A cloud of dust rose over the port on 23 August after the collapse, which brought down the last of the northern block of silos damaged from the fire erupted in July.

The remaining southern block is more stable and not at imminent risk of collapse, said French civil engineer Emmanuel Durand, who has installed sensors on the silos.

The initial collapse was caused by a fire that broke out because of fermenting grains stored in the silos. Fire engines and an army helicopter have sprayed the silos with water in an attempt to put out the fire.

After the first collapse, more concrete silos cracked and fell on 4 August.

On 21 August, the Lebanese Health Ministry reported that samples from around the port showed high traces of common mould, a composition which is not dangerous unless inhaled in large quantities for a long period of time.

The Lebanese Government had previously ordered the demolition of the silos due to safety concerns, but the move has since been suspended amid objections from relatives of the victims who want to preserve the site as a memorial.

More than 200 people died and 7,000 were injured following the explosion in Beirut

Source: https://www.porttechnology.org/news/eight-more-silos-collapse-at-beirut-port/

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  • July throughput reached 935,345 TEUs, up 2.5% from previous record in July 2019
  • August imports forecast to begin easing from record highs with retailers cancelling orders as shoppers rein in pandemic spending
  • China factory orders just reported are slowing and top US importer Walmart cutting billions of dollars in orders to align inventory levels with expected demand

Port of Los Angeles saw a record throughput in July, with an estimated 935,345 twenty-foot equivalent units (TEUs) of containers, outpacing by 2.5% the previous record set in 2019 and setting the fifth monthly record in seven months in 2022.

The Western Hemisphere’s busiest port, however, expects August imports to begin easing as retailers cancel orders in the wake of shoppers’ pullback from freewheeling pandemic spending, its executive director Eugene Seroka said on August 17.

Los Angeles and its sister Port of Long Beach handle more imports from China than any other US ocean trade gateways, and their forecasts are considered an economic barometer.

“Remarkably, we continue to move record amounts of cargo while working down the backlog of ships almost 90%, a huge accomplishment by all of our partners,” Seroka said.

“Even with the current rail challenges, our marine terminals are more fluid than last year. That’s due in part to our Port Optimizer data portal that allows our stakeholders to see around corners and tackle problems before they arise,” he said in a news briefing.

Seroka noted that the Southern California supply chain landscape has improved, noting ships are now waiting for space at many other ports around the country.

“Our terminals have capacity,” Seroka added. “For cargo owners looking to re-chart their course, come to Los Angeles. We’re ready to help.”

Seroka was joined at the media briefing by Matt Schrap, chief executive of the Harbor Trucking Association. Schrap discussed the impact of AB5 on California truckers, how to attract and retain new drivers and the trucking industry’s transition to cleaner vehicles.

Transport workers went on strike in late July protesting against the Assembly Bill 5 (AB5) authored by former Assembly Member Lorena Gonzalez in 2019. Provisions in the bill require workers to satisfy a three-part test to be considered independent contractors.

While official July cargo volume will be available soon on the Port’s website, Seroka offered estimates on Wednesday that are expected to change only slightly when final.

July 2022 loaded imports reached an estimated 485,472 TEUs, an increase of 3.4% from the previous year and 8% higher than the previous five-year June average.

Loaded exports reached an estimated 103,497 TEUs, up 13% from the same period last year. Empty containers were estimated at 346,376 TEUs, increasing 5% from last year.

Seven months into 2022, the port has moved an estimated 6,349,248 TEUs, on pace with the record 10.7 million TEUs set last year, the busiest calendar year in its 115-year history. However, times are changing and the global economy is slowing.

“Imports will begin to ease somewhat. I expect to see that reflected in our August cargo numbers,” Reuters quoted Seroka in a report.

“China factory orders just reported were slowing and some US retailers continue to say they have elevated inventories,” he said. Incoming shipments at Los Angeles and Long Beach have been running more than 25% higher than before the pandemic in 2019.

