In the mid-2000s, when shipping stocks first became popular on Wall Street, the shares were commonly bought as a play on China’s economy. China is pivotal to ocean shipping, whether it’s container ships, oil tankers, bulkers or gas carriers.

“There’s a saying that everything that moves out of China in containers has to come into China as raw materials,” noted Oeyvind Lindeman, chief commercial officer of Navigator Gas (NYSE: NVGS), on his company’s latest conference call.

Ominously, signs of China’s weakening economy are showing up across all shipping sectors at once.

The glass-half-empty view is that pullbacks in shipping demand are bellwethers of more severe economic problems to come. The glass-half-full view is that declines are temporary. A rebound of Chinese demand for iron ore, oil and gas will eventually boost commodity shipping rates.

Container shipping

Sales of containerized goods to the U.S. and Europe supported the Chinese economy throughout the pandemic era. Markets were rattled Wednesday when China’s official monthly export stats came in much lighter than expected.

China’s exports rose 7.1% year on year (y/y) in August, well below the consensus forecast for 12.8% growth. Exports had grown 18% y/y in July. China’s exports to the U.S. declined 3.8% y/y in August, compared to an 11% increase in July.

Outbound volumes are being squeezed from both sides. Demand for Chinese goods is falling at the same time COVID-19 lockdowns and weather issues are constraining Chinese manufacturing and logistics.

A chart showing U.S. bookings for goods in China by date of departure
Index: January 2019 = 100 (Chart: FreightWaves SONAR)

The government has extended lockdowns in Chengdu and announced new nationwide precautions through the end of October. Analysts do not foresee any relaxation of China’s zero-COVID policy this year.

Meanwhile, China recorded its highest temperatures and lowest rainfall in over six decades last month. Resultant power outages forced factory closures in Sichuan.

Dry bulk imports

China is the world’s largest producer of steel. Its steel production in January-July was down 6.1% y/y. Production in July fell 10% versus June.

“The decline in Chinese steel production has predominantly come from the ailing property sector and the stop-start industrial activity due to COVID-19 lockdowns,” wrote Mark Nugent, dry bulk analyst at shipbroker Braemar, in a research note on Thursday.

Brokerage EastGate Shipping said that the heatwave and power shortages forced 20 steel mills to go offline for around a week in mid-August.

Steel production drives Chinese demand for iron ore imports, largely from Australia and Brazil. These are the most important cargoes for Capesizes, larger bulkers with capacity of around 180,000 deadweight tons. Average Capesize spot rates collapsed from $38,200 in late May to just $5,600 per day on Friday, according to data from Clarksons Securities.

Brokerage BRS blamed the plunge on diversions of Australian iron ore from China to Southeast Asia, and more damaging to rates, a sharp decline in Chinese imports of long-haul Brazilian iron ore in August.

“Scorching temperatures and a relentless zero-COVID policy seriously crippled steel demand in China,” said BRS. It does not expect a full recovery of Chinese steel production until next spring, “casting doubts on a radical rebound in seaborne iron ore demand.”

Oil imports

China is by far the world’s largest importer of oil. Chinese imports are the most important driver for spot rates of larger 2-million-barrel-capacity tankers known as very large crude carriers.

According to Poten & Partners, Chinese crude imports grew rapidly from 4.1 million barrels per day (b/d) in 2009 to 10.1 million b/d in 2019. Growth slowed in 2020 when the pandemic hit and declined by 550,000 b/d in 2021.

Chinese imports sank to 8.7 million b/d in June, the lowest monthly average since July 2018. Imports were 8.8 million b/d in July and 9.5 million b/d in August. In the first eight months of this year, Chinese crude imports fell 5.2% versus the same period in 2021.

The International Energy Agency said in its latest outlook that China’s lockdowns “set back our projected demand recovery by two months.”

BRS noted that China has 920,000 b/d in new refinery capacity scheduled to come online by the end of the year. Normally, that would increase crude import demand. However, China’s refining capacity is already higher than domestic consumption and the government has not been pushing exports.

“Considering our relatively pessimistic short-term outlook for China, [with] COVID and lockdowns to remain a going concern until at least the beginning of next year, we expect little upside in Chinese runs as Beijing appears unwilling to permit its refiners to focus on export markets,” said BRS.

LPG shipping

China also is one of the world’s largest importers of liquefied petroleum gas (LNG): propane and butane.

