Friday, February 07, 2025

The Evolving Market for LNG Bunker Vessels

Entering 2025, the prospects for LNG as a marine fuel appear a bit brighter than the previous year thanks to an expanding demand. The global orderbook for this propulsion has found new buoyancy in 2024 after retrenching somewhat in 2023. DNV assessed the jump at 103 percent from the previous year for a total of 264 vessels. Some eight percent of the newbuilds on order opted for LNG propulsion, while alternative fuelled ships represented 50 percent of all new orders placed in 2024 according to Clarksons. The LNG-fuelled fleet reached 1,248 units, accounting for 84 percent of the overall dual-fuelled fleet, which itself now represents 7.4 percent of the global fleet.

Some of the main global hubs reached new records for LNG bunkering during the year. Preliminary data for Singapore highlighted a total of 1,096,807 cbm (463,948 mt). In Rotterdam, a tally of the first three quarters suggests sales upwards of 639,848 cbm for the year. Shanghai Yanshan reached deliveries of 444,000 cbm, Shenzhen Yantian of 300,000 cbm, and Ningbo Zhoushan of 60,000 cbm.

Against this backdrop, the niche shipping market for LNG bunker vessels (LNGBVs) has grown considerably reaching a fleet of 61 between seagoing vessels (52), barges (7), and inland vessels (2), with 60 percent of these units delivered between 2020 and 2024. Numerically, these units deployment at year’s end displayed a fair geographic distribution along the major sea lanes, though larger concentrations coalesced around five hotspots. The ARA-Baltic-North Sea continuum had the highest density, while also displaying the most diverse fleet with 23 between barges, seagoing, and inland vessels. Nine between barges and seagoing vessels traded in the Florida/Caribbean area, seven vessels in the Singapore/Malacca Strait, and five in Gibraltar and the Western Mediterranean.

A few movements and redeployments signaled evolving demand and supply patterns. Noteworthy among these was the redeployment to the UAE of NYK’s Green Zeebrugge announced at the end of December. After spending time in East Africa, it will trade there under a charter with Monjasa. In Singapore, the MPA launched a call for expressions of interest (non-binding) to award an additional LNG bunkering license. Fratelli Cosulich took delivery of its second LNGBV which is currently trading in Malaysia, while energy company Edison put the Adriatic Sea on the map by performing the first ship-to-ship operation there at the port of Trieste. Lastly, Seaspan received two of the three LNGBVs it ordered with Nantong CIMC shipyard. One of these will serve in the Pacific Northwest out of Vancouver; the other was deployed to the US West Coast but is expected to proceed to Panama and start trading there in March 2025.

This budding fleet has a combined capacity of 582,912 cbm. Taking a closer look at how that capacity is distributed geographically can offer both commercial and operational cues, useful to asset managers, charterers, and voyage planners as well as LNG traders. To be sure, the distribution of volumetric capacity at year-end mirrors to a large extent the numerical one, highlighting heavier concentrations in the ARA / Baltic / North Sea space with 202,408 cbm combined (120,710; 69,770 and 11,928 respectively). This is followed by Florida/Caribbean with 94,750 cbm; and Singapore/Malacca with 76,764 cbm. China Yangtze with 46,000. Sizeable capacities can be found on the US East Coast with 42,000 cbm and, despite being served by a single unit, the Adriatic with 30,000 cbm.

Looking ahead, the outlook for the LNGBV segment looks positive. Prices for the fuel have eased considerably overall, and, despite upward European spot prices on the heels of Ukraine’s pipeline embargo, appear set to remain subdued into 2026 thanks to a slew of liquefaction plants and gas field projects due to come online. Shipping rates for the large-scale distribution of LNG remain low, though they may start firming up again with the addition of liquefaction capacity. Such conditions are favorable to the further rollout of the propulsion, and so far, the orders for alternatively fuelled tonnage placed by shipowners early this year seem to confirm that. All this suggests LNG ship-to-ship bunkering can grow more.

