Second Australian rare earths producer suffers cyber attack

Bloomberg News | June 14, 2024 | 

Credit: Iluka Resources Ltd.

Iluka Resources Ltd. has become the second Australian rare earths miner to suffer a cyber attack in recent months, although the hackers weren’t able to penetrate its cybersecurity protections.


The denial-of-service attack was intended to disrupt Iluka’s external website, according to a statement from the company. However, there was “no infiltration of our internal systems and hence no loss of data or privacy concerns,” the company said.

The West Australian newspaper first reported the attack earlier Thursday.

Last week, fellow Australian rare earths producer Northern Minerals Ltd. said some of its data had been released onto the “dark web” months after the firm detected a breach of its cybersecurity protections.

The data “included corporate, operational and financial information and some details relating to current and former personnel and some shareholder information,” Northern Minerals said at the time.

Earlier this month, Australia ordered a Chinese-linked fund and its associates to sell their stakes in Northern Minerals, part of an effort by US allies to counter China’s dominance of critical minerals.

(By Paul-Alain Hunt)

Congo’s Gecamines threatens to intervene in sale of cobalt firm

Bloomberg News | June 14, 2024 |

The Mutoshi project (Image: Trafigura)

The Democratic Republic of Congo’s state miner said it will need to approve any acquisition of cobalt producer Chemaf Resources Ltd. if the new owner wants to take over a key mining permit.


Chemaf put itself up for sale in September and, although it said in March the process was in its “final stage,” a winning bid is yet to be announced. The Trafigura Group-backed firm is trying to build one of the biggest copper-cobalt mines and processing plants in Congo on a permit rented from state-owned Gecamines.

A transaction to change ownership of the lease without prior approval from Gecamines would be “void” if it includes the license where Chemaf is developing its Mutoshi project, Gecamines chairman Guy-Robert Lukama said in an interview. “If they sell, we will withdraw the lease agreement.”

Responding to questions on Friday, Chemaf said it has been engaging at the “highest level” of government in Congo and has already secured approval from the mines minister for a proposed transaction.

“Following these approvals we are preparing to seek formal approval from Gecamines SA, our respected partner in Mutoshi,” a spokesperson for Chemaf said.

Kizito Pakabomba was sworn in as Congo’s new mining minister earlier this week, replacing Antoinette N’Samba Kalambayi. Neither responded to requests for comment sent outside office hours.

Chemaf arranged a $600 million loan from Trafigura in late 2022 to fund its expansion, but the mine development overshot its budget and the commodity trading giant was forced to seek new funding. Chemaf offered itself for sale shortly afterward, asking prospective bidders to commit the $250 million to $300 million still needed to complete construction of its projects.

The company, whose relationship with Trafigura dates back more than 15 years, has been planning a large complex at Mutoshi, in Congo’s Lualaba province, since at least 2018. The site would be capable of producing 16,000 tons of cobalt and 50,000 tons of copper a year.

Any move by Gecamines to withdraw the permit may threaten efforts to find a buyer by complicating the fate of the unfinished mining complex, but it wouldn’t impact the dozens of other licenses that Chemaf owns directly.

Trafigura said that as “one of the creditors to Chemaf,” it is “not managing or influencing decisions on the investment process.”
‘Non-performing’ lease

Gecamines has contacted Isle of Man-registered Chemaf on several occasions since the closely held firm — owned by businessman Shiraz Virji — began the sale process, but hasn’t received a reply, according to Lukama. The 25-year lease agreement secured in 2015 is “non-performing,” which makes Gecamines “entitled to terminate it,” he said.

Chemaf said on Friday it has invested about $520 million in developing Mutoshi, which is about 80% complete. The company has previously blamed the funding gap on “inflationary pressures across the global mining sector,” a “soft cobalt pricing environment” and the unavailability of the full loan from Trafigura.

(By William Clowes and Michael J. Kavanagh)

Orano at risk of losing Niger uranium mine sought by Russia

Bloomberg News | June 16, 2024 |

External view of the Somair plant. Credit: Orano

Orano SA could lose the right to mine uranium at one of the largest deposits in the world by June 19 after Niger rejected the French nuclear company’s plan for developing the asset.


The move comes as Russia’s seeks to take over mining assets in the West African country controlled by the French company, Bloomberg reported on June 3. Niger’s Paris-allied president was overthrown in a coup last July, the latest in a string of military takeovers in the region that has seen strongmen spurn ex-colonial power France and forge closer ties with Moscow.

