Friday, December 12, 2025

 

Hanwha Gets Nods from Australia to Increase Investment in Austal

Austal shipbuilding
Hanwha gained approval to invest in Austal as it seeks partnerships for naval shipbuilding (Austal Mobile file photo)

Published Dec 12, 2025 4:31 PM by The Maritime Executive


Australia’s Treasurer Jim Chalmers said that the government has decided to let South Korea’s Hanwha Group increase its investment to become the largest investor in shipbuilder Austal. The reports said the government will place restrictions on the operations to ensure the confidentiality of sensitive information pertaining to national security matters.

Austal’s CEO, Paddy Gregg, said the company had not yet been officially notified by the government about the approval and the terms of the restrictions. He, however, said they would respect the decision of the government. 

The company had previously rejected overtures from Hanwha for a possible acquisition, citing national security issues in its role as a strategic builder for the Australian Navy. The company questioned whether the South Korean company could gain approvals from the Australian government and also noted its growing role in the United States as a supplier to the U.S. Navy and the U.S. Coast Guard.

Hanwha had indicated it was willing to pay more than A$1 billion to acquire Austal but said the company had set onerous conditions to proceed with a due diligence. Austal had demanded that Hamwha prove the ability to gain the necessary government approvals before it would share operational and financial data. 

The strategy shifted to a proposal for a strategic partnership, and in June, Hanwha announced it had acquired 9.9 percent of Austal’s shares in open market transactions. It also entered into a swap arrangement to obtain an additional 9.9 percent of the shares pending government approval.

Chalmers said that after extensive discussions with defense and foreign affairs officials, he had decided to grant the approval for Hanwha to increase its position to a maximum of a 19.9 percent ownership stake in Austal. Anything over 10 percent requires government approval, and it was noted that the company would have to seek further approvals if it sought to increase its position further.

U.S. officials in June had indicated they did not object to the deal, according to reports from Hanwha. It said in fact the U.S. would not object if it acquired 100 percent of Austal. Gregg said in today’s statement that Austal had sought clarifications for the U.S. and has never received a reply from the U.S.’s Committee on Foreign Investment in the United States. The company now considers it “unlikely to receive” information from the U.S. authorities.

Hanwha told the Korean media that it was pleased to receive the approval and would comply with the approval conditions placed by the Australian government. It said it would “strengthen strategic cooperation with Austal by leveraging Hanwha’s capabilities and insights.” The acquisition of the shares is being made through an Australian entity set up by Hanwha Aerospace and Hanwha Systems. The company had previously said it would also seek a board seat at Austal after the share acquisition.

The South Korean company has been working to grow its share in naval shipbuilding since acquiring Daewoo Shipbuilding & Marine Engineering and then the Philly Shipyard in the United States. Its systems division is already a supplier of electronics for naval shipping.

Austal highlights that it has never been in a stronger position in its business. The company currently has an orderbook exceeding A$13 billion (more than US$8.6 billion). In addition, it says it expects a significant enhancement when the contracts are signed for Australia’s Landing Craft medium and Landing Craft Heavy projects for which it has already been selected.

 

Public-Private Partnership Develops First Methanol-Powered Cement Carrier

green methanol fueled cement carrier
Vessel will be able to run on a mix of green methanol and deisel to reduce emissions and manage operating costs (Heidelberg Materials)

Published Dec 11, 2025 8:22 PM by The Maritime Executive

 

A new project supported by the Norwegian government, along with German shipping company Hartmann Group, will demonstrate new opportunities in sustainable shipping, distributing cement in Norway’s domestic market. The vessel, which is due to enter service in the first quarter of 2028, will primarily use green methanol as its fuel, reducing CO2 emissions and demonstrating the emerging potential for sustainable shipping in smaller segments of shipping.

In early 2025, Heidelberg Materials Norway, part of one of the world's largest building materials companies, applied for the necessary funding from the Norwegian NOx Fund, a government initiative launched in 2008 to support projects that reduce emissions from shipping, industry, and offshore operations. It has funded over 1,000 projects, including LNG shipping, hybrid vessels, and shore power installations.

Heidelberg Materials is also a long-term member of the Green Shipping Program, which was launched in 2015 by the Norwegian Ministry of Climate and Environment. Administered by DNV, it seeks to promote low- and zero-emissions shipping in Norway. It has also supported the launch of 50 pilot projects within its focus on alternative fuels, vessel innovation, and scalable logistics.