Beyond its use for energy, China imports propane as feedstock for propane dehydrogenation (PDH) plants for the creation of propylene. The propylene is used to produce polypropylene, which is in turn used to manufacture plastic.

Tim Hansen, chief commercial officer of Dorian LPG (NYSE: LPG), referred to Chinese demand headwinds during his company’s latest call. Hansen cited “renewed impact of COVID-19 lockdowns” and worries about Chinese demand that “were a factor for market players, which resulted in more risk-averse [behavior] and reduced opportunistic trades.”

According to Lindeman of Navigator Gas, “All eyes are on China and when they are getting out of their malaise.”

LNG shipping

In the liquefied natural gas (LNG) sector, Europe is now buying a much higher share of U.S. exports than usual due to fallout from the Ukraine-Russia war.

Oystein Kalleklev, CEO of Flex LNG (NYSE: FLNG), said on his company’s latest call: “In a sense, you could say that Europe has been very lucky, because the cooldown in the Chinese economy driven by COVID lockdowns has resulted in lower demand from China.

“Chinese imports this year are down by more than 20% [or] 9 million tons. And European buyers have been able to get access to these cargoes, which would have been a lot more difficult if the Chinese economy was running at normal capacity.”

Kalleklev believes China will come back to the LNG import market, in a big way, pointing to commitments for new volumes that have yet to come onstream.

“Even though China has a reduction in LNG imports this year, they are signing for almost half of these new volumes, because the LNG story in China is in its early phases,” Kalleklev said. “This year, actually, Japan will probably import more LNG than China. And there are more than 10 times as many people in China. So, China will continue to grow once they get control of COVID and reflate their economy.”

Source: https://www.freightwaves.com/news/shippings-china-syndrome-demand-sinks-across-multiple-cargo-markets

 

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022

 


Shipping is about to experience its latest round of emission reduction this coming January and already some trouble could arise as things could get tricky between ship owners and charterers. In its latest weekly report, shipbroker Gibson said that “the IMO’s carbon intensity indicator (CII) and Energy Efficiency Existing Ship Design Index (EEXI) will come into effect on 1st of January 2023. These measures form a key part of the IMO’s strategy to lower CO2 emissions from the industry. However, as is sometimes the case with regulation, unintended consequences can arise, which could in the short-term increase inefficiency of the fleet until industry practices adopt, or older vessels are removed from trading. Indeed, regulation also sometimes fails to account for commercial practices which are not always compatible with technical directives from the IMO”.

 

Source: Gibson Shipbrokers

According to Gibson, “from a commercial standpoint, EEXI is more straightforward to implement because compliance sits firmly with the owner. It is the owner’s obligation to ensure the vessel complies with the reference line and make technical/design amendments to the vessel if compliance is not met. CII is commercially more complex as it concerns how the vessel is traded. Under a spot voyage, it is the owner’s obligation to manage the vessel’s performance to attain the CII rating the owner desires. However, under a time charter, the situation could be much more complex. Given that CII ratings are retrospective, a vessel on time charter could be traded inefficiently and returned to the owner with an inferior rating, putting the owner at a commercial disadvantage following the charter. From a charterer’s perspective, whilst CII is an operational measure and can be managed through trading patterns, the CII performance of a ship is linked to other factors, such as design, maintenance and warranted fuel consumption. If any of these factors is not as described in the charter party, then a dispute is likely to arise”, the shipbroker noted.

Gibson added that “the biggest issue with CII, however, is that vessels will have to adjust their trading patterns to attain the required rating and the IMO will argue that this is exactly the point. However, a non eco ship, which would typically trade shorter voyages, will now be more likely to engage in longer haul voyages to attain the required CII, which is largely a function of CO2 emitted, cargo capacity and importantly, distance sailed. Likewise, eco ships with much better CO2 emissions could be deployed on shorter voyages where, despite smaller distances, could still attain an acceptable CII rating due to their fuel efficiency. Overall, the net effect in these circumstances could be higher total CO2 emissions for the tanker sector and exactly the opposite of what the IMO is trying to achieve, at least in the short term”.

“On a longer-term basis of course, older less efficient vessels will see reduced trading opportunities and may eventually face pressure to scrap, with the replacement leading to improved operational and design efficiency across the fleet. It is also hoped that CII will force owners and charterers to squeeze as much operational efficiency out of their fleets as possible. However, for this to be realised, operational and commercial practices may need to change, notably around sailing speeds, demurrage and scheduling”, the shipbroker said.

