chief Executive Officer.

“The arrival of this equipment, together with the investment of $230m in infrastructure and equipment that we are going to start in a few weeks, as well as the construction by ASIPONA of the new exclusive access road to the northern zone of the port and the arrival of the new x-ray equipment for Customs, will consolidate and make the operation of our terminal in Manzanillo more efficient,” he added.

Streamlining CMSA’s operations at the Port of Manzanillo is vital to ensure to the seamless transit of cargo from all over Mexico, especially considering the port’s status as the preferred gateway to the Pacific coast for shippers from Asia.

ICTSI registered revenue of $1.06bn, an increase of 20% from the $882.6m reported for the first six months of 2021.

Source: https://www.seatrade-maritime.com/ports/ictsi-adds-new-equipment-mexico-terminal

 

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

 


During January and August this year, Shanghai port posted a container volume of 31m teu, slightly increased 0.2% year-on-year, accounting for 64.6% of the whole year’s target.

Earlier this month, Shanghai port launched operation of its Northeast Asia Empty Container Transportation Center. Having a handling capacity of 3m teu container per year, the center is expected to further strengthen Shanghai port’s leading position in global container shipping market.

Source: https://www.seatrade-maritime.com/ports/shanghai-port-breaks-daily-container-volume-record

 

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

 


Highlights
– The Baltic Exchange Dry Index (BDI) peaked in late May and has since fallen sharply as lower Chinese demand and adverse global economic developments have impacted expectations.
– The IMF has lowered its global economic growth forecast to 3.2% for 2022 and 2.9% for 2023.
– Year-to-date bulk volumes have increased 1.9% y/y with minor bulks continuing to lead the way.
– We estimate demand growth in the 1-2% range for 2022 and 2-3% for 2023.
– Contracting has remained low, and the order book has reduced to 7.5% of the fleet size.
– The fleet is expected to grow by 2.7% in 2022 and by 2.2% in 2023, but capacity supply is expected to grow by only 1% rest-of-year and by 0-1% in 2023.
– We expect an improvement in the supply/demand balance during the rest of 2022 as the EU’s ban on Russian coal will add tonne miles, and Chinese demand could also rebound. We forecast further improvement in 2023.
– Risks of a global recession have increased, and lower economic growth could harm bulk demand.

Recent developments
The Baltic Exchange Dry Index (BDI) peaked at 3,369 in late May just as demand expectations slowed due to the impact of extended Chinese COVID lockdowns and increasing headwinds for the global economy. Congestion also began to ease and the BDI embarked on a downward trajectory. In late August, it hit a 2022 low of 865, matching levels last seen in June 2020. Year-to-date, the BDI has on average been 19.5% lower than during the same period last year.

Year-to-date, deadweight tonne miles are 0.6% ahead of last year despite several concerns about key markets. The Russian invasion of Ukraine closed Ukrainian ports, while ever stricter sanctions on Russia by the EU and USA have limited export markets for Russian cargo. Lockdowns linked to the zero-COVID policy have reduced economic activity in China, and an increase in domestic mining has also reduced China’s coal imports.
Global coal volumes have year-to-date still increased by 3.3% y/y; figures for July-August were up 1.7% y/y. This has been driven by increased demand in India and renewed demand for coal in the EU in order to fill the gap left by lower natural gas imports from Russia. The two other main commodities, iron ore and grain, have year-to-date fallen by 0.5% y/y and 3.0% y/y respectively. Slowing demand in China has impacted iron ore volumes, whereas the absence of Ukrainian grain has been particularly pronounced recently, and global July-August grain volumes were 8.3% lower than last year. The agreement to facilitate the reopening of Ukrainian grain exports has not yet had a significant impact.

Time charter rates have unsurprisingly followed the development in the BDI closely, and in early September these were 50.3% lower than at the same time last year. Second-hand prices for five-year-old ships have so far remained remarkably stable despite the significant reductions in both freight and time charter rates and are currently on average 15.8% higher than last year. Five-year-old ships are on average priced at 86% of newbuilding prices, whereas Capesizes are priced at only 71%. Newbuilding prices have so far continued to increase throughout 2022, despite lower steel prices, but appear to have reached a plateau for now.