Heidelberg was proposing a replacement vessel to carry the cement that would be larger and more efficient than its current fleet of seven to nine ships. A competitive tender was launched involving six companies, and the Hartmann Group was selected to design, own, and operate the vessel. InterMaritime, a former Hartmann company, will be the technical manager for the ship.

“This vessel is a tangible result of public-private collaboration. A NOK 60 million (approximately $6 million) investment from the Norwegian NOx Fund has enabled the development of a highly energy-efficient ship that sets a new benchmark for low-emission bulk transport,” says Tommy Johnsen, Managing Director, Norwegian NOx Fund.

Adding to the feasibility of the project, Heidelberg Materials has agreed to a 10-year charter for the ship.  The ship will primarily serve the Norwegian domestic market, transporting cement from a plant in Brevik to cities including Oslo, Bergen, Kristiansand, and Stavanger.

The ship will have the capacity to transport 9,000 tons of cement, over 1,000 tons more than its predecessor, but it will use less fuel due to an optimized design. It will be able to run on a variable mix of methanol and diesel to balance operating costs vs. emissions. Using the fuel mix, they anticipate the ship will cut CO2 emissions by 80 percent, up to 6,000 tons annually.

The Green Shipping Program called the project a milestone that expands its portfolio of contracted vessels. It seeks to demonstrate by supporting solutions, including hydrogen, ammonia, and battery-electric powered vessels, that there are multiple pathways toward zero emissions.
 

 

British Shipbuilder Babcock to Make Assemblies for U.S. Navy Attack Subs

Babcock's Rosyth Dockyard, where the assemblies for HII will be produced (Guinnog / CC BY SA 3.0)
Babcock's Rosyth Dockyard, where the assemblies for HII will be produced (Guinnog / CC BY SA 3.0)

Published Dec 9, 2025 9:52 PM by The Maritime Executive


Amidst reports of troubles and delays inside Britain's nuclear-submarine program, UK shipbuilder Babcock has announced plans to construct more submarine components for American defense prime contractor Huntington Ingalls Industries. Babcock already constructs missile tube assemblies for American subs, and will now begin building additional complex assemblies for incorporation into HII's Virginia-class attack submarines. As described, the deal could help de-bottleneck nuclear submarine production in the United States, a key priority for the Trump administration. 

"Leveraging Babcock’s reach and expertise in the U.K. will reinforce our supplier base, strengthen submarine production in the U.S., and support the trilateral AUKUS partnership," said HII president Chris Kastner in a statement. 

British Secretary of State for Defence John Healey endorsed the deal as well, calling it a "vote of confidence in the workers and skills of Scotland’s defense industry" and a sign that the UK is a "global leader for advanced marine and submarine engineering."

The announcement follows on the heels of a critical review from Rear Admiral Philip Mathias (ret'd), former director of nuclear policy at the UK Ministry of Defence, who told The Telegraph that the UK's overall submarine program had suffered from "a catastrophic failure of succession and leadership planning." 

"The UK is no longer capable of managing a nuclear submarine program," Rear Adm. Mathias said in an interview published last weekend. "Performance across all aspects of the program continues to get worse in every dimension. This is an unprecedented situation in the nuclear submarine age."

Delivery delays affect the ballistic-missile Dreadnought-class and the Astute-class attack subs, and the existing Astute-class boats face delays for maintenance as well, he said.  

Babcock has been helping address the problem. It is building the missile tube assemblies for Dreadnought, and its Rosyth yard is getting a $460 million upgrade to enable future drydocking and maintenance of the UK's nuclear ballistic missile submarines. Its infrastructure division recently completed a much-needed overhaul of a drydock at the Royal Navy's Devonport sub base, where the Dreadnought-class and the Astute-class boats are repaired. Drydock availability is a critical factor limiting Astute-class readiness, as the at-sea strategic deterrent provided by the Dreadnoughts takes priority in the queue for repairs. 

