BIMCO is on a mission to revolutionize the way we do shipping. The launch of their campaign to accelerate electronic bills of lading is a game changer! #eBillsOfLading #ShippingInnovation
BIMCO is on a mission to revolutionize the way we do shipping. The launch of their campaign to accelerate electronic bills of lading is a game changer! #eBillsOfLading #ShippingInnovation
A newly set-up BIMCO drafting team involving a cross-section of shipowners, charterers, financing and leasing institutions and private practice lawyers from Asia, Europe and the US began work this week to develop a standard letter of quiet enjoyment (LQE) for use in long term charter and leasing structure financings.
There is currently no standard form of LQE available in the market and while LQEs have long been a feature of ship financing transactions, the lack of a standard form means that the wording of an LQE may often vary significantly from one transaction to another. In most cases, an LQE will be beneficial to all parties involved, namely by preserving the charterers’ uninterrupted use and enjoyment of a ship – and thereby ensuring a regular income for the owner – and an opportunity for the lenders to secure rights of their own, e.g. in relation to appointing a replacement owner.
“By bringing together all the relevant stakeholders, we are planning to develop a balanced standard that can be used in various types of structures, as always with the possibility of the parties tailoring it to their specific needs,” says Catherine Smith of Hong Kong based Wah Kwong, who is chairing the drafting team.
The LQE will complement BIMCO’s existing suite of ship financing and leasing standards, SHIPTERM and SHIPTERM S (for bilateral and syndicated term loan facilities) and SHIPLEASE (for ship sale and leasebacks). A standard Shipmanagers’ Letter of Undertaking is also available from BIMCO.
At its first meeting on 7-8 September, the drafting team in charge of the project discussed the scope and objectives of the project. The overall aim is to develop a standard that is workable both for time and bareboat charter contexts as well as leasing. Several versions might be developed, namely in the form of unilateral and multilateral party LQEs. The standard will not cater for more complex project financings and similar structures as these will typically be very deal specific and therefore have to be tailormade.
The team also includes Sarah Jane Thompson of BHP in Singapore, Gitte Vannus Kragelund of Danish Ship Finance in Copenhagen, Jay Shi of CMB Financial Leasing Co., Ltd. in Shanghai, Olga Petrovic of Linklaters in London and Gerald Morrisey of Holland & Knight in New York.
The drafting team will continue its work on 24-25 October.
Maritime hydrogen fuel cell specialist Zero Emission Industries (ZEI) has announced the first close of its Series A funding round. The round is led by Chevron New Energies with additional investment from Crowley.
ZEI is the designer and developer of the first-of-its-kind maritime hydrogen and fuel cell system used in the Sea Change, the world’s first gaseous hydrogen fuel cell powered passenger ferry, as well as the vessel’s unique fueling system that allows it to be fueled directly from a hydrogen truck
The new funds are expected to enable ZEI to roll out its next generation fully integrated marine power system and scale quickly to meet the demand within the maritime industry for zero emission propulsion solutions.
“We believe hydrogen is the best path to energy security and decarbonization of the maritime industry. Chevron and Crowley bring a wealth of global experience and an ability to scale deployment across the marine market. We’re excited to leverage this partnership with our industry-leading technology to achieve exponential growth of the marine hydrogen market,” said ZEI CEO Dr. Joseph Pratt.
ZEI is led by Pratt, who has built a team of hydrogen and marine experts with deep industry knowledge and expertise in the design, development, and deployment of hydrogen fuel cell power systems and other critical hydrogen technology. ZEI produces marine-specific turn-key fuel cell power and hydrogen storage systems that deliver superior performance.
“Our intelligent, connected, reliable power systems are the only ones on the market built from the ground-up specifically to meet the rigorous demands of the marine community. Designed to be as easy to install and operate as a marine diesel engine, we are working to build solutions that truly enable the maritime industry to decarbonize without negatively impacting their operations,” said ZEI Executive VP John Motlow.
ZEI says that the investments from Chevron and Crowley create an integrated value chain from hydrogen production to power systems to vessels. It adds that the collaboration will drive value for end users and partners alike through simplified and cost effective fueling and power solutions made specifically for maritime.
“As the maritime industry focuses on lower carbon opportunities, hydrogen is well-suited to address these, and we are excited to collaborate with ZEI to advance this potential,” said Austin Knight, vice president of hydrogen for Chevron New Energies. “Chevron believes in the value of partnering to develop hydrogen solutions that have the potential to scale and support a lower carbon world, and this is a step in that direction.”