Walmart, the No.1 US importer of containerized goods, said on Tuesday it had “cancelled billions of dollars in orders to help align inventory levels with expected demand.”

Seroka expects the port to handle fewer appliances, sporting goods and fixtures for bathrooms and kitchen remodels – as some of those purchases are not likely to be repeated in the near term.

“The heady days of growth in imports are quickly receding,” Hackett Associates founder Ben Hackett wrote in an August 2022 report prepared with the National Retail Federation (NRF), according to Reuters.

While Hackett and NRF expect second-half imports at major US container ports to decline versus 2021, they project that full-year 2022 imports will rise 2.1% to 29.7 million TEUs, which would be a record, Reuters said.

“The takeaway is that harder times are ahead, at least until mid-2023,” said Hackett, whose outlook calls for the import decline to deepen in 2023.

Source: https://www.portcalls.com/la-port-sees-record-july-as-imports-ease/

 

 

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As COVID-19-related guidance eases around the world, Royal Caribbean International has announced new protocols to more closely align with the broader travel industry. Starting Sept. 5, the cruise line will welcome all guests – unvaccinated and vaccinated – to sail

The new guidelines are:

  •  Unvaccinated guests can cruise with negative results from any commercially available test, including self-tests
  •  No testing is required for vaccinated guests sailing on cruises that are nine nights or less.
  • For all sailings, guests 5 years old and younger have no vaccine or testing requirements.
  • On sailings of 10-plus nights, guests – vaccinated or unvaccinated – must provide a negative test within three days of their sailing date.

Due to local regulations, sailings to or from Australia, Bermuda, Canada or Singapore still require guests to be vaccinated, the company said.

Source: https://www.cruiseindustrynews.com/cruise-news/28093-royal-caribbean-international-welcomes-all-guests-with-new-protocols.html

 

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  • Global chemical distributors belonging to International Chemical Trade Association have endorsed a safety guidance issued by organizations engaged in moving dangerous goods
  • A white paper, “Safety Guidance for Dangerous Goods Storage and Handling Facilities,” along with “Warehouse Checklist,” was issued last December by four global trade groups
  • ICTA promotes safe and sustainable chemical supply chains based on chemical distributors deep knowledge of chemicals and global markets

Global chemical traders have backed a safety guidance issued last December by a collective of organizations engaged in handling and moving dangerous goods.

Its latest endorser is International Chemical Trade Association (ICTA), which promotes safe and sustainable chemical supply chains. ICTA says it believes the chemical distribution industry has a key role in enabling chemistry to make a positive societal impact.

“Chemical supply chains rely on an interplay of different actors to deliver dangerous goods safely across the globe,” said Douglas Leech, chairman of the ICTA Transport & Security Committee.

Leech was quoted in a press release issued on August 18 by the International Cargo Handling Coordination Association (ICHCA), one of four global trade groups that issued the white paper, entitled “Safety Guidance for Dangerous Goods Storage and Handling Facilities.”

A pivotal element of the white paper is a warehouse checklist. A practical management tool, the checklist format is a significant addition to the other elements of the white paper.

Broken down into eight key functional areas of operation, the warehouse checklist’s 14 pages are designed to be comprehensive yet easily digestible as an everyday device for maintaining safety management vigilance.

“Chemical distributors cooperate closely with [logistics] and warehousing companies to make this happen. These guidelines will help them to jointly prevent incidents in their warehouses – keeping workers, neighbors, and the environment safe,” said Leech.

ICTA said that, aside from taking responsibility for their own operations, chemical distributors interact with their customers and suppliers to help them to work more safely and securely.

ICTA considers the white paper and the safety efforts that it represents as a step forward in guiding operators to improve their already high standards.

The safety guidance issuers were ICHCA, International Vessel Owners Dangerous Goods Association (IVODGA), National Cargo Bureau (NCB) and World Shipping Council (WSC). They are global trade organizations that drew on their combined expertise and experience in moving dangerous goods around the world to produce the guidance.

