Wednesday, December 18, 2024

Tyson Foods fights to silence debt-stricken farmers after slashing contracts

Egan Ward, 
Missouri Indpendent
December 18, 2024 

A farm near Sikeston on April 17 where the owner raised chickens before market changes (photo by Daniel Byrd, for Investigate Midwest).

This story was produced by the Watchdog Writers Group in collaboration with Investigate Midwest.

DEXTER – On an early August morning in 2023, Shawn Hinkle received a call from one of his technicians at Tyson Foods who, through tears, told him the company’s plant in Dexter was shutting down.

Hundreds of jobs at the poultry slaughterhouse would be lost and farmers like Hinkle, who contracted with Tyson to raise egg-laying hens, would be out of business.

A decade earlier, Hinkle borrowed $2.3 million to build two chicken houses on his land. After struggling to keep up with Tyson’s standards and investing in his farm, Hinkle now owed $2.8 million and faced the prospect of losing it all in bankruptcy.

Tyson said the Dexter plant closure was part of a national effort to streamline production and boost profits — the company also closed three other poultry plants and two beef packing plants.

But Tyson’s explanation didn’t make sense to Hinkle and several other farmers who, in December 2023, sued the giant meat company for breaking its contracts.


As the lawsuit moves forward, a Watchdog Writers Group analysis of documents filed in the case, in partnership with Investigate Midwest, reveals Tyson coordinated closely with Cal-Maine Foods, the company that ended up buying the Dexter plant. That coordination prevented farmers from continuing their same operations with another Tyson competitor.

Documents also show Tyson tried to prevent its former contract farmers from seeking legal remedies over the broken contracts, and has possibly attempted to discourage farmers from speaking with federal officials and journalists.

Tyson Foods declined to answer detailed questions about the allegations of the lawsuit.

After purchasing the Dexter plant, Cal-Maine offered contracts to local farmers if they retrofitted their farms to raise table egg-laying hens rather than chickens for meat. Unlike many area farmers, Hinke raised egg-laying hens to produce more chicks, which were sent to other farmers. Raising hens for Cal-Maine would have required a significant operational overall for Hinkle and other farmers.

But Cal-Maine’s offer came with a catch: The farmers would have to agree not to sue Tyson Foods for any losses because of the plant closure, according to court filings.

In another sign of coordination, Tyson provided the data that Cal-Maine used in its offer to farmers, according to a copy of the offer letter obtained by the Watchdog Writers Group.


By working with Cal-Maine, Tyson prevented the Dexter plant from being purchased by a competing poultry meat company, like Purdue Foods or Sanderson Foods, according to attorneys representing Hinkle and his neighbors. Local poultry farmers could have transitioned more easily to new contracts with those competitors that produce meat, rather than eggs for consumption.

“Why on earth would Tyson do this?” Russ Oliver, a local attorney representing Hinkle and his neighbors asked during a court hearing in June. “Because if you keep it secret, then Purdue doesn’t find out about your plans. Then Sanderson doesn’t find out about your plans. And you gain a market advantage over the rest of the competition because they have six plants that are all of a sudden stopping production.”

Tyson Foods, which produces about one-fifth of all meat in the U.S., has faced numerous lawsuits and federal investigations over accusations of price fixing.

In 2016, Tyson was sued in civil court by large meat wholesalers who claimed the company cut supplies to inflate chicken prices. Tyson settled that case for $221.5 million.
In 2020, the U.S. Department of Justice sued large poultry companies, including Tyson, for allegedly colluding with competitors to raise prices. The case ended in a mistrial in 2022.
In 2021, producers in Oklahoma, Kentucky, Alabama, Mississippi, West Virginia and Texas filed a lawsuit that alleged Tyson and Perdue Foods shared grower pay data in order to suppress wages. Both companies settled for $35.8 million later that year.
None of these actions have significantly curbed Tyson’s market power, which, together with its next biggest competitor, Pilgrim’s Pride, controls about half the national market for chicken. In the late 1970s, more than 40 companies controlled half the market, according to the USDA.

The latest class action lawsuit filed by Hinkle and other Missouri farmers claims Tyson and Cal-Maine signed an agreement restricting how the Dexter poultry complex can be used for the next 25 years.

Since the lawsuit was filed, Hinkle and his attorneys also believe Tyson has tried to intimidate farmers and suppress media coverage. Tyson asked the court to compel Hinkle and others to reveal all contacts and conversations with officials at the U.S. Department of Agriculture, which regulates antitrust laws on behalf of farmers.

Tyson has also asked the court to make Hinkle and others reveal any and all contacts and conversations with journalists. Hinkle said he is undeterred and will continue seeking compensation through the lawsuit, which does not request a specific dollar amount.


“None of this is anything that we wanted. I didn’t ask for a year’s worth of not sleeping,” he said. “Then again, I’m not going to sit back and get screwed.”


Tyson’s promise of prosperity comes at a cost


Timothy Bundren’s chicken barns are all standing empty since Tyson cancelled his growing contract last year. His operation near Harrison, Arkansas, was photographed on March 31 (Julie Anderson, for Investigate Midwest)

Hinkle’s career with Tyson Foods began in 2013 when two managers from the plant said they had an offer that would change his life.

They said Hinkle could build a massive factory farm on his land — using borrowed money that Tyson would help him obtain — where he could raise tens of thousands of chickens at a time under contract for Tyson and earn a stable income for decades.

Hinkle lived on a sprawling cattle farm handed down to him from his father, a farm where Hinkle had been doing daily labor and chores since he was 12 years old. By the time the Tyson managers came to visit, his 12,000-acre spread was entirely paid off.


Hinkle was hesitant about Tyson’s offer. He had heard stories about farmers being forced to borrow money and upgrade equipment, only to have contracts later terminated without warning.

But the Tyson managers assured him those were old stories.

Hinkle’s original fears came true a decade later when Tyson closed the Dexter plant.



Tyson’s tactics: Countersuits and secret deals




When Hinkle decided to sue Tyson, he wanted a lawyer who understood his perspective. He found that with Russell Oliver.

