On 23rd July, the Australian Maritime Safety Authority (AMSA) banned the Liberian-flagged oil tanker, AG Neptune, for six months in Australian ports. AMSA examined the Port of Gladstone ship on 17 June 2022 after receiving a complaint regarding underpaying seafarers and welfare-related issues.

During the examination, AMSA found evidence that the employment agreement with 21 seafarers on board the ship was not met, and crew members collectively owed about $123,000.

AMSA, as evidence, discovered that the food and drinking water was of inappropriate quality. The quantity and nutritional value were also insufficient.

It’s also understood that a seafarer wasn’t provided adequate medical treatment and care despite being injured onboard.

Liberia-Flagged Tanker
Image for representation purpose only

AMSA, as a result, detained the vessel for several breaches of the Maritime Labour Convention, and the operator was directed to pay outstanding wages and address these deficiencies.

AMSA executive director of operations Michael Drake said that the seafarers were consistently not paid regularly. Two members of the crew had passed away from seafarer employment agreements.

Drake added that Australia accepts zero tolerance for underpayment of crew members. This type of behavior is unethical and in contravention of the MLC. The international conventions meant to safeguard the seafarers’ rights are clear.

The vessels visiting Australian ports notice that if deliberate underpaying of the crew members is discovered, they may have to pay penalties.

The AMSA takes the MLC seriously and strives to make sure that seafarers’ health and well-being are maintained on all vessels in Australia.

AG Neptune, built in 2013, is a crude oil tanker flagged in Liberia. It has a capacity of approximately 105,405 DWT tonnes.

AIS data reflects that the vessel departed Gladstone anchorage on 25 July and is moving toward Singapore.

References: The New Daily, DCN, MSN


GTT announces that it has received, at the end of June, an order from its partner the Korean shipyard Samsung Heavy Industries for the tank design of fourteen new LNGCs, including twelve vessels on behalf of an American ship-owner, and two on behalf of an Asian ship-owner.

As part of this order, GTT will design the tanks of these fourteen vessels, which will offer a cargo capacity of 174,000 m3 each and will be fitted with the Mark III Flex membrane containment system, a technology developed by GTT.

Deliveries of the vessels are scheduled from the fourth quarter of 2024 to the third quarter of 2026.

Source:https://www.maritimeeconomy.com/post-details.php?post_id=aGVpag==&post_name=GTT%20Receives%20an%20order%20from%20Samsung%20Heavy%20Industries%20for%20the%20Tank%20Design%20of%20Fourteen%20New%20LNG%20Carriers&segment_name=4


The Chief Minister of Andhra Pradesh Sates, Shri YS Jagan Mohan Reddy has performed the Bhoomi Pooja of Greenfield Ramayapatnam Port construction project on July 20, 2022, marketing the beginning of INR 3,736.14 crores project of the development of Ramayampet Port in Nellore district.

The Goverment of Andhra Pradesh state has set a target of completing first phase at a cost of Rs 3,736.14 crores in 36 months. Four berths will be developed under the first phase. The government expects once completed the port will handle 25 million tonnes a year.

The Nellore district administration has acquired 803 acres of land and handed it over to the Andhra Pradesh Maritime Board (APMB). The state government will be building the port with its own resources to generate more revenue.

Source: https://www.maritimeeconomy.com/post-details.php?post_id=aGVnbA==&post_name=Chief%20Minister%20of%20Andhra%20Pradesh%20Shri%20YS%20Jagan%20Mohan%20Reddy%20Lays%20Foundation%20Stone%20For%20Ramayapatnam%20Port&segment_name=


St. Johns Ship Building hosted a keel laying ceremony for the first Incat Crowther 30 Crew Transport Vessel (CTV) built in compliance with Jones Act regulations in the United States. St. Johns Ship Building was recently acquired by Americraft Marine Group, a maritime subsidiary of the U.S.-headquartered privately-owned business group, the Libra Group which has 45 years of maritime heritage through its original subsidiary Lomar.

