Mexico has the potential to establish itself as a global leader in maritime decarbonisation by engaging in green fuel production and bunkering with swift and strategic action, according to a new report by P4G Getting to Zero Coalition.

Being placed between well-established shipping routes and trade relations to multiple continents in the Pacific and Atlantic Oceans, the report found Mexico could tap into new markets and by investing it itself, the country could create new revenue streams from scalable zero emission fuels (SZEF) exports and bunkering, establish green hubs and ports, as well as open possibilities for green corridors along key shipping routes.

“The massive demand for zero emission fuels that will arise constitutes a major growth opportunity for Mexico, having the chance to become a future powerhouse for international shipping in Latin America,” said Ingrid Sidenvall Jegou, project director at the Global Maritime Forum.

According to the report, the development of green fuel infrastructure to serve Mexico’s shipping sector could attract investments ranging from $1.9bn to $2.7bn in onshore infrastructure by 2030. It discovered three key opportunities for Mexico, including the port of Manzanillo, DH2 Energy activities in Central Mexico, and Baja California, all of which are said to benefit from SZEF production, offtake, and distribution.

A facilitative policy and financial framework capable of effectively motivating and convening key actors across sectors and value chains is critical to unlocking these opportunities. The 111-page analysis stressed that the country currently lacks a favorable ecosystem, both politically and economically, to leverage benefits from SZEF production and use, particularly given the current administration’s preference to continue exploiting the country’s fossil fuel resources.

The report suggested that with appropriate incentives and targeted action towards encouraging investments into renewable energy and fuel production, Mexico could gain a competitive advantage in the bunkering and export of fuels in Latin America as other countries in the region take steps to prepare their own bunker supply chains.

Source: https://splash247.com/mexico-highlighted-as-potential-zero-emission-fuels-hub-for-shipping/

Saudi Arabian shipyard International Maritime Industries (IMI) has expanded its partnership with Hyundai Heavy Industries (HHI) through a technical service agreement to aid the Middle Eastern builder in delivering VLCCs.

HHI has been helping IMI expand its expertise since it was founded five years ago. The Korean yard is one of four founding partners in the joint venture in Saudi Arabia with the others being Saudi Aramco, Bahri and Lamprell.

Dr. Abdullah Al Ahmari, CEO at IMI, said: “This agreement reflects HHI’s ongoing commitment to supporting our efforts to build a world-class shipyard capable of locally manufacturing VLCCs and other vessels, that will help drive the development of Saudi Arabia’s maritime industry.”
IMI is the largest shipyard in the Middle East at nearly 12m sq m.

Sourcce: https://splash247.com/hyundai-heavy-aids-saudi-yard-in-developing-vlccs/

The newly built Mark W. Barker, the United States’ first new Great Lakes bulk carrier in nearly 40 years, has embarked on its maiden voyage from Fincantieri Bay Shipbuilding in Sturgeon Bay, Wis.

“This is a monumental day for our company and the U.S. flag fleet as our much-anticipated freighter departs on her first voyage in what will be a long life of service on the Great Lakes,” said Mark W. Barker, President of The Interlake Steamship Company and namesake of the vessel—the company’s first new build since 1981. “The construction of this vessel, which was made from steel manufactured in Indiana, from iron ore delivered by vessel from Minnesota, reinforces our long-term commitment to shipping and delivering essential cargoes for our customers throughout the region.”

The River Class self-unloading bulk carrier is believed to be the first ship for U.S. Great Lakes service built on the Great Lakes since 1983. Measuring 639 feet in length (78 feet W, 45 feet H, 28,000 DWT), the ship will transport raw materials such as salt, iron ore, and stone to support manufacturing throughout the Great Lakes region.

It was designed jointly by The Interlake Steamship Company, Fincantieri Bay Shipbuilding (FBS) and Bay Engineering, complete with advanced vessel and unloading systems automation. Under construction since August 2019, the carrier was built by FBS’s nearly 700 trade workers and generated business for partnering contractors, vendors and suppliers. Major partners for the project included: American Bureau of Shipping (ABS); Cleveland-Cliffs, Bay Engineering (BEI); EMD Engines; Caterpillar; EMS-Tech, Inc.; Lufkin (a GE Company), Kongsberg and MacGregor.

