Following a necessary break to our live events, it was a pleasure to welcome the offshore support vessel (OSV) community back live to London in November 2021 and we are delighted to follow up on that success with OSJ 2022 on 15-16 June 2022.

 

Those in the offshore support vessel industry remain cautious but are optimistic for the future of the sector. There is less oversupply in the market, the oil price has improved, E&P activity is picking up and of course there are opportunities to be found in alternative sectors, mainly offshore wind.

 

Our annual programme continues to follow the market closely and will provide a platform for offshore professionals to discuss and debate key drivers influencing the business, plans for driving growth and opportunities in the renewables sector. Challenges sit hand-in-hand with opportunities and one such challenge is what the industry can do to address the shortage of seafarers and how it can retain the existing talent pool.

 

Industry experts will share their knowledge and experiences, review the latest industry data and market trends and drivers. OSV owners will demonstrate the benefits of creating value for their clients through integrated logistics and offshore services. In addition, leading experts will assess innovative vessel technologies, newbuilds and retrofitting to meet zero-emissions targets.

 


The wilderness years of the Quadrilateral Security Dialogue (the Quad), after its initial inception during the 2004 Asian tsunami, are over. The latest summit in Tokyo reaffirmed its mission as a ‘force for good’ while promising a broad array of Indo-Pacific cyber security, maritime awareness, pandemic recovery, space, climate change and infrastructure initiatives.

At the recent IISS Shangri-La Dialogue held in Singapore, Japanese Prime Minister Fumio Kishida and US Defence Secretary Lloyd Austin emphasised the importance of the Quad in promoting a ‘free and open Indo-Pacific’ and the need to cooperate with ASEAN to achieve these goals. But the group will need to consider the region’s needs to get support for its vision.

Meeting for their fourth leaders’ summit in just over a year, the Quad appears to have finally turned a corner with more coherent and cohesive language directed at upholding the so-called rules-based order. Compared with previous joint statements, the May 2022 Tokyo summit was replete with China-directed ‘code’ — the settlement of disputes without the threat of use of force, no ‘unilateral attempt to change the status quo’ and a regional order free from all forms of coercion. Quad members also advocated the ‘Free and Open’ Indo-Pacific (FOIP) strategy.

The Quad’s forward momentum is driven in part by China’s continued assertiveness. Having rejected the 2016 arbitral tribunal ruling on the South China Sea, China has upped the pace of its military modernisation and continued its terraforming enterprise in the South China Sea. China has also deployed the same aggressive tactics along the Line of Actual Control — the boundary separating Chinese-controlled territory from Indian-controlled territory in the Chinese–Indian border dispute.

There is now premature talk of an ‘Asian NATO’ which threatens China as evidenced by China’s questioning about the Quad and AUKUS at the recent Shangri-La Dialogue. Within the region, the idea is dead-on-arrival based on the failure of SEATO, a defunct international organisation for collective defence in Southeast Asia signed in 1954.

In a public show that China is seeking to break Washington’s containment strategy, Chinese Foreign Minister Wang Yi recently completed a ten-nation tour of the Pacific. His tour included the Solomon Islands, where China has reportedly signed a security cooperation pact enabling security personnel and PLA Navy ships to visit the island.

If the United States and its Quad partners play their cards right, there are several ways to secure a regional order framed by Quad principles. Although many states are wary of formally joining any Quad-related framework that smacks of anti-China sentiment, they can ‘plug and play’ into initiatives that tangibly benefit their national interests. An open ‘plug and play’ approach to Quad-related activities may promote regional acceptance of the organisation’s principles.

The Quad should involve itself in the provision of public goods like climate cooperation and COVID-19 vaccines — both of which have earned it brownie points in Southeast Asia. ASEAN had initial misgivings about the Quad, but the tangible benefits of pandemic and environmental assistance may be moving the needle. ASEAN gave an unprecedented nod to the Quad by acknowledging the Quad Vaccine Partnership in its US–ASEAN Joint Vision Statement.