“Ultimately, few question the industry’s need to reduce emissions; however, future regulations must avoid unintended consequences and be sensitive to industry practices, which will take time to evolve. Only steps which lead to a net reduction in emissions should be taken forward and regulation should avoid encouraging non eco vessels to engage in long voyages over eco tonnage. CII will distort trading patterns and could lead some vessels to emit more CO2 than they would have prior to the regulations in order to chase a rating. Only time will tell whether CII has the desired effect or creates unintended consequences”, Gibson concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022

 


The global iron ore seaborne trade has trended lower so far this year, mainly as a result of China’s diminishing iron ore imports. In its latest weekly report, shipbroker Banchero Costa said that “global iron ore loadings in the full 12 months of 2021 were up +0.7% y-o-y to 1,555.3 mln t, according to vessels tracking data from Refinitiv. So far in 2022, iron ore trade softened again, primarily due to weaker demand from China and supply issues in Brazil. In January-August 2022, global iron ore loadings declined by -2.6% y-o-y to 993.8 mln tonnes, from 1020.6 mln t in the same period of 2021. Exports from Australia increased by +0.7% y-o-y in Jan-Aug 2022 to 584.3 mln tonnes, just a little below 2020 levels, which was the most recent record high, and above the levels of 2018 and 2019. Exports from Brazil, on the other hand, declined by -4.5% y-o-y so far this year to 218.0 mln tonnes, from 228.2 mln tonnes in the same period of last year, although they were still higher than in 2020”.

 

According to the shipbroker, “demand is weighted down by a weakening economy in China, with iron ore imports into the country down by -1.9% y-o-y to 706.3 mln tonnes in the first 8 months of 2022. On the other hand, the European Union is seeing a revival, with imports up +3.6% y-o-y to 56.5 mln tonnes in the same period. Imports into Europe, however, are still well below the levels of 2019 (62.8 mln t in the Jan-Aug period of that year) and 2018 (65.7 mln t)”.

Source: banchero costa &c s.p.a

“Canada is the fourth largest exporter of iron ore in the world, after Australia, Brazil, and South Africa. In Jan-Aug 2022, Canada accounted for 3.3% of global seaborne iron ore shipments. Seaborne iron ore exports from Canada peaked in 2020, and have been declining since. Canada’s iron ore exports in the 12 months of 2020 increased by +10.3% y-o-y to 56.6 mln t, from 51.4 mln t in 2019. That was itself up +8.4% from 47.4 mln t in 2018. In 2021, however, Canada exported just 53.1 mln t of iron ore, which represented a -6.2% y-o-y decline. So far this year we have seen a continuation of this negative trend. In the first 8 months of 2022, Canada exported 32.8 mln tonnes of iron ore, which was a -3.5% y-o-y decline from the 33.9 mln tonnes shipped in the same period of last year. The vast majority of Canadian iron ore exports are loaded in the St. Lawrence river, in the east of the country”.

Source: banchero costa &c s.p.a

Banchero Costa added that “the largest loading port by volumes is Sept-Iles (Seven Islands), with 18.3 mln tonnes of iron ore loaded in the first 8 months of 2022. Another 12.8 mln tonnes of iron ore were loaded this year from nearby Port Cartier. Additionally, 1.7 mln tonnes were loaded this year from Milne Inlet on Baffin Island, far north in the Arctic. Given the location of the load ports, the natural market for Canadian iron ore is the Atlantic Basin. Nevertheless, given the limited size and lack of growth potential of the European market, Canada has quite successfully diversified also into the Asian markets. The European Union is still by far the top destination, accounting for 39.8% of Canada’s total iron ore exports so far in 2022. The EU, which was already the top buyer of Canadian seaborne iron ore, further increased volumes by +4.5% y-o-y in Jan-Aug 2022 to 13.0 mln t in Jan-Aug 2021, from 12.5 mln t in the same period of 2021. However, this was still well below the 13.8 mln tonnes Canada exported to the EU in Jan-Aug 2019. The second top destination for Canada’s iron ore exports is Mainland China, accounting for a 20.8% share. Shipments from Canada to China declined by -18.8% y-o-y to 6.8 mln tonnes in the first 8 months of 2022, from 8.4 mln tonnes in Jan-Aug 2021. They were also well below the record 12.4 mln tonnes shipped in Jan-Aug 2020. In third place was Japan, with 3.6 mln tonnes in Jan-Aug 2022, down -20.6% y-o-y. Japan accounts for 11.1% of Canada’s total exports”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022

 


The first ship to bring a cargo of liquefied natural gas (LNG) to a new terminal at the Dutch port of Eemshaven has docked and has started the unloading process, the gas grid operator said on Thursday, part of Europe’s bid to cut reliance on Russian gas.

