ILA Suspends Talks, Warns of “Little Faith” in Reaching Deal On Time

ILA is citing the use of an Auto Gate system by APM Terminals in Mobile as the cause of the suspension (APM Mobile file photo)

PUBLISHED JUN 10, 2024 12:36 PM BY THE MARITIME EXECUTIVE

 

 

The International Longshoremen’s Association is continuing its tough stance against port automation, announcing today the suspension of contract negotiations due to an issue over automated gates. Noting it is only four months until the master contract expires covering all  the U.S. East Coast and Gulf Coast ports, the ILA said in its statement that it has “very little faith that these issues will be addressed in time.” In the past, the union has said it will not go past the September 30 expiration and would strike.

The suspension came just one day before the ILA and the United States Maritime Alliance (USMX) were scheduled to meet for talks regarding the master contract. Talks have been underway since last year for the local contracts with the goal of having completed that phase and now moving into the master contract. The ILA says it will not meet with USMX until the current automation issue is resolved.

The ILA is citing APM Terminals, Maersk’s port company, for the suspension saying the company is utilizing an Auto Gate system, which processes trucks without ILA labor, at the Port of Mobile, Alabama. The ILA says it has heard reports that the system is being used in other ports as well.

In announcing the suspension, they said this is another example of efforts to circumvent the current contract. They are calling the Auto Gate system “a clear violation,” while also accusing APM Terminals and Maersk of “repeated attempts” to circumvent the contract.

“There’s no point trying to negotiate a new agreement with USMX when one of its major companies continues to violate our current agreement with the sole aim of eliminating ILA jobs through automation,” said International President Harold Daggett, who serves as chief negotiator for the union.

The contract covers at least 45,000 dockworkers along the U.S. East Coast and the Gulf Coast ports. The union claims a total membership of 85,000 members with its reach extending to the Great Lakes ports, inland river ports, and south the Bahamas and Puerto Rico.

The ILA has long expressed deep concern about automation, and the union reiterates it in its statement. They cite President Daggett’s firm stance against any technology that threatens ILA jobs. It is a long-running issue for the East Coast union which in today’s announcement cites, “The ILA lost tens of thousands of jobs in the 1970s due to containerization.”

They are specifically citing Maersk saying the shipping company “has a track record of pushing automation.” In addition, they are also calling on President Joe Biden to recognize the threat to American jobs.

The ILA is saying that it “believes there are many issues that need to be resolved in their current agreement before they resume negotiations.” With less than four months until the contract's expiration, “the ILA has very little faith that these issues will be addressed in time.”

Daggett is saying that he thinks, “This time, it caught up with them." He accuses management of historically dragging its feet during contract negotiations. It is a different position from just a month ago when the union and USMX said they were confident in reaching an agreement in time.

Experts have warned of devastating consequences to the U.S. economy from a strike that would come in the final stretch of the presidential elections. In March, the trade group representing the U.S. apparel, footwear, and accessories industry called for “immediate engagement” by the Biden Administration similar to its efforts a year ago to complete the agreement for the West Coast port. 

Six years ago in 2018, the ILA and USMX reached tentative terms in June 2018, well ahead of the expiration. Final ratification took place in early September with a signing ceremony four days before the end of the contract. Both in 2012 and again in 2018 a contract agreement was reached without any disruption or delays at the ports. Since 1977, USMX and its predecessor organizations said it has successfully negotiated 10 new contracts with the ILA without a coast?wide work stoppage.
 

 

DFDS Sells Historic Passenger Route to Focus on Logistics

Pearl Seaways and her running mate will be acquired by the Swedish ferry company along with the route (DFDS)

PUBLISHED JUN 10, 2024 3:20 PM BY THE MARITIME EXECUTIVE

 

 

Denmark’s famed ferry operator DFDS Seaways announced that it is selling one of its original routes that has been in service since 1866 and the founding of the company. Sweden’s Gotlandsbolaget is acquiring the route, including two ships, terminals, and employees for the mini-cruise service between Oslo, Norway and Frederikshavn and Copenhagen in Denmark.