The Quad should do more to boost the maritime security capabilities of Southeast Asian states by providing more coast guard ships to those challenged by Chinese maritime entities. Coast guards are less threatening than navy ships in the disputed South China Sea. The United States has already provided Vietnam with two coast guard cutters, while also promising ASEAN US$60 million to expand maritime security cooperation with the US Coast Guard.

Enter the Indo-Pacific Maritime Domain Awareness (IPMDA) initiative announced on 24 May 2022. The satellite-based initiative will help Indo-Pacific countries track illegal fishing and maritime militias by giving them readily available maritime information across the Indian Ocean, Southeast Asia and the Pacific islands. Information is power for regional states dealing with altercations with Chinese fishing trawlers and maritime militia in the South China Sea.

The Quad should also work with like-minded regional navies to keep sea lanes of communication open. While some regional navies are reticent to work with the Quad for fear of riling China, they are more open to doing so if it enhances their national interests. A two-week joint exercise between the armed forces of Indonesia and the United States, called Garuda Shield, is a good example of this.

In August 2022, Indonesia and United States will hold military exercises near the Natuna Islands, where Indonesia’s exclusive economic zone overlaps with China’s territorial claims in the South China Sea. Quad members Australia and Japan, as well as Malaysia, Singapore and the United Kingdom, are also reported to be participating in the exercises.

The bottom line is that no country would be willing to be corralled into a formal network under the FOIP and Quad banner for fear of riling China unnecessarily. But many regional countries are willing to support shared principles — such as freedom of navigation, not resorting to the threat or use of force and the rule of law — if the erosion of these principles affects their survival.

Instead of working outside of the regional institutional framework, success for the Quad lies in securing ASEAN’s cooperation first and foremost, after which other Asian partners will follow. To gain traction, the Quad should invert former US president John F Kennedy’s famous aphorism — ask not what regional countries can do for the Quad, ask what the Quad can do for regional countries.


Despite that COVID-19 continues to attracting a lot of our attention and making our lives difficult, 2022 is going to be a year of focus on the environment. Following COP26, the message is clear; we need to act now against the climate change and for the maritime industry, IMO has already paved the way with the enforcement of strict environmental rules; nonetheless, maritime safety will always be a key concern for the industry.

Let’s have a look at what to expect within this new year from a regulatory perspective

First reporting period for UK MRV

As a result of Brexit, EU MRV no longer applies to ships visiting UK ports. More specifically, the UK Government, in last September, released guidance on the application of its own scheme for monitoring, reporting and verifying (UK MRV) carbon dioxide (CO2) emissions. Ship operators should begin collecting emissions data for their ships under the UK MRV regime from 1 January 2022.

Ships over 5,000 gross tonnes, transporting cargo and/or passengers for commercial purposes to and from UK ports, between UK ports or within UK ports (including while at berth), are subject to the UK MRV regime. The same exceptions apply to vessels under the UK MRV regime (e.g. for warships), that apply under the EU MRV regime. Ship operators must have in place an assessed monitoring plan before data collection begins. The assessment of the monitoring plan and the verification of the annual emission report for each ship needs to be done by an accredited verifier. By 30 April following each reporting period, a verified emissions report must be submitted to the UK Administration covering the previous reporting period. By 30 June following each reporting period, a valid Document of Compliance (DoC) must be carried on board each vessel covering the previous reporting period.

SEEMP revision to include EEXI and CDI within 2022

During MEPC 76 in June 2021, the IMO adopted measures that will require all ships to calculate their Energy Efficiency Existing Ship Index (EEXI) following technical means to improve their energy efficiency and to establish their annual operational carbon intensity indicator (CII) and CII rating. The requirements will enter into force on 1st of January 2023, but until then, ship operators need to revise their Ship Energy Efficiency Management Plans (SEEMP) accordingly. In particular, the amendments to MARPOL Annex VI (adopted in a consolidated revised Annex VI) are expected to enter into force on 1 November 2022, with the requirements for EEXI and CII certification coming into effect from 1 January 2023. This means that the first annual reporting on carbon intensity will be completed in 2023, with the first rating given in 2024, IMO mentions.

