Wednesday, October 23, 2024

 

Four Crew Lost as Overloaded Russian Cargo Ship Capsizes

capsized cargo ship
Russian cargo ship capsized in the frigid waters off Sakhalin island on Friday (Marine Rescue Service photos)

Published Oct 21, 2024 5:20 PM by The Maritime Executive

 

 

Russian authorities are reporting that three crewmembers were recovered but that four others were missing after a small general cargo ship capsized near Korsakov port at the southern end of Sakhalin Island in the Far East. 

The cargo ship Grigory Lovtsov was built in 2002 in Japan and has been sailing for Russia since 2010. The vessel is 200 dwt and 135 feet (41 meters) in length. The ship was operating with a crew of seven with reports saying it was transporting a cargo of building materials. 

The regional governor wrote on Telegram that he believed the vessel was overloaded. It had a cargo of sand and gravel which the authorities are saying likely shifted causing the vessel to lose stability Friday afternoon, October 18. 

 

Four crewmembers were missing after the vessel capsized (Marine Rescue Service)

 

Three crewmembers were thrown into the sea as the vessel capsized. A search and rescue operation was launched and able to recover the sailors from the water and they were reported to be suffering from hypothermia. One was released from the hospital over the weekend while another is said to be in very serious condition. Interfax has an unconfirmed report that two bodies were later recovered during the search. 

Governor Valery Limarenko reported on Telegram that crews were able to secure the overturned vessel. It was being towed to shore and he said they would begin pumping it out to conduct a full investigation. 

There are allegations that safety procedures were overlooked. Officials report the ship had a prior incident in 2022 when it became trapped in the ice off Sakhalin and the crew needed to be evacuated.
 

 

CMA CGM Group and SUEZ Partner to Produce Biomethane Fuel

containership fueling
CMA CGM seeks to create alternative fuel sources for its fleet of LNG-gas pwoered vessels (CMA CGM)

Published Oct 22, 2024 6:47 PM by The Maritime Executive

 

 

French shipping major CMA CGM Group is taking another step to create fuel as part of its efforts to decarbonize its operations and to protect its more than $18 billion investment in a new generation of vessels. CMA CGM reports it signed an agreement with French waste-to-energy company SUEZ that calls for the production in Europe of up to 100,000 tones of biomethane per year by 2030.

Supply of new alternative fuels continues to be a major concern for the entire shipping industry and other sectors that look to the alternatives to make it possible for the companies to meet the emerging requirements for lowered carbon emissions. CMA CGM Group CEO Rodolphe Saade said the agreement with SUEZ “marks a major step forward,” in the efforts to create a source of biomethane fuel. He said it would enable support for the biomethane sector dedicated to the shipping industry and strengthen energy independence for France and Europe.

“The aim of this collaboration between two complementary players is to establish a long-term industrial partnership on biomethane, a renewable fuel produced through waste recovery, to help decarbonize shipping in Europe,” the companies said reporting the agreement signed on October 18.

Under the terms of the memorandum of understanding, CMA CGM and SUEZ will create a joint investment structure with initial funding of €100 million ($108 million at current conversion rates) for a first stage to develop biomethane production facilities by 2030. They said the sites to be initially located in Europe would supply both CMA CGM Group and other companies in the sector.

Together they plan joint research and development initiatives aimed at designing innovative technologies for the production of biofuels. In particular, they will focus on a hydrothermal gasification process and look to build on SUEZ’s expertise in waste-to-energy. 

Creating a supply of biomethane and other synthetic non-carbon fuels is a critical part of the group’s decarbonization strategy. CMA CGM highlights that it is investing $18 billion in orders for 131 vessels capable of using low-carbon energies (biomethane, biomethanol, and synthetic fuels), which will be operational by 2028. CMA CGM Group is also working alongside energy providers to develop production facilities and supply chains for these fuels.

The announcement highlights that SUEZ has extensive expertise in the production of local and sustainable energy and secondary raw materials from waste to support the decarbonization of local authorities and industrial customers. SUEZ reports it converts five million tonnes of waste into energy every year and produced 382 GWh of biomethane in 2023.