Representatives from St. Johns Ship Building, Americraft Marine and Windea participate in keel laying ceremony at St. Johns Ship Building in Palatka, Florida (PRNewsfoto/Americraft Marine)

Representatives from St. Johns Ship Building, Americraft Marine and Windea participate in keel laying ceremony at St. Johns Ship Building in Palatka, Florida (PRNewsfoto/Americraft Marine)

Representatives from the customer team at Windea, a partnership of Hornblower Wind and MidOcean Wind, participated in the important milestone, and the event marks the first in a series of vessels under construction at St. Johns for Windea that will go into service at the Vineyard Wind I construction project near Martha’s Vineyard, Massachusetts.

“This ceremony is a very proud moment for Americraft Marine, as it represents the first keel laying ceremony at St. Johns Ship Building under our ownership and is the culmination of a lot of hard work from the outstanding team at St. Johns,” said Ed Sheets, executive vice president and director of business strategy for Americraft Marine Group. “We could not be happier to have Hornblower and their partners return to St. Johns Ship Building to build the vessels that will help America move closer towards energy independence and a cleaner, healthier environment for generations to come.”

The construction of this series of Incat-designed vessels also signals the official launch of St. Johns Ship Building’s new focus on dedicated high-speed aluminum vessel production. The Incat 30 is a 30-meter crew transport vehicle with a max speed of 29 knots and made of marine-grade aluminum. The groundwork for this focus on supporting the construction of Jones Act-compliant CTVs was laid more than two years ago through multiple facility modifications and the acquisition of new production equipment such as the installation of a computer numerical control (CNC) router for processing of non-ferrous metals and composite materials.

“The employees at St. Johns Ship Building continue to work hard to augment our well-equipped facility to support a diversified product line, which already includes several steel and aluminum projects,” said Jeff Bukoski, president of St. Johns Ship Building. “Our efforts are reinforcing the industrial strength of U.S. shipbuilding, and we remain prepared to construct and repair almost all of the various vessel types that will be required to support the future of this country’s offshore wind development needs.”

Source: https://www.maritimeeconomy.com/post-details.php?post_id=aGVoag==&post_name=St.%20Johns%20Ship%20Building%20Announces%20Keel%20Laying%20Ceremony%20for%20Jones%20Act%20Compliant%20Crew%20Transfer%20Vessels&segment_name=4


By Byungwook Kim and Heekyong Yang (Reuters) – South Korean contract workers at the country’s number 3 shipbuilder agreed on Friday to end their strike after accepting a much smaller wage hike than demanded as well as job guarantees, union officials and subcontractors said.

Since late last month, about 100 sub-contractors pressing for an increase of 30% have occupied the main dock at the shipyard run by Daewoo Shipbuilding & Marine Engineering (DSME) in the southern city of Geoje. Read full story

The shipyard is one of the world’s biggest and the strike has led to delivery delays of eight vessels by as much as five weeks, just as the global shipbuilding industry is signaling a rebound.

Related Book: Heavy Metal: The Hard Days and Nights of the Shipyard Workers Who Build America’s Supercarriers
by Michael Fabey

Orders have come in as European countries rush to ramp up liquefied natural gas (LNG) deliveries to replace Russian gas supplies in the wake of the Ukraine crisis.

Union officials accepted an offer of a 4.5% wage increase and a promise of job guarantees for workers at some subcontracting firms that may be closing, a union official told reporters.

South Korea’s labor minister Lee Jung-Sik told a briefing that the agreement sets an important precedent for resolving labor-management disputes, adding that the government hopes that labor-management culture based on laws would be established in the future.

More than 90% of the striking workers agreed to accept the deal, though “No one in the union is satisfied with the tentative agreement,” another union official said.

The agreement reached on Friday also leaves open the possibility of legal action against the contract workers to recover damages after they occupied the dock during the strike.

“Concerning problems that arose from the strike process, we will respond in accordance with the law and principles,” Daewoo Shipbuilding said in a statement.

The strike was the second major industrial dispute for the government of President Yoon Suk-yeol who took office in May, after a truckers’ strike in June ground the country’s major industrial facilities and sea ports to a halt.

It came as the latest challenge for the conservative president who has promised business-friendly policies but has grappled with record inflation, affecting some of the lowest-paid workers in the country the most.

