It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)
Saturday, December 21, 2024
Party City Files for Bankruptcy a 2nd Time in Retail Déjà Vu
ByDorothy Ma
Shoppers wait for the opening of a Party City store in Richmond, California, U.S., on Wednesday, Sept. 22, 2020. Halloween is a key holiday for Party City, but with Americans wearing different kinds of masks and keeping their distance, its scary season could extend well beyond the end of the October. (David Paul Morris/Bloomberg)
(Bloomberg) -- Party City Holdco Inc. plunged into bankruptcy for the second time in two years and said it will begin to wind down its approximately 700 stores after sales faltered under the yoke of stubborn inflation.
The New Jersey-based retailer of party goods filed for Chapter 11 bankruptcy in Texas, court documents show.
The retailer said that it would retain more than 95% of its 12,000 employees to assist with the wind-down process in a separate release.
Party City had cut almost $1 billion in debt and slimmed down to about 800 stores nationwide when it exited its first bankruptcy in October 2023. But it wasn’t enough. Troubles resurfaced after the chain was hit by a triple-whammy of inflationary pressures on consumers, rising wages and competition from online sellers.
The retailer, which was taken over by senior lenders after its first bankruptcy, listed assets and liabilities of at least $1 billion in its Chapter 11 petition filed in Houston. Party City’s largest owners include Capital Group, investment firm Davidson Kempner and Silver Point Capital, according to court papers.
Party City may sell its brand name or other assets in Chapter 11 even though the company has said it intends to close its stores and wind-down operations. Bed Bath & Beyond sold its brand to e-retailer Overstock after filing for bankruptcy and shutting down its stores in 2023.
The company, which sells everything from costumes to birthday-cake toppers, posted a net loss of $91 million in the third quarter of 2023, according to its last public filing. A group of secured bondholders took it private after the restructuring.
Party City is not alone. Some discount stores, or so-called “extreme value” retailers, including Big Lots Inc. and the operator of Dirt Cheap, also fell into bankruptcy in 2024.
Anagram Holdings, Party City’s balloon-manufacturing affiliate, filed for bankruptcy in 2023. A group of Anagram lenders agreed to take over the balloon business in exchange for forgiving about $168 million in debt.
The case is Party City Holdco Inc., number 24-90621, in the US Bankruptcy Court for the Southern District of Texas.
(Adds information about bankruptcy, context starting in fourth paragraph.)
Nippon Steel Alleges Undue US Influence on Deal Review: Reuters
ByAyai Tomisawa
The United States Steel Corp. Clairton Coke Works facility in Clairton, Pennsylvania, US, on Monday, Sept. 9, 2024. United States Steel Corp. faces the prospect of being broken apart and sold in parts if Nippon Steel Corp.'s $14.1 billion takeover fails. Photographer: Justin Merriman/Bloomberg (Justin Merriman/Bloomberg)
(Bloomberg) -- Nippon Steel Corp. alleges the White House had undue influence over a national security review of the Japanese company’s $14.9 billion bid for United States Steel Corp. and threatened legal action if the deal is blocked, Reuters reported.
The accusation was made in a Dec. 17 letter, signed by counsel for Nippon Steel and U.S. Steel to the Committee on Foreign Investment in the United States (CFIUS), Reuters said, saying it had been given sight of the document.
CFIUS has a Monday deadline to approve the deal, extend the review, or recommend that President Joe Biden scuttle it, Reuters said.
Last weekend, CFIUS set the stage for Biden, who has long opposed the tie-up, to block it in a 29-page letter by raising allegedly unresolved national security risks, Reuters exclusively reported.
In its response, Nippon Steel and U.S. Steel allege that Biden improperly influenced the review’s outcome before CFIUS could reach its conclusions, Reuters said. They cited the opposition to the deal by United Steelworkers President David McCall, who endorsed Biden for re-election soon after the President announced his opposition to the merger, Reuters reported.
The long-delayed Flamanville 3 EPR reactor in Normandy in northern France has begun delivering electricity to the grid, EDF announced.
The Flamanville EPR (Image: EDF)
The utility said the 1630 MWe (net) pressurised water reactor was connected to the grid for the first time at 11:48 (local time) on Saturday.
EDF said in a statement: "Teams have achieved the first connection of the Flamanville EPR to the national grid ... the reactor is now generating electricity. Since the first nuclear reaction on September 3, 2024, EDF teams have conducted a series of tests and inspections to gradually increase the reactor's power."