Top image: Guinnog / CC BY SA 3.0

 

Tech Startup Wants to Reward Generational Transfer of Shipbuilding Skills

Bath Iron Works shipyard workers aboard the future USS Harvey C. Barnum Jr. (DDG 124) during sea trials, July 15 (USN file image)
Bath Iron Works shipyard workers aboard the future USS Harvey C. Barnum Jr. (DDG 124) during sea trials, July 15 (USN file image)

Published Dec 10, 2025 8:29 PM by The Maritime Executive

 

A new startup supported by NOAA's tech accelerator program believes that it has a solution to the loss of older, more skilled workers from America's shipyards: an AI-powered training platform for the next generation, designed to capture and reward the expertise of retirement-age employees before they leave. 

Since the pandemic, a generational cycle of retirement has swept the American shipbuilding industry, taking with it the accumulated knowledge of thousands of experienced engineers, welders, fitters and electricians. Their replacements have to figure things out again, and the learning curve is steep. And departing workers with decades of experience may not always be willing to help pass on the knowledge for free. "Gatekeeping" behaviors are common in the trades, since older hands have a financial disincentive to help younger personnel compete for work at equivalent or lower wages. 

Florida-based Dolgo wants to short-circuit this problem with a private AI software service for shipyards. Aimed at engineering divisions, the software is a communications platform for personnel to collaborate on technical problems. The information shared in this way is captured by a large language model (LLM) AI platform, which incorporates the expertise into its knowledge base. Each item is tagged with the name of the person who contributed it, and they receive a bonus or benefit every time someone accesses their contribution. In this way, they receive a financial incentive for training the next generation, based on how useful the rest of the workforce finds the information. 

“We’re very excited to report positive testing on the prototype ahead of formally launching for the market in February 2026,” said Dolgo founder Mr. Nithesh Wazenn. “It is well established that one of the biggest challenges facing the shipyard industry is the looming cliff edge of large numbers of workers retiring and taking their expertise with them. We believe Dolgo’s AI software holds an answer. Retaining precious expertise will not only drive efficiency and improve safety - it can help prevent costly and time-consuming mistakes and equipment damage.”

Dolgo's development is supported by NOAA's Ocean Enterprise Accelerator, the Miami-based Seaworthy Collective, and by the University of South Florida College of Marine Science. The demand for a solution is substantial, the company says: the average age of American shipbuilders is about 55 years old, and attrition among the new hires that must replace them is unusually high, leading to escalating costs for training. Against this backdrop, shipyard demand is expected to double in the next decade, Dolgo says - so in addition to offsetting retirements, yards may have to grow their workforce in tough hiring conditions.

NTSB: Finding Loose Wire in Dali's Switchboard Took a Month

NTSB wires
Wire 1 shows crimping at far end of the tip, indicating a tenuous connection (Courtesy NTSB)

Published Dec 11, 2025 9:09 PM by The Maritime Executive

 

The National Transportation Safety Board (NTSB) has reported the probable cause of the container ship strike that took down the Francis Scott Key Bridge: a loose wire buried inside a switchboard. The agency has now released its complete report, detailing the findings of its forensic team - and the challenging, monthlong effort to find one loose wire on a 10,000-TEU boxship.

In the early hours of March 26, 2024, as the container ship Dali got under way outbound from the port of Baltimore, a high voltage breaker for a transformer tripped and shut down the ship's auxiliary power. This cut out the vessel's propulsion and steering, leaving Dali helpless and adrift. Efforts to restart were unsuccessful. Without a tug to assist, Dali drifted into a pier supporting the Francis Scott Key Bridge and destroyed it, collapsing the structure and killing six people. 

After the accident, the National Transportation Safety Board began an intensive effort to determine the cause of the blackout, and it summoned Dali's shipbuilder - HD Hyundai Heavy Industries - to send experts to assist. The ship was still in the channel, trapped in the wreckage of the bridge, but was accessible by boat for investigators to come aboard.

On April 1, representatives from HHI, the shipowner, the crew and the NTSB gathered at the Dali's switchboard to see if they could recreate the circumstances of the electrical fault. The high voltage breaker would not close, so HHI dispatched a circuit breaker specialist to the scene for another attempt. 

On the next try, on April 10, the breaker closed successfully. The transformer was left energized and the breaker left closed to see if it would trip again in the manner of the casualty voyage. Two days later, without warning, the breaker tripped and caused a blackout - just like it had on the morning of the accident. On April 29, as testing continued, it tripped for a third time.