Chevron New Energies launched in 2021 to focus on establishing lower carbon businesses in CCUS, hydrogen, renewable fuels and products, offsets, and other emerging areas.
“Investing in and developing innovative, clean energy solutions such as hydrogen is critical to reaching the maritime industry’s decarbonization goals. Crowley can only reach net-zero emissions with collaboration that produces new ideas by partners and stakeholders,” said Tom Crowley, the company’s chairman and CEO. “Working with Chevron and ZEI is an opportunity to help lead the shipping and logistics industry – and the communities we serve – to reach a more sustainable future.”
Carnival Celebration, the second Excel-class cruise vessel belonging to the Carnival Cruise Line, has embarked on the first set of sea trials. It is the sister ship to Mardi Gras. Carnival Celebration has departed from Finland’s Meyer Turku and is expected to be at sea for quite a few days.
During these sea trials, engineers will be testing the technical systems. They will also observe the speed and maneuverability. Construction on Carnival Celebration began in 2021 (January). The mega ship is expected to start operating in November 2022 from Miami.
She is not yet ready for guests, but Carnival Celebration is getting closer to the official introduction scheduled later in 2022. After a construction phase that started just 20 months back, the newest cruise vessel in Carnival Cruise Line’s fleet successfully set sail on her first set of sea trials on 5 September.
Captain and Crew Members Are Already Onboard
The sea trials are likely to enable the crew members and officers to get accustomed to the vessel, Captain Vincenzo Alcaras explained to John Heald. He said that during the sea trials, the ship undergoes many tests meant to determine its capability and performance. A lot of tests are taken, but he only lists a few, like the endurance, steering, speed, thrusters, and zig-zag tests, which are part of the manoeuvring tests, and Class-required tests.
The captain is not the only person on it; senior officers and many crew members have boarded the vessel. They will be responsible for launching the Carnival Celebration and guiding her through the launch period.
Carnival Celebration weighs 180,800 gross tons and boasts a guest capacity of 5,282 at double occupancy with almost 1,282 crew members.
Carnival Celebration to Set Sail End of 2022
Carnival Celebration is undoubtedly the most anticipated cruise ship in 2022. The vessel plays a crucial role in marking the 50th birthday celebrations for the Carnival Cruise Line, with the arrival in Miami later in 2022 to mark the culmination of the epic celebrations.
Guests can enjoy various activities during their stay, including BOLT, the same roller coaster on Mardi Gras, and six fun-filled zones onboard, including the Ultimate Playground, Summer Landing, The Gateway, Lido, 802 Biscayne, and the Celebration Central.
Even though Carnival Cruise Line refers to the first Caribbean cruise, the inaugural voyage, Carnival Celebration, will sail on a cruise before reaching the US. On 6 November, Carnival Celebration will be setting sail on a transatlantic voyage, which is also her maiden voyage, from the UK’s Southampton.
Christine Duffy, Carnival Cruise Line’s president, said that Carnival Celebration promises to be a brilliant addition to the fleet – ideally in time for the 50th birthday – and there is a fantastic array of itineraries starting with an inaugural transatlantic cruise for two weeks, followed by year-round Caribbean sailings featuring some of the most popular and spectacular destinations in that region.
During the 14-day trip, she will call Vigo and La Coruna in Spain, Funchal on Madeira, and Tenerife, located in the Canary Islands.
On 20 November, Carnival Celebration will reach Miami, following which Carnival Cruise Line is preparing to host some celebrations, including the naming ceremony, to commemorate the arrival of the fleet’s newest vessel.
Carnival Celebration is scheduled to debut on 21 November 2022 from Miami. The vessel is set to provide year-round service to the western and eastern Caribbean from PortMiami’s Terminal F, constructed for Carnival Cruise Line specifically. Cruises will be between six to eight days long.
References: Cruise Hive, Travmania
Long-term container rates have begun dropping, as they track the direction of global spot rates for 40-foot boxes, according to a shipping executive and industry watchers, as soft demand due to high inflation in the United States and Europe is putting pressure on box prices.
Drewry Supply Chain Advisors said on September 1 its World Container Index composite index declined 5% from a week ago to US$5,661.69 per forty-foot equivalent units (FEU), its 27th consecutive week of contraction. The index has dropped 43% from a year ago.
Data from online platform Xeneta shows that long-term rates for FEU containers rose 4.1% in August, taking rates 121.2% higher year on year on August 31, but shipping executives admit rates are reversing.
“[D]espite softening spot rates, uneven demand and ongoing supply chain issues, the world’s leading carriers remain on course for another bumper year of profits,” an update from Oslo-based Xeneta was quoted by Splash as saying.
