It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)
Thursday, February 16, 2023
MSC and DB Schenker Launch Model Biofuel Program to Reduce Emissions
MSC Mediterranean Shipping Company and a freight forwarder have struck an innovative deal that calls for one of the largest uses of biofuel addressing the growing concerns of shippers to reduce their total carbon footprint. Pressure has been growing on large shippers to address carbon emissions across their supply chains including elements such as shipping which so far has been largely beyond their control. Under the agreement, MSC is creating a carbon reduction program broadly available to the shipping customers of DB Schenker that results in an immediate reduction in emissions. It also provides a model for others to follow.
Individual shipping lines have been testing biofuels for years and some have even offered the first offset programs for individual customers. Through the agreement with DB Schenker, MSC is providing a much wider solution for shippers that addresses concerns and avoids issues such as disputes between shipowners and charters over the use of biofuel. The program also seeks to address concerns over the origins of the biofuel.
“We are doing this because we firmly believe it is the right thing to do and are therefore paying for biofuel purchases in advance,” said Thorsten Meincke, Global Board Member for Air & Ocean Freight at DB Schenker. "One thing is certain, the more customers demand climate neutrality throughout supply chains, the faster we achieve clean container ocean freight."
DB Schenker has committed to the purchase of 12,000 metric tons of a second-generation biofuel to be used by MSC’s containerships. The biofuel will be blended between 20 and 30 percent, resulting in approximately 50,000 metric tons of blended biofuel to be used across MSC’s fleet. The carrier estimates that it equates to the shipment of around 30,000 TEUs with net-zero CO2 emissions, depending on how the fuel is used during navigation.
The amount of biofuel purchased is enough to save 35,000 metric tons of CO2 equivalents (CO2e) along the entire production chain (well-to-wake) in the market. That will be passed along to DB Schenker and its customers for all of its consolidated cargo, less-than-container load (LCL), full-container-load (FCL), and refrigerated containers, carried by MSC. The difference between this program and other carbon offsets is that those programs focus on future emission reductions outside the shipping industry whereas the purchase and blending of the biofuel will result in immediate and direct reductions in emissions from shipping.
“Decarbonizing ocean freight cannot be achieved by a single player and requires collaboration between shipping and logistics companies and their customers,” said Caroline Becquart, Senior Vice President of MSC. “MSC Biofuel Solution is our first certified carbon insetting program that reduces emissions in our customers’ supply chains, accelerating the energy transition by creating demand for net-zero-carbon shipping and delivering direct CO2 savings.”
MSC has been actively testing and using biofuel as a drop-in blended into fuels for several years and points out that the biofuel is not only well-regarded as a decarbonization transition fuel but can be used for regular ocean freight operations without adjusting a ship’s infrastructure or supply chain.
Environmentalists have been critical of some of the early biofuel efforts pointing out that the waste cooking oil used in the production can be high in palm oil which is associated with deforestation. MSC highlights that for this program it will be using a second-generation biofuel, also known as advanced biofuel. It ensures at least 80 percent reduction in CO2e emissions (well-to-wake). The oil is also guaranteed to be palm oil free, including no palm oil waste and no indirect land use change. The oil is devised from used cooking oil and becoming increasingly popular in the shipping industry as a near-term opportunity to improve emissions.
UK Awards $73M to Develop and Commercalize Green Maritime Technology
In an effort to spur the development of commercial green maritime technologies, the UK government announced the awarding of an additional $73 million in grants going to 10 projects as part of the government’s ongoing Clean Maritime Demonstration Competition (CMDC). The projects selected range from a hydrofoil concept for workboats and ferries to a new power train, battery technologies, and wind-assisted propulsion.
The government launched the competition program awarding prior tranches in March 2021 and May 2022. A total of 55 projects across the UK were selected in the first group receiving approximately $28 million to deliver feasibility studies and technology trials in clean maritime solutions. The second trench awarded a further $18 million to a further 31 projects. During the two-year investment period, companies in each of the tranches are required to demonstrate that their concepts will work in the real world using the funding to move the technologies into demonstrations toward commercialization.