Nicola Contessi is a marine transportation advisor and a member of the Institute of Chartered Shipbrokers

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

Korean Shipbuilders Top Chinese in January After Return to Profits in 2024

Hanwha Ocean reported its first profit in four years in 2024 as South Korea refines its strategy against China's shipbuilding industry (Hanwha Ocean)

The rivalry between China and South Korea’s shipbuilders continues to heat up. While there is growing concern due to China’s apparent domination of the market, South Korea’s shipbuilders achieved strong results in 2024 and continue to carve out the high-end market.

After posting a dismal new order performance in December booking only six percent of new orders versus 82 percent by the Chinese shipbuilders, South Korea’s industry rebounded to the leadership position in January 2025. It is the first time in several months South Korea received the largest percentage of new orders and it also demonstrated the success of the industry’s focus on higher-value projects and ships.

According to data from Clarkson Research the South Korean industry booked 62 percent of the global orders in January based on tonnage. It received orders for 900,000 CGT (compensated gross tons). That compared with the Chinese yards which received just 19 percent of the tonnage ordered or 270,000 CGT.

South Korea’s orders were led by 12 LNG carriers booked at HD Korean Shipbuilding & Offshore Engineering as well as an LNG carrier order for Samsung Heavy Industries. In addition to being higher-value orders, they are also large vessels. South Korea’s orders were for 13 vessels compared to 21 smaller, lower-value vessels ordered from Chinese shipbuilders in January.

China continues to still dominate the overall orderbook with a backlog of 91.51 million CGT or 58 percent of the vessels (by tonnage) on order. South Korea has 24 percent of the orders (by tonnage) or a total of just over 37 million CGT. Veson released a market analysis this week with its VesselsValue data highlighting that Chinese shipowners committed to $123 billion in newbuild orders in 2024. The orders were mostly for tankers followed by bulkers and then containerships. Chinese yards have just begun to break into the international market for LNG and other gas carriers.

South Korea’s companies have a positive outlook for 2025 with HD KSOE reporting it increased its forecast by 30 percent versus its 2024 target. It however represents a decline from the actual orders booked in 2024. Samsung Heavy Industries has not yet reported 2024 results and its forecast but commented that its outlook is slightly higher than last year. Hanwha Ocean has commented that it anticipates stable growth in 2025.

The positive outlook among the South Korean shipbuilders was in part driven by the strong financial performance recorded in 2024. Ship prices were approaching two-decade highs further contributing to the profitability of the sector.

HD Hyundai Heavy Industry reported an overall nearly 50 percent increase in operating profit with a better than 10 percent increase in consolidated revenues for 2024. Specifically, within shipbuilding, HD Korea Shipbuilding and Offshore Engineering (KSOE) saw profits jump 400 percent to a profit of more than $960 million. Sales were up 20 percent to $17.5 billion.

Hanwha Ocean continued the turnaround from the former Daewoo Shipbuilding (DSME) achieving its first profitable year since 2020. It reported sales of nearly $7.5 billion with an operating profit of $166 million.

The return to profitability was not limited to South Korea’s largest shipbuilders. Mid-sized HJ Shipbuilding reported an annual profit of $6.3 million. This was achieved despite a nearly 13 percent decline in revenues.

The Korean shipbuilders are refining their business strategy. KSOE for example continues to increase its focus on green technologies and automation while also booking orders for LNG carriers. The company plans to make its first bid next month for a U.S. Navy-related repair contract and is targeting two to three contracts in 2025. Hanwha Ocean won the first two U.S. Navy contracts in 2024 for repairs to an MSC dry cargo and ammunition ship and then an oiler. Hanwha is targeting six USN MRO contracts for 2025 in addition to the construction of LNG carriers, submarines, and LNG dual-fuel containerships.

