All 25 crew on a motor vessel survived on Tuesday evening. The vessel burst into flames in the waters off East Java’s Paiton coast in the Probolinggo District.
Slamet Prayitno, the Adjunct Commissioner and Chief of the Water Police Unit based at Probolinggo District Police said that based on the information received, crew members managed to survive. He added that they would be taken to the Indonesian Navy post in Paiton.
The motor vessel caught raging fire close to the Paiton special terminal on the route that extends from the fishing port on Mayangan Coast to the fishing ground in Aru, Timor, and the Arafura Sea.
Image for representation purpose only
Herman Yulianto, a spokesman associated with the Port Authority and the Probolinggo Harbormaster’s Office said that he made a distress call to other ships in the area to help out, after the fire incident was reported.
He informed that four tugboats — JKW Pelita 1, Banyak, Intan Megah 20, and Bomas Potenza — helped in putting out the flames and evacuating crew members.
The primary cause of the fire still remains unknown.
A joint European / Japanese research project aims to lower the energy requirements and costs for manufacturing green methanol, the future fuel of choice for Maersk and one of the leading candidates for decarbonizing deep-sea shipping.
Methanol can be synthesized from carbon dioxide and hydrogen at high temperature, then converted to methanol for use as fuel. If the carbon comes from CO2 capture and the hydrogen feedstock is produced using renewable power, the product – green methanol – is considered a net-zero fuel.
However, it takes a lot of energy to make. CO2 is a stable, unreactive molecule, and it takes a push (a catalyst and a lot of heat) to get it to react with hydrogen. In 2018, researchers at Penn State found a way to do it using a palladium-copper catalyst at a relatively cool temperature of 350-480 degrees Fahrenheit, but this is still quite hot. Maintaining that kind of temperature requires industrial scale heating, which raises energy consumption and cost of production.
Courtesy Laurelin
The Laurelin project, a four-year international research initiative, hopes to cut that cost down. Its experts hail from Belgium, Germany, Japan, Netherlands, Spain and the United Kingdom, and they are combining their efforts to survey multiple combinations of catalysts and reaction chambers in search of the best arrangement.
“Reducing the e-methanol production costs would lead to an increase in the opportunities to use it as fuel. This would directly benefits society thanks to the reduction in GHG emissions and costs, creating further jobs and wealth,” explained Professor Teruoki Tago of the Tokyo Institute of Technology.
The team will test out more than 100 different catalyst materials and three reactor technologies (microwave heating, magnetic induction and plasma induction). “Catalysts are the key for methanol to become the main product, minimising the production of undesired complex mixtures,” explains Adolfo Benedito Borrás, head of technical coordination for the project.
If successful, the Laurelin project’s efforts would complement the push for higher efficiency in green hydrogen production, and would help expand the availability of green methanol for shipping.
The initiative has about $4.8 million in funding from the EU and additional funding from Japan.
The UK MAIB has published a report on the death of a chief officer who was struck in the head by a tensioned mooring line aboard a bulker in 2021, finding that a short-handed operation and an unfamiliarity with the mooring arrangement contributed to his death.
On August 29, 2021, the bulker Teal Bay arrived at Kavkaz, Russia, to rendezvous with a transloading vessel and take on grain from small powered barges. With guidance from the local pilot, Teal Bay tied up with the geared bulker Kavkaz V on the Kavkaz’s port side. The crew had never made fast to another vessel of this size, nor had they conducted ship-to-ship loading operations in this manner before. They used a combination of three head lines, three stern lines, two bow spring lines and two stern spring lines. (Spring line naming conventions vary among maritime nations, and “stern spring line” refers here to an forward-leading spring line originating from the stern.)
The transloading operation got under way, and the crane operators aboard the Kavkaz V scooped up grain from small barges on Kavkaz’s starboard side, swung the cargo over the deck and over the port side, depositing it into Teal Bay’s holds. As the operation proceeded and her holds filled up, Teal Bay’s freeboard decreased. Over the course of the next day, her main deck level dropped to about 25 feet below the deck of the Kavkaz, and her mooring lines took on an upward lead.
