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COSCO SHIPPING Ports Limited (“COSCO SHIPPING Ports” or “CSP” or the “Company”, SEHK: 1199), the world’s leading ports operator, today announced interim results of the Company and its subsidiaries (the “Group”) for the 6 months ended 30 June 2022.

2022 Interim Results Highlights

Total equity throughput increased by 5.3% YoY to 20,494,012 TEU
Revenue increased by 24.7% YoY to US$704.6 million
Gross profit increased by 33.3% YoY to US$197.7 million
Share of profits from joint ventures and associates decreased by 8.5% YoY to US$160.2 million
Profit attributable to equity holders of the Company increased by 0.8% YoY to US$177.0 million
Declared a first interim dividend of US 2.128 cents per share, an increased of 0.4% YoY

FINANCIAL REVIEW

COSCO SHIPPING Ports’ 1H2022 revenue increased by 24.7% YoY to US$704.6 million. Gross profit increased by 33.3% YoY to US$197.7 million. Mainly due to increase in ASP, gross profit margin increased by 1.8 percentage points YoY to 28.1%. During the period, profit attributable to equity holders of the Company increased by 0.8% YoY to US$177.0 million.

OPERATIONAL REVIEW

1H 2022
Total throughput was 63,210,330 TEU, +0.8% YoY
Total equity throughput was 20,494,012 TEU, +5.3% YoY
Total throughput from subsidiaries was 15,679,516 TEU, +38.0% YoY

Note: In 2021, the Company completed the acquisition of additional equity interest in Tianjin Container Terminal to make it a subsidiary and completed the disposal of Tianjin Euroasia Terminal. Tianjin Container Terminal had become a terminal in which the Group has controlling stakes since December 2021. Therefore, throughput of this terminal in 1H2022 was included in the throughput from the terminals in which the Group has controlling stakes, while in 1H2021, such throughput was categorized into the Group’s non-controlling terminals. After the disposal of Tianjin Euroasia Terminal in December 2021, throughput of this terminal was no longer included in the Group’s
non-controlling terminals.

China
During the period, total throughput of the terminals in China decreased by 1.9% YoY to 47,562,593 TEU (1H2021: 48,471,403 TEU) and accounted for 75.2% of the Group’s total throughput. Total equity throughput of terminals in China increased by 2.4% YoY to 14,259,249 TEU (1H2021: 13,246,438 TEU) and accounted for 69.6% of the Group’s total equity throughput.

Bohai Rim
During the period, total throughput of the Bohai Rim region decreased by 3.5% YoY to 20,767,708 TEU (1H2021: 21,511,420 TEU) and accounted for 32.9% of the Group’s total throughput. Total equity throughput of the Bohai Rim region increased by 23.3% YoY to 5,809,679 TEU (1H2021: 4,713,238 TEU) and accounted for 28.3% of the Group’s total equity throughput. Benefiting from increased domestic container volume, total throughput of Dalian Container Terminal Co., Ltd. (“Dalian Container Terminal”) increased by 10.9% YoY to 1,869,273 TEU (1H2021: 1,686,036 TEU). Total throughput of Tianjin Container Terminal decreased by 3.3% YoY to 4,318,871 TEU (1H2021: 4,466,048 TEU).

Yangtze River Delta
During the period, total throughput of the Yangtze River Delta region decreased by 16.0% YoY to 6,483,243 TEU (1H2021: 7,718,194 TEU) and accounted for 10.2% of the Group’s total throughput. Total equity throughput of the Yangtze River Delta region decreased by 14.8% YoY to 1,817,298 TEU (1H2021: 2,133,262 TEU) and accounted for 8.9% of the Group’s total equity throughput. Total throughput of Nantong Tonghai Port Co., Ltd. decreased by 8.3% YoY to 678,597 TEU (1H2021: 739,907 TEU), mainly due to the negative impact on domestic and foreign trade caused by the pandemic in the surrounding areas. Due to an outbreak in COVID-19 cases earlier this year in Shanghai which affected terminal operations and container volume, total throughput of Shanghai Mingdong Terminal decreased by 30.7% YoY to 2,358,620 TEU (1H2021: 3,405,517 TEU).

