Turkish President Tayyip Erdogan this week will urge Russia to send more goods in a greater volume though the Black Sea corridor when he meets Russian President Vladimir Putin next week, broadcaster Haberturk said on Friday September 9th. It was claimed that Erdogan wants to keep Russia engaged in the arrangement.

Putin last week floated the idea of limiting the arrangement, claiming that it was delivering grain, other food and fertilizer to EU nations and Turkey rather than to the poor countries that really need it.

Erdogan was quoted as saying that “as Mr Putin said, those ships (using the corridor) are going to either developed or developing countries. Maybe that’s why Mr. Putin doesn’t ship Russian products. Of course, in our meeting in Samarkand, we will now ask him to send Russian products through the corridor with ships”.

“If Russian grain starts to arrive, we will send this grain, other products, all of them, until they reach these poor African countries”, Erdogan continued.

Erdogan and Putin are set to hold talks on the sidelines of a summit of leaders of the Shanghai Cooperation Organization in Uzbekistan on September 15th and 16th.

Steering a careful middle course that has been the hallmark of Erdogan’s political position throughout the year, he said that Putin had been right to complain that grain was going to wealthy countries. The Istanbul-based coordination group JRCC that monitors the deal has said that just 30% of cargo has gone to low and lower-middle income countries. “There are many countries in a difficult situation, especially in Africa, which we need to embrace and send these goods to as soon as possible,” Erdogan was quoted as saying.

It has been noted by Reuters that too few ships were arriving in Ukraine to clear sufficiently rapidly the mountains of grain that have built up over the eight months of war.

Even if the agreement holds, the dangers of sending ships into the heavily mined Black Sea, along with a lack of large vessels and the exclusion of a major port, have meant that the volumes transported were well below Ukraine’s goal of doubling farm exports to at least 6m tonnes by October.

Alexander Saverys, CEO of Belgium-headquartered shipping group CMB, which shipped from Ukraine prior to the war, told Reuters that “for the moment, we do not send our ships to Ukrainian ports because we don’t believe it is safe. The situation on the ground is still very volatile and there is a clear danger to our seafarers’ lives. There is also a real risk of being stuck in port.”

At the current rate of exports, it would take around six months to ship the rest of the grain left over from last year’s harvest through the three ports included in the pact – Odesa, Chornomorsk and Pivdennyi – with the help of rail exports, according to Reuters’ calculations.

But by then another mountain of grain would have built up from the current harvest, including 20m tonnes of wheat and Ukraine’s corn crop, which is expected to total around 30m tonnes.

Since they have been unable to sell the Ukrainian farmers did not have the money to invest in their fields, meaning winter wheat planting is on track to be about a third below last year, according to Denys Marchuk, deputy chair of the Ukrainian Agrarian Council.

Dmitry Skornyakov, chief executive of Ukraine farm company HarvEast, said that one reason the sea corridor was not “game-changing” was because prices being paid for grain in Ukraine were not high enough to make massive exports immediately viable. As a result his company was cutting its planted wheat area and drilling no barley or rye this year. “We will definitely see less wheat and if we wait until spring and the situation remains as it is we will see a dramatic decrease in corn,” he said.

Another problem was that reaching previous shipment levels would require four 50,000 tonnes vessels every day , according to Josh Brazil, vice-president for global supply chain insights at project44. But the current range of vessels departing Ukraine were much smaller. The average cargo size has been estimated at around 20,000 tonnes.

Alex Stuart-Grumbar of Shipfix told Reuters that, at current cargo sizes, approximately a thousand voyages would be required clear the backlog. Larger ships carrying more than 60,000 tonnes of grain have been redeployed to other regions, including North and South America. It would take weeks to reposition because the grain export seasons in those other regions are underway. A sizeable crop in Brazil was tying up many vessels.

“We are, at the moment, unable as yet to position any of our assets in the Black Sea and therefore are unable to look at this business,” Khalid Hashim, managing director of leading Thai listed dry bulk shipping company Precious Shipping, told Reuters.

While some marine insurers have provided coverage to enable grains to set sail from Ukraine’s ports, shipping companies remained concerned. Insurance, by its nature, tries to avoid the creation of moral hazard. Shipping companies are required by insurers to retain some skin in the game.

“It is one thing to be insured against a calamity, it is another to put our crew and our ship potentially in harm’s way,” said CMB’s Saverys.

US-listed dry bulk shipping company Genco said that it was looking at how to go about working in Ukraine. Genco CEO and president John Wobensmith told Reuters that there were “challenges with insurance, most importantly keeping our crew safe and there are a lot of other logistics issues in terms of the convoys and load times. We are not quite there yet”.

Viktor Vyshnov, deputy head of Ukraine’s Shipping Administration, said more use of the corridor was needed to bring down insurance costs but acknowledged that the war was constraining shipowners. “Some of them are still afraid for their ships,” he said.

Ukrainian farming minister Solsky admitted hat “our main and biggest problem…is that our demand for logistics is several times higher than the supply”.

The problem has led to innovative thinking Ukraine and Poland are planning to build a 600-km pipeline to deliver Ukrainian sunflower oil to the Polish port of Gdansk, the Ukrainian agriculture ministry quoted the minister Mykola Solsky as saying on Thursday September 8th.

Ukraine last year was the world’s largest sunflower seed grower and sunflower oil exporter. The new pipeline could transport around 2m tonnes of sunflower oil per year, the minister said, but Solsky noted that “Ukraine needs to create alternative, powerful export logistics routes. Since we process a lot of oilseed crops, the pipeline is one of these options”. He said that the Polish side had “positively accepted” the proposal.

