Hawaii-based carrier Matson posted exceptional earnings in the second quarter, driven in large part by the growing popularity of its transpacific services. From April through June it brought in just over one billion dollars in revenue and posted an operating income of $470 million. In percentage terms, this is a better operating income margin than many blue-chip European carriers.

Matson is the last operator using U.S.-built (not just U.S.-flagged) container ships in an overseas liner trade, and it has had considerable success. For more than 15 years, its Jones Act vessels have been making voyages to China and back, providing a premium service for shippers who need fast transit times to Southern California. The higher freight rate comes with excellent performance for on-time arrival and cargo availability – both of which are hard to come by in the post-pandemic era.

With its coastwise-qualified fleet, Matson can also deliver Californian cargo to Honolulu on the backhaul run. This extra revenue-generating voyage is closed to foreign-built ships. But it is the transpacific service that really boosts Matson’s earnings. In the second quarter the company added more eastbound voyages to handle a container volume increase of 12 percent, driven by e?commerce shipments, clothing and other goods for the U.S. market. Its transpacific service commanded a “significant” premium over the SCFI, and rates were considerably higher than during the same time last year. One contributing factor: Matson has added a seasonal expedited run from Shanghai to Oakland, where it operates its own terminal. The transit takes less than two weeks, and it skips the port congestion in Southern California.

The popularity of the service is reflected in the numbers. Revenue increased by more than 50 percent and operating income rose by more than 130 percent year-on-year during the quarter. Rates softened slightly in July, but Matson expects that the rest of the year will still be quite good for business.

“We are seeing solid demand for our China service as China’s factory production continues to recover from the COVID-19-related supply chain challenges,” said Chairman and Chief Executive Officer Matt Cox in an earnings statement. “We expect an orderly marketplace for the remainder of the year with our vessels continuing to operate at or near capacity and earning a significant rate premium to the market.”

Source: https://www.maritime-executive.com/article/matson-s-transpacific-service-is-booming

With a merchant fleet of over 4.901 vessels Greek shipowners’ control 19,4% of the world tonnage and 58% of the EU tonnage capacity. On the occasion of the Pytheas Space Maritime Forum EUSPA, in collaboration with the Greek authorities, organized a demonstration that showcases the importance of space technologies in Search and Rescue (SAR) Operations. The exercise involved the activation of a Galileo-enabled EPIRB equipped with the innovative Return Link Service.

Relying on space data and services by the EU Space Programme, such as Galileo and Copernicus, is beneficial for the Greek shipping community as they bring extra safety and efficiency in maritime operations’’ says Deputy Minister for Maritime Affairs and Insular Policy, Kostas Katsafados. “The Maritime sector is sailing towards a digital and more green and safer future. The European Union is investing in the EU Space Programme components such as Galileo and Copernicus, and soon in secure connectivity, to enable the companies in the maritime ecosystem to become more innovative and more competitive. Space and Ocean stand together for the EU Blue Economy, for the Green and Digital transition,’’ says Catherine Kavvada, Director for Outreach and Innovation at the Directorate General for Defense Industry and Space, European Commission.

What happens when disaster strikes?

Safety at sea and protecting the oceanic ecosystem have long been two of the European maritime sector’s top priorities. Today, the EU is developing space services to better answer these priorities. Take for example the scenario of a ship grounding or colliding with another vessel. Search and Rescue crews must fight rough seas and/or freezing temperatures to quickly reach the ship and evacuate passengers and crew.

But this is just one of the many challenges that SAR teams and other stakeholders face. Relevant authorities must also mitigate a range of environmental risks, such as oil spills. Because time is of essence for both safety and environmental challenges, having ready access to precise location information is absolutely crucial. “Greece is implementing its space strategy in a step-by-step approach, investing in space infrastructure to achieve national and European targets with the aim of promoting the digitization of the economy, improving the resilience of the country’s infrastructure and optimizing the response to situations emergency or natural disasters’’, says Athanassios Staveris-Polykalas, Secretary General of Telecommunications & Posts, Greek Ministry of Digital Governance.