Demand drivers
The International Monetary Fund (IMF) has again lowered its forecast for the global economy. Central banks have raised interest rates and tightened their monetary policies to try to contain further increases in inflation, and the IMF estimates that global GDP in Q2 2022 was lower than in Q1 2022. The baseline growth forecast from July estimates global economic growth of 3.2% in 2022, down from 6.1% in 2021, and that growth in 2023 will stand at 2.9%. Further downside risks exist, and the IMF’s worst-case scenario forecasts a possible further reduction in global GDP to 2.6% and 2.0% in 2022 and 2023 respectively.

Growth forecasts have been reduced for most key economies. Of particular concern to the bulk market is that forecasts for the Chinese economy have been lowered by 1.1 pp and 0.5 pp for 2022 and 2023 respectively. With forecasts of 3.3% and 4.6% for 2022 and 2023 respectively, growth in China is expected to hit its lowest levels since 1990. The People’s Bank of China has cut interest rates, one of the few central banks in the world to so but increases in economic stimulus have otherwise been minimal. Special Purpose Bonds issued by local governments are on par with 2021, but lower than in 2020. The central government has recently also committed further funds for infrastructure development, which could increase demand for both iron ore and coking coal but may not have much impact in the short term.

In the latest forecast, India remains the fastest-growing economy despite higher-than-average reductions to forecasts compared to the April projection. Growth is now forecast at 7.4% and 6.1% for 2022 and 2023 respectively. Elsewhere in Asia, projections for Japan and ASEAN-5 countries have also been lowered.
The projections for Emerging and Developing Europe, Latin America and the Caribbean, Middle East and Central Asia, and Sub-Saharan Africa are the only ones not to have been lowered since the April forecast. Unfortunately, these areas are not key demand areas for the bulk market.

The World Steel Association estimates that global steel production in the first half of 2022 fell by 5.4% compared to the same period in 2021. The world’s biggest steel producer, China, reduced its production by 6.4% y/y in the first half of 2022, not least due to a 6.4% year-to-date fall in real estate investments. The World Steel Association’s most recent steel production forecast for 2022 and 2023, which was made in April 2022, estimated global demand growth of 0.4% and 2.2% in 2022 and 2023 respectively. It now appears more likely that 2022 will end with negative demand growth despite the recent efforts by the central bank and central government in China to help demand rebound in the second half of the year.

The International Energy Agency (IEA) has slightly lowered its estimate for global coal demand in 2022. Demand in the first half is estimated to have increased by 0.5% y/y and full year demand is estimated to increase by 0.8%. For 2023, a 0.3% increase is estimated. India and the EU are the drivers of growth in 2022, and demand is estimated to grow by 7.3% and 6.5% respectively. In India, increased electrification, high demand for electricity during a heat wave, and high gas prices are driving demand, whereas, as previously mentioned, EU demand is being driven by a shift back towards coal and away from gas to reduce dependence on Russia. Demand in China fell by 3.0% y/y in the first half of the year due to lower economic activity and high hydropower generation. Assuming economic activity rebounds in the second half of the year, IEA estimates a full year reduction in demand of 0.5% y/y. Seaborne demand to China is, however, still likely to reduce as domestic coal output rose by 11.5% y/y during the first seven months of 2022. The EU’s ban on Russian coal will further benefit tonne miles demand during the rest of year as imports from Russia are halted and are likely to be replaced by more coal from USA, Australia, Colombia, and South Africa. We estimate that this could increase tonne miles demand for coal by 5% and 1% for the overall market.

Despite an expected 41.5% reduction in Ukrainian wheat exports in the 2022/23 marketing year, the US Department of Agriculture (USDA) still expects a 1.8% increase in global shipments over the 2021/22 marketing year. Strong harvests in Canada and Russia are expected to replace the loss of Ukrainian exports. Ukrainian maize exports cannot be entirely replaced by other countries even if Brazilian exports are forecast to increase by 36.8% in the 2022/23 marketing year. Soybean exports are forecast to rebound from the 2021/22 marketing year and increase by 10.3% in the 2022/23 marketing year, with Brazil again delivering most of the growth. Combined, volumes for the top three grains are expected to increase by 2.6% in the 2022/23 marketing year. Very high fertiliser prices meantime remain a risk to harvests as farmers try to limit fertiliser use. In contrast, grain prices have recently been falling, thus reducing the risk of demand destruction.
Year-to-date, fertiliser volumes have fallen 2.7% y/y, confirming the impact of the higher prices. Along with ores, it has been the only minor bulk commodity to show negative growth year-to-date. Ores have been particularly impacted by lower nickel ore shipments to China during the extensive COVID lockdowns. The nickel industry, however, expects continued growth in demand for both stainless steel and batteries for electric vehicles. In total, minor bulks have continued to grow much faster than the top three commodities. Year-to-date combined volumes of iron ore, coal, and grains have grown by 0.6% y/y, whereas minor bulks are up 4.8% y/y for a total 1.9% y/y growth in bulk volumes.
Barring any significant adverse rest-of-year impacts from a slowing global economy, we estimate that that volume growth in 2022 will end in the 1-2% range and estimate growth of 2-3% in 2023.

