Observers of the US Supreme Court say new rules could be promulgated by the Securities and Exchange Commission (SEC) earlier this year, mandating environmental disclosures.

If the proposed rules move into law, shipping companies with shares transacted on US exchanges, along with all other listed companies, would need to provide extensive information on their emissions.

Related: Analyst’s top picks of US-listed shipping stocks

More broadly, the myriad of listed companies moving cargo would need to put numbers on emissions tied to production and transporting materials used in their processes; shipping companies would therefore need to be providing more information to their charterers.

Legal analysts and legislators are divided on whether environmental disclosures are within the SEC’s authority- regulating financial matters. One Republican Senator, Pat Toomey (Republican-Pennsylvania) was quoted as saying that the agency “is attempting to impose this whole climate change disclosure regime … with no authority from Congress to do that.”

Source: https://www.seatrade-maritime.com/finance-insurance/us-listed-shipping-firms-could-be-required-disclose-emissions

Construction is underway on the first shore power installation specifically designed to handle containerships. The demonstration project is being built at the Port of Hamburg initially serving two of the terminals and is due to enter an initial test phase in 2023.

The Hamburg City Council authorized the project at the end of 2021 as part of the city’s overall plan to improve air quality and begin dramatically reducing greenhouse gas emissions by 2025. Hamburger Hafen und Logistik (HHLA) which will have the first capability at two of its container terminals, points out that shore power is complex and not easily installed.

Working with the successful installation of shore power for cruise ships at Hamburg Altona as the model, the Hamburg Port Authority, as proprietor of the quaysides at the Port of Hamburg, commissioned Siemens to construct the shore power systems. The stations are being built at the container terminals Burchardkai and Tollerort operated by HHLA.

While the use of shore-side electricity substantially reduces the emissions of a docked ship, HHLA explains some of the challenges required to making shore power available for ships in the port. They pointed out that for a containership to turn off diesel generators usually used for power on board, it requires about as much power as a small city.

The electric grid and generation capacity needs to exist to support the installation or additional generating capacity is required before shore power can be made available. Many ports around the world looking to provide shore power faces these challenges, while experts also point out that increasing the on-shore power generation needs to be done in an environmentally appropriate means so as not to transfer the emissions from the ship to the power plant.

HHLA explains that currently approximately 75 percent of all ships are equipped with 60-hertz onboard power systems. Yet only a quarter of all countries’ electrical grids operate on this frequency. For example, Germany uses 50 hertz. This requires a complex undertaking to adapt the land frequency and onboard frequency to provide safe power to the ships.

The first shore-side power station in Europe for cruise ships began operations at the Cruise Center Altona in 2016.  Since then, numerous ports have adopted shore power and with pending regulations in Europe for in-port emissions, it is expected that more ports will adopt shore power.

While shore power is currently mostly used for cruise ships and ferries, several ports have begun to explore extending it to commercial shipping. Gothenburg, Sweden reported that it was the first port to provide shore power for tankers. The Port of Rotterdam and Stolt Tankers working with Vopak Botlek recently announced a six-month feasibility study for the use of shore-based power for chemical tankers. They highlighted the unique safety concerns of using shore power with tankers.

Hamburg is also participating in a collation with the ports of Antwerp, Bremerhaven, Haropa Port in France, and Rotterdam looking to coordinate their efforts at launching shore power. The five port authorities are calling for a coordinated approach to reduce capex costs through innovation and to provide clarity that will stimulate the shipping sector to equip vessels and make it possible for vessels to use shore power in multiple ports. Working together they plan to coordinate the efforts in their respective ports to ensure consistency in shore power to encourage the industry’s adoption of the technology for a wider segment of ships.
Source: https://www.maritime-executive.com/article/first-shore-power-capability-for-containerships-being-built-in-hamburg

Russia’s grain theft from Ukraine and subsequent potential smuggling via cargo vessels have received a significant and justified amount of mainstream media attention. Windward’s unique Maritime AI™ technology has identified a worrisome new phenomenon: alleged Russian grain laundering.

