Activists from Greenpeace Nordic stopped the LNG gas carrier Coral Energy from unloading its cargo of Russian gas at an LNG terminal in Nynäshamn, south of Stockholm, Sweden today. It was the latest in a series of protests the environmentalist organization has staged against tankers over the past few months highlighting imports from Russia and their broader calls to end the use of fossil fuels.

“The fact that Russian fossil gas is still allowed to flow into Sweden, more than six months after Putin began his invasion of Ukraine, is unacceptable,” said Karolina Carlsson, campaign leader at Greenpeace Nordic. “The Parliament has given the Swedish government a clear mandate to stop all imports of Russian energy to Sweden and it is Prime minister Magdalena Andersson’s obligation to act on this.”

Climbers from Greenpeace occupied the cranes that unload the gas from the ship while Greenpeace’s sailing vessel SY Witness and activists in kayaks are in the water to prevent the ship from docking.

 

 

The 12,268 dwt gas carrier was arriving from Finland. It has the capacity to carry up to 15,600 cm of LNG. The vessel, which is registered in the Netherlands, continues to hold offshore near Sweden. Its AIS is reflecting “for orders,” at this time.

Greenpeace Nordic is demanding that the Swedish government declare an immediate stop to the import of Russian fossil gas. According to the protestors, the ship’s load of Russian gas from Vysotsk is estimated to be worth over a quarter of a billion Swedish krona (approximately $250 million) when it left Russia. They contend that the money is “equivalent to almost four advanced Kalibr missiles or about 80 of the older Tochka-U missiles, weapons systems used by Russia in Ukraine.”

 

 

They chose to target the Coral Energy because the Finnish state-owned Gasum they said has regularly imported gas from Russia’s Gazprom. Since the invasion of Ukraine in February, Greenpeace says Sweden has received around 100,000 cubic meters of LNG from Vysotsk in Russia. Despite the fact that the government is fully aware of this, and has a clear mandate from the Swedish people and an announcement from the Parliament to stop importing Russian energy, Sweden continues its imports, and by this to finance the Russian military.

AFP cites reports from Sweden’s government that says only two percent of the country’s total energy supply is made up of natural gas and Russian energy accounts for less than half of that. They also noted that neither the EU or Sweden currently has sanctions on Russian gas.

The local police were at the gas terminal but at last report had not taken any actions. It was expected that the protest would end at nightfall.

Greenpeace protestors earlier this year blocked a tanker that was also scheduled to dock in the UK. They also went into North Sea anchorages protesting the oil and gas imports and painting messages on the hulls of tankers. They also used their boats to block the ship-to-ship transfer of oil arriving from Russia.
Source: https://www.maritime-executive.com/article/greenpeace-activists-block-lng-tanker-from-docking-in-sweden

 

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


Officials on both the islands of Mauritius and Reunion are breathing a sigh of relief today after a nearly week-long vigil over a broken-down product tanker in their region. While the vessel never came in close range with either island, both nations had been put on alert, offering assistance to the tanker while also reporting that it should not be entering their economic zones.

The 105,715 dwt Ocean Pride 1 is reported loaded with a cargo of 100,000 tons of oil traveling from Curacao and due to arrive in Port Louis, Mauritius. Last Friday, September 2, officials on Reunion that monitor all ocean traffic identified a potential issue with the vessel. They report that their system tracks the more than 12,000 ships each year that enter the zone around Reunion. They suspected that the tanker was experiencing a problem and contacted the vessel.

The captain reported that one of the vessel’s engines was experiencing a problem that they were attempting to correct. News reports said the engineer identified a loss of air pressure without providing more specific details on the problems aboard the 23-year-old tanker. The vessel is registered in Sierra Leone and reported to be owned by Indian interests.

The maritime authority on Mauritius also became concerned and declared a maximum maritime alert as the tanker was drifting at a slow speed west in the Indian Ocean. Its position was reported to be 70 nautical miles north of Reunion and 90 nautical miles west of Mauritius. The vessel, however, was not requesting assistance from the local authorities.

Yesterday evening, September 7, five days after the vessel began drifting a tug was dispatched from Port Louis carrying required spare parts for the tanker’s engine. The captain of the vessel reported that it would take between 12 to 18 hours to affect repairs to the vessel at which time they would be able to restart the engine.