Born and raised in Puxico, Missouri (15 miles from Dexter), Oliver was a farm boy himself. Before becoming the district’s prosecuting attorney, a young Oliver dreamed of carrying on the legacy of his family’s farm. When Oliver’s father died in 1974, several of his family members dropped their individual pursuits for the sake of the farm. So, when Hinkle approached him, heartbroken and desperate for answers, Oliver felt he had no choice but to help him.

“Everything about this (case) hits so close to home, it’s so much more than lawsuits and money,” Oliver said. “I see my neighbors that share the same identity that I share going through something like this — there’s no way I can’t fight for them.”

In addition to Hinkle, the lawsuit includes four other farmers once under contract with Tyson: Jessie Bridwell, Richard and Samantha Green, as well as R&S Green Farms LLC. The plaintiffs allege that Tyson deliberately misled them by shutting down the Dexter Complex, which caused severe financial damages.

During an April 29 hearing in Stoddard County, Tyson’s lawyers pushed back on the allegation, pointing out that the farmers are still receiving payment from Tyson to this day. This compensation is called outtime payments and refers to the money given to farmers to cover the time it takes to remove birds, clean out their houses and bring in new birds.

Outtime payments are $0.02 per square foot of chicken houses, significantly less than a monthly payment. Hinkle said the payments have been inconsistent and are far lower than what’s needed to cover his debt. He said Tyson technicians assured him that it would take no longer than four to six weeks to receive outtime payments; however, Hinkle said payments sometimes took as long as 20 weeks to show up.’

“My outtime pay doesn’t even cover the electric bill, so what are we supposed to do?” he said. “You’re always in a tumble of not knowing what to do. You can’t budget anything, it’s just a constant state of chaos.”

The lawsuit also claims Tyson knew about the plant closure as early as 2021 when the company filed a disclosure with the Securities and Exchange Commission stating that it had “identified” and “targeted” $1 billion in recurring savings year to year as part of their new “Productivity Program.”

The lawsuit also claims Tyson tried to thwart competition with its sale of the Dexter plant to Cal-Maine Foods, which included an agreement restricting how the plant could be used.

Hinkle’s lawyers alleged that they have a copy of the agreement, and they quoted from it in a court filing. However, the contract language was redacted in the public court filing.

The agreement between Tyson and Cal-Maine “has eliminated (and will eliminate for 25 years) any competition in the Dexter market area for the services of chicken growers,” the lawsuit claims. The farmers believe Tyson intentionally prevented the sale to a competitor in order to cut supply and raise prices on poultry. The exact mechanisms by which the contract might restrict competition were redacted and remain under seal, according to court filings and Hinkle’s attorneys.

In August, Tyson Foods countersued two Dexter farmers — Elija and Melissa Skaggs — claiming their case should be dismissed because the farmers turned down a chance to sign new contracts with Cal-Maine.

In the countersuit, Tyson acknowledged the agreement’s existence by saying it had terminated it in July. Tyson said that it had originally signed the agreement because it was worried that Cal-Maine might buy the Dexter plant but then quickly sell it to a competing company that would raise “broiler” chickens for food.

If that happened, Tyson would have essentially sold the plant to a direct competitor. Tyson said in the court filing that the company later became “comfortable that Cal-Maine was not trying to flip the Dexter complex,” so Tyson terminated the property use-agreement.

Brandon Boulware, an attorney from Boulware Law representing Dexter’s farmers against Tyson, said terminating the agreement didn’t help the farmers, because the plant had already been transformed into a table-egg producing facility rather than one that produced broilers.

“The damage has already been done,” Bouleware said.

Tyson’s agreement with Cal-Maine has also drawn the attention of state and federal lawmakers.

U.S. Sen. Josh Hawley, Missouri’s senior Republican senator, said Tyson’s CEO, Donnie King, personally reassured him in 2023 that Tyson would not prevent a competitor from buying the Dexter plant.

“You misled me,” Hawley wrote in a July 9 letter to King. “These are serious allegations, and the people of Missouri deserve to know the truth.”

Missouri Attorney General Andrew Bailey echoed Hawley in an Oct. 3 letter to King, where he stated that it is “paramount that you do everything in your power to either keep the facilities open or sell to any interested party, including a competitor.”

When Hawley later learned about the property-use agreement between Tyson and Cal-Maine that Tyson kept from public filings, he called for it to be made public. The agreement was part of the larger sales contract between Tyson and Cal-Maine, and was not filed publicly with the county recorder of deeds, according to court documents. Bailey later joined the farmer’s lawsuit.


Confidential or concealed?



On June 26, the parties gathered in a small New Madrid County courtroom for a hearing. Behind the four lawyers for Tyson were seven empty wooden benches. On the other side, the plaintiffs’ legal counsel was made up of six lawyers, as well as Oliver’s son. Behind their table sat 11 people, many of them farmers in dirt-ridden boots and plaid dress shirts.

The 9 a.m. hearing was fiery from the outset. Of the 1,325 documents produced by Tyson Foods in the lawsuit, the prosecuting attorneys complained all three were being kept confidential. Tyson’s lawyers, led primarily by Zach Chaffee-McClure, argued that the opposing legal counsel had used some of the confidential documents without permission. They asked for the prosecuting lawyers, Brandon Boulware and Oliver, to be sanctioned.

Boulware and Oliver were quick to express their disbelief.

“This isn’t how we practice law in the (Missouri) Bootheel,” Oliver said. “(Tyson) wants to deflect, they want this to be about the lawyers and not the crimes.”

Boulware, who was from Kansas City, echoed Oliver’s sentiment. “I’ve been in law since 2005, and I have never been sanctioned; this is a first for me,” Boulware said. “I agree, this is not how things are done in the Bootheel, but it’s not how they are done in Kansas City, either.”

The motion was denied by the judge.

Later, Oliver argued that Tyson was concealing evidence of breaking the law. Oliver asked for four confidential documents to be made public, which included the sale agreement with Cal-Maine.

Oliver also said he had no plans to settle with Tyson and promised the judge that, if given permission, they would disclose these documents to government officials like Bailey, Hawley, USDA and the Department of Justice.

McClure, Tyson’s attorney, responded that his client cooperates with the federal government “all the time,” and that the company is allowed to designate any business or competitive document confidential.