Supply
Contracting has remained very low during the first seven months of 2022 and has hit its lowest level since 2016, and we only expect a minor increase in 2023. The order book has therefore fallen again and is now only 68.1 million DWT, equal to 7.5% of the trading fleet. Deliveries in 2022 and 2023 will therefore be muted, and combined are expected to reach their lowest two-year level since 2007-2008. We meantime expect that demolition activity will increase in 2023 as congestion eases and some owners will find it uneconomical to retrofit ships to comply with EEXI and CII standards. All in all, we forecast that fleet growth will fall from 3.6% in 2021 to 2.7% and 2.2% in 2022 and 2023 respectively.
Capacity supply is equally impacted by congestion and sailing speed. Congestion has been elevated since mid-2020 but has recently reduced quite significantly and has added to capacity supply. Conversely, average sailing speed has on average been 0.1 knots lower in 2022 than in 2021 and has reduced capacity supply. With the implementation of EEXI and CII as well as ETS in the EU, we find it unlikely that sailing speed will increase in 2023 and believe that it is more likely to drop further. We do, however, consider it likely that congestion will revert to lower levels and release more capacity.
All in all, we estimate that capacity supply will grow by 1% for the rest of 2022 and at a slower rate than fleet growth during 2023 to end in the 0-1% range.

Conclusion
Compared to our last update, the global economy is facing stronger headwinds, and slower growth in China is of particular concern. The risk of a global recession has increased as central banks combat high inflation rates through a combination of increased interest rates and a reduction in fiscal stimulus.
We have therefore lowered our volume forecast but expect tonne miles demand to increase by 2-3% in 2023, compared to capacity supply growth of 0-1%. Risks remain to the demand forecast but capacity supply could also fall if demolition activity exceeds our forecast. Overall, we expect that demand will grow faster than capacity supply and improve market conditions.
For the rest of 2022, we expect an improvement in market conditions compared to present as the EU ban of Russian coal will add tonne miles and Chinese demand could rebound. Freight and time charter rates could therefore improve compared to recent levels, although we consider it unlikely that the market will reach the highs achieved earlier in the year.
Source: BIMCO, By Neils Rasmussen, Chief Shipping Analyst, BIMCO

 

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

 


The tanker market could be headed for additional support down the line. In its latest weekly report, shipbroker Intermodal said that “while the energy markets are historically stretched, Russian flows of crude oil are closely monitored as the oil trade is ultimately realigned. More specifically, Russian oil exports fell by 115k bpd in July to 7.4m bpd, from about 8m bpd at the start of the year, according to IEA’s August report. However, for the period Jan-Jul22 oil exports averaged 7.75m bpd, edging upwards compared to 7.5m bpd achieved in 2021 as a whole”.

According to Ms. Chara Georgousi, Researcn Analyst with Intermodal, “crude and product flows to the US, UK, EU, Japan and Korea have slumped by 2.2 m bpd since Russia’s invasion of Ukraine. However, two-thirds of them have been redirected mainly to China and India at discounted rates. Export revenues fell to $19 bn in July, -9.5% m-o-m, mainly on the back of reduced volumes and lower oil prices. Total flows of Russia’s crude to Asia fell by 500,000 bpd during the past three months, with flows slumping at the lowest since March. During the last week of August, according to Bloomberg, total flows slumped at 3.04m bpd, -16% w-o-w. Crude shipments to China are now about 50% of the total flows, -10% since April. Key driving factor is mainly China’s constrained oil demand due to consecutive lockdowns which prompted refineries to minimize their crude input, as well as simultaneous maintenance of multiple refineries. Another factor could be the narrowing of the price differential between Urals crude and Brent crude, which from about $30/bbl in April-May narrowed to approx. $19/bbl in July-August, according to Russia’s Ministry of Finance”.