Ammonia-Powered Engine to be Developed for Medium-Speed Marine Applications

MAN Energy Solutions
AmmoniaMot 2

Published Oct 22, 2024 12:12 PM by The Maritime Executive

 

[By: MAN Energy Solutions]

Having designed and tested the first two-stroke ammonia engine, MAN Energy Solutions has now announced launching the ‘AmmoniaMot 2’ research project. Initiated by MAN with partners from industry and research institutes, the project aims to develop a four-stroke, medium-speed, dual-fuel test engine that runs on ammonia. ­­

Supported by the German Federal Ministry for Economic Affairs and Climate Action (BMWK), the project commenced in August 2024 and is scheduled to run for 3½ years. It is the successor to the ‘AmmoniaMot’ project, which dealt with fundamental investigations concerning ammonia combustion in internal-combustion engines and that ended in May 2024. Its promising results form the basis for the even more ambitious AmmoniaMot 2, once again led by MAN Energy Solutions with the same partners from the original project and supplemented by some new, namely: WTZ Roßlau gGmbH, Woodward L’Orange GmbH, the University of Munich (SFM), Neptun Ship Design GmbH, the University of Rostock (LKV), GenSys GmbH and MNR GmbH.

Alexander Knafl, Head of Engineering R&D Four-Stroke, MAN Energy Solutions: said: “For MAN Energy Solutions, this project is the next logical step after the previous AmmoniaMot project. It perfectly supports our own strategy to develop sustainable technologies and we very much appreciate the opportunity to work with our distinguished partners. For us, the path to decarbonising the maritime industry starts with decarbonising fuels and, in this context, ammonia is an excellent candidate as it is carbon-free and thus avoids CO2-emissions when used as a fuel in our engines.”

MAN Energy Solutions sees the future application of ammonia-powered, four-stroke engines primarily in newbuild projects without passengers, such as cargo or special vessels, or as an auxiliary GenSet for large ammonia-powered two-stroke vessels. For passenger ships such as ferries and cruise liners, MAN Energy Solutions is currently focusing on methanol as that segment’s fuel of the future and is already developing corresponding engines in parallel.

Christian Kunkel, Head of Combustion Development, Four-Stroke R&D, MAN Energy Solutions, added: “In the original AmmoniaMot project, we laid a strong foundation with our excellent partners and proved that ammonia is a suitable fuel for medium-speed applications with the potential to reduce greenhouse-gas emissions by 90-95% while complying with existing emission regulations. I am more than excited to take the next step with our partners in AmmoniaMot 2. There is no doubt but that ammonia will become an important carbon-free fuel and thus not just contribute to the decarbonisation of the maritime sector.”

Partner roles

  • MAN Energy Solutions is responsible for the entire engine concept for the ship application, including the exhaust-gas aftertreatment system;
  • WTZ Roßlau gGmbH will develop the combustion concept for the engine and test the injection components under realistic conditions;
  • Woodward L’Orange GmbH will develop the injector prototype for the engine;
  • The University of Munich (SFM) is responsible for the 3D-CFD combustion simulation;
  • Neptun Ship Design GmbH will develop the demonstrator of the high-pressure fuel-supply module for ammonia (CAPSAM), taking into account the safety requirements aboard ships;
  • The University of Rostock (LKV) will conduct experiments for the injection technology, exhaust-gas aftertreatment concept, lubrication of ammonia engines and will develop 0D/1D simulation models on the basis of these experiments;
  • GenSys GmbH will be responsible for the construction of the demonstrator of the high-pressure fuel-supply module for ammonia (CAPSAM);
  • MNR GmbH will develop the double-walled fuel system and the compensator for the high-pressure fuel piping system for ammonia. 

The products and services herein described in this press release are not endorsed by The Maritime Executive.


ABS Comprehensive Ammonia Dispersion Safety Evaluation Sent to Hanwha Ocean

ABS
Patrick Ryan, ABS Senior Vice President and Chief Technology Officer; Young-Chang Son, Chief Technology Officer, Hanwha Ocean; and Joseph Kelly, ABS Consulting Vice President, Engineering; met during Gastech 2024 in Houston.

