Construction of China’s first domestically built large cruise ship marked a key milestone in mid-September as structural work was completed. Assembly for the 135,500 gross ton cruise ship began in November 2020 with construction scheduled to be completed in 2023.

The cruise ship is being built at China State Shipbuilding Corporation’s Shanghai Waigaoqiao Shipbuilding Co. for a joint venture between CSSC and Carnival Corporation. It marks the first large cruise ship to be built in China. Fincantieri is advising the Chinese shipyard on the unique elements of cruise ship construction. The cruise ship and a sister ship due for delivery the following year are both based on Carnival Cruise Line’s Vista class ship with some modifications for the Chinese domestic market.

The final pre-assembly placed on the unnamed cruise ship included the deckhouse and funnel for the vessel. According to SWS the assembly measured approximately 115 feet by 85 feet and was made up of six steel sections along with one aluminum alloy section. Standing nearly 79 feet, the shipyard said it was a complicated installation as “the center of gravity of the total section is high and the hosting point is low.” The assembly required an “extremely high hoisting,” after careful planning and was successfully fitted to the ship. It was the last penetration into the ship to be completed.

 

Source: maritime-executive


We have been working to develop a nationally consistent and simplified qualifications framework that is relevant to a wide range of roles and operations, while maintaining safety standards.

We are now in the final stages of completing the review, preparing guidelines, transitional arrangements and related amendments to other legislative instruments.

We now invite industry to provide feedback on the proposed final draft marine order and the supporting guidelines.

The draft marine order contains a range of changes – some of which are a result of feedback industry provided during the 2019 consultation. Areas that have changed as a result of feedback in 2019 include:

  • clarifying the operating limits and minimum training requirements to obtain a Coxswain Grade 3 Near Coastal certificate of competency (CoC)
  • applying appropriate eligibility requirements and duties for the General Purpose Hand Near Coastal CoC
  • detailing sea service requirements, including obtaining a CoC with and without a task book.

Following this final consultation, we aim to have the new domestic commercial vessel qualifications framework and amended Marine order 505 finalised, and ready to come into effect in 2022 with a suitable transition period.

 

Source: amsa


Bureau Veritas has issued novel design approval for what will be the world’s largest Very Large Gas Carriers (VLGCS).

The ‘Panda 93P’ VLGC design has been developed by Jiangnan Shipyard, a leading Chinese gas carrier builder in the CSSC Group (China State Shipbuilding Corporation). Sinogas, the Singapore-based gas shipowner has placed a firm order for two of the 93,000m3 VLGCs, with options for three more vessels. On delivery, these ships will be the largest VLGCs in the world and they will be powered by liquefied petroleum gas. The delivery of these gas carriers, principally dedicated to the carriage of LPG, is scheduled for the first half of 2023 and will mark a further technological leap for Jiangnan in its development of new gas carrier concepts in long-term collaboration with Bureau Veritas.

Jiangnan Shipyard has now completed a significant number of projects in cooperation with BV during the last two decades – and most notably for gas carriers. The Sinogas order is a significant milestone for both shipyard and class society on the journey to a decarbonized industry. Once in operation, the new design will reduce CO2 emissions by approximately 32% less in comparison with the previous generation of 84,000m3 VLGCs powered by low-sulphur fuel oil. This dramatic reduction reflects the highly optimized design and economies of scale, as well as the use of LPG as fuel.

The design is an evolution of Jiangnan’s “Panda” Series of VLGCs with optimised hull-form to allow increased cargo capacity without significant increases in fuel consumption. The design incorporates two deck-mounted LPG fuel tanks, enabling LPG-fuelled operations when carrying non-LPG cargo.

A scheduled review of IMO policy measures could result in more stringent emissions targets, said Jiangnan Shipyard’s Hu Keyi, Chief of Corporate Technology. He believes gas as fuel will be a reliable pathway to bridge the emission gap. “Furthermore, Jiangnan aims to be on the cutting-edge of technological development in this field by pushing for “initiative green” solutions, as opposed to “passive green” based on existing technology.” Hu further explained that the “Panda 93P” builds on Jiangnan’s tradition of “Innovation with Confidence” in the design of gas carriers at the Jiangnan Institute of Technology (JIT), supported by engineering and design expertise from classification societies, like Bureau Veritas.