At about 2220 on August 30, loading was nearly complete. The third officer aboard Kavkaz V asked Teal Bay to move ahead so that the crane operator could reach another part of Teal Bay’s hold. Teal Bay’s master decided to warp ahead, since this was a small move. He could have treated this as a full mooring operation per the SMS, but this would have meant waking up the off-watch crew to add more personnel on deck. He did not want to wake the crew, so he sent the chief mate to the stern and the third mate to the bow, each with one AB.
At about 2235, as the team on the bow slacked off their spring line, the AB on the stern spring line activated the winch to pull in and warp the ship ahead. The line was run through an open roller fairlead, and the chief mate was standing next to the fairlead near the deck edge, where he would have been able to watch and supervise the evolution. As soon as the line came under tension – with a vertical lead towards the Kavkaz’s higher main deck level – the line popped up and out of the roller fairlead and struck the chief mate in the head. He fell immediately unconscious to the deck.
The open fairlead and chief mate’s position (far left) and a diagram of the mooring arrangements (MAIB)
The open fairlead (center) and the substantial height difference between the decks of the Teal Bay and Kavkaz (MAIB)
The local maritime rescue coordination center was contacted and Teal Bay’s second officer gave the chief mate first aid, including oxygen. The victim had a pulse and was breathing, and there were no outward signs of injury.
A tug arrived to evacuate the victim at 2316, but the crew would not take him aboard before receiving permission from the port. Alternate arrangements for a helicopter were discussed but none were available. The tug ultimately took the chief mate aboard, getting under way for shore at 2350. At this point, the officer’s pulse had weakened. By the time a paramedic met the tugboat at the pier at 0045, the chief mate had no vital signs.
An autopsy determined that he had died from a brain hemmorhage resulting from blunt force trauma.
Through its investigation, MAIB determined that the crew’s decision to run the line through an open roller fairlead, combined with the vertical lead from the deck of the Teal Bay to the deck of the Kavkaz, allowed the line to pop out of the fairlead when it came under tension. The appropriate choice would have been to select a closed roller fairlead; the crew may not have known this as they were unfamiliar with this particular mooring operation. No risk assessment was conducted before the evolution, and so the opportunity to identify this hazard was lost.
The short distance of the move and the desire to complete the loading operation quickly could have motivated the master to warp ahead without making a fuller assessment of the situation. As the captain did not bring out the crew for a full mooring operation, the chief mate was operating with fewer people on hand than he usually would have, and was tasked with supervising both the aft deck and the evolution as a whole. If the full crew had turned out, the chief mate would not have been on the stern.
The extra time taken up in making medevac arrangements reduced the officer’s chances of survival, MAIB determined, though it is impossible to know whether he would have survived even with prompt care.
Among other post-casualty recommendations, the shipmanager has been advised to remove all open fairleads from its fleet and replace them with closed or universal type fairleads, which will not release a line with an upward lead.
HMM will expand its service network with an eco-friendly container fleet of 1.2 million TEU by 2026.
HMM also plans to secure logistics infrastructure such as terminals in key locations to reinforce its profit structure.
Moreover, the bulk fleet will be cemented with a fleet of 55 ships, substantially increased by 90 per cent from the current 29 ships.
HMM will plough its funding into a range of initiatives, including securing core assets such as ships, terminals, and logistics facilities throughout the upcoming five years from 2022 to 2026.
The firm will continue to enhance environmentally-friendly services for carbon neutrality in 2050 and explore the likelihood of ordering ships using alternative fuels in the future. HMM will also make enterprise-wide R&D efforts into the use of carbon-neutral fuels in cooperation with industrial players, the company said in its announcement.
On digitalisation, HMM recently launched ‘Hi Quote’, an online sales platform based on its own technological capabilities. HMM plans to integrate its inland logistics network into Hi Quote and apply freight rate solutions powered by Artificial Intelligence at a later date.
Kim Kyung Bae, HMM President & CEO, said: “Our strategy is to ensure perpetual growth of HMM under the new vision – a global leading company generating sustainable value for the world.
“We will continue to drive efforts for contribution to the global community.”
