The Coast Guard’s program of record (POR), which dates to 2004, calls for procuring 8 National Security Cutters (NSCs), 25 Offshore Patrol Cutters (OPCs), and 64 Fast Response Cutters (FRCs) as replacements for 90 aging Coast Guard high-endurance cutters, medium-endurance cutters, and patrol craft. The total of 64 FRCs includes 58 for domestic use and 6 for use by the Coast Guard in the Persian Gulf.

NSCs are the Coast Guard’s largest and most capable general-purpose cutters; they are replacing the Coast Guard’s 12 Hamilton-class high-endurance cutters. NSCs have an estimated average procurement cost of about $670 million per ship. Congress has fully funded the procurement of 11 NSCs—three more than the 8 in the Coast Guard’s POR—including the 10th and 11th in FY2018, which (like the 9th NSC) were not requested by the Coast Guard. In FY2020, Congress provided $100.5 million for procurement of long lead time materials (LLTM) for a 12th NSC, so as to preserve the option of procuring a 12th NSC while the Coast Guard evaluates its future needs. The Coast Guard’s proposed FY2023 budget requests $60.0 million in procurement funding for the NSC program. This request does not include further funding for a 12th NSC; it does include funding for closing out NSC procurement activities and transitioning to sustainment of in-service NSCs. Nine NSCs have entered service; the ninth was commissioned into service on March 19, 2021. The 10th is scheduled for delivery in 2023.

OPCs are to be less expensive and in some respects less capable than NSCs; they are intended to replace the Coast Guard’s 29 aged medium-endurance cutters. Coast Guard officials describe the OPC program and the Polar Security Cutter (PSC) program as the service’s highest acquisition priorities. (The PSC program is covered in another CRS report.) The Coast Guard’s FY2020 budget submission estimated the total acquisition cost of the 25 ships at $10.270 billion, or an average of about $411 million per ship. The first OPC was funded in FY2018. The first four OPCs are being built by Eastern Shipbuilding Group (ESG) of Panama City, FL. The Coast Guard held a full and open competition for a new contract to build the next 11 OPCs (numbers 5 through 15). On June 30, 2022, the Coast Guard announced that it had awarded a fixed-price incentive (firm target) contract to Austal USA of Mobile, AL, to produce up to 11 offshore patrol cutters (OPCs). The initial award is valued at $208.3 million and supports detail design and procurement of LLTM for the fifth OPC, with options for production of up to 11 OPCs in total. The contract has a potential value of up to $3.33 billion if all options are exercised. The Coast Guard’s proposed FY2023 budget requests $650.0 million in procurement funding for the 5th OPC, LLTM for the 6th, and other program costs.

FRCs are considerably smaller and less expensive than OPCs; they are intended to replace the Coast Guard’s 49 aging Island-class patrol boats. The Coast Guard’s FY2020 budget submission estimated the total acquisition cost of the 58 cutters intended for domestic use at $3.748.1 billion, or an average of about $65 million per cutter. A total of 64 FRCs were funded through FY2021. The Coast Guard’s proposed FY2022 budget did not request funding for the procurement of additional FRCs. In acting on the Coast Guard’s proposed FY2022 budget, Congress added $130 million in FRC procurement funding for the construction of up to two additional FRCs and associated class-wide activities. On August 9, 2022, the Coast Guard exercised a contract option with the FRC builder (Bollinger Shipyards of Lockport, LA) for $55.5 million of the $130 million for production of one FRC plus associated deliverables; this FRC will be the 65th. As of July 22, 2022, 48 FRCs have been commissioned into service. The Coast Guard’s proposed FY2023 budget requests $16.0 million in procurement funding for the FRC program; this request does not include funding for any additional FRCs.

Source: https://news.usni.org/2022/09/02/report-to-congress-on-coast-guard-cutter-procurement-17

Sea Watch, an organisation that conducts search and rescue operations in the Mediterranean, had multiple ships detained and inspected by Sicilian port authorities over the past months. The organisation decided to issue a legal challenge and Italian judges asked the European Court of Justice for guidance, resulting in the ruling that port authorities do not have the right to search or detain ships solely because they are carrying rescued people. However, the court gave a mixed ruling as it also said that regularly running search and rescue operations with ships certified for cargo does provide ground for port authority controls, according to  Reuters.