Source: https://insurancemarinenews.com/insurance-marine-news/turkeys-erdogan-to-ask-putin-to-ship-more-via-black-sea-corridor/

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022

 


The only way to prevent disasters related to offshore drilling is to permanently protect our coasts and workers from new offshore leasing, she said in an emailed statement. while Barak Obama was the president. The agency proposes to amend seven of the many amendments and additions introduced in 2019, director Kevin M.

The U.S. Department of Home Affairs said on Monday it wanted to reverse some of the retracted maritime safety rules by the Trump administration to prevent outbreaks, such as the BP disaster that killed 11 people and contaminated the Gulf of Mexico in 2010.

“The proposed regulation will help ensure that offshore energy development uses the latest science and technology to keep people safe,” said Home Secretary Deb Haaland in a press release. “As our nation moves to a clean energy economy, we must commit to strengthening and modernizing marine energy standards and supervision.” The changes are a step in the right direction, but not far enough, said Diane Hoskins of the ocean conservation nonprofit. “No operator can promise that there will not be another disaster such as the BP Deepwater Horizon explosion. The only way to prevent disasters associated with offshore drilling is to permanently protect our coasts and workers from new offshore leasing, “she said in an emailed statement.

Under Trump, the Office of Safety and Environmental Enforcement acted in 2019 to change rules introduced three years earlier, when Barak Obama was president.

The agency proposes to change seven of the many amendments and additions introduced in 2019, director Kevin M. Sligh Sr. he said in a telephone press conference from Haaland.

This, he said, would require an accreditation bureau of independent agencies that inspect oil rigs and offshore equipment. Another would require blowout protection – equipment that failed in 2010 – so that they would always be able to cope with the maximum gas flow parameters of the wellbore.

Others would require operators to transmit accident data to the federal maritime safety agency rather than to designated third parties, and would reduce the time to start accident analysis and investigations by one month, allowing three months instead of four. Erik Milito, president of the National Ocean Industries Association, representing oil and gas companies, said: “The 2019 amendments to the well control rule have resolved technical issues and clarified ambiguities,” changing 68 of the 342 provisions of the original rule. “Any further updates… should follow a similar, tailored approach.” Environmental groups sued in 2019, claiming the changes will make oil and gas exploration and development off the Pacific, Atlantic, Alaska and Gulf coasts “much more dangerous.” “We are still examining the proposed rule to determine the best way to deal with the claim,” said Chris Eaton, a senior lawyer at Earthjustice who filed the lawsuit.

Source: https://www.bollyinside.com/today/news/agency/the-us-aims-to-roll-back-some-of-trumps-maritime-safety-rules/

 

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022

 


Saudi Maritime Congress, the largest global shipping & logistics event in the Kingdom of Saudi Arabia, will reinforce industry leaders’ commitment to achieving climate neutrality and discuss its impact on global supply chains, with the aim of creating a sustainable and safe environment in the maritime sector.

Scheduled to take place in Dammam in Saudi Arabia on September 28-29, 2022, industry leaders will come together to discuss the key challenges and opportunities.

As the leading maritime and logistics event in Saudi Arabia, the conference will witness a number of discussion sessions that will bring together decision-makers from private companies and government bodies from around the world. The aim is to focus on accelerating the transition to clean energy and adopting best practices to reduce carbon emissions, the Congress said in a statement.

Accordingly, the conference will highlight the adoption of effective policies and constructive strategies that will promote the transition to clean fuels such as hydrogen as an alternative to carbon intensive non-renewable energy sources. These discussions come at a time when the global community is looking to achieve climate neutrality in the marine sector and solve problems related to greenhouse gases.

Eng. Abdulaziz Sabri, President of Bahri Ship Management said: “As one of the world’s largest VLCC owners and operators, Bahri’s participation in the Saudi Maritime Congress, which will bring together the global maritime community, is an ideal opportunity to explore and identify the key drivers of carbon neutralisation for the sector and ensure that we are on the right track. We are also keen to participate in the discussions about the energy alternatives that would be available in shipping, and to learn about the latest developments regarding the use of innovative technologies.”

The maritime sector is a major tributary of Saudi Arabia’s economy and an essential element in supporting the Kingdom’s Vision 2030. Moreover, the country’s significant fleet is instrumental for the industry, it said.

Chris Morley, Group Director of Maritime Events at Informa Markets, said: “The Saudi Maritime Congress provides a comprehensive and integrated platform to amplify the effectiveness of thought leadership debate. Contributors, stakeholders, and participants at the event all play a vital role in the creation and provision of innovative solutions to everything from future fuels to the adoption of technology throughout the maritime industry. It’s important to the whole team at Seatrade Maritime that we support our communities and customers and provide a catalytic experience that contributes to the objectives of the maritime industry.”

He added: “The Kingdom is among the twenty largest economies in the world and has the largest purchasing consumer base in the region. Therefore, the vital role that the maritime sector plays in the Kingdom’s plan for economic diversification cannot be downplayed. We believe this event plays an important role in supporting sector growth and stimulating action toward the goals of Vision 2030.”

Saudi Arabia has increased the tonnage of its marine fleet, which includes 368 tankers and ships, reaching 13.5 million tonnes.

Source: https://www.zawya.com/en/business/transport-and-logistics/saudi-maritime-congress-to-focus-on-transition-to-clean-energy-iiiin6as

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022


In the third in a series of interviews ahead of the Saudi Maritime Congress Zabrocky speaks about prospects for the tanker market and the Middle East region.

Zabrocky told Seatrade Maritime News that tanker markets had been improving steadily throughout 2022 and continued to do so. “The world is returning to a busier pace of activity as we navigate the third year of Covid-19 and its impacts. This positive growth bodes well for our tanker business,” she said.