Ms. Georgousi added that “European imports of Russian crude surged during August’s last week to the highest level since April, mainly driven by the upcoming full effect of sanctions in December. According to Bloomberg, total flows of Urals crude rose to 3.41m bpd from a previous 3.24m bpd, mainly on the back of EU imports (Mediterranean, Northern Europe, and Black Sea region). Imports of Mediterranean countries soared to the highest level to reach 140k bpd, imports of Northern countries accounted for 398k bpd, while import volumes from the Black Sea region (Romania and Bulgaria) marked a 7-week high”.

Intermodal’s analyst added that “ESPO, on the other hand, has marked a 4-month high during August. ESPO shipments from the country’s Pacific Coast terminals rose to the highest level since April. More specifically, according to Bloomberg, 37 tankers departed from Kozmino in August carrying 875k bpd of ESPO. Meanwhile, combined exports from Kozmino, De Kastri, and Prigorodnoye surged to 942k bpd, +6.5% m-o-m. India edged as a key ESPO importer, displacing barrels from Saudi Arabia and Abu Dhabi and thus, realigning global crude flows. During August standalone, 6 vessels carrying ESPO headed to the country’s refineries, carrying a total volume of 142k bpd, +20.3% m-o-m”.

Source: Intermodal

Ms. Georgousi concluded that “with shifting trading patterns in the crude oil market, Russia must primarily rely on China and India to source its crude. China’s demand for Russian barrels, albeit lower in July according to GAC data, could recover as we head towards the winter season which will increase demand for oil amid elevated gas prices. Oil demand could be supported in September ahead of the peak of fishing and harvest activities, as well as the Autumn festival, all of which combined add tailwinds to gasoil consumption. In addition, some demand growth is expected during October, ahead of the 20th National Congress of the Chinese Communist party which will be held in Beijing. The recent outbreak of Covid cases in many provinces, though, has forced cities to adopt virus containment measures and added headwinds to the winter demand growth forecast. Nevertheless, market sentiment remains bullish, overall, regarding the 2H2022 Chinese oil demand. Conclusively, some smaller players have emerged which could potentially absorb more Russian crude in the mid-term, such as Sri Lanka and Egypt which snapped some Russian barrels during July and August, according to Bloomberg. Given that the trade between Russia and alternative importing countries is further developed after the sanctions’ full effect, it could add some support to the tonne miles”, Intermodal’s analyst concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide

 

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

 


The global maritime safety system market is expected to grow from $17.66 billion in 2021 to $18.40 billion in 2022 at a compound annual growth rate (CAGR) of 4.19%. The marine safety system market is expected to grow to $24.62 billion in 2026 at a compound annual growth rate (CAGR) of 7.56%.

The maritime safety system market consists of the sales of maritime safety system solutions and related services by entities (organizations, sole traders, and partnerships) that refers to planned solution and services implemented by shipping companies to ensure ship and marine environment safety. MSS aims to alert the system about the position and safety-related concerns about the ships in the vicinity, search and rescue coordination, and protection from terrorism, piracy, robbery, illegal trafficking activities, and others.

The main types of systems include ship security reporting system, automatic identification system (AIS), global maritime distress safety system (GMDSS), long range tracking and identification (LRIT) system, vessel monitoring and management system, other systems (automated manifest system (AMS), and automated mutual assistance vessel rescue system (AMVER).Security reporting system refers to electric systems used to prevent or abate potential risks in ships by taking less hazardous processes programs to reduce injuries and property loss.

The maritime safety system are used for loss prevention and detection, security management, counter piracy, coastal monitoring, safety of ship, pollution prevention and response (PPR) management. They used by government institutions, oil & gas, marine & construction, shipping & transportation, cargos & containers, other end-users.

Asia-Pacific was the largest region in the maritime safety system market in 2021 and is also expected to be the fastest-growing region in the forecast period. The regions covered in the maritime safety sytem market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The maritime safety system market research report is one of a series of new reports that provides maritime safety system market statistics, including maritime safety system industry global market size, regional shares, competitors with a maritime safety system market share, detailed maritime safety system market segments, market trends and opportunities, and any further data you may need to thrive in the maritime safety system industry. This maritime safety system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The growing maritime trade and transportation are expected to propel the maritime safety system market.The increased well-being of consumers leads to increased production.

The lower emissions on long voyages, maritime trade, and transportation assist producers in remaining competitive.The volume of products moved on a single trip is greater, making sea transport more cost-effective and environmentally friendly than other methods of shipping goods over long distances.