Southeast Coast and Others
During the period, total throughput of the Southeast Coast and Others region increased by 10.4% YoY to 3,280,185 TEU (1H2021: 2,971,482 TEU) and accounted for 5.2% of the Group’s total throughput.
Total equity throughput of Southeast Coast and Others region increased by 8.6% to 1,841,317 (1H2021: 1,695,884 TEU) and accounted for 9.0% of the Group’s total equity throughput. Driven by increased volume from the OCEAN Alliance, Xiamen Ocean Gate Terminal and the total throughput increased by 12.5% YoY to 1,407,182 TEU (1H2021: 1,250,465 TEU).

Pearl River Delta
During the period, total throughput of the Pearl River Delta region increased by 1.5% YoY to 13,866,357 TEU (1H2021: 13,662,407 TEU) and accounted for 21.9% of the Group’s total throughput. Total equity throughput of Pearl River Delta region decreased by 1.3% to 3,974,883 TEU (1H2021: 4,025,879 TEU) and accounted for 19.4% of the Group’s total equity throughput. Total throughput of Guangzhou South
China Oceangate Terminal decreased by 0.9% to 2,814,568 TEU (1H2021: 2,840,610 TEU). Total throughput of Yantian Terminals increased by 6.7% YoY to 6,920,830 TEU (1H2021: 6,486,265 TEU).

Southwest Coast
During the period, total throughput of the Southwest Coast region increased by 21.4% YoY to 3,165,100
TEU (1H2021: 2,607,900 TEU) and accounted for 5.0% of the Group’s total throughput, which was mainly benefited from the increased trade activities between China and Southeast Asia and the increased transshipment volume between Beibu Gulf and Hainan. Total equity throughput of Southwest Coast region increased by 20.3% to 816,072 TEU (1H2021: 678,175 TEU) and accounted for 4.0% of the Group’s total equity throughput.

Overseas
During the period, total throughput of the Overseas region increased by 9.9% YoY to 15,647,737 TEU (1H2021: 14,239,304 TEU) and accounted for 24.8% of the Group’s total throughput. Total equity throughput of Overseas region increased by 0.3% to 6,234,763 TEU(1H2021: 6,218,857 TEU) and accounted for 30.4% of the Group’s total equity throughput. The volume from ad-hoc shipping calls of CSP Zeebrugge Terminal increased and the total throughput increased by 26.4% YoY to 547,314 TEU (1H2021: 433,150 TEU). Driven by an increase in container volume contributed by the parent company and an increase in local transshipment container throughput, total throughput of CSP Abu Dhabi Terminal L.L.C. increased by 25.1% YoY to 413,057 TEU (1H2021: 330,308 TEU). Since the punctuality rate of shipping routes generally declined as a result of the continuous congestion at certain overseas ports, total throughput of Piraeus Terminal decreased by 9.6% YoY to 2,144,064 TEU (1H2021: 2,370,862 TEU).

Prospects
Although economic activities around the world in the first half of 2022 were still affected by the COVID-19 pandemic, China’s foreign trade achieved steady growth in the first half of the year.

According to statistics from the General Administration of Customs, China’s total import and export value of goods amounted to RMB19.8 trillion with a YoY increase of 9.4%. Export value amounted to RMB11.14 trillion with a YoY increase of 13.2%, while import value amounted to RMB8.66 trillion with a YoY increase of 4.8%.

Leveraging on its leading position in the global ports operator industry, the Company will continue to grasp strategic development opportunities by adopting a series of measures to increase revenue per TEU, continue to strengthen sales and marketing, actively increase volume and introduce new routes from various shipping companies to continuously increase revenue; accelerate the extension of supply chain to increase growth opportunities; accelerate the development of information technology and seize the opportunities brought by digitalization.

The Group will continue to identify potential projects, tap into strategic terminals in which it has controlling stakes and highly profitable non-subsidiary terminals to build a balanced global terminal network. In particular, the Company will continue to consolidate its domestic port resources, thereby restructuring its terminals and improving the quality of assets.