A new era in SIRE inspection program

The new SIRE 2.0 by OCIMF is expected to become operational within 2022 and for the first time will take into consideration the human element to ensure inspectors are sensitive to all pressures onboard. It will feature the following four key areas of focus:

  1. Accuracy: Facilitating an accurate description of how key safety and operational risks are managed and verified onboard a vessel.
  2. Capability: Training and developing inspectors who are of the highest quality, consistency and integrity.
  3. Reliability: Strengthening vessel inspections and reducing the number of repeat inspections required.
  4. Adaptability: More rapid response to human factors, industry changes, regulatory framework updates and technology advances.

In future SIRE 2.0 will encompass all of OCIMF’s inspection programmes. This includes OCIMF’s Barge Inspection Report programme (BIRE) and Offshore Vessel Inspection Database (OVID). However, in an exclusive interview, Mr David Savage, who was responsible for the development and introduction of the SIRE Inspector Accreditation Programme back in 2000, said that the additional workload that comes with SIRE2 will impact both ship and shore staff, at least during the start-up months until familiarity and routines are established.

PSCOs to focus on STCW from 1 September to 30 November

This year, the planned Concentrated Inspections Campaigns across all MoUs will focus on STCW. In particular, for three months, PSC Officers will check topics relevant with STCW requirements to ensure full compliance.

In the past, a focused CIC took place in 2014 by Paris and Tokyo MoUs along with others, with the purpose to establish that watchkeeping personnel are meeting the requirements regarding hours of rest as per STCW 78 as amended (including the Manila amendments). For this year’s CIC, it remains for the questionnaire to be issued within summer in order to view the focus items of control.

Focused Inspection Campaign on planned maintenance in Australia

AMSA announced that a Focused Inspection Campaign (FIC) on Planned Maintenance will be conducted from 15 January 2022 to 30 March 2022. As such, AMSA surveyors will undertake the FIC in conjunction with a normal port or flag State control inspection and any port State control deficiencies will be reported to regional port State control databases.

The purpose of the FIC is to determine the level of compliance with the maintenance requirements of the International Conventions. AMSA PSCOs will be using a specific checklist when inspecting ships as part of the planned maintenance FIC and therefore, ship managers need to be prepared accordingly. Planned maintenance is an important aspect when considering seaworthiness.

Amendments to MARPOL Annex VI : Procedures for FO Sampling

Annex VI has been amended to introduce definitions distinguishing between “in-use” and “on board” fuel oil samples taken from a vessel. The entirety of Appendix VI of MARPOL Annex VI has also been revised to simplify the verification procedure for the “MARPOL delivered fuel oil sample” and to add verification procedures for the “in-use sample” and the “on board sample”, effective from 1st of April, 2022. This regulatory update applies to all ships ≥400gt and keel laid date ≥01/04/2022.

Amendments to regulations 14 and 18 of MARPOL Annex VI regarding sulphur content

Effective from 1st of April, 2022, new paragraphs 8 and 9 are added for ‘In-use and on board fuel oil sampling and testing’ and paragraphs 10 to 13 for ‘In-use fuel oil sampling point’ under regulation 14.

The verification procedure part 2 is to be followed in the new Verification procedures of Appendix VI of MARPOL Annex VI. For the test results, 95% confidence will be allowed (limit X + 0.59R) and the acceptable sulphur limits are extended to 0.11% and 0.53% for 0.10% and 0.5% respectively. Paragraph 8.2 has been replaced under regulation 18.

Amendments to the BWM Convention

To clarify the conduct of statutory surveys for Ballast Water Management Systems (BWMS), MEPC 75 adopted the amendments proposed to BWM regarding commissioning testing of ballast water management systems (Regulation E-1) and the form of the International Ballast Water Management Certificate (Appendix I), effective from 1st of June 2022.

Consequently, revised Guidance for the commissioning testing of ballast water management systems is available as BWM.2/Circ.70/Rev.1. The commissioning testing is to be conducted by an accredited entity which is independent from the BWMS manufacturer or supplier and one that is approved by the flag Administration or the RO working on its behalf.

Amendments to SOLAS VII regarding IMDG Code

In addition to the periodic review of carriage requirements for new and existing substances, these amendments introduce a new handling code for medical waste and other updated guidance, effective from June, 2022.