For instance, In April 2019, a report published by the Organisation for Economic Co-operation and Development projected a significant increase in a variety of ocean economic activities by 2030. According to estimates, the worldwide value generated by ocean-based industries could double from $1.5 trillion in 2010 to $ 3 trillion in 2030. Therefore, the rising maritime trade and transportation will drive the maritime safety system.

Technology developments such as AI, IoT are a key trend gaining popularity in the maritime safety system market.For a long time, the key technology of marine safety and systems has remained unchanged.

However, the rising number of accidents, terrorism, and other components is now subject to many changes created within maritime safety and security by involving AI, IoT, Big Data, digital route management, innovative defense technology, integrated control systems, and others. For instance, In December 2020, Iridium Communications, satellite communications company, has introduced its GMDSS service that is embedded with a strong network of 66 cross-linked Low Earth Orbit (LEO) satellites which provide low latency, high-quality, and real-time voice and data connections across the entire system, including seas and polar regions.

In April 2021, Leonardo, an Italian aerospace, defense, and security company, acquired a 30% stake in GEM Electronica for an undisclosed amount.Through this acquisition, Leonardo will strengthen its market position in the naval sector, particularly in the sector of short and mid sensors for navigation, maritime, coastal, and airport surveillance.

It will broaden and diversify Leonardo’s product offering and improve engineering, manufacturing, and marketing. GEM Electronica is an Italian company producing small and medium-sized 3D radars, electro-optical sensors, and inertial systems for the maritime, air, and land sectors.

The countries covered in the maritime safety system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

Source: https://www.globenewswire.com/news-release/2022/09/09/2513274/0/en/Maritime-Safety-System-Global-Market-Report-2022.html

 

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


Rarely does a vessel come along with the potential to radically change the way an industry operates, but one such vessel is set to hit the water in 2023.

This new vessel, a towboat named Hydrogen One, is being developed by Louisiana-based Maritime Partners, the largest lessor of marine equipment in the U.S. It will be the first of its kind globally to run on emissions-reducing methanol-to-hydrogen generator technology—no diesel propulsion on board—as the maritime industry continues to plot its course toward cleaner vessel operations.

The groundbreaking towboat was designed by Seattle-based Elliott Bay Design Group (EBDG) and will be built at Intracoastal Iron Works in Bourg, La. Other key partners in the project include technology providers e1 Marine, based in Bend, Ore., and multinational ABB. Once completed, the vessel will be operated by Jeffersonville, Ind.-headquartered marine transportation company American Commercial Barge Line (ACBL), likely to move petroleum products in and around Louisiana and Texas.

Seeking a solution
In recent years, marine transportation companies have been exploring a range of greener power and propulsion solutions to help reduce their vessel emissions as stricter environmental regulations take hold and environmental, social and governance (ESG) priorities increasingly drive corporate decision-making and capital allocation.

“The global shipping industry has been driving to decarbonize itself,” Maritime Partners’ CEO, Bick Brooks, said at the 2021 International WorkBoat Show in New Orleans in December. “It’s a huge challenge given the energy requirements for vessels regardless of application. But the winds of change are blowing, and we want to be at the forefront of that change.”

It will take a growing mix of technologies to decarbonize shipping as various vessel applications differ in power and propulsion needs. There’s no one-size-fits-all. Batteries, for example, have been gaining attention for vessels such as ferries and tugboats that operate on fixed, repeated routes where daily charging is possible, but are not currently viewed as a standalone answer for towboats due to these vessels’ size, space and weight limitations, as well as the nature of barging routes on the U.S. inland river system. And limited onboard storage capacity and a lack of necessary dockside bunkering infrastructure essentially strike pressurized or cryogenically stored gases from the list of viable towboat fuels.

“We took a blank sheet of paper and laid out all of the available alternatives: liquefied natural gas (LNG), methanol, ammonia, compressed hydrogen, biofuels; and what we came up with was methanol as the fuel of choice for our application,” Brooks said. “It is widely available throughout the river system and global port infrastructure, it can be distributed in existing fossil fuel distribution infrastructure, and it’s safe.”

Jack Nash, an analyst with Maritime Partners, said at the WorkBoat Show that the company looked at three primary criteria when evaluating the viability of future fuel options: strong emissions benefits, cost competitiveness and strong performance. “If a fuel doesn’t tick all of those boxes, then we struggle to see how it will be adopted,” he said. “We were very impressed with hydrogen’s emissions benefits, but the challenges with transporting and storing hydrogen increased the cost so significantly that we didn’t see compressed hydrogen as a solution moving forward.”

