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The Joint Coordination Center based in Turkey overseeing the export of grains from Ukraine announced a revision to the shipping route for the Black Sea Grain Initiative to further aid the movement of ships. As the first month of the program comes to a close, everyone agrees it has been a success and the latest effort is designed to further facilitate the safe movement of ships from the three Ukrainian ports.

“This route has been adjusted following an initial three weeks of operations. It allows for shorter transit in the maritime humanitarian corridor and easier planning for the shipping industry,” the JCC announced. The changes are effective immediately starting August 26.

The new route is 320 nautical miles long and connects the three Ukrainian ports, Odesa, Chornomorsk, and Yuzhny, with the inspection areas inside Turkish territorial waters. The JCC explains that the maritime humanitarian corridor, which makes part of this route, extends from the boundary of Ukrainian territorial seas to a southern waypoint. The new coordinates have been disseminated through the international navigation system NAVTEX with all vessels advised to alter this planning to follow the new path.

Under the UN-brokered agreement which is being implemented by Turkey, the JCC notes that “no military ship, aircraft, or unmanned aerial vehicle may approach within a radius of 10 nautical miles of any vessel engaged in the Initiative and transiting the corridor. The procedures state that any commercial vessel encountering provocations or threats while transiting the corridor should report immediately to the JCC.”

In the first three weeks of the program, data from the UN’s Black Sea Grain Initiative Joint Coordination Center shows that a total of 87 voyages have been approved by the JCC, with seven currently pending. A total of 39 voyages were approved outbound from the three ports. The majority of the vessels (23) are operating in and out of Chornomorsk with a total of 845,496 metric tons of foodstuffs having been exported from Ukraine. At the current pace of exports, they will approach the 1 million ton mark by the end of August.

UN Secretary-General António Guterres concluded his recent visit to Ukraine with a visit to first-hand see the export operations calling the food leaving Ukraine a vital supply to the world. “A powerful demonstration of what can be achieved, in even the most devastating of contexts, when we put people first,” he wrote in a social media posting.

In the last two and a half weeks, a total of 26 vessels have proceeded inbound to Ukraine with another 22 approved for the voyage and currently 14 have completed or are underway on their round trip after loading. Nearly two-thirds of the exports so far have been corn, but wheat is beginning to depart with already over 100,000 tons having been loaded for export. Other exports include soybeans, sugar beets, and sunflower seeds, oil, and meal.

As another demonstration of the importance of the efforts, the UN highlights that the exports have already gone to a dozen different countries. The list includes China, Djibouti, Egypt, Greece, Iran, Ireland, Italy, Netherlands, Republic of Korea, Romania, and Turkey.

The current pace of the operation shows that six to seven vessels a day are being inspected and cleared by the JCC in Turkey. Guterres call all aspects a success saying he was confident that it would make a critical difference in getting food supplies from Ukraine to impoverished nations.

JCC issued the revised route for the bulkers traveling to and from Ukraine

Source: https://www.maritime-executive.com/article/ukraine-black-sea-corridor-revised-to-make-passages-easier-and-shorter

The use of biofuel continues to expand across the shipping industry with TotalEnergies Marine Fuels reporting it completed both the first refueling of a COSCO Shipping Lines containership with sustainable marine biofuel in Singapore as well as its first fueling for a containership. The refueling, which was completed last month, comes as competing suppliers seek to expand the availability of biofuel in Singapore, which is the world’s largest bunker market.

The 4,250 TEU containership COSCO Houston was bunkered with TotalEnergies-supplied biofuel in Singapore waters, with a ship-to-ship transfer on July 11. The 49,900 dwt vessel, which was built 10 years ago, was supplied with Very Low Sulfur Fuel Oil (VLSFO) blended with 20 percent second-generation, waste-based and ISCC-certified Used Cooking Oil Methyl Ester (UCOME). The vessel was sailing to Jakarta, Indonesia and as with others that have been supplied with the biofuel blend, it was able to use the fuel without any modifications to its fuel systems.

Total estimated that from a well-to-wake assessment, the biofuel will reduce GHG emissions by approximately 17 percent compared with conventional fuel oil. The use of biofuels was supported by the Maritime and Port Authority of Singapore (MPA) and the involvement of local partners such as tank storage company, Vopak Terminals Singapore at Penjuru.