Published Oct 22, 2024 12:17 PM by The Maritime Executive

 

[By: ABS]

ABS has completed an industry-leading safety evaluation of ammonia dispersion on board an ammonia-fueled gas turbine LNG carrier design from Hanwha Ocean.

ABS, in collaboration with Hanwha Ocean, conducted computational fluid dynamics simulations that modeled different ammonia release scenarios due to accidental leakages from the engine room, the pipeline and the bunkering stations on deck. The study is one of the most comprehensive in the industry, using multiple ammonia release scenarios.

The analyses found that the system complied with applicable ABS Rules regarding the toxicity and risks of accumulated ammonia gas. The three-dimensional, high-fidelity simulation results can also help Hanwha Ocean with improved ventilation arrangements, vent mast locations, gas release speeds and placement of air intakes for the manned spaces to further reduce risks in the detailed design stage.

ABS subsidiary, ABSG Consulting Inc., a leading global risk management company, conducted a quantitative risk assessment, helping to provide a better understanding of the likelihood of an incident and insight into potential threats, enabling Hanwha Ocean to design its mitigation plans accordingly.

“This project allowed ABS to combine its world leading modeling and simulation capability with our deep insight into the application of ammonia as a marine fuel. The toxicity of ammonia is a safety challenge and so understanding its behavior in the event of a leak is a critical step toward enabling its wider adoption by the industry. Our analysis will help Hanwha Ocean continue to optimize its design to identify areas for enhancement and mitigate risks,” said Patrick Ryan, ABS Senior Vice President and Chief Technology Officer.

Shon Young-chang, CTO and Head of Hanwha Ocean’s Product & Technology Strategy, said: “At Gastech 2024, we received recognition from ABS, the leading Classification Society, for our eco-friendly ship technologies, significantly boosting Hanwha Ocean's decarbonization vision. We will do our utmost to ensure that shipowners can confidently choose Hanwha Ocean's products.”

ABS provides industry-leading guidance on the application of ammonia as a marine fuel. Learn more here and download a copy of the latest publication, ABS Ammonia Bunkering: Technical and Operational Advisory here.

The products and services herein described in this press release are not endorsed by The Maritime Executive.

 

Appeals Court Sets Aside $440M Havana Damages Award Against Cruise Lines

Havana
Havana Docks Corp. sought compensation from the cruise lines for using its pier in Havana (GPH)

Published Oct 22, 2024 6:15 PM by The Maritime Executive

 

 

A U.S. Appeals Court announced its decision overturning a ruling by the U.S. District Court for the Southern District of Florida that had found four of the major cruise corporations liable for committing a “trafficking act” for using piers in Havana that had been confiscated from a U.S. company after the 1959 Communist Revolution. The lower court had awarded the Havana Docks Corporation $440 million in compensation from Carnival Corporation, MSC Cruises, Norwegian Cruise Line Holdings, and Royal Caribbean Group for the cruises the lines operated to Havana between 2016 and 2019.

At issue was a section of a U.S. law known as the Helms-Burton or the Libertad Act passed in 1996 that permitted U.S. corporations to seek compensation from companies profiting from the use of the confiscated property. The section known as Title III however had been suspended by presidential actions until 2019 when the suspension was removed as part of the moves by President Donald Trump against Cuba. He also bared travel and trade with Cuba.

The Havana Docks Corporation, a dormant company, filed its claims citing that in 1905 it received a 99-year concession for the docks that it built in Havana. The company operated the docks until they were seized by the Castro regime in 1960 and it has never been compensated for its loss.

The claim against the four cruise corporations was part of more than 40 Libertad Act Title III lawsuits filed since May 2019. Other corporations named in the individual actions included commercial shipping companies Maersk, MSC, Crowley Maritime, and Seaboard Marine, as well as large U.S. corporations Texaco and Marriott.

The District Court ruled at the end of 2022 that the four cruise lines had trafficked and benefitted from the property by docking their cruise ships at the piers and using the piers for the location of their shore excursions into Havana. The cruise lines made a series of arguments saying the Obama administration had granted waivers and that they were operating legal trips as well as citing the fact that the Havana Docks Corporation had management in the U.K. calling into question if it was a legitimate U.S.-controlled entity entitled to compensation under Title III.