Panama Canal Authority (PCA) said the new structure will assume a simplified, value-based pricing structure, reducing the number of tariffs from 430 to fewer than 60.
On transits of vessels in ballast condition for all market segments except for containerships, tolls will be calculated by applying 85 per cent of the laden toll instead of the originally proposed 9 per cent.
On containerships, the charge for empty containers will be reduced to $2/TEU in 2023, $4/TEU in 2024, and $6/TEU in 2025, instead of the $5, $6.50, and $8 that were initially proposed for each year, respectively.
All other tariffs will be implemented gradually from January 2023 to January 2025 at the originally proposed levels, including the proposed modifications to the loyalty program for containerships, which will be phased out by January 2025.
Incentives for return voyages applicable to containerships and liquefied natural gas (LNG) vessels will be eliminated by January 2023 when the new structure comes into effect.
“The proposal aims to strengthen the tolls structure in a way that is consistent with the value provided by the Canal transit service while providing greater visibility and predictability to customers,” said Panama Canal Administrator Ricaurte Vásquez Morales.
The tolls proposal was issued on 1 April 2022 and went through a formal consultation period during which 17 interested parties submitted their comments or opinions in writing.
The public hearing was held in Panama on 20 May 2022 with the participation of seven parties, representing local and international customers.
The visibility charge currently applied to full container vessels, and classified as Other Marine Services, will be eliminated prior to the implementation of the new tolls to avoid an overlap with the Total TEU capacity (TTA) charge.
The PCA said the maximum length overall (LOA) for regular transits of the Neopanamax Locks is 370.33 metres, an increase from 367.28 metres.
The increase means that now 96.8 per cent of the world’s fleet of containerships can transit the Panama Canal, shortening routes and benefiting economies around the world.
Container xChange’s new Demurrage & Detention Benchmark 2022 report, published today, compares Demurrage & Detention (D&D) rates* imposed on customers by the world’s ten largest shipping lines across 60 of the world’s biggest container ports.
The report notes that global average D&D charges levied by container lines on customers two weeks after cargo were discharged from the vessel increased by 38% for standard-sized containers from $586 in 2020 to $868 in 2021. So far in 2022, average D&D charges by major ports have declined to an average of $664 per container by 26%, although fees remain far higher than pre-pandemic at around 12%.
The U.S. came out worse regarding D&D costs in regional comparisons in Container xChange’s Demurrage & Detention Benchmark 2022 report. By region, D&D charges in May in the US were the highest at $2,692 per container. This compared to $549 in Europe, $482 in India, $453 in China and $366 in the ‘Rest of Asia’.
“Throughout this pandemic, as shipping costs have soared and inflation has become a threat to the global economy, it has become critical for shippers to develop visibility into container operations to manage costs like Demurrage and Detention. China leads the world in maritime exports and even though it has some of the busiest ports in the world, they’ve ensured they are the most efficient – even during lockdowns.” said Christian Roeloffs, co-founder of Container xChange.
Shanghai, Qingdao and Ningbo – which are 3 of only 8 ports that increased in Demurrage and detention (D&D) charges in 2022, still exhibit a much lower D&D charge in general, ranking #43, #52 and #42 on the global list respectively. On average, the D&D charges at these 8 Chinese ports rose from $390 in 2020 to $700 in 2021 – a staggering rise of 79.4%. The average D&D charges for these 8 ports in China fell to $614, declining by 12.2%.
For Hong Kong, where the container congestion was the worst, there was a 105% hike in its D&D charges from $813. Hong Kong recorded a fall of 8.9% in its D&D charges, coming down to $1515. The trend reversed slightly, with D&D charges falling in some of the major ports but continuing to increase in Dalian, Ningbo, Qingdao, and Shanghai.
Yichang, Rugao & Zhenjiang in China are amongst the ports with the lowest demurrage and detention charges after two weeks.
“The main reasons for lower congestion in ports like Busan, Qingdao, and Port Kelang are higher port productivity combined with less COVID-19 restrictions. Furthermore, fewer imports were received in these ports, which have also fewer direct calls from the major shipping lines. This helped achieve better productivity. Port Kelang and Qingdao had equipment shortages during the pandemic, therefore, you can see fewer D&D charge occurrences. In addition, Busan is also one of the largest transhipment ports in Northeast Asia. And although its container capacity is the largest, a considerable proportion of its traffic is not destined to South Korea.”, commented Drewry, a shipping maritime research company.