Luc Rémont, Chairman and CEO of EDF stated: "The coupling of the Flamanville EPR is a historic moment for the entire nuclear sector. I would like to salute all the teams who have met the challenges encountered during this project with the greatest tenacity and never compromising on safety. Flamanville 3 joins the three EPRs already in operation in the world, in China and Finland."
EDF said that "in accordance with the startup operations, the phases of testing and of connection and disconnection to the grid will continue for several months, under the supervision of the ASN, until the reactor reaches 100% power. Starting up a reactor is a long and complex operation. It requires the full mobilisation of teams and is carried out at each stage with the highest level of safety and industrial reliability".
Construction work began in December 2007 on the third unit at the Flamanville site - where two reactors have been operating since 1986 and 1987. The dome of the reactor building was put in place in July 2013 and the reactor vessel was installed in January 2014. The reactor was originally expected to start commercial operation in 2013 but has faced a series of delays.
The Autorité de Sûreté Nucléaire (ASN) on 7 May authorised the commissioning of the Flamanville EPR reactor, clearing the way for EDF to begin loading the 241 fuel assemblies into the reactor and to carry out start-up tests and subsequent operation of the reactor. The loading of fuel was completed on 22 May.
On 30 August, EDF sent ASN the information required to issue an agreement for the first nuclear reaction - referred to as 'divergence' - to proceed, in particular the results of the installation tests carried out since the commissioning authorisation.
In a resolution of 2 September, ASN authorised the launch of divergence operations at the Flamanville EPR reactor and the unit achieved first criticality - an initial sustained chain reaction - the following day. A test programme to achieve a power level of 25% was implemented when the reactor reached 0.2% power.
With Flamanville 3 now at 25% capacity, the unit has been connected to the national electricity grid for the first time and is generating electricity. EDF said in its statement on 21 December it had produced 100MW of electricity.
In an 18 December statement ahead of the grid connection of the unit, EDF said: "After its connection, the reactor will be operated at different capacity levels until summer 2025, which will conclude the testing phase. At the end of this testing period, the unit is expected to be operated at 100% capacity until the first planned outage for maintenance and refueling, called Visite Complète 1 (VC1)."
It noted that VC1 "should mainly take place in 2026" and that the volume of electricity produced from the first grid connection until this first planned outage will be around 14 TWh.
The first EPR units came online at Taishan in China, where unit 1 became the first EPR to enter commercial operation in 2018 followed by Taishan 2 in September 2019. In Europe, Olkiluoto 3 in Finland entered commercial operation in 2023, and two units are currently under construction at Hinkley Point C in the UK.
Petra Diamonds cuts forecasts, jobs amid market weakness
Cecilia Jamasmie | December 20, 2024 | Petra Diamonds continues to face challenging market conditions. (Image: Silva Pinto |AdobeStock.)
Africa-focused Petra Diamonds (LON: PDL) has cut its price forecasts for 2025 and announced job cuts affecting group operations and South African support functions, in a fresh effort to reduce costs and boost cash flow amid ongoing challenges in the global diamond market.
The restructuring will be led by Vivek Gadodia, who has been appointed chief restructuring officer. Refinancing plans have been postponed until 2025 to prioritize cash generation. “We remain confident in a successful refinancing (…) and will provide further updates with our interim results in February,” chief executive officer, Richard Duffy, said in a statement.
The company’s move comes only days after De Beers, the world’s largest diamond producer by value, cut the prices of its mined gems by more than 10%.
Petra’s third tender for the 2025 financial year delivered mixed results. While sales volumes rose, both revenue and prices declined. The company sold 700,803 carats during the third tender, a 17% increase compared to the combined 600,161 carats sold in the first two tenders.
The Cullinan mine reported an average price of $100 per carat in the third tender, down from $146 per carat in earlier tenders but slightly above the year-to-date average of $112 per carat for the 2024 financial year. At the Finsch mine, the average price fell to $72 per carat from $84 per carat in earlier tenders, below the year-to-date average of $99 per carat in 2024. Meanwhile, the Williamson mine showed a modest improvement with an average price of $174 per carat in the third tender, up from $164 per carat in earlier tenders, though still below the previous year’s year-to-date average of $202 per carat.