In a majority 2 to 1 decision, the three-judge Appeals Court panel found that the 99-year concession would have expired in 2004 more than 12 years before the major of the cruises were operated. They believed there was no assurance that the concession would have been in effect at the time and dismissed the lower court’s award totaling $440 million. One justice however dissented saying the issue was not the existence of the claim but the value and saying the act did not provide for excluding a situation such as this where the concession expired after confiscation but without compensation. 

The justices agreed that Havana Docks was harmed through the confiscation of the property, but that was not at issue in the case. They noted that had Havana Docks owned the docks instead of having a concession on the property, the decision would have been different. They however agreed with the lower court that it is a U.S. corporation and entitled to bring the claims.

The decision did not resolve another portion of the claim specifically against Carnival Corporation and Airtours and Costa which Carnival acquired in 2001. Before acquiring Costa, the Italian cruise line operated cruises from Cuba between 1996 and 2001 which were in the period covered by Havana Docks’ concession. Carnival and Havana Docks agreed that this portion should be remanded for further proceedings.

Havana Docks could also seek to appeal the three-judge panel’s decision to the full 11th Circuit Court of Appeals. It could also appeal the case to the U.S. Supreme Court.
 

 

Maersk-Chartered Boxship Continues Voyage Despite Houthi Claims of Strike

Megalopolis
Megalopolis' route across the Arabian Sea, Oct. 14-21 (Pole Star)

Published Oct 21, 2024 4:08 PM by The Maritime Executive

 

 

The container ship that Yemen's Houthi rebels claimed to have hit on Friday appears to be navigating on its normal commercial route, defying the group's assertion.

On Friday, Houthi spokesman Yahya Saree claimed that the terrorist organization "successfully" hit the boxship Megalopolis with a "number of drones," and that the operation achieved unspecified objectives. Saree did not provide the date or time of the claimed strike. 

The Houthis have previously claimed long-range strikes in the Arabian Sea; their known attacks have been concentrated in the Gulf of Aden and the Red Sea, far closer to Houthi forces and the suspected Iranian spy ships that are believed to provide them with targeting assistance.

AIS tracking provided by Pole Star shows that Megalopolis was under way in the Western Indian Ocean last week after rounding the Cape of Good Hope, bound for a destination in the Mideast. On the night of the 16th, her speed dropped to zero knots and her heading briefly reversed; she then changed course towards Salalah, arriving on the 18th and departing again on the 20th. As of Monday, Megalopolis was transiting the Strait of Hormuz, bound for Jebel Ali. 

The Royal Navy's UK Maritime Trade Operations (UKMTO) division has reported no security incidents in the region since October 10. Maersk, the charterer of the Megalopolis, has not confirmed any strike on the vessel. 

In July, Yahya Saree claimed that Houthi forces had attacked the U.S.-flagged Maersk Sentosa in the Arabian Sea. Maersk and UKMTO confirmed an attack, but put the location in the Gulf of Aden, much nearer to shore. 

 

Engine Fire Aboard Product Tanker in Singapore Anchorage

tanker fire
Engine fire aboard product tanker anchored off Singapore (Civil Defence Force)

Published Oct 21, 2024 12:54 PM by The Maritime Executive

 

 

The Maritime and Port Authority of Singapore and the Civil Defense Force responded to a fire aboard a tanker shortly after it arrived in the Singapore anchorage this morning local time. According to the authorities, the 22 crewmembers of the Med Atlantic (26,234 dwt) were successfully evacuated from the product tanker, and the fire was quickly brought under control.

The product tanker registered in Malta for Sea Tankers 4 and managed from Istanbul shows on its AIS signal that it had shifted over from neighboring Malaysia into the Singapore anchorage this morning. The authorities in Singapore received reports of a fire that was said to have started in the engine room and moved into the funnel around 10:30 a.m. local time.

 

 

The MPA reports one of its patrol crafts was dispatched along with two Police Coast Guard craft, three Singapore Civil Defence Force marine firefighting and rescue vessels and two tug-boats to render assistance and ensure navigational safety.