(Photo: The Interlake Steamship Company)

The new ship departed the Sturgeon Bay, Wis. shipyard at 10:36 central time for its 110-mile journey to Port Inland, Mich. where its crew of 21 mariners will load stone to deliver to Muskegon, Mich. Once delivered, that stone cargo will go into ready-mix concrete production.

“This new vessel not only brings with it additional cargo carrying capacity and capabilities, it is the most versatile in our fleet and strategically sized to navigate into nearly any port on the Great Lakes,” said Brendan P. O’Connor, Vice President of Marketing and Marine Traffic at The Interlake Steamship Company. “The M/V Mark W. Barker will give us unmatched ability for cargo operations and to carry unique project cargoes because of both her square-shaped cargo hold and larger hatch openings. She truly was designed to be a vessel for the future.”

“We couldn’t be prouder to add this skillfully constructed vessel to our growing Interlake fleet,” said Barker, who was at the shipyard this week to personally wish the best to the ship’s crew fitting out the new vessel. “It has been genuinely inspiring to see the dedication and workmanship from all of those involved in this multi-year project, from the design, construction, final outfitting and successful sea trials. We are thrilled to add our newest U.S.-crewed, U.S.-built and U.S.-owned vessel to the Great Lakes fleet.”

Source: https://www.marinelink.com/news/us-first-modern-laker-begins-maiden-498334

Under the new deal, HHI will provide technical assistance and consulting services in VLCC engineering to IMI, building on a collaboration which began in 2018.

The deal builds on an MoU between IMI, HHI, and Bahri for shipbuilding collaboration signed in June 2019 and a term-sheet for the technical service agreement signed in September 2019.

The agreement was signed by Dr. Abdullah Al Ahmari, Chief Executive Officer of IMI, and Mr. Ohmin Ahn, Executive Vice President at HHI, at the King Salman International Complex for Maritime Industries and Services in Ras Al-Khair, Saudi Arabia.

“We are pleased to further expand our partnership with HHI, one of our four founding JV partners and a key enabler of our progress to date. This agreement reflects HHI’s ongoing commitment to supporting our efforts to build a world-class shipyard capable of locally manufacturing VLCCs and other vessels, that will help drive the development of Saudi Arabia’s maritime industry,” said Ahmari.

Ohmin Ahn, said: “We are delighted to have signed this agreement with our partner, IMI. Working with IMI to leverage our technical expertise and facilitate knowledge transfer and capacity building, we are helping to contribute to the development of the Saudi maritime industry under Vision 2030.”

IMI is a joint venture between Saudi Aramco, Bahri, Lamprell, and HHI, and is the largest shipyard in the MENA region at nearly 12m sq m. It provides new build and maintenance, repair, and overhaul (MRO) services for commercial vessels, including VLCCs, Bulk Carriers, Offshore Support Vessels, and Offshore Jackup rigs.

Source: https://www.seatrade-maritime.com/shipbuilding/imi-and-hhi-sign-vlcc-technical-agreement

Brokers Poten & Partners European demand estimates have been revised dramatically upward by events in Ukraine with European consumers scrambling to reduce their dependence on gas from Russia. Poten’s forecasters have increased their views of European imports from around 85 million tonnes per annum (mta) in the mid – late 2020’s up to 110 mta, with some 18 mta – more than half of this growth, tied to consumption in Germany, predominantly, and Poland.

These countries, along with other European cargo receivers, are lacking the required facilities for receiving cargoes and there is a major role FSRUs to plug the gap.

Speaking on an LNG webinar Poten analyst Kristen Holmquist said: “In Germany alone, there are eight potential new projects, with two of those being onshore projects- but the rest are FSRUs.”

In talking about Europe more broadly, she said, “There’s a lot of activity, a lot of FSRUs being looked at…they are easier to start up, especially if you already have a port. It’s easier to ramp those up, and that’s what the region is looking for.” Noting the bigger decarbonisation trends on the horizon, she said, “It doesn’t have to be permanent; it’s easier to remove if renewables start to pick up more rapidly.”

Answering a question about what the future in Northwest Europe holds for FSRUs versus not yet constructed regasification terminals, Holmquist responded: “Not all these FSRU’s exist; we would be constructed new ones.” She said that in the longer term, out to 2032, there would be a need for onshore regas facilities.