Improved markets were reflected in the NYSE-listed shipowner’s second quarter results with it reporting a net income of $69m compared to a net loss of $18.8m in the corresponding quarter in 2021.

The company completed what Zabrocky describes as a “transformational merger” with Diamond S Shipping in July last year. The merger tripled the size of International Seaways’ fleet and a diversified its portfolio with the addition of over 40 products. International Seaways fleet comprises crude tankers – covering VLCC, Suezmaxes and Aframaxes, and LR1, LR2, and MR product tankers.

“At International Seaways, our tankers are transporting both crude and products throughout the Middle East. The region is a key supplier of oil for the world markets. For our business, this is the most important region in the world, and we look forward to growing our market share over time.”

Zabrocky will be a speaker at the Saudi Maritime Congress, taking place on September 28-29 in Dammam, Saudi Arabia.

She added that Saudi Arabia was a visionary country with tremendous supplies of oil as well as natural resources. “They are a thought leader and an innovator for the world,” she said.

Source: https://www.seatrade-maritime.com/tankers/international-seaways-ceo-zabrocky-upbeat-tanker-market-outlook

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022

 


Royal IHC has completed a conversion that has transformed a 2014-built pipelay vessel into a J-lay vessel that owner McDermott International says will “redefine what’s possible in deepwater construction.”Now called the Amazon, the then Ceona Amazon, delivered by shipbuilder Lloyd Werft, Bremerhaven in 2014, was acquired by McDermott in early 2017 after it had been in layup since former owner Ceona went into administration in September 2015.

In the conversion project, Royal IHC has converted Amazon into a state-of-the-art J-lay vessel. The patented lay system, with dynamic top tension capacity of 1.500 tonnes, can handle a variety of pipes including normal flowlines, export lines and pipe-in-pipe configurations, ranging in size from 4.5 inch to 25 inches in diameter and inline assemblies. Other modifications included highly automated onboard operation processes for optimized safety performance and production efficiency. This also resulted in a reduced number of personnel requirements for process supervision.

As McDermott International’s only J-lay vessel with a holding capacity of 10.000 tonnes of pipe on board, and ability to produce hex joints from single or double joints in the multi-joint facility, the Amazon gives McDermott a unique key asset for ultra-deepwater projects.

“Completing the Amazon conversion has been challenging at times,” said Jan-Pieter Klaver, CEO Royal IHC. “However, we remain incredibly proud of her and the teams on both sides whose collaboration made this possible. This project compelled us to design a one of a kind system, with specifications that can redefine the pipelaying industry and the worlds understanding of what is possible in ultra-deepwater construction. Redelivering the Amazon is the outcome of dedication, knowledge and passion of all those involved.’’

Source: https://www.marinelog.com/offshore/royal-ihc-delivers-one-of-a-kind-converted-j-lay-vessel-to-mcdermott-international/


Highlights
– The Baltic Exchange Dry Index (BDI) peaked in late May and has since fallen sharply as lower Chinese demand and adverse global economic developments have impacted expectations.
– The IMF has lowered its global economic growth forecast to 3.2% for 2022 and 2.9% for 2023.
– Year-to-date bulk volumes have increased 1.9% y/y with minor bulks continuing to lead the way.
– We estimate demand growth in the 1-2% range for 2022 and 2-3% for 2023.
– Contracting has remained low, and the order book has reduced to 7.5% of the fleet size.
– The fleet is expected to grow by 2.7% in 2022 and by 2.2% in 2023, but capacity supply is expected to grow by only 1% rest-of-year and by 0-1% in 2023.
– We expect an improvement in the supply/demand balance during the rest of 2022 as the EU’s ban on Russian coal will add tonne miles, and Chinese demand could also rebound. We forecast further improvement in 2023.
– Risks of a global recession have increased, and lower economic growth could harm bulk demand.

Recent developments
The Baltic Exchange Dry Index (BDI) peaked at 3,369 in late May just as demand expectations slowed due to the impact of extended Chinese COVID lockdowns and increasing headwinds for the global economy. Congestion also began to ease and the BDI embarked on a downward trajectory. In late August, it hit a 2022 low of 865, matching levels last seen in June 2020. Year-to-date, the BDI has on average been 19.5% lower than during the same period last year.

Year-to-date, deadweight tonne miles are 0.6% ahead of last year despite several concerns about key markets. The Russian invasion of Ukraine closed Ukrainian ports, while ever stricter sanctions on Russia by the EU and USA have limited export markets for Russian cargo. Lockdowns linked to the zero-COVID policy have reduced economic activity in China, and an increase in domestic mining has also reduced China’s coal imports.
Global coal volumes have year-to-date still increased by 3.3% y/y; figures for July-August were up 1.7% y/y. This has been driven by increased demand in India and renewed demand for coal in the EU in order to fill the gap left by lower natural gas imports from Russia. The two other main commodities, iron ore and grain, have year-to-date fallen by 0.5% y/y and 3.0% y/y respectively. Slowing demand in China has impacted iron ore volumes, whereas the absence of Ukrainian grain has been particularly pronounced recently, and global July-August grain volumes were 8.3% lower than last year. The agreement to facilitate the reopening of Ukrainian grain exports has not yet had a significant impact.

Time charter rates have unsurprisingly followed the development in the BDI closely, and in early September these were 50.3% lower than at the same time last year. Second-hand prices for five-year-old ships have so far remained remarkably stable despite the significant reductions in both freight and time charter rates and are currently on average 15.8% higher than last year. Five-year-old ships are on average priced at 86% of newbuilding prices, whereas Capesizes are priced at only 71%. Newbuilding prices have so far continued to increase throughout 2022, despite lower steel prices, but appear to have reached a plateau for now.