Tyson’s other lawyer argued, using the example of a donut shop, that a business preventing the sale of its property to a competitor happens all the time and is not a crime.


Tyson’s market power under the microscope



If the allegations of antitrust violations are accurate, Tyson Foods could face serious consequences, said Claire Kelloway, program manager for fair food and farming systems at Open Markets Institute, a Washington, DC-based think tank focused on the dangers of monopolization.

“Tyson is a brand that comes with a lot of baggage for those covering the food industry,” Kelloway said. “Tyson gets some of the credit for turning the industry into this really vertically-integrated model that centralizes a lot of control over the supply chain in one company.”

Calling the poultry industry “extremely unfair” and “exploitative” of farmers, Kelloway added that Tyson’s size and political power make it difficult to hold them accountable.

“The industry needs a lot of sunlight and scrutiny,” she said. “Hopefully, the reforms and rulemaking keep coming until these antitrust laws are being enforced as intended.”

Just shy of two months after the hearing, Tyson’s legal counsel said it would depose Hinkle and the other plaintiffs.

Hinkle was also sent a more demanding request. Tyson filed a motion that would compel him to provide complete copies of all recordings and written communications that he and his attorneys had with media outlets. Tyson also demanded all of Hinkle’s communications with the USDA, which enforces antitrust law for farmers.

Bouleware said that his law firm had obeyed Tyson’s subpoena and was compelled to hand over documents related to the firm’s communication with journalists.

“It’s unprecedented for a defendant to seek documents, or communication between a lawyer and the press, rather than defend their own misconduct,” Boulware said.

Tyson also subpoenaed two news organizations: KFVS12, a television station in Cape Girardeau, Missouri, and Talk Business and Politics, a news website in Arkansas. In the subpoenas, Tyson demanded copies of all communications between reporters and Hinkle. The local media outlets that were subpoenaed refused to cooperate, Bouleware said, and Tyson has refused to enforce those subpoenas.

Both KFVS12 and Talk Business and Politics declined to comment.

With a trial date set for next June, a lifestyle of financial and emotional uncertainty persists for many of the farmers of the Dexter complex. For Hinkle and other plaintiffs, this lawsuit is personal. They, along with Oliver and Boulware, insist this has never been about money; it is about what is right and wrong.

“These companies need to understand that the days of building an empire on our backs and then just throwing us out like garbage is over,” Hinkle said. “Not anymore.”

In November, Tyson Foods reported its quarterly earnings. The news was great for Tyson shareholders. Tyson’s poultry division made a profit of $409 million for the quarter, compared to a loss of $267 million the year before.

 

Pakistan Restarts Project for Domestic Construction of Containership

Karachi Shipyard
Karachi Shipyard, the only domestic shipbuilder, will build the feeder ship (KS&EW)

Published Dec 16, 2024 5:48 PM by The Maritime Executive

 

 

The government through its Special Investment Facilitation Council (SIFC) has stepped in to revive a project to domestically build a containership as a feeder ship operated by the national shipping corporation. It would be the first large commercial vessel built in Pakistan in 40 years.

SIFC, which was launched by the government in 2023 to attract and facilitate foreign investment, reports after four months of work it was able to revive the project to build a 1,100 TEU feeder ship for the Pakistan National Shipping Company. 

“This project positions PNSC to expand its share in the national feeder container business, reducing reliance on foreign shipping companies, and boosting Pakistan’s economic self-reliance in maritime trade,” said SIFC announcing the agreement. “Valued at $24.75 million, this contract allows PNSC to acquire the vessel at a significantly lower cost than international market prices, saving millions in foreign exchange, and strengthening Pakistan’s maritime industry. “

The plan was first announced in February 2024 with a contract signing ceremony with the Karachi Shipyard & Engineering Works. As the only shipbuilder in Pakistan, the project was hailed as a step forward for the industry and the company’s international competitiveness. The yard highlights it is well equipped to build ships up to 26,000 dwt including bulkers, tankers, tugs, dredgers, ferries, and fishing vessels. 

Most of its work however is government contracts for frigates, corvettes, fleet tankers, and logistics ships for the Navy. Media reports indicate the last major commercial ship built domestically was in the 1970s.

Officials highlight that the Pakistan Navy is working with the Karachi shipyard and Pakistan National Shipping Corporation to make the project happen. 

SIFC said the project was stalled for 277 days but through proactive engagement and consensus building among the stakeholders, it has been able to move it forward. 

“The timely intervention of SIFC has been instrumental in reopening a historic chapter of commercial shipbuilding, marking a major step toward revitalizing Pakistan’s blue economy,” said the government agency. State media announcing the agreement over the weekend said it would help to reduce the dependence on foreign shipping companies.

No details were announced on the timing of the project. The vessel will be deployed in a feeder service. PNSC looks to expand its role in the container trade. Currently, the company operates a fleet of a dozen ships, mostly tankers and bulkers, with a total of just over 930,000 dwt.

 

Peru's New Chinese Megaport Reveals a Refined Belt and Road

China’s gain is America’s loss as deal wraps up control of key Latin American port for more than half a century.

New cranes arrive at the freshly-built port of Chancay, Peru, 2024 (COSCO)
New cranes arrive at the freshly-built port of Chancay, Peru, 2024 (COSCO)

Published Dec 15, 2024 8:28 PM by The Lowy Interpreter

 

 

[By Selwyn Parker]

China should be extremely grateful to the Peruvian government of Dina Boluarte. Courtesy of her Congress, which rewrote the rules of foreign ownership to make it happen after a long dispute with the country’s ports authority, China’s state-owned Cosco shipping giant has wrapped up exclusive use of Peru’s brand-new Chancay deep-water megaport for up to 60 years.

Numerous other benefits come with the deal. For a relatively small investment of about US$1.6 billion – its share of the total $3.6 billion cost – Cosco has a 60 per cent stake. China also gets an important new connection between China and Latin America in the form of two new container shipping routes.

Simultaneously, the logistics costs of China’s exports into the region will fall significantly, and the revenues of the operator, Cosco Ports, will increase. There will also be further opportunities for Chinese connections in the region, as President Xi Jinping made a point of mentioning when he officially opened the port in mid-November.

