Naval shipyards and industry partners see business growing, but finding enough trained and qualified workers is a challenge.

General Dynamics Electric Boat will invest $1.7 billion to modernize and upgrade its Quonset, R.I. and Groton, Conn., facilities over the next ten years,” said Sean Davies , vice president for EB’s Quonset Point Operations. “Here at Quonset, we are investing $700 million that will increase our outfitting space by 13 acres, to support work on the Virginia and Columbia class of submarines. When we are complete, we will be adding 600,000 square feet of submarine module outfitting space here on our Rhode Island campus, which represents one of the largest construction projects undertaken in the state in recent years.”

Because the modular sections for the Columbia-class that will be fabricated at Quonset Point will be substantially larger and heavier than previous submarines, the company is building a new and larger ocean transport barge with about 6,000 tons of capacity to transport the modules along the East Coast between Newport News, Groton and Quonset Point. EB also plans to build a new floating drydock to accommodate the new Columbia class subs.

The Groton shipyard is also undergoing a major expansion. The new 200,000-sq. ft. South Yard Assembly building will eventually be the home of 1,400 skilled shipbuilders who will deliver the Columbia-class, and is part of an $850 million expansion at the EB Groton shipyard.

Electric Boat is experiencing significant hiring of designers, engineers, trade and industrial skilled employees to support the growth and expansion. In 2020, EB hired 2,000 people, mostly in the second half of the year due to earlier COVID limitations. In 2021, the company expects to hire 2,400 engineers, tradesmen and support personnel.

Led by the Southeastern New England Defense Industry Alliance (SENEDIA), a next-generation industry partnership supported by workforce development stakeholders, including state workforce agencies, academic institutions, training providers, and Manufacturing Extension Partnerships and Procurement Technical Assistance Centers in Connecticut, Massachusetts and Rhode Island are helping develop the qualified workforce that will design and build the submarines of today and the future. This effort is in the process of expanding to all the New England states.

Bond points to EB’s “pipeline partnerships” in both Connecticut and Rhode Island that helps to develop qualified, skilled and available personnel. “Our partners provide the basic skills in the trades for our new hires so they can be productive as soon as they set foot in the shipyard. This has been critical not only in building skills, but also dramatically reducing our first-year attrition. In most cases, we’ve been able to cut our first-year attrition in half because of the way we onboard them and introduce them to shipbuilding.”

Submarine construction is booming, with a high demand for qualified workers. This photo shows construction of a 200,000 square foot General Dynamics Electric Boat South Yard Assembly building dedicated to the construction of the Columbia class of ballistic missile submarines. The projects is the centerpiece of the biggest facility expansion in 50 years at the company’s Groton shipyard. (General Dynamics Electric Boat)

“We will put more than 1,000 people through those pipelines in Rhode Island, and we have a parallel pipeline in Connecticut,” said Davies. Our training programs used to focus on either Connecticut or Rhode Island, but SENEDIA brings a cross state and regional perspective, so we can expand into Massachusetts and further into New England.”

Developing skilled talent to design, build and repair ships requires partners. SENEDIA was awarded an $18.6 million contract in August 2020 from the Department of Defense to develop the Next Generation Submarine Shipbuilding Supply Chain Partnership, a robust New England regional workforce development program that will serve the needs of submarine shipbuilding employers and open up job exploration and employment opportunities to more than 5,000 potential workers.

“One of our key goals at SENEDIA is to help engage the next generation workforce so that they see and consider the many high-wage, high-demand, high-growth opportunities, whether STEM or trade/industrial skill related, there are through defense-related career pathways,” said SENEDIA Executive Director Molly Magee. “These careers make a tremendous impact on our national security, and the demand for skilled talent in our sector continues to grow.”

Magee said SENEDIA sees itself as the bridge between companies looking for talent and people looking to learn, train and work. “SENEDIA’s internship program has seen incredible success in kickstarting careers across IT and cybersecurity, engineering, supply chain management, undersea technology, and beyond. More than 90 percent of our interns find a job after graduation, and many with the companies for which they interned. Interns get paid, hands-on, on-the-job work experience, and our host companies get to know and train prospective employees.”