HD Heavy Industries and Hanwha Ocean reportedly have reached a partnership agreement for the export of naval ships as they continue to seek more international work. The companies were also encouraged by building relationships with the U.S. Navy in 2024 which Donald Trump has signaled he supports. Trump has said the U.S. could use the capabilities of the South Korean shipbuilders as he pursues a buildout for the U.S. Navy.

Iranian Naval Forces Make an Unusual Port Call to the UAE

Iranian ship in UAE — Arrival ceremony at Khalid Port/Sharjah on February 4 (Ministry of Defense of UAE)

In an unusual defense diplomatic development, ships of the IRGC Navy (Nesda) and regular Iranian Navy (Nejada) have commenced a joint port visit to the United Arab Emirates.

The UAE Ministry of Defense website showed a picture of the Shahid Soleimani Class missile corvette Shahid Rais Ali Delvari (FS313-04) being greeted at the dockside in Sharjah on arrival. The Shahid Rais Ali Delvari, the fourth ship in its class, was only unveiled as having joined the Nesda fleet in mid-January, so this will probably have been its first overseas port visit and operational deployment.

The Iranian naval visitors alongside in Sharjah’s Mina Khalid, February 3 (Iranian MoD)

The other vessels taking part in the visit are the Nesda’s small missile corvette Abu Mahdi al-Muhandis (PC313-01) with the Nasser Class auxiliary Shahid Sattar Mahmoodi (Naser-116), and the Nedaja’s Sina Class fast attack craft IRINS Zereh (P235). It appears unlikely that the flotilla will undertake any joint training with the Emiratis.

The choice of Sharjah as a port to host the Iranian visit has some significance. It is not an Emirati naval base, so docking the Iranian vessels in a civilian port will have protected Emirati – and allied – operational security. But of greater significance, Sharjah was the Emirate that was administering the island of Abu Musa when it was seized by Imperial Iranian forces on November 30, 1971. The seizure came a day after the Emirate of Sharjah had agreed to share sovereignty of the island with Iran, which the seizure then contravened. Sharjah continued thereafter to maintain civil administration and a small police presence on its portion of the island in support of the small residual Emirati population, despite increased restrictions imposed by Iran. Whereas Little Tunb and Greater Tunb islands which Iran also seized (from the Emirate of Ras Al Khaimah) at the same time lie close off the Iranian coast, Abu Musa sits midway in the middle of the Gulf. If Emirati sovereignty over the island was ever recovered, it would expand the Emirati sphere of influence in the Gulf significantly northwards.

The timing of this first Iranian naval visit is of significance. The Iranian security establishment is currently suffering a high degree of nervousness, fearing a further potential attack by Israel, uncertain about President Trump’s intentions, and worried by an increase of internal security issues both in border areas and in Tehran; following the assassination of two senior judges in Tehran recently, the Supreme Leader Ali Khamenei has even been seen to be wearing a flak jacket in a public appearance. However, regional instability which might follow upheavals in Iran would be bad for trade. Hence a naval exchange of this sort, supportive of maintaining the status quo, might in the Emirati calculation be in the UAE’s best interests.

Before the Iranian ships departing, the senior Nesda officer on board, Commander of the 5th IRGC Naval Region Rear Admiral Ramezan Abdollahi who is normally based in Bandar Lengeh, paid a visit to the UAE Naval Commander Major General Humaid Mohammed Al Rumaithi in his office in Abu Dhabi.

Nesda Auxiliary Shahid Sattar Mahmoodi (Naser-116) (FARS/Iranian Mod)

Abandoned Livestock Carrier in Croatia

A livestock carrier that wrecked on the coast of Croatia last year is still aground 10 months later, and local communities are concerned about the lack of movement on a salvage operation.

On April 16, 2024, the 1976-built livestock carrier Deala drifted in strong winds and grounded on a rocky shore at the entrance to Raska Bay, Croatia. Her 15 crewmembers managed to escaped without injury, but the ship suffered hull damage and the engine room flooded. Croatia's maritime affairs ministry expected that a refloat operation would remove the ship within a month of the grounding, but the owner walked away and the vessel remains on the rocks today, protected only by a pollution control boom.

