Hong Kong liner OOCL today debuted a landmark new rail-sea service connecting China to the US east coast.

The Cosco subsidiary’s new offering is a combination of the Chang An China-Europe block train service from Xian to Kaliningrad with onward feeder to Bremerhaven, and then with OOCL ocean services from Bremerhaven to various ports on the US east coast.

The service is the first of its kind to be operated by an ocean carrier, connecting China and North America by using the Asia-Europe Land Bridge and the Atlantic Ocean.

“The intention is to provide reliable and timely shipment by seizing the opportunity to avoid the current high levels of traffic seen on routes to the US West Coast and through the Panama Canal,” OOCL stated in an update today.

The first multimodal container service run by OOCL Logistics and OOCL departed Xian on Wednesday.

 

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Prices of dry freight shipping containers have doubled over the past year to reach historic highs but will moderate over the next few years, according to Drewry’s recently published Container Census & Leasing Annual Review and Forecast 2021/22 report.

Dry box newbuild prices rallied strongly in 2020 from the lows of the prior year to reach their highest level since 2011 by the fourth quarter, with a year-on-year gain of 75%. Then by Q2 this year 40ft high cube containers breached the $6,500 threshold, more than doubling over the year, to reach their highest value since Drewry started monitoring container equipment prices back as far as 1998.

“Pricing has been driven by soaring demand for newbuild containers as shipping lines and lessors have been seeking to rebuild fleets in the face of chronic equipment availability due to widening disruption across the container supply chain,” said John Fossey, head of container equipment and leasing research at Drewry. “But also increased input costs, particularly for corten steel and flooring materials have also played a part. We expect dry box prices to peak in the third quarter and to soften thereafter, easing further over subsequent years as trade normalises.”

In sharp contrast, reefer and tank container prices changed little over 2020, but rallied in the first six months of 2021, up 6.5% and 40% year-onyear, respectively, in Q2. Prices of these specialist container types have different cost drivers to dry containers and are expected to continue rising although at a moderate pace over the next few years.

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Container equipment prices double in the space of 12 months


Taiwanese feeder boxship operator TS Lines has added to its newbuilding orderbook, having placed an order at Fujian Mawei Shipbuilding for the construction of six 1,100 teu containerships.

The 147.9 m long boxships, designed by Shanghai Ship Design and Research Institute (SDARI), are the latest generation of vessels for China-Japan shipping routes.

No price or delivery date has been revealed for this order.

Last month, LT Lines booked four 7,000 teu ships at Shanghai Waigaoqiao Shipbuilding and ordered another 1,900 teu boxship at Huangpu Wenchong Shipbuilding after signing up for a quartet in September last year.

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TS Lines books six boxships at Mawei Shipbuilding


The Waterborne Technology Platform has expanded its membership by welcoming its 100th partner – Maritime & Logistics Innovation Denmark (MARLOG).

MARLOG is Denmark’s official cluster organisation for the maritime and logistics sectors, representing 113 companies, knowledge institutions and organizations from the full value chain including shipowners, shipyards, equipment suppliers, ship designers, service companies, ports and logistic companies among others.

By joining Waterborne Technology Platform, MARLOG aims to contribute to the European maritime transition to green technologies and digitalization.

“Joining the Waterborne Technology Platform gives us an opportunity to strengthen the Danish maritime innovation agenda, through European collaboration and partnerships,” CEO of MARLOG, Sverre V. Lenbroch commented.

“In addition, the expansion of our membership shows the commitment of the sector to develop and deploy solutions for societal challenges. Although the sector is often branded as somewhat old- fashioned and not able to move forward, what we experience today is a full commitment of the sector to transform into a sustainable future,” the Chairman of the Waterborne Technology Platform, Henk Prins added.

Recently, the platform welcomed another member, the UK-based environmental consulting company Ricardo.

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Waterborne Technology Platform welcomes 100th member


Danish shipping and logistics giant A.P. Moller – Maersk has continued to deliver strong growth and profitability with profit going up to $3.7 billion in the second quarter of 2021.

Revenue was up almost 60% to $14.2 billion compared to the same quarter last year and EBIT amounted to $4.1 billion, which is up more than five times.

With a net profit of $3.7 billion in the second quarter of 2021, the net result for the first half of 2021 went up to $6.5 billion, the company revealed in its financial report.