Orano continues to operate a single large uranium mine in Niger but its proposed plan for the development of the Imouraren deposit “doesn’t meet the authorities’ expectations,” Niger’s mining ministry said in a letter seen by Bloomberg. A junta spokesman confirmed the letter dated June 11.

“The second and final notice will end on June 19, after which date the company’s operating permit will be revoked,” the letter said. A Niger mining ministry official couldn’t be reached for comment. An Orano spokesperson didn’t respond to a request for comment.

Imouraren is one of the world’s biggest uranium deposits, with reserves estimated at 200,000 tons. Niger’s move follows years of delays since Orano obtained the permit in 2009, according to the letter. Exploitation was initially scheduled for 2012, but the fall in uranium prices on the world market delayed operations. Niger accounted for about 4% of global uranium mine production in 2022, according to the World Nuclear Association.

One of the world’s poorest countries, Niger expelled French forces last year and ended a decade-long security agreement with the US, which has until mid-September to withdraw its troops stationed in the country. In April, 100 Russian military instructors arrived in the capital, Niamey, to train Niger’s forces on how to use air defense systems supplied by Moscow.

France has relied on Niger for as much as 15% of its uranium needs to fuel nuclear reactors that account for 65% of the country’s electricity production, Le Monde reported last year, citing Orano. European Union utilities depended on Niger, the world’s seventh-largest producer, for about a quarter of their uranium supplies in 2022, according to the Euratom Supply Agency.

Orano has a majority stake in Imouraren SA with Niger’s Sopamin SA controlling the remaining 33.35%.

Orano currently operates Somaïr, an open-pit mine in the northern Arlit region, after the closure of Cominak in 2021. Mine activities at Somaïr resumed in February after a production stoppage of several months following the coup. Imouraren has been suspended since 2015, according to the company’s website site.

(By Katarina Höije)

Serbia to give green light for Rio Tinto lithium mine

Reuters | June 16, 2024 | 

Rio’s Jadar project has an estimated production capacity of 55,000 tonnes per year. (Image courtesy of Rio Tinto.)

Serbian President Aleksandar Vucic is preparing to give Rio Tinto the green light to develop Europe’s largest lithium mine two years after Belgrade called off the project, the Financial Times said on Sunday.


Vucic told the newspaper that “new guarantees” from the global mining giant and the European Union looked set to address Serbia’s concerns over whether necessary environmental standards would be met at the Jadar site in the west of the country.

Rio Tinto said in a statement emailed to Reuters: “We believe the Jadar project has the potential to be a world-class asset that could act as a catalyst for developing an EV (electric vehicle) value chain in Serbia”.

Regarded as a critical material by the EU and the United States, lithium is used in batteries for EVs and mobile devices.

“If we deliver on everything, (the mine) might be open in 2028” Vucic told the FT, adding that the mine was projected to produce 58,000 tons of lithium per year which would be “enough for 17% of EV production in Europe — approximately 1.1 million cars.”

In 2022, Belgrade revoked licences for Rio’s $2.4 billion Jadar project after massive environmental protests. If completed, the project could supply 90% of Europe’s current lithium needs and help to make the company a leading lithium producer.

In 2021 and 2022 Serbian environmentalists collected 30,000 signatures in a petition demanding that parliament enact legislation to halt lithium exploration in the country.

(By Gursimran Kaur; Editing by William Mallard and Hugh Lawson)

Related Article: Environmental studies show Serbian lithium project is safe, Rio Tinto says

Tesla shareholders vote no on deep sea mining moratorium

Bloomberg News | June 14, 2024 

Tesla Inc. investors agreed to Elon Musk’s $56 billion pay package on Thursday, but declined to agree to a moratorium on sourcing electric vehicle battery metals from deep sea ecosystems.


Activist investors had pushed the carmaker to join other industry leaders in considering the impacts of deep sea mining at its annual shareholder meeting. As You Sow — a nonprofit promoting corporate social responsibility — filed a proposal in December asking shareholders to impose a moratorium on sourcing minerals from deep seabeds. “We are seeing Tesla, the face of the EV transition, as a laggard,” said Elizabeth Levy, the nonprofit’s biodiversity program coordinator.

On Thursday, 78% of Tesla shareholders voted against the proposal and 6% voted in favor, including abstentions and broker non-votes.