The Defence Force said they were initially conducting boundary cooling from their three fireboats to cool the exterior of the vessel. After conducting a defensive firefight, teams boarded the vessel which was built in 2011 when the Defence Force said there were no visible signs of fire. The teams used water jets to ensure there was no fire still on board the vessel and later they were reported to be conducting a “damping down” operation to ensure the fire did not rekindle.

The tanker remains listed as “not under command” on its AIS signal but the crew was reported safe and beginning to assess the damage. The MPA warned vessels about the danger but reported there was no disruption to vessel traffic in the area.

 

Largest Suction Sail System to be Installed on General Cargo Vessel

suction sail
The tallest suction sail to be installed on a general cargo ship will be fitted in mid-2025 (Bound4blue)

Published Oct 22, 2024 7:35 PM by The Maritime Executive


 

Amasus, a European shortsea, bulk, and general cargo company, and Spain’s bound4blue have agreed to a second installation of the company’s suction sail technology, eSail, on one of the company’s cargo ships. The installation, which will be the second for Amasus, will also be the largest suction sail system on a general cargo vessel.

Under the terms of the newly announced agreement, a 22-meter (72-foot) unit will be retrofitted on a 90-meter (295-foot) cargo ship. They did not name the vessel but reported it is 3,000 dwt. The installation is scheduled for mid-2025 at the Astander Shipyard in Santander, Spain.

It is the latest advancement for a suction sail one of the competing technologies in the emerging wind-assisted propulsion category. Bound4blue highlights that its technology produces six to seven times more lift than a conventional sail.

The autonomous system works by dragging air across its aerodynamic surface to generate propulsive force. The suction sail uses an aerodynamic shape and is manufactured using marine-grade materials. It has a porous area of the skin through which the air is sucked while a suction fan at the top of the structure is responsible for sucking in the air to ensure the airflow remains attached to the sail. A flap is positioned using an electric motor to optimize the airflow and the entire structure rotates. 

It will be the second installation for Amasus working with Bound4blue. The company reports it decided to proceed with the new installation after assessing the impact of its first suction sails on Eems Traveller (2,850 dwt) which began testing in July 2023. They placed two suction sails standing 56 feet off the deck on the stern of the vessel.

Third party validation of the performance of the eSail on the vessel was provided by Lloyd’s Register, which reviewed the data from the operation of the Eems Traveller. They report the data is now being finalized and the figures will be released shortly.

Started in 2015, Bound4blue has developed several different models and sizes of its suction sail. They report the different models are well suited both for retrofits and newbuilds and can be applied to vessel segments, including, tankers, bulkers, Ro-Ros, cruises, ferries, gas carriers, and general cargo vessels. The company reports that shipowners and operators that have signed contracts in the past year include Eastern Pacific Shipping, Odfjell, Marflet Marine, and Louis Dreyfus Company.
 

Nuclear Transport Ship to Test UK’s First Rigid Sail

wingsail on nuclear transport ship
Pacific Grebe with the retrofitted wingsail (Image copyright CDFmedia.co.uk courtesy of NTS)

Published Oct 22, 2024 3:34 PM by The Maritime Executive

 

 

In a unique collaboration, a ship designed to transport spent nuclear fuel operating for the UK government will also become the first to trial a new wind-assisted propulsion technology. Pacific Grebe (4,900 dwt) arrived in Southampton, UK yesterday October 21, sporting the first-of-its-kind installation of the FastRig designed by a UK company Smart Green Shipping.

The ship, which was built in 2010, is one of the three designed specifically to transport nuclear material. It measures 341 feet (104 meters) and has four specially designed holds each shielded to carry up to a total of 20 flasks of nuclear waste. The ship operates for Nuclear Transport Solutions (NTS), part of the UK’s Nuclear Decommissioning Authority, a public body responsible for the clean-up of the UK’s nuclear legacy. The ship sails more than 10,000 miles on its voyages without stopping and operating at a speed of up to 14 knots.

The ship has left its home port of Barrow-in-Furness and will be running sea trials this month after receiving the first 20-meter (65-foot) FastRig, a retractable, rigid wing sail. The sail is manufactured from 100 percent recyclable materials. 