The service is being described as a “cherished public institution in Denmark and Norway,” with both companies reporting service will continue uninterrupted. The Swedish ferry operator is paying approximately $57.6 million and expects to close the transaction in October. DFDS will continue to operate the route will October 31.

DFDS reports the route carries more than 700,000 passengers annually. Revenue in 2023 was approximately $130 million, which was about three percent of DFDS overall.

Explaining the reasoning for selling the route, DFDS says it is mostly a passenger route with cruise ferries and limited freight capacity and market size. The route operates primarily for leisure travel offering a mini-cruise lasting up to approximately 19 hours overnight between the two countries traveling approximately 275 nautical miles. 

“DFDS is however today a transport and logistics company bridging Europe and the route deserves a new owner that can continue to invest in and develop the great maritime experience the route offers for passengers,” said Torben Carlsen, CEO of DFDS.  He said the route “deserves a new owner that can continue to invest in it.” After the transaction, DFDS will have 21 Danish-flagged vessels employing around 1,100 seafarers.

Gotlandsbolaget is acquiring the Ro-Ro cruise ferries Pearl Seaways and Crown Seaways. Introduced in 1994, Crown Seaways (35,500 gt) has space for 1,790 passengers and 450 cars. Pearl Seaways was built in 1989. She is 40,000 gt with accommodations for 1,800 passengers and 320 cars. The company also is buying the port and terminal agreements and will take on approximately 800 sea and land-based employees.

“We see great potential in this business," said Håkan Johansson, CEO of Gotlandsbolaget. "We are doubling the number of employees within the group, so it is a big step for us. Gotlandsbolaget aims to expand within passenger shipping and cruises and this is a very attractive combination of the two."

Gotlandsbolaget has four ferries currently and operates the sea route between Gotland and the mainland with terminals in Visby, Nynäshamn, and Oskarshamn. The two acquired vessels will remain registered in Denmark and the company reports it will launch a new brand for the operation. This year they also relaunched the operations of Birka Stockholm, another cruise ferry. The ship was acquired after Birka closed its cruise operations during the pandemic.

 

Experts Discuss Port City Smart Sustainability at 2024 Smart Harbors Forum

Image 1. At the opening of the Smart Port Vision Pavilion, TIPC Chairman Hsien-yi Lee (4 th from right) joined telecom industry representatives to share and promote the latest smart-port application developments with pavilion visitors.

PUBLISHED JUN 10, 2024 12:49 PM BY THE MARITIME EXECUTIVE

 

[By: Taiwan International Ports Corporation]

Taiwan International Ports Corporation (TIPC)’s Smart Port Vision Pavilion at this year’s 2024 Smart City Summit and Expo exhibition, held from March 21st to 23rd at the Kaohsiung Exhibition Center, reflected the exhibition’s digital x green transformation theme. The pavilion shared the results of the Taiwan ports’ Trans-SMART 2.0 Plan, introduced the joint TIPC Chunghwa Telecom 5G AIoT-based 24/7 Smart Harbor & Coastal Surveillance System Verification Project, presented new sensor technology for a 5G-integrated logistics network, and demonstrated a 24/7 IoT-based oil pollution surveillance system and an autonomous surface vehicle designed to collect and dispose of waste floating in harbor waters. These innovations would help to raise the effectiveness of port water area management and infuse new vitality into port city sustainability.

During the Summit and Expo, TIPC participated in the 2024 Smart Harbors Forum held by the Kaohsiung City Government on March 22nd in the exhibition center’s 301a conference
room. To address trends in smart transformation and net zero sustainability, forum organizers invited TIPC Executive Vice President Chin-jung Wang, Deputy Director of the MODA Administration of Digital Industries Jiunn-Shiow Lin, Chunghwa Telecom Chairman Shui-yi Guo, Far EasTone President Ching Chee, Gorilla Technology Group Vice President Feng-Xu Song, NSYSU College of Marine Sciences Vice Dean Dr. Shiau-Yun Lu to deliver presentations on topics addressing digital net zero, sustainable development, and smart applications in the context of port cities. The presentations and associated workshops, which centered on smart, sustainable harbor development, attracted over 200 attendees in all.