Yoon had called the strike at Daewoo illegal and hinted the police may be sent in to break it up by force.

Daewoo has previously said it expected a daily loss of 32 billion won ($24 million) from the strike, adding that the dispute had cost it more than $400 million by mid-July.

“We will put all our capabilities into making up for delayed production, and work harder for a co-operative co-existence with subcontractors,” Daewoo Shipbuilding added in a statement.

Source: https://gcaptain.com/daewoo-shipyard-workers-reach-deal-to-end-strike/


The tanker market is expected to keep on growing over the course of the coming years, until we hit the so called peak oil demand, after which it should be a constant state of decline. In its latest weekly report, shipbroker Gibson said that “the current spike in global oil prices and a tight supply situation has put the issue of peak oil demand back into focus. Those who thought the Covid-19 demand destruction of 2020 would permanently dent world oil demand were quickly proven wrong as shown by the 5.7% rebound in demand in 2021. Furthermore, demand has continued to expand despite oil prices trading firmly in the $100/bbl range since the start of the invasion of Ukraine and the looming threat of an economic recession. This calls into question when exactly peak oil demand could occur and what this might in practice look like as the demand outlook varies by region, particularly in terms of decarbonisation policies. Most current estimates place peak demand occurring between 2030 and 2040, although it is worth noting the subsequent decline in demand is unlikely to be cliff edge and oil is likely to play a role in the global economy for decades to come past 2040”.

 

According to Gibson, “in their latest monthly report, the IEA has revised down its demand growth estimates for 2022 and 2023. It now forecasts demand at approximately 99.2 mbd and 101.32 mbd respectively versus 99.43 mbd and 101.6 mbd in their June forecast. This is being driven by a combination of economic uncertainty and signs that rising prices are causing some demand destruction; a weaker than expected start to US driving season gasoline demand may be evidence of this as consumers begin to cut back their spending across the board in response to higher and more persistent inflationary pressure. Whilst Chinese demand may be showing some signs of recovery as it eases strict “Zero-Covid” restrictions; overall economic activity remains weak and oil demand is yet to fully recover to robust levels. Chinese demand will likely be a key uncertainty in at east the short-term. Since the invasion, few have dared to predict longer term oil demand given the uncertainties involved, with the IEA’s flagship oil 2022 report being understandably delayed past its original March release date. Few other forecasting agencies are willing to forecast long term oil demand with any degree of confidence”.

The shipbroker added that “nonetheless, despite this shorter-term concern, demand has been improving compared to 2020 levels. Easing mobility restrictions are increasing seasonal demand for jet and road transport fuel, particularly in emerging markets, which in turn has resulted in higher refinery runs as refiners look to capture higher margins. This has led to higher crude demand; and comes as the global crude trade continues to shift and readjust to the new trade reality following sanctions on Russian oil. Other areas of continued oil demand include power generation where European and Middle Eastern utility companies are increasingly viewing oil as a cheaper alternative to natural gas and LNG in electricity generation. The petrochemical sector also represents a key source of expected future oil demand, in particular naphtha demand has been strong in recent years, although the IEA is now forecasting a 220 kbd drop in demand in 2022 as current uncertainties reduce demand in the short term, although in the longterm future economic growth should improve this outlook”.

Source: GIBSON SHIPBROKERS LTD

“When it comes to putting an expected date on peak oil demand, a key factor is decarbonisation policy. Europe, the UK, US, and China are all scheduled to phase out the sale of new gasoline and diesel vehicles by 2040; with sales expected to decline dramatically over the course of the 2020s and 2030s in line with broader targets of net zero by 2050. This indicates peak oil demand is likely to occur between 2030 and 2040 but some regions such as Europe could peak earlier than developing economies in Asia, Africa, and the Middle East. Therefore, slower longer term oil demand growth rates and an eventual peak in demand suggests tanker owners will need to engage in lower fleet replenishment and this investment will likely concentrate on replacing older and less economical tonnage as well as ensuring regulatory compliance. Over the medium term, aside from recession risk, the oil trade is expected to continue growing before a longer-term peak and then decline once this eventually materialises”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide


Capesize

 

