The Baltic Exchange’s main sea freight index dropped to its lowest since February on Wednesday, extending its decline to the eighth day, on lower demand across vessel segments.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, fell 86 points, or 4.7%, to 1,731 points.

The capesize index dropped 181 points, or 9.2%, to its lowest since April 21, at 1,790 points.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $1,505 to $14,842.

“A 22.8% decline was reported during the past five days for the Capesize sector as both the Atlantic and the Pacific region faced limited requirements against a built-up of open tonnage,” shipbroker Intermodal said in a weekly note dated Tuesday.

Dalian and Singapore iron ore futures fell on Wednesday as a crisis engulfing property developers in China, the world’s top steel producer, outweighed improving margins at mills.

The panamax index was down 21 points to 2,005 points.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, decreased $188 to $18,047.

The supramax index fell 61 points to 1,805 points.
Source: Reuters (Reporting by Kavya Guduru in Bengaluru; Editing by Vinay Dwivedi)


Maersk reported an underlying EBIT of $8.9bn for the second quarter but behind the 15th consecutive quarter of on-year earnings improvements, there were signs of change.

Profitability in the group’s ocean segment rose “significantly” compared to Q2 2021, as softening volumes and shot-term rates were comfortably offset by higher contract rates.

Loaded volumes fell 7.4% from 3.3m feu to 3.1m feu while the loaded freight rate bolted 64% from $3,038 per feu to $4,983 per feu., “, driven by both contracts and shipment rates on routes from Asia to Europe and to North America.”

The firm’s results back analysis from Xeneta late in July, which claimed spot rates were weakening and contract rates were well up on-year and on pre-pandemic levels. What may prove crucial for Maersk and the sector is Xeneta’s forecast that a slowing in contract rate increases points to an imminent peak.

With current freight increases locked into the longer-term contract sector, any approaching drop in earnings will be spread over a longer period of time. Contract negotiations may present even more of a gamble than usual to shippers—pay a premium for the relative security of contracted volumes, or take a risk on cheaper spot rates at a time when supply chain disruption lingers.

Maersk’s results show another underlying issue for the sector which could prove troublesome should rates soften – rising costs. Total operating costs in the Ocean segment rose 18%; average bunker costs rose 74% from $475 per tonne to $827 per tonne. The cost increase translated to a 14% increase on a fixed bunker basis to $2,327 per feu. Average capacity for the Maersk fleet rose 4.1% to 4.3m teu.

As Xeneta CEO Patrik Berglund commented in late July: “The signs are clear there is a ‘shift’ in sentiment as some fundamentals evolve… It’s going to be an interesting few months ahead.”

AP Møller Mærsk CEO, Søren Skou, said of the group’s results:  “Volumes in Ocean were softer as congestion continued and the war in Ukraine weighed on consumer confidence, particularly in Europe. However, in Logistics we grew volumes above the market as our Ocean customers continue to buy into our value proposition, resulting in organic revenue growth of 36%, notching up the 6th quarter in a row of more than 30% organic growth.”


The third party contractor fatalities all occurred in Los Angeles; two truck drivers and one crane mechanic died at a terminal belonging to APMT.

Two Maersk colleagues died in a ferry incident in Tangier, said Maersk. The colleagues both worked for Svitzer. The sixth fatality occurred in Indonesia during a road traffic accident on a journey between port and warehouse.

“The sad cases are of course all under investigation to derive learnings and prevent repetition respectively in some cases this has been concluded already,” a spokesperson told Seatrade Maritime News.

Source: https://www.seatrade-maritime.com/management-crewing/six-fatalities-across-maersk-group-first-half-2022


The Filipino Department of Migrant Workers (DMW) suspended the recruitment agency’s licence after the International Transport Workers Federation (ITF) highlighted that the illegal charging of placement fees to seafarers, as well as being placed on different vessels to those described in their contract, and failure to pay wages.

The charging of placement fees is banned under the Maritime Labour Convention (MLC) to which the Philippines is a signatory. Four seafarers – Ricardo Dagami Aya-ay, Ceasar Abes Jurilla, Toni Dawn Domanais de Guzman, and Felix Roondina Impas Jr, had been charged placement fees of $600 – $1,000 by Global Marine.

Scott Trowsdale,  Inspectorate Coordinator at the ITF, warned: “Seafarers should be very wary of an agency that charges a placement fee. Sometimes they break the law like this because they don’t expect to be paid by the shipowner. That should be a red flag – you may not be paid either.”

All four seafarers were placed on different vessels to those in their contracts and were also owed unpaid wages.