In his presentation, TIPC Executive Vice President Chin-jung Wang discussed the important role that smart application and system integration is playing in enhancing TIPC port competitiveness. New and innovative digital solutions, he emphasized, have been steadily introduced and integrated in the four critical areas of work safety, operational efficiency, service quality, and sustainable development. Under the forum theme “Digital Twin: Realizing a Sustainable Future for Smart Ports”, VP Wang discussed the results of Port of Kaohsiung’s transformation over the past several years as well as how the port has addressed the brisk pace of smart technology development and worked to achieve port digital resilience and then to partner with port industries to achieving smart port development. He also updated forum attendees on his company’s progress with installing intelligent berth status e-billboards, the Port-168 system, the 3D smart operations map base, and KPCT operations management platform. Looking ahead, smart port efforts at TIPC will focus on leveraging “Digital Twin” functionality and installing IoT-connected sensing equipment to collect real-time dynamic data on TIPC ports and on leveraging AI- enabled technologies coupled with VR analytics to model and predict actual port operation conditions to raise operational efficiency. Furthermore, with regard to TIPC’s industry partnerships, VP Wang discussed his company’s policies encouraging firms to use TIPC ports as test beds for innovative new technologies and incentivizing port industries to digitally transform their operations. In the spirit of SDG 17, TIPC is committed to working in partnership with other port stakeholders to promote sustainable smart-port development and to make the entire maritime and ports sector smarter, safer, and more efficient.

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

 

Auramarine Wins Methanol Fuel Supply System Order for Mein Schiff 7 Vessel

PUBLISHED JUN 10, 2024 12:44 PM BY THE MARITIME EXECUTIVE

 

[By: Auramarine Ltd.]

Auramarine Ltd, the leading fuel supply systems pioneer for the marine, process and power industries, has announced that it has won an order from Meyer Turku shipyard for a methanol fuel supply system and associated equipment for the luxury Mein Schiff 7 cruise vessel owned by TUI Cruises. 

Auramarine’s equipment deliveries began in 2023 and continued over the spring of 2024.  Sea trials were conducted in May 2024, and the vessel is scheduled for delivery over the summer this year. The newbuild is the first of its kind in the maritime industry and aligns with TUI Cruises’ sustainability strategy of offering the first climate-neutral cruises by 2030. In conjunction with this, TUI Cruises’ fleet is reducing CO2 emissions by 27.5 per cent in absolute terms by 2030.

Mein Schiff 7 is a state-of-the-art vessel that prioritises sustainability and efficiency. With a length of 316 meters and a width of 35.8 meters, it can accommodate nearly 2,900 passengers and 1,000 crew members. The cruise ship’s operations will be powered by low-emission marine diesel oil, with a sulphur content of 0.1 per cent, and a shore power connection for almost zero-emission operation in port (which accounts for 40 per cent of its operating time).

Tapani Pulli, Deputy CEO at Meyer Turku, said: “With the building of Mein Schiff 7, TUI Cruises is setting new standards for driving sustainability and emissions reduction within the cruise market. As the first methanol-ready cruise vessel, having the right technology and infrastructure to successfully and safely deliver the new fuel is central to efficient and sustainable operations.  Auramarine is pioneering the development of systems that meet the shipping industry’s requirements within the energy transition, and we are delighted to have them onboard supporting Meyer Turku and our customers.”

Auramarine’s methanol fuel supply system ensures the safe delivery of methanol from the service tank to the master fuel valve, regulating the flow, pressure and temperature of the methanol to meet the specific requirements of the engine. The system actively maintains the supply pressure within the specified tolerances during load changes and filters the fuel to prevent any impurities from entering the engine. As part of the order, Auramarine will supply the methanol bunker and transfer systems including the vital automation and safety systems that ensure safe and reliable operations. A gas detection system and a methanol bilge system are also included.

“We have worked very closely with Meyer Turku throughout the development and design of this methanol fuel supply system for this project,” said John Bergman, CEO at Auramarine.

“We have spent a significant amount of time, using our 50 years of experience, to bring to market new supply solutions that empower our customers to deliver on their sustainability strategies while meeting shipping’s decarbonisation targets.  We are honoured that Meyer Turku and TUI Cruises have selected and entrusted us to deliver our methanol supply system and to play a part in the development of this pioneering cruise vessel.”