Richard Steele, ICHCA chief executive, welcomed the additional support from ICTA. “To make a real difference to the standards of safety in supply chains that feature hazardous materials, it is vital to reach all involved and create a critical mass of like-minded partners,” he said.

“The endorsement of our work by such an authoritative voice as ICTA is therefore decidedly welcome,” Steele said in the press release.

ICTA now joins a number of influential industry stakeholders that have endorsed the guidelines.

The early endorsers were Baltic and International Maritime Council (BIMCO), Bureau International des Containers (BIC), Container Owners Association (COA), Council on Safe Transportation of Hazardous Articles (COSTHA), Danish Shipping, International Chamber of Shipping (ICS), International Federation of Freight Forwarders Association (FIATA), International Group of P&I Clubs (IGP&I) and Through Transport Mutual Insurance Association Ltd (TT Club).

Both the “Dangerous Goods Warehousing White Paper” and the “Warehouse Checklist” are downloadable at  https://ichca.com/warehousing-safety-guidance

Established in 1952, ICHCA International is an independent, not-for-profit organization dedicated to improving the safety, productivity and efficiency of cargo handling and movement worldwide. It provides a focal point for informing, educating, lobbying and networking to improve knowledge and best practice across the cargo handling chain.

Source: https://www.portcalls.com/chemical-traders-back-guidance-moving-dangerous-goods/

 

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Dubai Misdemeanour Court gave five men, the vessel’s Indian captain and four Pakistanis owning and representing shipping, trading and cargo companies, suspended sentences of one month, and fined each man AED100,000 ($27,200), for their role in an explosion on 7 July last year that could be heard 25km away.

It was found that they failed to carry out the correct safety procedures, when a container with 640 barrels of organic peroxide type C was left on the quay in the hot sun, Abu Dhabi-based English-language daily The National reported. Other containers with similar contents were also apparently involved in the incident.

The hazardous containers arrived onboard the Ocean Trader at Dubai’s Jebel Ali Port on 27 June from China, and were stored over an 11-day period, causing the contents of the barrels to heat up and spontaneously combust as they were being moved onto a vessel for further transit. During the transfer of the containers to the vessel, gas leaked from the barrels into the container, resulting in an explosive mixture, the court heard.

“The court found that organic compounds were allowed to decompose, which was a direct result of negligence by the cargo shipping company,” the publication said. “Decomposition led to an exothermic reaction and pressure from fumes built up, according to expert testimony to the court.”

The 1993-built Ocean Trader is owned by Sash Shipping based in Dubai according to the Equasis database and the vessel’s current status as in casualty or repair.

A government statement issued on July 8, 2021, the day after the original incident, said that casualties were avoided due to the “quick action of Jebel Ali Port’s officials who ordered an evacuation of the vessel and the immediate area when a leakage and smoke was seen.”

“Following the fire, Dubai Civil Defense, Jebel Ali Port, Dubai Police and other relevant authorities also took immediate measures to ensure operations across the Port, including Terminal 1 where the incident took place, continued normally without any interruption,” it said.

Despite the original claim that there were no injuries in the explosion, The National said Dubai Public Prosecution charged the five men, as well as five companies, with wrongfully causing the incident and subsequent damage, as well as the injury of five men. The companies were also fined $27,200.

Jebel Ali ranked as the world’s 11th-biggest port in 2020, with throughput of 13.5m teu, according to the World Shipping Council, a figure that rose to 13.7m teu in 2021.

Source: Dubai Misdemeanour Court

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The barge would receive ammonia that has been transported by ship as a liquid and then regasify it for the gas to be sent to an onshore pipeline. NYK would provide the project management and decide on the base design; NSY would work on hull design and layout; ClassNK verification of safety and guidelines; and IHI on the discharging process.

“The parties will promote R&D with the aim of becoming a solution for introducing ammonia fuel mixed combustion to coal-fired power plants that domestic electric power companies are currently working on,” a joint statement said.