The maritime authorities on both islands are reporting that the vessel was able to restart its engine. The AIS signal, however, shows that it remains mostly in position making only slow headway. Mauritian officials have reportedly told the vessel that it should depart and not enter their zone or come to Port Louis based most people believe of fears of a repeat of the 2020 disaster when the Wakashio ran aground causing the worst oil spill in the island’s history.
Source: https://www.maritime-executive.com/article/mauritius-and-reunion-report-drifting-oil-tanker-is-repaired

 

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


General cargo ship HELGE collided with reefer WILD COSMOS at around 0320 UTC Sep 9 in North sea 32 nm NW of Ringkobing, Denmark, while both ships were sailing in the same direction. HELGE was breached and started taking on water, later updates said the ship sank and 7 crew were rescued, but according to track, the ship was still afloat, adrift, as of 0710 UTC, so probably, situation is not as bad as reported by some sources. HELGE is en route from Antwerp to Heroya Norway, WILD COSMOS is en route from Durban ZA to Tallinn Estonia.

Source: https://www.fleetmon.com/maritime-news/2022/39465/dutch-cargo-ship-reportedly-sinking-after-collisio/

 

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


Orders for dry bulk newbuildings have appeared on the market yet again this past week, despite the lackluster state of the freight market. In its latest weekly report, shipbroker Allied Shipbroking said that “the newbuilding market resumed on a relatively modest mode for yet another week, according to the flow of fresh projects being reported as per the below table. More specifically, in the dry bulk sector, new orders appeared in the market yet again (skewed, however, towards medium to smaller size segments), despite somehow the considerable pressure being present in freight numbers for a prolonged period now. Given though that buying interest is sustained robust, we can anticipate many strong projects being pushed forward, especially as we progress towards the final part of the year. In the tanker sector, things did not prevail so vivid. That can be seen seemingly as disconnected at this point, given the incremental recovery in terms of freight earnings that has taken place for many months now. On the other hand, this does not necessarily reflect the general appetite and positive sentiment surrounding this particular market for the time being. All-in-all, given also the market’s state of the other main sectors, we can expect a rather fervent new order market for the upcoming period.

 

Source: Allied Shipbroking

In a separate report, shipbroker Banchero Costa said that “on bulkers Polish Steamship added 4 x 37,000 dwt Lakers at Dalian who ordered the construction to sister yard Shanhaiguan. Deliveries expected at the end of 2025. Dalian Shipbuliding got an order from CITIC Leasing for the construction of 5 x 65,000 dwt Ultramax, deliveries will be during 2025. Doun Kisen Japan went to Jiangmen for the construction of 2 + 2 x 40,000 dwt Bulkers, deliveries at the end of 2025.

Source: banchero costa &c s.p.a

Hyundai Mipo received an order from undisclosed Owner to build 2 x 45,000 cbm LPG for delivery at end 2024 and beginning 2025, price around $69mln per unit”.

Meanwhile, in the S&P market, Allied Shipbroking said that “on the dry bulk side, things continued on a relatively sluggish tone for yet another week, given the limited number of units changing hands. Thinking about the recent trend from the side of earnings, this came hardly as disconnected. At the same time, asset prices levels are under pressure as well, widening the bid-ask spread in the SnP market. At this point, we can anticipate a more volatile market prevailing, skewing significantly transaction volumes periodically. On the tanker side, it is rather apparent that things have moved on a stronger trajectory for some time now, given the good activity levels being noted in the market. Notwithstanding this, as of the past week, a small step back took place, according to the considerable lower number of vessels being reported as sold. All-in-all, given the recent momentum in terms of earnings, coupled with the general positive attitude surrounding this market for some time now, we can vision for a relatively fervent SnP market for the upcoming period”.