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

Auramarine and Specs Corporation to Strengthen Presence in South Korea

John Bergman, CEO of Auramarine & Leeman Lee, President of Specs Corporation Ltd.

PUBLISHED JUN 9, 2024 11:14 PM BY THE MARITIME EXECUTIVE

 

[By: Auramarine]

Auramarine, the renowned provider of fuel supply systems for the marine, power and process industries, has announced that it has signed a representative agreement with Specs Corporation Ltd., a leading Korean marine equipment and services provider. This strategic partnership underscores Auramarine’s commitment to delivering unparalleled solutions to the maritime sector and strengthens the company’s presence in the South Korean market.

Under the terms of the agreement, Specs Corporation will serve as an official Auramarine sales representative for its fuel supply units. This includes its conventional systems, as well as its specialist solutions for methanol and ammonia, and will be applicable for newbuildings, retrofits, commissioning and maintenance services. The collaboration will enable Auramarine to leverage Specs Corporation’s extensive network and expertise in providing services to South Korean shipyards, engine manufacturers and ship owners.

Commenting on the announcement, John Bergman, CEO of Auramarine said, “We are delighted to embark on this journey with Specs Corporation as our trusted partner in the important South Korean market. They have been serving engine manufacturers for a long time, have close and collaborative relationships with shipowners and shipyards and a deep knowledge of exactly what is required from fuel supply systems. Importantly, Specs’s established reputation and forward-thinking vision align seamlessly with our own, making them an ideal partner.”

Mr. Leeman Lee, President of Specs Corporation Ltd, also stated, “Specs Corporation’s mission is based on providing superior performance, service, and solutions to ensure customer satisfaction. We are delighted to welcome Auramarine to our portfolio of market-leading technologies. We both share the drive to be a part of the energy transition within the industry and this collaboration, which includes fuel supply systems for methanol and ammonia, represents a clear step forward in our commitment to offering cutting-edge solutions to the South Korean maritime industry that drive increased sustainability. We look forward to a successful and prosperous partnership with Auramarine.”

Both Auramarine and Specs Corporation boast a legacy of excellence spanning five decades. The new alliance signifies a union of expertise, innovation, and customer-centric values and a commitment to setting new benchmarks for excellence in the South Korean maritime market and beyond.

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

 WWIII

Dutch Navy Accuses Chinese Jets of "Unsafe" Close Approach

Dutch Ministry of Defense

PUBLISHED JUN 9, 2024 5:55 PM BY THE MARITIME EXECUTIVE

 

Chinese fighters made an "unsafe" close approach to the Dutch frigate Zr.Ms. Tromp off the coast of China last week, according to the Netherlands' ministry of defense. 

The Tromp was deployed to the East China Sea to join in the international monitoring mission for enforcement of UN sanctions on North Korea. While the Tromp was under way in international waters, two Chinese fighters made a close approach to the frigate. "This created a potentially unsafe situation," the ministry warned. 

After this incident, the Tromp's helicopter was approached by a Chinese helicopter and two fighter jets. 

The encounter concluded without mishap and Tromp continued onwards to her journey, headed for Japan. She will be crossing the Pacific to join in the U.S. Navy's RIMPAC 2024 exercise off Hawaii, which begins June 26 and runs until early August. 

A Chinese helicopter also approached a Dutch naval helicopter (Dutch Ministry of Defense)

The run-in was the latest in a long series of tense interactions between the Chinese military and the Western warships tasked with enforcing UN sanctions on North Korea. Though it is a signatory to the sanctions measures, China is widely believed to allow banned maritime trade with Pyongyang.

Tensions between China and Western-allied neighbors are also running high. Last week, the Philippines accused Chinese forces of stealing a food drop near the Philippine base at Second Thomas Shoal. The China Coast Guard intercepted one out of the four parcels that were parachute-dropped to the outpost during an airborne supply run in mid-May. During that altercation, the China Coast Guard boats moved to within five meters of the base, prompting Philippine marines to draw firearms as a precautionary measure. China routinely blockades the outpost using its coast guard and maritime militia vessels, often with aggressive and hazardous tactics. 