Meanwhile Singapore’s Jurong Port has come together with , Mitsubishi Heavy Industries Asia Pacific (MHI-AP) and JERA Asia in inking a Memorandum of Understanding (MoU) to jointly explore establishing a 100% ammonia direct combustion power plant on Jurong Island.

MoU involves conducting a study into 60MW class gas turbine combined cycle plant fueled by 100% ammonia is planned to be set up to produce carbon-neutral electricity, as well as provide ship fuel for bunkering.

“We feel this MOU could help pave the way for encouraging the adoption of hydrogen in Singapore through aggregation of demand across multiple sectors, mainly the power sector and the maritime sector, thereby addressing the chicken-and-egg conundrum of infrastructure versus demand needs for maritime and domestic power generation,” Ooi Boon Hoe, Chief Executive Officer, Jurong Port.

Jurong Port is also a member of the Castor Initiative which is aiming to develop ammonia-fuelled vessels by the middle of the decade. The other members of the initiative are MISC, Lloyd’s Register (LR), Samsung Heavy Industries (SHI), MAN Energy Solutions, the Maritime and Port Authority of Singapore (MPA), and Yara International.

MISC plans to invest in an ammonia-fuelled vessel as part of the initiative while Singapore’s MPA aims to develop the ability to fuel such a vessel in two – three years.

As Seatrade Maritime News reported last week Singapore shipyard group PaxOcean Engineering and bunker vessel operator Hong Lam Marine have inked a Memorandum of Understanding (MoU) with Bureau Veritas (BV) to develop an ammonia bunker tanker design.

Some in the industry, however, have expressed concern over the safety of handling ammonia as marine fuel and its toxicity if there is a spill.

Source: https://www.seatrade-maritime.com/sustainability-green-technology/ammonia-fuel-gains-momentum-asia

 

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will be installed on Hapag-Lloyd’s 7,500-teu-Ningbo Express in Dubai in September. The ship saves between 10 % and 13% fuel and CO² emissions, depending on the sailing condition.

In total, there are plans to equip at least 86 ships with the new and more efficient propellers. At the same time, 36 vessels will receive a new, flow-optimised bulbous bow.

During the scheduled dry dock stays, a resistance-reducing coat of anti-fouling paint will also to be applied to all vessels on the part of the exterior hull beneath the waterline. Most of the measures will be carried out by 2025 and make a significant contribution to helping the company to achieve its climate targets.

“We aim to be climate-neutral by 2045. To reach this goal, we have set ourselves the interim target of reducing the CO2 intensity of our own ships by 30% already by 2030. To do so, we are investing in new future-proof ships while simultaneously focusing on making our existing fleet fit for the future. The fleet upgrade programme will boost the energy efficiency of the entire fleet,” said Dr. Maximilian Rothkopf, COO of Hapag-Lloyd.

The investment volume of the fleet upgrade programme will be in the three-digit million range. Hapag-Lloyd also placed a  $1.98bn order for 12 LNG-powered ships placed two years ago.

Source: https://www.seatrade-maritime.com/containers/hapag-lloyd-launches-fleet-upgrade-programme

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022


The heatwave experienced in parts of the world has seen temperatures of between 40 – 42C recently – and according to an article in TradeWinds, ‘Shipyard work has become nearly impossible in the sweltering temperatures and workers have had to take unscheduled breaks’ meaning that production has been delayed.

 

Many yards are therefore having to declare force majeure due to extreme weather and, whilst owners may push back depending on their particular wording, it is hard to see what the yards could reasonably do to alleviate the current conditions.

Missing the delivery date

Most shipbuilding contracts set an agreed “delivery date”, with liquidated damages payable to the buyer (via reduced purchase price) in case the yard misses the delivery date. They tend to contain a system for calculating a long stop date, on which the buyer gets a right to cancel the contract completely if the ship has not been delivered. Most shipbuilding contracts also contain a mechanism by which the yard can push back the contractual delivery date in case of certain types of delay. Typically, there will be “permissible delays”, which tend to include “force-majeure” type delays. Usually, a yard will be given quite a lot of lenience in being able to push back the contractual delivery date due to “permissible delays”, because these are seen as relatively excusable delays, as long as there is compliance with contractual provisions about giving notice of delay and mitigation.