Localise with Galileo

The launch of the Galileo constellation has meant an exponential increase in accurate navigation. The system was designed with protecting EU citizens as a core objective – an objective it achieves through various services. One of those services is the Galileo SAR service, which, in January 2020, announced the launch of its ground-breaking Galileo Return Link Service (RLS) feature. Thanks to the RLS, sailors in distress, when equipped with the appropriate beacon, will see a light verifying that their distress signal has been received by emergency first responders and that their location has been established.

Galileo is the only GNSS constellation to offer such a service to its end-users. The RLS is proven to increase survival rates by giving an important psychological boost to people in distress. Experts of Cospas-Sarsat estimated that the international SAR system, with the contribution of the Galileo Search and Rescue service, saves more than 2,000 lives a year.

“Sailors received the notification that their distress signal has been received in 1.08’, it is another proof of the performance of the Galileo Search and Rescue service. And it is saving lives. Thus, it is essential that Europeans are aware of the performance of the Galileo. It is part of our mission in EUSPA. I am pleased to have participated to this demonstration’’, adds EUSPA Executive Director, Rodrigo da Costa.

Visualise with Copernicus

Accidents often occur in poor weather conditions, where it is difficult or dangerous to deploy manned assets (e.g., helicopters). When an accident happens in a remote area, there may not be the option to send vessels or aircraft to verify the situation. In both contexts, the Copernicus Maritime Surveillance (implemented by EMSA) service can provide valuable additional data to help detect, track and potentially identify the vessels in distress. By doing so, the CMS helps support SAR efforts. Specifically, Copernicus utilises synthetic aperture radar images, which can be used to help search for vessels over large areas, during the night and even in poor weather conditions. This capability is especially useful when a vessel loses communication and goes adrift (e.g., following a fire or tracking storm damage). Identifying the location of a vessel helps optimise the use of search and rescue assets and allows authorities to direct resources to where they are of most use. Optical images can also provide a wealth of additional information, including positively identifying the vessel, characterising the damage caused or detecting any deployed lifeboats in the water.

Communicate with GOVSATCOM

When disaster strikes, communication, information and location are key. With the addition of GOVSATCOM, the EU Space Programme offers all three. GOVSATCOM will provide secure, cost-efficient communication capabilities to security and safety-critical missions, operations, and infrastructure. EUSPA has been entrusted with the procurement of the secure operational ground segment (GOVSATCOM Hubs), its operations and the coordination of the user-related aspects of GOVSATCOM, all in close collaboration with the Member States and other involved entities.

Source: EUSPA

A Philippines-based recruitment agency that unlawfully charged seafarers placement fees has had its license suspended after the International Transport Workers’ Federation (ITF) highlighted its illegal practices.

Global Marine and Offshore Resources, based in Manila, was in late July red listed on the ITFShipBeSure.org directory of recruitment (manning) agents. This is a warning to seafarers that they should avoid seeking employment through that agency.

Now the Filipino Department of Migrant Workers (DMW) has suspended Global Marine’s license. The ITF has incontrovertible evidence that four seafarers were illegally charged placement fees, placed with different employers on different ships to those described in their contracts, and some are owed more than two months’ pay.

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

“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.”

Seafarers’ testimony

The four seafarers have signed affidavits attesting to their mistreatment by Global Marine. They were each offered contracts for employment in Dubai, some on the cargo ship Clivia (IMO: 8668509) built in 2009 and owned by FG Marine Services SDN BHD, others on the support vessel Muru (IMO: 4542874), although the contract had the wrong IMO number.

None of them ended up on the Clivia. When they arrived in the UAE, they found themselves on much older vessels. Three were directed to the Muru, a 40-year-old support ship in a terrible condition. This is owed by The Sinbad Navigation Company DMCC, not FG Marine.

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.

A fourth seafarer, Felix Roondina Impas Jr was in a similar situation, again finding the employment was different to that specified, this time on a small support vessel, AM 230 (MMSI: 457070000). He was repatriated after he became ill. He did not receive sick pay or benefits for his medical treatment.

Global Marine have claimed the condition was pre-existing, but prior to deployment, Impas was cleared of any illness in a medical examination. He believes his condition was caused by poor quality drinking water on board the AM 230. He has filed a complaint with the DMW.