The four seafarers had been offered contracts on the 2009-built cargoship Clivia owned Malaysian company FG Marine Services, however, none were deployed on this vessel. Three were placed on the 40-year old vessel Maru, owned by Sinbad Navigation Company DMCC, and described as being in “terrible condition”.

“Ricardo Dagami Aya-ay, Ceasar Abes Jurilla and Toni Dawn Domanais de Guzman claimed constructive dismissal because their contracts bore no relation to the employment offered and working conditions aboard the Muru were so poor,” ITF said.

The fourth seafarer Felix Roondina Impas Jr  was placed on a small support vessel AM230, and later became ill and was repatriated. He did not receive sick, nor benefits for his medical treatment.

“It’s great that the Filipino government has taken this action and I hope our evidence convinces them to permanently ban Global Marine,” Trowsdale.

“But truthfully, this should never have happened. The manning agency system – regulated by the Filipino authorities – is supposed to protect seafarers from unscrupulous employers. In the cases of these four seafarers, that system clearly failed. We’re demanding that the DMW takes a tougher line with corrupt agents so that this kind of worker abuse cannot happen again.”

Source: https://www.seatrade-maritime.com/crewing/philippines-suspends-crewing-agency-illegal-practices

 


The annual awards ceremony and reception was held at the Tanglin Club after a two-year enforced break due to the pandemic.

Speaking to attendees Capt Subhangshu Dutt, Chairman of ICS – Singapore branch, put the events of the last two years into a wider historical perspective. “So, the Institute is 120 years old now. And it has witnessed two world wars, a few pandemics, blockades, trade embargoes, sanctions, calm winds, moderate weather, severe storms, but always emerged unscathed.”

Guest-of-Honour for the occasion was Quah Ley Hoon, Chief Executive of the Maritime & Port Authority of Singapore (MPA), who stressed the importance of developing maritime talent and the key role that ICS plays in this.

The institute covers not just shipbroking, but all aspects of shipping, with awards presented for 16 different categories, as well as best overall student.

Introduction to Shipping

Winner: Chay Fook Cheun

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Shipping Business

Winner: Capt Jayakumar Sankaran, MICS

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Legal Principles in Shipping Business

Winner: Esther Eng Cai Yun

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Dry Cargo Chartering

Winner: Tiffany Aw

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Ship Operations & Management

Winner: Lim Ming Lian (winner unable to attend)

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Ship Sale & Purchase

Winner: Tan Heng Shoon, MICS

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Tanker Chartering

Winner: Victor Wang Kian Seng, MICS

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Liner Trades

Winner: Gurpreet Singh

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Port Agency

Winner: Marcus Poh Ming Wai, MICS

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Logistics & Multi-modal Transport

Winner: Joel Toh

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Port & Terminal Management

Winner: Damien Tng (Winner unable to attend)

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Offshore Support Industry

Winner: Harshal Kolambe, MICS

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Economics of Sea Transport & International Trade

Winner: Sriram Krisnaswami, MICS

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Shipping Law

Winner: Kenneth Lim Jia Yang

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Marine Insurance

Winner: Xia Chen (Winner unable to attend)

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Shipping Finance

Winner: Eric Cheang, MICS

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Best Overall Student

Winner: Chay Fook Chuen

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A huge shipwreck lying at the bottom of the sea just a few miles off the UK coast was discovered, and now, more information has been uncovered about it. Just off the East Yorkshire coast, below the waters, is a gigantic steel structure that was an ocean liner long back.

Below 100 feet the murky waves is a wreck that was once one of Europe’s finest vessels, per HullLive. Dubbed ‘Poland’s Titanic’, MS Pilsudski sank 30 miles off the Humber coast and has now become one of the UK’s largest, but least known shipwrecks.

Weighing over 15,000 tonnes and measuring beyond 500ft in length, the vessel sank in November 1939. It was one of the significant shipping losses of the opening months of the Second World War.

Named after Jozef Pilsudski, the proud founder of modern Poland, MS Pilsudski was his joy and pride. In 1935, following her maiden voyage, she went to complete her sails from Europe to America, the Caribbean, and Canada — and each time was completely booked.

She reportedly hosted a 350-member and boasted an art-deco style with dining halls, gymnasium, cocktail bar, and smoking rooms. On the deck, she also had a swimming pool, sports and sun decks, and a tennis court. But, her fate was sealed by the outbreak of the Second World War back in 1939, when Nazi Germany invaded Poland.

