Remote-controlled cameras will take over responsibility from U.S.-led peacekeepers for ensuring international shipping retains freedom of access to the Gulf of Aqaba, whose coastline is shared by Israel and three Arab nations, officials said.

Tiran island, which lies in the straits of the same name at the mouth of the gulf, was handed to Saudi Arabia from Egypt along with next-door Sanafir island in 2017.

During a visit to Israel and Saudi Arabia last week, U.S. President Joe Biden announced that the tiny Multinational Force and Observers (MFO) contingent on Tiran would depart.

The MFO monitors a 1979 U.S.-brokered peace accord between Egypt and Israel, which deployed peacekeepers across the demilitarized Sinai and – to ensure free movement in and out of the Gulf of Aqaba – atop Tiran.

The Straits of Tiran have a checkered history: Egypt blockaded them in May 1967, among triggers for its war with Israel the next month. The countries fought another war in the Sinai in 1973.

Any MFO redeployment from the island requires Egyptian, U.S. and Israeli agreement. None of those countries, nor the MFO, has publicly discussed when the contingent will leave nor what might follow.

But an official from one of the countries told Reuters: “The peacekeepers will be replaced by a camera-based system.”

Two officials from another of the countries said cameras already in place at an MFO base in the Egyptian resort of Sharm el-Sheikh, 4 km (2.5 miles) across the Straits of Tiran from the now Saudi-held islands, would be upgraded for the task.

A diplomatic source who has visited Tiran said the MFO had cameras there as well. Should such cameras be kept and operated, it could entail security coordination between Israel and Saudi Arabia, which have no formal ties.

A person in Washington familiar with the matter said the agreement called for cameras to be placed at the contingent’s existing facilities, leaving open the possibility of both Sharm el-Sheikh and Tiran as placement sites.

“It was important to Israel that as part of this process there be no compromising the commitment Israel got from Egypt, back with the peace deal, most importantly regarding freedom of shipping,” said Michael Herzog, Israeli ambassador to the United States.

“This matter has been addressed,” he told Tel Aviv radio station 102 FM.

Source: https://www.marinelink.com/news/cameras-replace-peacekeepers-strategic-498216


The Baltic Exchange’s main sea freight index rose on Thursday as an uptick in rates for smaller panamax and supramax vessels offset weakness in the capesize segment.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, was up 5 points, or 0.24%, at 2,118 points, snapping two sessions of losses.

The capesize index fell for the third straight session, losing 66 points, or 2.4%, to 2,653 points.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down by $553 at $21,999.

Dalian and Singapore iron ore futures dropped as investors shifted their focus back to gloomy China demand outlook after a short-lived boost from the latest government rhetoric on economic stimulus.

The panamax index was up 79 points, or 4%, at a nine-day high of 2,051 points.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, increased by $709 to $18,455.

German national railways Deutsche Bahn said it plans to start freight train services to carry Ukrainian grain exports to German ports for loading on ships.

However, the International Grains Council trimmed its forecast for 2022/23 global corn output, largely driven by drought stress in the European Union.

The supramax index rose by 16 points to 2,073 points, its highest since July 13.

Source: https://www.marinelink.com/news/higher-rates-smaller-vessels-lift-baltic-498215


Building on NAPA’s experience with the development and deployment of its Emergency Computer, this new framework is a significant development as it enables risk to be calculated more accurately from actual conditions. This could lead to significant improvements for passenger vessel safety, as lessons from the past have shown how important risk awareness can be to saving lives.

History has shown that the way watertight doors are operated on board can make a tremendous difference on ship safety in case of an accident. When a ferry collided with a cargo vessel off the coast of Sweden in 2004, the initial collision damage was limited to a single watertight compartment – but due to several open doors, flooding progressed to other compartments and water reached the engine room, putting the vessel at risk of sinking. This is a striking example of how open doors in watertight bulkheads can significantly increase the vulnerability of a ship when an incident such as a collision or grounding occurs, potentially endangering ship stability.

Past incidents have also demonstrated that the rapid closure of open watertight doors in case of an incident may not always be possible. For example, when a RoRo ship ran aground in Canada in 2006, a door became jammed with debris after the collision and therefore could not be closed. The vessel sank, and two passengers lost their lives in the accident.