A mixed week for the Capesize sector, but it ended on a positive note. The timecharter average of the five routes rose above the $20,000 level and closed at $22,362 on Friday. Activity was largely seen from the Pacific, including coal from Indonesia and iron ore from West Australia to China. The latter maintained above $11 with a marginal improvement compared to the end of last week. Tonnage availability looked tight for ballast trades for first half of August. As the week finished, the Brazil market saw more second-half August enquiry and settled at $32.111 for iron ore from Tubarao to Qingdao. In the North Atlantic, fronthaul and transatlantic business appeared to be less active than recently, declining week-on-week to $30,278 and $47,083 respectively.

Panamax

Something of a midweek push gave the Panamax market a much needed boost. However, the week did end on a somewhat subdued note as market players adopted a cautious approach. The north Atlantic began the week brightly with a glut of transatlantic deals concluded basis delivery APS load port in the low $30,000s. This equated for BKI types to circa $17/18,000 delivery this side, whilst East Coast South America saw better demand for second-half August arrival dates. An 82,000-dwt delivery Passing Muscat Outbound achieved just over $20,000 for a trip via EC South America redelivery Singapore-Japan midweek. Asia, for weeks, has been primarily Indonesia coal centric. But the market was marginally better supported this week by Australian coal, which was primarily destined for India. A 81,000-dwt giving delivery South China fixed at $19,000 for a trip via Indonesia to India. Period news included an 81,000-dwt delivery China achieving just shy of $20,000 for a five to eight month period.

Ultramax/Supramax

Overall a slightly more positive week than of late. The Atlantic saw improved activity from the US Gulf region and also stronger demand from East Coast South America for August dates. A good amount of enquiry helped sentiment gain ground from South East Asia. However, there was ample supply of tonnage. On the period front, limited activity was seen. A 61,000-dwt was rumoured to have fixed a short period around $26,000. The Atlantic saw a 58,000-dwt fixing a US Gulf fronthaul redelivery Japan at $28,000 and a 52,000-dwt fixing from Mobile for a trip to East Coast South America in the low $27,000s. From Asia, A 52,000-dwt fixed delivery Singapore for a trip via Indonesia redelivery China at $24,000. For Australian business, a 58,000-dwt was heard fixed delivery Singapore via Australia redelivery Singapore-Japan at around $25,000. From the Indian Ocean, 63,000-dwt open East Coast India was heard to have fixed a trip to West Africa with bagged rice in the upper $20,000s.

Handysize

A positive week in both basins despite limited visible activity. East Coast South America remained buoyant, with a 32,000-dwt fixing from Santos to Morocco at $27,000 and a 35,000-dwt rumoured to have fixed from South Brazil to Morocco at $29,000. A 37,000-dwt was fixed from Fairless Hills via North Brazil to Norway with alumina at $17,500. From the Mediterranean/Continent, a 32,000-dwt fixed from Safi to Chittagong with fertilizer at $19,000. Also, a 32,000-dwt fixed from Canakkale via the Black Sea to Algeria at $18,000. From Asia, it was a mixed bag. A 38,00-dwt was rumoured to have been covered for a trip from CJK via Australia to China at $20,500. A 37,000-dwt was also rumoured to have been placed on subjects for a trip delivery Singapore via Australia redelivery China at $22,500. Period activity remained sparse, but a 38,000-dwt open Santos was rumoured to have fixed for three to five months trading at $27,500.
Source: The Baltic Exchange


When a vessel changes ownership and/or manager, it can take some considerable time before the new crew and management are fully familiar with the vessel. Familiarisation starts as soon as ship’s staff get onboard and must be completed before sailing.

 

The ISM Code requires that all crew receive a proper familiarisation on the vessel prior to sailing.

ISM Code 6.3 The Company should establish procedures to ensure that new personnel and personnel transferred to new assignments related to safety and protection of the environment are given proper familiarization with their duties. Instructions which are essential to be provided prior to sailing should be identified, documented and given.

Members are reminded that to sail the vessel safely, be ready for the possible PSC inspection at the first port and the Club’s required condition survey, below are some essential areas to be familiar with.