Earlier this month, General Motors Co. investors rejected a similar proposal — also filed by As You Sow — that would have required the company to publicly disclose any use of deep sea minerals in its supply chain. The proposal was, however, supported by 12% of investors, enough for As You Sow to file it again next year.

While commercial deep sea mining has not begun, the industry aims to extract potato-sized rocks called polymetallic nodules found on the seabed 13,000 feet (4,000 meters) beneath the surface. They contain metals used in EV batteries, such as cobalt and nickel.

The fight over deep sea mining is heating up as a growing number of nations, scientists and environmentalists call for a moratorium or ban on mining fragile and biodiverse deep sea ecosystems, which are home to organisms found nowhere else on the planet. A United Nations-affiliated organization is in the midst of a protracted fight over writing regulations for mining the seafloor.

The nascent deep sea mining industry maintains that seabed minerals will accelerate decarbonization, providing materials needed to build new batteries and other technologies that are key to the energy transition. Some countries are also on board: Earlier this year, Norway made a push to mine Arctic seabeds.

In January, Tesla appealed to the US Securities and Exchange Commission to omit the deep sea mining proposal from this year’s stockholder meeting, saying that it aimed to micromanage the company. Derek Windham, Tesla senior director and general counsel, wrote “the Proposal fails to focus on a significant social policy issue that transcends the ordinary business of the Company.” The SEC declined Tesla’s request on March 27.


The vote highlights a broader question facing the auto industry: whether deep sea materials are necessary to compete in the global EV race. Several non-US carmakers — including Volvo Car AB, Volkswagen AG, and BMW AG — have already signed onto a deep sea mining moratorium in cooperation with the World Wildlife Fund.

“The United States is a follower in this regard,” said As You Sow President Danielle Fugere. “Other nations are further along, and this shows up in how car companies operate.”

Tesla is increasingly using lithium iron phosphate batteries, which are also popular in China and do not rely on nickel or cobalt. The company has continued to expand its LFP supply chain in the US and says that by early 2022 nearly half of the vehicles it produced had LFP batteries.

Gerard Barron, chief executive officer of the Metals Company Inc., a leading seabed mining company, says battery chemistries are subject to further change. “I think LFPs are filling a certain segment of the market,” he said. “Over the next decade, sodium-based chemistries will become more popular and replace some of the LFP market share. And that will require the metals from our nodules.”

Tesla and GM’s shareholder votes come as the EV landscape faces a major shift. By the end of 2025, the global battery industry will be capable of making five times more cells than demand requires, according to BloombergNEF. The nickel content of EV batteries is also forecast to drop by 25% next year. Those shifts could make mining the seabed for nickel and other minerals both environmentally dubious and economically ill-advised.

(By Alexander Battle Abdelal)

BC 

Taseko reaches tentative labour deal for Gibraltar mine restart

Staff Writer | June 16, 2024

The Gibraltar open pit mine in BC. Credit: Taseko Mines

Taseko Mines’ (TSX: TKO) Gibraltar mine in British Columbia is set to resume operations in the coming week after the company and the workers’ union reached a tentative agreement over the weekend.


On June 1, more than 500 workers at the mine located north of Williams Lake, BC, went on strike after talks over a new collective agreement broke down after months of negotiations. The current collective agreement expired on May 31.

In a statement by Unifor, their representative union, it was alleged that Taseko had “refused to negotiate basic terms” and “shown little interest in avoiding a disruption at the copper mine.”

The miner was subsequently forced to suspend mining and milling operations, leaving only essential staff on site to maintain critical systems.

Acquired in 1999, the Gibraltar mine is currently Taseko’s only producing asset, anchored by a large mineral reserve base that would support an average annual copper production of 130 million lb. until at least 2044.

Now in its 20th year of operation, Gibraltar represents the second-largest open-pit copper mine in Canada, owing to $800 million of spending on multiple phases of modernization and expansion.

The new collective agreement would spell the end of the two-week work stoppage at the largest employer in the Cariboo region. In 2024, the mine is expected to produce 115 million lb. of copper, having already topped its guidance last year with 122.6 million lb. produced.

The new agreement remains subject to ratification by union members, and voting is expected to occur early this week. If the agreement is ratified, Taseko expects to resume operations on Wednesday.

