LNG is the best fuel option for owners considering how to extend vessel life and secure CII compliance through retrofit, according to SEA-LNG, the multi-sector industry coalition established to demonstrate the benefits of the LNG fuel pathway for shipping decarbonisation. In a piece of analysis released today, the coalition finds significant benefits to a business choosing an LNG retrofit over fuelling with VLSFO or retrofitting an HFO vessel with scrubbers, based on a ten-year payback period.

Increasingly stringent environmental regulations will drive down the CII grades for existing ships and will have a detrimental effect on charter rates for those powered using fuel oil. The financial viability of vessels that are just a few years old will be under severe threat if significant action to reduce emissions is not taken, such as an alternative fuel retrofit.

SEA-LNG’s latest analysis looks at the investment performance of three 2-stroke propulsion options. These were evaluated to compare the most cost-effective solutions available for ship owners: a current VLCC sailing on VLSFO; a retrofitted VLCC sailing with scrubbers on HFO; a retrofitted VLCC sailing on LNG. The simple tool allows users a “Readers’ Choice” to compare fuel prices which generate the same investment returns for each possible investment decision.

“The climate emergency we face is a stock problem, and a flow problem. By choosing to retrofit their existing vessels, owners will be able to reduce GHG emissions now and over the remaining lifetime of the vessel, keeping GHGs from entering the atmosphere,” said Adi Aggarwal, General Manager at SEA-LNG. “Retrofitting vessels provides a faster and cheaper route to the lower emission fuels that are essential to reduce shipping emissions. As alternative fuels and regulations progress, it’s important that we re-evaluate previous investments. LNG retrofits now have a strong business case.”

The chart displays the IMO CII grade ratings for VLCC retrofit alternatives: HFO scrubber, VLSFO and LNG fuel.

Retrofitting vessels to use LNG fuel helps to future proof vessels, reducing costs and improving returns. For owners, modernising a ship through retrofit can be carried out more quickly than building a new vessel. New vessels typically take around two years to build. Accessing and scheduling work with a retrofit yard is often easier, as they have more capacity than newbuild yards. Retrofitting can also be arranged as part of a scheduled drydock call for a VLCC, meaning out of service time is reduced across the entire project.

Adopting LNG fuel on a VLCC improves CII ratings substantially, giving and maintaining a one to two grade improvement over alternatives throughout the remaining lifetime of the vessel. The gap in ratings between LNG and HFO scrubber or VLSFO retrofit options provides a commercial chartering financial advantage to owners who choose the LNG pathway.

LNG is a safe, mature, commercially viable marine fuel offering superior emissions performance, significant Greenhouse Gas (GHG) reduction benefits and a pragmatic pathway to a zero-emissions shipping industry. With drop in bio-LNG or synthetic LNG, the LNG-fuelled vessels are future proofed, enabling compliance with GHG reduction targets as the shipping industry moves towards its 2050 emissions goal.
Source: SEA-LNG

Back in April, we announced that we would be the first shipping company in the world to outfit all of its standard containers with technology for real-time data transmission. This will soon allow us to track our containers around the globe and collect data from them – to boost transparency for us and our customers.

Once the devices are permanently installed on our containers, they will be able to transmit data in real time and thereby make supply chains more transparent and efficient. For example, they will provide GPS-based location data, measure temperatures, and monitor sudden vibrations of the container. In the coming weeks, we will start to equip our container fleet with devices from the well-known TradeTech company Nexxiot AG and, as of the end of the year, as well with devices from ORBCOMM, a leading global provider of Internet of Things (IoT) solutions.

The mass installation of tracking devices in our depots worldwide will begin at the end of August 2022. Our Hapag-Lloyd LIVE product will become available for customers of standard containers in early 2023.Then, by end of 2023, we will be able to track our entire dry container fleet and thereby continue to advance the digitalisation of container shipping.

The new technology will offer us the advantages of being able to create visibility, detect delays earlier, automatically inform any affected customers, and initiate the appropriate countermeasures.

Reference; Hapag Lloyd

Citing the growing supply chain delays around the world and the need for greater digitalisation, COSCO Shipping Holdings, the Chinese state-run container shipping giant, has unveiled a corporate reorganisation.

In a release to the Hong Kong Stock Exchange, COSCO, which runs the world’s fourth largest liner company, said the organisational overhaul would position the company as a “global digital supply chain operation and investment platform” with a core focus on container shipping, ports and logistics.

The corporate reshuffle sees the creation of a new supply chain logistics division as well as a capital operation division.

Comparatively quiet compared to its European peers at the top of the liner leaderboard during the pandemic, sources tell Splash that COSCO is gearing up for a series of new ship orders, which will feature a raft of green technologies and close the gap with France’s CMA CGM in third place in the global carrier rankings.