“The funding we’re awarded today will help to bring emission-free concepts to life and fuel innovation,” said Mark Harper, the UK’s Transport Secretary in announcing the third phase which will run through March 2025. He highlighted that the focus of the latest awards included hydrogen, ammonia, electric, and wind power.
To kick off the latest round of awards, Harper visited Artemis Technologies, one of the recipients of the awards. Artemis had also received funding in the prior rounds of the project and reports it will receive a total of approximately $7.2 million in funding. Based in Belfast, Artemis is using technologies adapted from the worlds of high-performance yacht racing, motorsports, and aerospace, to develop vessels that effectively “fly” above the water surface. The vessels produce zero emissions when foiling and offer energy savings of up to 90 percent resulting in significantly lower operating and maintenance costs.
Artemis has developed designs for crew transfer and workboats as well as larger ferries. The first CMDC-backed project will see Artemis Technologies team with international partners to develop, test, and deploy a 40-foot, 100 percent electric crew transfer vessel capable of transiting technicians safely from shore to turbine in seas up to five feet. The second project in this program will focus on the development and demonstration of a high-performance multipurpose eFoiler Platform system, suitable for operations in the luxury leisure or water taxi markets.
Artemis Technologies will test and deploy its electric crew transfer vessel (Artemis Technologies)
Another project being highlighted as a recipient in the latest round of awards is a research project led by AceOn, a UK battery specialist. They are receiving approximately $5.5 million for a project that launches in April to develop ground-breaking ways of converting crew transfer vessels from diesel to battery and hydrogen power. They will be looking at retrofits to convert existing vessels used for wind farm crews to sustainable fuels. A test vessel, the Princess Royal, a catamaran that is used to transport technicians to the EDF offshore wind farm in the North Sea, will be used to demonstrate the approaches to sustainable fuels.
Collins River Enterprises is also leading a program to build and test full electric ferries. The research will build on a project funded in the first round of the program which seeks to have electric ferries running on the Thames. Wing Tek working with the University of Bristol is developing Wings for Ships, a project to develop and demonstrate two full-sized prototypes of wind-assisted ships with high-tech sails. Another wind propulsion award goes to Windship Technology which is working on zero-emission bulkers and tankers.
Windship Technology is one of the wind propulsion projects receiving funding (Windship Technology)
Seabound Carbon and Lomar Shipping are receiving an award for their project working on carbon capture aboard ships. Another project, the Electric Seaway explores the use of electric power for ships including the development of an onshore charging network. The CHAMP 2 (Clean Hybrid Alternative Marine Powertrain) project seeks to demonstrate the benefits that can be realized through clean marine propulsion systems.
In addition to these awards, the UK government at the beginning of February announced an additional $100 million in future grants. They are providing $92.5 million in funding for a competition to identify projects which will have a long-term impact on reducing emissions. They are also funding a new clean maritime research hub.
Transport Secretary Harper highlighted that the awards are contributing to the UK economy and creating new jobs. At the same time, they will continue to the UK’s goal to reach net zero emissions by 2050.
Place of Refuge: Lessons from the MT Prestige Disaster
A 'port of refuge' is a maritime safety principle as old as seafaring itself. Without it, a marine casualty can turn into a much larger problem, as illustrated by the notorious case of the tanker Prestige.
On November 13, 2002, the Prestige was navigating the Bay of Biscay carrying 77,000 tonnes of heavy fuel oil. She would soon become the source of Spain's worst ever ecological disaster.
Prestige encountered a powerful winter storm off Spain’s Costa da Morte (the 'Coast of Death'). Captain Apostolos Mangouras reported a loud bang from the starboard side, and the ship began to take on water. Her engines shut down, and Capt Mangouras called for help from the Spanish Coast Guard. The crew were evacuated by helicopter, and the ship drifted within 4 miles of the Spanish coast, already leaking oil.