Source: Container xChange
The value of global trade rose to a record US$7.7 trillion in Q1 2022, an increase of about $1 trillion relative to Q1 2021, according to UNCTAD’s Global Trade Update published on 7 July.
The growth, which represents a rise of about $250 million relative to Q4 2021, is fueled by rising commodity prices, as trade volumes have increased to a much lower extent. Though expected to remain positive, trade growth has continued to slow during Q2 2022.
“The war in Ukraine is starting to influence international trade, largely through increases in prices,” the report says. It adds that rising interest rates and the winding down of economic stimulus packages will likely have a negative impact on trade volumes for the rest of 2022.
Volatility in commodity prices and geopolitical factors will also continue to make trade developments uncertain.
Trade growth strong for both developed and developing countries
According to the report, trade growth rates in Q1 2022 remained strong across all geographic regions, although somewhat lower in the East Asia and Pacific regions.
Export growth has been generally stronger in commodity-exporting regions, as commodity prices have increased.
Trade in merchandise goods reached about $6.1 trillion, an increase of about 25% relative to Q1 2021, and a jump of about 3.6% relative to Q4 2021.
The value of merchandise exports from developing countries was about 25% higher in Q1 2022 than in Q1 2021. In comparison, this figure is about 14% for developed countries.
Merchandise trade between developing countries also strongly grew during Q1 2022. Trade in services grew to about $1.6 trillion, an increase of about 22% relative to Q1 2021, and a rise of about 1.7% relative to Q4 2021.
Substantial increases across sectors
The report shows that most economic sectors recorded substantial year-over-year increases in the value of their trade in Q1 2022.
High fuel prices are behind the strong increase in the value of trade in the energy sector. Trade growth was also above average for metals and chemicals. By contrast, trade in the transportation sector and in communication equipment has remained below the levels of 2021 and 2019.
Slower economic growth, war in Ukraine dim prospects
The report says the evolution of world trade for the remainder of 2022 is likely to be affected by slower-than-expected economic growth due to rising interest rates, inflationary pressures and concerns over debt sustainability in many economies.
The report states that the war in Ukraine is affecting international trade by putting further upward pressure on the international prices of energy and primary commodities.
In the short term, because of the inelastic global demand for food and energy products, rising food and energy prices would likely result in higher trade values, and marginally lower trade volumes.
Other factors expected to influence global trade this year are continuing challenges for global supply chains, regionalization trends and policies supporting the transition towards a greener global economy.
A Pakistan delegation led by Secretary Commerce, Sualeh Ahmad Faruqui will visit Afghanistan on July 17-18, 2022 for talks on import of coal for power generation, well informed sources told Business Recorder.
The delegation visit is scheduled amid threats by Chinese company generating electricity on imported coal that they will revert to South African coal if NEPRA fails to resolve its issues related to payments.
Sharing the details, sources said, during the third meeting of Border Management Committee (BMC) under the chairmanship of Federal Minister for Defence, Khawaja Asif it was decided that a working level delegation will be sent to Afghanistan to discuss the issues related to cross-border trade of coal.
Proposed composition of the delegation as follows: (i) Secretary Commerce (Lead); (ii) Additional Secretary-1, Power Division; (iii) representatives from Military Operation Directorate; (iv) representatives from Inter-Services Intelligence (ISI); (v) Director General Afghanistan, Ministry of Foreign Affairs; (vi) Riaz Ahmed Khan, Joint Secretary (PE/FIA), Ministry of Interior; (vii) Mariya Qazi, Joint Secretary, Ministry of Commerce; (viii) Brig Muhammad Abid, Director Border Terminals, NLC; and (ix) Ahmed Raza Khan, Chief Collector KPK, FBR.
Key issues for discussion include declaration of 24/7 operations at Torkham, Kharlachi and Ghulam Khan border terminals, deployment of additional HR to ensure smooth operations, improvement in infrastructure on Afghan side and cross border movement of vehicles.