The LNG tanker Murex berthed alongside the regasification unit at the new EemsEnergyTerminal, which can handle 8 billion cubic meters (bcm) of gas a year, a Gasunie spokesperson said.

“Everything is going perfectly,” Marie-Lou Gregoire of Gasunie said.

The terminal, near Groningen, has two Floating Storage Regasification Units (FSRUs) that Gasunie leased at the request of the Dutch government.

Capacity has been booked by Shell, France’s Engie SA and CEZ of the Czech Republic.

Czech Prime Minister Petr Fiala and Dutch Energy Minister Rob Jetten will declare the facility formally open at a ceremony on Thursday evening.

Gas from the terminal is expected to start entering the Dutch grid for the first time next week, although the station will not operate at full capacity until November or December.

The capacity in Eemshaven will complement the larger Gate Terminal in Rotterdam, now operating at 16 bcm capacity and which is planning a further 4 bcm expansion by 2025.

Source: https://www.maritimeprofessional.com/news/first-shipment-arrives-dutch-floating-379265

 

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022

 


Clarifying, clearing (up), construing, demonstrating, elucidating, explaining, explicating, expounding, getting across, illuminating, illustrating, interpreting, simplifying, spelling out, unriddling, deciphering, decoding, analyzing, breaking down, disentangling, undoing, unraveling, unscrambling, untangling, resolving, solving, defining, specifying, annotating, commentating, glossing

These are all words either meaning or related to the term “demystifying”..

Demystifying actually means “to make plain or understandable” and this was the prime objective and reason why Shipping and Freight Resource was started in 2008 – to make shipping and freight “plain, understandable and simple” to Joe Public..

Through various knowledge and education-related articles and news and insights articles, this site aims to demystify shipping and freight jargon..

It is recommended you read this article first to know the difference between Maritime, Shipping, Freight, Logistics and Supply Chain itself..

This installment of “Demystifying Shipping and Freight Jargon” is about The Flag of the Ship..

Like people, a ship also has a nationality assigned to it.. This is represented by a flag that the ship flies at all times.. A ship is assigned a flag through registration with a Ship Register or Ship Registry and the ship is expected to follow the rules and regulations enforced by this register at all times..

The nationality or port of registration is shown on the stern of a ship.. In the above example, the marking on the stern tells the world that the ship called CAPE ORCHID has been registered in Port Elizabeth in South Africa (you can see the South African flag)..

Any ship over 100 GT (Gross Ton) irrespective of whether it is a cargo vessel, fishing vessel, passenger vessel etc, has to be registered.. This registration grants the ship physical and legal protection of that flag/flag state which may be applied to vital areas such as safety of cargo and life of those on board the ship..

Ships need not necessarily be registered under a country’s own flag.. For example a ship owned by British nationals need not be registered mandatorily under the British Flag or UK Ships register.. It may be registered with registries other than the British Registry..

Types of ship registers

what is a ship register - shipping and freight resourceSome ships fly the flag of their own country, meaning it is owned, operated, and manned by nationals of that country..

This form of registration is called “Traditional Register” wherein the owner of the ship should necessarily be from the country of registration and the place of business should be in the country of registration..

Some ships fly the flags of other countries, like a ship owned by a Japanese firm flying a Maltese flag.. This form of registration is called an “Open Register“..

Many ship owners also opt for what is known as a “Flag of Convenience” (FOC).. An FOC is a type of open registry that offers (among other things) an attractive fiscal regime, substantially lower administrative fees, flexible to loose maritime safety policies, and lower costs for the ship owners..

FOC is a pejorative term used for an open registry and a FOC usually has no genuine link between the state and the ships that are flagged under that state..

For example, the ship is not owned by anyone from that country of registration, the ship is not operated by anyone from that country and the country of registration has no crew members or any other kind of administrative, technical, or social connection with that ship..

Because of this, organizations like the ITF (International Transport Workers Federation) find it difficult for unions, industry stakeholders and the public to hold ship owners to account as they may not follow the various regulations set..