At this point, HHI opted to remove and dig into the breaker. They found that an undervoltage release circuit (a safety control signal) was de-energized, a condition that would disconnect the high voltage breaker and cause the fault. Only at this point - after disassembling the electrical panel and dispatching three separate teams of experts from the OEM - did the investigators discover a loose wire in a single terminal block, one of hundreds in the panel. 

The panel was built with standard spring-grip terminal blocks for each wire connection. To make a connection, the spring is pushed back with a tool, a bare ferrule on the tip of the wire is inserted down into the terminal block, and the spring is released, forcing the ferrule against a contact. 

Aboard the Dali, each individual wire had a cylindrical label with the wire number on it. The label on this particular wire had been clamped too far down towards the tip, NTSB found, preventing it from being fully inserted. On lab inspection, the agency's technicians discovered evidence of scraping and arcing on the metal terminal and on the wire tip - a sign of a loose connection - and crushing at the very end of the ferrule, where the spring clamp had made a tenuous contact.

"Any shipboard movements or vibrations could have moved the wire, resulting in an interruption in the connection and causing electrical arcing," NTSB concluded. "Any interruption in the Wire 1’s connection would have caused the HR1 breaker to open, resulting in a [low voltage] blackout." 

According to NTSB, "HHI also stated that they did not have any specific materials, instructions, or training for their electrical installation technicians related to the installation of HV switchboards."

HHI, the shipowner and the shipmanager are currently engaged in litigation over the cause of the casualty. Owner Grace Ocean and shipmanager Synergy - which face massive liability claims for the destruction of the bridge - have filed a lawsuit claiming that HHI "defectively designed the switchboard in such a manner that wiring connections were not secure, could not be verified as secure, and could lose connection during normal operation." HHI disputes this allegation and is contesting the claim in court. 

In a statement, HHI said that the loose wire inside the panel should have been caught by technical inspectors post-delivery, and alleged that the resulting fault was a product of "inspection failures" during the ship's service life. The shipbuilder's maintenance guidance at the time of delivery included a recommendation to check terminal connections every three years, and HHI asserted that this was not properly performed.

"After the ship was delivered and continuing after subsequent re-sales, it was incumbent on the ship’s owner and operator to engage in regular and appropriate inspection and maintenance to ensure that the systems and components on the ship remained in seaworthy condition," HHI said in a statement. "Routine inspection over the past decade should have identified a wire that came loose over time." 

NTSB has recommended that the shipbuilder should "incorporate proper wire-label banding installation methods into [its] electrical department’s standard operating procedures" to ensure that wires can be fully inserted in terminal connections. It has also advised the vessel operator to incorporate "the use of infrared thermal imaging for routine monitoring of electrical components" in order to detect poor terminal connections during a vessel's service life.

Configuration errors

The loose wire tripped the breaker, but several additional configuration choices caused the situation to spiral. 

First, the breakers for the vessel's two transformers were set to manual mode, and so the shutdown of transformer 1 did not automatically prompt a switchover to transformer 2. If they had been in automatic mode, the initial blackout would have been shortened from 58 seconds to 10 seconds, giving the crew more time to react, NTSB said.

Second, the engine control system was set up to shut off the main engine if cooling water pressure dropped. When the cooling water pump shut off, this automatic safety system shut down the main engine to avoid damage, per class rules at the time of the vessel's construction. Though this met original class requirements, it "endangered the vessel because it prevented the main engine from being available following the initial underway blackout, thus reducing the vessel’s maneuverability," NTSB concluded. The agency called for more research on redundant / backup power systems to ensure that the ship maintains emergency maneuvering capabilities. 

Third, the crew had been using a flushing pump to supply fuel oil pressure to the auxiliary engines. The pump was not designed for this purpose, and was not set up to restart automatically when emergency generator power came back online. The pump was located two decks below the engine control room, too far away to access and restart manually in an emergency. Fuel pressure for the auxiliaries dropped, they shut down, and the vessel went into a second blackout - just as it approached the bridge pier. This pump configuration was not approved by class, according to NTSB.

"Using the flushing pump as a fuel supply pump sacrificed both redundancy and automation of the fuel supply system and violated established classification rules," said shipbuilder HHI in a statement, agreeing with NTSB's assessment. "Had the shipowner and operator used the ship’s transformer in automatic mode and the fuel supply system as designed and manufactured, power would have been restored within seconds, and the second blackout, which led to the tragedy, would not have happened."