The Group will continue to grasp the opportunities to expand its global terminal network and focus on emerging markets with high future growth potential such as Southeast Asia, the Middle East and Africa to enhance the regional diversification of its terminal asset portfolio, in an attempt to provide shipping companies with cost efficient and high-quality terminal services and promote the growth of container volume and revenue.

To achieve better quality and efficiency of its terminal asset portfolio, strengthen the management and control over terminals, and build the core competitiveness of the Company, the Group will continue to work towards streamlining costs and increasing ASP. The Group will keep promoting technological innovation and accelerating the application of information technology and has adopted three main strategies to build a comprehensive platform to improve efficiency including the unification of its terminal operating systems (TOS), the construction of the management information system (MIS)
Source: COSCO SHIPPING Ports Limited

Supply chain risk company Everstream Analytics said carriers have avoided Felixstowe during the strike, with ship calls dropping by 82% from 29 in the week of August 15 to just five in the following strike week.

“The large-scale vessel diversions have led to higher congestion levels, especially at German ports that have battled labor actions on their own in the last few weeks,” said Everstream.

Waiting times at Hamburg hit a peak for the year of 42 hours last week and at Bremerhaven, 18 vessels per day waited at anchor to berth, another 2022 high and around 63% above the annual average.

The strike at Felixstowe has ended, but the underlying issue of pay is yet to be resolved.

“The ball is now firmly back in Felixstowe’s court. The employer has the opportunity to make a greatly improved offer which will end this dispute. If the employer declines this opportunity, then further strike action is expected to be announced in the coming weeks,” said a spokesperson for Unite the union.

Unions have proposed September 19 as a potential date for more strike action, potentially with fellow dockworkers at the Port of Liverpool striking alongside workers at Felixstowe.

“Knock-on congestion and delays on other European ports are therefore likely to occur in the coming weeks as well as we head into the beginning of Q4 and the holiday season,” said Everstream.

Port owner Hutchison said it offered a “very fair” 7% pay rise to workers along with a one-off £500 bonus.

The threat of further industrial action comes at a time of widespread strikes in the UK, including by rail workers, barristers, council workers, and postal workers. The most prominent reason for strikes is insufficient pay increases in the face of high inflation.

Unite, the union behind the Felixstowe strike, has had recent success in the UK maritime sector. Workers at ferry operator Red Funnel voted to accept a two-year pay deal of between 13.4% and 18.3% covering members including ratings, shunters and customer service staff.

The strikes are the latest in a series of disruptions to the UK supply chain, adding to complications from Brexit regulatory changes, pandemic impacts, and the loss of ferry capacity during the P&O Ferries debacle.

Source: https://www.seatrade-maritime.com/containers/european-ports-feel-strain-after-felixstowe-strike

A United States Coast Guard vessel was unable to enter Solomon Islands for a routine port call because the Solomon Islands government did not respond to a request for it to refuel and provision, a U.S. official said.

The islands’ government did not immediately answer a Reuters request for comment. The Solomon Islands has had a tense relationship with the United States and its allies since striking a security pact with China in May.

The USCGC Oliver Henry was on patrol for illegal fishing in the South Pacific for a regional fisheries agency when it failed to obtain entry to refuel at Honiara, the Solomons’ capital, a U.S. Coast Guard press officer told Reuters in an emailed statement.

The U.S. vessel was diverted to Papua New Guinea instead, the official said.

The British navy declined to comment on social media reports that patrol vessel HMS Spey, also taking part in Operation Island Chief to monitor for illegal fishing in the economic exclusion zones of Fiji, Papua New Guinea, Solomon Islands and Vanuatu, was declined port access by the Solomon Islands.

“Ships’ programs are under constant review, and it is routine practice for them to change. For reasons of operational security we do not discuss details,” a Royal Navy spokesman said in an emailed statement.

The Solomons’ government and Beijing have ruled out a Chinese military base on the islands, although a leaked draft showed the security agreement would allow the Chinese navy to dock and replenish.