A clear lesson learned from the past is that keeping watertight doors open for longer than necessary for the safe passage of crew can compromise the integrity of the ship. Aware of this fact, several shipping and insurance companies offer training to their crews on the safe operation of watertight doors. However, this is one of many important considerations, which also include human factors such as the mental workload of a ship’s navigator in crowded waterways or low visibility. Therefore, the evaluation of risk levels must include an assessment of how high workload for the crews increases navigational risk, which can ultimately lead to an accident in a given traffic and environmental situation.

Therefore, to understand the different complex factors involved and how they interact, we can think of the risk as the combination of two dimensions: a ship’s susceptibility to having an accident and its vulnerability to flooding as a result.

Susceptibility and vulnerability

A ship’s susceptibility consists in the likelihood of an accident and its potential consequences, depending on the waterway, traffic density, and environmental complexities. Vulnerability, on the other hand, relates to a vessel’s ability to withstand the effects of flooding, the main component of which is the effect of open watertight doors on damage stability.

Currently, these two elements are often treated separately, or the metrics don’t allow for the active control of the risks. SOLAS has evolved, in part as a result of past incidents, but the current IMO framework (Formal Safety Assessment) remains inadequate, with problematic definitions and a lack of precise quantification of the probabilities and consequences. The classical approach, a probabilistic model based on proximity indicators (such as distance and time to the closest point of approach), is insufficient.

We need a new approach that monitors the safety of a ship in a proactive manner, accounting for relevant and observable factors such as the status of watertight doors, navigator workload, nearby maritime traffic and bathymetry.

NAPA, in partnership with researchers from academia, set to work on the task several years ago. We have now developed a new framework for the onboard assessment and monitoring of flooding risk that can be used by both crew and shoreside personnel to make day-to-day operations safer and emergency response more effective.

How this works in practice

The new flooding risk framework is based on the actual operational conditions, and it can rapidly evaluate a ship’s vulnerability to flooding for any combination of open or closed watertight doors. It accounts for measurable risk-affecting factors influencing an accident and its aftermath, using data on surrounding maritime traffic and bathymetry. Additional pre-calculated and vessel-specific damage stability risks enable rapid flooding risk assessment.

Rather than determining the risk purely as a mathematical probability, the framework defines both susceptibility and vulnerability in a way that informs stakeholders on the available decisions that can be taken to reduce risk while also accounting for inherent uncertainties.

Risk framework for ship susceptibility and vulnerability

 

A susceptibility index distinguishes dangerous situations from moderately hazardous and non-hazardous ones, based on factors such as the complexity of the waterways, the traffic and the environment. This aligns with onboard navigational practices where the navigator should detect and avoid collision situations.

A vulnerability index estimates the decrease in survivability of the ship due to open watertight doors and factors such as sea state. It distinguishes between various accident scenarios by assigning them a level ranging from low, moderate, high and very high. Although a qualitative result, it is based on extensive computations.

Bringing these two indexes together, a colour-coding system is used to distinguish among risk levels and to foster clear communication in an emergency situation. For good visibility conditions, the highest risk is when a ship is exposed to hazardous encounters with other ships or land, and the vulnerability is also high or very high if numerous watertight doors are open. At the other end of the scale, a ship faces low risk when it is safe from hazardous situations and few, if any, doors are open.

Color coding for ship vulnerability level

In regular ship operations, a very high risk (colour code: black) should be avoided because it leaves little or no room for improvement in case of an accident. The bridge team should not allow such situations to develop. A moderate risk (colour code: yellow) is acceptable for longer periods only when it is dictated by the operational environment or when maintenance work requires open watertight doors. Long periods of high-risk situations should always be reviewed afterwards with the aim of improving practices to avoid such situations in the future.

Managing risk proactively

NAPA Emergency Computer for vulnerability monitoring

Building on existing NAPA solutions including NAPA Emergency Computer and Status Board and NAPA Fleet Intelligence, the new framework should be seen as an operational guidance tool for the crew, allowing them to take proactive risk mitigation actions that will reduce susceptibility, vulnerability, or both. This dynamic safety barrier increases the crew’s situational awareness and ship safety, as being aware of risks makes you act on minimizing them.