Demand drivers
The International Monetary Fund (IMF) has again lowered its forecast for the global economy. Central banks have raised interest rates and tightened their monetary policies to try to contain further increases in inflation, and the IMF estimates that global GDP in Q2 2022 was lower than in Q1 2022. The baseline growth forecast from July estimates global economic growth of 3.2% in 2022, down from 6.1% in 2021, and that growth in 2023 will stand at 2.9%. Further downside risks exist, and the IMF’s worst-case scenario forecasts a possible further reduction in global GDP to 2.6% and 2.0% in 2022 and 2023 respectively.

Growth forecasts have been reduced for most key economies. Of particular concern to the bulk market is that forecasts for the Chinese economy have been lowered by 1.1 pp and 0.5 pp for 2022 and 2023 respectively. With forecasts of 3.3% and 4.6% for 2022 and 2023 respectively, growth in China is expected to hit its lowest levels since 1990. The People’s Bank of China has cut interest rates, one of the few central banks in the world to so but increases in economic stimulus have otherwise been minimal. Special Purpose Bonds issued by local governments are on par with 2021, but lower than in 2020. The central government has recently also committed further funds for infrastructure development, which could increase demand for both iron ore and coking coal but may not have much impact in the short term.

In the latest forecast, India remains the fastest-growing economy despite higher-than-average reductions to forecasts compared to the April projection. Growth is now forecast at 7.4% and 6.1% for 2022 and 2023 respectively. Elsewhere in Asia, projections for Japan and ASEAN-5 countries have also been lowered.
The projections for Emerging and Developing Europe, Latin America and the Caribbean, Middle East and Central Asia, and Sub-Saharan Africa are the only ones not to have been lowered since the April forecast. Unfortunately, these areas are not key demand areas for the bulk market.

The World Steel Association estimates that global steel production in the first half of 2022 fell by 5.4% compared to the same period in 2021. The world’s biggest steel producer, China, reduced its production by 6.4% y/y in the first half of 2022, not least due to a 6.4% year-to-date fall in real estate investments. The World Steel Association’s most recent steel production forecast for 2022 and 2023, which was made in April 2022, estimated global demand growth of 0.4% and 2.2% in 2022 and 2023 respectively. It now appears more likely that 2022 will end with negative demand growth despite the recent efforts by the central bank and central government in China to help demand rebound in the second half of the year.

The International Energy Agency (IEA) has slightly lowered its estimate for global coal demand in 2022. Demand in the first half is estimated to have increased by 0.5% y/y and full year demand is estimated to increase by 0.8%. For 2023, a 0.3% increase is estimated. India and the EU are the drivers of growth in 2022, and demand is estimated to grow by 7.3% and 6.5% respectively. In India, increased electrification, high demand for electricity during a heat wave, and high gas prices are driving demand, whereas, as previously mentioned, EU demand is being driven by a shift back towards coal and away from gas to reduce dependence on Russia. Demand in China fell by 3.0% y/y in the first half of the year due to lower economic activity and high hydropower generation. Assuming economic activity rebounds in the second half of the year, IEA estimates a full year reduction in demand of 0.5% y/y. Seaborne demand to China is, however, still likely to reduce as domestic coal output rose by 11.5% y/y during the first seven months of 2022. The EU’s ban on Russian coal will further benefit tonne miles demand during the rest of year as imports from Russia are halted and are likely to be replaced by more coal from USA, Australia, Colombia, and South Africa. We estimate that this could increase tonne miles demand for coal by 5% and 1% for the overall market.

Despite an expected 41.5% reduction in Ukrainian wheat exports in the 2022/23 marketing year, the US Department of Agriculture (USDA) still expects a 1.8% increase in global shipments over the 2021/22 marketing year. Strong harvests in Canada and Russia are expected to replace the loss of Ukrainian exports. Ukrainian maize exports cannot be entirely replaced by other countries even if Brazilian exports are forecast to increase by 36.8% in the 2022/23 marketing year. Soybean exports are forecast to rebound from the 2021/22 marketing year and increase by 10.3% in the 2022/23 marketing year, with Brazil again delivering most of the growth. Combined, volumes for the top three grains are expected to increase by 2.6% in the 2022/23 marketing year. Very high fertiliser prices meantime remain a risk to harvests as farmers try to limit fertiliser use. In contrast, grain prices have recently been falling, thus reducing the risk of demand destruction.
Year-to-date, fertiliser volumes have fallen 2.7% y/y, confirming the impact of the higher prices. Along with ores, it has been the only minor bulk commodity to show negative growth year-to-date. Ores have been particularly impacted by lower nickel ore shipments to China during the extensive COVID lockdowns. The nickel industry, however, expects continued growth in demand for both stainless steel and batteries for electric vehicles. In total, minor bulks have continued to grow much faster than the top three commodities. Year-to-date combined volumes of iron ore, coal, and grains have grown by 0.6% y/y, whereas minor bulks are up 4.8% y/y for a total 1.9% y/y growth in bulk volumes.
Barring any significant adverse rest-of-year impacts from a slowing global economy, we estimate that that volume growth in 2022 will end in the 1-2% range and estimate growth of 2-3% in 2023.