The fisheries agency for the Pacific Islands Forum, a block of 17 Pacific nations, has a maritime surveillance center in Honiara, and holds annual surveillance operations for illegal fishing with assistance from Australia, United States, New Zealand and France. read more

The USCGC Oliver Henry was scheduled for a routine logistics port call in the Solomon Islands, Kristin Kam, public affairs officer for the U.S. Coast Guard in Hawaii told Reuters in an emailed statement.

“The Government of the Solomon Islands did not respond to the U.S. Government’s request for diplomatic clearance for the vessel to refuel and provision in Honiara,” she said.

“The U.S. Department of State is in contact with the Government of the Solomon Islands and expect all future clearances will be provided to U.S. ships,” she added.

HMS Spey had Fiji navy officers on board as it worked alongside long-range maritime patrol aircraft from Australia and New Zealand and the US Coast Guard in the operation to gather information for the Pacific Islands Forum fisheries agency, the Royal Navy said in a statement on Thursday.

It carried out inspections of suspect vessels in ports as well as boardings at sea, the statement said.

The Royal Navy spokesman said it “looks forward to visiting the Solomon Islands at a later date”.

Source: https://www.marinelink.com/news/us-coast-guard-vessel-blocked-bunkering-499118

Over the last two and half years of the pandemic cases of companies abandoning their seafarers on ships around the world have increased sharply with a record 95 cases reported last year to the International Maritime Organization (IMO) and International Labour Organization (ILO) joint database on abandonment of seafarers.

Speaking at the International Safety@Sea Conference in Singapore Dr Heike Deggim, Director, Maritime Safety Division, IMO, said that so far this year 74 cases of seafarer abandonment had been reported to the IMO/ILO database.

“This was only during the first half of 2022, so, we can assume that this year we are heading towards surpassing 2021’s record of 95 cases,” she said.

Clearly this not a trend anyone wants to see continuing and it was something Dr Degim said needed to be worked on.

“The joint IMO/ILO tripartite working group has been re-established by ILO and IMO to identify and address seafarer issues, and the human element. It will meet over the next two years in several sessions, and they will address in particular guidelines on how to deal with seafarer abandonment cases,” she said.

The working group will also address other issues related to seafarer welfare including the treatment of those suspected of maritime crimes, and bullying and harassment, including sexual assault.

The International Transport Workers Federation (ITF) recently highlighted the growing number of cases seafarers reporting the non-payment of wages for two months or longer, which meets the ILO’s definition of abandonment. It said that seafarers did not always realise that not being paid for a couple of months could be a precursor to abandonment.

In 2021 the ITF clawed back some $37m in wages that had been withheld from crew by shipowners.

Source: https://www.seatrade-maritime.com/ship-operations/shipping-headed-towards-record-number-seafarer-abandonments-2022

“We are expecting to realize integration between our digital platforms and GSBN’s blockchain platform, solve the problems of data and resources exchange for industry supply chain and simplify business operation process,” said Hu Haibing, chief accountant of Cosco Shipping Bulk.

Signing of the agreement marks Cosco Shipping Bulk to be valued as a crucial part for GSBN to expand business besides container sector and establish a more completed global blockchain platform.

Incorporated in Hong Kong, GSBN is an independent, not-for-profit technology consortium to build a blockchain-enabled operating system to redefine global trade. Cosco Shipping Group’s container shipping and port operation units of Cosco Shipping Lines and Cosco Shipping Ports are the two of the eight founders of GSBN.

The Baltic Exchange’s main sea freight index fell for a fourth straight session on Tuesday as weakness in Chinese steel consumption took a toll on capesize demand, while rates for other vessel segments also retreated.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, fell 65 points, or about 6%, to 1,017 points, a more than two-year low.

The capesize index fell for the fourth consecutive session, shedding 74 points, or about 18%, to 337 points, its lowest since early June 2020.

A sharp retraction in the overall trend brought about by the “deteriorating conditions faced in the steel market seems to have overshadowed and outplayed any seasonal hike that is typically seen at this point in the year,” Allied Shipping Research said in a weekly note.

