Shippers are likely to feel emboldened to doggedly pursue ocean carriers in the courts as the liner party fizzles out and out of pocket clients seek retribution.

In a sign of this new found persistence, Pennsylvania-based home decor MCS Industries shows no sign of letting up in its battle with the world’s largest containerline.

Erin Wirth, chief administrative law judge at the US Federal Maritime Commission (FMC), has issued an order denying shipping line Mediterranean Shipping Co’s (MSC) motion for an extension of time to produce outstanding discovery documents in the complaint filed by MCS Industries. On July 29, an order was issued requiring MSC to produce documents within a month, by August 29.

MSC did not provide the required documents to meet that deadline.

Instead, on August 26, MSC filed a motion seeking an extension of time. On September 2, MCS Industries filed an opposition to that motion.

Then, on September 6, MSC filed a notice of advice of the Swiss Federal Office of Justice. According to the order denying MSC’s motion, MSC “continues to argue despite rulings to the contrary in this proceeding and in the Republic and Canton of Geneva Court of First Instance, that due to Swiss legal requirements it cannot produce the discovery ordered in the December 8, 2021, motion to compel and the July 29, 2022, order requiring production of discovery, and that the Swiss court’s decision that their intervention is not necessary was in error.”

Judge Wirth writes in the order that “it is clear that this ‘advice’ from the Federal Office of Justice in Switzerland merely identifies the process for resubmitting a request and the factors that may be taken into account, without any discussion of the merits of this proceeding.

“The question of whether Swiss assistance with discovery is required has been answered by the undersigned Administrative Law Judge and by the Court of First Instance in Geneva.”

In multiple filings, MSC indicated that it will not produce the discovery that it has been repeatedly ordered to produce. MCS Industries has asserted in response that MSC “cannot accept the benefits of shipping cargo to and from U.S. ports while shirking its legal and regulatory obligations before the Commission.” MCS Industries thus requested a decision on default, and the judge has ordered MSC to show cause why default judgment should not be entered against it.

MSC is now ordered, by September 22, to either provide the required discovery or show cause why default judgment should not be entered against it.

Other shippers have been lodging complaints against global carriers of late with experts suggesting more will follow suit.

“The softened market – and space situation – may well cause a flurry of suits and FMC complaints to be filed, and clearly, some who have already filed, like MCS Industries, are emboldened to hold on,” commented Bjorn Vang Jensen, a vice president at liner consultancy Sea-Intelligence, in a post today on LinkedIn.

“The collective, pent-up anger and PTSD in the BCO community at large now wants out, and rate reductions won’t cut it for some,” said Jensen, a man whose career has seen him work for the likes of Maersk and Electrolux in the past.

Source: https://splash247.com/msc-denied-extension-of-deadline-to-provide-documents-in-case-brought-by-mcs-industries/

Amogy’s goal is to convert ammonia into a sustainable power source to decarbonize transportation. The company has for instance successfully engineered the first-ever ammonia-powered emissions-free drone flight at 5 kW scale and demonstrated a 100kW powerpack in a tractor.

As industries search for ways to lower their carbon footprint, ammonia has emerged as an attractive fuel source with strong potential since it enables emissions-free, high-performance mobility. The use of ammonia reformed to hydrogen is especially beneficial in industries with long operating hours, for example the marine industry, due to the high energy density.

The fuel cell system that PowerCell will deliver will be integrated in Amogy’s solution, where ammonia is reformed into hydrogen. In this way, it is possible to provide continuous power to a workboat over extended periods. The workboat will be used to demonstrate how to build a complete power system targeted to the marine industry.

PowerCell will deliver the fuel cell systems and related services during the coming fifteen months.

Richard Berkling, CEO of PowerCell Sweden, said:

“This order is a further proof of our leading fuel cell technology that we have industrialized for demanding applications. A key strength is our ability to offer fuel agnostic systems using clean hydrogen from compressed or liquid storage as well as from reformed methanol and ammonia. We believe that refining ammonia into hydrogen to be used in fuel cell systems will be an important emissions-free fuel source for the future.”