Union at BHP copper mine in Chile accepts contract, averting strike

Reuters | June 14, 2024 | 

Spence copper mine, Chile. (Image courtesy of BHP)

The union representing workers at BHP’s Spence copper mine in Chile accepted a contract proposal by the company on Friday by an overwhelming margin, averting the risk of a strike.


Around 93% of union members voted in favor of the proposal, with the other 7% voting to strike, a tally provided by the union showed.

The three-year contract will give workers a “significant raise” in terms of salary and benefits, the union said in a statement.

Earlier this week, workers and the firm had reached an initial agreement that required a vote by union members to go into effect.

The union represents more than 1,100 workers at the copper mine located in northern Chile. Their previous collective agreement expired on May 31.

BHP had previously said that the Spence mine, which produced 249,000 metric tons of copper last year, was operating as normal while the firm was in negotiations with the union.

“The company appreciates the willingness for dialogue, respect and effort to build a sustainable and beneficial agreement for both parties,” BHP said in a statement.

Chile is the world’s largest copper producer.

(By Fabian Cambero and Kylie Madry; Editing by Leslie Adler, Sarah Morland and Aurora Ellis)

 

World Trade Month Highlights Agricultural Shipping's Role in World Commerce

Grain being loaded on a bulker (file photo)

PUBLISHED JUN 16, 2024 11:10 AM BY ATLANTIC PROJECT CARGO

 

World Trade Month recognizes the importance of international trade each May. It highlights how trade between countries creates jobs, opens new business opportunities, and strengthens the global economy. The United States has been celebrating it since 1938, and many events and programs are held throughout the month to promote its significance.

World Trade Month wouldn't be complete without acknowledging the agricultural sector's critical role. Here's how agriculture contributes significantly to global commerce:

• Food Security: International trade allows countries to import the food they don't produce enough of, ensuring a wider variety and stable supply for consumers worldwide.

 

 

US agricultural imports 

• Economic Growth: Agricultural exports are a major source of income for many countries, boosting their economies and contributing to global trade value.

• Efficiency and Innovation: Trade fosters competition, encouraging innovation and efficiency in agricultural practices to stay competitive in the global market.

While vital, agricultural trade faces hurdles. Regulations and tariffs can make exporting agricultural products expensive and complex. Countries worldwide tend to impose higher tariffs on agricultural products than non-agricultural goods. Studies show this happens in over 90 percent of countries.

Trends, Growth Areas, and Challenges for Agricultural Trade

Recent trends in agricultural trade paint a complex picture with both growth and challenges.

Growth Trends

Despite a projected slowdown, global agricultural trade continues to expand, with a significant rise in volume and value compared to overall world trade. The total value of agricultural production worldwide is expected to reach US$3.9 trillion in 2024. According to Statista, this number is projected to grow at an average annual rate of 5.66% over the next four years, reaching US$4.86 trillion by 2028.

Emerging Markets and Growth Areas

Demand for products like fruits, vegetables, and meat is rising, particularly in developing countries with growing middle classes. Consequently, these countries are projected to account for 92% of the global increase in meat imports, 92% of the increase in grain and oilseed imports, and nearly all the rise in world cotton imports (Developing Countries Dominate World Demand for Agricultural Products, Ronald Trostle and Ralph Seeley).

Challenges

Geopolitical disputes can lead to trade wars and tariffs, disrupting established trade flows and raising food prices. Caldara and Iacoviello in their work “Measuring geopolitical risk” identify several ways geopolitical risks disrupt agricultural exports. These risks can lead to:

• Higher export costs. The cost of shipping agricultural goods can increase due to factors like disruptions in transportation routes or higher fuel prices.

• Increased security spending. Exporters may need to invest more in security measures to protect their products during transport, especially in high-risk regions.

• Reduced insurance coverage. Insurance companies may be less willing to cover shipments in areas with heightened geopolitical tensions, making it more expensive or impossible for exporters to obtain adequate coverage.

Opportunities for Agricultural Trade

The current economic climate presents both challenges and opportunities for agricultural trade. 

Technological Advancements in Agriculture

The global agricultural sector is experiencing a surge in demand for advanced equipment. Maryana Serafinas – CEO of Atlantic Project Cargo highlighted three main factors:

1. Feeding a world population projected to reach 9.1 billion by 2050 necessitates significant increases in food production.
2. As incomes rise in developing countries, the demand for meat, dairy, and processed foods increases, putting pressure on agricultural output.
3. In many regions, the agricultural industry faces a shrinking workforce. Precision agriculture equipment helps address this by automating tasks and improving efficiency.

