Demolition Market Expected to Slow Down on Ramadan

by & filed under Relation with Med & Neighbouring Countries.

Ships’ decommissioning and sold for scrap in East Asia’s scrapyards are expected to slow down over the next month or so, on religious holidays. In its latest weekly report, shipbroker Clarkson Platou Hellas commented that “with the holy month of Ramadan has now started, it is anticipated that activity and inquiry could slow down as the appetite from the waterfront begins to subdue in the forthcoming weeks as production on the recycling yards dwindles down. Having said this, the week leading up to this holy month generally sees an active market where buyers look to lock in tonnage and Owners eagerly look to sell. Any hesitancy to dispose of the units before this period of Ramadan may see owners, and cash buyers alike, struggle to attain suitable interest for any available tonnage which is the position we may now find ourselves in”.

According to the shipbroker, “this timing could be beneficial to the market as the level of booked tonnage and existing inventory lying on the yards already is substantial and it is expected more tonnage will be arriving at the recycling plots imminently. In Pakistan for example, reportedly about 15 larger tanker units have now been resold to the local recyclers since the authorities gave permission for importing tanker units once again and some estimates indicate around excess 700k tons of inventories booked. The local market in Pakistan remains stable however there has been an expectation of a further devaluation of the Pakistan Rupee which may also reflect the keen buying prowess seen for tonnage giving prompt delivery. Given the aftermath of the mini-budget in April, there is an impact of 1% of additional custom duty and therefore from the 1st of July, it is rumoured that the level of sales tax will be raised on ship recycling and some estimate this to provide an impact in excess of USD 5.0/ldt, lower than the initial estimates of USD 8-10/ldt, which should keep the stability in the market”, Clarkson Platou Hellas concluded.

Meanwhile, in a separate note, Allied Shipbroking added that “it looks as though the market has taken a step back this past week, at least in the Indian Sub-Continent, with prices looking to have eased back slightly as appetite in the region seems to be softening. We are still seeing a fair buying drive from Pakistani breakers, though with both India and Bangladesh having eased back their requirements and with poor weather conditions in the region already seeming to be causing disruptions despite being just before the monsoon season. The remaining main ship recycling regions seemed to be charting a very different course, with China having stepped up in their competitiveness in terms of pricing trying to make a fair buying push before the new buying restriction take place. At the same time, Turkey also looks to be showing a more bullish mood, though here the price shifts have been more marginal and are still under threat due to the ongoing pressure being felt on the foreign exchange front”.

According to GMS, the world’s leading cash buyer, “after a bumper week of sales, things certainly slowed a touch this week with just the one VLCC sale to report, as the number of VLs already committed through 2018 steadily creeps towards 30. With Bangladesh and Pakistan both entering the Holy month of Ramadan, the upcoming week of Posidonia in Greece, and summer/holiday months approaching, we anticipate a slowdown in supply and overall activity as Ship Owners, Cash Buyers, end Buyers and Brokers become engaged elsewhere. This should give the markets (Bangladesh and Pakistan in particular) a chance to digest the plethora of large LDT tonnage beached during the first half of this year.

Chittagong reached a saturation point last month as rates plummeted down towards the low USD 400s/LDT. As such, Chittagong Recyclers have been inert and uninterested in new tonnage ever since. Pakistan too is swiftly starting to fill up with only a handful of less aggressive Buyers who are open to negotiating tonnage, albeit at much lower levels. Unfortunately for those Cash Buyers who still have a number of unsold large LDT tankers / VLCCs in their respective inventories, they are now in the unfortunate position of chasing down levels and taking expectedly large hits on their units. Presently, asking prices for a majority of the unsold VLCCs remain too high for most end users tastes, with some of the decisions by various Cash Buyers to purchase in the mid USD 400s/LDT during the recent peak of the market, now coming back to haunt those concerned”, GMS concluded.

Source:  Hellenic Shipping News Worldwide

Bomin Group Launches 2020-Compliant ULSFO (0.1% maximum sulphur) in ARA

by & filed under Accessibility and Standards.

The Bomin Group, a leading global physical supplier and trader of marine fuels, yesterday announced that it is now delivering Ultra-Low Sulphur Fuel Oil (ULSFO) to vessels calling in the Amsterdam-Rotterdam-Antwerp region (ARA).