A Spanish salvage master, Captain Serafin Diaz, was despatched to the ship. Captain Diaz saw a gaping 15 meter hole on the starboard side. He argued that Prestige should be towed into a Spanish port where the leaking oil might be confined, but the Spanish Navy denied her entry. The French government pressured Prestige to change her course and head south into Portuguese waters, in order to avoid endangering France's southern coast.
Fearing for its own shore, the Portuguese Navy intercepted Prestige and prevented her from approaching further. The decision to tow the damaged tanker offshore, rather than escort to a sheltered anchorage was later described as a criminal act and the reason why such a large area was polluted.
The governments of France, Spain and Portugal all refused Prestige entry in her hour of need. After several days under towage, she broke up and sank 160 miles from the Spanish coast. She spilled over 64,000 cubic meters (17 million US gallons) of oil into the sea. The captain of the Prestige was taken into custody, accused of not cooperating with marine salvage crews and of harming the environment
When a ship has suffered an incident, the best way of preventing damage or pollution from its progressive deterioration is to transfer its cargo and bunkers, and then to repair the casualty. Such an operation is best carried out in a place of refuge. However, to bring such a ship into a place of refuge near a coast may endanger the coastal State, both economically and environmentally, and local authorities and populations may strongly object to the operation.
Granting access to a place of refuge is ultimately a political decision, which must be taken on the merits of each case. Consideration must be given to balancing the interests of the affected ship with those of the environment and the local people.
Ships shouldn’t have carte blanche rights of entry to ports when suffering an accident. Unscrupulous shipowners could rely on this option as an excuse for lackluster maintenance, knowing their vessel could seek governmental help at any time. Nonetheless, greater principles of cooperation should be found between nations to assist ships in distress. As the Prestige incident proved, a failure to do so could have devastating environmental consequences for everyone involved.
Cameron Livingstone MNI is the secretary of the South Eastern Australia Branch of The Nautical Institute, which covers the region of New South Wales and the Australian Capital Territory. The Institute's aim is to promote professionalism, best practice and safety throughout the maritime industry and to represent the interests of its members.
This article appears courtesy of the author and may be found in its original form here.
The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.
Antarctic Seasonal Sea Ice Cover Hits Record Low
Antarctic sea ice cover has hit a record low level, according to Germany's Alfred Wegener Institute, and the melt season is not yet over. As of February 8, Antarctic sea ice cover stood at 850,000 square miles, the lowest extent in forty years of recordkeeping.
"Since the sea ice melting in the Antarctic will most likely continue in the second half of the month, we can't say yet when the record low will be reached or how much more sea ice will melt between now and then," said Prof. Christian Haas of the Alfred Wegener Institute's Helmholtz Centre. "The rapid decline in sea ice over the past six years is quite remarkable, since the ice cover hardly changed at all in the thirty-five years before."
Sea ice melt-off does not not affect sea level, since the ice is already afloat, but the seasonal ice normally provides a protective buffer for the edges of Antarctica's massive glaciers. Its absence exposes the seaward face of glaciers and ice shelves to erosion from wave action, accelerating calving.
The melt-off is most pronounced along West Antarctica's coastline, where the Bellingshausen Sea is almost ice-free for the first time in memory. The lack of sea ice has been convenient for the German research vessel Polarstern and her crew, which have completed their latest Antarctic cruise. The conditions bore little resemblance to Ernest Shackleton's experience of the Antarctic summer season, according to the team.
"I have never seen such an extreme, ice-free situation here before. The continental shelf, an area the size of Germany, is now completely ice-free," said researcher Prof. Karsten Gohl, who has studied the area since 1994.
This year is exceptional, but it is part of a recent trend, according to the Institute. In the last eight years, the average ice extent in January has been below the mean level. On a longer time scale, Antarctic ice cover has declined at about 2.6 percent per decade.
