U.K.-based defense contractor Babcock International has secured two further contracts relating to Poland’s Miecznik (Swordfish) frigate program.

Earlier this year, Babcock was selected as the platform design provider and technology partner for the Polish frigate program and is supporting the PGZ-Miecznik Consortium in building three Arrowhead 140 frigates in Polish shipyards by a local workforce, drawing significantly from Polish suppliers and Babcock’s global supply chain.

Babcock’s Arrowhead 140 platform, on which the U.K.’s Type 31 frigate program is based, has been developed from the proven Danish Navy Iver Huitfeldt class frigate.

Babcock’s two latest contracts for the Polish frigate program, the class design contract and the transfer of knowledge and skills (TOKAT) framework agreement, respectively support the further development of the program and the enhancement of shipbuilding capability in Poland to deliver Miecznik to schedule.

The class design contract is key to supporting the maturity of the Miecznik frigate and the provision of a design documentation package to Polska Grupa Zbrojeniowa (PGZ S.A) for submission to the classification authority. Babcock says this will push forward the next stage of the engineering process and support the program to cut steel of Ship 1 in 2023.

Under the TOKAT framework contract, Babcock will share its technology, engineering expertise and industry know-how with PGZ S.A., PGZ SW and Remontowa Ship Building with the aim of transforming their shipyards and delivering the Miecznik program for the Polish Navy. The cooperation will include human resources development and staff training, support in infrastructure upgrades planning and the implementation of tools and technologies.

Babcock CEO David Lockwood said: “I am delighted with the progress on the Polish Miecznik program. Our work in Poland builds on the shared interests of the NATO countries. Babcock will deliver first-class frigates that will contribute significantly to the sovereign defense capability in Poland.”

Source: https://www.marinelog.com/news/babcock-signs-key-polish-frigate-project-contracts/

With the floating offshore wind industry poised for rapid growth, Maersk Supply Service is taking steps to capitalize on the opportunities and present a new offering to the market. Maersk Supply announced a new strategic partnership with Stiesdal Offshore to support and accelerate the development of the wind sector. The first commercial wind farms are expected to be deployed by 2028.

The two Danish companies will combine their respective strengths to create comprehensive and integrated engineering, procurement, construction, and installation (EPCI) solutions for foundations and moorings. The integrated approach the companies said will streamline the value chain, facilitating fast-track installations and ultimately bringing down the costs of floating wind.

“With this partnership, we want to offer our customers a combined EPCI solution for floating wind foundation design, fabrication, assembly, and installation,” said Steen S. Karstensen, CEO of Maersk Supply Service. “We believe this will simplify the value chain in the growing floating wind sector, which is still in the early stages, but which will also by necessity see rapid expansion and growth in the coming decade. By working closely together with Stiesdal, we want to facilitate this green development – and to accelerate our journey into floating wind.”

Both companies already have experience in the emerging floating wind sector. The development of the technology and its deployment is considered critical to reaching the global goals for offshore wind power generation. Floating wind turbines will permit wind farms to be developed further offshore and in areas that would otherwise be inaccessible. Several companies are working to develop concepts for floating installations.

Since 2017, Stiesdal Offshore has been developing the Tetra concept, the world’s first fully industrialized floating technology. In cooperation with Shell, RWE, and TEPCO Renewable Power, Stiesdal built and installed the first Tetra floater off the west coast of Norway in 2021, demonstrating the cost-saving and efficiency potential of the concept.

Maersk Supply Service has worked with the offshore energy sector for over 50 years. The company recently oversaw and executed the mooring system installation for the Saitec DemoSath floating wind project offshore near Bilbao, Spain.

Under the partnership, Maersk will act as the lead contractor and key contact for clients on projects while Stiesdal will act as a subcontractor.

Source: https://www.maritime-executive.com/article/maersk-supply-and-stiesdal-partner-for-opportunities-in-floating-wind

The Baltic Exchange’s main sea freight index snapped a three-session long streak of gains on Tuesday, due to a fall in capesize and supramax rates.

The overall index, which factors in rates for capesize, panamax, and supramax shipping vessels, was down 19 points, or about 1.7%, at 1,114 points, its lowest in over a week.

The (dry bulk) market lacks any positive indication in the near term and demand-side fundamentals have a fair amount of uncertainty, Allied Shipbroking said in a weekly note.

There is a considerable amount of market risk arising from the poor economic indicators of G20 economies, Allied added.

But over the mid to longer term, demand fundamentals remain positive, making the outlook for the dry bulk sector “cautiously positive”, Athens-based EastGate Shipping said.

The capesize index also snapped its three session gain streak, losing 116 points, or 13.7%, to 728 points.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as coal and steel-making ingredient iron-ore used in construction, fell by $963 to $6,037.

The panamax index was up 86 points, or 6.48%, at 1,327 points, marking its biggest gains in almost seven months.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, was up $774 to $12,715.

Major grain supplier, Brazil’s expected increased soyabean exports in the 2022/23 season “gives hope to earnings’ projections for the medium-sized bulkers that tend to carry the commodity in longhaul voyages”, EastGate said.

The supramax index fell for an eighth consecutive session, losing 11 points to 1,487 points.
Source: Reuters (Reporting by Harshit Verma in Bengaluru; editing by David Evans)

The Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority has announced its intention to purchase two Offshore Supply Vessels (OSVs) from Hornbeck Offshore Services (HOS) of Covington, La., for conversion to freight ferries. The sister vessels — the 2009-built HOS Lode Star and 2008-built HOS Shooting Star — are 73-meter long 240 class OSVs.