Supply
Contracting has remained very low during the first seven months of 2022 and has hit its lowest level since 2016, and we only expect a minor increase in 2023. The order book has therefore fallen again and is now only 68.1 million DWT, equal to 7.5% of the trading fleet. Deliveries in 2022 and 2023 will therefore be muted, and combined are expected to reach their lowest two-year level since 2007-2008. We meantime expect that demolition activity will increase in 2023 as congestion eases and some owners will find it uneconomical to retrofit ships to comply with EEXI and CII standards. All in all, we forecast that fleet growth will fall from 3.6% in 2021 to 2.7% and 2.2% in 2022 and 2023 respectively.
Capacity supply is equally impacted by congestion and sailing speed. Congestion has been elevated since mid-2020 but has recently reduced quite significantly and has added to capacity supply. Conversely, average sailing speed has on average been 0.1 knots lower in 2022 than in 2021 and has reduced capacity supply. With the implementation of EEXI and CII as well as ETS in the EU, we find it unlikely that sailing speed will increase in 2023 and believe that it is more likely to drop further. We do, however, consider it likely that congestion will revert to lower levels and release more capacity.
All in all, we estimate that capacity supply will grow by 1% for the rest of 2022 and at a slower rate than fleet growth during 2023 to end in the 0-1% range.

Conclusion
Compared to our last update, the global economy is facing stronger headwinds, and slower growth in China is of particular concern. The risk of a global recession has increased as central banks combat high inflation rates through a combination of increased interest rates and a reduction in fiscal stimulus.
We have therefore lowered our volume forecast but expect tonne miles demand to increase by 2-3% in 2023, compared to capacity supply growth of 0-1%. Risks remain to the demand forecast but capacity supply could also fall if demolition activity exceeds our forecast. Overall, we expect that demand will grow faster than capacity supply and improve market conditions.
For the rest of 2022, we expect an improvement in market conditions compared to present as the EU ban of Russian coal will add tonne miles and Chinese demand could rebound. Freight and time charter rates could therefore improve compared to recent levels, although we consider it unlikely that the market will reach the highs achieved earlier in the year.
Source: BIMCO, By Neils Rasmussen, Chief Shipping Analyst, BIMCO

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022

 


Rarely does a vessel come along with the potential to radically change the way an industry operates, but one such vessel is set to hit the water in 2023.

This new vessel, a towboat named Hydrogen One, is being developed by Louisiana-based Maritime Partners, the largest lessor of marine equipment in the U.S. It will be the first of its kind globally to run on emissions-reducing methanol-to-hydrogen generator technology—no diesel propulsion on board—as the maritime industry continues to plot its course toward cleaner vessel operations.

The groundbreaking towboat was designed by Seattle-based Elliott Bay Design Group (EBDG) and will be built at Intracoastal Iron Works in Bourg, La. Other key partners in the project include technology providers e1 Marine, based in Bend, Ore., and multinational ABB. Once completed, the vessel will be operated by Jeffersonville, Ind.-headquartered marine transportation company American Commercial Barge Line (ACBL), likely to move petroleum products in and around Louisiana and Texas.

Seeking a solution
In recent years, marine transportation companies have been exploring a range of greener power and propulsion solutions to help reduce their vessel emissions as stricter environmental regulations take hold and environmental, social and governance (ESG) priorities increasingly drive corporate decision-making and capital allocation.

“The global shipping industry has been driving to decarbonize itself,” Maritime Partners’ CEO, Bick Brooks, said at the 2021 International WorkBoat Show in New Orleans in December. “It’s a huge challenge given the energy requirements for vessels regardless of application. But the winds of change are blowing, and we want to be at the forefront of that change.”

It will take a growing mix of technologies to decarbonize shipping as various vessel applications differ in power and propulsion needs. There’s no one-size-fits-all. Batteries, for example, have been gaining attention for vessels such as ferries and tugboats that operate on fixed, repeated routes where daily charging is possible, but are not currently viewed as a standalone answer for towboats due to these vessels’ size, space and weight limitations, as well as the nature of barging routes on the U.S. inland river system. And limited onboard storage capacity and a lack of necessary dockside bunkering infrastructure essentially strike pressurized or cryogenically stored gases from the list of viable towboat fuels.

“We took a blank sheet of paper and laid out all of the available alternatives: liquefied natural gas (LNG), methanol, ammonia, compressed hydrogen, biofuels; and what we came up with was methanol as the fuel of choice for our application,” Brooks said. “It is widely available throughout the river system and global port infrastructure, it can be distributed in existing fossil fuel distribution infrastructure, and it’s safe.”

Jack Nash, an analyst with Maritime Partners, said at the WorkBoat Show that the company looked at three primary criteria when evaluating the viability of future fuel options: strong emissions benefits, cost competitiveness and strong performance. “If a fuel doesn’t tick all of those boxes, then we struggle to see how it will be adopted,” he said. “We were very impressed with hydrogen’s emissions benefits, but the challenges with transporting and storing hydrogen increased the cost so significantly that we didn’t see compressed hydrogen as a solution moving forward.”

And that’s where e1 Marine came into play with a solution that serves as a link allowing easy-to-handle methanol—a top commodity globally, located in bunker quantities at more than 100 ports—to be converted into power-dense and clean hydrogen on board, in real time.

Mike Complita, principal in charge and VP of strategic expansion at EBDG, said the solution is a good fit for Hydrogen One based on the vessel’s operational profile. While pure hydrogen can be difficult to carry in quantity and get distance, methanol—which is readily available and routinely carried on U.S. inland waterways—is very similar to fueling conventional diesel, Complita said. “You bunker it from a truck or a terminal through a hose. It does not take any special permitting, unlike hydrogen and ammonia and some other alternative fuels,” Complita said. “Methanol, in my opinion, is probably the safest alternative fuel to transfer to the vessel beyond diesel and biodiesel.”