Source: https://seawanderer.org/powercell-receives-a-fuel-cell-systems-order-from-amogy

WASHINGTON/LOS ANGELES, Sept 13 (Reuters) – President Joe Biden’s administration on Tuesday made contingency plans aiming to ensure deliveries of critical goods in the event of a shutdown of the U.S. rail system while pressing railroads and unions to reach a deal to avoid a work stoppage affecting freight and passenger service.

The potential shutdown, which could come as early as Friday, could freeze almost 30% of U.S. cargo shipments, stoke inflation, impede supplies of food and fuel, cost the U.S. economy about $2 billion per day and cause transportation woes.

Railroads including Union Pacific, Berkshire Hathaway’s BNSF, CSX and Norfolk Southern have until a minute after midnight on Friday to reach tentative deals with three hold-out unions representing about 60,000 workers.

If agreements are not reached, there could be union strikes or employer lockouts. But the railroads and unions also could agree to stay at the bargaining table or the Democratic-led U.S. Congress could intervene by extending talks or establishing settlement terms.

The Biden administration’s push comes as food, energy, automotive and retail groups implore Congress to intervene, saying a rail shutdown could threaten everything from global grain supplies to shipments of goods related to Christmas holiday shopping.

White House Press Secretary Karine Jean-Pierre said the administration is asking truckers and air shippers to assist should rail service cease and also is considering invoking emergency authorities. Jean-Pierre added that the administration is hosting daily interagency meetings to assess which supply chains and commodities are at highest risk.

The White House has told railroads and unions that “a shutdown is unacceptable and will hurt American workers, families and businesses, and they must take action to avert it,” a White House official told Reuters, speaking on condition of anonymity.

One key issue is ensuring “continued distribution of vital hazardous materials that depend on rail transport, such as chlorine for water treatment plants,” this official added. Railroads on Monday stopped accepting shipments for hazardous materials such as chlorine and chemicals used in fertilizer so they are not stranded in unsafe locations if rail traffic stops.

The U.S. energy sector relies on railroads to move coal, crude oil, ethanol and other products.

Some railroads plan to impose additional restrictions that could impact food suppliers and online retailers that use intermodal services that connect ships, trains and trucks. BNSF, which serves the western United States, said it will stop accepting refrigerated intermodal cargo. Norfolk Southern, which serves the eastern United States, said it will stop accepting all intermodal shipments.

U.S. passenger railroad Amtrak, which uses tracks maintained by freight railways, is facing growing disruptions. Amtrak said it will cancel trains on seven more long-distance routes on Wednesday after it began canceling trains on four long-distance routes on Tuesday.

HIGH STAKES

The stakes are high for Biden, who has vowed to rein in soaring consumer costs ahead of November elections that will determine whether his fellow Democrats maintain control of Congress.

Biden appointed an emergency board in July to create a framework for settlement terms.

That has not happened since the early 1990s, when Congress sent the parties into final and binding arbitration.

Unions in the current talks have been offered significant pay increases. Three of 12 unions, representing about half of the 115,000 workers affected by the negotiations, have yet to sign deals. They are grappling withrailroads over working conditions that they have said worsened after the industry slashed its workforce by almost 30% during the past six years.

Rail customers have said a shutdown will send them scrambling for alternative transportation and storage for everything from ammonia and fuel to cars and chicken feed.

It takes about four trucks to handle cargo in a single rail car. The United States does not have the estimated 467,000 trucks or the necessary labor to support such a shift. Beyond that, some cargo is too heavy or large to travel over the road.

A rail work stoppage could strike as U.S. farmers harvest corn, wheat and soybeans for export around the world, according to the National Grain and Feed Association.

“The economic damages across the food and agricultural supply chain would be swift and severe,” the group said.