The list of countries that have been declared as FOCs by the ITF’s fair practices committee can be viewed here..

Why is a flag important in shipping..??

A flag provides an identity to a ship which means the ship’s national state has exclusive dominion over the ship and no other nation can exercise dominion over that ship although a ship of any nation can navigate the oceans freely under the “guiding principle of the sea” which is freedom..

Of course, there are caveats here in the form of sanctions against certain countries which are enforced in shipping based on the flag/nationality of the ship..

As an example, the International Association of Classification Societies has withdrawn the Russian ship register’s membership after Russia’s attack on Ukraine..

This means ships flying the Russian flag are under sanction and any country doing trade with Russian flagged ships do so under risk of such sanctions.. There are political caveats to this as well which you can read about here..

The registration of a ship plays an important role in ensuring safety and security of the ship and significantly contributes to the protection and preservation of the marine environment..

As per IMO regulations, all ships must be surveyed in order to ensure that the ships under their register/flag are structurally sound and subscribes to design and safety standards and issue certificates that establish a ship’s seaworthiness..

The registration and linking to a national registry in a traditional register means that these ships may be requisitioned at time of war for the transportation of goods and people in the service of the nation..

The ship’s flag is also of importance in identifying specific registries or flag states that do not take action or turn a blind eye against shipowners who violate the rights of seafarers and in 2022 we are seeing a shameful record of seafarer abandonment..

Top ship flags by ships, DWT and value

Below are the current top-ranked ship flags by DWT (Dead Weight Tonnage), number of ships and value of ships..

As you can see, many ships are flying Flags of Convenience than their own national or traditional flags.. This is because a Flag of Convenience offers shipowners many benefits mentioned above, compared to traditional registers..

Top 10 ship flags by DWT
Source : UNCTAD

 

 

Top 10 ship flags by number of ships
Source : UNCTAD

 

 

Top 10 ship flags by value of ship
Source : UNCTAD

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022

 


Iran’s elite Revolutionary Guards have seized a foreign vessel in the Gulf for allegedly smuggling 757,000 liters of diesel out of the country, the Iranian state news agency IRNA reported on Saturday.

The unnamed vessel’s seven crew members, who are foreign nationals, have been handed over to legal authorities, IRNA reported without elaborating on the nationalities of the ship or its crew.

Iran, which has some of the world’s cheapest fuel prices due to heavy subsidies and the plunge in value of its national currency, has been fighting rampant fuel smuggling by land to neighboring countries and by sea to Gulf Arab states.

The Guards have detained several ships in the past few months for smuggling fuel in the Gulf.

Source: https://www.marinelink.com/news/iran-guards-seize-foreign-ship-smuggling-499360

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022

 


The Kremlin said on Friday that it expected President Vladimir Putin and his Turkish counterpart Tayyip Erdogan to discuss the implementation of a deal on Ukrainian grain exports, which both have criticized, when they meet in Uzbekistan next week.

Putin said on Wednesday that Russia and the developing world had been “cheated”, and that he would seek amendments to the terms of the deal, which expires in November, before it is extended.

“A conversation between Putin and Erdogan is possible and necessary. We expect it will take place in Samarkand,” Peskov said, referring to next week’s Shanghai Cooperation Organization summit in Uzbekistan.

The July deal to unlock Ukrainian grain exports from its Black Sea ports was brokered by Turkey and the United Nations. It remains the only significant diplomatic breakthrough in the six-month-old conflict.

Peskov on Friday repeated Putin’s assertions that the grain deal was unfair on the poorest countries because most shipments were being sent to Europe and other rich countries.

“The agreements are being implemented, but the way they are being implemented does not give any specific benefits to poor countries,” Peskov said.

A U.N. spokesperson for the Black Sea Grain Initiative said on Wednesday that 30% of the grain and other foodstuffs that had left Ukraine had gone to low and lower-middle income countries.

But the United Nations has also said the export deal is a commercial – not humanitarian – operation, driven by the market.

Many of the 100 or so ships that have left Ukraine had been stranded for months by of the blockade, unable to move their contracted cargoes. Most were laden with corn and booked by developed countries to be used for animal feed or biofuels.

Peskov also said further steps needed to be taken to help Russia export its own agricultural products.

The West has not imposed sanctions on Russian foodstuffs or fertilizers, but Moscow says logistical sanctions and restrictions on Russian ships entering Western ports or securing insurance restrict Russia’s access to world markets.