The ultra-low ice extent this year could be caused by higher-than-average air temperatures off the west and east coasts of the continent, according to the institute's researchers. A cyclical, wind-driven upwelling of deep water from the Southern Ocean may also be causing sea-ice retreat - and may also be accelerating the melting of Antarctic ice shelves, which hold back the continent's massive glaciers.
Denmark Awards First CO2 Storage Licenses Seeking to Build Industry
Denmark selected projects from Total Energies, INEOS E&P, and Wintershall DEA to receive the country’s first full-scale CO2 storage permits for projects in the North Sea. The recommendation from the Ministry of Climate, Energy and Utilities marked the conclusion of the first of an annual tender for licenses for the exploration of full-scale CO2 storage on the Danish continental shelf as the country looks to the development of a new industry that will contribute to meetings its goals to reduce emissions.
The licenses pave the way forward for Denmark as an important puzzle piece in realizing the growing demand for CO2 storage capacity in Northern Europe the agency said in announcing that it had completed evaluating the applications. The Danish Energy Agency (DEA) reported it received two applications in the first round of licenses for CO2 storage in the Danish North Sea and that they had both met the requirements evaluated the technical and financial capacity as well as the technical content of the work programs presented by the companies in their applications. The final awarding of two licenses to TotalEnergies and one to the partnership between INEOS and Wintershall DEA will take place after a report is presented to the Climate, Energy and Utilities Committee of the Danish Parliament.
“Granting the first exclusive permits for full-scale CO2 storage in the North Sea is an important step into the future. CO2 capture and storage is an important element in the green transition. Today’s licenses are the result of effective implementation of the first Danish political agreements on CCS," says Kristoffer Böttzauw, DEA’s director.
Denmark believes that there are strong opportunities for this developing industry. The Geological Survey of Denmark and Greenland (GEUS) has previously demonstrated that the Danish subsurface is particularly suitable for CO2 storage, both offshore and onshore, thus enabling the opportunity for Denmark to serve as a commercial hub for CO2 storage from all of Europe. They estimated that the Danish subsurface theoretically can store up to 22 billion tons of CO2. They said that would be equivalent to between 500 and 1000 years of total Danish emissions at current levels.
All the licenses contain the necessary geological structures that are suited to serve as permanent CO2 storage locations in the future. Under Danish regulations, permissions can initially be granted for exploration for up to six years, during which the exploring company has exclusive rights to the area. If a suitable location for CO2 storage is found, the permit can be extended for up to 30 years for storage operations. The specific storage projects must be approved by the DEA.
Denmark highlights that full-scale storage of CO2 offshore is a known technology that has been in operation in Norway since 1996. In Denmark, the technology will be tested in connection with Project Greensand, which is a pilot and demonstration project by INEOS E&P funded by the EUDP. Test licenses have previously been granted with the first injection programs being conducted in the first months of this year.
By 2025, INEOS and Wintershall expect that they can commence full operations at the Greensand project. Initially, they expect to inject up to 1.5 million tons of CO2 annually and by 2030 increase to an annual capacity of eight million tons. TotalEnergies' Bifrost project is expected to be operating by 2027 with an initial capacity of up to three million tons and expanding by 2030 to inject up to five million by 2030.
Nordsøfonden, the Danish national oil and gas company, will represent the interest of the state and participate with a share of 20 percent in each of the new licenses.
BOEM Proposes Archaeological Rules as Criticism of Offshore Wind Grows
Faced with a broad range of criticisms over the development of offshore wind farms, the Department of Interior’s Bureau of Ocean Energy Management (BOEM) is proposing steps that it says are designed to ensure that wind farms cohabitate with other ocean users and reduce potential harm in the ocean environment. The latest proposals address marine archaeological resources following steps at the end of 2022 to work with National Oceanic and Atmospheric Administration Fisheries division.
To better protect shipwrecks and other cultural resources on the seabed from harm due to offshore energy activities, BOEM is proposing regulatory changes to its marine archaeology reporting requirements for activities on the Outer Continental Shelf. A notice of proposed rulemaking and request for comment will publish in the Federal Register on February 15, for a 60-day comment period ending on April 17, 2023.