In light of softer market conditions, Petra has revised its pricing assumptions for the 2025 financial year. Forecasts for the Cullinan mine have been lowered to between $120 and $130 per carat, while the Finsch and Williamson mines’ expectations have been adjusted to $80 to $90 and $170 to $200 per carat, respectively.
Year-to-date like-for-like diamond prices are down 10% compared to the same period in the 2024 financial year, driven largely by weaker demand for smaller-sized diamonds. Overall, sales revenue for the third tender fell 7% to $71 million, bringing year-to-date revenue to $146 million, a decline from $188 million during the same period last year. The average diamond price for the third tender was $101 per carat, a significant drop from $126 per carat in the first two tenders of the financial year.
Petra noted that diamond pricing remains heavily influenced by external market conditions and reaffirmed its commitment to closely monitoring the situation as it works to navigate these challenges and stabilize its operations.
Duffy said in September the company expected to see improvements in the sector during 2025 as increased discipline among diamond producers should help re-balance inventory levels across the supply chain.
Nickel price hits 4-year low as gloom offsets potential Indonesia cuts
Nickel hit a four-year low as a lackluster outlook from the Federal Reserve for next year outweighed the possibility of sharp mining cuts in Indonesia.
Futures on the London Metal Exchange dropped as much as 2.3% Thursday, to the lowest level since November 2020. The commodity used in electric-vehicle batteries has been one of the worst performers among industrial metals on the bourse this year.
The Fed on Wednesday issued quarterly forecasts showing that several officials see fewer interest-rate cuts in 2025 than previously expected. That points to a stronger dollar and higher financing costs that could hurt commodities.
Indonesia is now considering deep cuts to nickel mining quotas as it seeks to boost slumping prices of the metal, Bloomberg reported earlier Thursday.
The nation, one of the world’s dominant producers, is looking at lowering the amount of nickel ore allowed to be mined next year to 150 million tons, according to people familiar with the matter who asked not to be named as the deliberations are private. That would be a sharp drop from 272 million tons this year.
Nickel — which topped out at more than $100,000 a ton in 2022 during an infamous runaway short squeeze — is trending about 8% lower this year. That’s due in part to a wave of new supply previously expected from Indonesia and a slowdown in electric-vehicle sales.
Nickel fell 1.8% to $15,235 a ton on the LME 1:47 p.m. local time. Copper, aluminum and zinc also declined.
Breakthrough new material brings affordable, sustainable future within grasp
UH part of international team working to make sodium batteries better
University of Houston
image:
Pieremanuele Canepa, Robert Welch assistant professor of electrical and computer engineering at the University of Houston and lead researcher of the Canepa Lab.
HOUSTON, Dec. 20, 2024 –While lithium-ion batteries have been the go-to technology for everything from smartphones and laptops to electric cars, there are growing concerns about the future because lithium is relatively scarce, expensive and difficult to source, and may soon be at risk due to geopolitical considerations. Scientists around the world are working to create viable alternatives.
An international team of interdisciplinary researchers, including the Canepa Research Laboratory at the University of Houston, has developed a new type of material for sodium-ion batteries that could make them more efficient and boost their energy performance – paving the way for a more sustainable and affordable energy future.
The new material, sodium vanadium phosphate with the chemical formula NaxV2(PO4)3, improves sodium-ion battery performance by increasing the energy density—the amount of energy stored per kilogram—by more than 15%. With a higher energy density of 458 watt-hours per kilogram (Wh/kg) compared to the 396 Wh/kg in older sodium-ion batteries, this material brings sodium technology closer to competing with lithium-ion batteries.
“Sodium is nearly 50 times cheaper than lithium and can even be harvested from seawater, making it a much more sustainable option for large-scale energy storage,” said Pieremanuele Canepa, Robert Welch assistant professor of electrical and computer engineering at UH and lead researcher of the Canepa Lab. “Sodium-ion batteries could be cheaper and easier to produce, helping reduce reliance on lithium and making battery technology more accessible worldwide.”
From Theory to Reality
The Canepa Lab, which uses theoretical expertise and computational methods to discover new materials and molecules to help advance clean energy technologies, collaborated with the research groups headed by French researchers Christian Masquelier and Laurence Croguennec from the Laboratoire de Reáctivité et de Chimie des Solides, which is a CNRS laboratory part of the Université de Picardie Jules Verne, in Amiens France, and the Institut de Chimie de la Matière Condensée de Bordeaux, Université de Bordeaux, Bordeaux, France for the experimental work on the project. This allowed theoretical modelling to go through experimental validation.