Fourth, NTSB noted serious issues with the software of the vessel's Voyage Data Recorder, or "black box." The manufacturer's proprietary playback software limited access to just 36 hours of bridge audio data. To get more, NTSB extracted its memory and took it to the VDR OEM's headquarters, where the data was pulled out in a painstaking process over the course of a day and a half, then reassembled from thousands of one-minute snippets.

"The functional limitations of the software posed barriers to the NTSB’s efficient extraction and analysis of VDR data from the accident in the time-critical early stages of the investigation," the agency said. "While IMO regulations require that a VDR continuously records audio for at least 30 days, the . . . software made exporting the full 30-day audio dataset with commercially available software unfeasible."

Lastly, NTSB noted that the Francis Scott Key Bridge was not equipped to survive a vessel strike of a modern ship like Dali. The bridge had been hit before in 1980, but the ships of that earlier era were small, and the bridge's light fendering had been enough for protection. The replacement bridge will have to be built to a more robust standard for surviving contact with a Post-Panamax boxship, and NTSB has notified all owners of similarly vulnerable bridges to implement long-known safety standards for allision protection. 

 

CBO: Better Planning Could Cut Down U.S. Navy's Drydock Delays

USS Milius in drydock
Courtesy USN

Published Dec 11, 2025 10:46 PM by The Maritime Executive

 

The U.S. Navy surface fleet's maintenance-delay woes continue to worsen, according to a new review by the Congressional Budget Office (CBO). Challenges during yard periods have been building for years, and are a key impediment to generating readiness and deterrence. Known difficulties in planning and parts procurement are exacerbated by an aging fleet, CBO found in a review of maintenance data for destroyers and amphibs - and some vessels have experienced man-hour labor overruns in the range of 40 percent, raising cost and consuming scarce workforce resources. 

For its analysis, CBO looked at 14 years of U.S. Navy schedule data for destroyers and amphibs across the fleet. It compared the initial estimate of days in shipyard with the actual outcome, and the same for labor hours. On average, the Navy's yard-period estimates were longer in duration than what NAVSEA engineers had predicted for downtime when planning and building each ship class, indicating that real-world maintenance plans were more intensive than the designers' expectations. On top of that, actual shipyard periods were longer than estimates, by up to another 60 percent. 

On average, destroyer overhauls took 26 percent longer than estimated and used eight percent more labor hours, driving up cost, CBO found. Annual maintenance funding per destroyer has risen from about $7 million per year to more than $25 million per year since 2009. 

A big part of the reason is simply an aging combatant fleet, requiring deeper maintenance and more modernization in each yard period. Arleigh Burkes now average about 20 years of age, and many of the hulls are going through the scheduled time period for midlife refits. Deferred maintenance - due to extended deployments or other reasons - also adds to scope and cost growth. 

Other problems are essentially administrative and could be resolved with planning and supply chain improvements. Delays in pre-contract inspections lead to delays in finalizing scope of work and signing yard contracts; delayed yard contracts lead to delayed parts orders; delayed parts orders lead to slowdowns while waiting for deliveries. Skipped or poorly-done inspections lead to surprises mid-project, requiring more price negotiations and more delays for parts orders. 

In parallel with the repair work, modernization contractors for ship system upgrades were historically allowed to operate without full schedule coordination with the shipyard, leading to conflicts and delays. Repair yards and modernization contractors work on the same ship at the same time, but are hired and supervised by two different groups of Navy officials: Modernization contractors are overseen by Naval Sea Systems Command, while repair yards are overseen by regional maintenance centers (RMACs), leading to a bifurcated chain of command and difficulties in coordination. The Navy is attempting to smooth this out by requiring more advance planning for modernization contracts.

Over time, the Navy has been increasing its estimates for yard period times, reflecting the realities in drydock, CBO found. But the delays in drydock have been increasing too, so the gap between estimate and actual duration has persisted. In the amphib fleet, some egregious examples have been delayed for several years - even longer for USS Tortuga, which spent more than six years in one yard period. 