BOEM says that after evaluating over 40 years of empirical evidence collected by and for the oil and gas industry, academic institutions, and state and federal agencies, it has determined that previously undiscovered archaeological resources may be present in any part of the OCS, regardless of the lack of any historical or predictive modeling evidence.
Currently, lessees and operators are only required to submit a marine archaeological report for oil and gas exploration and development plans if they are surveying an area that a BOEM regional director believes may contain an archaeological resource. The proposed changes however would require archaeological reports for all areas where a lessee or operator is proposing oil and gas exploration and development activities on the OCS. The proposed changes will also update the procedure for continuing operations when the archaeological report suggests that a resource may be present and what to do if an unanticipated archaeological resource is discovered during operations.
“These changes are necessary to ensure that lessees, operators, and BOEM have the information necessary to proactively identify marine archaeological resources,” said Dr. James Kendall, Gulf of Mexico Regional Director. “By improving our reporting requirements, we can increase the likelihood of identifying these important resources before they are inadvertently damaged by an OCS operator and help ensure compliance with the National Historic Preservation Act.”
In December 2022, NOAA Fisheries and BOEM shared the final Federal Survey Mitigation Strategy for the Northeast and Mid-Atlantic with plans to adapt the strategy for other regions as they seek to address anticipated impacts of offshore wind energy development on NOAA Fisheries’ scientific surveys. The joint strategy aims to avoid impact or interference with NOAA Fisheries’ surveys such as precluding access to sampling areas, impacting statistical design, altering habitats, and interfering with survey operations due to offshore wind development. NOAA Fisheries’ surveys were recognized by BOEM as essential for collecting the data necessary to inform the sustainable management of our nation’s fisheries, recovery of protected resources, conservation of habitats and ecosystems, and understanding the impacts of climate change.
These efforts come as BOEM is addressing a growing concern from environmentalists and others over a spate of recent whale deaths along the U.S. East Coast. At the end of January, 12 New Jersey mayors and other elected officials joined with environmentalists and citizens calling for a moratorium on all offshore wind activity, and today elected officials in Ocean City, Maryland joined in also calling for delaying permitting and construction for all offshore wind farms.
The groups are mostly citing the sonar surveys conducted in mapping out sites for the wind farms saying that they believe the signals are somehow disorienting whales causing them to beach. NOAA Fisheries and other scientists are however saying that they believe the signals are too weak and low frequency to harm the whales. NOAA cites a prolonged increase in whale deaths noting that its surveys show that at least 40 percent of the necropsies show that the whales have been injured with ship encounters, fishing nets, or other similar activities. Surveys in other areas such as the UK which has a large installed base of wind farms have also failed to find any direct links between the development and operation of the sites with whale deaths.
The American Clean Power Association, a wind energy developer trade group, has also issued statements criticizing efforts promoting unfounded claims linking whale strandings to wind power survey work.
BOEM is attempting to be responsive to the concerns being raised about the development project. At the same time, they are working to move forward aggressively with the development process citing impacts associated with climate change and the Biden Administration’s declared goal to significantly increase the offshore wind energy to 30 gigawatts of fixed bottom turbines by 2030 and an additional 15 gigawatts of floating offshore wind energy by 2035. Many states, including New Jersey and Maryland, also have ambitious goals for offshore wind energy as part of their renewable energy policies.
BOEM Releases Environmental Plan for Next Offshore Wind Farm
The Bureau of Ocean Energy Management (BOEM) is moving forward with the next key step for the development of one of Massachusetts’ offshore wind farms even as the project has sought to renegotiate the key part of its plan. The federal government continues to push forward on its efforts for renewable energy from offshore wind keeping its focus on deploying 30 gigawatts of offshore wind energy capacity by 2030.