Source: Allied Shipbroking

Banchero Costa added on the S&P Market that “during the week the dry secondhand market was quiet with most of the active players waiting for further developments in the charter market. C. of Panagea were reported to be behind the purchase of Clarke Quay 55,000 dwt built 2010 by Hyndai Vinashin at $17.1mln. A Japanese controlled Handysize, the Malto Hope 28,000 dwt built 2013 by Imabari (BWTS fittedand log fitted) was rumored sold at $13.6mln. In the tanker market some strong appetite for product carriers was clearly spotted. C. of Tufton purchased 2 x ECO MRs Alkaios and Archon around 50,000 dwt built 2016 by Samsung for $36.5mln each. Two 16 years old MRs fitted with ice class 1A Super, the Gotland Carolina 53,000 dwt built 2006 by GSI and the FSL Singapore 47,000 dwt built 2006 by HMD were sold respectively at $18.5mln and $18mln. A modern VLCC, the G Dream 300,000 dwt built 2022 by Hyundai (Scrubber fitted) was sold to Korean buyers at $108mln”.
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

 


After a four-year break from live exhibitions, the maritime community is meeting in Hamburg again from 6 to 9 September 2022. The opening press conference for the flagship fair gave a foretaste of the next four SMM days. Supply chain disruption, alternative propulsion technologies, e-fuels – political and business leaders discussed current challenges facing the shipping industry. Their conclusion: Shipbuilding companies and suppliers are ready for the Maritime Transition – and SMM is about to provide valuable input on how to accomplish it.

Featuring high-profile speakers, today’s SMM press conference marked the kick-off for four intriguing days as the maritime industry meets in Hamburg to share thoughts and knowledge and to network. Bernd Aufderheide, President and CEO, Hamburg Messe und Congress GmbH, was delighted to note that the entire exhibition campus is occupied, and face-to-face interaction is finally possible again. “It fills me with pride that we have been able to win so many top-level representatives of enterprises and institutions and so many accomplished experts for this event, both on the exhibitors’ side and for the accompanying conferences.”

The Hamburg Messe CEO had invited top-flight guests to discuss the core theme of this SMM, the Maritime Transition:

• Claudia Müller, the German Federal Maritime Coordinator
• Dr Uwe Lauber, CEO, MAN Energy Solutions
• Lars Robert Pedersen, Deputy Secretary General, BIMCO
• Steve Gordon, Managing Director, Clarksons Research
• Wolfram Guntermann, Director Regulatory Affairs, Hapag-Lloyd AG

Resilient – and hesitant
Closed-off ports, overstretched supply chains, crew change challenges – Covid-19 kept a tight grip on the world over the past two years. Moderator David Patrician asked Steve Gordon, Managing Director at Clarksons Research, whether Covid had caused the Green Agenda to slip out of the the shipping industry’s focus. “The topic has actually become more prominent,” was Gordon’s reply. He added he was surprised how well the shipping industry had managed the crisis: “The shipping market remained remarkably resilient during Covid.” A look at the global orderbooks reveals that shipyards are fully booked for the next two to three years, he continued. “The share of new orders for ships with alternative propulsion systems is above 40 per cent,” including many newbuilds designed to operate on LNG, he said. While methanol is a big topic, Gordon pointed out, shipowners by and large are still rather hesitant when it comes to e-fuels. “We are just at the start of a huge fuel transition, with a fleet renewal programme that will require massive investment, technology change and innovation,” Gordon said. What is missing, he added, is not money, since “the shipping industry earned well during the pandemic,” but rather the regulatory framework.

No time, no resources
Which alternative fuel should shipowners opt for? So far there is no clear answer. All the International Shipping Organization IMO has provided is the zero-emission target for the year 2100. But the industry itself has higher ambitions. Nevertheless Dr Uwe Lauber doesn’t believe even those ambitions will do. The CEO of MAN Energy Solutions said the maritime transition is technically possible today. “The good news is: Regulatory framework provided, shipping can be green and not emit any more CO2 after 2045.  However this might still not be fast enough to stay in line with the Paris agreement. Industry growth alone will lead to a massive emissions overshoot on our way to 2045, if we do not act now.” That the technology is indeed available can be seen at the MAN ES stand at SMM in Hall A3 where the company showcases an engine capable of running on both, methanol and conventional fuels. For 2024 MAN has announced its first engine designed to run on ammonia.