This rising demand translates into a need for efficient and reliable transportation of agricultural equipment. Atlantic Project Cargo handles large and complex agricultural machinery, including tractors, combines, planters, and sophisticated harvester attachments. Additionally, Atlantic Project Cargo's global network allows them to facilitate the transport of this equipment from manufacturers to farms worldwide.

How Shipping and Logistics Drive American Prosperity

USCG MARITIME COMMERCE'S STRATEGIC OUTLOOK

The United States prospers from global trade, and behind every imported good and exported product lies a complex web of shipping and logistics. These services ensure the smooth flow of goods across vast distances, playing a vital role in the US economy, especially in the agricultural sector.

Why Shipping and Logistics Matter for US Agriculture

The agricultural sector is a major contributor to the US economy, and efficient shipping and logistics are crucial for its success:

• Reaching Global Markets

US farmers can export their products to a wider audience, increasing their income and fostering economic growth. Countries like China and Japan rely heavily on US agricultural imports. According to data from fiscal year 2023, the top five export destinations for US agricultural products accounted for a substantial 64% of the total value of US agricultural exports.  China ranked as the leading importer, with a value of $33.7 billion in US agricultural goods. Mexico and Canada followed closely behind, importing $28.2 billion and $27.9 billion worth of US agricultural products, respectively. (Economic Research Service, U.S. DEPARTMENT OF AGRICULTURE)

• Competitive Advantage

Efficient logistics reduce costs and delivery times, giving US agricultural products a competitive edge in the global market. Fresh produce can reach distant markets while still maintaining quality.

• Ensuring Food Security

The US imports certain food products it doesn't produce enough of. Efficient logistics ensure a wider variety and stable supply of food for American consumers.

Conclusion

World Trade Month serves as a timely reminder of the critical role agriculture plays in international commerce. From ensuring global food security to fostering economic growth, agricultural trade is a complex and dynamic system. 

Companies like Atlantic Project Cargo play a crucial role in this ecosystem by facilitating the movement of oversized and specialized agricultural equipment. Their expertise in customized solutions, navigating regulations, and utilizing alternative transport methods ensures this vital equipment reaches farms around the world. 
 

This article is sponsored by Atlantic Project Cargo. Visit them online at www.atlanticprojectcargo.com

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.

 

Van Oord Dredger Hits Bunker Tanker, Spilling Oil in Singapore's Harbor

Damage to the bunker tanker Marine Honour (MPA Singapore)

PUBLISHED JUN 16, 2024 2:37 PM BY THE MARITIME EXECUTIVE

 

On Friday, a dredger struck a bunker tanker at the port of Singapore, leading to a substantial spill. 

At about 1440 hours local time, the Van Oord-operated dredger Vox Maxima allided with the berthed bunker tanker Marine Honour at the Pasir Panjang Terminal, tearing open its hull amidships on the starboard side. In a statement, Van Oord said that both vessels were safely anchored and stable, and that no personnel injuries have been reported. 

One cargo tank aboard the bunker tanker was damaged, releasing fuel oil into the water, and the tidal current carried the slick towards shore. Oil reached the waterfront at the island of Sentosa, a popular resort and casino destination for vacation-goers. Beachfront areas at Sentosa, the Labrador Nature Reserve, Southern Islands are affected, and selected areas have been closed off as cleanup gets under way. Professional work crews are already removing oiled sand from the waterfront. 

On the water side, more than a dozen vessels are engaged in containment and cleanup efforts, and the Singaporean authorities are using dispersants to minimize the effects of the pollution on land. More than a kilometer of boom has been laid out, and more will be installed in the days to come in order to keep the oil off the beaches, Singapore's Maritime and Port Authority (MPA) said in a statement. Additional boom will be used to keep the oil that has reached shore from drifting back out to sea again. 

Local environmental NGO Marine Stewards advised that the best thing for local residents to do is to stay away from the oil for health and safety reasons. The organization is collecting public reports on wildlife impacts, and more than a thousand people have signed up to help survey the shoreline, according to partner NGO Friends of the Marine Park. Limited wildlife oiling has been reported. 

The MPA has set up an operations center for its staff and personnel from key stakeholders, and an official investigation is expected soon. 