 

BOEM Holds First Offshore E&P Lease Sale Since 2023

Offshore rig in U.S. Gulf
BSEE file image

Published Dec 10, 2025 10:17 PM by The Maritime Executive

 

The Department of the Interior has completed its first offshore oil and gas lease auction in two years, handing out more than one million acres of E&P rights in the U.S. Gulf for a total of about $280 million. 

The biggest winners of this auction round were Shell, Chevron and BP, the largest players in the Gulf. In all, more than 200 bids were submitted on parcels amounting to just over one percent of the available lease acreage on offer. 

“The strong bidding we saw today reflects sustained industry confidence in the long-term potential of the U.S. outer continental shelf and the clear direction of this Administration to expand responsible offshore development,” said Acting Bureau of Ocean Energy Management Director Matt Giacona in a statement.

This year, bidders benefited from a  reduced royalty rate for offshore oil and gas production. Under the Biden Administration, during the last lease round, the minimum royalty was about 17 percent. Thanks to the One Big Beautiful Bill Act, the minimum federal share for production from federal waters has been lowered back down to 12.5 percent, a rate last seen for deepwater leases in 2007. The Bureau of Ocean Energy Management said that it offered this low rate in order to encourage more investment and participation. 

BP submitted the highest total in bid value at $61 million for 50 lease tracts. Woodside, Chevron and Murphy Oil followed, along with half a dozen other names. Most blocks received just a single bid, but some were bid up, including a parcel that went to Chevron for more than $18 million. 

"After two years of unnecessary delay in federal offshore leasing, today’s sale marks the beginning of a new generation of opportunity for safe, responsible development in the Gulf," American Petroleum Institute VP of Upstream Policy Holly Hopkins said in a statement.

From here out, Gulf lease auctions will be more frequent because of new language in the 2025 reconciliation bill, which requires more frequent acreage sales. BOEM officials say that each auction will likely be smaller in total bidding volume because of the increased tempo. Oil majors will not feel compelled to buy up parcels in volume during a rare auction window, and will be able to wait for the most convenient timing, BOEM says. 

CRIMINAL CAPITALI$M

NYK and Mitsui OSK to Settle Long-Running UK Pricing Fixing Allegations

UK Southampton
MOL and NYK agreed to settle charges of price fixing for transporting cars to the UK (Southampton Port)

Published Dec 11, 2025 5:18 PM by The Maritime Executive

 

Two of Japan’s leading shipping companies and operators of car carriers have agreed to settle a long-running case in the UK that alleged the major shipping companies worked as a cartel to fix prices and collude in vehicle shipment contracts. The UK case is similar to other complaints brought in jurisdictions around the globe, which all found the car carriers had colluded to set global pricing.

Most of the cases had been brought by regulators, including the European Union, which in 2018 fined the shipping companies €395 million for price fixing and bid rigging for their RoRo operations. The UK case, however, was brought as a class action on behalf of the car buyers. Lead attorney and class representative Mark McLaren estimated in 2000, when the case began, that it was valued at £150 million.

McLaren hailed the proposed settlement with NYK and MOL, saying the system had given both “consumers and businesses an effective and fair route to recover monies owed as a result of cartel behavior that they could never pursue on their own.”

All told, it is estimated that over a decade between October 2006 and September 2015, 17 million new vehicles were involved. All the major car and truck brands, including Ford, Vauxhall, Volkswagen, Peugeot, BMW, Mercedes-Benz, Nissan, Toyota, Citroen, and Renault, were reported to have been subjected to the higher shipping prices. 

Mitsui OSK and NYK had gone to trial in January 2025, with the decision still pending from the nine-week trial. McLaren, who was assisted by Scott + Scott UK LLP, reported today, December 11, that the car companies, however, have agreed to a settlement without any admission of liability. It reported that NYK and MOL would pay a total of £54 million ($72.3 million) to settle the charges that the companies had coordinated rates, allocated tenders, and managed capacity in the industry. The companies were also charged with exchanging commercially sensitive information to maintain or increase the price of intercontinental shipping of new vehicles.

“This settlement marks a significant milestone for UK consumers and businesses that paid higher shipping fees for new purchased or leased vehicles as a result of the cartel as it concludes the litigation and guarantees them significant compensation,” said Cian Mansfield, Managing Partner of Scott+Scott UK. “This case is groundbreaking as it is the first time damages will be distributed to UK businesses under the opt-out regime. We are delighted that five years of hard work on behalf of the class has paid off.”