The bay is an environmentally-protected area and a tourist attraction, and local politicians are concerned about long-term ecological and economic damage from pollution from the ship.

"We are fighting for this ship to finally be removed and for our sea, our environment and our tourism to be preserved," the mayors of the towns of Marcana and Barban told Kleine Zeitung in a statement.

Neven Ivesa, a professor at a nearby university, told local media that the best option would be to cut up the ship in place and remove it in sections to avoid potential harm from a refloat attempt. This would be costlier than a tow-away: the cost of a standard typical refloat operation for the small ship has been estimated at about $3 million.

"Given months of inactivity, this issue is no longer just a local problem, but a threat that requires a national response. Residents and business entities in the areas of the municipalities of Marcana, Barbana and Rasa must not become victims of neglect of environmental and safety standards," said Marcana mayor Predrag Plisko in a statement.

FOSSIL FOOLS PROFITEERS

Equinor Cuts Renewable-Energy Ambitions to Focus on Shareholder Value

The drilling platform topsides for Equinor's Johan Sverdrup platform aboard Pioneering Spirit, 2018 (Equinor)

Norwegian oil major Equinor has announced a major cutback to its renewable-energy ambitions, and says that it plans to focus on maximizing shareholder value going forward.

"Equinor has high-graded the project portfolios in renewables and low-carbon solutions, and reduced cost and early-phase spend," the company said in its quarterly report. "The portfolio is expected to deliver more than 10 percent life-cycle equity returns."

The company said that circumstances have changed since it last set its renewables targets - especially in the United States, where the political and economic winds have shifted against offshore wind development. Equinor said that these pressures have had an effect on its credit evaluation, leading it to reduce its investment target for renewables for 2030 by about 25 percent.

"The reduced investment program is in line with our commitment to ensure a capital structure that can support a solid investment grade credit rating," Equinor said.

On the oil and gas side, Equinor expects production to increase by 10 percent to 2.2 MMboed by 2030, thanks to strong performance at its core Norwegian continental shelf operations. Equinor plans satellite field development and increased recovery from existing assets to help support long-term production at low cost.

Equinor posted operating income of $8 billion and a net profit of $2 billion in the fourth quarter. It continues to invest in share buybacks, including a $5 billion buyback program for 2025 alone. "Equinor is well positioned for further growth and competitive shareholder returns. We expect to deliver industry-leading return on average capital employed, above 15% all the way to 2030," said CEO Anders Opedal.

Equinor has been in retreat from renewables investments for some time. Last August it closed its offshore wind operations in Vietnam, Portugal and Spain, citing inflation and supply chain delays. In September, it dropped out of a proposed blue hydrogen pipeline project that would have supplied power plants in Germany, citing lack of demand for the natural gas-based product.

It has, however, invested in growing its position in offshore-wind leader Orsted. Last year, it announced that it has acquired a cumulative $2.5 billion stake in the Danish company, just shy of 10 percent.

“Equinor has a long-term perspective and will be a supportive owner in Ørsted,” said Anders Opedal, CEO of Equinor, in announcing the stock position. “This is a counter-cyclical investment in a leading developer, and a premium portfolio of operating offshore wind assets. The exposure to producing assets complements Equinor’s operated offshore wind portfolio of large projects under development.”

Salvors Approach the End of Fuel Removal for Lost Survey Ship Manawanui

Diver at wreck site of Manawanui — Courtesy NZDF

Salvors hired by the New Zealand Defence Force have recovered a substantial share of the fuel aboard the lost survey ship HMNZS Manawanui, which ran aground on a reef and sank off Samoa in October 2024.

Working from a moored deck barge, the salvage divers pumped off enough diesel and oily water to make two return trips to Apia to offload full tank containers (tanktainers) and return with new empties.