Once again, China’s Belt and Road strategy has beaten the United States to the punch. Located 80 kilometres from the capital Lima, the port symbolises America’s continuing and costly neglect of Latin America. It says much that Peru, a nation of 38 million, already has a substantially bigger trade with China ($36 billion) than it does with the United States ($21 billion) when it should, of course, be the other way around.

American neglect

Outgoing President Joe Biden’s state visits to Peru and Brazil in November are only his second to South America during his entire term. As the Atlantic Council points out: “At both stops he will seek to regain US momentum but without much to offer following Democratic Party losses last week.” Donald Trump made just one visit to this region of 33 countries in his last term and that was to Argentina.

Meantime, the port is a classic Belt and Road operation that takes more than it gives. While it promises to boost Peru’s exports into the Pacific, deliver $4.5 billion a year in revenues, and create 8,000 jobs, its construction was mired in controversy. Peru’s Ojo Público news outlet notes that Cosco and Volcan, a local mining group that shared construction, were able to seize a large maritime area that was supposed to be earmarked for defence, start work without any environmental studies (landslides during construction of a 1.8-kilometre-long tunnel buried homes), and bought up publicly owned land at less than a dollar a square metre. Compensation claims of local protest groups “were met with indifference and harassment”.

Senior US military are also concerned. Last year, General Laura Richardson of the US Southern Command warned that China is “on the 20-yard line of our homeland”, citing Chancay’s potential to be a dual-use facility, accommodating military vessels. If that were to happen, Cosco Ports would be in the middle.

“If a conflict were to break out in, for example, Taiwan or the South China Sea, this global network of 38 Cosco-operated ports could pose a serious logistical challenge for foreign militaries looking to move ships or supplies to the Indo-Pacific”, warns the Atlantic Council.

And it’s now 39 ports. In October, Cosco bought a substantial stake in Thailand’s largest container port, Laem Chabang, for US$110 million, according to its website. Extremely profitable according to its latest accounts, Cosco claims a 28 per cent profit on a fast-growing income, about a quarter from its overseas ports. As of late 2024, Cosco was building and/or operating ports in strategic waterways from the Aegean Sea to the Panama Canal.

The Atlantic Council believes it’s high time Western countries stepped in with their own capital projects in order to “counter malign Chinese (and Russian) influence in Latin America and the Caribbean”. These should be “attractive and affordable alternatives for regional economic development” that would be based on investment in projects that would serve as alternatives to Beijing-backed initiatives. The problem may be that Western-style capitalism cannot compete with China’s state-managed version. For instance, no American firm bid for the major expansion of Colombia’s Bogota metro, while three Chinese firms did.

Meantime, as the Lowy Institute’s latest Pacific Aid Map shows, China is refining its Belt and Road strategy in the Pacific through “a resurgence in new project commitments [that] signal a revival in Beijing’s engagement with the region”. In concrete terms, China is targeting specific countries with big-ticket grants rather than loans while handing out “high-frequency smaller grants administered through its embassies”. The Solomon Islands’ Constituency Development Fund has, for example, banked “a large-scale direct budget transfer” from Beijing, while Kiribati’s Social Stability Fund is a recipient of a substantial transfer, also courtesy of Beijing. As the Institute explains, each of those loans is “characterised by weak accountability mechanisms”. (No reference to these grants can be found on either country’s official government sites.)

Death knell

Peru’s new port may mark the death knell of another epic project – a gigantic, 125-kilometer-long canal through Nicaragua that would rival the Panama Canal. Originally mooted more than a century ago, it was revived in 2013 by a shadowy Chinese company called HKND that committed to building the canal before 2020. “World trade has been so developed today that it needs a new canal,” said its promoter Mr Wang Jing. Progress went as far as a 50-year right issued by the Nicaraguan government, renewable for a further 50 years, but little has been heard since.

Meantime, Peru’s new port expands Chinese economic influence deep into the country and beyond. Very much designed for the future, it can handle a million containers, six million tons of bulk cargo and, in a big boost for China’s automotive sector, 160,000 vehicles. A 1.8-kilometer-long tunnel leads straight to the Pan-American Highway. Next up will be a regional distribution hub that will essentially warehouse Chinese-made goods destined for South America.

In short, an economic beachhead for China in Latin America to the cost of the United States.

Selwyn Parker is an author and journalist specialising in Asia-Pacific, European and Latin American issues. This article appears courtesy of The Lowy Interpreter 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.

 

Port Tampa Bay Welcomes PLRS Crane to Improve and Expand Capabilities

Port Tampa Bay

Published Dec 17, 2024 11:30 AM by The Maritime Executive

 

[By: Port Tampa Bay]

Port Logistics Refrigerated Service (PLRS), which operates a cold storage and marine container terminal at Port Tampa Bay, debuted a new Konecranes Gottwald Generation 6 Mobile Harbor Crane today. The new crane was already at work, offloading cargo from the Dole Aztec, which arrived with fresh produce from Central America. The new crane, purchased by PLRS, is an energy-efficient addition to the facility's current two high-speed Gottwald models and will help to expand, quicken, and improve refrigerated and break-bulk cargo handling while enhancing heavy lift capabilities at PLRS.

“The new Gottwald crane adds to our significant and expansive capabilities and increases our customer support within the containerized, break-bulk and heavy lift cargo markets,” explained Nate Pitmon, Vice President & Executive Managing Director of Port Logistics Refrigerated Services.

“With addition of the new crane and the ongoing expansion of our facility, we are positioned to rapidly grow our customer base and are open to new market opportunities,” said Russell Smeback, CFO and VP Business Development for Port Logistics Refrigerated Services.

“As Florida’s population continues to grow, it is important to serve the state’s largest food and beverage sector, which sits in the Tampa/Orlando I-4 corridor. PLRS has been a terrific perishable cargo partner, and we celebrate the expansion of their capabilities with the addition of a third crane,” explained Paul Anderson, President & CEO of Port Tampa Bay.