The ULSFO product is 0.1% maximum sulphur, and it complies with MARPOL Annex VI regulations in current designated Emissions Control Areas (ECAs), as well as the impending global 0.5% sulphur limit, which will come into force in 2020. Deliveries will be carried out by the certified barges which Bomin employs in the region. The five state-of-the-art barges, all of which have fast pumping rates to maximise speed throughout the delivery process, are operated out of Antwerp, but also support customers who require bunkers in Rotterdam, Ghent, Flushing, and other ports across the ARA region. Bomin also provides a range of other quality products in the region, including IFO 380 and DMA 0.1%.

Angela Beyens, Commercial Manager, Bomin Belgium, commented: “We are pleased that we can offer our customers a high-quality product which is not only compliant with the current ECA rules but also the upcoming 2020 regulations. Bomin is committed to working in partnership with it’s our customers to provide the highest level of service standards, maximizing operational and cost efficiencies, as well as ensuring the delivery of quality products where our customers need them.”

Jan Christensen, Head of Global Bunker Operations, Bomin Group, commented: “ARA is one of the most important regions for our customers, with real demand for a full spectrum of quality products and the provision of ULSFO will ensure that we can continue to provide the energy they need to compliantly fuel all their operations.”

While the ULSFO product is applicable for current ECA zones, shipowners and operators also need to prepare to transition their fuel system from 3.5% sulphur to 0.5% prior to the 1st January 2020 deadline.

Indeed in the second half of 2019 shipowners would benefit economically from consuming 0.1% fuel to clean their high-sulphur fuel-systems rather than cleaning, or needing to dry-dock pre-2020 to ensure compliance with 0.5% sulphur in 2020. Without cleaning or conducting several voyages on 0.1% fuel, shipowners risk not being compliant in time.

 

Source: Hellenic shipping news

Sulphur Cap Chaos in 2020′ Warn World’s Shipowners

by & filed under Environment.

The International Chamber of Shipping (ICS) fears ‘chaos and confusion’ unless the UN International Maritime Organization (IMO) urgently resolves some serious issues concerning the successful implementation of the 0.5 percent sulphur in marine fuel cap, which is scheduled to come into effect globally overnight on 1 January 2020.

Such chaos would have serious consequences for the movement of the world’s energy, raw materials and manufactured products – about 90 percent of global trade being carried by sea.

This was the principal conclusion of the Annual General Meeting of ICS’s member national shipowner associations which met in Hong Kong last week.

Speaking from Hong Kong, ICS Chairman Esben Poulsson said:

‘The shipping industry fully supports the IMO global sulphur cap and the positive environmental benefits it will bring, and is ready to accept the significant increase in fuel costs that will result.  But unless a number of serious issues are satisfactorily addressed by governments within the next few months, the smooth flow of maritime trade could be dangerously impeded.  It is still far from certain that sufficient quantities of compliant fuels will be available in every port worldwide by 1 January 2020. And in the absence of global standards for many of the new blended fuels that oil refiners have promised, there are some potentially serious safety issues due to the use of incompatible bunkers.’

Mr Poulsson added:

‘Governments, oil refiners and charterers of ships responsible for meeting the cost of bunkers all need to understand that ships will need to start purchasing compliant fuels several months in advance of 1 January 2020.  But at the moment no one knows what types of fuel will be available or at what price, specification or in what quantity.  Unless everyone gets to grips with this quickly we could be faced with an unholy mess with ships and cargo being stuck in port.’

ICS emphasises that governments will need to make significant progress on these issues at a critical IMO meeting in July about the impending global sulphur cap, to which ICS – in cooperation with other international industry associations – will be making a number of detailed technical submissions to assist successful implementation of what ICS describes as a regulatory game changer.

European Commission Needs to Respect IMO CO2 Reduction Strategy 

The ICS AGM in Hong Kong endorsed its support for the historic UN IMO agreement adopted in April 2018 on a comprehensive strategy to phase out international shipping’s CO2 emissions completely.  This includes targets to improve the sector’s CO2 efficiency by at least 40 percent by 2030 and 70 percent by 2050, and a very ambitious goal to cut the sector’s total GHG emissions by at least 50 percent by 2050 regardless of growth in demand for maritime transport.