However, turning again to what she called a “push pull with decarbonization” she asked, rhetorically, “Do you want to build an onshore regas terminal onshore if by 2040 you are not supposed to be using it anymore?” She said, “That’s why FSRUs are more attractive; when the contract is over, they can pull up their anchor and sail away…” to another engagement.

Recent concerns about reduced supplies from Gazprom have driven gas prices higher; however, short term cargo movements depend on price differentials between regions- also known as “arbitrage”. Greater price disparities enable vessel charterers to pay more for vessel hires.

Jefferies stock analyst Omar Nokta wrote, in a late July commentary to investors, that: “Higher prices are supportive of overall LNG shipping movements with liquefaction plants operating at high capacity, but tightened regional arbitrages have reduced spot shipping requirements following the latest price surge. Spot TFDE shipping rates are assessed around $44,000 per day as compared to 12-month time charter rates above $100,000 per day.”

Source: https://www.seatrade-maritime.com/offshore/european-lng-import-growth-set-drive-fsru-demand

Italian shipbuilding group Fincantieri continues to recover from the effects of the pandemic reporting record-high production volumes while the production increases and associated costs in part due to the war in Ukraine drove the company to a financial loss in the first half of 2022. Management however expressed confidence that they will be able to lower their ballooning debt while also re-focusing on core businesses to drive future growth.

“Second quarter results are negatively affected by the impacts of a strategic review of the non-core business portfolio, by the surge in raw materials prices caused by the Russian-Ukrainian conflict, and by other non-recurring items,” said Pierroberto Folgiero, the newly appointed chief executive and managing director for the group. He assumed his role on June 30 replacing long-term chief executive Giuseppe Bono.

Folgiero assumed the leadership as the shipyard group continues to be in a period of transition. Recent deliveries included two new cruise ships, Discovery Princess and Viking Mars, and a multipurpose offshore patrol boat for the Italian Navy, as well as the first patrol boat and second corvette for the Qatari Ministry of Defense. A total of eight ships from five shipyards were delivered in the first half of 2022, contributing to a 16 percent increase in net revenues to more than $3.5 billion.

The company, however, also reported declines in EBITDA, adjusted, and net income with a net loss of $237 million, driven in part by the record production and increasing costs. It also contributed to a more than $1.1 billion increase in the group’s debt since the end of 2021, reaching a total debt of more than $3.3 billion. Debt, they, however, forecasted as peaking and expected to improve at least slightly by year’s end.

“In the upcoming months, we will be fully committed in the core business, benefitting from the expected growth in defense and the resumption of the cruise market,” said Folgiero. Furthermore, we will pursue with great dedication those industrial projects fostering operational excellence both in Italy and abroad, while investing in our human capital.”

He predicted that the company’s results would improve in part as they deliver five additional cruise ships in the second half of 2022. He pointed to the increased production for those ships as well as the rescheduling of payments from the cruise company provided during the pandemic as impacting the short-term performance of the company. He also highlighted a rescheduled delivery from July to December and the associated financial costs.

All of the shipyard group’s segments are however reportedly showing positive trends. The group’s committed backlog stands at 93 vessels with deliveries scheduled to 2029 with a value of more than $24 billion. In addition, they have pending commitments for 20 additional vessels, including the first commitments in years for new cruise ships, with the potential for more than $10.5 billion in additional revenues. Other new orders included a third vessel for the U.S. Navy to be built by Fincantieri Marinette Marine in Wisconsin as well as two offshore vessels to be built by VARD in Norway.

The conflict in Ukraine was highlighted as a key driver of costs as it affected the steel supply chain and caused increased energy and natural gas costs. It also negatively influenced transportation and insurance costs for the group which builds sections in Romania and transferred them through the Black Sea to Italy where the yards complete ship assembly.

With the cruise industry continuing its comeback, management expressed confidence that with their focus on their core businesses the financial performance will improve. With the continuing delivery of cruise ships, they however are now the smallest segment of the orderbook, with 27 ships, versus 34 in naval orders and 32 for offshore and specialized vessels.

Source: https://www.maritime-executive.com/article/fincantieri-reports-financial-loss-as-production-reaches-new-record