Moscow says easing these restrictions was a key part of the Black Sea deal.

“This issue has not been resolved. It will be the topic for a specific conversation,” Peskov said.

Source: https://www.marinelink.com/news/putin-discuss-black-sea-grain-deal-499344

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022

 


Ukraine’s decision to allow its seafarers to leave the country despite wartime restrictions will free up vital manpower for both Ukrainian grain exports and the wider global shipping industry, industry figures told Reuters.

The move, officially confirmed this week, is part of efforts by Ukraine to maximize its grain shipments via a UN-brokered corridor through the Black Sea, which lifted a Russian blockade of Ukraine’s south coast when came into effect in early August.

“We understand that the grain corridor depends on them (seafarers) and the world of international logistics also depends on them,” Viktor Vyshnov, deputy head of Ukraine’s Shipping Administration, told Reuters.

Industry figures said in late July, shortly after the grain export deal was agreed, that finding enough seafarers to crew the estimated 80 vessels stuck in Ukrainian ports since the start of Russia’s invasion in February would be a challenge.

While able-bodied Ukrainian men aged 18-60 are barred from leaving the country as fighting continues against Russia’s invasion, Ukraine’s government has waived the ban for qualified seafarers and those studying for a mariner qualification.

The move, first announced in late August by Prime Minister Denys Shmyhal, was decreed into law by his cabinet last Friday, according to a copy of the order published on Monday evening.

“According to the decree, all seafarers, whether they are leaving from Ukrainian ports or are going abroad to fulfil their contracts, can obtain the possibility to leave Ukraine,” Vyshnov said.

Shmyhal said in August that the decision would boost Ukraine’s wartime coffers, as it would “allow thousands of sailors to get jobs and (state) budget receipts to grow.”

Global impact
Ukrainian seafarers make up 4% of the total global mariner workforce of 1.89 million sailors, according to analysis from trade associations the International Chamber of Shipping and BIMCO.

“They are vital cog in the global supply chain when it comes to providing well qualified seafarers,” Stephen Cotton, General Secretary of the International Transport Workers’ Federation (ITF) union, said.

Having Ukrainian seafarers back in the global shipping market will be important in filling demand for qualified sailors over the next four years, Natalie Shaw, director of employment affairs at the International Chamber of Shipping, told Reuters.

“The (ICS/BIMCO) report predicts that there will be a need for an additional 89,510 officers by 2026 to operate the world merchant fleet, and Ukraine supplies over 76,000 of the current workforce,” she said.

“In the (2021) report … Ukraine was listed as the top country companies are likely to recruit from,” she added.

Russian sailors
The staffing situation on ships arriving in Ukraine has been complicated by the lack of clarity on the status of Russian merchant sailors.

The grain corridor deal did not clarify the status of Russian mariners aboard ships that come into Ukrainian ports, a spokesperson for Ukraine’s infrastructure ministry told Reuters.

A spokesperson for Ukraine’s border agency told Reuters that while he did not know of any cases of Russian seafarers receiving visas to enter Ukrainian territory during the invasion, this did not theoretically stop them from sailing into Ukrainian ports if they remained aboard their ship.

“If these people are refused entry … then they must remain aboard the ship until it leaves the port,” border agency spokesperson Andriy Demchenko said.

Ukraine’s foreign ministry, which is responsible for issuing visas, did not respond to a request for comment.

“Common sense says Russian-owned ships and Russian-crewed ships should be very careful about visiting Ukraine,” the ITF’s Cotton said. “At the moment I would not recommend it.”

Source: https://www.marinelink.com/news/ukraine-sailor-permits-crucial-grain-499281

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022

 


When compared to other major river navigation routes around the world, the St. Lawrence River is a favoured waterway.  

It flows from the mouth of Lake Ontario, at an altitude of 250 metres. From its source to the Gulf, the river travels 1,197 kilometres, and is fed by several tributaries including the Ottawa, Richelieu, Saint-Francois and Saguenay rivers.  

But the effects of climate change are being felt. The marine industry is adapting. It is currently embarking on a shift towards smart technologies in view of this energy transition toward decarbonization.  

In this article we will see how the maritime and port industries are integrating climate change into their business models and introducing different adaptive measures.  

A professor emeritus of geography at the Universite de Montreal, I am an academic advisor at the Montreal Port Authority. I have been interested in maritime transportation issues for 30 years.  