ICS member national associations agreed to contribute constructively to the immediate development of additional IMO regulations that will start to have a direct impact on further reducing international shipping’s CO2 emissions before 2023, in line with the new IMO strategy.  They agreed that ICS should come forward with detailed proposals before the next round of IMO discussions in October on reducing GHG emissions from shipping.

However, ICS members expressed serious disappointment at the apparent intention of the European Union to press on with the implementation of a regional CO2 reporting system at variance to the global system already agreed by IMO, despite having given an undertaking to align the MRV regulation with the global regime.

‘We are still waiting to see the final recommendations from the European Commission following a recent consultation’ said ICS Chairman Esben Poulsson.  ‘But the industry has made clear its total opposition to the publication of data about individual ships using abstract operational efficiency metrics that bear no relation to CO2 emissions in real life and which will be used to penalise shipowners unfairly.’

Mr Poulsson added:

‘Anything less than a full alignment with the IMO CO2 data collection system will be seen as a sign of bad faith by many non-EU nations who recently agreed to the IMO GHG reduction strategy, precisely to discourage such unilateral measures which risk seriously distorting maritime trade and global shipping markets.’

 

Source: International Chamber of Shipping

Carbon Targets for Shipping Can Only Be Met With ‘Zero CO2’ Fuels

by & filed under Accessibility and Standards.

The ambitious CO2 reduction targets set by the UN International Maritime Organization (IMO) for the year 2050 can only be delivered with the global rollout of zero CO2 fuels and propulsion systems, says the International Chamber of Shipping (ICS).

Speaking at the annual Summit of Transport Ministers hosted by the OECD International Transport Forum in Leipzig, ICS Deputy Secretary General, Simon Bennett said:

“As well as being consistent with the 1.5 degree climate change goal, the IMO targets are far more ambitious than what has so far been agreed for aviation, or indeed the commitments made by governments with respect to the rest of the global economy under the Paris Agreement.  But the shipping industry greatly welcomes the IMO agreement because it gives us the signal we need to get on with the job of decarbonizing the sector completely as soon as possible.”

With respect to the IMO goals set for 2050 – a 70% efficiency improvement as an average across the fleet, and a total CO2 cut by the sector of at least 50% by 2050 (regardless of expected growth in maritime trade), Mr Bennett said “these targets can realistically only be achieved with the development and global rollout of genuine zero CO2 fuels.”

“To be clear, zero CO2 fuels means radical and as yet unproven technologies such as hydrogen fuel cells using ammonia or methanol, or batteries powered using renewable energy.  While LNG or biofuels will play an important part in the transition we only really see these as interim solutions that won’t deliver the ambitious targets which IMO has now set for 2050.

“While we are confident new zero CO2 technologies will eventually deliver they are not yet fully ready for maritime application, and certainly not yet for deep sea trades.”

Mr Bennett added:

“The development of these new technologies will require co-operation between all relevant stakeholders particularly shipbuilders, engine manufacturers and classification societies, which are the repositories of the industry’s technical knowledge.  But when it comes to pure research into new propulsion systems this has to be facilitated by governments within a framework that needs to be developed by the UN IMO.”

He added “To kick-start new technologies we also may need to make some compromises.  For example, in order to develop hydrogen propulsion systems, and gain experience of the serious technical challenges, we may need to initially permit use of hydrogen that is still derived from fossil feedstock rather than renewables, a technology which is not quite there yet, though probably not insurmountable in the longer term.”

With regard to short-term measures, Mr Bennett says the industry recognizes that there is a political need among many governments for new IMO regulations that will start achieving further CO2 reductions from the sector before 2023, so that the industry stays on track to improve efficiency, as an average across the sector, by at least 40% by 2030, as also agreed by IMO.

The next round of IMO discussions will take place in October 2018 in order to consider a list of possible candidate measures for CO2 reduction, and the industry is planning to make some detailed submissions to that meeting.

“We are particularly focused on further improvements to the Energy Efficiency Design Index (EEDI) for new ships which already requires a 30% efficiency improvement for ships built in 2025 compared to 2013, perhaps moving forward the implementation dates that currently apply for certain ship types such as containerships.”