“The results benefitted both from the exceptional circumstances in Ocean, where congestions and bottlenecks continued to drive up rates, and from solid progress in executing on our strategic transformation,” Søren Skou, CEO of A.P. Moller – Maersk commented.

“Looking at both the second quarter and the first half, I am pleased with the progress made and the high value generation, with a return on invested capital now at 23.7% for the past 12 months.”

The outlook for global market demand growth for the year has been revised up to 6-8 percent (about one percentage point), still mainly driven by American demand for Chinese goods.

Accordingly, Maersk has raised its profit guidance upwards, it now expects full-year EBITDA in the range of $18-19.5 billion (about $5 billion more than previous guidance of $13-15 billion) and underlying EBIT expected in the range of $14-15.5 billion (previously $9-11 billion).

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Maersk posts $3.7 billion profit in Q2 2021, expands logistics service


Taiwanese shipping line TS Lines has placed an order for the construction of six 1,100 TEU boxships at Fujian Mawei Shipbuilding.

As disclosed, the vessels feature Shanghai Ship Design and Research Institute’s (SDARI) design and are the latest generation of vessels for China-Japan shipping routes.

The new generation of 11,00TEUs is further optimized and upgraded to achieve energy saving and environmental protection targets.

The vessels are 147.9 meters long, 23.25 meters wide, and have 13,300 deadweight tons (DWT).

The ships’ price or the delivery dates were not disclosed.

The move follows TS Lines’ announcement made last month, revealing the order of four 7,000 TEU containerships at Shanghai Waigaoqiao Shipbuilding.

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TS Lines adds six 1,100 TEU containerships to its fleet


Monaco-based tanker operator Scorpio Tankers has taken a minority interest in a group of nine product tankers, including five dual-fuel Medium Range (MR) methanol tankers.

As informed, the MR tankers, built between 2016 and 2021, are designed to use methanol as fuel and carry it as cargo.

The dual-fuel MR Methanol tankers are currently on long-term time charter contracts longer than five years. The portfolio also includes four ice-class Long Range (LR) product tankers.

The company has bought the 6% minority stake for $7.2 million.

Separately, Scorpio Tankers announced its financial results for the second quarter of 2021. The company had a net loss of $52.8 million, or $0.97 basic and diluted loss per share.

“The global demand for oil and refined petroleum products remained subdued as governments around the world continued to impose travel restrictions and other measures in an effort to curtail the spread of the virus. These market conditions had an adverse impact on the demand for the Company’s vessels beginning in the third quarter of 2020 and continuing through the second quarter of 2021,” the company’s officials noted.

“The scale and duration of these circumstances is unknowable but could continue to have a material impact on the Company’s earnings, cash flow and financial condition in 2021.”

In January this year, the operator decided to sell and lease back three MR product tankers and one LR2 product tanker to China’s AVIC International Leasing.

 

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Scorpio Tankers boosts methanol footprint with new investment


Shell Tankers (Singapore) has signed a partnership agreement with ship management company Signal Maritime placing ten Medium Range (MR) product tankers into the company’s MR pool.

The company was an early adopter of the Signal Ocean platform in product tankers and the duo said they expect digital technology to help improve commercial results through the MR pool structure and other potential synergies.

In line with the shipping industry’s decarbonisation efforts, Shell and Signal have also joined forces to collaborate on carbon emissions reduction initiatives.

They will investigate further synergies and pooling opportunities in other tanker segments, as revealed by Signal Maritime.

Commercial ship manager Signal Maritime expanded its services by launching a new pool for MR product tankers in May 2021.

The move followed the success of its Aframax pool, which has been running since 2018 and consistently delivering good results, according to the company.

“Plans for further expansion of the pool with select partners are in progress, following the initial launch of the pool with vessels from Astra Shipmanagement and Signal.”

Last month, Shell Tankers inked new charter agreements with Knutsen LNG, Pan Ocean Co. and investors advised by J.P. Morgan Asset Management for six liquified natural gas (LNG) ships, bringing its LNG carrier fleet to a total of 24 vessels.

 

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Shell brings ten tankers to Signal Maritime’s MR pool


Carnival Cruises’ Italy-based, clean technology subsidiary Ecospray has expanded its range of innovative products with WESP, a preparatory technology for carbon capture solutions combined with EGCS and diesel engines.