“We can hardly expect any robust trend to emerge in the near term,” Allied added, referring to capesize demand from China.

Dalian and Singapore iron ore futures plummeted amid renewed worries over COVID-19 curbs and steel output restrictions in top producer China.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as coal and steelmaking-ingredient iron ore, fell by $620 to $2,793.

The panamax index fell 88 points, or about 6.4%, to 1,284 points, on its worst day in over eight months. It also hit its lowest since late November 2020.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, decreased by $788 to $11,556.

The supramax index fell for the third day, losing 53 points to 1,691 points, on its worst day in more than three weeks.

An LNG tanker and a bulk carrier have collided off Gibraltar, leaving the latter beached, authorities in the British overseas territory on the southern tip of the Iberian peninsula said on Tuesday.

The collision forced the closure of the port for four hours, but it has fully reopened, authorities said, while booms were being deployed around the beached vessel to prevent any potential fuel spill.

“The Gibraltar Port Authority remains at the scene and is continuously reviewing all aspects of the situation,” the Gibraltar government said in a statement.

The vessel OS 35, loaded with steel bars and carrying over 400 tonnes of fuel, clipped the ADAM LNG as the former was moving to exit the bay. The Marshall Islands-flagged ADAM LNG arrived in Gibraltar after unloading in Malta. It remains at anchor near the place where the collision took place.

The Gibraltar Port Authority directed the OS 35 to the eastside to ensure it could be safely beached to minimize the risk of the vessel sinking.

Its 24-strong crew remain onboard at the request of the captain, but could be evacuated if necessary.

Source: https://www.marinelink.com/news/bulk-carrier-aground-collision-lng-499103

A ship carrying wheat from Ukraine to the drought-stricken Horn of Africa docked on Tuesday, the United Nations said, the first to make the journey since the Russian invasion six months ago.

The vessel Brave Commander is carrying 23,000 tonnes of grain and will soon be followed by another carrying 7,000 tonnes.

The total shipment, which will be unloaded in Djibouti and transported to Ethiopia, is enough to feed 1.5 million people for a month.

That barely begins to alleviate the problems of Eastern Africa, where the United Nations’ World Food Programme says extreme weather, surging food prices and conflict mean 82 million people need food aid across nine countries – Burundi, Djiouti, Ethiopia, Kenya, Rwanda, Somalia, South Sudan, Sudan and Uganda.

“This shipment, the first of many we hope, will allow WFP to deliver this grain to 1.53 million people in Ethiopia and cover their needs for a month. It’s a start but we must continue to keep the food flowing to save lives across the region,” said Michael Dunford, the WFP director for Eastern Africa.

Officials hope the successful voyage will inspire private companies to begin shipping grain from Ukraine to Eastern Africa, where rising global food prices and difficulties raising donor funding have forced the United Nations to cut rations for refugees and displaced people.

Among them are 150,000 Eritrean refugees sheltering in Ethiopia, many of whom have been repeatedly displaced by conflict in the north, whose rations were cut in June to half the recommended amount of food.

“It’s not enough food. People are hungry,” said one Eritrean refugee in Alem-Wach Camp in northern Ethiopia.

“They explained to us the reasons, because of war in Ukraine,” said the man, who declined to give his name. “But it is especially hard because it is so cold now… the situation is so difficult.”

While the shipment will help people displaced by conflict, none of it will be sold commercially, meaning it will not lower food prices for ordinary Ethiopians.

Russia and Ukraine usually supply 90% of wheat imported in East Africa.

The Russia-Ukraine conflict sent fertiliser and food prices soaring as Russia blockaded Ukrainian ports. Energy prices have also surged following Western sanctions on Russia, a major energy exporter.

Last month, the United Nations and Turkey brokered a deal between Moscow and Kyiv to unblock three Black Sea ports, making it possible to send hundreds of thousands of tonnes of Ukrainian grain to buyers.

Ukraine is strengthening the humanitarian part of the grain initiative, officials said. On Tuesday, the bulk carrier Karteria departed, carrying 37,500 tonnes of wheat for Yemen, where 16 million people are hungry.