Each of the four testifies that immediately prior to their employment in March and April 2022, they visited Global Marine’s offices in Manila and were asked by Fleet Engineer Gilbert Torrecer for a placement fee of between US$600 and US$1,000 – which they paid. This is prohibited under the Maritime Labor Convention (MLC), which has been ratified by the Philippines and forms part of the country’s laws.

The ITF helped the four get back to the Philippines at the start of July and, after intense pressure from the ITF, Global Marine was persuaded to refund the placement fees.

“Seafarers should be very wary of an agency that charges a placement fee,” said Trowsdale. “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.”

Although their contracts said different, Global Marine was placing seafarers with the Sinbad Navigation Company DMCC. In the past two years, the ITF has dealt with cases on all six of Sinbad Navigation’s vessels, including problems relating to lack of food and water, substandard accommodation, owed wages and abandonment.

All four are also owed wages they were never paid – something that manning agents are responsible for under Philippines law. Global Marine reached a US$3,000 settlement with Ricardo Dagami Aya-ay in July. This is much less than USD $7,933.28 he was owed. The other three are still claiming more than two-months’ pay, totaling US$11,900.

ITF stands up for seafarers

“I went to the offices of Global Marine in Manila and asked them to pay these people what they are owed,” said Trowsdale. “They claimed it was the shipowner, not the agency, who is responsible for wages.”

In fact, the regulations of the Philippines Overseas Employment Administration (POEA) say that the manning agency is liable for unpaid wages (Rule II/20). “I pointed this out to them but I did not get a satisfactory reply. Nor did I get an explanation as to why these seafarers were illegally charged a placement fee.

“Although Global Marine finally seems to living up to some of its responsibilities after ITF and union pressure, the agent still issued false contracts, charged illegal placement fees and has withheld wages for several months. For these reasons, it will remain on the ITFShipBeSure red list and we believe the Filipino authorities should ban it altogether from operating as manning agency.”

The cases of the four seafarers (and many others who have complaints about recruitment agencies based in the Philippines) have been dealt with by the ITF’s inspector in Manila, Arvin Peralta. He is angry at how many seafarers find themselves at the mercy of dishonest agents.

“Unscrupulous manning agencies make a mockery of POEA contracts, rules and regulations in the arrogant belief that they can avoid sanctions by using intimidation, money and connections.” said Peralta.

“They try to deceive and take advantage of Filipino crew, when these seafarers are just looking for an honest living to provide for themselves and their families,” he concluded.

Source: https://maritimefairtrade.org/philippine-suspends-manning-agency-that-charges-seafarers-illegal-fees/

The Regional Cooperation Agreement on Combating Piracy and Armed Robbery against Ships in Asia (ReCAAP) Information Sharing Centre (ISC) has released its Half Yearly Report 2022 for the period of January to June. The key highlights of the report are as follows:

Overall situation

• No incident of piracy (occurred on high seas) was reported.
• A total of 42 incidents (comprising 40 actual and 2 attempted) of armed robbery against ships (occurred in internal waters, archipelagic waters and territorial seas) were reported in Asia during January to June 2022.
• This represents an 11% increase compared to 38 incidents reported during the same period in 2021.
• The severity level of the actual incidents are as follows:
  • One Category 2 incident (same as in 2021)
  • 10 Category 3 incidents (same as in 2021)
  • 29 Category 4 incidents (25 incidents during same period in 2021)

Increase of incidents

• Singapore Strait (SS) and Bangladesh Anchorages
  • 27 incidents were reported in SS (20 incidents were reported during the period of January to June 2021). The SS remains an area of concern.
• Three incidents were reported at Chattogram Anchorages, Bangladesh (no incident was reported during the same period in 2021).

Areas of improvement

• Anchorages in Malaysia, the Philippines and Vietnam.
  • No incidents were reported in Malaysia (one incident was reported during the same period in 2021).
• Three incidents were reported in the Philippines (six incidents were reported for the same period in 2021).
• No incidents were reported in Vietnam (two incidents were reported for the same period in 2021).

