China’s largest container ship, COSCO Shipping Universe, was delivered by state-owned enterprise China State Shipbuilding Corporation (CSSC) to China COSCO Shipping Corporation Limited on Tuesday. The vessel, which has a capacity of 21,237 twenty-foot equivalent units (TEU), is 400 metres in length, 58.6 metres wide, with travel speed of 22 nautical miles per hour (25.3 miles per hour). Another five 21,000 TEU containerships, as well as a further four 22,000 TEU cargo ships, will be delivered to COSCO Shipping between the final few months of 2019 and the beginning of 2020. The vessel is set to sail along the 21st Century Maritime Silk Road, which links China’s coast to Europe and Africa through the South China Sea and the Indian Ocean. The ship will both become a flagship vessel for this route and help to implement China’s Belt and Road Initiative, which was proposed by Chinese President Xi Jinping in 2013 to promote China’s trade with around 70 countries in Asia, Europe and Africa.
Photo Credit: BCCL
On June 13 the SSL Kolkata, caught fire when an explosion occurred on the vessel’s deck while in en route from Krishnapattinam to Kolkata. According to the Indian Coast Guard there were no reports of an oil spill in the area and there were no any injuries to the ship’s 22 crewmembers, who were safely evacuated from the vessel.
Hong Kong's Orient Overseas Container Line (OOCL) has become the first carrier in the international transportation and logistics industry to receive the Gold Award at the 2017 BOCHK Corporate Environmental Leadership Awards. The shipping line was selected from among 600 participant as being the best at promoting environmental and low-carbon best practices in the manufacturing and services sectors in Hong Kong and the Pan Pearl River Delta region. The shipping line supports the UN Sustainable Development Goals, green investments on our assets, development of green IT solutions and GHG management and other programs to protect the marine ecosystems from invasive species and underwater noise.
The Maritime and Port Authority of Singapore (MPA) has awarded $6 million to FueLNG Pte Ltd and Pavilion Gas Pte Ltd for the building of two LNG bunker vessels, in a move that will help promote ship-to-ship LNG bunkering in Singapore. The vessels are slated for delivery in 2020, and will be amongst the first of their kind in Asia. This is a significant step towards cementing Singapore’s position as a leading LNG bunkering hub in the Far East, catering to large ocean-going LNG-fuelled vessels.
In the first quarter of 2018, mexican authorities have found that there has been a robbery of a train every 2.5 hours. The main products that have been taken from the cargo trains have been grain and flour, finished consumer products, auto parts and construction materials. Criminal organizations are believed to be sabotaging the remotely operated trains and causing derailments in order to provide an opportunity for the thieves. What the sabotaging of trains in Veracruz shows is the impact that criminal organizations can have on industry. They can have a debilitating effects on companies and their operations. Grupo Mexico Transporte, the company whose trains were involved in the Orizaba involving 39 cars and four locomotives, said it lost 312 million pesos (CAD $19.8M) from the derailment and 6 previous derailments that occurred in April and May 2018, with 11 million (CAD $700K) of that money going to cover the loss of cargo and 171 million (CAD $10.8M) going to repair the tracks and trains.
On June 1, 2018 the China Customs will start enforcing its Advance Manifest (CCAM) rule as outlined in Order No. 56 (2017). The Order requires advanced submission of manifests 24 hours prior to loading of all cargo, including transshipments, to or from Chinese ports. The manifest submission must reflect accurately all goods under the bills of lading. Incomplete or inaccurate submissions will lead to delays.
The European Maritime Safety Agency (EMSA) has posted its Sulphur Inspection Guidance to provide guidance for a harmonized approach to the inspection of ships, ascertaining their compliance, identifying non-compliances and applying control procedures for the enforcement of Directive (EU) 2016/802 (codification of Council Directive 1999/32/EC), as regards the sulphur content of marine fuels. The provisions of the Directive apply to all ships of all flags, including domestic shipping and those whose journey began outside the EU.
The proposed $400 million purchase by Wilhelmsen Maritime Services (WMS) of Drew Marine’s technical solutions, fire, safety and rescue business has been rejected by Singapore's competition watchdog over concerns that the acquisition would lessen competition in the supply of products in Singapore, and may lead to price increases, deterioration in quality of products and/or service levels. In September, the UK Competition and Markets Authority gave the go-ahead to the deal after its review Phase 1 of the proposed deal, however the US Federal Trade Commission issued an administrative complaint in February and is seeking a temporary restraining order and a preliminary injunction to prevent the parties from consummating the merger, and to maintain the status quo pending an administrative hearing in July.
The International Maritime Organization approved the Bering Strait and Bering Sea ship routing measures proposed by the United States and Russian Federation. Taking effect Dec. 1, 2018, the six two-way routes and six precautionary areas are the first internationally recognized ship routing measures the IMO has approved for polar waters. Use of the proposed routes is intended to be voluntary for all ships of 400 gross tonnage and above. In November 2017, the US and Russia proposed a system of two-way routes for vessels to follow in the Bering Strait and Bering Sea in response to increased shipping traffic there.