“BOEM continues to make significant progress toward achieving this Administration’s vision for a clean energy future – one that will combat climate change, create jobs to support families, and?ensure economic opportunities are accessible to all communities,” said BOEM Director Elizabeth Klein. “In our review of offshore wind projects, we are committed to working collaboratively with our tribal, state, and local government partners as well as using the best available science to avoid or minimize conflict with existing users and marine life.”
Today, February 13, BOEM announced the availability of the draft Environmental Impact Statement (EIS) for the proposed SouthCoast Wind (formerly Mayflower Wind) energy project offshore Massachusetts. It begins a process of a 45-day comment period as part of the review by BOEM as the project moves into the final stage of permitting and approvals.
SouthCoast Wind Energy submitted a construction and operation plan (COP) for its proposed wind energy facility and associated export cables on the Outer Continental Shelf offshore Massachusetts. The project, which is being developed in a joint partnership between Shell New Energies and the Ocean Winds joint venture between EDP Renewables and ENGIE, is one of the more advanced in the process. BOEM highlights that it is one of seven projects that is currently in the draft EIS stage of review.
The project covers approximately 127,388 acres in a position approximately 26 nautical miles south of Martha’s Vineyard and 20 nautical miles south of Nantucket. It calls for up to 147 wind turbines and two export cable corridors. One corridor would be used by multiple export cables making landfall in Falmouth, Massachusetts, and the other corridor would be used by multiple export cables making landfall in Somerset, Massachusetts. If approved, this proposed 2,400-megawatt project could provide power for more than 800,000 homes.
Formerly known as Mayflower Wind, the project is one of two that has been calling for Massachusetts to permit it to renegotiate its power purchase agreements. They asked regulators to delay approving the power agreements saying that inflation and disruptions in the supply chain had changed the economics of the projects. Massachusetts however has also been pressing forward with the regulators approving the power agreements at the end of 2022.
“We have reached an important milestone in our offshore wind energy project,” SouthCoast Wind wrote in a social media posting acknowledging BOEM’s released the draft Environmental Impact Statement for public review and comment. BOEM will use the findings of the final EIS to inform its decision on whether to approve the SouthCoast Wind COP, and if so, which mitigation measures to require.
The project announced the name change as of the first of February saying it better reflects the company’s commitment to the people, businesses, and communities of the SouthCoast, which would be served by the project. It is one of three Ocean Winds has in the United States. Last year, they also won rights to a lease in the New York Bight and the Morro Bay area offshore California in the auctions conducted by BOEM.
Sudan's Leader Agrees to Host Russian Naval Base on Red Sea
Parliamentary approval is required, and Sudan will need to form a civilian parliament first
Sudan to Finalize Review of Russia’s Red Sea Naval Base Deal
Following the visit of Russian foreign minister Sergey Lavrov in Sudan last week, Moscow and Khartoum have finalized the terms of an agreement on establishing a logistical center for the Russian Navy in Sudan. The news was confirmed during a joint press conference between Lavrov and his Sudanese counterpart Ali al-Sadiq Ali.
Lavrov had earlier met with Sudan’s ruling military leaders Abdel Fattah al-Burhan, the de facto head of state of Sudan, and his deputy Mohamed Hamdan Dagalo. The meeting agenda was reportedly on Russia providing Sudan with weapons in return for a Red Sea Navy base. Lavrov last visited Sudan in 2014 and this was his second visit to Africa this year.
Lavrov vowed to support Sudan’s efforts in lifting the UN arms embargo on the Darfur region. He also pledged further economic cooperation Russia and Sudan. The Kremlin-linked Wagner Group is said to have privileged access to Sudan’s lucrative gold mining industry.
Russia’s naval base deal in Sudan has been in the works since 2019, when the two countries signed an agreement granting the Russian Navy access to Sudanese ports. However, the agreement was made public in 2021, with Sudan’s Chief General of Staff, Gen. Mohammed Othman al-Hussein telling local media that Khartoum would review the agreement.