But what good is all this technology to shipowners if there isn’t enough fuel, asked Lars Robert Pedersen. According to the Vice Secretary General of BIMCO, the lack of sufficient energy resources is a massive problem. “Availability of sustainable energy for the transition is both the question and the answer to decarbonisation of shipping – and all other sectors of society as well. The scale is monumental. While sustainable energy is being scaled up, shipping should not wait but pursue all avenues to improve the efficiency of the fleet,“ Pedersen pointed out, referring to the energy crisis aggravated by the Ukraine war.

Accepting the responsibility
Claudia Müller, the German Federal Maritime Coordinator, promised government support to the maritime sector. “It is Germany’s current top priority to give the industry a sound basis for planning the necessary investments and boost the production of low-carbon and zero-carbon fuels and technologies.” She mentioned the strong increase of global efforts to ramp up the production of renewable energy. There are plans for large solar farms in northern Africa and on the Arab Pensinsula, major offshore and onshore wind power projects in Chile, and Australia is joining the trend with ambitious projects, as well. While international shipping is unlikely to be able to operate without e-fuels, the range of options is wider for short-distance traffic where fuel cells and fully electric propulsion are feasible options. “For shipping and beyond, the question we have to keep asking ourselves is this: Which energy source is best-suited and most efficient for specific applications?”, Müller asked.

But when looking to the future, she said, it is important not to forget the fleet in operation, since ships have a service life of up to 25 years. One of the key opportunities is efficiency enhancements: “There is still room for improvements in shipping,” Müller emphasised.

Hapag-Lloyd is a shipping company that takes specific action today to enhance the environmental performance of its fleet. “Retrofitting programmes are key to this,” said Wolfram Guntermann, Director Regulatory Affairs at Hapag-Lloyd AG. At the world’s fifth-largest container shipping company this means retrofitting highly efficient propellers from the German manufacturer MMG (Mecklenburger Metallguss GmbH). “These propellers will lower both, energy consumption and CO2 emissions by ten to 13per cent,” Guntermann explained. Hapag-Lloyd is investing an amount in the triple-digit million euro range. The company wants to reduce the carbon intensity of its own ships by 30per cent.

This example demonstrates that the shipping industry is on the right path despite many open questions about future fuels. Bernd Aufderheide was confident that SMM will deliver the right impetus for the maritime energy transition: “I am sure that after these four tightly packed days visitors and exhibitors alike will take home plenty of important insights – and return to SMM in 2024.”

SMM was officially opened by its honorary patron, Chancellor Olaf Scholz, in a video message. Scholz underlined the importance of the maritime sector saying: “’That ship has sailed’ (is a phrase) we often use to mark a lost opportunity. But for you as participants at SMM, every ship that leaves port and sets sail is an opportunity. And you have come exactly to the right place to discuss these opportunities,” said Scholz. He also pointed to the important role of shipping in transporting alternative fuels such as methanol and hydrogen. All these topics are highlighted at SMM.

Source: Hamburg Messe

 

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

 


Cargo throughput at major coastal hub ports increased 4.8% while international trade cargo throughput dropped 0.5%.

Crude oil shipments at major coastal ports declined 0.2% year-on-year. The port of Tianjin posted the highest rise in volume with a growth rate of 53%.

Metal ore shipments at major Chinese ports increased 0.7% while the port inventory grew 22.69%.

Due to a heatwave and lower than normal rainfall, shipping channels of Yangtze river were narrowing, negatively affected cargo transportation along Yangtze river. Cargo throughput at three major Yangtze River ports, Nanjing, Wuhan and Chongqing,declined 1.9% while the container volume increased 8.8% in mid-August.

Source: https://www.seatrade-maritime.com/ports/major-chinese-ports-container-volumes-increase-53-mid-august

 

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

 


An Iranian naval flotilla foiled a pirate attack on an Iranian merchant vessel in the Red Sea, the navy said, following a similar incident last month.

“A suspicious boat with 12 armed people on board approached the Iranian merchant ship in Bab Al-Mandab” strait on Thursday, the state news agency IRNA said, citing a statement by the navy.

It said a squadron had come into confrontation with the “pirates in the Red Sea,” adding that the invading boat “left the area” after the escort flotilla, “headed by the Jamaran destroyer… opened fire” at the vessel.