“The salvors have recovered a significant amount of liquid from tanks on the Manawanui after operating . . . for the past 17 days,” NZDF on-scene representative Commodore Andrew Brown said. "Just over 340,000 liters of liquid has been recovered from Manawanui. Of this we estimate 320,000 liters of diesel fuel mix has been recovered from the ship’s diesel fuel tanks."

The team has pumped out the ship's larger and more accessible tanks, he said, and they are now making progress on the smaller remaining tanks. There are 54 in total that need to be pumped out, including fuel, lube oil and bilge water tanks.

"The amount of diesel fuel in the liquid recovered won’t be known until the liquid is processed, although the majority of the volume of liquid recovered so far is assessed to be diesel," Commodore Brown said. “In addition to the liquids from the diesel fuel tanks, the salvors have recovered around 18,000 liters of lubricating oil."

The end of the pollution-abatement process is approaching, and the governments of Samoa and New Zealand are in talks about next steps, which might include wreck removal or possible compensation for local fishermen. The residents of nearby villages were banned from fishing near the wreck site for weeks due to the risk of fuel contamination.

Those villagers are making moves of their own. After calling for financial compensation from their government and from New Zealand, they reached out to the Chinese embassy in Apia for foreign aid assistance. "We met with the Chinese ambassador to discuss our needs, and they are willing to assist us immediately due to the sinking of the boat in our district," a spokesperson told Radio New Zealand. "We talked about the individual and family needs for daily living, including monetary assistance to help with their losses."

Inland Cargo Ship that Destroyed Moselle Lock was on Autopilot

damaged lock gates — Damaged gates on the Muden Lock in Germany on the Moselle River ((WSA Mosel-Saar-Iahn)

German prosecutors are continuing to investigate the accident in December that paralyzed river traffic on the Moselle and trapped numerous inland cargo ships in France and Luxembourg. They believe the cargo ship that destroyed the critical lock was sailing on autopilot and failed to brake before hitting the gates.

An inland cargo ship loaded with 1,500 tons of scrap metal bound for Mertert in Luxembourg hit the lock gates on December 8 ripping both rates loose from the hinges and damaging the concrete and operating mechanism for the lock. At the time, the authority that operates the lock reported it appeared the vessel had not only failed to stop but had not attempted to slow down. The gates were closed preparing for the locking operation.

The public prosecutor in Koblenz, Germany reported based on the initial findings of its investigation the inland cargo ship was operating on autopilot and apparently was unattended. Regulation for the river which connects to the Rhine and is a major route for cargo into France and Luxembourg permits the use of autopilot but the captain has to monitor the operation and be able to intervene if necessary to prevent accidents by stopping the vessel.

The prosecutor would not speculate on why the captain had not attempted to stop the vessel. They did say that tests showed the ship’s engines and controls appeared to be working without a problem. They also confirmed that there was no evidence of the captain having consumed alcohol or illegal drugs.

Video of the locks confirms the vessel did not attempt to slow its progress or stop before hitting the lock gates. They believe the vessel was traveling at a speed of 12.2 km/h (approximately 6.5 knots) when it entered the lock and plowed into the gates.

“Why the ship’s captain did not intervene is the subject of further investigation,” prosecutors told the German news agency dpa.

First vessel through the locks on February 1, 55 days after the gates were destroyed (WSA Mosel-Saar-Iahn)

While the investigation is ongoing, the Federal Waterways and Shipping Administration however reports traffic has resumed through the lock. The first ship transited the repaired lock on February 1 after just 55 days of repairs. Initial estimates had been that it could be till March before the lock could be reopened to vessel traffic.

Immediately after the incident, reports said there were 72 vessels trapped in France and Luxembourg. The authority staged a rescue operation using dam beams normally for closing the locks for inspection in an emergency operation that required divers and a crane to set the beams for each locking operation. It took till December 27 to clear all the vessels.