And that’s where e1 Marine came into play with a solution that serves as a link allowing easy-to-handle methanol—a top commodity globally, located in bunker quantities at more than 100 ports—to be converted into power-dense and clean hydrogen on board, in real time.

Mike Complita, principal in charge and VP of strategic expansion at EBDG, said the solution is a good fit for Hydrogen One based on the vessel’s operational profile. While pure hydrogen can be difficult to carry in quantity and get distance, methanol—which is readily available and routinely carried on U.S. inland waterways—is very similar to fueling conventional diesel, Complita said. “You bunker it from a truck or a terminal through a hose. It does not take any special permitting, unlike hydrogen and ammonia and some other alternative fuels,” Complita said. “Methanol, in my opinion, is probably the safest alternative fuel to transfer to the vessel beyond diesel and biodiesel.”

Hydrogen One will turn heads on the water. Its appearance can be described as somewhere between futuristic and traditional, with modern, sleeker lines paired with many of the signature elements of traditional vessels. But it’s what’s inside that will be the real difference maker. (Image: EBDG)

According to Complita, “The other benefit of methanol is that, similar to diesel, it gives you relatively unlimited range. . . So, we can build a boat that can get similar range to diesel with methanol fuel. That’s not something you can do with electricity [alone]. That’s not something you can do with liquid or gas hydrogen. Other options like ammonia are starting to come online to do that as well, but they are a lot farther out in having the technology ready for that.”

e1 Marine, a joint venture between Maritime Partners, Irish tanker owner Ardmore Shipping and Bend, Ore.-based hydrogen generation specialist ELEMENT 1 Corporation, will supply a methanol-to-hydrogen generator technology for the Hydrogen One. Basically, the system will convert methanol and water into pure hydrogen that will run through fuel cells to create electricity for the vessel’s motors, which drive dual L-drive azimuth thrusters. e1 Marine has tapped RIX Industries to manufacture Hyrdogen One’s M18 reformers and PowerCell Sweden AB to supply the PowerCellution Marine System 200 fuel cells. The vessel will also be equipped with batteries that provide additional power when needed, both while underway and for hotel power.

Robert Schluter, managing director of e1 Marine, noted that the technology is already proven but has typically been used in smaller scale power generation applications—less than 10 kilowatts of fuel cell power. Through the years, the system has been scaled up and is now ready to support the multimegawatt power needs of marine vessels. Hydrogen One will be in the 2,000-horsepower range, but as the technology continues to evolve, towboats could become more powerful using similar methanol-to-hydrogen systems.

Earlier this year, the system received approval in principle (AIP) from classification society Lloyd’s Register following independent verification that the e1 Marine generator can support megawatt scale fuel cell power applications and meets all applicable regulations, codes and standards.


How it works
“In simplified terms, we turn methanol to hydrogen as needed,” Schluter said. “As the fuel cell, which is the engine in this case, needs hydrogen, we just operate the fuel delivery system to provide the hydrogen as it’s needed.”

“The process is robust in design with very few moving parts, requires minimal maintenance and offers outstanding longevity.”

According to Schluter, here’s how it works:

First, methanol (CH₃OH) and water (H₂O) are mixed at a roughly a two-thirds/one-thirds composition to create the feedstock, which is pumped into a heat exchanger to cool the product hydrogen, preheat the feedstock and obtain optimal thermal efficiency for the generator. Then, the pre-heated feedstock flows into the reactor “hot box”, where it is converted into a vapor before being directed into a catalytic reactor to convert the feedstock into a syngas, a mixture of hydrogen, carbon monoxide (CO) and carbon dioxide (CO₂), Schluter said.

Next, hydrogen is separated from the syngas using e1 Marine’s membrane purifier, the heart of the system. The small amount of remaining hydrogen-depleted gas from the purifier is directed back to the reactor and combusted to generate the heat for the steam reforming reaction. Exhaust from the raffinate combustion is sent to the atmosphere, and the only new emissions produced by the hydrogen generator are carbon dioxide and water vapor.

“The hydrogen goes to a small buffer tank, and then the fuel cell pulls off that buffer tank as needed,” Schluter said. “It’s a very small quantity of hydrogen. Less than half a kilogram actually exists at any one time.”