The incident comes after the Pentagon said on Tuesday that an Iranian ship seized an American military unmanned research vessel in the Gulf but released it after a US Navy patrol boat and helicopter were deployed to the location.

On August 10, a senior Iranian navy commander said the same naval flotilla thwarted an overnight attack on another vessel belonging to the Islamic republic.

Rear Admiral Mustafa Tajeddini said at the time that, following a help request by an Iranian ship in the Red Sea, the flotilla was dispatched to the scene and engaged fire with the attacking boats.

“After heavy exchanges, the attacking boats made off,” he added.

Like other countries dependent on the shipping lane through the Red Sea and Suez Canal, Iran stepped up its naval presence in the Gulf of Aden after a wave of attacks by Somalia-based pirates between 2000 and 2011.
Source: AFP

 

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 Baltic Exchange’s main sea freight index snapped a three-session long streak of gains on Tuesday, due to a fall in capesize and supramax rates.

The overall index, which factors in rates for capesize, panamax, and supramax shipping vessels, was down 19 points, or about 1.7%, at 1,114 points, its lowest in over a week.

The (dry bulk) market lacks any positive indication in the near term and demand-side fundamentals have a fair amount of uncertainty, Allied Shipbroking said in a weekly note.

There is a considerable amount of market risk arising from the poor economic indicators of G20 economies, Allied added.

But over the mid to longer term, demand fundamentals remain positive, making the outlook for the dry bulk sector “cautiously positive”, Athens-based EastGate Shipping said.

The capesize index also snapped its three session gain streak, losing 116 points, or 13.7%, to 728 points.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as coal and steel-making ingredient iron-ore used in construction, fell by $963 to $6,037.

The panamax index was up 86 points, or 6.48%, at 1,327 points, marking its biggest gains in almost seven months.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, was up $774 to $12,715.

Major grain supplier, Brazil’s expected increased soyabean exports in the 2022/23 season “gives hope to earnings’ projections for the medium-sized bulkers that tend to carry the commodity in longhaul voyages”, EastGate said.

The supramax index fell for an eighth consecutive session, losing 11 points to 1,487 points.
Source: Reuters (Reporting by Harshit Verma in Bengaluru; editing by David Evans)

 

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

 


While the talk of the town has been of the VLCC sector’s spike in rates in recent weeks, this article focuses on some of the key variables that have afflicted these vessels over the past few years and kept market sentiment so low for so long.

The VLCC-TCE is a weighted average of earnings for conventional, non scrubber fitted VLCCs, incorporating two key routes: the TD1-TCE (Middle East Gulf to US Gulf) and the TD3C-TCE (Middle East Gulf to China). This estimate had been valued below zero from the beginning of 2021 until August 2022. At its worst, the daily earnings figure stood at -34,845 USD/Day. This period remains the longest stint of negative earnings on record for these large crude carriers.

The poor earnings seen for VLCCs have linked directly to supply and demand and impacted how market participants responded in newbuilding and demolition activity prior to recent positive developments in the VLCC sector.

Supply and Demand
Supply growth over the past year had stayed relatively flat at c. 3.0% to 4.5%; the live fleet stood at 861 vessels in July 2022. However, demand had been volatile; down 8% in June 2021 compared to June 2020, yet up 10% year on year in December. June 2022 showed a decrease in demand of -3.2%, year on year. Figure 1 compares month on month supply growth with vessel demand (cargo miles) between 2021 and 2022.

COVID-19 had significant effects on supply and demand with June 2021 and 2022 showing an overall decrease in cargo mile growth. That seen in June 2021 was a result of the movement of 222 million barrels of oil into floating storage by July 9, 2020 (According to EIA figures), driven by a crash in the oil market. June 2020 saw high cargo mile figures, with countries filling storage tanks as a consequence of low prices.

Figure 1: VLCC supply and demand growth since June 2021.

Figure 2 displays month on month comparison of laden daily cargo miles between 2021 and 2022. Cargo miles in 2021 ranged from 18.5bn MT-NM to 21.6bn MT-NM compared with 2022 where it ranged from 18.7bn MT-NM to 22.2bn MT-NM.