Signs are appearing that new long-term contracted rates, which have trended upwards since the disruptions and port congestions began in the 2021 peak season, are actually starting to drop on key trading corridors.
Xeneta said, however, since carriers are replacing expiring contracts with considerably lower rates, the average paid by all shippers is still climbing.
“There’s no doubt the major carriers have had it their way in negotiations for some time,” said Xeneta chief executive Patrik Berglund.
“The spectacular results they saw in 2021 will no doubt be repeated, and even bettered, this year, as seen by the huge profits that defined many Q2 financial reports. But there is a sense that change is in the air.”
After a long spell of container rates rising to abnormally high levels that drove up liner profits to record highs lately, rates are now expected to inevitably go the direction of declining spot markets. Liner top executives agree.
“What we’ve been seeing now for many weeks is a decrease of freight rates in almost all sectors. We expect that decrease to continue. I don’t think we’ll see a strong drop but rather a soft landing,” CMA CGM chairman and CEO Rodolphe Saadé told Bloomberg a week ago.
Saadé reiterated that view in CMA CGM’s results briefing on September 2. He said inflationary pressures have caused a slowdown in consumer spending and therefore a softening in demand for maritime shipping in recent weeks.
“In some regions, these developments have led to a decline in spot freight rates,” Saade said. His view was echoed by Berglund.
“Volumes are dropping and, as expected, long-term rates are beginning to follow the trend set by the spot market,” the Xeneta CEO said.
A slowdown is expected in China’s exports to the United States and Europe this peak season as its manufacturing sector has been affected by anti-pandemic restrictions and industries face water shortage due to drought.
A lockdown in Chengdu city was imposed on September 1 on its 21 million population after 157 new COVID-19 cases were detected, raising the number of infections to over 600. Observers said the lockdown could affect its export industries icluding electronics, information technology, food processing, machinery and automobiles, as happened in Shanghai earlier.
Drewry’s WCI composite index rate of $5,662 per FEU container is now 45% below the $10,377 peak in September 2021, but remains 55% above the $3,664 5-year average. The average WCI for the year to date is $7,928 per FEU , still $4,265 above the five-year average.
Spot rates on the Shanghai-Los Angeles route fell 9%, or $565, to $5,562 per FEU. Spot rates on Shanghai-Rotterdam and Shanghai-Genoa routes fell 5% each to $7,583 and $7,971 per FEU.
Shanghai-New York rates decreased 3%, or $265, to $9,304 per FEU. Similarly, Rotterdam-New York rates eased 1% to $6,839 per FEU.
Los Angeles-Shanghai rates gained 1% to $1,262 per FEU box, while Rotterdam-Shanghai and New York-Rotterdam rates hovered around the previous week’s level.
Three new cruise lines are set to be unveiled this September as new investors and new money enter the business.
A combination of available ships, funding and fear of missing out is the driving force behind these three projects.
Major Hotel Chain: According to multiple sources speaking to Cruise Industry News, a well-known hotel brand will announce its intention to start a cruise line with new, (comma) small luxury ships sometime in September.
French Start Up: A French start up has acquired the former Maasdam from the laid up Seajets cruise fleet and will be announcing more details shortly. Seajets has yet to put any of its cruise vessels into service, having already sent ships to be recycled. If the deal works out, look for the more of the Seajets fleet to find new homes. Seller financing is said to be playing a key role.
Exploris: The Silver Explorer will be heading to a new home in late 2023 at Exploris, which is targeting the high-end expedition market with a small ship. A press conference is scheduled for early September with more details set to be announced then.
The American Waterways Operators reports that its Tankering & Barge Operations Subcommittee has presented AWO affiliate member ERL Inc. with the panel’s third annual safety award.
The award was given ERL for he creation and testing of its EverGreen Seal. The EverGreen Seal replaces current braided Teflon gaskets and reduces cargo vapor emissions from tank barge hatches by more than 90%, improving safety for mariners and shore tankering personnel as well as environmental sustainability.
The award was presented during AWO’s Summer Safety Committees’ meeting in Chicago by the subcommittee’s newly elected chairman, PSC Group vice president of marine & plant operations Josh Dixon, to ERL Inc. Vice President Houston, Craig Theiler.
Stephen Wilkins, CEO of ERL Inc., said, “I would like to thank the AWO Tankering and Barge Subcommittee for choosing ERL Inc. for the Third Annual Safety Award. It is an honor to be a part of AWO, which continues to improve maritime safety and environmental sustainability. We are proud of the team at ERL that develop and manufacture innovative products, like the EverGreen Seal, that reduce emissions, prevent spills, and increase tankerman and deckhand safety.”