The researchers created a battery prototype using the new material, NaxV2(PO4)3, demonstrating significant energy storage improvements. NaxV2(PO4)3, part of a group called “Na superionic conductors” or NaSICONs, is designed to let sodium ions move smoothly in and out of the battery during charging and discharging.
Unlike existing materials, it has a unique way of handling sodium, allowing it to work as a single-phase system. This means it remains stable as it releases or takes in sodium ions. This allows the NaSICON to remain stable during charging and discharging while delivering a continuous voltage of 3.7 volts versus sodium metal, higher than the 3.37 volts in existing materials.
While this difference may seem small, it significantly increases the battery’s energy density or how much energy it can store for its weight. The key to its efficiency is vanadium, which can exist in multiple stable states, allowing it to hold and release more energy.
“The continuous voltage change is a key feature,” said Canepa. “It means the battery can perform more efficiently without compromising the electrode stability. That’s a game-changer for sodium-ion technology.”
Possibilities for a Sustainable Future
The implications of this work extend beyond sodium-ion batteries. The synthesis method used to create NaxV2(PO4)3 could be applied to other materials with similar chemistries, opening new possibilities for advanced energy storage technologies. That could in turn, impact everything from more affordable, sustainable batteries to power our devices to help us transition to a cleaner energy economy.
"Our goal is to find clean, sustainable solutions for energy storage," Canepa said. "This material shows that sodium-ion batteries can meet the high-energy demands of modern technology while being cost-effective and environmentally friendly."
A paper based on this work was published in the journal Nature Materials. Ziliang Wang, Canepa’s former student and now a postdoctoral fellow at Northwestern University, and Sunkyu Park, a former student of the French researchers and now a staff engineer at Samsung SDI in South Korea, performed much of the work on this project.
Caption for attached photo:
Pieremanuele Canepa, Robert Welch assistant professor of electrical and computer engineering at the University of Houston and lead researcher of the Canepa Lab.
About the University of Houston
The University of Houston is a Carnegie-designated Tier One public research university recognized with a Phi Beta Kappa chapter for excellence in undergraduate education. UH serves the globally competitive Houston and Gulf Coast Region by providing world-class faculty, experiential learning and strategic industry partnerships. Located in the nation's fourth-largest city and one of the most ethnically and culturally diverse regions in the country, UH is a federally designated Hispanic, Asian American and Native American Pacific Islander-serving institution with enrollment of more than 46,000 students.
Journal
Nature Materials
Article Title
Obtaining V2(PO4)3 by sodium extraction from single-phase NaxV2(PO4)3 (1 < x < 3) positive electrode materials
Paving the way for the future of energy storage with solid-state batteries
\
Advanced Institute for Materials Research (AIMR), Tohoku University
Rapid advancements in solid-state battery technology are ushering in a new era of energy storage solutions, with the potential to revolutionize everything from electric vehicles to renewable energy systems. Evolutions in electrolyte engineering have played a key role in this progress, enhancing the development and performance of high-performance all-solid-state batteries (ASSBs).
A recent review paper dived into these developments and summarized the cutting-edge research on inorganic solid electrolytes (ISEs) used in ASSBs. Researchers explored how oxides, sulfides, hydroborates, antiperovskites and halides play a pivotal role in powering next-generation -batteries. These materials are not only used as electrolytes but also as catholytes and interface layers, which enhance battery performance and safety.
"We highlighted the recent breakthroughs in synthesizing these materials, honing our attention on the innovative techniques that enable the precise tuning of their properties to meet the demanding requirements of ASSBs," says Eric Jianfeng Cheng, an associate professor at Tohoku University's Advanced Institute for Materials Research (AIMR). "Precise tuning is crucial for developing batteries with higher energy densities, longer life cycles, and better safety profiles than conventional liquid-based batteries."
Cheng and his colleagues also touched on the key electrochemical characteristics of ISEs, such as ionic conductivity, stability, and compatibility with electrodes Additionally, they explored current ASSB models, proposing emerging approaches that could pave the way for the future of energy storage.
Yet, the review cautioned that several challenges remain in the development of ASSBs. One significant hurdle is the limited compatibility between ISEs and electrodes, which can lead to harmful interfacial reactions. Overcoming these issues is critical for enhancing the efficiency and longevity of ASSBs. The review outlined these challenges in detail while also sharing insights into ongoing efforts to tackle them.