“This deal was signed under the former National Salvation Government and we are negotiating a possible review, to ensure that our interests and profits are taken into account,” Gen. Othman said at the time.
The deal was derailed after a military coup in October 2021. In addition, Sudan has been without a parliament since 2019 after a popular uprising led to military overthrow of longtime autocrat Omar al Bashir. Parliamentary approval is needed to ratify the naval base agreement, Sudanese military leaders noted.
The deal would allow Russia to set up a naval base with up to 300 Russian troops and up to four navy ships - including nuclear-powered ones - in the strategic Port of Sudan.
The base would ensure a permanent presence of the Russian navy in the Red Sea and the Indian Ocean, and it would spare its ships long voyages to reach the area. The new base would expand on the power-projection support provided by the Russian naval facility in Tartus, Syria.
Port and Truck Driver Strikes Paralyzes Finland’s Foreign Trade
Workers at Finland’s main ports as well as truck drivers walked off the job early on Wednesday, February 15, after their union reported that contract talks had broken down. The strike is expected to paralyze Finland’s foreign trade and add further pressure to an economy that has already been impacted by the war in Ukraine.
The Finnish Transport Workers Union (Auto-ja Kjetusala Työntekijäliitto or AKT) said the issues centered around wages as well as some issues related to working conditions. Like their counterparts in 2022 at Felixstowe and Liverpool in the UK and Germany’s ports, the Finnish stevedores are citing the cost of living and inflation saying that wages needed to keep pace. In December, Finland’s inflation rate stood at just over nine percent.
The European Labor Authority mediator had stepped into the negotiations in hopes of finding terms for a new collective bargaining agreement. AKT said after walking out on the negotiations that the latest offers were insufficient in terms of both pay rises and other terms of employment.
The union, which represents approximately 1,800 stevedores, rejected the proposals on February 14 calling for workers to begin their strike at 6 a.m. Wednesday morning. The union said the strike will run indefinitely until terms can be reached with no new talks scheduled before Friday.
A few hours before the dockworkers began their strike, truck drivers that move the cargo, as well as petroleum products, also began their strike. With the union representing nearly all of the dockworkers plus the truck divers stopping work, there were widespread forecasts that Finland’s foreign trade would effectively be halted.
Maersk issued a statement warning customers that all vessel operations in Finnish ports as well as gate movements and handling of containers within the terminals was now suspended.
The Finnish Port Operators Association is reporting that each day of the strike will impact more than $300 million in foreign trade. According to their calculations, 90 percent of the country’s trade moves through the ports. Ten major ports, including Helsinki, Hamina-Kotka, Hanko, Rauma, and Turku, were all affected by the strike.
The Port of Helsinki had recently warned that due to a general weakening of economic outlooks, high inflation, the energy crisis, and the reduction of consumer purchasing power, it expected that cargo transport would slow down slightly in 2023 from the records achieved in 2022. Last year, the port had its highest volumes ever, topping 2018 records, with a total of 15.2 million tons of goods transported via the ports. More than 700,000 trucks and trailers moved the cargo with the ports of Helsinki reporting in total they handled a total of 492,000 TEUs. Passenger traffic more than doubled in 2022 as part of the rebound after the pandemic travel restrictions with the port highlighting strong volumes on the main routes to Estonia, Sweden, and Germany.
Unite Plans Wave of Strikes in UK North Sea Offshore Sector
UK union Unite is organizing a new wave of industrial actions affecting offshore oil and gas service providers, and the disruption could affect dozens of platforms in the UK North Sea in the months to come. Oil and gas companies have seen record profits over the past year, motivating front-line offshore workers to claim a share.
Nearly 100 drilling workers employed by Odfjell on BP's Clair and Clair Ridge platforms have already agreed to go on strike if needed, according to Unite. The action will begin as a series of 24-hour stoppages, an overtime ban, and an end to pre- and post-tour handover briefings during crew changes.