She further emphasized the important role of southeastern New England as the hub of submarine shipbuilding and undersea technology. Defense jobs support the building of the submarine and the technology and design of the systems on submarines and unmanned undersea vehicles. A strong undersea defense helps ensure our national security.

“As part of our DoD award, we launched www.BuildSubmarines.com to serve as a workforce resource, including a talent repository where prospective trade and industrial skilled workers can share their contact information and connect with employers. We have also developed a supplier database, allowing companies who are or could be part of the submarine supply chain, to highlight their company and capabilities. In our latest effort through the Submarine Shipbuilding Supply Chain Partnership, we have initiated an incumbent worker training reimbursement program, which will reimburse supply chain companies 100 percent of trade and industrial skill training costs, up to $30,000,” Magee said. “This is an investment in the individual employee today, and in the strength of our industry tomorrow, as many of these skills are transferable and are essential to the continued growth of submarine shipbuilding.”

Nuclear Quality Division’s (Code 2350) Nuclear Quality Support Specialist Catherine Hobb, a graduate of the Norfolk Naval Shipyard apprenticeship program observes her brother Rigging and Equipment Operation’s (Code 740) Apprentice Noah Coburn as he rigs up equipment. Their father, Richard Coburn, also had a career at NNSY, graduating from the apprenticeship program in 1987. (Photo by Shelby West)

New talent, toolsWhile ship builders and repair yards have always been concerned with training new workers, the challenge today is especially acute because senior level workers are retiring, and, as a group, the current workforce lacks the appropriate array of digital skills to fully utilize the next generation of tools, said retired Rear Adm. Brad Williamson, the executive director of the Hampton Roads Maritime Industrial Base Ecosystem (MIBE).

“The new workers who will build Columbia-class submarines when that program is at full rate production are in now middle school. These same workers will need to be trained in modern equipment and will also need these skills to build the new unmanned and autonomous platforms that are expected to make up a larger and larger portion of our fleet in the years ahead,” Williamson said. “These skills require the adoption of the latest technology, not only in the shipyards and ship repair facilities, but in the training pipelines that produce these workers.”

Plus, Williamson said, the maritime industry is competing with other industries for talent. “In Hampton Roads, we face current and future hiring competition both for specific skills and for general personnel who might choose to enter the maritime trades. This includes non-naval maritime projects such as Hampton Roads Bridge-Tunnel Expansion, offshore wind infrastructure and construction, and other industries in the region.

On the Public side, Williamson said that the Norfolk Naval Shipyard is overhauling its training program and facilities and has done a remarkable job at better understanding the competencies required for each availability and where those skills lie within their workforce, and then most importantly, getting after the delta up front to ensure they have the right workforce in place once the availability starts. “MIBE is partnered with NAVSEA on working to create alignment with the skillsets between the private and public side. This is not an easy task, but a worthy effort to see how much alignment we can achieve. Some of the larger forward-leaning private maritime yards have invested in their own training pipelines, but this is not necessarily an option for smaller repair facilities.”

MIBE focuses extensively on building better linkages with middle school and high school programs to bring maritime trades into view. “We partner with our Virginia Digital Shipbuilding Program which does extensive STEM outreach and we have proposals pending for Congressional approval that would provide funding to support maritime trades training in these school systems specifically designed to assist those in underserved communities,” Williamson said. “Our message is quite simple, these maritime trades can provide not just a job, but a long-term career and the chance for continued growth and opportunity.”

With the demand for skilled employees in the maritime trades, there is competition between the government and industry for talent, as well as other fleet concentration areas or naval shipbuilders beyond the Tidewater region. “This is why our current efforts with NAVSEA are so important,” said Williamson. “The goal is to someday have a workforce that could theoretically flow across public-private lines so that one unified workforce could meet Navy demands in the most efficient manner possible.”

Life-changing opportunities
Starting a career in the maritime trades can be life changing. So, Pearl Harbor Naval Shipyard engineer Lauryn-Mae Pang has some advice for young people looking for a career: “Change it up!”