MSC India achieved another milestone in project cargo shipping solutions, with the loading of a 140-ton transformer on MSC Regina from the port of Mundra, India. This is the heaviest ever breakbulk parcel moved by container ship from India, surpassing MSC’s previous record. The transformer is destined for a greenfield power transmission development project in Zambia.

MSC’s previous heavy-lift record was for the loading of a 115-ton transformer in 2018 at Port of Nhava Sheva. India is catching up countries such as China, Germany, South Korea and the USA, where pieces of more than 200 tons have already been loaded successfully on container vessels.

MSC has always put the customer at the center of its business, including by providing access to dedicated project cargo equipment to ensure the loading goes smoothly. Lifting gears were used to make this a successful loading using the right combination of special equipment.

Putting onboard a 140-ton parcel is a substantial process and requires immense focus and precision. Our teams demonstrated excellent teamwork and ensured synchronized coordination between the terminals, operations teams, stevedores, technical surveyors, and the shipper to analyze the all the technical aspects of the loading.

We extend a special note of thanks to members of the team at Adani Mundra Terminal who extended their cooperation as always. This entire operation was completed in the allotted berthing window, enabling us to maintain the vessel’s service schedule.

The success of this operation has opened new doors for MSC to also cater to the heavy cargo category on container ships. This sets an excellent example of what perfect co-ordination and teamwork can do. Once again, we raised the bar, proving the expertise and hard work can make the impossible, possible.

We are grateful to all our teams who put in their best efforts.

Reference: MSC

Ships exporting Ukraine grain through the Black Sea will be protected by a 10 nautical mile buffer zone, according to long-awaited procedures agreed by Russia, Ukraine, Turkey and the United Nations on Monday and seen by Reuters.

The United Nations and Turkey brokered a deal last month after Russia’s Feb. 24 invasion of Ukraine halted grain exports, stoking a global food crisis that the United Nations says has pushed tens of millions more people into hunger.

Since then Russia, Ukraine, Turkey and the United Nations have been working to hammer out written procedures in the hope that it will assure shipping and insurance companies enough to resume grain and fertilizer shipments from the Ukrainian ports of Odesa, Chornomorsk and Yuzhny.

“We very much hope it will increase the traffic under this initiative,” said U.N. Secretary-General Antonio Guterres’ spokesman Stephane Dujarric after the procedures were agreed.

The initiative has been operating in a trial phase for the past two weeks. Ten ships – stuck in Ukraine since the war started – have departed with corn, soybeans and sunflower oil and meal. Two empty vessels have traveled to Ukraine to collect shipments.

The biggest ship yet, the Ocean Lion, is due to leave the port of Chornomorsk on Tuesday to deliver 64,720 metric tons of corn to South Korea, said the Joint Coordination Centre (JCC) on Monday. The JCC in Istanbul oversees the deal and is made up of Turkish, Russian, Ukrainian and U.N. officials.

Commercial operation
Ukraine, along with Russia, is a major global supplier of wheat and other foodstuffs. However, the first ship to depart Ukraine under the U.N. deal last week is now looking for another port to unload after the initial Lebanese buyer refused delivery, citing a more than five-month delay. read more

The United Nations has stressed that the export deal is a commercial – not humanitarian – operation that will be driven by the market. All ships are required to be inspected to allay Russian concerns they could be smuggling weapons in to Ukraine.

Neil Roberts, head of marine and aviation at Lloyd’s Market Association – which represents the interests of all underwriting businesses in the Lloyd’s of London insurance market – told Reuters that the industry could now “play its part.”

“The successful exit of multiple vessels was beyond the imagining of most people only a few weeks ago and to have come this far is extraordinary,” said Roberts. “To actually achieve the goals of the U.N.’s initiative would be something for historians to reflect on.”

Protection zone
The shipping and insurance industry wanted assurances of a secure journey with no threat of sea mines or attacks to their ships and crews. These are typically covered in standard operating procedures, which is what was agreed on Monday.

“The parties will not undertake any attacks against merchant vessels or other civilian vessels and port facilities engaged in this initiative,” according to the ‘procedures for merchant vessels’ document.

One insurance industry source said the procedures “read as a reassuring set of rules. But will all sides stick to it?”.

Under the agreed procedures, the JCC will provide information on the planned movement of ships through the maritime humanitarian corridor, which will be shared with Russia, Ukraine and Turkey’s military to prevent incidents.

Then as the vessel moves through the maritime humanitarian corridor it will be protected by a 10 nautical mile circle buffer zone around it.

“No military vessel, aircraft or UAVs (drones) will close to within 10 nautical miles of a merchant vessel transiting the Maritime Humanitarian Corridor, excluding territorial seas of Ukraine,” according to the document.

Ukraine’s President Volodymyr Zelenskiy said there was “every chance” the pace of exports could be maintained.

“The key is how in the days to come our partners will prove able to prevent any attempts by Russia to disrupt exports and again further provoke a world food crisis,” Zelenskiy said in a video address on Monday.