The Pilsudski was on its way back from New York to Gdynia when her passengers suddenly heard on the radio that their country was at war, leaving them more desperate for more news from family members back at home.

A M Cohen associated with the Newcastle Jewish Board of Guardians informed the reporters that the passengers left it in Newcastle. But on picking up her passengers, the luxury fittings were stripped off in Newcastle. The Pilsudski was then transformed into a mere troop transport.

By mid-November, her first orders were announced. She had to sail to New Zealand and Australia to pick up Commonwealth soldiers and bring them back to the UK. Now the elegant liner turned into a warship.

She left Newcastle on 25 November 1939 with captain Mamert Stankiewicz. There were over 150 crew members onboard.

However, sometime after 5.30 am a huge explosion took place under the keel and the ship right away started listing to port. It was sailing alone, and most crew members were fast asleep except those on the bridge and in the vessel’s engine room. The lights went all out and electrical power was reportedly lost. The radio operator tried to send an SOS but failed. In the dark, crew members helped those who were injured when portions of the decks collapsed.

Then two minutes after the first, a second explosion rocked The Pilsudski and she began sinking. Captain Stankiewicz ordered to abandon the ship. Soon, lifeboats were lowered into the sea.

However, Captain Stankiewicz was on board. The survivors saw him on the deck. He was refusing to leave until he was sure that the crew members escaped into rafts and boats. He dived into the waves and was dragged to safety by the other survivors.

The raft was spotted finally by a Royal Navy destroyer. The men somehow managed to get grip of the nets to safety. Captain Stankiewicz, who was suffering from exhaustion, shock, and exposure, however, could not manage to grasp the ropes. Unfortunately, he passed away shortly afterward. Later on, for his bravery, he was awarded the Virtuti Militari Cross, which is the Polish equivalent of the Victoria Cross.

It’s considered that over 171 individuals were rescued. There were reports a 16-year-old boy’s body was recovered, even though this is not confirmed. Whether the Pilsudski sank with other men trapped below is still not clear even though initial reports mentioned that seven continued to be missing. Remarkably, The Pilsudski lay undiscovered for 40 years. In 2008 the forgotten wreck was visited by Polish divers. They explored and filmed the vessel but did not have enough information or proof to suggest what resulted in her sinking.

The Pilsudski is rotting on the seabed. Her bow is intact even though broken away and lies at an angle. On the other hand, a part of her stern has reportedly collapsed. The decks where her guests would dine, laugh, and dance are there but collapsing into each other from the huge water pressure.

The Polish National Maritime Museum has to say that the cause still remains a big mystery. However, it is also now believed that she was sunk by explosions from two magnetic German mines in the Humber region, and not due to torpedoes.

But while physical remains will not remain, her memory, especially in Poland, remains bright. The vessel’s former home port of Gdynia reportedly screened a film charting the ship’s loss, history, and wreck site, last week. The film was produced by Koncept Kultura, a cultural and historical organization that has been shown in Warsaw. A dedicated website exclusively devoted to the Pilsudski is in the making. It will help future generations learn more about The Pilsudski.

Source: https://www.marineinsight.com/shipping-news/giant-shipwreck-discovered-at-the-sea-bottom-a-few-miles-off-the-uk-coast/


Ukraine grain export cargoes might soon start flowing more rapidly. In a hopeful sign the Turkish Ministry of National Defense reports that the first ship to depart Ukraine with an export cargo of grain since the Russian invasion is on its way to Lebanon after passing inspection.

The Sierra Leone-flagged Razoni arrived in Istanbul’s waters on Tuesday evening, after sailing from Ukraine’s main Black Sea port of Odesa on Monday.

“A joint civilian inspection team comprising officials from the Russian Federation, Türkiye, Ukraine and the United Nations visited the merchant vessel Razoni this morning,” the Black Sea Grain Initiative Joint Coordination Center (JCC) said in a statement.

“This marks the conclusion of an initial ‘proof of concept’ operation,” the statement continued, adding that three ports in Ukraine were due to resume the export of millions of tonnes of wheat, corn and other crops “at a time of global food insecurity.”

In addition to shipping millions of tonnes of Ukraine grain export cargoes, the initiative also envisages the export of fertilizer needed by the world’s farmers, “under close monitoring,” the Joint Coordination Center statement said.

It noted that the inspectors had spoken to the Razoni’s crew and gained “valuable information” about the vessel’s journey along the maritime humanitarian corridor in the Black Sea that was agreed by the signatories of the Black Sea Grain Initiative.