She is a product of the Pearl Harbor Naval Shipyard – Intermediate Maintenance Facility (PHNSY-IMF) Apprenticeship Training Program, which is certified by the U.S. Department of Labor and administered through a contract between Honolulu Community College. PHNSY’s 2019 class was its biggest ever, with 278 graduates. The 2020 class, the 100th anniversary of the program, had 208 graduates, bringing the total number of apprentices to 5,800 since the program began. Apprentices received a minimum of 7,200 hours of on-the-job training, trade theory, and academic study during the program. Upon successful completion of the program, apprentices receive an Associate in Applied Science (A.A.S) Degree in Applied Trades and are promoted to journey workers in trades such as structural, mechanical, electrical/electronic, piping, air conditioning and refrigeration, and temporary services. Apprentices spend half the day in the classroom and the other half working with their shop.

Pang was working multiple jobs, when she saw the announcement of the Shipyard Job Fair. I was able to talk to people from the different shops about the various trades. I applied to take the test, passed it and went through the interview process, and was accepted to the program,” she said.

Pang said it was a little overwhelming at first. “I didn’t know anything about being a diesel crane mechanic. But the shipyard really took me in and taught me all the skills that I would need, and not just for that job, but a lot of other things.

Pang learned about the Apprentice to Engineer (A2E) program, where qualified and motivated Apprentice Program graduates can pursue a four-year engineering degree with her tuition and related educational fees paid by the Navy.

“Since I entered the apprenticeship program to have a career, this seemed like a good next step. It was a big motivator for me,” said Pang.

Ten years later, Pang attended the University of Hawaii at Manoa College of Engineering and earned her Bachelor of Engineering Degree. “After I got my degree, I was assigned to work with the nuclear engineers in Code 2320. They’re involved with anything involved with nuclear submarine propulsion. I recently transferred to 2310 and working on the structural side of nuclear engineering.”

Even now she receives a significant amount of training, like everyone else at the yard. “It’s something that never stops.”

Pang said the knowledge and skills she’s received have been invaluable. “I started when I was 29. I’ve accomplished a lot in ten years,” she said. “If I could have done it differently, I would have done it a lot sooner.”

She doesn’t hesitate to recommend the apprenticeship program to someone with some confidence, curiosity and drive. “Take the risk. Try it out. Trust the process. Take in what the shipyard has to offer. I didn’t think that as a diesel crane mechanic doing small jobs that I would eventually become a nuclear mechanical engineer working on entire propulsion systems. So, just go out there and do it! Change it up!”

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A U.S. judge has allowed Norwegian Cruise Line Holdings Ltd. (NCLH.N)todemand that passengers show written proof of coronavirus vaccination before they board a ship, dealing a major blow to Florida Governor Ron DeSantis’s effort to ban “vaccine passports.”

In a preliminary ruling issued on Sunday, U.S. District Judge Kathleen Williams in Miami said Norwegian would likely prevail on its argument that the “vaccine passport” ban, signed into law by DeSantis in May, jeopardizes public health and is an unconstitutional infringement on Norwegian’s rights.

The judge blocked DeSantis from enforcing the law against Norwegian, allowing the cruise ship operator to proceed with a plan to resume port activity in Miami on Aug. 15. Violations of the law could have triggered a penalty of $5,000 per passenger, potentially adding up to millions of dollars per cruise.

Raymond Treadwill, a lawyer for DeSantis, did not immediately respond to a request for comment.

The ruling comes as big business and some government entities are responding to the rapid spread of the Delta variant of the coronavirus with vaccination requirements, prompting legal challenges from vaccine skeptics and civil libertarians.

“We are pleased that Judge Williams saw the facts, the law and the science as we did and granted the Company’s motion for preliminary injunction allowing us to operate cruises from Florida with 100% vaccinated guests and crew,” the company’s executive vice president Daniel S. Farkas said in the statement.

Norwegian has said Florida’s law would prevent the company from ensuring at least 95% of passengers were vaccinated so it could comply with health regulations when it conducts its first post-pandemic voyage from Miami on Aug. 15.

DeSantis has become a national figure for opposing pandemic restrictions, even as the Republican governor’s state has become a hotbed of infections and hospitalizations have hit record levels.

He has argued that Florida law prevents discrimination and protects privacy by preventing businesses, schools or governments from demanding proof of immunity in return for service.

Norwegian has said the law was not about protecting passengers but scoring political points.