Amendments to MARPOL Annex VI regarding EEDI Regulations

Annex has been amended to mandate the reporting of required and attained EEDI values to the IMO. Tables providing EEDI reduction factors have been replaced. These amendments will come into force from November, 2022.

 

Source: skanregistry


Prices for dry bulk carriers could soon rally, following hot on the heels of the latest rally of the dry bulk market freight rates. Despite last week’s correction, shipbrokers appear to be quite optimistic regarding a renewed rebound in asset prices as well.

 

In its latest weekly report, shipbroker Allied Shipbroking said that “the final quarter of the year started “with a bang” for the bigger size segment, with the benchmark TCA figure reaching new highs, while reaching close to its 2009 peak. A hefty trajectory for a segment that has been the year-to-date underperformer in the dry bulk market. Can this trigger another round of increase in asset prices as well? Using asset prices for 5-year old vessels as a benchmark, current price levels seem to be on the low side. This point is further enhanced, given the roughly US$ 10mill price gap with the 2009 levels. The question is as to whether 2021 is at a discount or was 2009 an exaggeration? It is possible that the answer lies somewhere in-between”.

Source: Allied Shipbroking

According to Allied’s Research Analyst, Mr. Thomas Chasapis, “technical analysis will point towards a bullish direction for asset prices, attuned with the overall sentiment. However, we shouldn’t neglect market “bias” which tends to usually accumulate from most recent memory of market performance.

 

SOURCE READ THE FULL ARTICLE

Dry Bulk Ships’ Values Set to Rally


President Joe Biden intends to nominate Ann Phillips to serve as Administrator of the U.S. Maritime Administration (MARAD) at the Department of Transportation (DOT), the White House announced Thursday. The position has been vacant since Mark Buzby resigned from the role in the wake of the insurrection at the U.S. Capitol in January.

If confirmed, Phillips, a retired U.S. Navy rear admiral and currently the first Special Assistant to the Governor of Virginia for Coastal Adaptation and Protection, would take over as head of the DOT’s maritime agency amid significant shipping and supply chain disruption.

In the White House’s announcement, Phillips is described as “a leader in the field of coastal resilience and climate impact on national security at the regional, national and international level”. She is currently working to address rising waters and climate impact to federal, maritime and other critical coastal infrastructure assets across Virginia.

Phillips previously served nearly 31 years on active duty in the U.S. Navy, retiring as a Rear Admiral. Her final Flag command was as Commander, Expeditionary Strike Group TWO, including 14 ships and 10 subordinate commands – all the Amphibious Expeditionary Forces on the East Coast of the United States. Earlier she served on the Chief of Naval Operations’ Staff as Deputy Director and then Director of Surface Warfare Division, had the honor to commission and command USS Mustin (DDG 89), and to command Destroyer Squadron 28.

MARAD promotes the use of waterborne transportation and its integration with other segments of the transportation system, and the viability of the U.S. merchant marine. The agency works in many areas involving ships and shipping, shipbuilding, port operations, vessel operations, national security, environment and safety, and it is charged with maintaining the health of the merchant marine. MARAD also maintains the National Defense Reserve Fleet (NDRF) as a ready source of ships for use during national emergencies and logistically supporting the military when needed.

 

SOURCE READ THE FULL ARTICLE

https://www.marinelink.com/news/biden-appoints-ann-phillips-marad-491359


A perennial complaint about shipping stocks is that there are way too many of them and they’re way too small. If only there were just a handful of large-cap consolidated shipowners in each category — tankers, dry bulk, containers, gas — not a hodgepodge of micro-caps.

The good news for ‘bigger and fewer’ proponents is that the number of shipping stocks is indeed shrinking. There has been only one shipping IPO in the last six years compared to numerous delistings.

The bad news is that the remaining public players are not necessarily bigger on average than before. Mergers between public companies that create larger fleets are being outpaced by take-private deals that cull other larger-cap public owners from the mix.

Speakers at this week’s annual Capital Link New York Maritime Forum addressed what’s driving the take-private wave and prospects for shipping IPOs.