“The JCC will use this voyage in its ongoing work on fine-tuning procedures and processes to enable the continuation of safe passage of commercial vessels across the Black Sea under the Initiative,” the statement said.

HOW MANY SHIPS WILL FOLLOW?

After the first successful inspection, Reuters reports a senior Turkish official, who requested anonymity, as saying three ships may leave from any of the three Black Sea ports of Odesa and nearby Pivdennyi and Chornomorsk every day, instead of the previously planned one.

The news agency quoted U.N. spokesperson Stephane Dujarric as saying that more outbound movement was being planned from Ukraine for today (Wednesday), adding that about 27 ships were covered by the export deal.

Source: https://www.marinelog.com/legal-safety/safety-and-security/video-ukraine-grain-export-ship-passes-inspection-heads-for-lebanon/


The Maritime and Port Authority of Singapore (MPA) has concluded its investigation of the incident this year that first came to light when leading marine fuel testing provider VPS said it had identified 60 vessels that had bunkered high sulfur fuel oil (HFSO) contaminated with chlorinated hydrocarbons. Each of these deliveries were made from two suppliers and 12 delivery barges in the Port of Singapore, between mid-February to mid-March 2022. They contained up to 2,000 ppm of chlorinated hydrocarbon contaminants

As a result of its investigation of the incident, MPA has taken actions that include a two months suspension of the bunker supplier license of one of the two companies that supplied the contaminated fuel, Glencore Singapore Pte Ltd, for two months.

Back on May 5, MPA reported that the source of the affected HSFO fuel — which had been supplied to ships by both Glencore and PetroChina International (Singapore) Pte Ltd — had been traced to fuel loaded on a tanker at the Port of Khor Fakkan, United Arab Emirates.

FORENSIC FINGERPRINTING

Forensic fingerprinting analysis of the fuel samples taken from the tanker showed a match with samples taken from several affected ships that had received HSFO from both Glencore and PetroChina.

MPA also established that both Glencore and PetroChina, as MPA-licensed bunker suppliers, had carried out tests on the fuel supplied to ships prior to their sale based on the international standards of petroleum products of fuel – International Organization for Standardization 8217 (ISO 8217).

MPA found no evidence that Glencore or PetroChina had intentionally contaminated the HSFO.

Nonetheless, MPA found Glencore in contravention of MPA’s bunkering license terms and conditions

Today, MPA said that, between March 21 and 23, 2022, the fuel oil testing laboratory engaged by Glencore reported results showing that the samples taken from the parcels of fuel oil Glencore purchased, contained concentrations of COCs that ranged from approximately 2,000 ppm to 15,000 ppm. COCs are not commonly present in bunker fuel, especially at such elevated levels.

MPA’s investigation found that despite this, Glencore continued to supply bunkers blended with the fuel contaminated with high levels of COC to vessels in the Port of Singapore from March 22, 2022 to April 1. 2022.

By doing so, says MPA, Glencore contravened the terms and conditions of its bunkering license (bunker supplier) in failing to ensure that no bunkers supplied by it were contaminated. Glencore was given the opportunity to comment on these findings before MPA finalized its conclusions.

A total of 24 vessels were supplied with the affected fuel by Glencore from March 22 to April 1, 2022, and at least three vessels have reported issues with their fuel pumps and engines.

BUNKER SUPPLIER LICENSE SUSPENDED

MPA will suspend Glencore’s bunkering license (bunker supplier) for two months with effect from August 18, 2022. MPA has also asked Glencore to improve its internal procedures to ensure that prompt action is taken in future when it becomes aware of, or reasonably suspects, any irregularity in fuel quality.

MPA’s investigation also revealed that PetroChina had stopped delivery of the contaminated fuel promptly by March 19, 2022 once it received its own test results that the fuel it supplied was contaminated with COC. MPA has therefore decided not to take any action against PetroChina.

MPA has reminded all licensed bunker suppliers to adhere strictly to the terms and conditions of their licenses. MPA takes a serious view of contraventions of the bunker supplier licence terms and conditions, and will not hesitate to suspend or cancel the relevant licenses, where necessary. MPA has also reminded licensees to immediately report to MPA any irregularity in any bunker operation or contravention of any provision under the terms and conditions of their bunker supplier licence.