 

“Through a revolutionary structural configuration, Jiangnan has been able to enhance cargo capacity within traditional “Houston Ship Channel” dimensions without significantly increasing fuel consumption”, Hu said.

This achievement has been realised by the Jiangnan team’s use of computational fluid dynamics (CFD) for hull line optimisation. Jiangnan also adopted smart shipbuilding techniques with the use of digital technology, 3D digital mock-ups, 3D model submission and production planning, erection simulation and lifecycle management.

Hu continued: ““As the strategy of forthcoming transition in marine industry, Jiangnan has positioned itself to establish a multiple party program focused on a fully circular approach to the management of gas-fuelled green ships. Definitely, we will invite Bureau Veritas’ involvement in this program. We think the future maritime industry will be dependent on momentum for continued innovation through increased studies of disruptive technologies and non-traditional materials. Decarbonization is not only the responsibility of shipbuilding and shipping, it will need collaboration across the value chain. More stakeholders need to be involved.”

Alex Gregg-Smith, Senior Vice President & Chief Executive, North Asia & China, at Bureau Veritas Marine & Offshore said: “Bureau Veritas has had many successful projects with Jiangnan Shipyard, especially in gas carrier segment, during the past decades. This new generation of VLGCs establishes a significant milestone towards decarbonization. At BV, we are now more than ever committed to helping in the reduction of our industry’s environmental impact, as well as supporting our stakeholders through their unique sustainability journey.”

 

Source: shipinsight


The above named vessel was detained in Rostov-on-Don (Russian Federation) on 2 September 2021. This is the third  detention in the Paris MoU region within the last 36 months. The ship flies the flag of Comoros, which is black on the current Paris MoU WGB list.

Therefore under the provisions of section 4 of the Paris MoU, Article 16 of EU Council Directive 2009/16/EC, the ship will be refused further access to any port and anchorage in the Paris MOU region, except a port and anchorage of the ship’s flag State. This refusal of access will become applicable immediately after the ship is authorized to leave this port and anchorage.

As this is the first refusal of access order, the period of the refusal of access will be 3 months.

Your attention is drawn to the provisions of Section 4.4 of the Paris MOU, Article 21.6 of EU Council Directive 2009/16/EC1, which allow access to a specific port and anchorage in the event of force majeure or overriding safety considerations, or to reduce or minimize the risk of pollution or to have deficiencies rectified, provided that adequate measures to the satisfaction of the competent authority of such State have been implemented by the company or the master of the ship to ensure safe entry.

 

Source: parismou


Cargo ship is under detention at Terneuzen Netherlands since arrival on Sep 18. Ship’s course alerted Scheltd Coordination Center on Sep 18, because she was sailing towards Borssele wind farm, with no signs of changing course. Attempts to find out what’s going on failed, because as it turned out later, Captain of Azerbaijan nationality didn’t speak English well enough to understand, though he finally, reacted to a direct order to immediately change the course. The ship berthed at Terneuzen same day, and was checked. Inspection found a number of deficiencies, including outdated (understood downloaded from open sources) electronic charts without among other things, navigational buoys; Captain and officers lack of navigational and communication skills (paper charts weren’t used), they also couldn’t make stability calculations. The ship wasn’t identified except that she’s Vanuatu-flagged, but according to AIS data, she should be general cargo ship MY REYHAN, ex- SEAKESTREL, renamed shortly before this incident, probably in September.

 

Source: fleetmon


On the 13th September 2021 the Merchant Shipping Directorate of Transport Malta issued Merchant Shipping Notice 173 highlighting the launch of a joint Concentrated Inspection Campaign (CIC) on ship stability by the Member Authorities of the Tokyo and the Paris Memoranda of Understanding (MOU) on Port State Control (PSC). The purpose of the campaign is to confirm:

  • that commercial ship crew are familiar with assessing the actual stability of the ship before its departure;
  • to create awareness among the ship’s crew and owners about the importance of calculating the actual stability condition of the ship before departure of the ship; and
  • to verify that the ship complies with intact stability requirements (and damage stability requirements, if applicable) under the relevant IMO instruments.