According to Smart Green Shipping (SGS), which is working with the University of Southampton on testing, the rigid wing will be capable of reducing fuel consumption by up to 30 percent. It employs an intelligent, autonomous system making it easy to operate, and requires a limited amount of deck space. It also can be retracted to enable port operations.

“NTS is allowing SGS to undertake formal sea trials which gives us accurate, independently verified performance data against which we can corroborate the digital models and tank testing results the University of Southampton have been developing,” explained Diane Gilpin, CEO of Smart Green Shipping.

The system underwent its first tests during the voyage to Southampton. The retraction system was demonstrated during presentations in Southampton.

 


The rigid sail is 65 feet high (Image copyright CDFmedia.co.uk courtesy of NTS)

 

The FastRig wingsail the companies explained is a lightweight, retractable solution that uses specialist sensors and automated technology to adapt to changing weather conditions, allowing it to deploy and retract as necessary to ensure both fuel efficiency and safety.

“While this is still a trial at this stage, it’s the first real-world application of this wing and could change the way all ships sail, drastically reducing emissions and fuel usage across the industry,” said Pete Buchan, NTS’s Managing Director of Shipping. “We’re really proud of the role we’ve had in this project and can’t wait to see the final results of the trial.”

The trial is part of the growing number of ships and shipping companies looking to wind-assisted propulsion in their effort to enhance sustainable operations. Smart Green Shipping reports it has received a further $2.6 million in funding from Drax, a UK renewable energy company, and a matching grant from the UK’s Clean Maritime competition.


Soft Sails to be Studied by Orix and Sumitomo in Bulker Demonstration

soft sail wind assisted propulsion
Demonstration project will test soft sails on a bulker (Sumitomo Heavy Inudstires)

Published Oct 21, 2024 3:43 PM by The Maritime Executive

 

In a new project, Japan’s Orix Corporation working with Sumitomo Heavy Industries plans to study the feasibility and conduct a demonstration using soft sails to provide wind-assisted propulsion on a larger bulker.  It is a new version of wind-assisted propulsion for large commercial ships which so far has mostly focused on larger solid sails and wing foils as well as rotors.

The companies are working with North Sails Japan which manufactures high-quality soft sails that have been used on award-winning racing boats in the Olympics as well as other world competitions as well as on long-distance and cruising sailboats. North Sails Japan reports it is developing a furling sail made of UltraPE (Dyneema) laminated cloth for the text aboard one of Orix’s existing vessels.

Sumitomo Heavy Industries and North Sails Japan will handle the design of the wind-assisted propulsion system, including the soft sails, as well as the analysis of the operational data when the sails are in use. Orix will be responsible for the installation of the soft sail and for measuring and collecting fuel efficiency data during operation. The energy-saving effects will be calculated as theoretical values based on the data obtained from this experiment.

The wing-shaped soft sails will be installed on the derrick post of the bulk carrier to obtain wind power as assisting power for the ship’s propulsion. The soft sail, made of advanced polyethylene fiber fabric, will measure approximately 26 feet in height by 43 feet in width and the angle of attack can be adjusted depending on the wind direction. The actual number of sails installed may differ from the illustration they noted.

The companies report through this feasibility study, that the aim is to improve the fuel efficiency of existing vessels while deepening their knowledge in utilizing wind-assisted propulsion power. They look to advance efforts toward the practical application of this system.

 

UNCTAD: Maritime Chokepoints Are Trade's Biggest Vulnerability

The tanker Sounion burns in the Red Sea, August 28 (EUNAVFOR)
The tanker Sounion burns in the Red Sea, August 28 (EUNAVFOR)

Published Oct 22, 2024 3:38 PM by The Maritime Executive

 

 

In its annual review of world maritime commerce for 2024, UN Trade and Development (UNCTAD) honed in on the risk of disruption at key maritime chokepoints. Protracted challenges at the Panama Canal and the Strait of Bab el-Mandeb have raised policymakers' awareness of the risk of a shutdown on the world's busiest trade lanes, and the potential knock-on effects for shippers and consumers. 