“ICS is open to how shipowners can best optimize speed management and also use efficiency indicators to improve ship performance, possibly through strengthening the existing mandatory requirement for ships to use a Ship Efficiency Management Plan, perhaps linking this to some kind of mandatory external audit.  However, we are very nervous about measures which will be far too complicated to administer and which may cause serious distortion to shipping markets, such as publishing supposed operational efficiency indicators for individual ships that have no relation to actual CO2 emissions in real life.”

Mr Bennett added “At the moment we believe the IMO strategy can best be delivered with technical measures alone. We don’t think we need the smoke and mirrors of market based measures or the purchase of carbon offsets to compensate for emissions which the sector is quite capable of reducing itself in line with the targets now agreed by IMO.”

 

Source: International Chamber of Shipping

Bari port and airport jointly promote INTER-PASS project

by & filed under Relation with Med & Neighbouring Countries.

Inter-Pass (Intermodal Passengers Connectivity between Ports and Airports) is a project funded under the Interreg ADRION program involving Aeroporti di Puglia SpA, Autorita’ di Sistema Portuale del Mare Adriatico Meridionale (AdSP – Southern Adriatic Sea Port Authority) and other organisations, with a budget of €164,090 ($191,950) and €151,402 ($177,110) respectively.

The project period is January 2018 to December 2019. The total INTER-PASS budget, approved by the Program, amounts to €1.49 million ($175,47 million) of which, 85% is co-financed through the European Development Fund Regional (ERDF), while the remaining 15%, for Italian partners, is insured by a state loan approved by CIPE.

Aeroporti di Puglia SpA and the AdSP are the only two Italian beneficiary partners, while the associated partner is Venezia Terminal Passeggeri SpA. There are also six other beneficiary partners from Croatia (4) and Greece (2): Airport of Dubrovnik (leading partner), Dubrovnik Port Authority, Pula Airport, Port Authority of Pula, Croatia, Technological Institute (TEI) of Epirus and Port Authority of Corfu SA, for Greece.

The overall objective of the INTER-PASS project is to improve the intermodal connections between the ports and airports of the Adriatic-Ionian Region, in order to improve the management of the flow of passengers, especially cruise passengers and travellers, who reach tourist destinations located on the coasts of the Adriatic and the Ionian Seas during the high season.

The project will produce three results:

1) The creation of a cooperation network on intermodal and multimodal connectivity between ports and airports located in the Adriatic-Ionian region. The network will be the place where partners and other stakeholders will exchange information and discuss innovative solutions (techniques, methods, operational codes, etc.) that could be easily adapted and used in the Adriatic-Ionian context.

2) The development of an action plan for each territory for the definition of solutions to be tested and implemented in the cities involved. Furthermore, a test will be carried out on four pilot-specific actions, to be implemented in the cities of Dubrovnik, Pula, Bari and Corfù during the project implementation period, with the aim of improving the management of tourist flows between ports and airports.

3) The development of a common integrated strategic plan for multimodal transport of passengers between ports and airports to be shared with other ports, airports and authorities located in the Adriatic-Ionian region.

The kick-off meeting of INTER-PASS was held in Dubrovnik on January 30-31, 2018, and saw the presentation of the partners, in addition to the work plan sharing, of the timing and results of the project. During the implementation of INTER-PASS, another four project meetings are planned for an international conference to be held in Bari on 12 September 2018 at the next edition of the Fiera del Levante.

Aeroporti di Puglia SpA and the AdSP wish that INTER-PASS, in addition to achieving the project objectives described above, can act as a stimulus and contribute to the future collaboration between the partner states involved in the program and which can also improve the understanding of problems related to air traffic and maritime connectivity.

Source: PortSEurope

Digitalization wave on the way for shipping industry

by & filed under Digitalization.

Digitalization of shipping

Source: DNV-GL

 Digital opens the new windows for shipping to strengthen their straight relationships with end customers, further reduce their costs, including for fuel, vessel operation, and customer service. Furthermore, it pursues new revenue streams beyond traditional shipping services.