This CIC campaign will be held for a period of three months until 30 November 2021 and a ship will be subject to only one inspection for the duration of the campaign. in preparation of any PSC inspection, the master and officers are to be familiar with operations relating to stability (in general) and with the joint CIC questionnaire, a pre-defined questionnaire used to assess that information and equipment provided onboard complies with the relevant conventions.

Should deficiencies be found, actions by the port State may include:

  • recording a deficiency and instructing the master to rectify it within a certain period of time; or
  • detaining the ship until the serious deficiencies have been rectified.

Commercial Yachts are also included in the CIC should there be a PSC Inspection and consequently it is essential that commercial yacht operators ensure all concerned are prepared accordingly.

In the case of detention, publication in the monthly detention lists of the Tokyo and Paris MoU websites will take place. In addition, the Flag Administration is to be duly notified and a copy of the PSC report submitted to the Administration.

Subject to any COVID-19 developments it is expected that the Tokyo and Paris MoUs will carry out approximately 10,000 inspections during the CIC, while the results of the campaign will be analysed and findings presented to the governing bodies of both MoUs for submission to the IMO.

 

Source: lexology


In the process this almost runs contrary to the previous view of seafarers as being commodities noted panel chairman, National Maritime Museum director and ex-Euronav ceo Paddy Rodgers. Which really brings the whole problem into focus, as recognised by Columbia Ship Management ceo Mark O’Neil, who said: “Expectations have changed and the shift of power has changed from employer to employee.”

Being billed as a session on how to rebuild trust, relationships and reputation gives an idea as to how serious an issue Covid has been for the industry over the past 18 months and the potential long-term effects on talent management.

Many examples of these were highlighted. The tremendous disruption emphasised the importance of communication while also bringing to the fore the shore-to-sea equation and the remote nature of the business, said Pacific Carriers Ltd ceo Hor Weng Yew.

The question going forward is how to enhance and intensify this communication in the face of disruption to our lives, he said while reiterating that trust is key to building this up.

While O’Neil slammed the industry for failing its seafarers, others pointed out that the shipping industry has been somewhat limited in what it can do because of external factors such as the hesitation of governments and port authorities.

This “debilitating sense of losing control of your own destiny”, according to Mission to Seafarers secretary general Andrew Wright has undermined trust greatly.

“You lose a lot of predictability because of Covid,” said V Group ship management ceo Bjoern Sprotte. The rapid and unpredictable changes at ports have made crew change planning a big challenge for both shore staff and seafarers and the situation has not really improved in many regions, he noted.

In this sense the inability of the industry to be able to address important issues with one voice has been a failing. “Shipping needs an urgent reflection on how to have a stronger voice and how we can sustain that visibility and energy to make sure seafarers have higher visibility in the future,” said Wright.

Another shortcoming has been the limited ability to deal with the issue of how families can cope with the situation while their loved ones are stuck out at sea. Where seafarers have not had access to contact with their families it has been difficult for family members and more work needs to be done to address this, said Wright.

Noting that these sorts of issues did not exist before Covid because seatime was relatively fixed and predictable, O’Neil said the most important thing the industry has realised from the Covid crisis was that the people around us are the most important thing, and this represents a fundamental shift in thinking.

However, what it has also shown up is the industry’s lack of proper human resource management and how far behind other industries it is in this respect. While some efforts have been made previously, these have slipped.

“This could be a great moment for the development of our people but we need to make sure the lessons learnt from the pandemic don’t get lost,” concluded Wright.

 

Source: seatrade-maritime


Japan’s Mitsubishi HC Capital (MHC) has snapped up San Francisco-based container leasing company CAI International in a $1.1bn deal.

The deal comprises of $104m of preferred stock and $986m of common stock equity value, and has an enterprise value of $2.9bn, the New York-listed CAI International said.

MHC has offered $56 per share in cash, marking a 46.8% premium over CAI International’s last closing price on June 17. The transaction has been unanimously approved and is currently expected to close in late Q3 or early Q4 of 2021.

After the closing of the transaction, MHC expects to retain CAI’s existing management team and employees. CAI’s shares will no longer be listed on the New York Stock Exchange and its headquarters will remain in San Francisco, said the newly-promoted CEO and president, Timothy Page.