The UK case was brought against MOL and NYK as well as “K” Line (Kawasaki Kisen Kaisha), WWL/EUKOR (Wallenius Wilhelmsen Group), and CSAV (Compañía Sud Americana de Vapores). CSAL settled the charges in December 2023, agreeing to pay £1.5 million, and the other two agreed to settle in June 2024, with “K” Line paying £24.5 million and WWL/EUKOR paying £13.25 million.

The UK’s Competition Appeal Tribunal is set to convene on January 15, 2026, to consider and approve the settlement with MOL and NYK. McLaren highlights that when the case is completed, it will have achieved a total settlement of £92.75 million ($124 million). A total of £55.87 million ($74.7 million) will be available for the consumers and businesses impacted by the price fixing.

 

South Africa Completes Deal for Privatization of Durban Container Terminal

Durban South Africa
South Africa completed the partnership to operate Durban's container terminal (Transnet)

Published Dec 10, 2025 5:35 PM by The Maritime Executive

 

South Africa’s Transnet officially signed the partnership agreement with International Container Terminal Services (ICTSI) for the privatization and upgrade at the Durban port. It comes more than two years after the deal was first announced and after courts rejected a challenge from Maersk’s APM Terminals.

Durban, which accounts for nearly half of South Africa’s container volume, has been plagued with problems and consistently ranked at the bottom of the league tables issued by the World Bank and others. Congestion and delays in handling containers have plagued the port and become a hindrance to trade.

South African President Cyril Ramaphosa called for a “new era” for South Africa’s ports and promised major reforms. Saying that the government would drive the revitalization to make the ports an engine of economic growth, Transnet was ordered to improve its management and operations, as well as launch an investment program. The government determined to bring in international partners to help drive the efforts.

ICTSI was selected in July 2023 after a long tender process. Almost immediately, APM, which had been placed second, complained about the administration of the tender. It contended that ICTSI had failed to meet the solvency measures in the tender and ultimately took its complaint to the courts in 2024. South Africa’s High Court dismissed the case in October 2025.

Transnet signed the 25-year partnership agreement at a ceremony in Durban on December 10. Under the terms, Durban Container Terminal Pier 2 will be held in a new partnership, 51 percent owned by Transnet and 49 percent by ICTSI. The terminal operator based in the Philippines is responsible for the operations and overseeing the investments and improvements.

“Through our deliberate and expansive investment in new equipment across our terminals, the performance of DCT Pier 2 has been on an upward trajectory,” said Transnet Group Chief Executive Michelle Phillips during the ceremony. “We expect that our partnership with ICTSI will further propel this crucial terminal to its full potential.”

The plan calls for approximately $650 million of investment into the port. It will include new equipment and advanced technology.  It is expected to enhance terminal productivity and increase throughput, ultimately improving the terminal’s operational efficiency and container supply chains.

They are forecasting that DCT Pier 2 will increase capacity from 2 million to 2.8 million TEU. Gross crane moves per hour are also forecast to improve from 18 to 28, while ship working hours will increase from 60 to 120. They forecast that these improvements will also lower logistics costs and improve service quality.

ICTSI senior vice president Hans-Ole Madsen said it was the start of a shared commitment to revitalizing South Africa’s maritime infrastructure. The partnership officially launches on January 1.



Brazilian Court Agrees to Bar Maersk and Others in Santos Terminal Auction

Santos Brazil
Santos needs to add a new container terminal as it is near capacity but the plan seeks to bar all the current operators from bidding

Published Dec 9, 2025 5:13 PM by The Maritime Executive

 

A Brazilian court handed down a recommendation that sides with the country’s port administrator concerning the structure of the auction for the next port terminal concession in Santos. The court agreed with the authority that has proposed a structure that would bar the current operators of terminals in the port from bidding in the first round of the auction.

The Federal Court of Accounts in Brazil decided not to overrule Antaq (National Agency for Waterway Transport) in its proposal for the auction for a concession to operate a new terminal in Santos. The proposal calls for a two-stage auction process. The first phase will be limited to operators that do not currently have concessions in Santos. It would proceed to a second phase, which would be opened up to all the companies, only if the first round failed to receive a satisfactory proposal.