M&A
Consolidation is one way to reduce the number of shipping stocks.

Container-ship and bulker owner Navios Partners (NYSE: NMM) completed its takeover of related-party tanker owner Navios Acquisition (NYSE: NNA) on Friday. This followed earlier intra-group takeovers of Navios Containers by Navios Partners in April and Navios Midstream by Navios Acquisition in December 2018. The Navios family circle has now shrunk from five to two.

In addition, tanker owner International Seaways (NYSE: INSW) completed its purchase of Diamond S Shipping in July. Recent M&A chatter has turned to Euronav (NYSE: EURN), given the purchase of almost 10% of its shares by shipping magnate John Fredriksen, founder of Frontline (NYSE: FRO).

Take-private transactions
Take-private deals are far more prevalent than takeovers by public shipping companies.

The first big public departure was DryShips, taken private by founder George Economou in August 2019. Such transactions surged this year.

Teekay LNG (NYSE: TGP) announced on Oct. 4 that it will be acquired by infrastructure fund Stonepeak for $6.2 billion (including equity and debt obligations). GasLog Ltd. was bought by a BlackRock infrastructure fund in June and delisted. Mixed-fleet owner Seacor was taken private by American Industrial Partners in April. Container-equipment lessor CAI International was bought by Japan’s Mitsubishi HC Capital last month.

The trend goes beyond U.S.-listed shipping stocks. Oslo-listed Hoegh LNG Ltd. was acquired and taken private by the Hoegh family and a Morgan Stanley infrastructure fund in June. Oslo-listed Ocean Yield, which owns a diversified fleet, is in the process of being taken over by private equity giant KKR.

Other shipping stock departures
Most public shipping departures in the previous decade were due to business failures. There have been no recent shipping bankruptcies because balance sheets have been strengthened by prior restructurings, most segments are enjoying strong rates, and owners in the one segment that isn’t — tankers — have cash cushions from 2020 rate spikes.

Still, there are other ways to lose shipping names besides M&A, privatizations and insolvencies.

Golar LNG Partners was sold to New Fortress Energy (NYSE: NFE) in April; while the buyer is publicly listed, the stock is outside of the shipping space.

Scorpio Bulkers announced last year that it would sell its entire dry bulk fleet and go into the wind-farm installation business, renaming itself Eneti (NYSE: NETI). It sold its final bulkers in July.

 

SOURCE READ THE FULL ARTICLE

As shipping prospects rise, field of shipping stocks shrinks


The U.S. Coast Guard boarded a container ship on Saturday in the Port of Long Beach that dragged its anchor close to a subsea pipeline found to be the source of an oil spill off Orange County, California, it said in a press release.

The spill released some 3,000 barrels (126,000 gallons) of crude oil into the Pacific Ocean, killing wildlife, blackening the coastline and forcing officials to close beaches south of Los Angeles.

In its statement, the Coast Guard said an investigation had determined that the MSC DANIT was involved in the anchor-dragging incident “during a heavy weather event” that impacted Long Beach and Los Angeles ports in January.

As a result, it said, MSC Mediterranean Shipping Company S.A., which operates the vessel, and Dordellas Finance Corporation, the ship’s owner, have been designated by the Coast Guard as parties of interest in the investigation.

The designation allows the companies to be represented by counsel, examine and cross-examine witnesses, and call witnesses who are relevant to the investigation, the Coast Guard said.

MSC Mediterranean Shipping Company did not immediately respond to a request for comment. The Dordellas Finance Corporation could not immediately be reached for comment.

The Coast Guard said the investigation was ongoing and that “multiple pipeline scenarios” as well as additional vessels of interest continue to be investigated.

Amplify Energy, which owns the pipeline, has said it was “pulled like a bowstring” about 105 feet (32 meters) from where it should have been.

(Reporting by Sheila Dang in Dallas; Editing by Daniel Wallis)


 

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https://www.marinelink.com/news/us-coast-guard-boards-containership-491374


Offshore wind turbine maker will deliver its giant 15MW wind turbines for Equinor and BP joint venture’s offshore wind farms in New York.