Norwegian is ramping up its return to cruises, which the Centers for Disease Control and Prevention (CDC) shut down in March 2020 with its “No Sail” order.

In order to sail, Norwegian has attested to the CDC it would confirm that at least 95% of passengers have been vaccinated.

Norwegian said the law violates the company’s First Amendment right to interact with customers and does not prevent discrimination because the company would have to segregate and mask passengers who declined to prove they were vaccinated.

The state argued that Norwegian could have opted, as rival cruise operators did, to seek CDC approval through a process of running simulated voyages and applying other COVID-19 protocols such as masking indoors.

(Reuters – Reporting by Tom Hals, additional reporting by Aakriti Bhalla; Editing by Noeleen Walder, Jonathan Oatis, Muralikumar Anantharaman and Diane Craft)

 

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During the first seven months of 2021, only three actively trading Very Large Crude Carriers (VLCCs) have been sold for demolition. The current market for seaborne transportation of crude oil is weak and has caused freight rates to drop to multi-year lows. Despite this, crude oil tanker shipowners are not seizing the opportunity to reduce capacity and send less efficient units to the demolition yards.

The subdued demolition activity is seen at a time when steel prices offered in Bangladesh, India, and Pakistan – the world’s top ship demolition locations – are at an all-time high. The price of steel from ship demolition is supported by high steel prices in general as well as the limited number of ships heading for demolition.



In addition to the three actively trading VLCCs demolished in the first seven months of the year, five retired VLCCs working as Floating Storage and Offloading units (FSOs) in recent years have been demolished.

However, as they are not actively trading, the demolition of these five VLCC (FSO)s does not affect the demand-supply imbalance, i.e., the freight rates. The average age of the scrapped VLCCs used as FSOs is 24 years while the average age for the three actively trading VLCCs is 22 years.



Owners take advantage of an attractive secondhand market
The lethargic pace of VLCC demolition is also explained by attractive prices for older ships in the secondhand market. According to VesselsValue, 69 VLCCs have changed hands in the Jan-July 2021 period, compared with 91 for the full year of 2020.

To some extent, what we see now is like what we saw in the period that followed the six quarters of high oil tanker earnings from Q4 2014 through Q1 2016. Following this it was not until Q3 2017 that we began to see a pick-up in demolition for VLCCs.

Time has proven that it takes time for shipowners’ demolition decision to mature, and that a weak market right in the wake of a strong one is not enough to take the final step and go for demolition.

“The low demolition level seen in the first seven months of the year for crude oil tankers surely takes some by surprise. Some are wondering why shipowners are not demolishing the excess fleet when freight rates have been sluggish for the past year,” said Peter Sand, BIMCO’s Chief Shipping Analyst. “The reason behind this is two-fold. First, the strong earnings enjoyed by everyone in the crude oil tanker shipping sector last year leaves no owner short of cash. Second, as secondhand prices exceed even the record-high prices offered for demolition steel, shipowners are more inclined to keep their tankers afloat and changing hands, rather than sending them to the demolition yards,” said Sand, adding: “Yet, nothing is straightforward as oil product tankers, on the other hand are heading for a record-high level of fleet demolition in 2021.”

 

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Japanese energy company Eneos Ocean has extended its charter agreement with Norwegian fertilizer company Yara International ASA for a liquified petroleum gas (LPG) carrier.

The vessel MT Leo Sunrise was built in 2014 at Hyundai Mipo Dockyard. Its carrying capacity is 35000 cubic meters and its current draught is reported to be 10.4 meters.

The unit measures 173.79 meters in length and its width is 28 meters. It is currently sailing under the flag of Singapore.

Yara started the charter contract for the multipurpose gas vessel with the tanker operator in 2019.

The company has signed several contracts to work on the development and promotion of the use of clean fuels in the maritime sector.

Last month Yara inked a memorandum of understanding (MoU) with Singaporean/Swiss commodity trading company Trafigura. The two companies intend to collaborate on initiatives that will establish themselves in the clean ammonia value chain.

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Eneos Ocean extends LPG charter contract with Yara


Japanese shipping major Mitsui O.S.K. Lines, Ltd. (MOL) has taken delivery of a new wood chip carrier from local shipyard Oshima Shipbuilding Co.