Intelligent communication  

Commercial marine navigation on the St. Lawrence is affected by several conditions: variations in water levels related to seasonal cyclical changes, uneven precipitation, ice movement on the river surface, temperature variations and changes in tributary inflow and other anthropogenic factors.  

In this system, the transition zone between salt and fresh water starts east of Ile d’Orleans. Water with a higher salt concentration has a higher density than freshwater, and ships sink deeper.  

This means that the navigation routes must be maintained and equipped with fixed and floating aids (lighthouses, range lights, buoys, etc.) The Canadian Hydrographic Service monitors tides and water levels, produces charts and collects data to develop programs for safe and sustainable use of the waterway.  

Navigation support includes a telecommunications system between ships and the banks of the river. As the St. Lawrence is particularly difficult to navigate, the services of river pilots is necessary to ensure the safety and security of vessels from around the world. Open to winter ocean navigation, the Coast Guard maintains a fleet of icebreakers to keep ships moving.  

The impacts of climate change  

The scientific literature confirms that maritime transport, port systems and supply chains are influenced by the combined action of climate change and various forms of human intervention.  

Climate change is primarily evident in higher air temperatures that affect water levels, precipitation, ice conditions and storms. These can increase the vulnerability of the St. Lawrence river-sea transportation chain as well as the cost of Quebec’s participation in international trade.  

Here’s how the maritime and port industry is responding and adapting to these new circumstances.  

1) Extreme temperatures  

Extreme hot temperatures lead to a slowdown in labour productivity and a reduction in outdoor working hours. This results in longer docked ship hours, consequent delays in operations and more ships on standby.  

In addition, high temperatures have an impact on port facilities. Machinery is more likely to break down and there are higher energy costs for ventilation and air conditioning.  

Rising temperatures can also increase the vulnerability of marine environments to storms and wave levels. Storms have a direct impact on the scheduling of navigation routes on the St. Lawrence.  

Solutions: Some innovations are using intelligent navigation to reduce the vulnerability of commercial shipping to extreme variations in temperature (extreme cold and heat), fluctuating water levels (low water and flooding), and changes in wind strength and direction.  

Intelligent navigation is based on interconnectivity between information systems. Navigation assistance (digitization of the seabed, augmented and mixed reality for piloting and physical repairs at sea) makes it possible to limit the risk of incidents and accidents on the river or in the shipping channel.  

To ensure the safe mooring of ships at berth during high winds or extreme weather, port authorities are strengthening mooring bollards to prevent breakage. In addition, St. Lawrence ports have adopted delay forecasting plans for docking and unloading cargo to limit wait times at the port during severe weather conditions.  

2) Water fluctuation  

Considering that the St. Lawrence system allows access to large ships, water levels pose a greater problem than elsewhere.  

However, climate change is exacerbating access problems in all the river ports. Changes in water depth not only affect their capacity, but also their reliability, a key factor in shipping traffic development.  

Global warming heralds shorter, warmer winters, with more mild weather and rainy spells. Heavy rainfall can increase shifting sediment and may lead to dredging and maintenance of access channels.  

This could cause severe flooding of wharfs and port handling areas due to coastal overflows and surface rainwater drainage problems. Extensive flooding could also damage surveillance equipment and compromise port security.  

Solutions: During episodes of low water levels, port authorities enhance the safety of all vessels operating on the river system by installing both digital and physical signage indicating the location of current phenomena and shoals.  

During intense and extreme rainfall, ports undertake the upgrading of quays and infrastructure. Sediments removed during maintenance dredging can be used to stabilize infrastructure subject to increased erosion or to provide environmental services.  

3) Variable ice formation  

Freezing is a phenomenon that partly protects the coastline in winter. As the ice dwindles, there will be a potential increase in coastal exposure to strong waves and at the same time, increased shoreline erosion.  

Climate change will lead to greater variability in average ice thicknesses and, above all, to a breakdown of ice cover on the St. Lawrence River. In several St. Lawrence ports, this fragmenting could accelerate as ships manoeuver in and out of harbour.  

These multiple ice breakages raise serious maritime safety issues, increasing the risk of collision with ships that are forced to slow down.  

Solutions: To combat erratic ice formation, the creation of a monitoring service for ice conditions in the river’s waters is a priority measure that is being systematized or strengthened. It provides ships with an accurate navigation tool. The acquisition of tugs equipped with icebreakers operating 24/7 will prevent the accumulation of ice near ports and waterways, thereby increasing the safety of commercial vessels.  

