The International Chamber of Shipping has released a guide to help shipping companies prepare for implementation of the UN IMO global sulphur cap for ships’ fuel oil. The guide contains a comprehensive guidance on implementation planning, to help ensure compliance across the shipping industry with this significant change in regulation. The guide has been prepared for ships that will comply with the global sulphur cap immediately after 1 January 2020 using fuel oils with a sulphur content of 0.50% m/m or less. The guide can be accessed and downloaded here: http://www.ics-shipping.org/free-resources/2020-sulphur-compliance.
The first LNG fueled vessel in CMA CGM Group’s fleet was successfully bunkered with LNG last week at the Port of Rotterdam. In this first LNG fueling, Containership Nord received around 240 metric tons of LNG – an amount that can take her on a roundtrip from Rotterdam to St. Petersburg and back sailing through the Kiel canal twice. The vessel was delivered to CMA CGM subsidiary Containerships, by Wenchong Shipyard, Guangzhou, China, last month. It is the first of four LNG dual fueled containerships on order at the shipyard. The bunkering was carried out at lay bay berth in a ship-to-ship LNG bunkering operation from Shell’s bunker vessel, the Cardissa. In future, bunkering will be carried out at a normal operational berth simultaneously with loading and discharging operations.
Star Bulk Carriers, an Athens-based shipping company, intends to equip its entire fleet with exhaust gas cleaning systems before the January 1, 2020 global sulphur cap deadline. Star Bulk expects average cost per vessel to be below $2M USD. A month ago, Star Bulk successfully completed the first scrubber installation at sea.
Nigeria has ratified 40 conventions passed by the International Maritime Organization and International Labour Organisation covering Maritime Safety, Labour and Marine Environment. So far 19 of the conventions have been domesticated by way of regulation, adoption or incorporation under the Merchant Shipping Act of 2007. The Agency is currently working on ratifying an additional six IMO conventions before the end of 2019 to ensure that Nigeria as an IMO member state fulfills its treaty obligation.
The China Navigation Co (CNCo) is acquiring the dry bulk shipping division of Hamburg Süd, which was acquired by Maersk in November 2018. CNCo will acquire Rudolf A. Oetker (RAO), Furness Withy Chartering and the bulk activities in Alianca Navegacão (Aliabulk). CNCo will take over a fleet of 45 vessels in the handysize, supramax, ultramax, panamax and kamsarmax sectors. The move will expand its dry bulk fleet established in 2012 to which already consists of a fleet of over 100 owned and chartered handysize, and supramax/ ultramax vessels. Closing of the agreement is expected by the end of the first quarter of 2019, subject to regulatory approval. The ROA Tankers business unit will remain part of the Hamburg Sud Group.
Major container lines are already increasing the cost of service contracts for North America to account for the higher costs associated with the low-sulphur global fuel mandate. The true cost won’t be known until Q4, when carriers will begin actually using the low-sulphur fuel to run their ships. The IMO's global sulphur cap that takes effect on Jan. 1, 2020 is estimated to add about $150-200 per TEU to trans-Pacific carriers’ costs. However, given the volatility in fuel prices, there are a range of estimates of the cost of low-sulphur fuel for late 2019.
MSC has secured $439M USD in financing to fit 86 exhaust gas cleaning system to its fleet. The loan will be used to finance the manufacturing and installation of the scrubbers on board 86 of the company’s almost 200 container ships. The decision was made in anticipation the implementation of the International Maritime Organisation’s low sulphur cap regulations in 2020.
Following the fire that broke out on the Yantian Express on January 3rd, the vessel is being rerouted to Freeport, Bahamas for the recovery and assessment of the cargo. The fire started in a single container while the vessel was en route to Halifax and was brought under control in under a week. The ship sailing to the Bahamas under its own power, with a tug escort.
Cruiseships in New Zealand have been told to dim their lights at night after a flock of seabirds flew straight into a vessel last year. About 70 dazzled Buller's Shearwaters hit the Pacific Jewel and ended up stunned on the deck. Although crew tried to rescue them by delivering them to the Department of Conservation (DOC) in Auckland, 33 died and more were injured. DOC principal science advisor Graeme Taylor stated that bright lights on cruiseships posed a risk to seabirds flying at night in the Hauraki Gulf looking for food, and to young birds leaving breeding colonies for the first time. Vessels have been asked to close blinds or curtains on cabin windows and shield deck lights.