“This milestone bio-bunkering operation also further validates the important role of biofuels in decarbonizing conventional marine fuels, and the potential greenhouse gas reduction gains it can bring to existing vessels,” said Laura Ong, General Manager of Trading and Operations for Asia Pacific for TotalEnergies Marine Fuels.

Total started its biofuel operations in Singapore in March 2022 with the fueling of the MT Friendship, a 177,000 dwt bulk carrier owned by Seanergy Maritime Holdings and chartered by NYK Line to transport cargo provided by Anglo American. She was loaded with a 10 percent blend that was used during her two-way voyage between Singapore and South Africa. This was followed by the bunkering of a MOL-operated 19,900 dwt car and truck carrier, Heroic Ace. Like the COSCO containership, the car carrier received the second-generation 20 percent blend.

While biofuel has primarily been available in Europe, the competition for the fuel is starting to grow in Singapore. In July, a partnership between biofuel manufacturer GoodFuels and Japan’s ITOCHU also completed their first bunkering operation in Singapore. They supplied a blended VLSFO to the 12-year-old, 179,376 dwt bulker, the Frontier Explorer, during its port call on July 5 while it was sailing from Australia to India.

The emergence of biofuels in Singapore is seen as a clear sign that it is becoming an accepted near-term alternative that permits shipping companies to take immediate first steps at reducing greenhouse gas emissions. Many of the leading shipping companies have tested biofuel with all the results showing that it is a viable option for the world’s in-service fleets.

Source: https://www.maritime-executive.com/article/biofuel-competition-in-singapore-as-totalenergies-fuels-cosco-boxship

Germany’s unionized port workers and the association representing the seaport operators agreed to terms for a new contract after one of the longest running labor disputes in Germany in decades. The tentative agreement came just three days before a cooling-off period imposed by the Hamburg Labor Court was due to expire and removes the threat of further strikes which have been disrupting operations in all the North Sea Ports since June.

“This is a very good result. Our most important goal was real inflation compensation so that employees were not left alone with the consequences of the galloping price increases. We succeeded in doing that,” said ver.di negotiator Maya Schwiegershausen-Güth after the final collective bargaining round which concluded on August 23. The union, which represents more than 12,000 workers including the major ports of Hamburg, Bremerhaven, and Wilhelmshaven, reports that it is recommending that members accept the agreement, which is due to be finalized on September 5.

The first of the so called “warning strikes” in decades was carried out by the union members on June 9 in an effort to put increased pressure on Zentralverband der deutschen Seehafenbetriebe (Association of German Seaport Operators) was talked stalled covering 58 collective bargaining agreements. In the following weeks, the trade union Ver.di (United Services Union) sought to escalate pressure further through a series of follow-up strikes.

The issue came to a head after seven failed rounds of negotiations when ZDS went to the labor court. Citing the broader damage to the economy and disruptions to the supply chain, the court ordered the two sides back to negotiating table and set a moratorium on further strikes until August 26.

According to the union, it took 10 rounds of negotiations but they finally reached mutually agreeable terms. Depending on their positions, workers in container operations will on average receive a 9.4 percent wage increase including bonuses retroactive to July 1. Workers at general cargo operations receive a smaller 7.9 percent increase including bonuses. Effective June 1, 2023, they all will receive a further 4.4 percent increase that could be extended to 5.5 percent based on the rate of inflation next year. They also agreed if inflation is above those levels to commence further negotiations for the second year of the contract which expires May 31, 2024.

ZDS issued a brief statement at the conclusion of the negotiations saying it was pleased that the terms had been recommended for acceptance by the Federal Tariff Commission. They however noted that the terms also placed an increased burden on the seaport operators and would not only impact performance but also the competitiveness of the industry.

Compensation addressing the retail inflation rate had been one of the major sticking points during the negotiations much as it has also emerged as a key point in the negotiations in the UK. Workers at the UK’s Felixstowe struck this week over similar concerns while the workers at Liverpool have also authorized a strike focusing on compensation that matches the rate of inflation.