“We were honored to have received the 2022 AWO Annual Safety Award,” said Craig Theiler, VP Houston, ERL Inc. “This accolade not only highlights ERL’s desire to partner with our customers in innovating new products, but it also demonstrates AWO’s and the entire domestic maritime industry’s commitment to improving operations in a safe and sustainable manner. We look forward to continuing our relationship with our industry partners to develop new products and innovate on existing ones in our collective effort to continuously improve the safety, reliability, and efficiency of domestic maritime transportation.”
ERL Inc. vice president Todd Marshall said: “Thanks to AWO for being good stewards of our working environment through actively promoting engineered solutions for a safer world for us all. We at ERL take the safety of our mariners and the preservation of the environment very seriously and are honored to be recognized by our peers with this safety award.”
“AWO applauds ERL Inc. on this well-deserved award,” said AWO president & CEO Jennifer Carpenter. “ERL Inc. and their EverGreen Seal are a shining example of the ingenuity and innovation that are propelling the tugboat, towboat and barge industry forward into the future. Their leadership is a fantastic representation of AWO members’ commitment to mariner safety and environmental sustainability.”
The first and second annual safety awards were presented in 2020 and 2021 by the Subcommittee on Tankering & Barge Operations to AWO affiliate members CITGO Petroleum Corporation’s Lake Charles, La., marine department and facility and Arcosa Marine Products, Inc., respectively.
This contains the latest information from OCIMF for inspectors and supersedes guidance to inspectors as issued in bulletin #7 on 6 April 2020.
To further support SIRE, BIRE and OVID programme users and other industry stakeholders during the COVID-19 pandemic OCIMF has:
Inspectors are central to the process, and therefore, in response to feedback, OCIMF offers the following reminders and direction.
OCIMF does not arrange Inspections or have any involvement in the commissioning activities of Submitting Companies.
The decision to commission a Programme Inspection lies with a Submitting Company in agreement with the vessel operator.
The Submitting Company and Inspector should discuss potential safety, travel and accommodation arrangements, while an inspector is contracted to conduct an inspection.
Where an Inspector feels that they do not have enough safety, travel or inspection guidance, through standing instructions or the inspection booking process, they should engage with the Submitting Company and resolve their concerns before travelling.
Inspectors should follow the instructions and guidance provided by the Submitting Company and their sub-contracted inspection company, relating to travel and accommodation booking for the period while they are contracted to inspect on behalf of the Submitting Company.
Inspector must comply with all national, regional, and local authority travel restrictions.
It is recommended that when organising travel and accommodation, the following points are considered:
See the World Health Organisation for guidance: WHO Rational use of personal protective equipment for coronavirus disease 2019 (COVID-19) Interim guidance 27 February 2020.
It is recommended that inspectors carry:
The Maritime Anti-Corruption Network (MACN) has launched a survey to obtain a better understanding of the possible link between the COVID-19 outbreak and corrupt demands faced by the shipping industry, and how such demands are affecting seafarers and vessel operations. BIMCO supports MACN’s efforts to fight corruption in shipping and is therefore encouraging members to respond to the survey.
The survey, which is designed as a short 3-minutes “tick-the-box” questionnaire, gives stakeholders in the shipping industry the possibility to indicate, amongst other things, if they continue to face challenges during vessel clearance and/or Port State Control inspections. At the same time, MACN would also like to receive feedback on any new innovative or best practices which have been observed for e.g. use of remote technologies which may reduce the opportunity for corrupt demands. Please share this questionnaire among your vessels as their input is highly valuable.
Deadline for responding to the survey is 15 June 2020.
The Guidelines were written by a broad cross section of industry stakeholders and published in their third version in December 2018. Since the publishing of the guidelines the concepts for cyber risk management have continued to develop in several areas. For example the International Maritime Organisation has fine tuned their views on the topic, IACS has developed a set of recommendations for cyber resilience on newbuildings, and shipowners are gaining experience with regards to the cyber threat and the associated practical cyber risk management techniques. All these developments have taken place against the backdrop of rapidly developing information technology where the information transmission speed is growing exponentially and the complexity of networks and the possibilities for data sharing and data cross utilization seem endless.
It is with all this in mind that the cyber working group is casting off and commences the review of the 3rd version of The Guidelines on Cyber Security Onboard Ships.
The review will take place over the coming weeks and it is expected that a new version of the guidelines will be ready for release during the autumn 2020.