Cloud-based real time monitoring of flooding risk

A cloud-based solution enables the real-time monitoring of the flooding risk for a fleet, and feedback from shore-based experts can be used to improve practices onboard.

The required input data for the framework (actual loading condition, watertight door status, AIS data for nearby ships, bathymetry, and weather now-case) is already available through various systems, but not yet integrated into a single platform for risk monitoring. As most of the required input data is readily available from the automated systems on board, we believe that our new framework for the onboard assessment and monitoring of flooding risk could easily be installed on board the existing fleet.

It is important that passenger ship operators, onboard and shoreside, understand the importance of continuously and proactively monitoring the flooding risk factors of a ship, to enhance safety throughout the voyage at sea. In our next blog, we will demonstrate the power of the new framework to help them do this through practical case studies.

Source: https://maritime-professionals.com/how-vulnerable-is-your-vessel-to-flooding/


Speaking at a webinar hosted by Container xChange on the subject Demurrage and Detention trends in 2022—and how to navigate them, analysts shared their container market outlooks and predictions for demurrage and detention costs going forwards.

“We’ve started to see shippers really struggle with these increasing fees for containers that have been stuck in port and returned late, a situation that for many shippers is really beyond their control,” said George Griffiths – Editor, Global Container Freight, S&P Global Commodity Insights.

“Many, many carriers and operators have introduced strict free time parameters, and as a result these charges for delays have been levied against the shippers. They’ve become a really significant cost centre for shippers. Previously, this was a transient cost, people didn’t really look at it. People didn’t really pay that much attention to demurrage and detention.”

The issue has become thorny as free days limits were cut and detention and demurrage costs rocketed to around $100 per day in the wake of the pandemic, said Griffiths.

“2021 saw a major major spike in these charges,” said Candice Buckle, Content Marketing Manager, Container xChange, sharing data from the company’s annual Demurrage and Detention benchmark report.

“In fact, the global average increase was 39% for standard containers alone… the charges for 20 distribution centres alone doubled in 2021. If we look at what the state is today in 2022, you’ll see that in a lot of areas the trend in 2022 is decreasing slightly. For some outlier ports, like Long Beach and Los Angeles and Shanghai, they actually increased so that that ended up with the value in 2022 still being higher than pre-pandemic value by 12%. So even today, the spike is still pretty pretty much there,” said Buckle.

Chantal McRoberts, Head of Advisory, Drewry Supply Chain Advisors explained the root of rising detention and demurrage charges.

“It’s disruption, disruption, disruption, driving an increase in detention and demurrage charges. If there’s a shortage of drivers, a shortage of physical people and vehicles to get the containers into the ports and out of the ports, it consequently increases the DND charges,” said McRoberts.

“I spend most of my time these days providing therapy to shippers, whether it be freight rates or detention and demurrage. Everybody is focusing on these cost items and unfortunately, if you’re a shipper right now, your CFO is looking at all the bills and invoices coming in and asking ‘why am I paying for this?’”

Looking ahead, the panel did not have much good news for shippers hoping for respite in the medium term.

“These are heavily congested ports and terminals, and they have been for a very long time. We’re tracking this to AIS data at Drewry and everything is still in the red. Nothing is moving into the amber and if it is, it’s at the upper end of the amber still about to tip into the red side. We’re seeing that still continuing at the large US ports,” said McRoberts.

While forecasting a softening in total detention and demurrage costs, McRoberts warned that if US port congestion continues and spills into secondary ports, costs will rise. The scenario is very location specific, she said.

On the freight rate side, both Griffiths and McRoberts forecast spot rates continuing to fall, but not to anything like pre-pandemic levels.

Asked how he expects the peak season to play out this year, Griffiths’ answer was straight forward. “I would just say – what peak season? We always say that rates go up quite a lot in this time of year but they’re just not at the moment,” he said.

Even with a slight easing in demand and vessels on voided sailings being used to clear up issues, the task of unravelling the disruption is massive.

“I firmly believe if nobody wants to ship anything on a container in the next six months, we still wouldn’t fix the issues that we’ve got in the market at this point. The market is really snarled up, and it’s gonna take a lot of effort to fix it,” said Griffiths.