Source: https://www.maritime-executive.com/article/german-ports-and-workers-agree-to-terms-to-end-three-months-of-strikes

Russian river-sea product tanker KARAKUZ collided with small boat in Dardanelles off Burhanli at around 1800 UTC Aug 25, while transiting the Strait in southern direction, en route from Novorossiysk to Perama, Greece. 2 people in boat weren’t injured, boat sustained some damages. Tanker moved further south and was anchored at Kumkale anchorage, southern Dardanelles. Remained at anchor as of 0330 UTC Aug 26.

Source: https://www.fleetmon.com/maritime-news/2022/39297/russian-tanker-collided-boat-dardanelles/

CessCon Decom, a Scotland-based firm specializing in decommissioning of oil and gas structures, plans to launch a decommissioning hub at the Port of Aberdeen’s £400 million South Harbour expansion in Q3 2022, creating up to 50 new jobs.

The new hub will be located within Crathes Quay at South Harbour and deliver dismantling, recycling, and reuse services with a key focus on subsea infrastructure. The jobs boost is expected over the next 12 months, and CessCon said it would be encouraging applications from people living locally.

The facility is being established under a Memorandum of Understanding between the Port and CessCon. The agreement complements and expands the decommissioning services currently offered at the Port’s North Harbour and CessCon’s Energy Park Fife Decommissioning Facility.

The South Harbour decommissioning hub will offer heavy lift zones, impermeable concrete dismantlement and processing areas, water collection and treatment facilities, material storage areas, offices, and canteen facilities.

“CessCon is committed to the circular economy and the reuse and repurposing of equipment is a primary objective on all projects. The company has a minimum target on all projects of 98% reuse and recycling (by weight) of all material and has achieved over 99% reuse and recycling on several projects to date,” CessCon said.

According to the parties involved, the South Harbour expansion significantly enhances the Port’s capability and capacity, adding 1.4km of deepwater berths, considerable heavy-lift, flexible laydown space and expansive project areas.

The Port commenced a ‘soft start’ to operations at South Harbour in July and has already welcomed a range of vessels while construction continues at pace. South Harbour will be operational by the end of October 2022 and construction will conclude in Q2 2023 when the final quay is brought into service.

Aberdeen South Harbour – illustration of the South Harbour layout, Decommissioning Hub will be located within a section of Crathes Quay

The expanded Port of Aberdeen is at the heart of the North East Scotland Green Freeport bid which will create up to 32,000 high quality jobs and opportunities for those that need them most, boost GVA by £8.5 billion and transform the region into the ‘Net Zero Capital of Europe’. The bid is backed by a wide range of private sector companies, academia and parliamentarians from across the political divide.

Bob Sanguinetti, Chief Executive, Port of Aberdeen, said: “We’re delighted to announce the new decommissioning hub with CessCon Decom at South Harbour. This is one of a number of exciting opportunities that we’re pursuing to attract more decommissioning work to Aberdeen.

“Decommissioning is an important part of the UK’s energy transition and there are growing opportunities to reuse, repurpose and recycle material during the decommissioning process. We are keenly focused on this with CessCon and it complements our vision of becoming Scotland’s premier net zero port at the heart of the nation’s energy transition.”

“South Harbour is an asset of national strategic significance for the Scottish and UK Governments. Green Freeport status for North East Scotland is essential if we’re to maximise the economic benefit of the project for the local community and the national economy.”

Lee Hanlon, Chief Executive, CessCon Decom, said: “The new facility will be capable of handling turnkey decommissioning projects and the associated vessels. The substantial laydown and processing areas and water depths allow us to accommodate vessels up to 300m in length. With direct access to the North Sea, the facility is well placed to service the growing decommissioning market in parallel with our Energy Park Fife Decommissioning Facility in Methil, Fife.

“The move is the latest stage in our plans to capitalize on the huge North Sea decommissioning market. Our ongoing project to decommission, reuse and recycle Spirit Energy’s Morecambe Bay DP3 & DP4 platforms at our Energy Park Fife facility is going very well and with further projects in the pipeline in the UK, and the development of our new Anson Yard in Brunei, South East Asia, we are on the correct trajectory to achieve our growth strategy.”

A consortium led by Japanese gas company Inpex has won an assessment permit for a subsea carbon capture and storage site for its Ichthys LNG plant in Australia.