"Our comprehensive review underscores the importance of continued research and development in the field of solid-state batteries. By developing new materials, improving synthesis methods, and overcoming compatibility issues, current efforts are driving innovation toward practical ASSBs that could transform how we store and use energy," adds Cheng.
The review was published in the Journal of Materials Chemistry A.
About the World Premier International Research Center Initiative (WPI)
The WPI program was launched in 2007 by Japan's Ministry of Education, Culture, Sports, Science and Technology (MEXT) to foster globally visible research centers boasting the highest standards and outstanding research environments. Numbering more than a dozen and operating at institutions throughout the country, these centers are given a high degree of autonomy, allowing them to engage in innovative modes of management and research. The program is administered by the Japan Society for the Promotion of Science (JSPS).
See the latest research news from the centers at the WPI News Portal: https://www.eurekalert.org/newsportal/WPI
Establishing a World-Leading Research Center for Materials Science
AIMR aims to contribute to society through its actions as a world-leading research center for materials science and push the boundaries of research frontiers. To this end, the institute gathers excellent researchers in the fields of physics, chemistry, materials science, engineering, and mathematics and provides a world-class research environment.
It’s been a brutal year to be in the battery metals business.
Prices of lithium, nickel and cobalt collapsed in 2023 and have continued grinding steadily lower over the course of 2024.
A sector that was once racing to build new supply has been closing mines and deferring projects as low prices bite into the cost curve.
The road to an electric future has turned out to be much bumpier than expected with demand from the all-important electric vehicle (EV) sector not living up to expectations.
This is also a story of massive oversupply with too much new capacity brought online at exactly the wrong time.
And it will be supply discipline, or the lack of it, that will determine whether there will be any price recovery in 2025.
Prices of lithium, nickel and cobalt
EV narrative veers off track
The global EV market is still expanding.
November was another record-breaking month with 1.8 million units sold, according to consultancy Rho Motion. Global sales growth over the first 11 months was an impressive 25% relative to 2023.
But the positive headlines mask two unwelcome truths for the battery metals sector.
China is still the main driver of the EV revolution with Western markets struggling to build momentum.
While Chinese sales set a new monthly record in November, those in the United States and Canada were up by just 10% year-on-year in November and those in Europe were actually lower.
Western consumers still need an incentive to make the switch from internal combustion engine to electric motor. German new-energy vehicle sales have slumped this year after subsidies were abruptly removed at the end of 2023.
US subsidies could go next year if Donald Trump makes good on his threat to roll back the Biden administration’s EV policy.
The second reality check is that many EV buyers, particularly those in the critical Chinese market, are opting for hybrids or plug-in-hybrids over battery electric vehicles.
These have batteries about a third of the size of those used in pure battery models, meaning a similar-sized reduction in all the metallic cathode inputs. Chemistry experiment
Some offset for lithium demand comes from the rising market share of lithium-iron-phosphate (LFP) batteries, which accounted for two-thirds of all EV sales in China last year, according to the International Energy Agency.
LFP batteries are cheaper than nickel-rich chemistries and Chinese battery-makers have improved their performance to the point that CATL’s latest Shenxing Plus model boasts a single-charge driving range of over 1,000 kilometers.
They are, however, bad news for nickel, cobalt and manganese markets.
The amount of lithium deployed on the road in new EV sales was almost 48,000 metric tons in October, up 28% year-on-year, according to consultancy Adamas Intelligence.
However, the deployment of nickel, manganese and cobalt was up by just 10%, 4% and 2% respectively, reflecting both the shift to hybrids and the changing battery chemistry mix. Supply flood
Lower-than-expected demand from the EV sector, particularly outside of China, has coincided with supply surges across the battery metals spectrum.
BHP’s Nickel West was supposed to be the miner’s showcase green metals hub. It was shut down in October due to low prices caused by massive overproduction in Indonesia.
Chinese nickel producers have made the technical leap of processing Indonesia’s relatively low-grade ore into high-purity Class I metal. Combined Sino-Indonesian production will grow by 30% this year, according to Macquarie Bank.
At least the Indonesian authorities have shown signs of supply discipline, restricting mining quotas and placing a moratorium on approvals for new processing plants.
