Spot-market rates for liquefied natural gas (LNG) tankers this week set annual records as traders bid up available vessels to meet rising global demand for the chilled gas, according to brokers.

Soaring demand for LNG and buyers shunning Russian cargoes and vessels over its invasion of Ukraine have led to more long-term charters, limiting the supply of vessels to the spot market, said shipbroker and LNG consultancy Poten & Partners.

The fire that knocked out the Freeport LNG gas-processing and export terminal has not affected the increase in spot rates, he said. The plant is out of operation through at least month’s end.

Spot rates for transporting 160,000 cubic meters of LNG in the Atlantic Basin is $100,000 per day, and $85,000 per day for Asia, or the East-of-Suez, cargoes, said Poten’s head of business intelligence Jason Feer.

Both prices are up substantially compared to the average for the year, with year-date average for Asia of $49,000 per day. Day rates bottomed in March and have been very strong since May.

“There has been a substantial increase in long-term charters,” said Feer, taking capacity off the spot market. “We’ve seen some 10-year charters that we hadn’t seen for many years previous,” he said, declining to name the long-term charterers.

Buyers who were caught short of transport in the last two winters turned to long-term charters. Fewer vessels will be coming off charters in the coming months, keeping supply tight, he said.

“It (the Freeport LNG outage) should have had an impact. A loss of supply anywhere implies a loss of demand, but we didn’t see it,” said Feer. Instead, spot cargo rates last week rose 4% to 30% depending on the vessel size and location.

With the ship recycling market in bear mode, active members of it are cautious of their next move. In its latest weekly report, shipbroker Clarkson Platou Hellas said that “as all and sundry connected with the shipping industry descended on Greece for Posidonia, it was obvious that many are reaping the benefits of the incredible markets with food and wine in abundance at the various organised parties and functions. However, the main topic for those huddled in corners from the recycling industry was which direction the next movement in rates will go”.

According to the shipbroker, “many of the cash buyers and recyclers in attendance remain cautious for the time being, a decision perhaps being helped by the continuing lack of tonnage being made available. The currency volatility and fluctuating commodity markets are not providing any comfort for the time being, but if the scarcity of new tonnage continues for the early summer months, then the consensus is that price levels will have to rebound.

Patience may be the crucial word! Next week sees members from the recycling industry descend on Rotterdam for a conference which will, most likely, see no positive change from the European Union authorities in relation to ship recycling in the Indian sub. Continent. Let us hope that we are pleasantly surprised”, Clarkson Platou Hellas concluded.

In a separate note, GMS , the world’s leading cash buyer of ships added that “after the recent falls sustained across all sub-continent recycling markets, there does seem to be a new floor in the low USD 600s/LDT that has been reached, which seems to be the price point where Recyclers feel increasingly comfortable offering at. As expected, there have been instances of opportunistic offerings below the USD 600/LDT mark. However, very few sales (if any) have taken place in the high USD 500s/LDT, as there remain virtually no potential units to offer to Recyclers at these lower levels. If any new sales do take place in the weeks ahead, it is certainly clear that a USD 100/LDT fall has been fully materialized and optimistically, the way forward now seems up, especially as fundamentals, sentiments, and prices, all (finally) seem to be stabilizing as the sub-continent enters the summer / monsoon months. Notwithstanding, with industry titans attending Posidonia this week, no market sales / transactions were to be expected.

Budgets in Bangladesh and Pakistan were announced on June 9th & June 10th respectively, with no news (positive or otherwise) having been announced that would directly impact each destinations recycling sector. While at the onset, this may seem like inaction on part of the respective governments to limit the downward spiral, it may give an opportunity for the markets to recover on their own and find a new stable ground. At least, sub-continent steel plate prices have ceased their worrying downward spiral and with Chinese lockdown measures easing, it is hoped that the worst may well be over for the sub-continent recycling markets (for now). On the West End however, Turkey continues to plummet without remorse as levels here too have dropped nearly USD 150/MT, and despite some stability seemingly appearing in the sub-continent markets this week, things bode no better for Turkey, with a weakening currency and plummeting steel plate prices making matters worse”, GMS concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide.

Since last month, Japan has been protesting over South Korea’s maritime survey near islets in the East Sea. The rocky islets, known as Dokdo in South Korea and Takeshima in Japan, are currently administered by South Korea.

The protest was over the operation of South Korean vessel Hae Yang 2000, a research vessel of the Korea Hydrographic and Oceanographic Agency, which conducts surveys around the islets twice a year. On May 29, it was reported that the research vessel had lodged a wire-like object into the sea.  On May 30, Japanese Court Guards reportedly radioed the vessel to stop the survey, saying that it was conducted without Japan’s agreement.

Japan’s Chief Cabinet Secretary Hirokazu Matsuno said during a press conference that South Korea’s research activity was “totally unacceptable” as the waters near the islets are within Japan’s Exclusive Economic Zone (EEZ).  However, South Korea’s foreign ministry dismissed the premise of the protest and said that the maritime survey was “legitimate” as it abided by international and national laws, including the UN Convention on the Law of the Sea.