Hydrogen One will turn heads on the water. Its appearance can be described as somewhere between futuristic and traditional, with modern, sleeker lines paired with many of the signature elements of traditional vessels. But it’s what’s inside that will be the real difference maker. (Image: EBDG)

According to Complita, “The other benefit of methanol is that, similar to diesel, it gives you relatively unlimited range. . . So, we can build a boat that can get similar range to diesel with methanol fuel. That’s not something you can do with electricity [alone]. That’s not something you can do with liquid or gas hydrogen. Other options like ammonia are starting to come online to do that as well, but they are a lot farther out in having the technology ready for that.”

e1 Marine, a joint venture between Maritime Partners, Irish tanker owner Ardmore Shipping and Bend, Ore.-based hydrogen generation specialist ELEMENT 1 Corporation, will supply a methanol-to-hydrogen generator technology for the Hydrogen One. Basically, the system will convert methanol and water into pure hydrogen that will run through fuel cells to create electricity for the vessel’s motors, which drive dual L-drive azimuth thrusters. e1 Marine has tapped RIX Industries to manufacture Hyrdogen One’s M18 reformers and PowerCell Sweden AB to supply the PowerCellution Marine System 200 fuel cells. The vessel will also be equipped with batteries that provide additional power when needed, both while underway and for hotel power.

Robert Schluter, managing director of e1 Marine, noted that the technology is already proven but has typically been used in smaller scale power generation applications—less than 10 kilowatts of fuel cell power. Through the years, the system has been scaled up and is now ready to support the multimegawatt power needs of marine vessels. Hydrogen One will be in the 2,000-horsepower range, but as the technology continues to evolve, towboats could become more powerful using similar methanol-to-hydrogen systems.

Earlier this year, the system received approval in principle (AIP) from classification society Lloyd’s Register following independent verification that the e1 Marine generator can support megawatt scale fuel cell power applications and meets all applicable regulations, codes and standards.


How it works
“In simplified terms, we turn methanol to hydrogen as needed,” Schluter said. “As the fuel cell, which is the engine in this case, needs hydrogen, we just operate the fuel delivery system to provide the hydrogen as it’s needed.”

“The process is robust in design with very few moving parts, requires minimal maintenance and offers outstanding longevity.”

According to Schluter, here’s how it works:

First, methanol (CH₃OH) and water (H₂O) are mixed at a roughly a two-thirds/one-thirds composition to create the feedstock, which is pumped into a heat exchanger to cool the product hydrogen, preheat the feedstock and obtain optimal thermal efficiency for the generator. Then, the pre-heated feedstock flows into the reactor “hot box”, where it is converted into a vapor before being directed into a catalytic reactor to convert the feedstock into a syngas, a mixture of hydrogen, carbon monoxide (CO) and carbon dioxide (CO₂), Schluter said.

Next, hydrogen is separated from the syngas using e1 Marine’s membrane purifier, the heart of the system. The small amount of remaining hydrogen-depleted gas from the purifier is directed back to the reactor and combusted to generate the heat for the steam reforming reaction. Exhaust from the raffinate combustion is sent to the atmosphere, and the only new emissions produced by the hydrogen generator are carbon dioxide and water vapor.

“The hydrogen goes to a small buffer tank, and then the fuel cell pulls off that buffer tank as needed,” Schluter said. “It’s a very small quantity of hydrogen. Less than half a kilogram actually exists at any one time.”


Emissions and economics
Many industries, not just marine, are looking at new technologies that will help clean up and slash emissions. But, risk is inherent to the adoption of any new technology, especially one that has yet to be proven in real-world vessel operations. First and foremost, the system must be proven safe. Beyond this, there are always questions about technical, logistical and economic feasibility. For a vessel owner and operator to sign on to try something new speaks volumes when so much is on the line.

According to ACBL’s CEO, Mike Ellis, the company’s strong relationship with Maritime Partners drew it toward wanting to operate the groundbreaking vessel. “Second, this project aligns with our strategy and ESG goals and initiatives,” he added. “We have to find more sustainable solutions to meet our customer demands. All of these reasons led to our desire to be a part of this project.”

Schluter noted that methanol is very clean in its composition. “It does have a carbon, but it’s only a single carbon. And it naturally biodegrades,” he said. And, with methanol, a vessel operator gets all the benefits of a liquid fuel, like they would with gasoline or diesel, but e1 Marine’s solution is able to safely convert it to clean hydrogen, right at the point of use, Schluter said. No nitrogen oxide (NOx), sulfur oxide (SOx) or particulate matter (PM) pollution. “People are looking to adopt clean power solutions, and the cleanest out there is hydrogen,” he added. “It’s got literally zero emissions. Heat, power and water are its three outputs. And it’s been commercialized for more than 20 years.”

(Image: EBDG)

It’s often repeated that the maritime industry—the U.S. towboat industry particularly—has a certain reputation. It’s true that barging is significantly cleaner than road, rail and air transport alternatives, but the industry is not perceived as one that is overly eager to try new things. “We all know this is an industry that is steeped in tradition. It’s very slow to change,” said Eric Livingston, COO at Maritime Partners, speaking at the WorkBoat Show. “However, what we’re hearing from our customers is that they need a decarbonization, low-emission solution on the river; it’s a must. It’s coming from both our customers and our customers’ customers. So, the demand is there.”

One of those customers is ACBL, which is seeking to lead the way in helping the inland waterways transportation industry shrink its carbon footprint. “Our industry must be diligent and innovative to keep our standing as the most efficient mode of cargo transportation for our customer base,” Ellis told Marine News. “We are excited to be a key player in developing a more sustainable reduced carbon footprint supply chain for our customers and all of our stakeholders through our partnership with Maritime Partners on this project.”