This analysis covers how it is happening based on our proprietary insights. Windward’s report offers previously unreported information on five vessels engaging in dark activities and ship-to-ship (STS) operations in the Kerch Strait in June 2022 as part of what appears to be a coordinated effort to launder grain allegedly stolen from Ukraine. There has been a 160% increase in dark activities in the Black Sea by bulk carriers flying either the Russian or Syrian flags when comparing July 2020-June 2021 to July 2021-June 2022. Of the events that happened between July 2021 and June 2022, 73% took place after the war began. There’s a second component: ship-to-ship (STS) meetings.

Mostly Russian-flagged cargo vessels and other ships operating under flags of convenience appear to be meeting with one to four cargo and service vessels simultaneously in the Kerch Port offshore waiting area. This analysis will take a close look at both of these aspects and will detail the journeys and behaviors of the vessels involved in the coordinated effort. The report ends with some brief guidance for the maritime industry regarding risk mitigation in this evolving environment.

Trade Flow Brief
Windward’s AI-driven, proprietary data has identified leading suspects of potential Ukrainian grain smuggling. The trade flow map (below) helps visualize the common routes sailed by vessels Windward’s technology has flagged and tracked.

An analysis of the routes shows that the grain smuggling tradeflow goes through both the Kerch and Bosporus strait. The grain is allegedly smuggled from Ukraine to Syria and Turkey mainly. But how, exactly?

Dark Activity Skyrockets
One of the most basic deceptive shipping practices used to conceal vessels’ location, operations at sea, and illicit activities is going “dark” (temporarily or permanently disabling the automatic identification system). Unlike instances where the vessel loses its signal due to lack of reception, bad weather, legitimate security considerations, etc., going dark is an intentional choice to avoid transparency. Windward’s behavioral insights indicate that old behavior is now being applied in a new way. Dark activities were traditionally focused on crude oil smuggling, but we are seeing vessels go dark to load smuggled grains from Ukraine and then either make a visible port call, or a dark discharge of cargo in either Turkey or Syria.

Our Maritime AI TM technology shows a 160% increase in dark activities in the Black Sea by bulk carriers flying either the Russian or Syrian flags when comparing July 2020-June 2021 to July 2021-June 2022. Of the events that happened between July 2021 and June 2022, 73% took place after the war began.

The shift in dark activities was not only noticeable for event location but also regarding vessel identity. Windward’s data indicates that in 2020-2021, there was a monthly average of 0.83 dark activities in the Black Sea by Russian or Syrian-flagged and owned bulk carriers. That number increased to a staggering monthly average of 2.25 dark activities in 2021-2022, with a boost in March 2022.

Returning to the above trade flow map (image 1), the first area of operations on vessels’ voyages out of the area would be the Bosporus Strait. Windward’s data shows that the number of area visits by bulk carriers has doubled since February 2022. From July 2021-February 2022, the monthly visits average was 4.75. Since the invasion, that monthly average has gone up to 10 visits to the area.

To obtain a deeper understanding of the dark activity trend, we looked at all general cargo and bulk carriers, regardless of their flag, from March 1, 2022 through July 15, 2022. Windward’s platform flagged a total of 170 events where cargo and bulk carrier vessels went dark in the Azov Sea and then resurfaced on their way out through the Bosporus Strait. One hundred and fifty-six (156) of the events showed a similar pattern: vessels calling port with the allegedly smuggled grain while their AIS were turned on. Out of these visible port calls, 71% were in Turkey and 20% in Bulgaria. The remaining 14 events showcased a different pattern. Cargo and bulk carrier vessels went dark twice during their travels – once in the Azov Sea and again at their port of destination. In 85% of these identified events, the destination for the alleged smuggled grain was Syria. During the same timeframe last year (March-mid-July 2021), for comparison, Windward only identified one dark-to-dark activity (a vessel going dark to load the grain and then to discharge it). This type of behavior is emergent, meaning Windward expects to see the trend grow as the conflict continues

Going Beyond Dark Activities to STS…
Grain smuggling goes beyond mere dark activities to conceal the origin, transportation, and destination of stolen grain. Windward’s platform identified an additional behavioral trend: “grain laundering.” It features a combination of dark activities and ship-to-ship (STS) meetings in the open sea. It appears that mostly Russian-flagged cargo vessels and other ships operating under flags of convenience are meeting with one to four cargo and service vessels simultaneously in the Kerch Port offshore waiting area.