Emissions and economics
Many industries, not just marine, are looking at new technologies that will help clean up and slash emissions. But, risk is inherent to the adoption of any new technology, especially one that has yet to be proven in real-world vessel operations. First and foremost, the system must be proven safe. Beyond this, there are always questions about technical, logistical and economic feasibility. For a vessel owner and operator to sign on to try something new speaks volumes when so much is on the line.

According to ACBL’s CEO, Mike Ellis, the company’s strong relationship with Maritime Partners drew it toward wanting to operate the groundbreaking vessel. “Second, this project aligns with our strategy and ESG goals and initiatives,” he added. “We have to find more sustainable solutions to meet our customer demands. All of these reasons led to our desire to be a part of this project.”

Schluter noted that methanol is very clean in its composition. “It does have a carbon, but it’s only a single carbon. And it naturally biodegrades,” he said. And, with methanol, a vessel operator gets all the benefits of a liquid fuel, like they would with gasoline or diesel, but e1 Marine’s solution is able to safely convert it to clean hydrogen, right at the point of use, Schluter said. No nitrogen oxide (NOx), sulfur oxide (SOx) or particulate matter (PM) pollution. “People are looking to adopt clean power solutions, and the cleanest out there is hydrogen,” he added. “It’s got literally zero emissions. Heat, power and water are its three outputs. And it’s been commercialized for more than 20 years.”

(Image: EBDG)

It’s often repeated that the maritime industry—the U.S. towboat industry particularly—has a certain reputation. It’s true that barging is significantly cleaner than road, rail and air transport alternatives, but the industry is not perceived as one that is overly eager to try new things. “We all know this is an industry that is steeped in tradition. It’s very slow to change,” said Eric Livingston, COO at Maritime Partners, speaking at the WorkBoat Show. “However, what we’re hearing from our customers is that they need a decarbonization, low-emission solution on the river; it’s a must. It’s coming from both our customers and our customers’ customers. So, the demand is there.”

One of those customers is ACBL, which is seeking to lead the way in helping the inland waterways transportation industry shrink its carbon footprint. “Our industry must be diligent and innovative to keep our standing as the most efficient mode of cargo transportation for our customer base,” Ellis told Marine News. “We are excited to be a key player in developing a more sustainable reduced carbon footprint supply chain for our customers and all of our stakeholders through our partnership with Maritime Partners on this project.”

And while the environmental benefits of the methanol-to-hydrogen technology are the immediate draw, the economics have to make sense for the solution to be right for Maritime Partners as well as ACBL and its customers.

Asked how the costs to charter and operate Hydrogen One might compare to a traditional towboat, Ellis said, “We, along with Maritime Partners, Elliott Bay Design Group and ABB, recently participated in a very detailed, two-day risk assessment in which many of the operational, compliance and maintenance aspects of the vessel were discussed and considered. At this time, we are still in the discovery phase of determining the operating parameters and costs associated with this vessel.”


Risk analysis workshop
The risk analysis workshop was conducted in July, facilitated by classification society Lloyd’s Register, and attended by staff from the U.S. Coast Guard’s local office in Houma, La. and engineering team in Washinton D.C., as well as the project design team and representatives from ACBL.

“The workshop was highly successful, and the USCG was highly complimentary of the breadth and depth of the team we assembled. At the conclusion of the workshop, all significant identified risks were adequately addressed to the satisfaction of all attendees,” Complita said.

“Lloyd’s has since provided the formal register document which will accompany our updated Design Basis Agreement to be submitted to the USCG. Once the USCG approves the Design Basis Agreement, we will submit the design plans and documents for approval by the Marine Safety Center.

“Coming out of the workshop, the design is substantially complete, and the project remains on schedule with construction starting in the third quarter of this year.”


Ultimately, Maritime Partners believes it is bringing to market a solution that will eventually be able to compete on cost with an EPA Tier 4 combustion engine towboat. “With the adoption of Tier 4, the cost curve is already going up. In order to build a Tier 4 towboat, there is a significant increase in cost versus Tier 3, which gives us the room with this new towboat—even at a higher cost—to come in competitively,” Livingston said.

According to Schluter, e1 Marine is able to show a return on investment (ROI) about five or six years, versus a Tier 4 diesel engine. “That’s very exciting because we’re actually more cost effective in that type of solution five years out,” he said. “This technology can be cost effective. It’s not an R&D project. It’s not the only way we can afford this as a government grant. This is real and ready to go. There is going to be more work in the near term. Hydrogen One is more expensive than what Hydrogen Three will be, right?”