"We are cooperating with the investigations by the authorities. As long as investigations are ongoing, we can’t provide any further substantive information in the interests of the investigations," Van Oord said. 

 

Fiji’s New Patrol Boat Evacuated After Grounding on First Patrol

Fiji's new $10.6 million patrol boat was on its first deployment when it grounded and began flooding (Fiji Ministry of Home Affairs)

PUBLISHED JUN 12, 2024 5:11 PM BY THE MARITIME EXECUTIVE

 

 

The Government of Fiji and the Fiji Navy are working to manage a major embarrassment after the country’s new patrol boat, a gift from Australia, grounded halfway through its maiden deployment. The sailors were safely evacuated while a crisis management team is working to save the vessel which is reported to be on a reef and flooding.

RFNS Puamau built by Australian shipbuilder Austal was delivered in March 2024 as part of an ongoing program of goodwill and mutual security between Australia and the neighboring island nations. The vessel, valued at approximately US$10.6 million, had just completed days of safety and survival at sea training. It had embarked on a two-week maiden patrol.

The Fiji Navy confirmed that the vessel grounded on Monday in the southeastern reaches of the island nation. Reports indicate it is in the remote Lau group of islands, with ABC News Australia calling it a “treacherous area” with difficult sea passages. 

There were reports of strong winds in the area, but the Navy will only say that the cause of the cause of the incident will be investigated. Learning of the grounding, the Navy dispatched another Austal-built patrol boat, RFNS Savenaca to the scene. They report without specifying a number that the crew was safely evacuated and surveys do not show any pollution coming from the patrol boat.

Media reports are indicating that the engine room of the patrol boat is flooding and efforts are underway to pump out the water and stabilize the vessel. The Australian Defence Force is also providing aerial assistance.

“Damage control teams, comprised of Navy divers and Navy engineers, are effecting temporary fixes and devising strategies for the removal of all fuel and the patrol boat’s de-storing, with aerial and surface assessments confirming the absence of any spills,” the Fiji Navy wrote in an update from earlier today. “The crisis management team continues to oversee the operation from HQ Navy in collaboration with key stakeholders.”

The vessel was the first of four Guardian-class Patrol Boats scheduled for delivery by Austal’s Western Australian shipyards in 2024 and the nineteenth delivered as part of the Pacific Patrol Boat Replacement Project initially awarded to Austal Australia in May 2016. The shipbuilder is receiving more than A$350 million (US$233 million), and delivering patrol boats being gifted by Australia to Papua New Guinea, Fiji, the Federated States of Micronesia, Tonga, Solomon Islands, Cook Islands, Kiribati, Marshall Islands, Palau, Samoa, Tuvalu, Vanuatu, and Timor-Leste.

The vessels are approximately 130-foot (39.5-meter) steel monohull patrol boats designed, constructed, and sustained by Austal Australia. According to the shipbuilder, they are faster than the previous Pacific-class patrol boats, with improved seakeeping, better amenities, and an enhanced mission capability. They have an integrated RHIB stern launch and recovery system and were designed to carry out border patrols, regional policing, search and rescue, and other operations domestically and internationally.

The media is saying that the vessels however received criticism with reports of defects including with the exhaust system. The Australian Department of Defence reportedly issued an advisory to the various nations on how to operate the vessels to reduce risks.

Concerns are being raised for the new vessel because of its exposed position and challenging sea conditions which could delay salvage efforts. The Fiji Navy said after the safe recovery of the crew and assisting their families, its focus is on safely recovering the vessel.

 

Report: Greek Prime Minster Says “Time Has Come” to Restrict Cruise Ships

Cruise ships anchored off Santorini (Patano - CC BY-SA 3.0)

PUBLISHED JUN 14, 2024 4:21 PM BY THE MARITIME EXECUTIVE

 

Greece is reported to be the latest popular tourist destination considering limits or restrictions on the number of cruise visitors to its popular destinations. In an interview with Bloomberg, Prime Minister Kyriakos Mitsotakis said they are thinking the restrictions could start next year causing shockwaves in the cruise industry and sending the price of cruise stocks tumbling after a Wall Street analyst also reported the pricing for cruises had soften in June.

Tourism is a major part of the Greek economy and Greek Island cruising started in the 1950s and has become one of the most popular destinations. Truist Securities writes that Greece saw cruise ship passenger arrivals jump 50 percent in 2023 mostly centered on the popular ports of Santorini and Mykonos. Cruises generally originate in Piraeus or outside Greece, stopping at the popular ports on trips ranging from a few days to a week or more. There is also a strong interisland ferry trade.