In 2014, Mitsubishi UFJ Lease entered into the container leasing market with the acquisition of Beacon Intermodal Leasing (BIL) and, since then, it has been looking to expand its presence in the field. In September last year, the company reached an agreement with its smaller rival, Hitachi Capital, to create MHC.

SOURCE READ THE FULL ARTICLE

Mitsubishi HC Capital takes over container leasing company CAI International


The ebb and flow of record global liner congestion is neatly encapsulated in two maps provided below from Seaexplorer, a container shipping platform created by logistics giant Kuehne+Nagel.

As of 3.30 pm Singapore time today (see top map) there were 304 ships idle in front of ports around the world waiting for berth space to open up. Seaexplorer data shows there are 101 ports reporting disruption such as congestion. Officials at the Kuehne+Nagel digital offshoot report the number of ships forming queues hit 350 in the middle of this week before falling back to 304, the same level as this time last week (see lower map). Red dots in the enlargeable maps represent clusters of ships while orange ones mark out ports that are congested or suffering from disrupted operations.

The clear change over the past week is how the congestion, so visible in recent weeks in south China, a key export area hit by a Covid-19 outbreak, is now spreading to other important hubs. Singapore, for instance, has seen the number of boxships waiting for berth space increase by 37.5% over the past week, while intra-Asia hubs such as Laem Chabang are now reporting tailbacks and in the US, east coast ports are suffering all manner of disruptions.

While last week, boxships queueing in Chinese waters made up more than 50% of the global total, this has dropped today to less than 40% indicating the growing global congestion contagion.

Terminals are becoming global bottlenecks, be it at berths, yards or gating out cargo

 

Maersk, the world’s largest containerline, in a post from earlier this week discussed the stretched nature of global supply chains, something it warned was now the new normal.

“The trend is worrying, and unceasing congestion is becoming a global problem. Due to Covid-19 and a significant volume push since the end of last year, terminals are becoming global bottlenecks, be it at berths, yards or gating out cargo, and it’s continuing throughout the logistics chain – in the warehouses, the distribution centres – with numbers on the rise,” Maersk stated.

Splash reported yesterday how the partial shutdown of Yantian Port following a Covid-19 outbreak late last month is now on track to affect twice as many containers as were impacted during March’s high profile blockage of the Suez Canal.

Blank sailing data tracked at major Shenzhen ports, including Yantian, by box tracking service project44 has shot up.

Over the period of June 1 to June 15, 298 container vessels with a combined total capacity of more than 3m teu skipped Shenzhen, a 300% increase in blank sailings in one month. Though the total capacity was not meant for Yantian, the volume of loaded export containers that were left behind has caused a severe backlog.

Dwell times at Yantian also paint a grim picture. Over the last two weeks, the seven-day average of median dwell times on export containers from the Yantian terminal doubled in number, reaching 23.06 days on June 15. The mean dwell times on import containers into Yantian were lower, at 5.96 days for the same period, suggesting that carriers are avoiding the port.

“While the epicentre of this particular breakdown is Yantian, these numbers spell trouble across the maritime shipping world, and particularly for companies that rely on these routes,” said Josh Brazil, vice president of marketing at project44. “Even shipments not directly impacted by the Yantian situation could feel the impact, as carriers adjust their networks to avoid congestion at Yantian.”

Hind Chitty, principal consultant at Drewry’s supply chains advisory practice, told Splash: “Carriers are skipping Yantian port in their rotation, creating massive rollovers and multiple side effects, as an additional shortage of empty equipment in the region and an unprecedented surge in the east-west ocean freight rates, which may spread to the other trades lanes.”

Drewry’s World Container Index (WCI), published yesterday, increased 3.4% or $231 this week, and is 305.7% higher than a year ago.

The average composite index of the WCI, assessed by Drewry for year-to-date, is $5,427 per feu, which is $3,468 higher than the five-year average of $1,960 per feu.

The Shanghai Containerized Freight Index (SCFI) also climbed to new highs today, up another 44 points this week to settle on a record 3,748 points with some speculating the extraordinary market forces at play could see the SCFI cross the 4,000 mark soon.