Moderator Christian Roeloffs, Co-founder and CEO, Container xChange, added: “We’ve always compared it to a traffic jam. If there’s an accident and a traffic jam forms, even if the accident is cleared up it still takes a very, very long time for traffic to actually flow again… it’s not the case that you just resolve the blockage and then everything flows.”

McRoberts agreed that peak season was not going to be usual this year, “because of the massive inventory levels that have been building up. I think if you speak to a lot of shippers right now, they’ve got a lot in their warehouse that they need to move and demand is falling. So they’re feeling a little reticent about all of that,” she said.

Source: https://www.seatrade-maritime.com/containers/peak-season-what-peak-season


NYK revised its recurring profit forecast for the first half its financial year, 1 April 2022 – 30 September 2022, to JPY720bn ($5.19bn) from JPY440bn previously. Forecast revenues for the period were also upped to JPY1.3trn from JPY1.16trn previously.

For the full year ended 31 March 2023 NYK revised its recurring profit forecast JPY1.04trn up from JPY760bn previously, while the revenue forecast increased to JPY2.5trn from JPY2.3trn previously.

Giving the reason for the revised forecast NYK said it had previously expected a decline in demand due to Chinese lockdowns and war by Russia in Ukraine, with liner cargo and spot rates expected to decline.

However, amid ongoing supply chain disruptions, we expect the profit of our equity method affiliate Ocean Network Express (ONE) to exceed expectations due to the continuing favorable market conditions resulting from robust shipping demand and other factors,” the company said.

It is similar picture for compatriot MOL. For the first half of the year financial year 1 April 2022 – 30 September 2022 it has revised up its net profit forecast to JPY500bn from JPY350bn previously, with revenues for the period upped to JPY770bn from JPY695bn previously.

For the full year ended 31 March 2023 it has increased its net profit forecast to JPY710bn from JPY525bn previously, while revenue expectations have increased to JPY1.47trn from JPY1.35trn previously.

Explaining the revision MOL said: “At Ocean Network Express (ONE) the company’s equity-method affiliate that operates containership business, cargo movements and spot freight rates are both exceeding the Company’s expectation at the time of the previous announcement on April 28th, 2022.”

It also noted “solid” dry bulk and car carrier markets.

Source: https://www.seatrade-maritime.com/containers/mol-and-nyk-profit-forecasts


St. Johns Ship Building was recently acquired by Americraft Marine Group, a maritime subsidiary of the US-headquartered privately-owned business group, the Libra Group which has 45 years of maritime heritage through its original subsidiary Lomar.

The event marked the first in a series of vessels under construction at St. Johns for Windea, a partnership of Hornblower Wind and MidOcean Wind,  that will go into service at the Vineyard Wind I construction project near Martha’s Vineyard, Massachusetts.

“We could not be happier to have Hornblower and their partners return to St. Johns Ship Building to build the vessels that will help America move closer towards energy independence and a cleaner, healthier environment for generations to come,” said Ed Sheets, executive vice president and director of business strategy for Americraft Marine Group.

The construction of this series of Incat-designed vessels also signals the official launch of St. Johns Ship Building’s new focus on dedicated high-speed aluminum vessel production. The Incat 30 is a 30-metre crew transport vehicle with a max speed of 29 knots and made of marine-grade aluminium.

The groundwork for this focus on supporting the construction of Jones Act-compliant CTVs was laid more than two years ago through multiple facility modifications and the acquisition of new production equipment for processing of non-ferrous metals and composite materials.

“Our efforts are reinforcing the industrial strength of US shipbuilding, and we remain prepared to construct and repair almost all of the various vessel types that will be required to support the future of this country’s offshore wind development needs,” added Ed Sheets, executive vice president and director of business strategy for Americraft Marine Group.

Source: https://www.seatrade-maritime.com/shipyards/keel-laying-jones-act-compliant-crew-transfer-vessel


Striking subcontractors at South Korea’s Daewoo Shipbuilding and Marine Engineering yard have reportedly decided to accept management’s offers and end their prolonged strike and occupation of a VLCC tanker under construction at the yard. In a report first carried by Reuters and confirmed by Korean media, the subcontractor’s union has agreed to end its action if DSME agrees not to pursue legal cases against the union for damages.