Inpex, together with Woodside and TotalEnergies, has secured a permit to look for suitable CCS sites in a promising area in the Bonaparte Basin, a shallow-water region just off the coast of Darwin, Australia. The liquefaction plant is located just outside of Darwin, and it would be a “natural user” of a CCS facility in the area, Inpex said in a statement. It would help Inpex, Woodside and TotalEnergies reduce carbon emissions from production and advance a shared goal of a net-zero carbon society by 2050.

Courtesy TotalEnergies

The project could also be a step towards a much larger, global-scale carbon capture, utilization and storage project planned by the Northern Territory’s government. The Commonwealth Scientific and Industrial Research Organisation (CSIRO) is currently leading the development of a business study for a carbon capture hub in the Northern Territory, working with Inpex and other stakeholders. If built, it could be a southern-hemisphere answer to Norway’s Northern Lights CCS project, and some of the captured carbon could be combined with hydrogen to make electrofuels.

TotalEnergies is also a partner in Northern Lights, and it has broader ambitions in CCS.

“TotalEnergies aims to develop more than 10 Mt/year of carbon storage capacity by 2030, including storage for its facilities as well as storage services for its customers,” said Julien Pouget, SVP TotalEnergies Asia-Pacific E&P & Renewables. “As a partner in both the Ichthys LNG and Bonaparte CCS Assessment joint ventures, TotalEnergies is well positioned to contribute to low carbon LNG production in Australia.”

Ukrainian industry news outlet Seafarer News reported tragic death of a 21-year old Ukrainian seaman on board of Greek bulk carrier MELPOMENI, on Aug 18. According to the story, young seaman was working all day through under scorching sun, moving heavy weights like tools and supplies. He felt sick, and informed Captain and CO, asking them to allow him to move from direct sunlight into shadows, but his plea was ignored. Next day he had to work with weights again, until finally, collapsed unconscious. He died, from heart attack or from stroke. Relatives blame ship’s officers for this tragic death, accusing them of negligence and lack of first-aid skills. MELPOMENI is presently docked at Ras Al Khair, Saudi Arabia. On Aug 17 she was anchored off Fujairah, left anchorage same day and sailed to Persian Gulf.
Understood young man was a cadet, probably undergoing his sea practice as a deck hand.

Consultancy Rystad Energy expects a drop-off ahead for Russian oil production and exports as the cutoff date for the planned EU oil embargo approaches. At the end of this year, the European Union will not allow further imports of Russian crude, depriving western Russia of access to its primary export market.

Over the span of the summer, Russia’s oil sector has been buoyed by high domestic demand, even as exports to Europe have fallen. Russian tourists are staying nearer to home due to the withdrawal of foreign airlines, and they are driving to their vacation destinations – thereby consuming more gasoline and creating demand for higher refining runs. This has helped offset the drop in demand from traditional European customers.

However, there are signs that the picture may not be so pleasant for Russia’s energy sector going forward. Rystad notes that crude exports shrank in June and July – including exports to buyers in Asia, who have been absorbing oil that would ordinarily be sold into European markets. The reason for Asian buyers’ declining interest is not known, but Rystad suggests that it could be that Russia has reduced the discount against Brent it is offering to its customers. These sales are private and undisclosed, but the pricing may have shifted from the previously-reported $30 per barrel discount to a more modest $15.

Whatever the cause, declining interest from Asia and the cutoff in Europe could reduce Russian crude exports by about 550,000 barrels a day by the end of December.

“Russia’s upstream sector has rebounded but this resilience is short term. Domestic consumption has helped fill the gap during the peak demand season, but overseas demand for Russian blends has dipped spelling trouble further ahead. The upcoming EU embargo remains an unknown factor, when and where it will impact is not yet clear, but it will hasten the decline expected this autumn,” said Daria Melnik, senior analyst at Rystad Energy, in a new researech note.

An impending economic downturn will likely add to the impact domestically. Russia’s own central bank predicts a severe economic contraction of about 10 percent in the fourth quarter. The resulting reduction in demand for energy will weigh on domestic refining runs, taking another 700,000 bpd bite out of domestic oil consumption, according to Rystad.

“Russia will have to cope with a national economic crisis as well as source new markets for its oil and oil products when the EU embargo comes into force. After the summer ramp-up, crude production is expected to fall again by 1.1 million bpd, but further recovery will be more challenging and will take more time,” predicted Rystad.