Some vessels stay in the area and only make trips up North and then back to the Kerch area, while others make the voyage outside of the disputed area to distribute the potentially stolen grain.

Meeting in June
When overlaying Windward behavioral vessel data and insights with Planet Labs’ daily satellite images, an intriguing example of the new grain typology was discovered.

On June 10, 2022, there were five vessels engaging in ship-to-ship operations in the Kerch Strait: three cargo vessels that Windward flagged for alleged grain smuggling (vessels “D,” “L,” and “K”), and two service vessels. All vessels are sailing under the Russian flag, except for one cargo vessel under the Belize flag. Let’s deep dive into the details of this event: Vessel D Vessel D is a bulk carrier sailing under the Belize flag. Since June 2022, it has been owned by a Turkish-based company. On May 21, the vessel called port in Misurata, Libya and stayed there for nine days. Following the port call, the vessel changed its reported draft from 10.1 to 6.2, indicating that it likely discharged its cargo. After this port call, the vessel had six meetings over six hours in the Kerch Strait area, including the specific meeting that is the focus of this analysis. On June 13, the vessel updated its reported draft from 6.2 to 9.9. After the meeting on June 10, it called port in Metalurji, Turkey, and updated its draft to 6.2 – indicating a potential discharge of cargo. Vessel D is currently in Libya (as of July 19, 2022) following yet another journey to the Kerch Strait and several ship-to-ship engagements. Analysis shows that following the potential ship-to-ship grain smuggling, where it collected Ukrainian grain via an STS meeting in the Black Sea, it distributed the cargo mainly to Turkey and Libya.

Next Steps for Risk Mitigation
The first step in risk mitigation is fully understanding both recent history and the current situation. The maritime domain has substantially changed since OFAC’s initial introduction of deceptive shipping guidelines back in 2020. Not only have bad actors continued to evolve and look for new ways to conceal their illicit activities, but the scope of deceptive practices has gone far beyond the initial “crude tankers + smuggled oil to avoid sanctions” equation. In addition to a proliferation of dark activities in the Black Sea area since the Russian invasion of Ukraine, we are now witnessing coordinated cargo ship-to-ship meetings involving multiple ships in what looks like a clear attempt to evade restrictions and sanctions via smuggling. It is now clear to every shipping stakeholder dealing with trade that deceptive shipping practices and risk mitigation are relevant to all vessels and types of commodities – oil is no longer the main driver of the maritime economy. Knowing who you are doing business with, and where your counterparties have been prior to your current deal, is crucial if you are looking to protect your business from reputational, financial, and legal/criminal risk in this new era of alleged grain laundering and other forms of smuggling and deception. The main question that needs to be addressed is: “How can we protect our business?” Governmental and law enforcement entities should of course lead the way, but all players in the maritime ecosystem would be wise to proactively pursue real-time, predictive insights that will help significantly reduce and manage their risk.
Source: Windward

The battle for the control of a 104,000 metric ton shipment of Iranian oil returned to the Greek courts today with the United States continuing to press its claims to seize the shipment which has been under dispute for the past three months. The claims to the oil were presented to the Greek Supreme Court which is expected to rule shortly if the oil will be returned to Iran or if the U.S. can continue with its seizure.

Adding a new complication to the case, the shipping company hired by the United States to transship the oil from the tanker is seeking to intervene in the Supreme Court case. Greece’s Times Navigation Company, manager of the crude oil tanker Ice Energy asked the Supreme Court for the right to intervene in the case saying it is caught between the United States and the Greek courts placing its business in jeopardy.