"The oil and gas industry is awash with record profits with BP recording profits of [$28 billion] for 2022, more than double that for 2021," said Unite general secretary Sharon Graham in a statement. "But the workforce are seeing none of this coming into their pay packets. Unite will support our members every step of the way in the fight for better jobs, pay and conditions."
Odfjell is not the first offshore services provider facing a strike organized by Unite, and it will likely not be the last. The union announced Friday that it is preparing to ballot another 300 workers at Stork Technical Services, which conducts maintenance and lifecycle services at 30 platforms in the UK North Sea. If enough union members vote to strike, the action would affect maintenance for EnQuest, Repsol, Shell and Total, among others. Unite warned that a maintenance worker strike could potentially lead to installation shutdowns if a backlog of work on safety-critical equipment builds up. If union members vote to strike, action would begin in April.
On Saturday, Unite said that it would also be balloting 700 members who work for German offshore engineering company Bilfinger. The balloting will occur on the same timeframe, with strike action beginning in April. About 40 platforms operated by half a dozen oil companies would be affected. Operators impacted by the potential strike could include BP, CNRI, Ithaca, Harbour, Repsol and Taqa.
Bilfinger and other UK North Sea contractors were hit by a wave of unofficial, spontaneous wage strikes at offshore platforms last year. Britain has been particularly affected by inflation, and workers in the offshore sector (and elsewhere) have sought cost of living increases to keep up.
"The industry talks about a Just Transition to net zero but unless there are decent terms and conditions in the offshore sector there won’t be a workforce left to transition," said Vic Fraser, Unite industrial officer. "No one wants to go on strike but it is clear to our members that offshore operators, who are the real paymasters in the sector, are not listening to the current industrial unrest despite lodging record profits. There is already a skills shortage in the offshore sector demonstrated by significant maintenance backlogs."
NGO Files Complaint Against UK Insurers Over "Dark" Fishing Fleet
A London-based NGO has flagged three insurers for allegedly providing coverage to fishing vessels that frequently operate with AIS turned off, a common sign of illegal, unreported and unregulated fishing (IUU fishing).
In a complaint filed with the UK Financial Conduct Authority and Bank of England's Prudential Regulation Authority, the Blue Marine Foundation claims that three insurers have provided cover for nearly four dozen EU-flagged fishing vessels that regularly operate "dark" in the Indian Ocean.
The filings draw on a research study that Blue Marine commissioned from consultancy OceanMind in 2022, which looked at the fishing patterns of French- and Spanish-flagged tuna purse seiners in the Western Indian Ocean. OceanMind found that "comparisons of AIS transmission with reported areas of catch-effort . . . suggest that significant fishing activity has been undertaken by these flag-states without associated use of AIS." The patterns of AIS switch-off occurred in and around the EEZs of multiple littoral states, and the activity did not significantly correlate with the Somali piracy high risk area, where vessels of all kinds disable their AIS for safety reasons.
AIS switch-off is lawful for rare safety reasons, as above, but IMO guidelines mandate its use under normal operating conditions. Spain and France both require vessels flying their flags to broadcast AIS. However, the fleets under study operated "dark" for the majority of the time, and one particular vessel went without AIS continuously for nine months. Since switch-off may be associated with IUU fishing, this has potential implications for the sustainability of fish stocks in the Indian Ocean, where two out of three tuna fisheries are currently overfished.
"Insurers might be insuring vessels that are deliberately breaching the AIS laws of the flag States and countries whose waters they access, and thus, they may be indirectly enabling this illegal behavior," concluded Blue Marine in a January 2023 paper. "Insuring vessels that ‘go dark’ for months at a time, in areas known for illegal marine activities and near sanctioned countries, puts insurers at great risk of being caught by sanctions legislation if enhanced due diligence is not carried out."
Blue Marine wants to see insurers' due diligence processes incorporate an analysis of AIS patterns to look for signs of impropriety or noncompliance. It also believes insurers should insert contract clauses requiring "responsible and consistent use of AIS" as a condition of coverage, Blue Marine head of investigations Jess Rattle told The Guardian.