And while the environmental benefits of the methanol-to-hydrogen technology are the immediate draw, the economics have to make sense for the solution to be right for Maritime Partners as well as ACBL and its customers.

Asked how the costs to charter and operate Hydrogen One might compare to a traditional towboat, Ellis said, “We, along with Maritime Partners, Elliott Bay Design Group and ABB, recently participated in a very detailed, two-day risk assessment in which many of the operational, compliance and maintenance aspects of the vessel were discussed and considered. At this time, we are still in the discovery phase of determining the operating parameters and costs associated with this vessel.”


Risk analysis workshop
The risk analysis workshop was conducted in July, facilitated by classification society Lloyd’s Register, and attended by staff from the U.S. Coast Guard’s local office in Houma, La. and engineering team in Washinton D.C., as well as the project design team and representatives from ACBL.

“The workshop was highly successful, and the USCG was highly complimentary of the breadth and depth of the team we assembled. At the conclusion of the workshop, all significant identified risks were adequately addressed to the satisfaction of all attendees,” Complita said.

“Lloyd’s has since provided the formal register document which will accompany our updated Design Basis Agreement to be submitted to the USCG. Once the USCG approves the Design Basis Agreement, we will submit the design plans and documents for approval by the Marine Safety Center.

“Coming out of the workshop, the design is substantially complete, and the project remains on schedule with construction starting in the third quarter of this year.”


Ultimately, Maritime Partners believes it is bringing to market a solution that will eventually be able to compete on cost with an EPA Tier 4 combustion engine towboat. “With the adoption of Tier 4, the cost curve is already going up. In order to build a Tier 4 towboat, there is a significant increase in cost versus Tier 3, which gives us the room with this new towboat—even at a higher cost—to come in competitively,” Livingston said.

According to Schluter, e1 Marine is able to show a return on investment (ROI) about five or six years, versus a Tier 4 diesel engine. “That’s very exciting because we’re actually more cost effective in that type of solution five years out,” he said. “This technology can be cost effective. It’s not an R&D project. It’s not the only way we can afford this as a government grant. This is real and ready to go. There is going to be more work in the near term. Hydrogen One is more expensive than what Hydrogen Three will be, right?”

Maritime Partners shares this view and is funding the Hydrogen One project without financial assistance from the government. “It will take a little time, it will take a little scale, but we believe that [cost competitiveness] is a real benefit to this technology,” Brooks added. “It’s not some pie-in-the-sky, highly expensive solution that requires government funding. This is something that can find widespread adoption given the cost competitiveness of it.”

(Image: EBDG)

Equipped with ABB’s electrical power distribution and automation technology, Hydrogen One will be able to perform at standard operational speeds for up to 550 miles before it needs to refuel. Better yet, it will meet the International Maritime Organization’s (IMO) 2030 goals, which target 40% reduction in greenhouse gas (GHG) emissions relative to 2008. The vessel will also meet all requirements of the U.S. Coast Guard’s Subchapter M regulations.

Challenges
With any first-of-its-kind vessel comes a unique set of challenges. For Hydrogen One, the sheer size and weight of the on-board power equipment presented a few design and technical tests for EBDG and the team. The fuel cells, reformers and batteries collectively are physically much larger and heavier than a pair of conventional diesel engines of the same power, Complita said. “We had to carefully arrange and balance the boat to accommodate the weight, to put that equipment in an area that’s safe and away from the crew quarters without impacting visibility from the wheelhouse.”

Complita also noted that alternative fuels are typically anywhere from 20 to 80% less energy dense than diesel, meaning a larger fuel capacity is required in order for the vessel to go the distance. “That makes it also technologically challenging to design the boat to have more space to carry fuel, especially in a conventional inland towboat,” he explained. “Hydrogen One is a small boat relative to the power that it generates. And so we need a lot of fuel and a lot of power, and packing that all into that conventional size has been a challenge.”

Dave Lee, VP of sales for global workboat marine systems at ABB, said new technology brings questions about how all the onboard systems will be controlled. “Unlike a traditional boat there are many different subsystems to this boat that have to be controlled independently and then be seamlessly integrated into the overall control at the same time.”

According to Lee, Maritime Partners saw the value in ABB’s “long history of not only electrical propulsion integration but also process automation in many different industries” to help tackle this challenge. ABB has been working closely with EBDG throughout the design process and will assist over the course of the build to ensure Hydrogen One’s systems work together seamlessly.

While a walk down below to the machinery space—not engine room—on board Hydrogen One will reveal a boat that looks very different than a traditional towboat, not much will be changed on the bridge. “It is an important item to any towboat or workboat operator that the wheelhouse is mainly unchanged, and this is no different on Hydrogen One,” Lee said. “For the captain, they will not tell much difference other than the greater response in a boat like this and the fact that they will have a couple more computers in the wheelhouse.”

“The real drawback to any new boat like this is that it is different, and there will be different skills needed to work on and maintain the boat,” Lee said, but added that the industry is willing and ready to advance. “We have gone through this before in the marine industry. You can only imagine what it was like to go from steam engines to diesel engines, or more recently, for operators adopting Z-drives compared to traditional shaftline boats.

“[Hydrogen One] will be different, but the marine industry is ready for something different, and definitely their customers are as well.”

Source: https://www.marinelink.com/news/hydrogen-one-innovative-towboat-set-shake-499381

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022

 


The global maritime safety system market is expected to grow from $17.66 billion in 2021 to $18.40 billion in 2022 at a compound annual growth rate (CAGR) of 4.19%. The marine safety system market is expected to grow to $24.62 billion in 2026 at a compound annual growth rate (CAGR) of 7.56%.