The Red Sea is the most important example, and has gotten gradually worse since Yemen's Houthi rebels began attacking shipping in the fall of 2023, despite interventions by Western powers. By the end of the year, traffic through the Suez Canal was down by half, and by mid-23024 it was down by 70 percent. As more and more ships took the longer Cape of Good Hope route, global ton-mile demand went up by three percent and container ship demand by 12 percent. 

The shutdown of the Red Sea has been a financial lifeline for ocean carriers, as it absorbed excess vessel capacity and returned freight rates and profit margins to higher levels. For shippers, it has meant delays and higher costs, some of which are passed along to consumers. Just the cost of extra EU ETS emissions charges comes to $400,000 per voyage for a Megamax-24 on the Far East-Europe route, according to UNCTAD. 

Disruption notwithstanding, UNCTAD predicts uninterrupted growth in maritime trade. By tonnage, seaborne commerce increased by 2.4 percent in 2023, and is on track to grow by another two percent this year. On average, UNTAD forecasts 2.4 percent annual growth per year for the next five years, despite an "exceptionally daunting operating landscape" because of geopolitical conflict. 

This will drive continued increases in freight rates, boosting inflation. Container rate increases alone will push consumer prices up by an average of 0.6 percent worldwide by 2025, according to UNCTAD. For small island states and least developed nations, which have less ocean freight connectivity, that number is closer to one percent. 

In response to the risk of disruption and inflation, UNCTAD recommended:

- International cooperation to minimize the impact of geopolitical risk on trade lanes
- Earlier prediction and faster rerouting when disruptions occur
- Regional trade cooperation to reduce dependence on costly long-distance routes
- Streamlining supply chains to reduce ton-mile requirements
- Digitizing port operations to improve efficiency across the board

 

G7 Asks Maritime Service Providers to Comply With Russian Tanker Sanctions

Cash

Published Oct 22, 2024 6:55 PM by The Maritime Executive

 

 

After a series of news reports on Russian "shadow fleet" oil tanker transactions in the UK, the G7 Price Cap Coalition has issued new guidance on "enhancing due diligence" for tanker brokers and insurers. The guidance lays out well-known risk factors for a potential transaction with a sanctioned counterparty - the kind of transaction that often brings outsize profit margins.

On October 11, the BBC reported that the UK government is investigating 37 businesses and entities for possible breaches of sanctions on Russian oil shipping. Some of these firms are in the insurance sector, according to BBC, and at least one shipbroker was named separately by the Financial Times. 

Companies in the G7 nations are prohibited from assisting Russian oil shipping unless the price per cargo is less than $60 per barrel. The measure was designed to ensure that Russian oil continued to flow to the global market, albeit at lower cost, keeping energy prices stable while suppressing Russia's revenue stream. Since Russian oil now sells for more than $60 on the open market, the International Group has concluded that the cap is effectively unenforceable.

To evade the cap, an estimated 70 percent of Russian oil shipping has shifted to a "shadow fleet" of aging, questionably-insured tankers with obscure ownership. According to the FT, at least one British shipbroker has assisted - if unwittingly - in this fleet's creation by facilitating the sale of older Western tankers to Russian-aligned interests. (The firm named by the FT maintains that it is fully compliant with all legal requirements.)

To push back on the rise of the shadow fleet and to curb Western assistance to its growth, the Price Cap Coalition issued familiar recommendations to maritime stakeholders. In short, the coalition recommended working with tanker owners who have legitimate business practices. These include real P&I insurance, with enough financial strength to cover oil pollution liability; real classification from an IACS member; consistent use of AIS; no signs of questionable STS transfers; and rational transaction costs that are not inflated to hide the true price of the oil cargo. Ships that trigger concerns should be reported to national authorities.  

"Those involved in the sale and brokering of tankers should remain vigilant of potential evasive or illicit purchase structures and enduses, especially for aging tankers, including tankers previously designated for recycling," the coalition advised. "Stakeholders should be aware that owners and operators of sanctioned vessels may attempt to engage in deceptive practices to obfuscate their status, such as renaming, reflagging, obscuring their IMO number, or falsifying documents, increasing sanctions risk for non-sanctioned counterparties."