The dispute began in April when a Russian-flagged tanker the Pegas experienced mechanical problems and sought refuge off the Greek island of Evia. Greek authorities initially said the tanker was being detained due to the EU sanctions on Russian shipping and oil interests, but later said the tanker would be released due to uncertainty on its ownership. In the meantime, the tanker was also being detained due to issues during a Port State inspection.

The United States went to court seeking to seize the crude shipment aboard the vessel that it had previously sanctioned for its involvement with the Iranian oil trade. An NGO watchdog organization highlighted that the oil aboard the tanker was not Russian but had been loaded months earlier in Iran.

After winning the court order, the U.S. chartered two tankers from Times Navigation to load the oil from the tanker and transfer it to Newport, Texas. The Ice Energy began the transfer of 60,000 tons of oil from the tanker which Iran was by then identifying as the Lana reporting it was registered in Iran, not Russia. The Ice Energy completed the transfer on June 2 and moved away so that a second tanker could be positioned alongside to complete the transfer of the Iranian oil. It appears the second transfer never began.

Before the transshipment was completed, a Greek appeals court overturned the lower court ruling for the United States and ordered the tanker released and the oil returned to Iran. The United States has however continued to seek to block the return of the oil.

Times Navigation told the Greek Supreme Court that the United States is seeking to enforce its contract for the delivery of the oil. The Greek shipping company reported that the US Department of Justice has warned that failure to comply with the contractual obligations would result in a 20-year prison sentence and numerous sanctions against the company and its management.

While both sides wait for the Greek Supreme Court to decide the fate of the oil, Iran also continues to hold two Greek tankers that it seized in retaliation for the confiscation of its oil shipment. The Greek tankers Delta Poseidon and Prudent Warrior are being held with their cargos and a total of 49 crewmembers at the anchorage of the Iranian port of Bandar Abbas. It was widely anticipated Iran would release the tankers after possession of the oil shipment was returned.

For now, the Lana and the Ice Energy are both in the Piraeus anchorage awaiting the decision of the Greek Supreme Court.
Source: https://maritime-executive.com/article/greek-supreme-court-to-decide-fate-of-seized-iranian-oil

In June 2022, Russian Maritime Register of Shipping (RS) conducted annual verification of JSC Volga Shipping Company’s compliance with the requirements of the International Safety Management Code. The shipping company’s Safety Management System was found compliant with the requirements and self-imposed commitments on safe operation of ships, says Volga Shipping Company.

The scheduled audit of the onshore facilities of Volga Shipping Company conducted by RS experts included active work with the company’s management on safe shipping, personnel relations, fleet operation and maintenance.

Special attention was paid to practices deployed by the company in order to ensure safe operation of its liquid bulk and dry bulk cargo fleet involved on domestic and international routes. In particular, the audit included an in-depth study of issues related to corrective and preventive actions, analysis of the relevance of instructions and procedures for safe operation of various vessels including reports on internal and external verification. The interaction between onshore divisions and ships was assessed as well as emergency preparedness of the company and operation of its emergency response center. The company’s corporate programmes for additional training of crewmembers and the practice of regular crew safety seminars were highly appraised.

Basing on the audit findings, Joint Stock Company “Volga Shipping Company” obtained a Document of Compliance confirming the compliance of the company’s safety shipping policy with international standards as well as the efficiency of the company’s actions and methods of management applied on ships and onshore in pursuance of the policy aimed at safe management of ships and prevention of environmental pollution.

Established in 1843, Volga Shipping Company is one of Russia’s largest shipping enterprises. The fleet under operational management of the company numbers about 250 units with a total deadweight exceeding 1.4 million tonnes.  The company transports over 15 million tonnes of cargo per year. The range of services offered by Volga Shipping Company includes: transportation of dry bulk, general, liquid bulk and project cargo along inland water ways of Russia by river-sea and international routes.

Source: https://en.portnews.ru/news/332519/