On Monday 22 August 2022 an incident occurred where a section of the quayside gave way causing two workers to fall into the sea and a crane to tilt to the side. Following the incident, one of the workers was rescued but the other worker was missing and Keppel worked with the Singapore Civil Defence Force (SCDF) and Police Coast Guard on search operations.

On Wednesday morning 24 August the body of the missing subcontract worker who fell into the sea following the incident on Monday was found, a Keppel Shipyard spokesperson said.

The spokesperson added: “We would like to express our deepest condolences to the family of the deceased and are rendering our full assistance to them. Keppel Shipyard values the safety and life of every worker and we deeply regret this tragic incident. We are working closely with the authorities to conduct thorough investigations and review.”

Migrant Workers’ Center (MWC), a non-government organisation dealing with employment practices and the well-being of migrant workers in Singapore, in a social media post on Tuesday shared its concerns over “yet another workplace accident”, adding it is a worrying trend.

“We are in the process of establishing contact with the worker’s employer, Kumarann Marine, to offer guidance and provide support to the injured workers,” the organisation added.

It is understood that a nearby vessel is SBM Offshore’s FPSO Prosperity, which is currently being prepared at the shipyard for operations on an ExxonMobil-operated project off Guyana.

As reported by Singapore’s The Straits Times on Wednesday, with Monday’s incident, at least two workplace accidents have taken place at the Keppel shipyard in Tuas this year.

Source: https://www.offshore-energy.biz/investigation-underway-after-fatal-accident-at-keppel-yard/

Widespread container shipping trade recovery in the wake of the Covid-19 pandemic has boosted the global terminal capacity outlook, supported by global terminal operators’ (GTOs) increased appetite for higher-risk greenfield projects to deliver long-term growth, according to Drewry’s latest Global Container Terminal Operators Annual Review and Forecast report.

Global container port capacity is projected to increase by an average annual rate of 2.4% to reach 1.38 billion teu by 2026. However, the worsening economic and geopolitical situation has led to a downgrading of the cargo demand outlook, and as a result container port utilization is now projected to moderate to 70% in 2025 compared to last year’s projection of 75%.

While the majority (70%) of GTO investment plans remain focused on existing assets, there has been a notable increase in the number of greenfield projects – with CMA Terminals, Hutchison and TIL all expected to add 4 mteu or additional greenfield capacity by 2026.

Eleanor Hadland, author of the report and Drewry’s senior analyst for ports and terminals said: “The renewed appetite for greenfield projects shows improved confidence in the market outlook. However, the ability of CMA Terminals and TIL to secure volume guarantees from CMA CGM and MSC gives these companies an advantage over non-carrier affiliated operators.”

Global supply chain disruption resulted in increased cargo dwell times in 2021 which generated additional storage charges, lifting terminal operators’ revenue growth above that which could be justified on the basis of volume recovery alone.

Port congestion does not appear to have adversely impacted financial performance, despite the widespread decline in productivity levels. The revenue raising mechanisms (i.e., paid-for overtime, storage charges) have so far proven to be sufficient to offset the additional congestion-related operating costs. Operators also cite the continuing cost control measures implemented in response to Covid as having a positive impact on margins.

“Once global supply chain disruption eases, which is now expected in 1H23, there is heightened risk that revenue gains will retreat as dwell times return to pre-pandemic levels,” added Hadland.

Capital expenditure bounced back in 2021, rising 31% YoY, but operators now face the twin challenges of longer lead time for handling equipment and rapidly rising costs. Drewry’s research also identifies that the pace of fund raising has slowed since 2020, with rising interest rates putting a brake on the market.

In general, favorable terminal operator financial performance has translated into robust balance sheets. With the exception of COSCO Ports and ICTSI, net debt fell, leading to a reduction in net gearing by 8.5 percentage points to 54.7%.

Looking back at 2021, the number of companies that qualified as GTOs fell from 21 to 20, with K Line dropping out of the rankings following the sale of its US operations in 4Q20. Growth in equity-adjusted throughput for the remaining 20 companies classified by Drewry as GTOs was 7.0%, marginally higher than the 6.8% growth in global port handling recorded in 2021. The leading operators handled over 48% of the global port volumes on an equity-adjusted basis, stable on a like-for-like basis vs. 2020.

APM Terminals reported the largest absolute increase in equity-adjusted volumes, with volumes up 4.7 mteu (10.3%) YoY.