MPA TO WORK WITH INDUSTRY TO STRENGTHEN FUEL QUALITY CHECKS

To guard against contaminated fuel, MPA’s quality fuel assurance measures comprise the Bunker Quality Inspection System (BQIS) and the Intensified Bunker Quality Checks (IBQC). The BQIS tests the quality of bunkers supplied to vessels while the IBQC tests bunkers carried by bunker tankers before supply to vessels. On average, over 1,300 bunker samples are tested annually under the BQIS and IBQC to verify compliance with ISO 8217. While the occurrence of COC is rare in bunkers, MPA has now included that COC be tested for under both BQIS and IBQC.

MPA and the Singapore Shipping Association (SSA) will co-chair an industry expert group to establish a list of chemicals to be tested and their corresponding concentration limits. The expert group is expected to make its recommendations on additional measures to strengthen quality assurance of bunkers delivered in Singapore. The Chemical Metrology Division from Singapore’s Health Sciences Authority (HSA), the International Council on Combustion Engines (CIMAC) and the International Bunker Industry Association (IBIA) have expressed support for MPA’s efforts to strengthen fuel quality checks and have confirmed their participation in the expert group. In addition, experts from testing laboratories and other relevant bodies will also be involved in the expert group.

MPA will also continue to share relevant information with the ISO, as part of the ISO’s ongoing review of the ISO 8217 standards.

Source: https://www.marinelog.com/legal-safety/shipping/contaminated-fuel-mpa-suspends-bunker-suppliers-license-for-2-months/


Pope Francis said on Wednesday he hoped the people of Lebanon can be comforted by justice over the Beirut port blast that killed at least 215 people two years ago, saying “the truth can never be hidden”.

Speaking at his weekly general audience, Francis noted that Thursday would be the second anniversary of the blast, which also wounded thousands of people and damaged large swathes of the capital.

“My thoughts go to the families of the victims of that disastrous event and to the dear Lebanese people. I pray so that each one can be consoled by faith and comforted by justice and by truth, which can never be hidden,” he said.

Despite the devastation wrought by the blast, one of the biggest non-nuclear explosions ever recorded, a judicial investigation has brought no senior official to account.

With the probe frozen for months, many Lebanese see this as an example of the impunity enjoyed by a ruling elite that has long avoided accountability for corruption and bad governance, including policies that led to financial collapse.

Francis said he hoped that Lebanon, helped by the international community, could see a “renaissance” and be a land of peace and pluralism where members of different religions can live together in fraternity.

The pope was to have visited Lebanon in June but the trip was postponed, partly because of his health and partly because of the political situation in Lebanon.

Source: https://www.marinelink.com/news/truth-beirut-port-blast-cannot-hidden-498465


Jointly developed by CRAIN and its partner REEL (Rationnel Economique Esthétique Léger), the SW270 is a solid thick wing, fitted with a rear flap.

As explained, grids located on both sides of the wing section create a suction force that draws the air stream around the wing section from the outside to the inside of the wing. The wing is mounted on a structural foundation which contains the suction fan required to operate the system.

Based on the principle of boundary layer suction, the concept delivers a very high lift coefficient, which reduces the size of the device needed to achieve a given pull force.

Thanks to the shape of the system, the drag remains moderate. Therefore, the lift-to-drag ratio provides a good performance in upwind conditions and for ships sailing at relatively high speeds, using the wind to propel the ship in combination with the main engine, the developers said.

Furthermore, the wing section can rotate around a vertical axis to adjust to wind direction and optimize performance.

While the suction wing concept can be derived in a range of sizes in order to fit various vessel sizes, the device considered in this AiP was a wing with a span of 27 metres.

According to CRAIN, this AiP assures that the technology can be safely used and is ready for the next phase of its development and installation on board.

Laurent Leblanc, senior vice president of Technical & Operations at Bureau Veritas Marine & Offshore, said: “The suction wing concept appears to be a very promising option to help reduce greenhouse gas emissions from cargo ship operations. We are pleased to deliver this AiP to CRAIN, and we are proud to help build trust for innovative wind propulsion solutions, which are a key component of shipping’s decarbonisation transition. We look forward to seeing the system in operation.”

“Suction wing SW270 is an innovative wind-assisted propulsion solution that is suited for a large range of cargo ships. Developed using technologies already widely used by the naval industry, it delivers great power proportionally to its surface and is easy to install and use on ships”, says Philippe Pallu De Barriere, CEO of CRAIN.

“Our collaborative work with the Bureau Veritas team based on their new Wind Assisted Propulsion rules enables us to move on to the next step, providing specifications for the industrialization of SW270 by our partner.”

Source: https://www.offshore-energy.biz/crain-technologies-suction-wing-gets-green-light-from-bureau-veritas/


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Phone ( +359) 24929284
E-mail: sales(at)shipip.com

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