The coalition advised that maritime service companies should set up internal training programs to warn their employees about shadow fleet risk factors and compliance requirements.  

Ahead of the coalition's new guidance, Panama announced that it would change its regulations to allow deflagging sanctioned vessels on an expedited basis. In the past, the legal process would take months to cancel a single vessel, and a lingering accumulation of sanctioned ships on the Panama registry had attracted attention from Washington. 

The UK has spearheaded a separate drive to query the insurance status of suspicious tankers as they pass through territorial seas. The U.S. has endorsed this safety petition, along with several dozen European countries. 

 

Miami Fire Dept. Evacuates Anchor Handler's Master After a Serious Fall

Atlantic Power (courtesy Atlantic Oceanic)
Atlantic Power (courtesy Atlantic Oceanic)

Published Oct 22, 2024 4:26 PM by The Maritime Executive

 

On Monday, a Miami search and rescue unit medevaced the captain of a Jones Act anchor handler off the coast of Florida after he suffered a fall. 

At about 0920 hours on Monday, the captain of the MPSV conversion Atlantic Power fell down a ladderway a distance of about 12-15 feet and collapsed on deck. He was unable to move, so the vessel called for assistance. Miami Dade Fire Rescue and Coast Guard Station Miami Beach dispatched small response boats to the scene, but decided not to carry out a ship-to-ship transfer because of the risk to the patient. Miami-Dade Fire Rescue sent a helicopter aircrew with a paramedic, and this response team successfully hoisted the master off the vessel at about 1000 hours. 

The master was flown to Jackson Memorial Hospital's trauma center, and he was awake and alert on arrival, according to local media. He is expected to survive, 7News Miami reports.

Atlantic Power (ex name Gerard Jordan) is a converted DP2 anchor handler owned by Atlantic Oceanic, a firm that specializes in Jones Act-compliant vessels for the U.S. offshore wind market. The firm has a fleet of U.S. and British-flagged vessels for a variety of roles in offshore wind development, including site survey, boulder removal and ROV operations. 

 

U.S. Navy Sub Gets Public Award for Top-Secret Mission

USS Washington returns to Portsmouth, Sept. 2024 (USN)
USS Washington returns to Portsmouth, Sept. 2024 (USN)

Published Oct 22, 2024 7:44 PM by The Maritime Executive

 

 

The Navy has awarded a submarine crew a high-profile public commendation for a mission that it cannot disclose. USS Washington, a Virginia-class fast attack sub based in Norfolk, has been awarded the Presidential Unit Citation for long-endurance secret missions it carried out on a deployment to Europe. It is far from the first time that the Navy has celebrated the covert activities of the submarine force, which has racked up dozens of top honors for unspecified missions that usually - but not always - remain concealed in the depths. 

In a statement, the Navy gave hints about the circumstances and the importance of the intelligence operation, but not the location or the objectives. Vice Adm. Rob Gaucher, commander of Submarine Forces, said that Washington's crew entered high risk environments on "vital national level missions." 

They obtained "sensitive and unique intelligence information" over the course of three unusually long missions and 37,000 nautical miles of transit time. The sub set a new record for days on station for any East Coast sub deployment, thanks to careful husbanding of stores, and the crew stayed on task through "long periods without readily accessible support."

"The crew spent countless hours on training, maintenance, and certification," said Senior Chief Machinist’s Mate Austin Gilbert, Washington’s chief enlisted officer. "While deployed, their resiliency was crucial to their success."

The sub's area of operation was not explicitly disclosed, but it called at Faslane and again at Grotsund, a fjord near Tromso in Norway's Arctic north. USS Washington was also awarded the new Arctic Service Medal for "exceptional service and dedication during operations in the strategic Arctic region."

The "silent service" has racked up many Presidential Unit Citations over the years, and a famous intelligence-gathering sub holds the service-wide record. USS Parche, the most decorated vessel in Navy history, racked up 10 of them over 30 years in service (along with dozens of other awards). Parche was one of several heavily-modified attack subs outfitted to wiretap Soviet subsea cables, a task she famously performed within Russian territorial waters in the Sea of Okhotsk.