The 99th session of IMO's Maritime Safety Committee (MSC) concluded meeting this week with steps towards the safe, secure and environmentally sound Maritime Autonomous Surface Ships (MASS) operations. MSC 99 endorsed a framework for a regulatory scoping exercise, as work in progress, including preliminary definitions of MASS and degrees of autonomy, as well as a methodology for conducting the exercise and a plan of work. A correspondence group on MASS was established to test the framework of the regulatory scoping exercise agreed at the session and, in particular, the methodology, and will report back to its next session, MSC 100 (3-7 December 2018).
IMO in 2017 adopted Strategic Directions for the Organization, including one on the integration of new and advancing technologies in the regulatory framework - balancing the benefits derived from new and advancing technologies against safety and security concerns, the impact on the environment and on international trade facilitation, the potential costs to the industry, and their impact on personnel, both onboard and ashore.
Closer to home, the Master Mariners of Canada has shared presentations from its Maritimes Division's symposium on Autonomous and Remote Control Ships held on April 25th.
In response to a 2016 study by the Seafarers International Research Centre that showed an increase in psychiatric disorders among those serving at sea and a deterioration in other aspects of seafarers’ mental health, shipping organisations have stepped up their approach to the problem. Marine insurer the American Club last year urged employers to take the mental health of their crew more seriously and now the UK Chamber has released its mental welfare policy guidelines to assist shipping companies in drawing up policies on mental wellbeing. The aim is to create awareness among management of the importance of good mental health among the seafaring workforce, and to support companies in fostering a culture that is conducive to improving the mental wellbeing of seafarers. The Chamber and the unions recommend that shipping companies draw up, agree and adopt policies on mental health awareness that are in line with the guidelines.
In an effort to end the reporting burden for ships, the European Commission has adopted a proposal from 13 member states to increase the harmonization of ship reporting requirements when calling at ports within the EU. The initiative led by Denmark plans to reduce the administrative burden on the industry by establishing a common IT interface and limiting the reporting of the same information and sharing data between member states. This has been part of our advocacy. Canada needs to reduce this administrative burden to stay competitive and implementation would be much easier.
Star Bulk Carriers has purchased 34 ships in less than one month and now has the biggest fleet of dry bulk ships among the New York-listed shipping companies. While the latest $328M transaction is yet to be approved by shareholders, the acquisition of 15 operating vessels from Songa Bulk ASA will bring Star Bulk's total fleet to 108 vessels with an aggregate cargo-carrying capacity of 12.26 million DWT. Star Bulk is also acquiring three newcastlemax newbuilds from Oceanbulk Container Carriers (OCC), a company owned by Oaktree Capital Management. “The combined Songa and OCC fleet is on average two years younger than our existing fleet with a similar fleet composition. Star Bulk will continue to be a consolidator in the dry bulk industry and expect that the acquisitions will provide Star Bulk with further synergies and economies of scale,” said Star Bulk CEO Petro Pappas.
During the 51st Committee meeting of the Paris Memorandum of Understanding on Port State Control (Paris MoU) in Cascais, Portugal, from the 7-11 May 2018, it was agreed that the signatories would start an information campaign starting January 2019 to encourage timely compliance of the new maximum limits for sulphur in ships fuel oil, entering into force on 1 January 2020 through the issuance of issuing warning letters. A new concentrated inspection campaign (CIC) will be also be carried out jointly with the Tokyo MOU from September to November 2018.
Also note, high importance was given to the report of the Concentrated Inspection Campaign (CIC) on Safety of Navigation, including ECDIS1. The CIC was carried out from September to November 2017. The general conclusion was that the results show a good overall implementation of the requirements on board the ships inspected, although voyage planning remains an area of concern.
The Maersk Honam is scheduled to berth at the Port of Jebel Ali on May 22nd to finally begin the discharge of the intact containers nearly three months after the giant containership was hit by a major fire in the Indian Ocean. Operations are expected to take 4 to 7 days and the vessel salvor has asked for a salvage security in the amount of 42.5% of the cargo value plus an additional 11.5% required as a general average deposit. This means a shipper with goods worth $100,000 in a container faces a combined general average and salvage security bond bill of $54,000 to have the cargo released. Also MSC, Maersk Line's 2M partner, is requesting an amount of $750 per TEU to cover all additional transhipment, storage and on-carriage costs.
The CSL Group has entered into an agreement with SMT Shipping to acquire 50% of Eureka Shipping Ltd., SMT’s pneumatic cement vessel business. The new joint venture will allow Eureka and CSL to combine expertise, resources and innovative technologies to expand services to customers in the seaborne cement powder and fly ash transportation markets around the world. CSL’s Australian cement shipping business is not included in the joint venture. Eureka shipping operates a fleet of four cement carriers.
This week Teekay celebrated its 45th anniversary – 45 years of bringing energy to the world. Teekay has come a long way since our founder Torben Karlshoej established the company in New York in 1976 and in 1991 moved it to Vancouver. With more than 8000 employees worldwide and large and diverse fleet, the company takes the opportunity to reflect on their history, the man that started it all and the legacy he left behind at: http://teekay.com/blog/2018/05/08/45-years-strong/.