Faced with increasing pressure from the government and with the potential of police intervention growing, the union and representatives of the shipyard resumed negotiations. Initial reports said the two sides remained far apart with DSME firm on its offer of a 4.5 percent wage increase in response to the union’s demands for up to a 30 percent increase. Recent reports said that the union was now seeking a 5 percent increase along with the agreement not to seek damages due to the strike.

South Korea’s news agency Yonhap is reporting that the police are prepared to move to end the strike at any time. The news agency said the police would respond if the current negotiations failed. Earlier, South Korea’s president Yoon Suk-yeol hinted at the use of police saying the time had come to end the illegal action.

Yonhap also noted a softening in the tone of the president’s remarks on Thursday. At the beginning of the week, Yoon voiced harsh criticism over the now 50-day long strike. This morning he said the people wish the strike to come to an end. He said a quick resolution would be helpful to everyone.

While the union representing DSME’s full-time employees has also been critical of the strike, the workers said they would stand with the strikers if the police attempted to move in to end the occupation. They have said there must be a negotiated settlement while also saying the occupation should end.

DSME continues to say that the strike has cost the company more than $400 million. On Wednesday, a spokesman told Reuters that the shipyard was delaying deliveries for eight vessels under construction for anywhere from two to five weeks.

Concerned by the prolonged strike, Business Korea reports that South Korea’s largest shipbuilder, Hyundai Heavy Industries Group convened a meeting of its divisional presidents to discuss the business environment in shipbuilding. They reported that the company said what has been a booming period is evolving into a crisis. They pointed to the impact of rising costs, global inflation, and the war in Ukraine as creating challenges.

Business Korea reports that Hyundai is also commencing contract negotiations with the unions at its three shipyards. In a first-ever move, the three unions have come together with a unified demand for a 7.5 percent wage increase as well as several smaller concessions.

Source: https://www.maritime-executive.com/article/union-offers-to-end-dsme-shipyard-strike-after-days-of-pressure


Thunderball has offer £0.09 per share for Lamprell which values the company at £38.8m, assuming the exercise of full rights under a share issue plan.

Blofeld holds a 25.5% stake in Lamprell and is associated with the yards joint venture partners in Lamprell Saudi Arabia. Sami AlAngari, a person acting in concert with AlGihaz.

Blofeld in wholly-owned Osama AlSayed the controlling shareholder and chairman of Jeddah-based Asyad Holding Group.

As part of the offer Maverick Investments, a company controlled by the AlSayed family and AlGihaz has extended a bridging loan facility of up $145m to Lamprell Energy, which is available to be drawn down in tranches.

Lamprell faces “urgent and severe liquidity constraints” with funding obligations of $95m due by end July. It also has medium-term financial commitments of $164m.

The bidder plans to take Lamprell private, delisting from the London Stock Exchange on completion of the takeover. “Operating as a private company with a simplified corporate structure and a reduced regulatory burden, Lamprell will be able to benefit from the elimination of the numerous costs associated with maintaining a UK public quotation as well as the removal of the short-term financial expectations of the market,” it said.

The bidder said it believed in: “Lamprell’s high quality pipeline has the potential to convert into a high margin backlog and believes that the market segments in which Lamprell operates are underpinned by positive long-term fundamentals.”

Source: https://www.seatrade-maritime.com/finance-insurance/lamprell-board-recommends-464m-takeover-offer


Despite predictions that the long downturn in the cyclical tanker market might be bottoming out, shipowners are remaining on the sideline holding back on new shipbuilding orders. Shipbuilding orders in the segment have reached a new low with industry trade group BIMCO forecasting that it is likely to cause a decline in the global tanker fleet in the near term. However, the contraction in the global fleet might be the good news needed to start the long expected, but frequently delayed, rebound for the sector.

In a new analysis of the shipbuilding market, BIMCO chief shipping analyst Niels Rasmussen reports that orders for both crude oil and product tankers reached a new low for during the first six months of 2022. “Unless contracting picks up, it seems that we may see both the crude and product tanker fleet reducing in size in the coming years,” forecasts Rasmussen.

By the numbers, BIMCO’s data shows that a total of just 23 new tankers were ordered so far in 2022. This amounts to a total of just 1.6 million dwt compared to a previous low of 3 million dwt in 1999. Orders included just three new crude oil tankers and 19 product tankers.