Contracts typically also permit extensions for other delays, sometimes called “non-permissible” delays, but only to a limited extent, and again usually only if notice is given.

“Acts of God” or “weather conditions not included in normal planning”

The term “Act of God” is frequently used as a catch-all provision in force majeure clauses, such as Article VIII of the SAJ Form of shipbuilding contract (“the SAJ Form”). It has been defined in English law as “such an operation of the forces of nature as reasonable foresight and ability could not foresee or reasonably provide against”. If the yard wants an extension of the delivery date based on an “Act of God”, it must prove not only the impact of a natural phenomenon on the expected delivery date, but also that it could not reasonably have been avoided.

The extent to which mere extreme weather, as opposed to specified meteorological events such as storms or lighting strikes, can constitute an “Act of God” has not been finally settled by the English courts. But it seems likely that weather can constitute an “Act of God” if it is so extreme, judged in light of the usual conditions at the place of contractual performance, that the yard could not reasonably have been expected to take steps in advance to avoid it.

There is also no clear ruling on whether extreme heatwaves would be encompassed by the clause “flood, typhoons, hurricanes, storms or other weather conditions not included in normal planning” in Article VIII of the commonly-used SAJ Form”. Therefore whether or not a heatwave would count as a “force majeure” event under this clause will be a matter of fact and degree. The fact that it is relatively common for Chinese shipbuilding contracts to be amended expressly to include as potential “force majeure” delay any periods of time during which external temperatures at the shipyard exceed 35° may impact the interpretation of Chinese shipbuilding contracts, if those clear words have been left out.

Strikes at the yard

If workers actually down tools due to extreme weather, several types of shipbuilding contracts list strikes at the yard as a type of ”permissible delay” alongside other typical ”force majeure” events. For example, Article VIII of the SAJ form provides for delays due to strikes to count as ”permissible delays” if “at any time before the actual delivery, either the construction of the vessel or any performance required as a prerequisite of delivery of the vessel is delayed due to…strikes, lockouts or other labour disturbances”.

It will usually be open to the buyer to try to argue that the relevant delaying event did not trigger a “permissible delay” under the shipbuilding contract, because the yard has acted unreasonably. This is because English law usually requires a person seeking to rely on a “force majeure” clause to show they took reasonable steps in advance to avoid the impact of a “force majeure” event and to mitigate its effect.

For example, in a strike situation, the buyer could argue the yard has been unreasonable in its dealings with its workforce i.e. the strike was not in fact outside the yard’s control. The courts have been sympathetic to arguments like that. E.g. in Channel Island Ferries Ltd v. Sealink Ltd (1987) the yard was entitled to rely on a force majeure exception of strikes only if there was nothing it could reasonably have done to avoid the strike or to mitigate its consequences. For this reason, the type of strikes capable of generating force majeure delays and qualifying as “permissible delays” under shipbuilding contracts will tend to be those affecting the whole or a substantial part of the shipbuilding industry in the country of construction, rather than just the particular yard in question.

Hints and Tips

Yards have often come off badly before the courts in the case of delays. They would do well, therefore, to document and claim delays arising from the current extreme conditions, including:

Claim for permissible delays as they arise, and make sure records of delays supported by critical path analysis are kept.

Comply with all formal notification provisions under the contract.

Keep a record of how the conditions have impacted work at other yards, and even how they have impacted other industries, in the region.

Keep a clear record of what has been done to try to overcome delays, in an effort to demonstrate that the yard has acted reasonably.
Source: Reed Smith Global Solutions By Reed Smith shipping lawyers Thor Maalouf, Sally-Ann Underhill and Lianjun Li

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Shipbuilding export volume was 17.95m dwt, dropping 20.8%; newly-received export shipbuilding orders were 23.59m dwt,declining 41.5%; export orders on hand were 92.15m dwt, growing 16.4%, accounting for 86.1%, 91.7% and 88.9% of national volume, respectively.