Energy transition  

Reducing the carbon footprint of the maritime port economy is at the heart of the fight against climate change. Maritime carriers and ports deal with different strategies for managing the energy transition.  

Canadian marine carriers such as Fednav, CSL, Groupe Desgagnes Inc, NEAS, Ocean Group, as well as the Societe des traversiers du Quebec and the Canadian Coast Guard, have made investments in: 1) improving their fleets through emission reduction technologies; 2) reducing the speed of ships or 3) using alternative fuels including liquefied natural gas (LNG) and biofuels.  

The St. Lawrence ports have also undertaken several initiatives: installing electrical terminals to power ships (Montreal); introducing natural gas as a new ship refuelling service (Montreal, Quebec); lowering port fees for eco-responsible shipowners (Quebec); installing new loading equipment to reduce waiting times for ships (Sept-Iles); funding ecological projects and innovations (Trois-Rivieres); developing circular economy projects (Becancour); installing electric conveyors (Saguenay).  

This ongoing energy transition requires the development of renewable energy production tools, a search for efficiency gains, a reduction in consumption and an increase in interconnections to facilitate trade.  

This structural transformation of energy production and consumption methods requires major investments, introduction of innovations and a strong political will. In this context, the Quebec maritime and port industry’s actions are part of international best practices in energy transition.  

Claude Comtois has received funding from several federal and provincial departments (Transport Canada, Ministere des Transports du Quebec, Ministere de l’Economie, de l’Innovation et des Exportations), the Social Sciences and Humanities Research Council of Canada (SSHRC), the Fonds de recherche du Quebec – Nature et technologie (FRQNT) and the Reseau Quebec Maritime (RQM).  

Source:  https://theconversation.com/navigating-climate-change-how-shipping-is-adapting-in-the-st-lawrence-189523

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022

 


Innovation is nothing new to the shipping sector. But the scope of the transformation process that has been initiated to decarbonise nearly all shipping traffic opens up entirely new dimensions. Green hydrogen, its derivatives converted to e-fuels and PtX fuels, and the fuel cell systems operating on these fuels on board ships are in focus at the international trade fair for the shipping industry, SMM, where the maritime industrial and innovation cluster ‘e4ships’ highlights application concepts, scientific findings and practical experiences. Facing the escalating climate and energy crisis, the global shipping industry must meet the massive challenge of positioning itself for the evolving technology transformation process.

The focus is on developing green technologies and application concepts for various energy sources to achieve market maturity while creating safety regulations for approval and and operation of ships using innovative energy conversion systems and alternative fuels. International technical standards allowing fast, consistent certification without requiring individual prototype approvals are a prerequisite for broad, industry-wide implementation.

Through its multifaceted project e4ships – Fuel cells in maritime applications, Germany has made substantial progress in its efforts to make shipping sustainable. Leading German shipyards and ship-owners began cooperating with fuel cell manufacturers at an early time, developing fuel cell systems for the specific needs of ocean-going and inland ships in the demonstration projects Pa-X-ell2, ELEKTRA, MultiSchIBZ and RiverCell2.

The resulting technical findings were incorporated into the safety regulations for the approval of ships with on-board fuel cell systems developed recently by the international shipping organisations IMO and CESNI. In april 2022 the IMO Maritime Safety Committee approved the Interim guidelines for the safety of ships using fuel cell power installations, defining requirements for installation of these systems in commercial vessels. These guidelines establish a regulatory framework for emission-free operation of ships using efficient energy conversion systems and carbonneutral fuels while paving the way for a successful market ramp-up of fuel cell systems for the maritime sector.

The insights gained by the partners of the e4ships initiative, with funding provided by the National Hydrogen and Fuel Cell Technology Innovation Programme (NIP), were major contributions to this achievement. The NIP is coordinated by NOW GmbH and implemented by Project Management Jülich (PtJ). For more information on the demonstration projects and the e4ships innovation cluster please refer to the new brochure which may be accessed using the link or QR code below

Source: e4Ships

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022

 


Company DETAILS

SHIP IP LTD
VAT:BG 202572176
Rakovski STR.145
Sofia,
Bulgaria
Phone ( +359) 24929284
E-mail: sales(at)shipip.com

ISO 9001:2015 CERTIFIED