Maritime Partners shares this view and is funding the Hydrogen One project without financial assistance from the government. “It will take a little time, it will take a little scale, but we believe that [cost competitiveness] is a real benefit to this technology,” Brooks added. “It’s not some pie-in-the-sky, highly expensive solution that requires government funding. This is something that can find widespread adoption given the cost competitiveness of it.”

(Image: EBDG)

Equipped with ABB’s electrical power distribution and automation technology, Hydrogen One will be able to perform at standard operational speeds for up to 550 miles before it needs to refuel. Better yet, it will meet the International Maritime Organization’s (IMO) 2030 goals, which target 40% reduction in greenhouse gas (GHG) emissions relative to 2008. The vessel will also meet all requirements of the U.S. Coast Guard’s Subchapter M regulations.

Challenges
With any first-of-its-kind vessel comes a unique set of challenges. For Hydrogen One, the sheer size and weight of the on-board power equipment presented a few design and technical tests for EBDG and the team. The fuel cells, reformers and batteries collectively are physically much larger and heavier than a pair of conventional diesel engines of the same power, Complita said. “We had to carefully arrange and balance the boat to accommodate the weight, to put that equipment in an area that’s safe and away from the crew quarters without impacting visibility from the wheelhouse.”

Complita also noted that alternative fuels are typically anywhere from 20 to 80% less energy dense than diesel, meaning a larger fuel capacity is required in order for the vessel to go the distance. “That makes it also technologically challenging to design the boat to have more space to carry fuel, especially in a conventional inland towboat,” he explained. “Hydrogen One is a small boat relative to the power that it generates. And so we need a lot of fuel and a lot of power, and packing that all into that conventional size has been a challenge.”

Dave Lee, VP of sales for global workboat marine systems at ABB, said new technology brings questions about how all the onboard systems will be controlled. “Unlike a traditional boat there are many different subsystems to this boat that have to be controlled independently and then be seamlessly integrated into the overall control at the same time.”

According to Lee, Maritime Partners saw the value in ABB’s “long history of not only electrical propulsion integration but also process automation in many different industries” to help tackle this challenge. ABB has been working closely with EBDG throughout the design process and will assist over the course of the build to ensure Hydrogen One’s systems work together seamlessly.

While a walk down below to the machinery space—not engine room—on board Hydrogen One will reveal a boat that looks very different than a traditional towboat, not much will be changed on the bridge. “It is an important item to any towboat or workboat operator that the wheelhouse is mainly unchanged, and this is no different on Hydrogen One,” Lee said. “For the captain, they will not tell much difference other than the greater response in a boat like this and the fact that they will have a couple more computers in the wheelhouse.”

“The real drawback to any new boat like this is that it is different, and there will be different skills needed to work on and maintain the boat,” Lee said, but added that the industry is willing and ready to advance. “We have gone through this before in the marine industry. You can only imagine what it was like to go from steam engines to diesel engines, or more recently, for operators adopting Z-drives compared to traditional shaftline boats.

“[Hydrogen One] will be different, but the marine industry is ready for something different, and definitely their customers are as well.”

Source: https://www.marinelink.com/news/hydrogen-one-innovative-towboat-set-shake-499381

 

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

 


Bulk carrier ASIAN MAJESTY arrived at Riga Latvia from S-Petersburg Russia, on Mar 3, with 55000 tons of potassium chloride on board, to be topped off with the rest of the lot. Cargo belongs to Mauritius-registered company “United Fertilizers Company Limited”, owned by Russian oligarch Dmitriy Mazepin. Mazepin and all his assets were sanctioned shortly after Russia invaded Ukraine. The ship was detained in Riga port and since March, remains at Riga Anchorage. The ship herself, and cargo of some $17 mil value, are not subjects to sanctions, but owner of the cargo is sanctioned, so Latvian Customs, in accordance with sanctions regulations, had to detain ASIAN MAJESTY.
The crew essentially, doesn’t encounter negative consequences like lack of supplies, because the ship and the crew aren’t abandoned. The problem lies with cargo – Latvian Authorities together with other interested parties, still can’t work out a solution which will satisfy all involved and won’t violate sanctions, with that.

Source: https://www.fleetmon.com/maritime-news/2022/39489/u-ming-bulk-carrier-stuck-latvia-more-6-months-bec/

 

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

 


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