Bloomberg cites data from the Hellenic Ports Association reporting that 800 vessels called at Santorini in 2023 carrying 1.3 million visitors. They report that was up 17 percent over 2022. Many visitors to Santorini, where cruise ships must anchor and tender passengers to the volcanic island, report long waits. One of the most popular attractions requires taking a cable car up to the top of the crater with long lines to board the cable car. Santorini nearly a decade ago began to seek controls on cruise ships due to overcrowding and the ships have only gotten larger since then.

The second most popular destination is Mykonos, which is a frequent tourist destination in general. Bloomberg cites 749 cruise ship visits in 2023. They report that was up 23 percent.

Speaking to Bloomberg the Prime Minister speculated that the time has come to place restrictions on cruise ship visits to the most popular islands. He suggested it would start in 2025 and might take the form of restricting the number of berths or establishing a bidding process for cruise lines to gain slots. Bidding already takes place in other destinations such as Glacier Bay National Park in Alaska which restricts the number of cruise ships permitted to enter the park each day.

“While somewhat vague, the news from Greece is clearly not a positive,” writes analyst Patrick Scholes of Truist to their clients. However, he warns that it is “much too early to precisely financially quantify.” The team at Truist estimates that the major cruise lines have an exposure of between 5 and 14 percent to the Eastern Mediterranean. 

The price of cruise line stocks however was off as much as 7.5 percent today after the Bloomberg story. Cruise lines have argued that they can stagger their ships’ arrival times and coordinate schedules not to bunch larger ships at individual ports. The lines have in the past due to geopolitical issues at times been forced to cancel cruises in the Eastern Mediterranean and move ships to other destinations. Also contributing to today's declines in stock prices was a report from Bank of America that found "cruise prices appearing modestly softer in June," raising fears that the industry can not maintain its strong advances in prices and bookings.

Greece joins a growing list of tourist destinations struggling with overtourism and problems ranging from crowded streets to complaints that the ports are overrun with cruise passengers attracting fewer people for the hotels and guesthouses. In Europe, Venice has shifted cruise ships away from the lagoon because of an outcry over damage to the historic buildings blamed on the large ships while cities from Amsterdam to Barcelona have taken steps to move the ships out of the city center. In the U.S., Juneau, Alaska just reached a voluntary agreement with the cruise industry to regulate the number of daily passengers starting in 2026, while destinations ranging from Bar Harbor, Maine to Key West, Florida have also sought to ban large cruise ships.
 

 

Top photo by Patano - CC BY-SA 3.0

Prosecutors Detain "Dirty" Cruise Ship Chartered to House Italian Police

A police union alleges that the vessel had "terrible sanitary conditions"

Courtesy Neonyx

PUBLISHED JUN 12, 2024 2:53 PM BY THE MARITIME EXECUTIVE

 

A cruise ship that was chartered to house thousands of security officers for this week's G7 summit has been detained by police over allegations of poor onboard hygiene. 

The vessel Goddess of the Night (ex name Mykonos Magic) was scheduled to provide temporary lodging for about 2,000 police officers near Borgo Egnazia, a resort where G7 leaders will gather for a summit beginning Thursday. Officers and their union representatives complained that the conditions on board were unlivable, including broken heads, inoperable HVAC and leaking pipes. The secretary of the police union, Domenico Pianese, told local media that the ship "was in terrible sanitary conditions, with dirty and damaged accommodation, unusable toilets, dilapidated showers, flooded cabins."

The personnel who were stationed on board have been moved to other lodging locations. 

While onboard deficiencies might be treated as a matter for port state control inspection in other circumstances, this vessel was chartered to a government agency, and the conditions affected law enforcement personnel. Local prosecutors in Brindisi are looking at the conditions of the lodging service provided, and they have issued an order for the vessel's detention. 

According to La Stampa, the Central Operational Police Service and the Brindisi police station are investigating. The Brindisi police told Italian media that their investigative units found hygiene, health and accommodations shortcomings on board, and that the conditions are serious enough to hypothesize "the crime of fraud in public supplies." 