“We are pleased to see our strategic partner, Port Logistics Refrigerated Services, make an investment that will improve their operational efficiencies. As our trade with Latin America grows, PLRS is staying ahead of the curve and ensuring they have the infrastructure ready to meet market demands,” said Raul Alfonso, Executive Vice President and Chief Commercial Officer.
PLRS is home to a 135,000-sq.ft. facility designed to handle large volumes of imported and exported cargo, specializing in fresh produce, proteins, and other perishable food and beverage commodities. Regional imports and exports are currently being shipped to and from Guatemala, Honduras, Mexico, and Costa Rica. The facility’s temperature-controlled warehouse contains separate refrigerated/frozen rooms containing more than 4,000 pallet positions, 250 reefer plugs expanding to over 500 in 2025, and a fumigation building. PLRS is a full-service, flexible, and independent self-contained port terminal operation situated on 13.7 acres along BERTH 219 and features its own Radiation Portal Monitor.

Additionally, the facility has an on-site customs inspection area, dedicated refrigerated fumigation services, and a customs lab, with the ability to expand to add ripening rooms and repacking services. It is conveniently located at Berth 219 and can simultaneously accommodate two large ships and barges while offering quick access to CSX railways and the I-75/275 and I-4 transportation corridor. The Tampa/Orlando I-4 Corridor is the state’s largest and fastest-growing market, as well as Florida’s distribution hub for the grocery/food and beverage sector. In addition, other Southeastern markets such as Atlanta and Charlotte are accessible by truck with one-day runs, improving supply chain logistics for the Southeast United States.

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

 

Italy's Counter-Migration Laws Force MSF to End Rescue Vessel Ops

MSF personnel engage in an at-sea rescue in the Central Mediterranean (MSF file image)
MSF personnel engage in an at-sea rescue in the Central Mediterranean (MSF file image)

Published Dec 15, 2024 8:10 PM by The Maritime Executive

 

 

Italy's counter-migration policies have forced the migrant rescue vessel Geo Barents to leave the Central Mediterranean route, operator Doctors Without Borders (MSF) confirmed Friday. 

MSF and its peer NGOs have operated a small fleet of rescue vessels in the central Mediterranean for years, finding unseaworthy migrant craft and saving the occupants before or during a sinking. Their stated mission is to reduce the route's fatality rate and to save the migrants from further abuse in Libya's notorious detention centers. In Italy, however, these rescue NGOs are often viewed as facilitators of migration, as the rescue vessels deliver hundreds of foreign nationals to Italian shores every time they dock. 

In January 2023, the Italian Parliament passed a controversial counter-migration law sponsored by the government of Prime Minister Giorgia Meloni. The law requires Good Samaritan rescue vessels to head to port immediately after each rescue, foregoing additional rescues even if they are in the immediate vicinity of people in distress. The law also allows authorities to designate faraway ports for disembarkation, effectively taking each rescue vessel off-station for days by making it transit from the Libyan EEZ to northern Italy after each rescue. The captains and NGOs are liable for fines of up to $50,000 and vessel impoundment for violations. Italy has vigorously enforced these requirements, repeatedly detaining rescue vessels for weeks at a time. 

For the past year, rescue NGOs have complained that Italy's counter-migration measures - along with port state detentions for alleged deficiencies - have impeded their work. The NGO Doctors Without Borders (MSF), which operates the rescue vessel Geo Barents, reported Friday that it will have to withdraw from its at-sea rescue mission because of the impact of repeated detentions. 

"Italian laws and policies have made it impossible to continue with the current operational model," MSF confirmed. 

In the past two years, Geo Barents has been detained four times and has spent a total of 160 days held in port, MSF reported. When not in port, the ship has spent about half of its operating hours transiting to and from officially-designated ports in northern Italy, more than 800 nautical miles away from the rescue zone.

MSF says that it has rescued about 94,000 people in the Mediterranean since 2015, including about 12,700 people in 190 operations aboard Geo Barents. The NGO's leaders say that they will look for ways to return to this mission in the future, but for now they are suspending rescue operations. 

"After careful consideration, we have come to the conclusion that it is untenable to operate the Geo Barents under such absurd and senseless Italian laws and policies," says Juan Matias Gil, MSF search and rescue representative. "The rescue capacity of humanitarian vessels is significantly under-utilized and actively undermined by the Italian authorities."

 

Great Lakes Bulker Refloated After Three Weeks Stuck on St. Lawrence

bulker refloated
Tim S. Dool was refloated after more than three weeks stuck on the St. Lawrence (SeawayNNY)

Published Dec 16, 2024 5:45 PM by The Maritime Executive

 


Canadian and U.S. officials are confirming that the efforts to refloat the Great Lakes bulker stuck in the St. Larence River for more than three weeks were finally successful. The Tim S. Dool (28,471 dwt) was pulled free of the shoal on Monday morning, December 17, and moved to a berth to undergo further inspections.

The 57-year-old laker was only able to be pulled free after crews had been lightering the vessel since last Thursday, December 12. The ship was sailing through the St. Lawrence Seaway with a load of wheat grain when it ran aground in U.S. waters southwest of the Eisenhower Lock, near Massena, New York. Because it is not a self-loader the operation required bringing in a crane and barges and a slow painstaking effort of taking grain off the vessel. 

The operation stopped on Sunday night when they felt a sufficient amount of weight had been removed. During the week, observers saw other vessels alongside servicing the ship and its crew.

Two tugs were seen tied to the Tim S. Dool this morning and at high tied they began pulling. The vessel was also using its power, and shortly after 0800, it was reported that they had the ship free of the shoal which was outside the navigation channel. The U.S. Coast Guard had reported that operations on the St. Seaway in the area would be suspended during the refloating operation. There had been speed restrictions on the river during the lightering operation but it had remained open to other vessels.

The tugs Ocean Tundra and Ocean Serge Genois accompanied the vessel to a berth in Wilson Hill, New York. The Coast Guard reported the vessel’s hull would undergo a further survey but so far there had been no signs of pollution from the ship or significant water ingress. The crew was not injured in the grounding.

It was unclear what caused the vessel to veer outside the shipping channel and ground on November 23. After an initial survey, three tugs had traveled from Montreal. They were unsuccessful in attempts to refloat the vessel leading to the decision to begin the lightering operation.

It comes as the St. Lawrence Seaway and ships race to move the final loads of the season before the shipping lane begins closing for the winter. Management announced the plan is to close the navigation season on January 5, 2025, in the Montreal-Lake Ontario section and on January 10 in the Welland Canal.