Crew-familiarisation

General Routines– all Officers and Crew:

  • PPE Matrix
  • All alarm signals – General, Fire, MOB, Abandon Ship, CO2, etc.
  • All accesses and emergency escape routes
  • All watertight doors – all locations and alarm panel
  • Emergency muster – all emergency duties explained
  • Boat muster – lifeboat, liferaft, Marine Evacuation Systems launching procedures and duties explained
  • Fire detection system – locations of fire alarm panel and fire detectors and operation procedure
  • Automatic door release mechanisms on fire doors
  • Fire-fighting appliances – all locations and uses
  • Life-saving appliances – all locations and uses
  • First aid equipment
  • Pollution control
  • Security duties
  • Internal communication system
  • Enclosed space locations and entering procedure
  • Safety Data Sheets – all locations and uses
  • Location of SMS Manual and Safety Training Manual
  • DPA contact details

Deck Officer

  • Navigational Systems and Equipment
  • Telegraph and Bridge control of Main Engine (Changeover procedure to engine room control)
  • Thruster(s) control
  • Steering system – Manual, Auto-pilot, changeover to Emergency
  • Manoeuvring characteristics and stopping distances
  • Whistle controls
  • Navigational lights, signalling lamp and bridge search lights
  • Deck, overside and bridge lighting panels
  • GMDSS Equipment including VHF equipment
  • Course and Engine telegraph recorders
  • VDR
  • Bridge alarms and indicators
  • Cargo securing arrangement
  • Ballast system and ballast water management plan
  • Cargo space bilge system and water ingress alarm system
  • Fixed gas detection system
  • IG system
  • Ventilation system shutdowns
  • Deck machineries and lifting appliances control and emergency stops
  • Hatch covers operation
  • Mooring system

Engineering Officer

  • Main Engine start (from bridge, ECR and locally), changeover of Main Engine control
  • Generators (remote and local control, paralleling operation) and emergency diesel generator
  • Steering gear – Manual and changeover to Emergency mode
  • Oily water separator and engine room bilge system
  • Boilers
  • Purifiers
  • Main and emergency air compressors
  • Pumps start (Manual/Automatic/Stand-by)
  • Fuel and lub. oil transfer and bunkering procedure
  • M.E / D.G / Boiler fuel change
  • Engine room monitoring and alarm system
  • Restoring from electrical circuits trip
  • Quick closing valves and emergency shutdowns
  • Ballast system and ballast water management plan
  • IG system
  • Ventilation system
  • Deck machineries and lifting appliances control and emergency stops
  • Hatch covers operation

Deck Crew

  • Deck machineries and lifting appliances control and emergency stops
  • Hatch covers operation
  • Steering system
  • Mooring system
  • Cargo securing arrangement
  • Sounding arrangements of bilge and ballast

Engine Crew

  • Engine room equipment
  • Main and emergency air compressors
  • Quick closing valves and emergency shutdowns
  • Ballast system
  • Sounding arrangements of bilge

*Additional safety equipment as per vessel type: Polar Vessels, Oil Tankers, Chemical Tankers, Gas Tankers, Passenger Vessels, Helicopter operations, Fast Rescue Craft, Ro-Ro (Ventilation System), Ro-Ro Pax (Means of Access)

Familiarisation for a 100% change of crew requires extra attention. Bearing in mind all vessels are unique, Members should make sure they have the correct routine for their own vessels.
Source: West P&I Club


Marsoft Inc., a leading maritime consultancy, and ClimeCo LLC, a leading player in the carbon credit market, announce a collaboration to expand the scope and value of Marsoft’s GreenScreen carbon credit services (GreenScreen), removing financial barriers to the shipping industry’s commitment to achieving material carbon emissions reductions.

With MarineSoft’s GreenScreen services, Shipowners can issue Gold Standard carbon credits based on the reduction in CO2 emissions created by retrofitting their ships. As a result of the credits being sold, investments in retrofits can be made, reducing risks and increasing profitability from the reduction in CO2 attributable to the retrofits.