The sources said expenditures in respect of participation of members of delegation will be met through their respective organisations/ministries.
Source: Business Recorder
Dockworkers across major North Sea ports in Germany have yet again paralyzed operations after staging the longest strike in four decades following the collapse of the latest round of negotiations to resolve a protracted collective bargaining agreement dispute.
Trade union giant United Services Union (Ver.di) has called for a 48-hour workforce strike across terminals in the country after collective labor agreement negotiations with the Central Association of German Seaport Companies (ZDS) failed to reach a successful conclusion. The strike, set to run from 0600 on Thursday until 0600 on Saturday, is the third industrial action in as many weeks and the longest in more than 40 years.
German container shipping line Hamburg Süd said that it has been forced to observe a full stoppage for rail, road and ocean freight for both import and export across its German terminals for the duration of the strike. It directly affects operations in Bremerhaven, Hamburg and Wilhemshaven.
“We have evaluated all impacted vessels and have no plans to omit ports or stop operations. Our aim is to return to business as usual serving your global logistics needs from 0600 on Saturday,” said Hamburg Süd in a statement.
The company added that in the interest of minimizing any further disruption to supply chains, it will be keeping a close eye on developments up to and during the next round of negotiations between ver.di and ZDS.
“Please note that at this stage, negotiations are still ongoing between the parties and there could be changes to the scheduled strike action at the very last minute, including the possibility of an agreement being reached and the strike being cancelled,” it said.
The longstanding collective bargaining agreement dispute has paralyzed operations at Germany’s busiest ports owing to the fact that ver.di represents approximately 12,000 workers at the seaports of Emden, Bremerhaven, Bremen, Brake, Wilhelmshaven and Hamburg.
In the dispute that has involved six rounds of negotiations all ending in a standoff, ver.di is demanding a 14 percent increase across the 58 collective bargaining companies including at the primary ports of Hamburg and Bremerhaven. The union is also demanding an annual bonus of up to $1,200 due in part to rampant inflation, which is driving up the cost of living.
During the sixth round of negotiations last week, employers tabled an offer that included a permanent increase in wages from June 1, 2022 of between 5.18 percent for employees in automobile handling and eight percent for employees in full container companies as well as 3.5 percent for companies with job security. From June 1, 2023, wages are then to increase permanently by a further 3.1 percent, or two percent for companies with guaranteed employment, over a total period of 24 months.
While ver.di termed the offer of a permanent increase in wages of eight percent for the employees of the full container companies as welcome, it remained steadfast that employers are not meeting demands for a real inflation compensation.
“It would also be important to secure real wages in 2023 in order to create an actual compensation for inflation for the employees,” said ver.di negotiator Maya Schwiegershausen-Güth.
Germany, Europe’s largest economy, is facing skyrocketing inflation, with food and energy inflation made worse as a result of Russia’s invasion of Ukraine.
The latest round of industrial action by German dockworkers is the third in as many weeks. Last month, the trade union called two strikes, one in early June lasting four hours and another in late June running for 12 hours.
With Germany being one of the most critical maritime hubs in Europe, the 24-hour strike is bound to have adverse supply chain impacts across the continent coming at a time when major European ports are grappling with a congestion crisis.
Paul Matthews took over as the new executive director of the Port of South Louisiana this past January. Matthews replaces long-time Executive Director Paul Aucoin, who served the port for over eight years and led the organization through record growth. He is the first African American port director in the history of the state of Louisiana.
Paul Matthews
Matthews has several years of port experience in the Gulf region. Prior to joining the Port of South Louisiana, Matthews served as deputy port director at Plaquemines Port Harbor and Terminal District. He joined Plaquemines Port in 2017 after serving as the community affairs manager at the Port of New Orleans.
As deputy director, he helped negotiate multi-million-dollar terminal leases and facilitated the development of a private-public partnership to expand rail service at the Plaquemines Port. He also assisted in securing millions of dollars of federal port security and dredging funds and was involved in attracting grants for critical port infrastructure projects among so many other things.