China’s shipbuilding output, newly received orders and orders on hand accounted for 44.4%, 51.1% and 48.1% in global shipbuilding market.

During the first seven months, 15 main ship repair yards had repaired 1,859 vessels, declined 0.8% year-on-year.

Affected by high temperatures this summer, production capacity at some yards in South China was reduced comparing with the same period of last year, however, the profitability of major shipyards improved. 75 major Chinese yards’ profits were RMB1.67bn for the first seven months, soared 94.2% year-on-year.

Source: https://www.seatrade-maritime.com/shipyards/newbuild-orders-chinese-yards-plunge-431-first-seven-months

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The maritime industry contributes nearly 940 million tons of CO2 emissions annually which accounts for nearly 2.5% of the world’s total CO2 emissions (Source: UK Research and Innovation)

 

But in less than 120 days from now, the IMO’s two new regulations – Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII) – will apply to existing ships of 400 gt and above.

IMO’s intention is for these new regulations is to reduce the total greenhouse gas emissions from shipping operations by 50% by 2050 (against its 2008 emission levels) and carbon intensity of all ships by 40% by 2030.

The EEXI regulation is one of the most significant measures by the IMO to promote more environmentally friendly technologies and reduce the shipping industry’s carbon footprint. For CII, the annual rating ranging from A to E will be issued based on ratio of the total mass of CO2 emitted to the total transport work undertaken in each calendar year and if the rating is below ‘C’ corrective action must be taken immediately.

All of which raises interesting questions about the options available to ships of a certain age – let’s call them vintage assets. One engine manufacturer has warned that more than 80% of bulk carriers and container ships will be in the lowest C,D and E CII categories by 2030 if no action is taken, damaging their commercial viability.

Is scrapping the only commercially feasible option for vintage assets which fall foul of the new regulations? Taking a holistic approach, looking at the vessel’s full life cycle assessment, is there a case for extending the life of older vessels, rather than consigning them to the scrap heap?

If the purpose of EEXI and CII is to save the environment, phasing out vintage assets could be unintentionally counter-productive and lead to greater environmental damage.

How so?
Analysis clearly shows that newbuildings are responsible for significant energy consumption/GHG emissions when taking into account the transportation and handling of the raw materials used in steel production.

In their academic paper on “Assessing Environmental Impacts of Ships from a Life Cycle Perspective” joint authors Stefanos Chatzinkolaou and Nikolaos P. Ventikos state: “The Life Cycle Assessment (LCA) of building, operation and recycling is studied for a panamax tanker and impact on human health (climate change) and ecosystem quality is estimated. The results show that the “ship building has 40% impact and steel production process under the scope of ship building alone responsible for nearly 90% of the total CO2 emissions.”

For a universal approach – also now referred to as the Circular Economy – a life cycle assessment/material balance analysis of the ship’s operational life must also be evaluated.

Circular economies preserve value in the form of energy, labour, and materials with the maximum value extracted from resources before they become waste. It is a framework to tackle not only climate change but also biodiversity loss and pollution.

There are three simple ways shipping can become more Circular.

The first is to consume less – which ensures better use of resources. The second is to consume better. The third is to create systemic change.
And change is already happening. There are other methods to reduce EEXI including retrofitting clean technologies, waste heat recovery systems, air lubrication technology, wind-assisted propulsion, to name a few.

Clearly, questions remain over the commercial viability of retrofitting expensive energy-saving equipment on older vessels. It is clear from the evidence that repairing and extending the life of (mid-sized, vintage) ships is more environmentally friendly than building a new one. The sooner this ‘uncomfortable truth’ is accepted, the better.
Source: GMS https://www.gmsinc.net/article/extending-the-life-of-a-ship-bad-for-the-environment?utm_source=social-media&utm_medium=article&utm_campaign=social-media-article-extending-life-of-ship

 

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