As shown below, there are four main drivers that encourage the shipping toward digitalization: slowed-down growth in global shipping, the oversupply of global vessel capacity, customer preferences, and new competitors with assetless business models.  One of the assestless e-commerce business models which are based on digital platforms is giant Amazon which has obtained a license to operate as an assetless cargo forwarder between the US and China.

Figure 1. Four main drivers for digitalization of shipping

Source: Produced by the Author

 In the shipping industry, yet only a few leading carriers have already applied digital technologies toward improving their direct customer relationships with acceptable costs, but also to optimize their operations and boost their businesses. On the other words, shipping and logistics are still in the early stages of digitalization, and most carriers have yet to achieve substantial progress. To succeed, carriers must adopt a structured approach to defining a digital vision and integrating new technologies, capabilities, and mindsets into their traditional way of working. Carriers should begin by leveraging their existing infrastructure, gradually enhancing systems as required. This area has a great potential for investigation and in-depth studies. Dozens of startups have emerged in recent years aiming to transform the maritime industry, directed by the people who see the industry as hidebound and technologically lagging. However, most of the carriers still handle the cargo process in the traditional way using the telephone, fax, and email to do business.

Big Data and empirical data analysis

An important role of data analytics in shipping will be increasing commercial transport through better customer targeting. The carrier needs to cooperate with companies in order to figure out the challenges and barriers in shipping analytics that need to be addressed in order to affect positive outcomes. In addition, it helps determine what is the traditional and non-traditional data that goes into profitability. The shipping companies usually collect o extremely large volumes of data from different sources like noon reports of ships, sensors, GPS devices, RFID tags and traffic management systems. If Big Data can promote forecasting or avoiding problems, the money saved goes straight to profitability. Four digital aspects of Big Data concept have emerged as especially valuable in the shipping economics. (See Figure 2.)

Figure 2. Four main digital trends of Big Data in shipping

Source: Produced by Author

Blockchain and Smart Contracts 

To replace the long paperwork process through related parties in shipping-related transactions, Blockchain has recently moved from being just a concept to a practical solution that is increasingly discussed in the scope of having potentially transformative impacts on the maritime industry.  To gain more benefits, stakeholders should collaborate to create an industry-wide Blockchain framework, in particular in the optimization of container operations globally.  Based on its typical nature, the Blockchain features can provide added value to shipping and port logistics activities in various aspects. It is about to establish trust, secured data provision, visibility, networking, and integration of supply chain elements and actors. However,  there are areas not explored and analyzed well in detail during the implementation phase.

Figure 3. Blockchain typical information flow in the carrier process.

Except for its use as a public ledger, one of the biggest impacts of the Blockchain on the shipping can be the “smart contracts”. With a shared database that runs Blockchain protocols, the smart contracts auto-execute, and all parties validate the outcome instantaneously, without wasting time on further exchanges and without the need for a third-party intermediary. Major Advantages are quick processing time and real-time updates, Higher accuracy, high transparency, enhanced security, cost-saving, and easier access to the market, all could go under surveys and analysis.

There are a few issues which should be addressed before a full application of the Blockchain system in the maritime transport.  The example of these issues could be special contractual terms and the purchase of commodities which are unique and very specific. Furthermore, it should be regarded that digital currencies such as the bitcoin protocol, can operate as a trustless network because its primary function is to help move an internal token around a closed system. However, for smart contracts to be useful they have to execute computations using real-world data such as freight rate and etc.  The Blockchain technology is expected to support shipping while enhancing the efficiency of the supply chain process. The discussions on the implementation of Blockchain such as logistics stakeholders’ contribution to the Blockchain is still hot. The role of each actor and the level of their authorization to complete a block that is very important in goods transport chain.  In addition, a smart contract must be fully understood prior to its implementation in shipping and logistics entities. These are the challenging areas that could be explored and analyzed with a Multi-criteria analysis to identify the potentials, strength, and weak of Blockchain and smart contract in the freight forwarding industry.

Authors: M. Karimpour , and R.Karimpour

Kalmar to harness solar power through reach stacker boom

by & filed under Bridging R&D and implementation.