Antaq says its goal is to spur competition in the port and increase the total investments. Santos is the largest port in South America, but it is outgrowing its container capacity, which could be maxed by 2028. The auction is expected to be the largest in Brazil’s ports, and it will result in the largest container terminal in the country. 

The current port operators, including Maersk’s APM Terminals, MSC’s TiL, CMA CGM, and DP World, all have already worked to expand their operations. They, however, have complained about the proposed structure for the sale, which would prevent any of them from bidding. Experts believe it is unlikely that the auction would ever reach a second round during which the four large companies could enter proposals. Maersk led the opposition, filing the legal complaint in June.

In a vote of six to three, the panel found that “simply disagreeing with the regulatory merit does not constitute illegality.” They agreed with Antaq’s proposal and encouraged the regulator to go further in the requirements. They said the port is currently highly vertically integrated, with the shipping companies controlling the terminals. 

Maersk, however, argues that consolidation would benefit transshipments and the port’s operations. It contends that excluding the current operators would “significantly reduce the project’s potential.” Maersk and MSC already share a terminal operation and CMA CGM in 2024 purchased the largest operator.

Antaq expects the winning bidder will invest between $1 and $2 billion in the first phase of the development of the Tecon Santos 10 terminal with a total 25-year concession. The project is expected to increase the port’s container capacity by 50 percent. Among the other elements will be a requirement for an internal railway yard that will have a daily throughput capacity of at least 900 TEU.

Large international companies are all reportedly preparing to place bids. China’s COSCO Shipping is expected to be one of the bidders, and it has been reported that HMM might place a bid as it seeks to expand its terminal operations. The Philippines' ICTSI has already said it looks forward to bidding, and PSA is likely to enter. Local companies that operate smaller terminals in Brazil’s other ports are also likely to enter the bidding.

The expectation is that Antaq will move to launch the auction in the first quarter of 2026. However, it is also likely that Maersk or others will file litigation seeking to block the auction structure.



 

Bananas Ahoy as Overboard Containers Wash Ashore

overboard container driven on shore
Containers that fell overboard were drive onshore during the storm (Andy/BirderNikon on X)

Published Dec 11, 2025 6:36 PM by The Maritime Executive


Five days after eight containers carrying bananas were washed overboard from the reefer ship Baltic Klipper in Southampton Water, bananas in the thousands are still washed up onto the beaches of the West Sussex coast in southern England. A total of 16 containers were lost overboard, with others transporting plantains and avocados.

It has turned into a bit of a bonus day for residents who have been finding the jetsam within the wreckage of the containers. With heavy seas and high winds, the containers were driven onto shore, and many were broken apart. As of Tuesday, 11 of the 16 containers had beached. HM Coastguard reports that a helicopter and an aircraft have been carrying out searches for the missing containers.

 

 

Police, customs authorities, and the Receiver of Wrecks have warned beachcombers not to eat the bananas or to take them home.  But local people have interpreted prevailing Wrecks and Salvage law in a more free market fashion, and have helped themselves to the bananas, rather than see them going to waste.

Even after five days at sea, what were green and unripe bananas when washed overboard have now ripened despite the cold conditions. True to the spirit of journalistic inquiry, your correspondent can attest that seawater has not degraded the taste of the bananas, with the only threats to health posed by skin slippage and by eating too many of them.

 

Bananas ended up driven inland as the storm continued (CJRC)

 

Due to the stormy and windy weather in the Selsey area, bananas have been swept off the beach into coastal roads, making for slippery driving conditions in some areas.

Shipping in the port of Southampton, which was delayed on Saturday, December 6, has now resumed. The port was operating, however, with a single lane for shipping as the authorities worked to locate the containers. The P&O Cruises ship Iona held overnight at her berth in Southampton, has now reached Tenerife, the first stop on its somewhat curtailed cruise.  

The Baltic Klipper was shifted into Portsmouth on Monday night. Pictures show additional toppled containers still aboard the ship.

 

 

Members of the British government have been calling for strong efforts to ensure the shipping company and its insurers will pay the costs of the cleanup. Seatrade, which operates the vessel, said its insurers are fully engaged in the process, and in the meantime, volunteers are scouring the beaches, aiding in the cleanup (and possibly taking a few bananas home as a reward).