Carnival Cruises’ Italy-based, clean technology subsidiary Ecospray has expanded its range of innovative products with WESP, a preparatory technology for carbon capture solutions combined with EGCS and diesel engines.

WESP (Wet Electrostatic Precipitator) which was developed in recent months is ready for its first installation on a cruise ship. Subsequently, thorough testing will be run in collaboration with important third-party bodies, such as RINA and SGS, in order to validate and assess the results.

The WESP system was developed to eliminate visible smoke from the stack, especially during engine start-up and at low loads, by capturing particles (PM2.5 and below) and part of condensable species (SO3). It can be installed downstream of the scrubber DeSOx tower and has low pressure drops and high removal efficiency. WESP can be integrated into an existing DeSOx tower or installed as a stand-alone unit, for both Open Loop and Hybrid scrubber systems.

All required laboratory testing has been successfully completed in recent months at the Ecospray Labs. The project will be developed in collaboration with RINA, who will support Ecospray in the assessment of the technology and run various tests.

SGS will also assist Ecospray with the laboratory analyses to test system performance in full scale.

Andrea Cogliolo, Senior Director Marine RINA, said, “RINA’s role in this project begins with the verification and validation of the installation drawings onboard the ship, continues by establishing a test protocol which is to be performed with the support of a third-party company equipped for measurements, and ends with the issuance of a report on the results achieved. The collaboration with Ecospray is part of RINA’s strategy, which looks at the energy transition as an area in which to make an important contribution. In the coming years, the shipping industry will be driven by decarbonisation and RINA is playing an active role in this transformation, making its multidisciplinary skills available to the sector to build an increasingly sustainable future.”

Vladimiro Bonamin, Director of SGS I&E Marine Services Geneva, said, “For this project, SGS Marine Services has been tasked with establishing the details for the analytical side of the test protocol prepared by RINA, and above all, preparing the QAQC protocol in order to guarantee top quality measurements. This collaboration with Ecospray is part of SGS’s wider strategy – as the only global player operating in the field of environmental measurements on large transport and cruise ships, we also want to be leaders for complex measurements in technological and scientific content.”

Filippo Lossani – Ecospray added, “Like the EGCS plants for diesel engines, WESP is a ‘bridge’ technology, meaning it’s a true transition technology which will guide us towards the 2030-2050 objectives. We are very satisfied with WESP, as it is a new product for the maritime industry and is ready to be installed. Considering the ever-increasing focus on issues involving environmental sustainability and health – and given the growing demand for the reduction of polluting emissions – we expect that the standardisation process of dust and particulates will be the necessary next step; and we are ready.”

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Ecospray unveils new particulate removal solution


Japanese operator K Line is claiming a world first with the installation of a carbon capture system on a bulk carrier as part of its CC-Ocean project carried out jointly with Mitsubishi Shipbuilding.

Japanese operator K Line is claiming a world first with the installation of a carbon capture system on a bulk carrier as part of its CC-Ocean project carried out jointly with Mitsubishi Shipbuilding.

K LINE has been conducting the joint project with Mitsubishi and Class NK to develop CO2 capture plant onboard vessel as part of the “Research and Development for advancing marine resources technologies”.

The small CO2 capture plant was installed on the coal carrier Corona Utility, operated by K Line for Tohoku Electric Power at Mitsubishi Heavy Industries’ Yokohama Works. For the installation of the plant, Class NK conducted a Hazard Identification Study (HAZID) and verified the viewpoint of safety.

After departure of the vessel from MHI Yokohama, experts from Mitsubishi Shipbuilding will be on board the vessel for one voyage to commission the small CO2 capture plant, evaluate its operation performance at sea, and analyse the captured CO2. After that, until the end of FY 2021, the ship’s crew will evaluate the operation, safety and operability of the CO2 capture plant, and will conduct demonstration tests in order to commercialise the plant such as downsizing in size and weight, efficiency of CO2 capture system with Mitsubishi Shipbuilding.

Based on the K LINE Environmental Vision 2050, the shipowner will continue to research, develop, and introduce various environmental load reduction technologies, including the “CC-OCEAN” project, and contribute to activities aimed at achieving GHG reduction targets and realising a carbon-neutral society.

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Misubishi and K Line testing shipping’s first carbon capture unit


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