Source: https://www.marinelink.com/news/un-ships-food-relief-ukraine-499106

Norwegian Prima, the lead vessel of Norwegian Cruise Line’s (NCL) new Prima Class cruise ship series, has been christened in Reykjavík, Iceland.

Built by Italian shipbuilding group Fincantieri, the newbuild is 965 feet (294 meters) long and more than 143,535 tons with capacity for 3,100 guests at double occupancy.

The ship features a three-level go-kart racetrack, waterslides, expansive pool decks and infinity style pools, and a multimillion dollar outdoor sculpture garden

The first of six in NCL’s Prima Class, Norwegian Prima, along with its sister-ships, will form the backbone of the future NCL fleet. Deliveries are scheduled through 2027.

Norwegian Prima will depart on inaugural voyages to Northern Europe from the Netherlands, Denmark and England beginning September 3, 2022, before making her way to the U.S. She will then sail voyages to the Caribbean from New York City, Galveston, Texas, and Miami in October and November before settling into her homeport of Port Canaveral, Fla., and Galveston, Texas for the 2023 and 2024 cruise season.

Source: https://www.marinelink.com/news/norwegians-first-prima-class-cruise-ship-499086

E1 Marine, a global renewable energy company, announced today that its M-series methanol to hydrogen generator has received Approval in Principle (AiP) for marine applications from the Republic of the Marshall Islands (RMI) Maritime Administrator on any vessel type.

Quickly following the AiP from Lloyd’s Register in May 2022, the AiP from the RMI Maritime Administrator provides further confirmation that e1 Marine’s technology has the potential to become an important player in developing and delivering low-carbon energy to international maritime markets and is accelerating its development and growth on a global scale in line with demand.

Robert Schluter, Managing Director at e1 Marine, commented: “The M-series methanol to hydrogen generator is making hydrogen a viable fuel option for the maritime industry for vastly different applications. The AiP letter from the RMI Maritime Administrator is one step forward in our efforts to work with flag states to support vessel decarbonization. Our technology emits zero NOx, SOx and PM emissions which is helping to meet regulation but also assist with the potential for a carbon tax. This technology delivers a proven efficiency gain over legacy internal combustion engines with a more reliable, safer, and greener fuel than traditional marine bunkers and we look forward to demonstrating this in the near future.”

Gary Noonan, Director of Innovation at Ardmore Shipping added: “Shipowners are under pressure to reduce emissions in line with International Maritime Organization (IMO) measures. For Ardmore, the IMO 2030 and 2050 timelines are targets which we are trying to meet and exceed but this means taking innovative and comprehensive strategies to achieve this. When combined with PEM fuel cell technology, the e1 Marine Methanol Reformer costs are comparable with a Tier III generator set. However, it also shows more than a 25% relative improvement when comparing energy efficiencies in typical operation. This helps vessels to improve Carbon Intensity Indicator ratings and can be maximized further when using green methanol.”

David Wamsley, Deputy Commissioner of Maritime Affairs of the RMI Maritime Administrator said: “It is essential to create the right infrastructure to support sustainable shipping practices and protect marine life and coastal communities. Collaborating on new innovative technologies, like e1Marine’s M-series methanol to hydrogen generator, which will help shipowners explore new options for sustainable shipping, is one way to achieve this goal. Innovative low and zero-carbon energy providers are in a position to transform the shipping industry and we look forward to seeing what progress can be made in the short- and medium-terms.”

Through e1 Marine’s patented hydrogen generation technology, fuel cell-grade hydrogen is safely and cost-effectively generated from methanol and water. It can be delivered on-site, onboard, and on-demand, and it provides an immediately viable pathway to green energy.

The fuel cell grade hydrogen output meets all relevant ISO standards, and it is ideal for use with fuel cells to generate electricity or to supplement the standard fuel of a conventional engine.

Source: https://www.marineinsight.com/shipping-news/e1-marines-m-series-methanol-to-hydrogen-generator-received-aip-from-marshall-islands-marine-administration/