Russia has blamed Ukraine for stalling shipments by mining its port waters and rejects accusations Moscow is responsible for fueling the food crisis.

Source: https://www.marinelink.com/news/russia-ukraine-agree-protect-ukraine-498605

The agreements are set to facilitate commercial cooperation, effectively utilizing the parties’ established services and fleets

 Bahri, a global leader in logistics and transportation, has signed two Memoranda of Understanding  with Greek maritime firms Dynacom and SeaTraders to further collaborative efforts and assist Bahri during the continuous enhancement of its award-winning fleet. Both agreements were signed during the Saudi Greek Investment Forum in Athens, which was held at the end of July on the sidelines of the visit of H.R.H. Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud to Greece.

The first MoU was signed between Bahri and Dynacom, while the second was signed between Bahri’s business division, Bahri Dry Bulk, and Sea Traders. Both agreements are effective for a one-year period. The MoUs’ terms will assist the companies’ existing capabilities, establish avenues to seamlessly transfer technology and services, and help develop prosperity within the landscape of both national economies.

Eng. Ahmed Ali Alsubaie, CEO of Bahri, commented on the MoUs stating, “With the signing of these two significant agreements, Bahri has taken yet another major leap towards improving the operational efficiency of our fleet and further establishing our organization both regionally and globally. Dynacom and SeaTraders have developed impressive service portfolios, and we are excited to build a lasting relationship that embodies innovation and strengthens our country’s bilateral relations.”

Eng. Mohammed Bin Battal, President of Bahri Dry Bulk, said, “We are proud to begin the collaborative process with Sea Traders, in ambitious pursuit of expanding our market presence and growing parallel to other dry-bulk shipping leaders. This new agreement gives leeway to a remarkable collaboration between the Saudi Arabian and Greek private sectors. It demonstrates our commitment to providing services of the highest standards to our customers.”

During the Saudi Greek Investment Forum, representatives from both Saudi and Greek governments and the private sector finalized a variety of mutually beneficial investment deals, further bolstering commercial relationships between the two countries. Saudi Arabian and Greek entities signed more than a dozen agreements worth over 15.2 billion SAR.

Source: https://cyprusshippingnews.com/2022/08/03/bahri-signs-two-mous-with-greek-maritime-logistics-companies-dynacom-and-seatraders/

China’s military exercises in the Yellow Sea and Bohai Bay would not disrupt flight services in the Taipei Flight Information Region, but container ships would have to bypass the areas, the Ministry of Transportation and Communications said yesterday.

China’s Lianyungang Maritime Safety Administration on Friday announced that it was banning the entry of ships into certain areas south of the Yellow Sea from Saturday last week to Monday next week due to live-fire drills by the Chinese People’s Liberation Army.

China’s Dalian Maritime Affairs Bureau announced that entry to certain areas of Bohai Bay would be prohibited from yesterday to Sept. 8 due to military exercises.

An arrivals board at Taiwan Taoyuan International Airport is pictured in an undated photograph.

Photo: Chen Hsin-yu, Taipei Times

China’s military exercises in Bohai Bay and areas south of the Yellow Sea would not disrupt international flight routes to and from Taiwan as they would not fall within the Taipei Flight Information Region, the ministry said.

However, the Maritime and Port Bureau has warned Yang Ming Marine Transport, Evergreen Marine Corp and Wan Hai Lines to avoid sending their container ships through these areas for safety reasons, it said.

The nation’s flight and shipping services have gradually resumed normal operations after all seven temporary danger zones China unilaterally declared last week expired yesterday.

Six of the zones expired at 12pm on Sunday, while the last danger zone expired at 10am yesterday, the ministry said.

The Civil Aeronautics Administration (CAA) and Maritime and Port Bureau would continue to guide aircraft and sea vessels to bypass the temporary danger zones to ensure their safety, the ministry said, adding that inbound, outbound and transit flights must avoid the seven temporary danger areas and operate on alternative routes.

On Sunday, the nation had 138 outbound flights, 145 inbound flights and 147 transit flights, CAA data showed.

From Thursday to Sunday, Taiwan had about 150 inbound flights and the same number of outbound flights daily, the ministry said, adding that China’s military drills did not lead to a drastic reduction in arriving or departing flights.

Transit flights gradually resumed after six of the seven temporary danger zones expired, it said, adding that air traffic control offices across the nation would carefully monitor the situation to ensure flight safety.

In terms of shipping services, China’s military drills mainly affected the vessels accessing the Port of Keelung, the Port of Taipei and the Port of Kaohsiung, the ministry said.

Vessels entering and leaving these ports must avoid entering the temporary danger zones, it said.

Maritime and Port Bureau data showed that seven international commercial ports around Taiwan on Sunday recorded 118 inbound and 120 outbound ships, which was not much different from the previous three days, the ministry said.

Source: https://www.taipeitimes.com/News/taiwan/archives/2022/08/09/2003783229