The waters off Dokdo Islets are recognized as “intermediate zone” under the South Korea-Japan Fisheries Agreement reestablished in 1998. Japan said this zone is their EEZ, where foreign countries cannot conduct maritime surveys without approval, but experts said the term “intermediate zone” allows room for various interpretations.

“Since the UN Convention on the Law of the Sea came into effect, there are many different views about the intermediate zone,” Park Chang-gun, professor of Japanese studies at Kookmin University, told Maritime Fairtrade.

“The establishment of the zone does not state any relations to the sovereignty of Dokdo in the agreement. Therefore, South Korea should take firm actions against foreign ships or vessels doing maritime surveys or obtaining resources within the 12-mile limit of territorial waters.”

This was the first time that Japan protested since May 2017, although the surveys have never been discontinued in the past five years.  Prof. Park said that the protest was well-expected, considering how Japan is actively developing an offshore natural gas field in the East Sea. For example, Japan announced a project to make exploratory wells 100 kilometers off the coast of Shimane and Yamaguchi prefectures.

“Japan has been trying to bolster the development of the natural gas field in East Sea, as the problem of energy independence rose since the Ukraine War,” Prof. Park said. “Therefore, Japan will continue conducting surveys at its maritime boundaries to obtain marine energy resources in the East Sea.”

Despite Japan’s protest, South Korea will soon have one more vessel, Korea Institute of Ocean Science and Technology (KIOST)’s Dokdo Nuri, that will regularly conduct surveys near the islets.  This research vessel will run maritime surveys several times a year near Dokdo.  According to KIOST, the 40-metric-ton vessel will study over 400 types of marine life and will have equipment to record currents, temperatures and depths.

The authorities in South Korea did not announce any plans to halt maritime research near Dokdo.  Kim Yoon-bae, president of the Dokdo Research Centre, told reporters early June that Dokdo Nuri will continue with research regardless of Japan’s protests.

Nonetheless, there are signs of a thaw in relationship as South Korean president Yoon Suk-yeol and Japanese prime minister Fumio Kishida both seek to improve bilateral relation, engage in strategic cooperation, and move to resolve historical issues.

Prof. Park said that President Yoon will need more than diplomatic skill to mitigate the tense situation at Dokdo and prevent nationalistic sentiments among the general public from taking over.  Be that as it may, given the wider geopolitical tension in the region right now, this moment in history is where the two feuding sides are closest to resolving their historical differences.

“President Yoon looks set to strengthen bilateral cooperation in the fields of security, economy and private sectors,” Prof. Park said. “He is showing more resolve than former president Moon Jae-in in improving South Korea-Japan relations.”

The UK’s maritime industries have an exceptional opportunity to set a global standard for ‘green first’ innovation and, with full backing from the Department for Transport (DfT), Port of Tyne is taking a leading role in this transition, by hosting the first ever 2050 Maritime Innovation Week, from 13 to 16 June 2022.

Maritime Innovation Week welcomed over 300 senior leaders from across the industry on the first day to challenge traditional approaches and showcase the very best of Industry 4.0 thinking and action for maritime applications. The event brings together some of the most innovative minds from both inside and outside maritime, to provide insights and collaboration opportunities across many of the industry’s most pressing topics.

The event supports the government’s 2050 Maritime objective to cement the UK’s role as a world leader in clean maritime transport and new research and development of maritime technology.

The four-day conference kicked off at the Port’s 2050 Innovation Hub, a centre of excellence established to help the industry access cross-sector best practice and support research into energy business transformation, before concluding as London Tech Week’s maritime stream.

Investment Minister Lord Grimstone said: “The UK’s Maritime sector is pivotal to our prosperity globally and also here at home, creating thousands of jobs and boosting the economy. And the potential for trade-led growth for businesses in this sector is huge. That’s why events like Maritime Innovation Week, bringing together the best minds in the industry, will help progress towards a cleaner, greener, more sustainable maritime trade network.”

Robert Courts, Maritime Minister said: “We are delighted that the Port of Tyne will be hosting this year’s Maritime Innovation Week, which will help us to move forward with our shared objectives. We have exciting plans in development, with UK SHORE accelerating progress towards our Maritime 2050 decarbonisation goals. This is a brilliant event to bring together industry leaders dedicated to making the sector cleaner and greener.”

Matt Beeton, CEO of the Port of Tyne says: “Our maritime industry can accelerate achieving the government’s UK SHORE and Maritime 2050 goals by working together and we are delighted with the amazing response received from the entire sector. The case for disruptive innovation has never been more compelling and Maritime Innovation Week will provide essential know how and a clear opportunity to become cleaner, smarter, more efficient, data-driven, innovative and sustainable. Delegates can expect very lively debate and excellent cross-sector networking – exactly what our industry needs to move forwards.”