2020 was the most volatile of the periods with a maximum cargo mile value of 719bn MT-NM in May to a low of 559bn MT-NM in November. As in Figure 3, the May 2020 peak in cargo miles resulted from the oil market price crash. In the first half of 2022, the trend of decreasing cargo miles on a daily and monthly scale was reflected in the poor VLCC earnings seen in this period.

Figure 2: VLCC laden global daily cargo miles in H1 2021 and 2022.

Newbuild and Demolition
Newbuilding orders from 2018 through to 2021 remained relatively stable, peaking at 40 vessels ordered in 2018 and remaining in the mid to low 30s in the 3 subsequent years. In total, 135 vessels have been contracted in these 4 years, worth a combined c. USD 12.0 bn. 2022 was yet to register a single newbuilding order until August 2022, a stark contrast compared to recent years.

Whilst VLCCs continue to be launched following ordering activity in earlier years, the orderbook has been shrinking, currently standing at 41 vessels. A common theme in the past 18 months had been oversupply; too many vessels were available in key loading regions, particularly the Middle East.

The combination of oversupply and lacklustre oil demand from China had aided the extended periods of negative earnings seen and forced market participants to think twice about contracting VLCCs with builders. Likewise, the skyrocketing price of raw materials for shipbuilding has increased newbuild values significantly; which currently stand c. 16% higher than this time last year at around USD 115.51 mil.

Figure 3: VLCC total laden cargo miles in 2020, 2021 and 2022.

Tightening yard space has catalysed this reversal in VLCC newbuilding orders; as Container and Gas vessels fill up slots, the overall attractiveness in newbuild VLCCs remains low, with little sign of interest at these prices.

With oversupply an issue in this particular vessel segment, you would expect demolition rates to be high, yet this is not the case. As seen in Figure 5, 2018 saw the largest scrapping numbers of the past 5 years with 29 vessels sent for breaking; the combined demolition value of these sales totalled USD 529.9 mil.

Only 19 VLCCs have been sold for scrap since 2019. 2021 having the largest figure since 2019 (10 vessels scrapped) is unsurprising due to the scrap steel prices increasing to over 600 USD/LDT, levels not seen since the financial crisis of 2008, by the end of last year. Yet, to not have these demolition numbers far higher, particularly with an ageing fleet and poor earnings at the time, suggests there are other variables at play.

Figure 4: VLCC newbuilding activity since 2018.

Where are these vessels that would otherwise be headed for scrapyards? There have been plenty of reports of what tend to be older VLCCs, often with unknown owners, outside of the spot market picking up discounted cargos from sanctioned exporters such as Iran and Venezuela. These vessels are elusive, often operating invisibly; AIS is often disabled or strategically used to hide their illicit activities.

These colloquially named “dark” vessels have been playing a large role in capping the earnings potential of above board VLCCs and helping, in part, to explain the reduced number of VLCCs being scrapped at present. A portion of vessels that require removal from the fleet are commonly engaged in nefarious activity to the benefit of their operators but to the detriment of the VLCC market as a whole.

Figure 5: VLCC demolition activity since 2018.

Summary
Previous years’ fleet supply had remained relatively stable and, with the orderbook standing at 41, is set to remain steady, particularly with the dearth of newbuilding orders seen in 2022. Demand, similarly, has remained relatively stable over the course of 2021 and 2022. The globe’s largest importer of oil, China, has seen its crude demand oscillate with the severity of their COVID-19 restrictions, particularly through Q2 2022, highlighted by the reduced cargo miles figures seen for VLCCs. With China crucial for VLCC utilisation, this is unsurprising.

Whilst supply and demand figures suggest relative stability, this is not reflected in the newbuilding and demolition statistics seen in recent years. In both markets, VLCC activity has declined rapidly; 2022 has only seen 2 newbuild orders for these large crude carriers, compared to the annual average through 2018 to 2021 of c. 34 vessels contracted per year. Whilst excess supply has been a detriment to market participants, demolition figures have not been up to scrap to aid the lacklustre earnings these vessels experienced until very recently.