When he took over at the port, Matthews said that he looks forward to leading the Port of South Louisiana by maintaining so many of the port’s successes and growth through focus on infrastructure, agriculture and the energy transition. Here’s what else he had to say in a Marine Log exclusive:
Marine Log (ML): Prior to your designation as the Port of South Louisiana’s new executive director, you held roles at Plaquemines Port Harbor and Terminal District and at the Port of New Orleans. Can you tell us a bit about those roles and what you learned that you plan to keep in mind as you lead the Port of South Louisiana?
Paul Matthews (PM): During my tenure at the Plaquemines Port, I helped negotiate multi-million-dollar terminal leases and facilitated a private-public partnership to expand rail service. I also assisted in securing millions of dollars of federal funds for port security and dredging, and was involved in attracting grants for critical port infrastructure projects. As I spent more time at Louisiana ports, I quickly realized that community outreach was lacking. The people knew there were ports but didn’t know exactly where they were or what they did. I spearheaded a community outreach plan to bring awareness to our maritime operations and have continued to advocate for the connection between residents, industry and the actual ports. I’m likely the only individual to have spent time working at three ports in the same region. I plan to use the perspective I gained from working at those ports with great leaders as I work with my team at the Port of South Louisiana. Regionalism is necessary for us to all achieve our full potential in the maritime industry.
ML: How did you get your start with ports? Is it a career path that you saw coming or did you happen into it like so many of us?
PM: I began my journey in the port industry in 2012, when I joined the Port of New Orleans to spearhead community affairs. My efforts led to engaging more than 6,000 civic, business, academic leaders, and local, state, and federal elected delegations with maritime-related issues, such as economic and workforce development and infrastructure improvement.
I think if it hadn’t been for the advice and mentorship of then-executive director, Gary LaGrange, a career in the maritime industry would not have been on my radar.
ML: As many of our readers know, Paul Aucoin is your predecessor. Have you had the chance to talk to him about your role and was there anything valuable he instilled in you in preparation for you taking over?
PM: I know I have big shoes to fill as executive director of the Port of South Louisiana. Paul Aucoin’s accomplishments and the impact of the port on the regional and national economy are inarguable. His advice was simple: acknowledge short-term and long-term challenges, establish goals, formulate a plan while leaving room for adjustment, rely on your staff, and understand the board. Paul helped to continue the Port of South Louisiana’s success. My approach will be different, but no les impactful, of course.
ML: The Port of South Louisiana is one of the country’s largest tonnage ports. What’s going on at the port that our readers might find of interest? Any new expansions or projects in the works?
PM: Transportation is our business. We are truly multimodal, with access to land, air, road and rail. We’ve been focused on upgrading the road aspect and taking advantage of some of the federal funding available.
Infrastructure improvements to our Globalplex Intermodal Terminal include:
Installation of two Konecranes Gottwald Model 6 Portal Harbor Cranes that will expand our cargo capacity to help win back tonnage and help with mid-streaming frequency and speed;
Reinforcement of the dock that will increase weight limit and improve truck capacity;
Internal roadway improvements to help ease use of our facilities; and
Second access bridge to improve ingress/egress to our dock.
Additionally, we are supporting the following regional infrastructure, transportation projects:
I-310/U.S. 90 corridor and improvements, which will upgrade 160 miles of U.S. 90 to interstate standards;
Widening of LA 3127 that will convert the roadway from a two- to a four-lane highway;
Installation of I-10/Reserve interchange that would provide a direct access to I-10 from Reserve, alleviating traffic in LaPlace and Gramercy; and
Extension of runway at PSL’s Executive Regional Airport from 5,100 to 6,500 feet to accommodate larger corporate and eventually cargo aircraft.
ML: A hot topic at the moment is sustainability and greening maritime operations. Is the port tackling some of these green hurdles to become a more sustainable operation? If so, can you tell us more about that?
PM: We are poised to assist existing industry in making attractive energy transitions, including the introduction of alternate fuel for modern vessels.
We also support the initiative of green fuels/carbon capture. Wind and solar also play a part in making renewable energy successful for all. Our existing industry has already begun to try new ideas to speak to the green movement and we are prepared to help in any way we can.
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