China’s CMOC Group, the world’s largest cobalt producer, seems oblivious to the price implosion. It reported output of 84,700 tons in January-September, up from 37,000 tons in the year-ago period.
Such is the scale of oversupply in the cobalt market that Chinese stockpile managers have been able to scoop up significant tonnages without any obvious market impact.
Chinese lithium producers are also resisting production cuts. Many are vertically integrated, meaning losses in the ground can be offset against gains further down the processing chain.
Even allowing for the many price casualties among Western operators, lithium supply is still expected to exceed demand for the third year running in 2025, according to consultancy Benchmark Mineral Intelligence.
The supply overhang should shrink to less than 1% of demand from close to 10% last year, which may limit further price weakness.
Supply surplus in the nickel and cobalt markets, by contrast, risks becoming structural until production is more closely aligned with demand. Trade tensions
Given such negative supply-demand dynamics, it’s not hard to see why the analyst consensus is for more producer price pain in the coming months.
China is a dominant player in all three markets and shows no signs of giving up on its own electric dreams.
This, though, is a point of rising tension with the United States.
The final report of the Critical Minerals Policy Group, part of a Select Committee on US-Chinese relations, accused Chinese lithium producers of driving prices lower “through a mix of dumping and overproduction”.
China, the report said, “uses price controls, vertical integration, and substantial barriers to entry to preclude competition”.
Joe Biden and Donald Trump may disagree on electric vehicles but there is remarkable bipartisan agreement on the need to build domestic battery metal capacity and loosen China’s grip on the global supply chain.
Trump 2.0 is likely to crank up the Biden administration’s combination of federal spending and tariffs on Chinese metals.
US trade policy will add yet another moving part to an already complex battery metals market dynamic.
Indeed, if the US tariff walls are built high enough, there’s a risk the global market will start fracturing into Chinese and US pricing spheres.
(The opinions expressed here are those of the author, Andy Home, a columnist for Reuters.)
(Editing by Kirsten Donovan)
Carriers Grow Pessimistic Urging Preparations for U.S. Port Strike
Hapag was among the carriers warning that the risk of disruption is increasing (Hapag-Lloyd)
With the deadline looming for the expiration of the master contract for U.S. East and Gulf Coast dockworkers, carriers are beginning to sound cautions to customers. Maersk, Hapag-Lloyd, and CMA CGM Group each issued customer advisories warning the situation is “dynamic” and with no signs of an agreement and the union saying they are at an impasse, the dangers are growing.
The employers represented by the U.S. Maritime Alliance (USMX) and the International Longshoremen’s Association ended the October 2024 walkout by extending the contract deadline to January 15, 2025. This week marked four weeks till the end of the extension and the anticipated January 16 work stoppage.
“The possibility of a strike increases each day that passes without a settled contract,” Maersk writes in a customer advisory released today, December 20. They said they await further developments but also noted the situation is complicated by the beginning of the holiday season.
Similarly, Hapag-Lloyd also issued an update echoing the same sentiments. It tells customers “the risk of disruption is increasing.” They also however acknowledge the situation remains dynamic.
The ILA and USMX have been silent for a week after trading jabs and blame last week for the current impasse. The ILA remains dug in on its position of no automation of semi-automation and seems emboldened by the strong support of President-elect Donald Trump. His nominated labor secretary, Oregon Representative Lori Chavez-DeRemer is also seen to be a supporter of labor unions.
With the deadline fast approaching, the Alliance for Chemical Distribution (ACD) sent a letter on Thursday, December 19, to both sides urging them to postpone the deadline. They ask for additional time for negotiations noting the start of the Lunar New Year on January 29 which traditionally causes a rush to get shipments done before the pause in much of Asia. Further, they note the timing of the U.S. presidential inauguration on January 20 saying time is needed for the transition.
“We are concerned that a second lapse in contracts, complicated by the challenging timing issues of the presidential administration transition and the Lunar New Year, would cause irreparable harm to the U.S. economy and the American public,” writes Eric Byer, President and CEO of ACD. He says the three-day strike in October caused weeks of supply chain disruptions and if the strike had gone a few more days members would have lost stock of chemicals used for critical processes, such as water treatment.
Port executives, especially on the U.S. West Coast, highlighted strong volumes in November and an expectation of very strong volumes through the end of 2024. They believe that shippers are diverting cargo to the West Coast and frontloading to prepare for a possible strike and future tariff increases from the new administration.