Just 4 VLCCs have been sold for demolition in 2022, down from 10 in 2021 and down from 29 in 2018. This despite scrap steel prices remaining at high levels. A combination of caution from owners and illicitly trading vessels can help explain this. Smaller Tanker segments have seen upturns in earnings as a result of the conflict in Ukraine, and many hoped this would translate into an uptick for VLCCs; they were proved right.
Source: VesselsValue

 

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

 


One of the key components of global trade is also one of the most vulnerable to cybersecurity threats – and if such an attack was successful, it would cause huge disruption with knock-on effects for people around the world.

According to the United Nations Conference on Trade and Development (UNCTAD), over 80% of the volume of international trade in goods is carried by sea and that percentage is even higher for developing countries.

The whole industry is reliant on a series of complex, ‘just in time’ supply chains. if just one element is disrupted, it can have massive repercussions.

One example: the disruption to supply chains around the globe in 2021 when Ever Given, one of the largest container ships in existence, was grounded in the Suez Canal, blocking one of the world’s busiest shipping channels and forcing many other ships to take much longer journeys around the Cape of Good Hope, severely delaying shipments of electronics, machinery, furniture, household goods, and more.

Ports and shipping are becoming increasingly connected to the internet and that’s making them a tempting target for hackers, especially when much of the sector is simultaneously reliant on legacy technology that can be decades old.

And the prospect of disruptive cyberattacks against shipping and ports isn’t just theoretical – they’re already happening.

In 2017, shipping giant Maersk had to deal with a backlog at ports when it was hit as part of the global NotPetya cyberattack. The company had to reinstall thousands of servers and tens of thousands of PCs to get back up and running again.

In 2021, a major cyberattack disrupted container operations at the South African port of Cape Town, restricting the movement of cargo until systems were restored. Both incidents, alongside the grounding of the Ever Given, demonstrate how disruption to shipping can have big consequences for the global supply chain, businesses and individuals.

Despite this, the maritime industry remains underprepared for cyberattacks.

“It’s a really big area measured in the trillions of dollars – but it’s also a bit sort of old guard in the sense of nothing happens, nothing changes very quickly,” says Kevin Jones, professor of computer science at the University of Plymouth and lead on the institution’s Maritime Cyber Threats Research Group.

“And there’s a mindset in the sector of ‘Once I leave port…nobody can touch me, I don’t need to worry about anything until I come back’. Those things were sort of true 30 or 40 years ago but they’re not true anymore.”

That sort of approach means that the industry has struggled to keep pace with cybersecurity threats, with legacy IT systems and a lack of visibility into networks making it a prime target for hackers – and that could have far-reaching consequences.

In a project alongside the Bank of England designed to test how insurance companies would react to such an incident, Plymouth’s Maritime Cyber Threats Research Group developed a scenario where attackers secretly gain control of ship controls and use this to crash them into ports and cranes, damaging ships and infrastructure, and losing cargo.

In this fictional scenario, the attackers also threaten to cause further accidents, unless the five biggest shipping companies pay a ransom of $50 million each. In order to prevent further attacks, much of the world’s shipping stops for days, crippling the global supply chain.

It’s an imagined event, but one based on worst-case scenarios of what attackers could achieve by targeting an industry that is struggling to keep up with cybersecurity – at a time when US Coast Guard Cyber Command has warned of a 68% rise of reported cyber incidents against the sector during the last year alone.

Part of the problem is the unusual nature of the operating environment: managing the technology on a vast container ship is a very different situation to sorting out the PCs in an office. When a vessel can be on the oceans for weeks or months at a time, it’s not as if a full IT refresh can be made at short notice – and a lack of connectivity can make it difficult to download security patches and software updates, even critical ones.

“The current state of the maritime industry from a cybersecurity point of view is pretty poor and that’s not solely down to owners and operators in the industry, it’s because of the complexity,” says Tom Scriven, principal consultant at cybersecurity company Mandiant, who previously spent eight years in the navy.

There are the issues of legacy systems, he notes, but also of new ships coming online that have increased connectivity that brings new problems, such as a lack of segmentation across internal networks, an increased threat surface from third parties and suppliers, and customers connecting in and out, he says.

All of these factors help to make maritime a prime target for hackers, with many different motives ranging from cyber espionage to general profiteering from cyber crime.