Repairs were expedited in part because they were able to find two assembled lock frames that could be outfitted for the Muden lock. The gates were prepared while concrete repairs and new fitting strips were completed at the lock. The new gates were installed on January 24 and after testing they celebrated the reopening of the waterway.

Finland Says Odds of Accidental Subsea Cable Damage "Extremely Unlikely"

Finnish and Swedish forces recover the lost anchor of the Eagle S from the Gulf of Finland (Finnish Border Guard)

Despite U.S. intelligence leaks that suggest that recent cable-cutting incidents in the Baltic may be accidental, Finland's foreign minister says that it is "extremely unlikely" that four cable-damage incidents could happen in one region in a year without some amount of intent.

Finnish police continue to investigate the Russia-linked "shadow fleet" tanker Eagle S in connection with the cable-cutting incident on the Baltic seabed on Christmas Day. After leaving the Russian port of Ust-Luga, the Eagle S dragged her anchor through several subsea comms cables and the Estlink 2 power cable, severing them all. The vessel was boarded, detained and diverted to an anchorage off Porvoo, where it remains.

The UAE-based owner of the Eagle S filed suit in Finnish courts to secure the ship's release, but lost at the district court level. On Tuesday, the Helsinki Court of Appeal refused to hear an appeal of the earlier ruling - leaving the ship in Finnish police custody, at least for now.

The Eagle S casualty marked the third time in 15 months that a vessel bound to or from Russia had dredged up subsea cables in the Baltic with an anchor, following the casualties involving the Newnew Polar Bear and the Yi Peng 3. A vessel involved in the fourth and latest cable-damage incident, the Vezhen, was released this week after Swedish investigators concluded that the crew had not intentionally released the anchor.

The owner of Eagle S maintains that - like the case of the Vezhen - the Christmas Day incident was accidental. Leaked reports of U.S. and European intelligence assessments suggest that NATO governments concur.

This week, Finnish foreign minister Elina Valtonen told The Times that despite these secret Western assessments, it is "extremely unlikely" that all of the recent casualties were caused accidentally - and that even if Eagle S' contribution to the growing tally of damage was an accident, it would still demonstrate the casualty risk created by substandard Russia-linked tankers. Unlike the other three vessels implicated in recent cable-cutting incidents in the Baltic, Eagle S is an identified member of the Russian "shadow fleet," and has an extensive record of inspection deficiencies.

"We Finns, we rarely believe in things. We like to investigate and work based on facts," she told The Times. "But what is for certain is that Russia’s shadow fleet does pose a significant threat . . . If you navigate using rusty vessels, perhaps with staff who haven’t too much experience, you might run into trouble."

Vilkonenn called for efforts to keep the Russian shadow fleet "in check" to reduce risk of damage to the Baltic's environment and infrastructure - within the bounds of international law and the universal right to freedom of navigation. On Wednesday, Denmark announced such an effort: it is starting a targeted port state control inspection regime for "shadow fleet" tankers that anchor in Danish waters.

TRUMP'S VILE SEXISM

Report: Ex-Commandant Adm. Linda Fagan Abruptly Evicted From Base Housing

Former Commandant Adm. Linda Fagan at her swearing-in, 2022 (USCG file image)

The U.S. Department of Homeland Security has ejected former Coast Guard Commandant Adm. Linda Fagan from her house with three hours of notice, forcing her to leave her belongings behind, according to NBC and The Independent.

On January 21, President Donald Trump's second day in office, Fagan was removed from command and replaced by Acting Commandant Adm. Kevin Lunday. In an extended letter dated January 21, the Trump administration faulted Fagan for "erosion of trust," low recruitment numbers, high illegal migration, shipbuilding delays, DEI workforce initiatives, and the Coast Guard's response to the Operation Fouled Anchor scandal. Fagan has come in for criticism from Congress and from victims' advocates for her allegedly slow response to the long-buried sexual assault investigation at USMMA.