NYK is selling a 50% stake in NYK Cruises, its cruise subsidiary, to Anchor Ship Partners. The agreement includes the joint operation of the cruise business. This sale is inline with the medium-term management plan announced by NYK in March 2018, which focused on optimization of business portfolio, securing stable-freight-rate business, and increasing efficiency and creating new values. The deal is expected to be finalized by the end of March 2019.
The UK Government has set out its Maritime 2050 vision for the future of the UK’s maritime services sector. The strategy looks at developing technology, people, and infrastructure, to keep the maritime industry in the UK flourishing. Specifically, this includes establishing an innovation hub at a UK port by 2030, looking at ways to clean up emissions from the industry, and building on existing seafarer training. In addition, the Maritime and Coastguard Agency is looking at what is needed to ensure the safety and testing of autonomous ships to position the UK as the best place to trial this technology.
On 15 January the International Transport Workers’ Federation (ITF) and the World Maritime University (WMU) launched a flagship report entitled: “Transport 2040: Automation Technology Employment - the Future of Work”. The forward-looking assessment, produced by WMU, investigates how the global transport industry will change as a result of automation and advanced technologies, forecasting and analyzing trends and developments in the major transport sectors - seaborne, road, rail and aviation - to 2040 with an emphasis on the implications for jobs and employment for transport workers.
With an initial focus on shipments into and out of the US, Maersk Line will begin physically inspecting container contents as part of its efforts to stem the increasing numbers of fires that break out inside boxes during transit, as well as boxes in which cargo moves or is damaged due to not being lashed correctly. The checks will be undertaken by the National Cargo Bureau, with containers selected at random. The cost for such reworking containers that require changes in order to be compliant with regulations will be charged to the Shipper/Consignee (depending on direction of the container). A container that has already made sea transit may be selected for inspection upon its arrival in the US. The aim of the exercise is to collect data to develop “procedures that better ensure the accuracy of cargo descriptions provided to Maersk”, as well as improve the use of the IMO’s Code of Practice for Packing of Cargo Transport Units (CTU Code).
The Earth’s magnetic north pole is shifting at an unprecedented speed, forcing researchers to make early updates to World Magnetic Model that helps navigation by ships, planes and submarines in the Arctic. Magnetic north did not move significantly between 1900 and 1980, but it has accelerated in the last 40 years. It’s now moving at about 50 km (30 miles) a year, causing the US military to request an update to the model that was originally planned for 2020. The moving pole affected navigation, mainly in the Arctic Ocean north of Canada. NATO and the US and British militaries are among those using the magnetic model, as well as civilians.
The member companies of the Ocean Alliance have agreed to extend their cooperation through March 31, 2027. The companies include: CMA CGM, Evergreen Line, Cosco and Orient Overseas Container Line (OOCL). The Alliance formed in 2017 for and initial period of five years with an option for a five-year renewal, which they have opted to take only two years into the partnership. The OCEAN Alliance’s revised network taking effect in April will involve the deployment of approximately 330 containerships with a carrying capacity of around 3.8m TEU across 38 services. Ocean Alliance is the world’s largest operational agreement between shipping companies.
The International Chamber of Shipping has advised that China has introduced new regulations on data collection for energy consumption of ships effective January 1st, 2019 for all ships of 400 GT and above or powered by engines of 750kw. Hellenic Shipping News has published the relevant links to the regulations and reporting form.
In December 2018 Grieg Star and Maas Capital have established a joint venture for ownership of Supramax- and Ultramax vessels. The new company is named GriegMaas AS. The companies each have 50 percent ownership in the venture and aim to acquire high quality Supramax- and Ultramax bulkers. G2 Ocean will be responsible for the commercial management of the vessels, while Grieg Star will provide corporate- and ship management services to GriegMaas. As a first step, the two Grieg Star Supramax vessels, Star Athena and Star Eracle, was sold to GriegMaas early January 2019. Further expansion of the fleet is planned for 2019.