18th June 2021

 

SOURCE READ THE FULL ARTICLE

Liner congestion spreads across the planet, 304 ships queuing for berth space


Estimates suggest more than 600,000 teu has now been affected from the fallout of an outbreak of Covid-19 around Yantian Port in southern China with ports around the world braced for a severe shortage of equipment in the coming weeks, just as the US peak season gets underway.

Quizzed by Splash today as to the total number of boxes hit by the three-week Yantian crisis, Lars Jensen, one of the world’s most respected container shipping analysts, said: “A reasonable estimate right now is that at least 600,000 teu have been impacted – also indicating a backlog of some 300,000 teu of export cargo waiting to get moved out of the region with the remainder being a mix of import cargo and import empty equipment.”

Putting the 600,000 number in context, the Yantian partial shutdown is close to affecting twice as many containers as were hit when the Suez Canal was closed for six days in March during the high profile Ever Given accident.

“The current estimated wait is over a fortnight, causing many carriers to divert vessels to other ports. In total, over 300 sailings from all liners will omit Yantian,” Maersk, the world’s largest containerline, stated in an update today.

Boxes arriving from China to the US today are taking 42% longer than last June

Fortunately, on site there are clear signs that the port’s productivity is improving, albeit it will take many weeks to get through the backlog of boxes with most lines omitting Yantian from many of their schedules for the remainder of June.

An advisory from South Korean liner HMM yesterday stated that Yantian’s productivity is running at 70%.

A customer advisory from Yantian International Container Terminals yesterday stated: ““Current overall operational capacity has returned to 70% of normal levels, and container yard utilisation has dropped from 100% to 70%.”

Looking at these latest numbers Jon Monroe, who runs his own eponymous liner consulting company, pointed out via LinkedIn that based in Yantian’s daily normal throughput of 38,000 teu, if it is operating at 70%, that means 11,400 teu are still being backed up daily.

HMM mentioned waiting times for Yantian gate-in are in excess of seven hours while a Maersk advisory from Tuesday stated that vessel reliability will continue to suffer with an average waiting time of 16 days and counting.

As for the spill-over effects on the neighbouring ports of Shekou and Nansha, HMM stated yesterday that barge connections between Nansha and Yantian are presently difficult to arrange and subject to heavy delays.

The latest setback to liner schedules in southern China is having a noticeable impact on freight rates.

Online international freight marketplace Freightos today noted Asia-US rates to both coasts are now at least triple their level last June.

Asia-US West Coast prices now stand at $6,614 per feu, up 206% year-on-year. Asia-US East Coast prices are now at $9,889 per feu, 244% higher than rates for this week last year.

“The disruption is expected to worsen empty container shortages at skipped ports, and the delays will also mean more cancelled sailings and effectively less capacity in June and July even as demand continues to surge,” Freightos noted today.

The impact of the outbreak at Yantian will be amplified because the industry as a whole is already operating at a deficit – just as it was when the Suez was blocked – with no extra capacity to throw at new problems. For example, Freightos marketplace data show ocean shipments now arriving from China to the United States took 42% longer than last June and this will probably get worse before it gets better.

Echoing this theme from earlier in the month, Alan Murphy, CEO and founder of Danish container shipping consultancy Sea-Intelligence, wrote in an article for Splash that liner shipping’s run of accidents over the past few months had been near impossible to absorb given the uniquely stretched status of carrier equipment around the world.

“High freight rates are driven by equipment and space shortages, which in turn are driven by a confluence of unprecedented US demand (due to pandemic shifts from services to goods) and supply-side disruptions,” Murphy wrote, going on to list port congestion, Covid infections and quarantines in ports such as Yantian, vessels being grounded due to quarantines, and the challenges of vessels getting stuck in canals, dropping boxes, or catching on fire.

“In the past 10 years, vessel incidents would be terrible for those immediately impacted, but they would not have any systemic impact, as the unaffected boxes and boxes waiting to be loaded would just go on the next half-empty ship, but all of the ships are full now,” Murphy pointed out.

SOURCE READ THE FULL ARTICLE

More than 600,000 teu impacted from Yantian fallout


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