Fagan's firing came without advance notice, and the Coast Guard provided her with a waiver of 60 days to find an alternative to her current home at Joint Base Anacostia. However, on Tuesday, Trump officials ordered Commandant Adm. Lunday to evict Fagan immediately. According to NBC, she was given three hours to vacate the building and was not able to retrieve many of her possessions before leaving. She was reportedly instructed to leave the building unlocked so that it could be photographed by DHS officials.

"It's a really strange power play," one associate of Fagan told NBC.

U.S. Transportation Command will be removing her personal effects from the house, according to the report.

Adm. Fagan became a commissioned officer in 1985, and was seen as a female pioneer in the service. She rose through the ranks in the marine safety division, and became the service's first female commandant in June 2022. At the time, her appointment was greeted in Washington with fanfare.

"[Adm. Fagan] upholds the highest traditions of the United States Coast Guard," said then-President Joe Biden at her swearing-in ceremony in 2022. "There’s no one more qualified to lead the proud women and men of the Coast Guard, and she will also be the first woman to serve as Commandant of the Coast Guard — the first woman to lead any branch of the United States Armed Forces. And it’s about time."

Poland Orders Removal of Derelict Russian Tanker from Port of Gdynia

Russian tanker Poland — After sitting in Gdynia for more than seven years, the Port of Gdynia has received authority to remove the tanker Khatanga (Braveheart - CC BY-SA 4.0)

The Polish Ministry of Infrastructure reports that an order was issued for the removal of a derelict Russian product tanker that has been in the Port of Gdynia for more than seven years. The story of the Khatanga (23,000 dwt) has drawn new attention with the increased concerns of Russian-related espionage in addition to the safety issues for a vessel that has not been operated or maintained for years.

Arkadiusz Marchewka, Poland’s State Secretary and Ministry of Infrastructure, announced the order in a posting on social media on Thursday, February 6. “We are removing Russian scrap from our port. The state acts and ensures the safety of Polish infrastructure,” he wrote announcing the decision of the Ministry.

Port officials said they have been trying for months to gain the authority to act to remove the tanker which was detained in the port in October 2017 after a failed Port State inspection. The owners, Murmansk Shipping Company, promised repairs to address structural issues identified during the inspection and to take steps to correct issues identified regarding the training and competence of the crew. Instead, the tanker has languished in the port while the owner declared bankruptcy in 2020.

The media says the tanker recently twice broke away from its moorings. Port officials said tugs were able to secure the vessel but they too raised concerns about port safety. The vessel appears to be unnamed, but the port said since a trustee was named in the bankruptcy and has occasionally checked on the vessel, it can not be officially listed as abandoned.

Port and government officials raised concerns about the lack of maintenance. They noted that the fuel cargo tanks have not been properly vented raising the concern of a buildup of explosive vapors. Media speculation in January also asked if the Russians might be using the vessel as a base of operations to spy on NATO. They noted the use of the port for military equipment including shipments into Ukraine of equipment from the West while also speculating if listening or recording devices might be aboard the ship.

The Maritime Directorate in Gdynia has now issued an official order for the removal of the tanker. It instructed the port to have the Khatanga removed from the port as quickly as possible but set a deadline of three months.

“The vessel poses a threat to the safety of navigation and is withdrawn from service,” the Directorate writes. “In accordance with the decision, the Port of Gdynia Authority has been obliged to remove the Russian ship Khatanga."

It is expected that the port will attempt to sell or auction the vessel, but it is noted that it is incapable of navigation under its own power. The expectation is that it will be sold for scrap.

The Directorate also authorized the port to seek from the Russian shipowner reimbursement of costs for the entire period of the vessel's mooring in the port. A spokesperson for the port told the local media that the port authority would use the proceeds from the sale of the vessel to cover some of the costs and unpaid dockage fees.

(Top photo in Gdynia harbor in July 2020 by Braveheart - CC BY-SA 4.0)

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