The vessel has been named Vanguardia and will transport wood chips for Daio Paper Corporation and operated by MOL.

It has an LOA of 209.96 metres, a beam of 37 metres, a deadweight of 60,222 tonnes, and a total cargo capacity of approximately 121,000 cubic metres.

The vessel is equipped with a SOx scrubber and ballast water management system (BWMS) and is already compliant with the Energy Efficiency Design Index (EEDI) Phase 3 to meet International Maritime Organisation’s (IMO) environmental regulations, according to MOL.

In EEDI Phase 3, which will be applicable to wood chip carriers contracted after 2025, the vessels will be required to achieve a 30% reduction in CO2 emissions from the EEDI baseline in their design phase.

The shipping giant revealed that the unit features “a seaworthy bow that reduces the decline in vessel speed during adverse weather and advanced flipper fins, energy-saving equipment to improve propulsion efficiency.

Furthermore, the wood chip carrier has “propeller boss cap fins (PBCF) in addition to adopting an electronically controlled engine and low-friction ship bottom paint.”

The environmental specifications of the ship are also in line with MOL’s environmental vision by which the company plans to deploy net-zero emissions ocean-going vessels in the 2020s.

 

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MOL takes delivery of eco-friendly wood chip carrier


British shipping company P&O Cruises’ 180,000-tonnes LNG-powered cruise ship Iona has departed Southampton for its maiden voyage.

P&O Cruises’ LNG-powered cruise ship Iona sails maiden voyage
Courtesy of P&O Cruises

The Iona was built by German shipbuilder Meyer Werft. It is the first of two LNG-powered vessels ordered by Carnival Corporation, the parent company for P&O Cruises.

Measuring 344,5 metres in length, this is reportedly the largest cruise ship on the British market. Also, it is the first one to be powered by LNG.

The ship left Southampton on 7 August for its first trip. The trip will take a seven-night cruise around the UK coast, with the vessel returning to the homeport on 14 August.

 

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P&O Cruises’ LNG-powered ship Iona sails maiden voyage


After signing a partnership agreement with six major cruise lines to bring shore power to PortMiami, Miami-Dade County has announced that the Floridian port will be “shore power ready” by fall 2023.

As disclosed, the Royal Caribbean’s Terminal A and Carnival Cruise Line’s new Terminal F will be the first facilities with shore power capability at the port.

The first phase of the program at Cruise Terminals A and F will transform the power levels at the port from the electrical grid to cable management systems for the heavy plugs and outlets on the vessels.

This system requires each party to implement improvements on the electrical grid and supply lines, shore-side equipment on the pier, and shore-to-ship connection on the cruise ship.

Additionally, PortMiami is working with the cruise line partners to ensure that their designated berths also have shore power connectivity as part of the project’s second phase.

In February 2021 Miami-Dade County launched an initiative to bring shore power to PortMiami in collaboration with Miami-Dade’s major cruise line partners, Carnival Cruise Lines, Disney Cruise Line, MSC Cruises, Norwegian Cruise Lines, Royal Caribbean Cruise Lines, and Virgin Voyages.

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PortMiami terminals to be “shore power ready” by fall 2023


As from 1 August 2021, Norway-based ship supply specialist Wilhelmsen has taken over sales, logistics and consulting for Klüber Lubrication’s maritime portfolio. Initially within European countries and Southeast Asia, followed by the rest of the world from October onwards.

As from 1 August 2021, Norway-based ship supply specialist Wilhelmsen has taken over sales, logistics and consulting for Klüber Lubrication’s maritime portfolio. Initially within European countries and Southeast Asia, followed by the rest of the world from October onwards.

Kjell Andre Engen, Executive Vice President Marine Products, Wilhelmsen said, “This exclusive partnership pairs Klüber Lubrication’s market-leading marine lubricants with our unrivalled sales, customer service and supply network. Stronger together, customers old and new will quickly recognise the clear financial and operational value of our partnership”.

Complementing Wilhelmsen’s existing marine products portfolio, Klüber Lubrication’s premium specialty lubricants, including EALs are designed for a variety of vessel and port applications. And are claimed to allow longer intervals between maintenance and help increase the lifespan of ship components.