Sea Watch saw this ruling as a defense of its case, stating that it was “a victory for sea rescue.” It also said that “the fact that port state controls can continue to take place on N.G.O. ships is a good thing. They are intended to ensure ship safety, which is important to us. Arbitrary controls, on the other hand, must finally come to an end.” According to AP News, the E.C.J. said that people rescued at sea “must not be taken into account when verifying whether the rules on safety at sea have been complied with. The number of persons on board, even if greater than that which is authorised, therefore, in itself cannot constitute a ground for a control.” The guidance also stated that “the port State may adopt detention measures only in the event of a clear risk to safety, health or the environment, which it is for that State to demonstrate,” according to Jurist.

This ruling does indeed support the actions of ships attempting to rescue anyone in danger at sea, including migrants trying to reach Europe by crossing the Mediterranean. Allowing searches and detainment based solely on the increased number of passengers would dissuade ships from attempting rescues. With this ruling, ships are able to abide by international law to respond to distress calls, a requirement highlighted by Reuters.

The allowance for authorities to inspect ships with reasonable suspicion is also important, as it ensures that there is still enforcement of safety measures for the prevention of issues such as trafficking and smuggling. Furthermore, the requirement that the state performing these inspections must be responsible for proving this suspicion is vital, as state authorities already have the resources to do this, while ship personnel would require additional resources they may not be able to provide.

Migrants have been attempting to cross the Mediterranean for years, with many perishing during the dangerous journey due to a lack of appropriate crafts or supplies. According to U.N.H.C.R., the number of migrants who went missing or died at sea has been steadily increasing since 2019, reaching 3,231 last year. Many of these migrants are from the East and the Horn of Africa as well as the Middle East, places that the U.N.H.C.R. says have been “affected by years of conflict and displacement” and “where human rights abuses are not uncommon.” In the past years, the E.U. has responded to the migrant crisis by attempting to discourage crossings, which Human Rights Watch argues ignores the reasons people attempt the crossing and will likely fail.

The E.C.J.’s ruling, while not guaranteeing any changes in the current refuge policies in the E.U., does demonstrate that the group is committed to maintaining and enforcing current laws that support the rights of those seeking refuge. This decision allows ships to rescue anyone in danger at sea without fearing retribution while allowing authorities to ensure the safety of everyone onboard and on land. The guidance means that those making the perilous trip across the Mediterranean will have some additional support, making it safer for those who will inevitably try to cross regardless of how dangerous it is because their circumstances at home are even worse.

Source: https://theowp.org/e-u-court-guidance-supports-safety-on-the-mediterranean/

ZIM Integrated Shipping Services Ltd. on Wednesday announced it has signed a liquefied natural gas (LNG) bunkering deal valued at more than $1 billion with Shell NA LNG, LLC as the Israeli container shipping seeks to reduce emissions from its operations.

Under the 10-year sales and purchase agreement, Shell will supply 10 LNG-fueled vessels that will be deployed on ZIM’s flagship ZIM Container Service Pacific (ZCP), on the Asia to USEC trade. The 15,000 TEU vessels are expected to enter into service during 2023-2024 and will be transporting goods from China and South Korea to U.S. East Coast and the Caribbean. The agreement with may also cover other trades where ZIM LNG vessels could be deployed, the company said.

About 23% of total shipping emissions are from the container segment alone, and with increasing global trade of goods. LNG is the lowest carbon fuel available at scale today and it provides approximately 20% less greenhouse gas (GHG) emissions when compared to conventional marine fuels. In addition to GHG emissions reduction, LNG emits virtually no Sulphur oxides (SOx) and particulate matter (PM), while significantly reducing nitrogen oxide (NOx) emissions.

Eli Glickman, ZIM President & CEO, said, “With the addition of significant LNG-powered capacity to our fleet, beginning in 2023, we have positioned ZIM as a leader in carbon intensity reduction among global liners. We are pleased to execute this long-term supply agreement with Shell to secure LNG at competitive terms and look forward to partnering with a global industry leader such as Shell as we take an important step to ensure our fuel sourcing is well planned and of the highest quality. Our growing LNG-powered fleet will enable ZIM to be more carbon and cost efficient, while improving our competitive position, particularly on the strategic Asia to USEC trade, and allowing customers to reduce their carbon footprint.”

Steve Hill, Executive Vice President, Energy Marketing at Shell, said, “We would like to congratulate ZIM for introducing the world’s first LNG fueled very large containership (VLCS) fleet to operate on the Asia-North America shipping route. We are delighted to collaborate with them on their impressive efforts to reduce emissions in their maritime supply chain. Decarbonization of the shipping industry must begin today, and LNG is a lower emission fuel choice currently available in meaningful volumes, and via liquefied biomethane and liquified e-methane, offers a credible pathway to net zero GHG emissions.”

Source: https://www.marinelink.com/news/zim-inks-billion-lng-bunkering-deal-shell-499136