They are being acquired to replace the Steamship Authority’s aging open deck freight ferries, the 1981-buillt M/V Gay Head and 1982-built M/V Katama. Those, too, started off life as sister offshore service vessels. In 1988, the Steamship Authority converted the Katama to ferry service, adding a rounded stern to fit loading ramps and a small passenger area. Ten years later, the Katama received an additional upgrade as a fifty-foot midsection was added along with more powerful EMD engines. Acquired a year after the Katama, the Gay Head also received a fifty-foot midsection upgrade, as well as a new engine upgrade in the mid 1990s.

Both are now showing their age.

Just last week the Martha’s Vineyard Gazette reported that the cost of overhauling the M/V Katama, originally estimated at $1.1 million, had ballooned by more than 40% after deteriorating structural steel was discovered during drydocking.

The Steamship Authority says that a recent study that it commissioned identified the two freight vessels as having an expected useful life of less than five years, while the two OSVs being acquired from HOS have an estimated remaining useful life of at least 25 years.

Initial cost estimates for the acquisition, conversion and re-activation of the two OSVs is approximately $30 million. The Steamship Authority will finance the acquisition through the sale of bond anticipation notes within its $100 million bonding limit.

“The purchase and conversion of available OSVs is the most efficient, rapid and cost-effective path to upgrade our fleet and best serve the vehicle and freight transport needs of island residents and visitors,” said Steamship Authority General Manager Robert B. Davis. “The similar design of the vessels also promotes economies of scale through interchangeability of vessels for service needs, inventory of spare parts and crew training. Additionally, purchasing these used vessels will put the authority in a better financial transition to plan for investigate the possible inclusion of alternative fuel technologies into its next newly constructed vessel.”

Following design and engineering work for conversion and reactivation, the first of the newly acquired vessels is expected to be operating on Steamship Authority routes to Martha’s Vineyard and Nantucket by summer 2023. The authority has an option to purchase up to two more vessels from Hornbeck by November 30, 2022, with delivery by December 31, 2022.

Source: https://www.marinelog.com/news/steamship-authority-buying-two-osvs-for-conversion-to-freight-ferries/

Newbuilding orders for LNG carriers, which had already been leading the industry in 2022, recorded another significant jump with an additional $2.6 billion in contracts reported by two of South Korea’s large shipbuilders. Orders in the sector are growing rapidly both as Qatar prepares for its massive expansion of production as well other emerging nations seek to fulfill the growing import demand for LNG from Europe, Japan, and China.

At mid-year, orders for large LNG carriers (exceeding 140,000 cbm) were the highest in 22 years according to Clarksons. The UK-based research company reported that orders were up by at least a quarter in 2022 with the global orderbook standing at 255 gas carriers, which represents a 40 increase in capacity. Orders in 2022, as of mid-year, had already surpassed 100 LNG carriers versus 86 orders in all of 2021.

In separate stock exchange filings, South Korea’s Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries reported additional orders of LNG carriers. It is in keeping with Korea’s leadership in the sector and the strategy of the country’s shipbuilding industry to focus on high-value ships. LNG carriers are among the most expensive vessels exceeding the cost of simpler containerships and tankers and are only surpassed by cruise ships due to the cost of outfitting the hotel portion of the ships. The price of the average large LNG carrier has risen to approximately $240 million, twice that of a tanker or containership.

DSME recorded the largest new order with a contract for 11 vessels believed to be the latest tied to QatarEnergy’s newbuilding program in conjunction with the major shipping companies. The shipyard said it received an order valued at approximately $1.5 billion with the ships due for delivery by February 2026.

Samsung reported two separate orders for a total of four additional LNG carriers with a combined value of approximately $850 million. All four of the vessels are due for delivery in 2025 with two linked to Qatar and the other two it is believed will be deployed to carry exports from Africa’s emerging LNG facilities. Countries including Senegal and Mozambique are developing export capacities while Egypt recently announced that it was also looking to expand its exports to earn badly needed foreign currency.

The South Korean shipbuilders so far in 2022 have received orders for more than 80 LNG carriers, which represents 75 percent of the global orders. Chinese shipbuilders have been working to get a foothold in the segment but remain a distant second to Korea’s three main yards which have consistently led the segment. The European Commission highlighted this when they declined to approve the merger of Hyundai Heavy Industries and Daewoo earlier this year.

The continued demand for LNG carriers has also helped the major Korean shipyards to approach their yearly targets for new orders in the first eight months of the year. Daewoo reported with this latest order it is now at 92 percent of its target having booked nearly $8.2 billion in orders in 2022. The shipyard said at the end of August its backlog stood at 131 ships valued at nearly $29 billion. A total of 28 of the 36 vessels it has received orders for this year were LNG carriers.

Samsung is slightly behind having reached 82 of its order target for the year. Like its competitor, it has received 37 orders valued at more than $7 billion with 28 of them for LNG carriers.

The South Korean shipbuilding industry fell to second place in the total number of orders in August behind China for the first time since April 2022. While orders were off versus July, South Korea still received 41 percent of the new orders placed in August and overall for the year has received 43 percent of the orders. The strong orders in 2022 saw South Korea’s total backlog grow by 26 percent, more than twice the growth rate recorded by Chinese shipbuilders.