Vestas said Monday that, Empire Offshore Wind, a joint venture between Equinor and BP,  had named it as the preferred turbine supplier for the 2.1 GW Empire Wind 1 and Empire Wind 2 offshore wind projects in New York, USA.

“This is one of the largest preferred supplier agreements to be announced in the USA,” Vestas said.

Vestas will provide 138 V236-15.0 MW turbines for Empire Wind 1 and 2, located 15-30 miles off the coast of Long Island. According to Equinor, each rotation of a 15MW turbine will be capable of powering a New York home for about 1.5 days.

Laura Beane, President of Vestas North America said: “We are honored to partner with Equinor and BP as preferred supplier for the Empire wind projects and provide our V236-15.0 MW turbine to help New York achieve its ambitious offshore wind energy goals. To be part of a landmark project like Empire Wind 1 and 2 is a testament to the hard work of Vestas colleagues across the world dedicated to developing offshore technology capable of delivering, reliable, resilient, and sustainable wind energy to communities around the world.”

The tower sections for Empire Wind 1 and 2 are planned to be sourced from the Marmen/Welcon plant, which is being developed in Port of Albany. For staging of turbine components, Vestas will utilize the upgraded port at South Brooklyn Marine Terminal, developing a local, New York-based, supply chain to provide a comprehensive set of services in the staging, pre-assembly and installation activities, Vestas said.

Vestas also said it planned to establish a New York-based service organization providing high-quality, local employment opportunities, to service the wind farms, once online.

 

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https://www.marinelink.com/news/equinor-bp-jv-picks-vestas-giant-mw-491375


Offshore wind installation company Seaway 7 said Monday there had been an incident during the construction of its Alfa Lift offshore wind foundation installation vessel, currently being built in China at China Merchants Heavy Industry (CMHI) shipyard in Jiangsu.

“Today, we have been informed of an incident involving the folding A-frame on the main crane of Alfa Lift, currently under construction in China.  No personnel have been injured and the unplanned movement of the folding A-frame is currently being investigated,” Seaway 7 said.

“The incident is a matter between the shipyard and crane vendor, and it is too early to indicate if this will have an impact on the delivery schedule of the vessel,” said the company, created recently through a merger between Subsea 7’s subsidiary Seaway 7 and Offshore Heavy Transport (OHT). No further details were shared.

OHT, now part of Seaway 7, ordered the Alfa Lift vessel, capable of installing XXL wind turbine foundations, on speculation in 2018, and has since secured contracts to install foundations at the world’s largest wind farm – the Dogger Bank in the UK.Alfa Lift render Credit: Liebherr (File Image)

According to available information, the A-frame mentioned by Seaway 7 in the incident report has been supplied by Liebherr. Liebherr is also responsible for the delivery of the HLC 150000 main crane.

 

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https://www.marinelink.com/news/incident-reported-during-construction-491377


The decades long mystery of a missing U.S. Coast Guard Ship has finally been solved.

U.S. Revenue Cutter (USRC) Bear, lost at sea in 1963, has been found on the seafloor about 90 miles south of Cape Sable, Nova Scotia, NOAA Rear Adm. Nancy Hann announced Thursday.

Widely considered one of the most historically significant ships in American history, Bear was purchased by the U.S. government and first put into service by the U.S. Navy as part of the rescue fleet for the Greely Expedition to the Arctic in 1884, attaining legendary status for the rescue of the expedition’s few survivors. The Bear was transferred from the Treasury Department for service in the Arctic in 1885 as a Revenue Cutter, and for 41 years, patrolled the Arctic, saving lives and dispensing justice in the remote and challenging region.

Many years later, and after several roles including patrol missions for the U.S. Navy during World War II, Bear was ultimately sold to an entrepreneur who planned to turn it into a museum and restaurant on the Philadelphia waterfront, but the famed ship sunk while being towed to its new berth.

Sinking of the U.S. Revenue Cutter Bear, dated March 19, 1963. (Image: USCG History Program fact sheet, “Bear, 1885.”)

 

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https://www.marinelink.com/news/wreck-usrc-bear-found-off-nova-scotia-491354


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