Scriven points to a hacking group Mandiant tracks as APT40, which is a cyber espionage operation linked to the Chinese state that targets the engineering, transportation, and defence industries, especially where the sectors overlap with maritime technologies. The group has conducted operations since at least 2013 in what researchers say are a means of supporting China’s efforts to modernise its navy by examining systems and stealing sensitive blueprints.

Mandiant has also detailed attacks against the Israeli shipping sector by cyber attackers. They are suspected to be the work of hackers operating out of Iran with the intention of conducting espionage and collecting intelligence in support of Iranian interests. The attacks include masquerading as legitimate cloud services to steal usernames and passwords, alongside attempts to trick victims into downloading malware.

Then there’s cyber criminals who are out for financial gain. These hackers want to make as much money as they can with as little effort as possible – and targeting the maritime industry could provide them with a big payday due to the combination of old, insecure networks and the fact that port infrastructure is vital to so many industries.

“If you were to find an operator or supplier similar in size in the European ecosystem – perhaps operated in Rotterdam, Antwerp or Felixstowe, and then you had the same success as an attacker – the ramifications of eight days of serious degraded container movement, the impact on an already stressed supply chain, would be horrific,” says Scriven.

But it’s not just ports that could be disrupted by cyberattacks against the maritime industry. There’s also the possibility that by targeting the right systems, cyber criminals could provide ships out in the open seas with bad information, tamper with their GPS tracking or provide false warnings that could move ships off course – either to cause disruption, or to direct them towards trouble, or even pirates who want to divert targets away from shipping lanes into less well-protected areas.

It might sound far-fetched, but this sort of disruption represents a very real threat, particularly in times of conflict.

“This has to be taken very, very seriously, because the implications of a major incident can be huge, especially in times of conflict,” says Captain Rahul Khanna, global head of marine consulting at Allianz and a veteran of 14 years at sea. “We’ve already seen that GPS spoofing has been done, it’s happening and we just hope there isn’t collateral damage in a conflict between countries. The industry overall needs to realise we need to learn from this.”

There are initiatives underway to help to improve cybersecurity across the sailing and shipping sectors, such as the International Maritime Organization’s maritime cyber-risk security program. It aims to provide guidelines that allow ship manufacturers, shipping companies and ports to identify, analyse and assess cyber risks and mitigate them to an acceptable level to support safe and secure shipping.

But for the most part, these are guidelines – and with ships, the systems that power them and even Internet of Things-connected devices inside modern vessels all being produced in different countries with differing levels of regulation, it isn’t anywhere near being joined up. That situation needs to change before things can improve.

“The industry overall needs to realize we must learn from this and it’s only a matter of time before somebody does come under attack, so what needs to be done is ensure the regulation requirements are implemented, especially in the critical parts of the industry that can have a lot more impact,” says Khanna.

Like any other industry, the basics can go a long way to helping improve security, such as applying security patches, using strong passwords and rolling out multi-factor authentication. The nature of shipping means it’s more challenging to find the time to provide this support around information security when rushing cargo around the globe, but taking care of security is more beneficial in the long run than leaving it aside.

It’s this sort of thing which the University of Plymouth’s Maritime Cyber Threats Research Group is discussing with vessel manufacturers as well as captains of ships as, ultimately, they’re the people responsible for the security of the infrastructure once they’re out on the high seas.

“Basic cyber awareness done in a context-specific way makes a huge difference, along with establishing proper protocols,” says Jones. “Some of it is knowing when to do things like patching and when to replace a lot of it is knowing what your risk exposure is.”

“Should you patch when en route? The answer is probably ‘yes’, if it’s a critical patch, if you know what you’re doing. But, should you patch when you’re sort of 20 minutes from New York? Probably not actually because, at that point, the risk sort of outweighs the reward,” he explains.

Jones and others hope that attempts to direct attention to cybersecurity issues in the maritime sector encourage action, improving the resilience of an industry that’s of great importance, particularly for global supply chains – and it’s better for everyone if attacks can be prevented before they happen rather than needing to be dealt with after they’ve occurred.

“Ultimately, if we don’t get this right, we all suffer,” says Jones.

Source: https://www.zdnet.com/article/this-overlooked-cybersecurity-risk-could-create-an-ocean-of-trouble-for-us-all/

 

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