 

Salvors Arrive to Pump Fuel Off of Lost New Zealand Survey Ship

The submerged wreck of HMNZS Manawanui is visible, along with a light sheen, in this file image from Oct. 2024 (NZDF)
The submerged wreck of HMNZS Manawanui is visible, along with a light sheen, in this file image from Oct. 2024 (NZDF)

Published Dec 16, 2024 10:04 PM by The Maritime Executive

 

 

A deck barge with oil removal equipment has arrived in Apia to pump off fuel from HMNZS Manawanui, the New Zealand survey and salvage ship that ran aground and sank off Samoa on October 5. Due to a variety of contracting, permitting and logistics challenges, it has taken 10 weeks for the New Zealand Navy to select a commercial salvor and mobilize to the site, and work to remove the Manawanui's remaining fuel will finally begin once the last approvals are in hand and the contractor is ready. 

The salvors’ tug and barge have arrived in Apia, Samoa, and the salvor is now "working through the necessary approvals and permissions from the Samoan government to allow the fuel and other pollutants removal to commence." While awaiting administrative sign-off, the contractor's crew is working on setting up the fuel extraction equipment and clearing the decks for dive operations. 

The team also has to confirm locations for the barge's mooring system, which will hold it steady next to the reef while fuel is being pumped out. “The NZDF has specialist engineering and dive personnel providing oversight and professional advice to the salvors. This response is complex and technical, and it’s extremely important we do a careful and thorough job," said NZDF's cleanup operation commander, Commodore Andrew Brown. As in so many salvage projects, weather and sea state will drive the timeline and determine when and how much the response team can do. 
                                                                                                                                                                        
Ahead of the removal operation, local officials and elders held a "clearing the way" blessing for the barge and the dive team, in line with Samoan customs. Nearby residents are invested in the process: fishermen from local villages report that they smell diesel floating in with the tide, and some have discussed organizing a lawsuit to seek compensation. The NZDF has emphasized that any releases are small and that the vast majority of the ship's fuel is contained in its tanks.  

"The safe removal of fuel and other pollutants from HMNZS Manawanui is absolutely critical. New Zealand is determined to do the right thing as we know how important the coastal and marine environments are to the people of Samoa, especially those on the southwest of Upolu," said Commodore Brown. 

A preliminary investigation determined that the bridge team on Manawanui left the autopilot on and then attempted to make manual course corrections with the helm controls, allowing the ship to run aground. Three bridge team members could face disciplinary proceedings. 

 

Anemoi Completes Installation of Rotor Sails Onboard Vale VLOC

Anemoi Marine Technologies
Sohar Max with Anemoi Rotor Sails Image Credit: Anemoi Marine Technologies/Vale S.A.

Published Dec 17, 2024 8:00 AM by The Maritime Executive

 

[By: Anemoi Marine Technologies]

Anemoi Marine Technologies completed the installation of five Rotor Sails onboard the 400,000 dwt Very Large Ore Carrier (VLOC), Sohar Max, making it the largest vessel to receive wind propulsion technology to date. Sohar Max is a first generation Valemax, built in 2012 in China’s Rongsheng shipyard.

The project showcased global collaboration between Brazilian mining giant Vale S.A., Omani shipowner Asyad and UK-based Rotor Sail provider Anemoi.

The five 35 m tall, 5 m diameter Rotor Sails were retrofitted onboard Sohar Max at the COSCO Zhoushan shipyard in China, in October 2024. In addition, Anemoi has installed its bespoke folding deployment system, which will enable to sails to be folded from vertical to mitigate any impacts on the vessel’s cargo handling operations.

With the installation of the Rotor Sails, it is expected that Sohar Max will now be able to reduce its fuel consumption by up to 6% and cut carbon emissions by up to 3,000 tonnes annually. Sohar Max has just completed a voyage to Tubarao, during which the rotor sail test period began and testing will continue on future voyages.

“Since 2010, Vale has been operating with highly efficient ships and, in recent years, has fostered initiatives for the adoption of wind energy, which will play a central role in the decarbonization of maritime transport of iron ore,” says Vale’s Director of Shipping, Rodrigo Bermelho. “This project reinforces this tradition of Vale’s shipping area of investing in innovation and stimulating the modernization of the fleet to reduce emissions, in partnership with shipowners.”

“This is an exciting landmark project for Anemoi, and wind propulsion in general, as it demonstrates the significant impact wind energy has on even the largest vessels. Installing our Rotor Sails on this scale is a proud moment, showcasing our award-winning technology on another ore carrier,” said Nick Contopoulos, Chief Production & Partnerships Officer of Anemoi Marine Technologies. “We are thrilled to be a part of Vale and Asyad’s ongoing sustainability plans and to support their efforts in driving decarbonisation across the maritime industry.”

“We extend our deepest thanks to all our partners who made this retrofit possible. Together, we’re advancing meaningful change and driving the industry towards a greener future.” he added.

In October 2024, Vale announced it is also set to install Anemoi’s Rotor Sails onboard the 400,000 dwt VLOC NSU Tubarao, which is owned by NS United Kaiun Kaisha. The project, which is due for completion in September 2025, is expected to achieve significant reduction of fuel consumption and carbon emissions.

These projects with Vale are the latest in a series of ongoing installation projects Anemoi has with some of the world’s biggest shipowners and operators, which are looking to harness wind energy to increase the efficiency of their vessels by reducing fuel consumption and carbon emissions.

Rotor Sails are being increasingly embraced by shipowners who are aiming to achieve net-zero emissions and enhance the energy performance of vessels. Rotor Sails are a compact technology that offer a large thrust force to propel ships, helping them comply with pivotal international emission reduction benchmarks such as CII and EEDI/EEXI.

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

Kite Stacks for Vessel Propulsion

Kite stack
File image courtesy John Vetterli / CC BY SA 2.0

Published Dec 17, 2024 10:36 PM by Harry Valentine

 

 

Kite builders have for decades installed multiple kites on a single control line, forming an airborne train of kites that are usually flown in light wind conditions. Hobbyists have adapted frame-less kites to surfboard propulsion. Large-scale frameless kites have been adapted to propel boats using cross winds and trade winds, and there is scope to adapt such kites into trains to provide vessel propulsion.