The maritime safety system market consists of the sales of maritime safety system solutions and related services by entities (organizations, sole traders, and partnerships) that refers to planned solution and services implemented by shipping companies to ensure ship and marine environment safety. MSS aims to alert the system about the position and safety-related concerns about the ships in the vicinity, search and rescue coordination, and protection from terrorism, piracy, robbery, illegal trafficking activities, and others.

The main types of systems include ship security reporting system, automatic identification system (AIS), global maritime distress safety system (GMDSS), long range tracking and identification (LRIT) system, vessel monitoring and management system, other systems (automated manifest system (AMS), and automated mutual assistance vessel rescue system (AMVER).Security reporting system refers to electric systems used to prevent or abate potential risks in ships by taking less hazardous processes programs to reduce injuries and property loss.

The maritime safety system are used for loss prevention and detection, security management, counter piracy, coastal monitoring, safety of ship, pollution prevention and response (PPR) management. They used by government institutions, oil & gas, marine & construction, shipping & transportation, cargos & containers, other end-users.

Asia-Pacific was the largest region in the maritime safety system market in 2021 and is also expected to be the fastest-growing region in the forecast period. The regions covered in the maritime safety sytem market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The maritime safety system market research report is one of a series of new reports that provides maritime safety system market statistics, including maritime safety system industry global market size, regional shares, competitors with a maritime safety system market share, detailed maritime safety system market segments, market trends and opportunities, and any further data you may need to thrive in the maritime safety system industry. This maritime safety system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The growing maritime trade and transportation are expected to propel the maritime safety system market.The increased well-being of consumers leads to increased production.

The lower emissions on long voyages, maritime trade, and transportation assist producers in remaining competitive.The volume of products moved on a single trip is greater, making sea transport more cost-effective and environmentally friendly than other methods of shipping goods over long distances.

For instance, In April 2019, a report published by the Organisation for Economic Co-operation and Development projected a significant increase in a variety of ocean economic activities by 2030. According to estimates, the worldwide value generated by ocean-based industries could double from $1.5 trillion in 2010 to $ 3 trillion in 2030. Therefore, the rising maritime trade and transportation will drive the maritime safety system.

Technology developments such as AI, IoT are a key trend gaining popularity in the maritime safety system market.For a long time, the key technology of marine safety and systems has remained unchanged.

However, the rising number of accidents, terrorism, and other components is now subject to many changes created within maritime safety and security by involving AI, IoT, Big Data, digital route management, innovative defense technology, integrated control systems, and others. For instance, In December 2020, Iridium Communications, satellite communications company, has introduced its GMDSS service that is embedded with a strong network of 66 cross-linked Low Earth Orbit (LEO) satellites which provide low latency, high-quality, and real-time voice and data connections across the entire system, including seas and polar regions.

In April 2021, Leonardo, an Italian aerospace, defense, and security company, acquired a 30% stake in GEM Electronica for an undisclosed amount.Through this acquisition, Leonardo will strengthen its market position in the naval sector, particularly in the sector of short and mid sensors for navigation, maritime, coastal, and airport surveillance.

It will broaden and diversify Leonardo’s product offering and improve engineering, manufacturing, and marketing. GEM Electronica is an Italian company producing small and medium-sized 3D radars, electro-optical sensors, and inertial systems for the maritime, air, and land sectors.

The countries covered in the maritime safety system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

Source: https://www.globenewswire.com/news-release/2022/09/09/2513274/0/en/Maritime-Safety-System-Global-Market-Report-2022.html

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022


Italian shipbuilding giant Fincantieri said it has secured another €1.7 billion in newbuild orders from luxury cruise line Viking.

The two companies, which entered an agreement for six newbuild options in March 2018, have put into effect the contracts for the third and fourth ships. The companies also have signed the contract for the fifth and sixth units, subject to access to financing.

Deliveries are scheduled respectively in 2026, 2027 and two in 2028, the builder said.

For this batch of six vessels, which follows the 10 units ordered from 2012, Fincantieri has developed in partnership with the shipowner a project based on the successful features of the previous ships, upgraded and revisited with the latest technologies. Notably, this new generation of ships is designed for hydrogen fuel cells.

Fincantieri noted its collaboration with Viking totals 18 vessels to date, including two purpose-built expedition vessels built by Fincantieri subsidiary Vard.

Source: https://www.marinelink.com/news/fincantieri-bags-billion-orders-viking-499385

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022

 


Bulk carrier ASIAN MAJESTY arrived at Riga Latvia from S-Petersburg Russia, on Mar 3, with 55000 tons of potassium chloride on board, to be topped off with the rest of the lot. Cargo belongs to Mauritius-registered company “United Fertilizers Company Limited”, owned by Russian oligarch Dmitriy Mazepin. Mazepin and all his assets were sanctioned shortly after Russia invaded Ukraine. The ship was detained in Riga port and since March, remains at Riga Anchorage. The ship herself, and cargo of some $17 mil value, are not subjects to sanctions, but owner of the cargo is sanctioned, so Latvian Customs, in accordance with sanctions regulations, had to detain ASIAN MAJESTY.
The crew essentially, doesn’t encounter negative consequences like lack of supplies, because the ship and the crew aren’t abandoned. The problem lies with cargo – Latvian Authorities together with other interested parties, still can’t work out a solution which will satisfy all involved and won’t violate sanctions, with that.

Source: https://www.fleetmon.com/maritime-news/2022/39489/u-ming-bulk-carrier-stuck-latvia-more-6-months-bec/

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022

 


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