Justin Louchheim, senior director of government affairs at the Fertilizer Institute, which represents companies that rely on ammonia supplies, added: “When you contemplate global food security, I’d say it’s a crisis right now.”

Automakers worry that a disruption could empty dealer showrooms by stranding cars in the wrong places. Toyota said it would have to store vehicles and “many locations would run out of storage within two to four days of production.”

Source: https://gcaptain.com/u-s-government-makes-contingency-plans-for-rail-shutdown/

Container ship HEINRICH EHLER collided with dredger SCHELDEOORD in Brunsbuettel near Northern Lock on Sep 12. Dredger reportedly, was seriously damaged. Feeder resumed transit later same day, completed transit and as of Sep 13 was sailing in Baltic sea, soon to arrive at port of destination Gdansk.
Container ship HEINRICH EHLER, IMO 9372200, dwt 17819, capacity 1425 TEU, built 2008, flag Portugal, manager EHLER REEDEREI.
Dredger SCHELDEOORD, MMSI 244780958, GT 657, built 2013, flag Netherlands.

Source: https://www.fleetmon.com/maritime-news/2022/39509/feeder-collided-dredger-brunsbuettel-kiel-canal/

Following a contraction in output of newbuild 20ft shipping containers in 2021, ordering has recovered strongly this year, and contrary to popular opinion Drewry expects its share of the global container equipment fleet to remain above 25% for the foreseeable future.

Although the standard 20ft dry freight container has seen its share of the global equipment pool decline over the past decade, Drewry believes its role in the fleet is secure. Indeed, this year has seen production of the unit increase significantly with orders, particularly from ocean carriers robust. This will come as some relief to many beneficial cargo owners (BCOs) concerned at the limited availability of 20ft boxes over the past two years, which has led some to wonder if the equipment type might be on the way out.

In the first eight months of the year manufacturers based in China, which account for over 96% of global output, produced close to half a million teu, which was up almost 64% YoY and 35% on the corresponding period in 2020. Drewry expects output for the full year to total at least 900,000 teu, up from just below 560,000 teu in 2021.

In terms of buyers, transport operators, including ocean carriers, and traders were responsible for an estimated 72% of deliveries made in the January-August period of 2022 with the units needed for both replacement and expansion purposes

Meanwhile, the demand for new 20ft containers for non-trading purposes, most notably in the static storage sector, remains robust as existing companies expand their operations and new players are attracted into the business.
While the sharp increase in the production of 20ft containers this year is partly related to some under-ordering last year as lessors and ocean carriers focused their purchasing activities on 40ft high cube containers where there was a global shortage, the demand factors for 20ft containers remain sound.
There are several industries where due to the nature of cargo moved – heavy and dense – 20ft containers are more appropriate to use and where companies have built their supply chains around this type of equipment. Ocean carriers, in particular, need to ensure that they have the inventory to satisfy these accounts, many of which are long-time customers of theirs.

Arguably, for lessors, the 20ft box is less marketable and, potentially, faces longer off-hire periods. Hence their purchasing of this size of box is expected to decline.

Meanwhile, and as already mentioned, the demand for 20ft containers in the non-maritime trading arena is strong and expanding and this will encourage traders to order more of these units.

Consequently, Drewry expects the 20ft container’s share of the fleet to remain stable over the next five years with the unit accounting for at least 26% of standard dry containers in service. And given the upside potential there is the prospect that this share will increase rather than decrease over the forecast period.

Container Census & Leasing and Equipment Forecaster
Drewry’s Container Equipment Forecaster provides quarterly market updates as well as our latest forecasts:
• Detailed assessment of the global container fleet, including fleet structure and 5-year forecasts
• Extensive profiling across all main equipment types including dry, refrigerated, regional and tank container fleets
• Comprehensive ownership analysis – current structure and forecasts
• Assessments and 5-year forecasts of newbuild and secondhand pricing, leasing rates and investment cash returns
• Estimates and forecasts of smart device installation rates
Source: Drewry