Introduction

The history of kite-based boat propulsion dates back over several hundred years when frame kites were used to tow boats over short distances, when wind direction was suitable. At the time, kite frames were made from bamboo tied together with hemp or silk thread. Woven silk was used as flight material and hemp thread used as the towing line. The idea of installing multiple kites along a single line also dates back over a period of centuries, including to tow small boats over short distances across open sea.

Single large frame-less kites are presently used to assist in vessel propulsion, usually sailing parallel to a trade wind in the case of large vessels, or perpendicular to cross-winds as would be the case for passenger cruise and tour vessels. Precedent involving trains of kites made from bamboo and silk suggests suggest adaptation of large frame-less kites for modern vessel propulsion. Problems pertaining to kite train operation would revolve around storing the kites when vessels are in port, launching the kite train and retracting the kite train upon nearing the destination port.

Future Development

One of the research challenges would involve storage, launching and retracting trains of frame-less mega-size kites, while another challenge would revolve around development of suitable lightweight high-strength tether material capable of enduring severe ocean weather conditions. If a single kite can offer 2% of vessel propulsive requirements, research needs to establish whether a train of 10 kites at progressively higher elevations between 3,000 feet and 5,000 feet would be able to provide up to 20% of vessel propulsive requirements. There would be need for night time illumination of kite trains to alert small, low flying aircraft.

Borrowing from maritime history, clipper ships of a bygone century carried international trade sailing parallel to and propelled mainly by trade winds. Modern technology allows wind-powered vessels to use more powerful wind energy that blows at over double the speed, at over 3,000 feet elevation and offering many times the pulling force. Accessing high altitude wind energy that blows at double the speed difference between wind speed and boat speed would offer the potential of eight times the power from a parallel trade wind. There would be potential to install multiple kite trains at mast spacing to convert energy from cross-winds to propulsive power.

Material Requirements

Kites assembled into airborne trains for trans-ocean propulsion will need to combine high strength with light weight, be waterproof, be resistant to solar UV radiation and endure repeated operation during severe weather conditions over many years, using synthetic textiles such as Kevlar and woven glass fibre fabric. While frame-less wind-inflated kites have been made from nylon fabric and polyester fabric, repeated long-duration exposure to solar UV radiation will eventually break the chemical bonds that keep such fabric intact.

Lightweight, ultra-high strength and weather resistant tethers would connect airborne stacks of mega-size kites to the decks of ships. Multiple tethers made from any Kevlar, glass fiber, or carbon fabric would likely be suitable for vessel towing applications.

Super-Kites

Kite enthusiasts and hobbyists have developed kites controlled by multiple tethers, allowing a ground-based operator to adjust tilt and angle relative to wind direction to move the kite sideways or vertically. While most super-kites include a frame, frame-less super kites would need to form the basis of future vessel propulsion. When sailing parallel to trade winds, the width of the vessel would determine how many parallel kite-trains would pull the vessel.

Sailing in crosswinds allows for installation of kite-trains along the length of a vessel, at spacing equivalent to mast spacing on a wind-driven sail ship. There may be scope to experiment with an extended length catamaran vessel based on canoes, involving multiple kites intended for surfboard propulsion and installed at mast-spacing in parallel kite-trains along the length of the vessel, with up to 10 kites per tether.

Launching and Retrieval

When a ship is in port, stacks of propulsion kites would need to be retracted and contained in a storage area, perhaps inside an extension built into the upper region of the bow. Tugs would move the ship from quayside and from the port terminal area, where kites might be unfurled and launched skyward. The tethers would be unrolled from drum spools that could be coordinated to adjust kite tilt angle and flight elevation. Wind speed and tether tensile strength would determine flight elevation. 

On approach to destination ports, readjustment of kite tilt angle would reduce flight elevation and allow for reeling in of tethers. The combination of kite retrieval, folding and packing into storage would require a step-by-step procedure involving one kite at a time. Deck based machinery would need to repeatedly connect to each tether upstream of each kite to allow for each kite in the stack. The process would likely take 2 to 4 hours depending on the number of mega-size frameless kites in the stack, which could number as high as 50 kites.

Conclusions

 Kites and trains of small kites have been used to tow small vessels over short distances in Asia, when winds were suitable. It is theoretically possible for kite-trains or stacks of kites to gain access to sufficient propulsive power to propel large vessels. The main constraint will be the tethers or towing cables that will need to combine immense tensile strength with low weight and extended usable service life in repeated adverse weather conditions, at competitive cost.   

Top image courtesy John Vetterli / CC BY SA 2.0

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

 

Trapped Ships Freed as Temporary Locking Begins on Germany’s Moselle River

Moselle River temporary lock
First vessel transited today using the temporary lock system (WPA)

Published Dec 16, 2024 2:58 PM by The Maritime Executive

 


A temporary locking scheme was developed at the Müden lock on the Moselle River in an effort to free some of the trapped vessels after an accident destroyed the lock gates. While it was successful and the first vessel cleared the lock on Monday morning, December 16, the WPA Mosel-Saar-Lahn authority emphasizes it is a limited temporary solution until the lock can be repaired likely in the spring of 2025.

Starting late last week, the authority began making preparations and testing its temporary solution. On Saturday they performed a test locking operation to permit ships to begin to move downstream. Late last week they removed the two gates that were destroyed when a cargo ship failed to stop and hit the gates during a locking operation. The lock was drained and inspected, and some additional welding work was completed to prepare for the temporary operation.

 

Bridges normally used for maintenance are forming a temporary gate to permits vessels to travel downriver (WPA)

 

They are using the lock beams which are normally used to close the lock for maintenance and have to be set by crane. The process permits them to flood the lower chamber, move a vessel in, and lower the vessel, but they point out that once the operation begins they have no way to stop it. It takes about two hours to clear an individual vessel.

Monday morning, the GMS Allegria, a 262-foot (80-meter) cargo ship was first to proceed using the new method. The vessel is loaded with malting barley. Once the vessel was secured and the upper gate set, the water level began to decline. It took about 30 minutes to lower the vessel so that it could proceed on the Moselle.