“Carbon credits can be an important source of funding for retrofits that reduce fuel consumption and CO2 emissions. Gold Standard certification of those reductions gives owners access to the rapidly expanding voluntary carbon market. By collaborating to simplify, accelerate, and cut costs from the carbon credit verification, issuance, and monetization process Marsoft and ClimeCo will make carbon credits part of the industry-wide solution to the challenge of decarbonization,” said Arlie Sterling, President at Marsoft Inc.

Bill Flederbach, CEO and President of ClimeCo, highlighted the value of this newly formed team: “We will deliver substantial cost and time savings while enhancing value to those customers who take advantage of GreenScreen. ClimeCo is putting its 17 years of experience and unmatched carbon trading scale and expertise behind shipowners and their determination to decarbonize their business. ClimeCo’s deep carbon market expertise and relationships will maximize the value of their carbon credits.”

Erika Shiller, VP of Project Development at ClimeCo, emphasized the powerful benefits from the collaboration. “Leading shipowners have already signed up for GreenScreen and have already budgeted a million-tonne reduction in CO2 emissions over the next five years. The Marsoft/ClimeCo team will establish a high value/high liquidity presence in the carbon markets for credits from shipping. GreenScreen is proven and unique, and we are committed to making it even better by teaming with Marsoft.”

Combined with Marsoft’s shipping expertise, GreenScreen’s breakthrough technology, and ClimeCo’s carbon solution development and market reach, the shipping industry finally has the solution it needs to reduce emissions. Together, Marsoft and ClimeCo offer shipowners a means to reduce their CO2 emissions now at minimum cost and maximum revenue potential.

ClimeCo and Marsoft have committed to offering an industry-level solution to verify CO2 emissions reduction, issue credits, and monetize credits. The combination of ClimeCo’s environmental solutions track record and Marsoft’s breakthrough management tools for the shipping industry ensures that the shipping industry can benefit from the state-of-the-art and critical mass. Marsoft and ClimeCo have invested substantial resources and are willing to invest alongside the shipowner to reduce CO2 emissions.

Source: https://www.seanews.co.uk/maritime-events/climeco-and-marsoft-join-forces-to-decarbonize-shipping/


Insurers will only be willing to cover ships sailing through a proposed corridor to get Ukrainian grain out if there are arrangements for international navy escorts and a clear strategy to deal with sea mines, underwriters and brokers say.

Russia, Ukraine, Turkey and the United Nations are expected to sign a deal later this week aimed at resuming the shipping of grain from Ukraine across the Black Sea.

Ukraine’s ports have been closed since Russia’s invasion in February, which Moscow calls a “special military operation”, with marine insurers based in Lloyd’s of London and the wider London commercial insurance market awaiting more assurances given the potential losses involved with every ship.

Insurance for the ships would be possible “if a sensible solution were offered”, said Rory Colacicchi, a partner at insurance broker McGill and Partners.

“There would have to be escorts, mine sweepers, so an underwriter could say ‘that’s given us the satisfaction that it’s not just a gamble’. At the moment, that’s just a gamble, you wouldn’t be able to go.”

An acceptable escort could be provided by joint Ukrainian and Russian ships, or by the United Nations or a neutral power such as Turkey, insurance sources said.

An aide to mine sweeping could be the use of satellite technology to identify the locations of the mines, said a marine war insurer who declined to be named due to the sensitivity of the issue.

Countries such as the United States, Britain or France may have that technology, the insurer added.

The initial problem is that there are over 80 ships stuck in Ukraine – many with cargoes onboard including grain – which need to get out before new ships can go in, sources said.

A second UK-based broker, who declined to be named, said his firm had worked to get an “insurance framework” in place for a ship willing to go into Ukraine to bring out grain, once a corridor is in place.

“The client is on standby to go in from a humanitarian perspective,” the broker said.

Additional premiums charged to go into the broader Black Sea area have dropped, reflecting more confidence to provide insurance since February, industry sources said.

The additional premiums paid to go into Black Sea waters have dropped to 2% of the value of the ship from 5% shortly after the invasion, said Marcus Baker, global head of marine at broker Marsh.
Source: Reuters (Reporting by Carolyn Cohn and Jonathan Saul, editing by Sinead Cruise and David Evans)


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