Kalmar, part of Cargotec, has announced its commitment to reduce emissions in cargo and material handling operations by offering fully electrically powered versions of its lift trucks by 2021, using solar power to recharge the power packs. The state-of-the-art eco-efficient range will keep the customer ahead of the game, says Kalmar. The entire range will be built around a modularised adaptable platform, with a central “smart” core and the equipment can be operated autonomously 24/7.

features of the new reach stacker include an adjustable rear axle and individual electric drive units for each wheel, a lightweight space frame boom and spreader, and standardised fully-electric power packs with the ability to self-charge from solar cells along the boom.

 

With smart four-way drive from the front and rear bogies, the reach stacker can operate in narrow aisles, and the rear axle can be extended to counterbalance the load. It also has the ability to “diagnose and self-repair any issue,” says Kalmar.

“Our industry is evolving at a remarkable pace,” said Kalmar President Antti Kaunonen. “Governments, local and regional authorities around the globe are rapidly deploying regulations and initiatives to support the adoption of eco-efficient technologies.”

 

Dan Pettersson, SVP Mobile Equipment at Kalmar, said: “In the near future, driverless vehicles will enter the logistic operations in industrial and material handling, expanding the benefits of automation to the full logistics chain in the customer operations. We at Kalmar believe that by harnessing the power of new technologies, we will create state of the art material handling solutions with a cutting edge design that will keep our customers ahead of the game.”

 

Source: World Cargo News

ROLLS-ROYCE AND FINFERRIES SIGN AUTONOMY COOPERATION AGREEMENT

by & filed under Bridging R&D and implementation.

Rolls-Royce and Finnish shipowner Finferries have signed a collaboration agreement to develop joint strategies and solutions to optimise the safety and efficiency of marine operations through developing the technology for a decision supporting systems and to demonstrate remote and autonomous ferry operations.

A key focus of the collaboration will be to consider a new research project, called SVAN (Safer Vessel with Autonomous Navigation), whereby Rolls-Royce and Finferries will look to implement the findings from the Advanced Autonomous Waterborne Applications (AAWA) research project, which formally ended in late 2017.

Funded by Business Finland, AAWA brought together a number of stakeholders from a myriad of shipping industry sectors to research the commercial and technical viability of the next generation of advanced ship solutions. Both Rolls-Royce and Finferries were involved in the project.

The cooperation agreement was announced at the Turku Fair and Congress Center, during the NaviGate 2018 exposition.

 

Source: Maritime Journal

Hutchison Ports orders six automated cranes for Barcelona terminal

by & filed under Port infrastructure.

Barcelona Europe South Terminal (BEST), the terminal of Hutchison Ports in Barcelona, has ordered the purchase of six new automated cranes (ASCs) from Konecranes, which will arrive in the harbour during the first half of next year.

With the arrival of the six new automated cranes, BEST will go from 24 to 27 automated blocks and will culminate its second phase of expansion, which began in February 2014. This is the second improvement that BEST carries out in its facilities this year.

The fleet of shuttle carriers, the cranes in charge of transferring the containers between the different areas of the terminal, has been increased with the arrival of six new machines “that will further improve the efficiency in the operations of the terminal, which is already between the most productive in the world”.

The new shuttle carriers operate with a diesel-electric engine, which represents an improvement in the energy efficiency of the Hutchison Ports terminal and, together with the rest of electrical equipment, such as dock cranes and cranes in the storage area and in the rail terminal, “place it as one of the most environmentally sustainable facilities in the European environment”, BEST said.

Guillermo Belcastro, CEO of Hutchison Ports BEST, has indicated that the new investment “will result in an increase in the operational and storage capacity of the terminal and will contribute to the continuous improvement of the quality of service, both in maritime and land operations”.

 

Source: PortSEurope

Italy’s Ignazio Messina launches Italy-Tunisia ro-ro link

by & filed under Relation with Med & Neighbouring Countries.

Naples, Italy (PortSEurope) May 23, 2018 – Italian shipping company Ignazio Messina has launched a new ro-ro maritime link between Italy and Tunisia.

The port of Rades will be connected weekly with Genoa harbour, but also with Naples, where the company returns after five years of absence.

On this route, two ro-ro ships will be hired from the Genoa-based company. The date of arrival at the port of Rades will be Tuesday, with departure on Wednesday.

Source:PortSEurope