Goddess of the Night (ex names Mykonos Magic, Costa Magica) is a 2004-built cruise ship with a capacity of 2,700 passengers. According to cruise industry media, the vessel's beneficial owner is Seajets, a Greek-Cypriot ferry operator based in Piraeus. The firm began acquiring and trading used cruise ships during the pandemic-era industry downturn, and reportedly purchased Goddess of the Night last year. As is standard in the industry, the registered owner is a holding company with a mailing address matching a third-party shipmanager.

The Goddess of the Night was reported to be in drydock in Turkey last month, preparing to enter service for adults-only startup line Neonyx Cruises. Travel-industry media have identified Neonyx as a Seajets-related enterprise.

Neonyx has advertised a series of cruises headlined by well-known DJ entertainers, with departures starting in July. The effects of the detention on the ship's schedule are not clear, and Seajets and Neonyx have not yet commented on the police unions' allegations. 

Mein Schiff 7 Delivered as First Methanol-Ready Cruise Ship

Mein Schiff 7 departing for sea trials in May 2024 (Meyer Turku)

PUBLISHED JUN 11, 2024 2:37 PM BY THE MARITIME EXECUTIVE

 

The first cruise ship designed for operations on methanol and eventually green methanol was delivered on June 10 to Germany’s TUI Cruises. Named Mein Schiff 7 she also marks the first new ship since 2019 for the cruise line and the seventh ship in the Mein Schiff fleet to be built in Finland at what is today the Meyer Turku yard.

As the company explains it, for the commissioning of the Mein Schiff 7, all the currently possible technical equipment, such as tanks and pipe systems for methanol or green methanol propulsion, have been installed. However, a technical component for the methanol drive of four-stroke engines is not yet available and is not expected to be delivered until sometime in 2025. The cruise line currently plans for the Mein Schiff 7 to be equipped and commissioned in 2026 so that it can be one of the first cruise ships to run on methanol.

Initially, the 115,000 gt cruise ship will be operated exclusively with low-emission marine diesel (sulfur content max. 0.1%). The line notes it is the first ship in their fleet to exclusively use this low-emission fuel and its environmental impact will be further enhanced with catalytic converters that will reduce nitrogen oxide emissions by approximately 75 percent. The ship is also equipped to use shore power connections.

"It is a special moment for us to receive this ship," said Wybcke Meier, CEO of TUI Cruises. “Ten years ago, we picked up our first Blu Motion class ship here in Turku. The Mein Schiff 3 was the first new build for TUI Cruises and by 2019 we had built a total of six ships.”

The Mein Schiff concept was launched as a partnership between German tour company TUI (Touristik Union International) and Royal Caribbean Group in 2009. It is marketed exclusively to German-speaking tourists. The brand was launched with cruise ships from Celebrity Cruises and started its newbuild program in 2011 with the Blu Motion concept, 97,000 gt cruise ships. They built four of the ships with STX Finland (later Meyer Turku) and then three enlarged ships, the last on order is Mein Schiff 7.

The company highlights several design changes to the ship versus her earlier sisters. This includes new stateroom categories including single occupancy staterooms. They are also introducing new specialty restaurants and other amenities for the passengers. Double occupancy is 2,896 passengers with approximately 1,000 crew. Registered in Malta, Mein Shiff 7 is 1.036 feet in length (315 meters).

The new ship is scheduled to enter service tomorrow, June 12, with a 2-night preview cruise, which is exactly two years to the day since construction began with the first steel cut. It will be cruising in Northern Europe and Scandinavia before moving to the Mediterranean for the winter months.

TUI looks to learn about methanol operations with Mein Schiff 7 but notes that a conversion is also an option for the future of its existing fleet. The company is also exploring other options as it is due to launch in 2025 its next new cruise ship Mein Schiff Relax (approximately 161,000 gt). Being built at Fincantieri in Italy the next ship will be LNG-fueled and the first of two on order for the cruise line.

Several other cruise lines have indicated interest in following the broader shipping industry into methanol. Meyer Group is also working with Disney Cruise Line which is completing the Global Dream cruise ship started at MV Werften for Genting Hong Kong. While Disney has not released details, they said the ship would be converted to methanol. Celebrity Cruises is also building a new ship in France and Wartsila is converting the engine to be tri-fuel including able to handle methanol. Norwegian Cruise Line working with Fincantieri also announced that the fifth and sixth ships of its Prima class would be designed for methanol, while the cruise line is also working with MAN to explore methanol conversions for its existing cruise ships.