Along with the clear financial and environmental incentives for choosing Klüber Lubrication, customers old and new will now benefit from Wilhelmsen’s in-depth maritime expertise, established global distribution network and dedicated account manager set-up. In addition, access to the wider Wilhelmsen marine products portfolio offers obvious added value for forward-thinking owners, operators and managers looking to optimize their vessel operations.  In parallel to the Wilhelmsen partnership, Klüber Lubrication will also continue to drive innovation working directly with original equipment manufacturers.

Christoph Köhler, Head of Global Business Team Marine at Klüber Lubrication said, “In 2018, Klüber Lubrication and Wilhelmsen signed a cooperation. Following intensive preparatory work, we are now combining our respective strengths. The aim is that operators of ships, shipyards and dry docks can purchase innovative, high-performance specialty lubricants from a single point of contact all over the world. Promptly, reliably and with competent consulting provided”.

Wilhelmsen’s Marine Products team have undergone in-depth training on Klüber Lubrication’s products and their applications.

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Wilhelmsen to become sole distributor and sales point for Klüber Lubrication


After more volatility in the first half of 2021, UK-based shipbroker Simpson Spence Young (SSY) analyses the last six months and highlights areas of particular interest in its mid-year outlook. The report looks at various drivers of the shipping markets, including the on-going impact of evolving emissions regulations.

After more volatility in the first half of 2021, UK-based shipbroker Simpson Spence Young (SSY) analyses the last six months and highlights areas of particular interest in its mid-year outlook. The report looks at various drivers of the shipping markets, including the on-going impact of evolving emissions regulations.

Contributions come from a range of senior research and broking experts and cover dry bulk, tanker, chemicals, and gas freight markets; shipping investments, CO2 emissions, green financing, freight derivatives, metals and energy derivatives. Together, they give a taste of what to look out for in the second half of 2021.

SSY Chairman Mark Richardson said, “The aim of this report is to offer a concise update on some of our key markets, looking at how the year has developed and what we might expect for the second half of 2021. The first six months of 2021 have been very much focussed on the three Cs: China, Covid and Carbon. The first is still the dominant force in shipping, the second continues to have an impact across the globe, and the third is fast becoming one of the key priorities in sustainable shipping. SSY will continue to watch the market closely and ensure we can provide the most up to date insights to our clients, underpinning our views with the latest research and data.”

Highlights of the report include:

  • Dry Bulk – “Despite crude steel production growth in January-June of almost 12% in China alongside a comparably robust 14% in the rest of the world, many benchmark steel prices have still managed to soar to record heights.” [P8]
  • Tankers – “China is a major driver of crude tanker demand, but its imports declined through 2Q21 as it reduced spot crude purchasing and utilized domestic stocks that were rapidly built in 2020 when oil prices were low.” [P12]
  • Chemicals – “With copper prices reaching 10-year highs, sulphuric acid became a very desirable commodity, being used in the production of copper. Asia is also one of the major acid exporting regions. During this period, demand soared, and freight rates almost doubled.” [P18]
  • LNG – “The first half of 2021 has been the strongest first half of any LNG shipping year since 2014, with an average price for TFDE vessels of $68,000 / day. Most owners would consider this to be at or above breakeven levels, which, for the traditionally poor half of the year, is very encouraging indeed.” [P34]
  • Dry FFAs – “The FFA market has responded to price volatility with increasing volume as existing traders react to price shifts and new participants come to the market to find a solution to increased exposure to risk. This was driven by demand growth in tonnage from Handysize to Panamax as imports into China boomed after their economy accelerated away from lockdown in Q1 and Q2.” [P24]
  • Green Financing – “We note that capital is increasingly reluctant to finance unproven technologies, even if classified as green. Retrofit financing of open loop scrubbers was deemed green financing just over a year ago, but views have changed drastically since then.” [P41]
  • Decarbonisation – SSY EEXI/EEDI estimates suggest that less than 25% of Bulkers and Tankers will attain compliance leaving most of the fleet facing either EPLs or another form of CO2 abatement. All these vessels will need to be assessed by class societies, creating a substantial logistical challenge.” [P46]

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SSY’s mid-year outlook report highlights growth and three Cs impact


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