For now, the carriers are telling customers to make preparations to move containers off terminal. Maersk notes it is unclear if the terminals will increase their hours to support extra movements. Similarly, Hapag advises customers to expedite the readiness of documentation and customs clearance to facilitate prompt retrieval of containers.
“Contingency plans to ensure that all impacted vessels and that operations are completed prior to any labor disruptions,” are being made CMA CGM advises.
Carriers have traditionally held vessels offshore in an attempt to wait out a strike, but experts warn this could become a prolonged dispute. With the support of the incoming administration and likely pressure from shippers, experts believe the union may be in a stronger position in the final weeks before the contract deadline.
China Launches Hydrogen-Powered Inland Container Vessel
The hull of the inland container vessel was launched this week with installation of the hydrogen power system and controls to be completed in 2025 (CCTV)
China marked the launch of its first large hydrogen fuel cell river containership on December 18. The vessel named Dong Fang Qing Gang will have the largest hydrogen fuel cell system so far deployed on a ship in China and will be used to demonstrate the potential of the technology.
The vessel will be outfitted with two 240 kW hydrogen fuel cells and will have a hydrogen storage system that will hold 550 kg of hydrogen. The vessel is expected to have a range of approximately 235 miles. The fuel cells are being developed by a Chinese company, Sinosynergy, and are reported to be its first high-power application for the shipping industry and it will be capable of powering a vessel carrying a heavy load.
The barge will have a capacity of 64 TEU which will be equivalent to approximately 1,450 tons. It will measure about 213 feet (64.9 meters) in length and displace about 2,000 tons.
In addition to the fuel cells, the power system includes hydrogen storage and a supply system. It will be linked to a lithium battery. It will be the first time the system along with the propulsion and control systems has been installed on a vessel.
The launch of the hull took place in Eastern China’s Zhejiang Province on Wednesday. The barge will be outfitted and undergo testing with plans to start a commercial demonstration service in 2025. The vessel will operate between Zhapu port in Jiaxing and Xiasha port in Hangzhou.
It is the latest in a series of pioneering efforts by the Chinese to reduce emissions from inland shipping. Other projects are also testing battery-powered vessels and an electrification and charging system. Several projects in China are also exploring hydrogen-powered shipping.
WASTE OF SOCIAL CAPITAL
Australia Plans Investment of Up to US$100 Billion in Naval Shipbuilding
Australia looks to maintain for the long-term naval shipbuilding (Hunter Class construction - BAE Systems Australia)
The Australian government reports it is reaffirming its commitment to continuous naval shipbuilding and taking steps to enhance the long-term strength of the shipbuilding industry. It is part of a plan by Prime Minister Anthony Albanese to expand the shipbuilding efforts for national defense and to expand employment in the industry.
The government released the 2024 version of the Naval Shipbuilding and Sustainment Plan which outlines the long-term plan for naval shipbuilding. The government is calling it a record investment which over the next 30 years could reach upward of US$100 billion. The minimum anticipated investment is at least US$82 billion.
Among the changes to the plan versus the prior government’s strategy, the Albanese government reports the new plan includes 55 newly announced vessels. Through a 30-year forecast, the plan signals a long-term demand for shipbuilding including the planned nuclear-powered submarine program. As previously announced, the government is also moving forward with enhanced surface combatants and support ships such as landing craft.
“Through the most significant investment in maritime capability in Australia’s history, we will see generations of naval construction projects happen right here, with plans to construct and upgrade over 70 vessels across South Australia and Western Australia,” said Deputy Prime Minister Richard Marles. “The long-term investment laid out in the 2024 Naval Shipbuilding and Sustainment Plan represents the Albanese Government’s vision for continuous naval shipbuilding and sustainment, a future made in Australia, and our commitment to keeping Australians safe.”
According to the government, these decisions incorporated into the plan will create an inter-generational pipeline of naval construction projects that will support around 8,500 jobs in shipbuilding and sustainment by 2030. Additionally, it anticipates 20,000 jobs over the next 30 years in support of Australia’s nuclear-powered submarine program.
The government plans to invest nearly US$1 billion in vocational education programs to help support the expansion of the shipbuilding workforce. This is in addition to the US$150 million budgeted to attract, train, and retain a new workforce for the nuclear-powered submarines.
In announcing the plan, they said the goal is to create a more lethal navy and army that is appropriate to the strategic environment.
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