Situation in Sulu-Celebes Seas and Waters Off Eastern Sabah

• There was no incident of abduction of crew for ransom in the Sulu-Celebes Seas and waters off Eastern Sabah since the last incident reported on 17 Jan 20. However, the threat of abduction of crew for ransom remains potentially high, particularly in the area of Sulu and nearby waters off Tawi-Tawi as the Abu Sayyaf Group (ASG) commanders responsible for past incidents of abduction in Sulu are still at large and the presence of remnants of the group in the sea.

Source: https://maritimefairtrade.org/42-armed-robberies-against-ships-in-asia-during-first-half-of-2022-says-recaap-isc/

Seaspan Corporation (Seaspan), a wholly-owned subsidiary of Atlas Corp, is the latest shipowner-operator to join the Ship Recycling Transparency Initiative (SRTI) and publicize its recycling policies, practices and processes.

Seaspan is the largest global containership lessor, primarily focused on long-term, fixed-rate leases with the world’s largest container shipping liners. As at March 31, 2022, Seaspan’s operating fleet consisted of 132 vessels with a total capacity of 1,147,980 TEU, and an additional 67 vessels under construction, increasing total fleet capacity to 1,959,380 TEU, on a fully delivered basis.

“Sustainable ship recycling can provide benefits to both the global environmental and local communities. But this is contingent on having strong governance and transparent recycling practices in place. Without such the industry quickly risks doing more harm than good.” said Torsten Holst Pedersen, Chief Operating Officer of Seaspan. “Seaspan looks forward to working with SRTI to promote responsible and safe ship recycling practices.”

“It is encouraging to see momentum continue to build behind the importance of transparency and accountability on sustainability issues such as ship recycling, which covers environmental, social and governance factors, during this decade of action.” said Andrew Stephens, Executive Director of the SRTI.

“We are glad to welcome Seaspan to the SRTI community, increasing the SRTI’s profile in North America, and look forward to working together to raise awareness of the need for transparency and collaboration around responsible and safe ship recycling.”

Seaspan is one of 13 disclosing shipowners in the SRTI and joins like-minded and leading shipowners holding themselves to account before key stakeholders, including customers, investors, and the wider public. Earlier this year, the SRTI saw Volkswagen Group Logistics become a signatory to the initiative, increasing awareness of the ship recycling challenge among cargo owners.

Source: https://maritimefairtrade.org/seaspan-joins-ship-recycling-transparency-initiative/

With an area of over 23,000 square miles, Lake Victoria is the largest lake in Africa—and a vital resource for the 30 million people who live on its shores.

Every day, almost 40 ferries travel across the lake between Tanzania, Uganda and Kenya. One of these is the M/V Sengerema. Built in 1985, the vessel transports passengers and cars across the southern part of Lake Victoria seven days a week.

After more than 30 years of use, the ferry’s existing propulsion units reached their end of life. The operator Tanzania Electrical, Mechanical and Electronics Services Agency (TEMESA) had them modernized by the Songoro Marine Transport Boatyard, which chose Schottel without hesitation.

“We have been successfully working with Schottel for many years and always experience good working relations, reliable propulsion systems and professional contacts who provide us with guidance and support throughout our projects,” says Major Songoro, general manager of family-owned Songoro Marine.

Accordingly, the new machinery installation featured two type SRP 90 Schottel RudderPropellers that could be adapted to the existing vessel structure.

“Thanks to the customized concept, we were able to keep the effort as low as possible,” said Michael Heibel, team manager modernization and conversion at Schottel. “That translated into minimal downtime for the customer. As a result of this solution, the operator not only benefits from an efficient propulsion system right now but also from reliable service in the future.”

Spay, Germany-headquartered Schottel has long been a leader in the African ferry market, where more than 60 ferries with its propulsion systems are in operation.

Dirk Wagner, general manager Schottel Middle East, who is responsible for sales and service in the English-speaking countries of Africa, was particularly pleased that this position could be further improved with the modernization of the M/V Sengerema.

“The work paid off: not only did we restore a reliable lifeline for the people who live by Lake Victoria, but following on from this project, we were also able to win two contracts for delivering multiple RudderPropellers for two new ferries in the region,” he said.

Source: https://www.marinelog.com/news/lake-victoria-ferry-gets-new-schottel-propulsion-system/