HELMEPA’s VIRP allows shipping companies to anonymously report accidents, incidents and near-misses on board their ships, strengthening maritime safety culture and helping the industry learn from ‘High Potential Incidents’ which can cause danger to life and property.

The milestone marks a shift in safety culture in the Eastern Mediterranean as HELMEPA celebrates the 40th anniversary of its founding.

Funded by Lloyds Register Foundation, this HELMEPA project works to improve safety at sea by enhancing the understanding of new and enduring challenges in maritime safety in the Eastern Mediterranean. The area is one of the global hotspots for marine accidents and incidents and, because an estimated 75% to 96% of these events are still attributed to human error, the need for a fully implemented safety culture is still an issue of major concern for the shipping industry and maritime stakeholders.

The Foundation’s grant to help improve safety in the region has so far helped enhance the sharing of critical information and ‘lessons learned’ among HELMEPA’s membership through the launch of the VIRP, while also sponsoring training programmes and simulation seminars for seafarers and shipping professionals, workshops and a wide Stay-Safe-at-Sea campaign for the fishing and pleasure craft sectors.

Working in partnership with Lloyd’s Register and Lloyd’s Register Foundation, information on HELMEPA’s project’s aims and activities has been received by an estimated 180,000 maritime professionals, boaters and coastal inhabitants across Greece and Cyprus, helping to strengthen a culture of safety among seafarers, the shipping industry and marine communities in the Eastern Mediterranean.

Philippa Charlton, Chief Marketing Officer, Lloyd’s Register, said:

“Working together for a safer world is the purpose that drives us at LR. This is why we are proud to collaborate with HELMEPA and celebrate the strong culture of safety the Virtual Incident Reporting Platform (VIRP) has fostered. Seeing the tangible results of our partnership is a tribute to the fantastic work that HELMEPA do in the Eastern Mediterranean region to improve maritime safety.”

Dr Tim Slingsby, Director of Skills and Education, Lloyd’s Register Foundation, said:

“Ensuring the safety and wellbeing of people who live and work at sea is central to Lloyd’s Register Foundation’s purpose as a global charity. We’re incredibly proud to partner with HELMEPA and to be part of its pioneering work in the Eastern Mediterranean. In addition, the relationship between HELMEPA and our trading partner Lloyd’s Register is yet more evidence of our shared objective to engineer a safer world.”

Ms Olga Stavropoulou, Director General of HELMEPA, said:

“Nurturing a maritime safety culture is essential for the well-being of hundreds of thousands of seafarers as well as the port, fishing and boating communities of the Eastern Mediterranean Sea. Thanks to the valuable and continuing support of our Associate Member LR as well as Lloyd’s Register Foundation we have achieved to engage, inform and train approximately 2,000 seafarers and shipping professionals, fishermen and boaters in Greece and Cyprus, along with our project partners CYMEPA and Dynamarine, making an impact on the protection of human life at sea.”
Source: Lloyd’s Register

A small general cargo ship left port in the mid-afternoon in foggy conditions. After the pilot disembarked, the Master set the autopilot to steer 129°, increased the ship’s speed to 8 knots and released the helmsman to other duties on deck.

Soon, the OOW arrived on the bridge and the Master handed him the con. The OOW called a crewmember to the bridge for lookout duties as visibility was now reduced in fog. He then checked the radar and AIS and saw no traffic of concern, so he went to the bridge computer/chart table and undertook administrative duties.

Meanwhile, a fishing vessel was inbound for the same port as the general cargo was leaving. The captain had set a course on the vessel’s autopilot of 229 degrees, and its speed was about 5 knots. He was using his radar, switching between various range scales for detection of other vessels, but did not see any. As the vessel approached port, the captain left the wheelhouse and went to the aft deck to check on the deckhand.

At about this time, the OOW on the general cargo vessel now observed a target on the radar at less than 1nm, about 30 degrees on the port bow. He reduced the radar range scale to 3nm and checked the AIS for any signal from the target, but none was seen. He instructed the lookout to look for a contact and then joined him on the port side by the closed bridge wing door. They both searched visually, the OOW using a pair of binoculars.

Suddenly, they both saw the fishing boat emerge from the fog, 30 degrees on the port bow. The OOW sounded one long blast on the ship’s whistle and then switched the helm to manual control and put the rudder hard-to-starboard. This action was nonetheless too late as the fishing vessel struck the cargo vessel’s port side. The fishing vessel’s captain and deckhand were thrown to the deck by the force of the collision. Although the crew of the fishing vessel were later rescued, the fishing vessel eventually sank due to an ingress of water.

The report found, among others that neither vessel was making sound signals, which could have alerted them to the other’s presence. Of course, with the captain of the fishing vessel not even in the wheelhouse, an effective lookout was impossible on that vessel. The report also found that, due to administrative duties that distracted from his navigation, the OOW of the cargo vessel became aware of fishing vessel’s radar return when it was less than 1nm away. At that range, and with a closing speed of about 11kts, it gave him only about five minutes to assess the risk of collision and take avoiding action.