The lock at Müden is critical as it permits larger cargo ships carrying metal scrap, agricultural products such as grain or rapeseed, tankers, and some passenger vessels access between the Rhine and the Saar and moving between Germany, France, and Luxembourg. A limited amount of the cargo can be moved by rail or road but parts of France and Luxembourg were stranded by the accident.

 

With the temporary gate in place, the damaged lock gates were removed last Friday (WPA)

 

Over the weekend, the WPA completed a survey with 74 vessels all moored above Müden and backed up to France registering for transit. Priority is being given to the ships laden with cargo, three tankers, and six passenger ships. In addition, five push barges registered, and two ships moving containers. A further 29 vessels are empty.

The authorities expect to be able to free five to six of the trapped ships a day with the goal of having them all out by the end of the year. They, however, noted that due to the shortened length of the lock push convoys are currently a problem. They no longer fit in the chamber.

Plans are underway for the full repairs. Many of the parts however will need to be individually fabricated leading to the expectation that it will take months to restore full operations and two-way vessel traffic on the Moselle.

 

Navigating Methane Slip: A Key Step Towards Maritime Decarbonization

Juha Kytola
Juha Kytölä, Director of R&D and Engineering at Wärtsilä

Published Dec 17, 2024 5:06 PM by Wärtsilä

 

 

As the shipping industry embraces liquefied natural gas (LNG) as a transitional fuel on the road to the 2050 net-zero emissions target set by the International Maritime Organisation (IMO), understanding and mitigating methane slip—the unintended release of unburned methane during the combustion process—becomes imperative for vessel owners and operators. According to Clarksons Research, in the first half of 2024, alternative fuel investments accounted for about one-third of all newbuild orders and 41% of the tonnage ordered. Key orders included LNG (109 orders, 51 excluding LNG carriers), methanol (49 orders), ammonia (15 orders), LPG (42 orders), and hydrogen (4 orders).

This surge in LNG adoption is partly driven by uncertainty surrounding the availability and pricing of more sustainable future fuels, which has supported continued interest and investment in LNG as a viable bridging fuel for the maritime sector.

Methane, the primary component of LNG, is a potent greenhouse gas with a global warming potential (GWP) approximately 28-34 times greater than carbon dioxide (CO2) over a 100-year period. Although methane slip occurs in relatively small percentages, its substantial GWP makes it a significant environmental concern, particularly in the context of maritime decarbonization.

Juha Kytölä, Director of R&D and Engineering at Wärtsilä, emphasizes the critical nature of addressing methane slip: “Methane has a much higher global warming potential than CO2. Reducing methane emissions is not just an environmental necessity but also a strategic move to enhance the overall sustainability and efficiency of maritime operations. By tackling methane slip, we assist with decarbonization efforts while also improving the economic performance of shipping fleets.”

Methane slip in the maritime industry

Compared to traditional marine fuels, LNG offers notable environmental benefits, including lower CO2 emissions, virtually zero sulfur emissions, and a significant reduction in nitrogen oxides (NOx) by approximately 85%. Additionally, LNG infrastructure continues to expand with little sign of this slowing in the immediate future, providing a strong argument for ship owners weighing up the practicalities of potential emissions reduction pathways for vessels.

However, the long-term viability of LNG as a marine fuel is contingent upon effectively addressing methane slip. Elevated methane emissions undermine the environmental advantages of LNG, posing a challenge to the industry's decarbonization objectives. Consequently, reducing methane slip is not only an environmental imperative but also a matter of operational efficiency and cost-effectiveness for ship owners.

Addressing methane slip requires an approach that encompasses advancements in engine technology, combustion efficiency, and fuel management. Leading the charge is Wärtsilä, a prominent player in marine engine manufacturing, which has developed innovative solutions to minimize methane emissions.

Wärtsilä’s NextDF technology enhances combustion efficiency, ensuring more complete fuel burn and thereby reducing methane slip and NOx emissions significantly. “By optimizing fuel distribution within the combustion chamber, NextDF ensures that each cylinder operates at peak efficiency, drastically minimizing the chances of unburned methane escaping into the atmosphere. This not only helps in meeting regulatory standards but also significantly enhances the economic viability of using LNG as a marine fuel,” Kytölä explains.

The role of bio-LNG in future fuels

While LNG serves as an effective transitional fuel, the maritime industry is also exploring the potential of Bio-LNG to further mitigate its carbon footprint. Bio-LNG, derived from sustainable biomass sources, offers a drop-in solution compatible with existing LNG infrastructure and engines. This compatibility facilitates a seamless transition to lower-carbon operations without necessitating significant retrofits or additional investments.

Kytölä continues: “Ship engines that use LNG can later transition to biofuels, such as biogas, without needing major retrofits. This flexibility is crucial for the maritime industry’s long-term decarbonization strategy, as it allows for incremental improvements and the integration of more sustainable fuel options as they become available – and available in the quantities and locations required.”

The adoption of Bio-LNG is projected to grow, with estimates suggesting it could meet up to 3.1% of the shipping sector’s energy demand by 2030, increasing to 12.6% by 2050. When blended with fossil LNG, Bio-LNG’s contribution to energy demand coverage expands substantially, enhancing its viability as a sustainable fuel option. The flexibility of LNG engines to switch to Bio-LNG without major modifications positions Bio-LNG as a critical component in the long-term decarbonization strategy of the maritime industry.

Adding methane slip into the equation

The development of accurate methane emissions measurement and reporting protocols is crucial for establishing transparent and reliable emissions inventories. Enhanced measurement techniques will enable more precise monitoring and management of methane slip, facilitating better regulatory compliance and informed decision-making.

“Looking ahead, the maritime industry is likely to embrace a multi-faceted approach to reducing greenhouse gas emissions – not just focus on carbon emissions. This requires not only advancing engine technologies and adopting cleaner fuels but also implementing operational strategies that optimize vessel performance and fuel efficiency. Hybrid solutions, retrofittable engine upgrades, and the integration of emerging fuel technologies like ammonia and methanol further diversify the toolkit available to ship operators striving for sustainability and all contribute towards achieving net zero,” Kytölä concludes.

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