“The orderbook for to fleet ratio is at 5.1 percent for both crude and product tankers,” writes Rasmussen. He concludes that the ratio has not been this low since 1996, 28 years ago during another down cycle in the industry.

UK analysts at Clarksons Research made similar observations in their recent mid-year analysis of the shipbuilding industry. “The tanker orderbook is now the smallest it has been in 25 years,” wrote Clarksons. They calculated that there are just 35 million dwt in orders in the crude and product tanker categories. By comparison, containerships jumped to lead with the global orderbook reaching 72.5 million dwt as of mid-2022.

Despite improved freight rates and a positive market outlook as the tanker sectors seeks to respond to the sanctions on Russian oil, shipowners are holding back on orders. Rasmussen highlights several factors that are likely contributing to the reluctance to place orders. Shipbuilding prices skyrocketed in 2022 surging to their highest levels in 14 years. Further, weighing on the entire shipbuilding industry is an uncertainty over future technologies and increasing emissions regulations. Ship owners have been looking for the best technologies to future proof their investments, with Bimco highlighting that at the moment they are generally favoring LNG with most orders although methanol is drawing increasing attention in shipbuilding.

Near-term, Rasmussen expects that with the decline in orders that size of the global fleet will contract. He points to a projected rate of three percent for demolitions each year while the current build ratio remains low compared to the fleet size. Further, BIMCO highlights that up to seven percent of the tanker sector is now at least 20 years old while nearly a quarter is approaching 15 years in service.

They forecast that the contraction in the fleet, continued demand for oil in the near term, and potential freight rate increases as the markets rebalance in 2023 after the EU’s ban on Russian oil starts, are likely to create the need for new shipbuilding orders. Until those orders can be completed, carriers are likely to see a strengthening in the market as excess capacity declines, but longer-term term BIMCO points to increasing uncertainty as oil demand is expected to peak in the coming decade as the world accelerates its transition to new forms of energy.
Source: https://www.maritime-executive.com/article/tanker-shipbuilding-orders-reach-new-low-says-bimco


The U.S. Justice Department’s mission to seize Russian megayachts has an air of glamor rarely found in the world of sanctions enforcement, but the capture of the yacht Amadea at Fiji appears to be the most glamorous yet.

At the Aspen Security Forum on Wednesday, U.S. deputy attorney general Lisa Monaco – the second-in-command at DOJ – told attendees that a yacht seized in Fiji and recently delivered to San Diego turned out to have a special surprise on board. She did not name Amadea specifically, but it is the only yacht fitting that description.

“Let’s get to the juicy stuff: the yachts,” she said. “We recovered a Fabergé – or alleged Fabergé egg – on one of these so it just gets more and more interesting.”

The Fabergé eggs are a series of intricate, handmade jeweled boxes and “surprises” produced primarily for the Romanov family in the waning years of the Tsardom of Russia. From 1885-1917, the year of the Bolshevik revolution, the jewelers of the House of Fabergé made a series of 52 unique eggs for Tsars Alexander III and Nicholas II. Another 17 were produced for other customers. Today, a total of 57 eggs are known to survive in museum collections, government ownership or private hands.

Fabergé eggs trade for amounts in the range of $12-20 million – well within the means of the Amadea’s alleged owner, sanctioned Russian oligarch Suleiman Kerimov, a billionaire with ties to Russian President Vladimir Putin. Kerimov is not a listed owner of Fabergé eggs, but may be among the small number of undisclosed private owners who hold a handful of these artifacts.

Further high-value art seizures might be ahead as the DOJ’s “Project Klepto-Capture” continues. Oligarch Viktor Vekselberg owns more than 20 Fabergé eggs, along with about 1,000 other items made by the House of Fabergé; his yacht was seized in Mallorca, Spain in early April.

The U.S. hopes to auction the seized assets of sanctioned Russian oligarchs and forfeit the proceeds. The Justice Department has asked Congress to create the legal authority to donate the funds to Ukraine for purposes of repairing damages caused by the Russian invasion; it has also sought legislation extending the statute of limitations for certain financial crimes in order to enable a long-term pursuit of sanctioned Russian assets.


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