The Armed Forces of the Philippines has also accused the China Coast Guard of attempting to forcibly block a medical evacuation at Second Thomas Shoal last month. Philippine Coast Guard spokesman Cmdre. Jay Tarriela said that Chinese vessels intentionally rammed a rigid hull inflatable and made multiple attempts to cut off the medevac vessels. 

 

New Zealand to Reverse its 2018 Offshore Oil Exploration Ban

CONSERVATIVE REVANCHINIST GOVERNMENT

iStock

PUBLISHED JUN 9, 2024 6:08 PM BY THE MARITIME EXECUTIVE

 

 

New Zealand’s government is moving to reverse a ban on offshore petroleum exploration, part of a suite of proposed amendments to the country’s Minerals Act. In a statement on Sunday, Resources Minister Shane Jones said that the reversal of the ban is targeted at resolving energy security challenges posed by rapidly declining natural gas reserves.

New Zealand issued a moratorium on new offshore oil exploration permits in 2018, during the Labor Coalition government of former Prime Minister Jacinda Ardern. While environmental groups at the time hailed the decision as a historic victory, the opposition parties led by the National Party (now the ruling party) described the ban as economic vandalism. Reversing the ban was an election pledge of current Prime Minister Christopher Luxon.

The Minerals Amendment Bill will be the latest piece of legislative reform introduced by the government aimed at revamping the energy sector. The Bill will be introduced to Parliament in the second half of this year. Recently, the government also introduced the Fast-track Approvals Bill, which is seen as an incentive for renewable energy investments. The bill has provisions such as one-stop-shop approvals, allowing energy projects to obtain a wide range of environmental and planning permits in one process.

“Our job as the Government is to provide the right policy settings to enable the sector to get to work, and that’s exactly what we are aiming to achieve through these amendments. New Zealand cannot ignore the significant economic contributions the petroleum and resources sector delivers,” said Shane Jones.

New Zealand government estimates that the petroleum and mineral sectors contributed nearly $1.2 billion to its GDP in 2020-21 and $144 million in government revenue in 2022-23. Extra natural gas projects will help plug electricity generation gaps for intermittent sources such as wind, solar and hydro, the administration said.

The minerals bill also seeks to change how petroleum exploration permits are allocated. Currently, permits are awarded through a competitive tender process. The bill proposes allowing the choice between a tender and a non-tender (called priority in time) method.

 

Distribution of Food From Gaza Aid Corridor "Paused" Again

Courtesy U.S. Department of Defense

PUBLISHED JUN 9, 2024 10:50 PM BY THE MARITIME EXECUTIVE

 

Distribution of food aid from the U.S.-operated maritime aid corridor for Gaza has paused once again, one day after repairs to the Pentagon's temporary floating pier were completed. About 500 tonnes of aid has reached shore, but on-the-ground security issues are still preventing the food from reaching the local populace.

The U.S. military has deployed a carefully choreographed, complex cargo delivery system called Joint Logistics Over The Shore (JLOTS) to bring much-needed food aid into Gaza. This expeditionary capability consists of a fair-weather temporary pier, designed to work in conjunction with an offshore receiving station and a flotilla of landing craft. The Pentagon believes that it will be able to handle up to 150 truckloads of aid per day, enough to satisfy about 40 percent of Gaza's typical needs. Contractors are handling the truck-driving delivery from the pier to shore, and the White House has emphasized that no American servicemembers will enter Gaza during the operation. The World Food Programme and a consortium of NGOs are taking care of the distribution on the ground, in consultation with USAID.

In an interview with CBS on Sunday, World Food Program director Cindy McCain said that distribution from the aid pier has been "paused." On Saturday, two warehouses belonging to WFP were "rocketed," McCain said. One WFP staffmember was injured, and WFP and the rest of the humanitarian community in Gaza are undertaking a review of the tenuous security situation.

"We’ve stepped back for the moment to make sure that we’re on safe terms and on safe ground before we’ll restart. But the rest of the country is operational," she told CBS. "We’re doing . . . everything we can in the north and the south."

USAID confirmed to AP that it is working with NGOs to restart aid delivery once a security review has been completed. 

The maritime aid corridor has had a difficult start. Beginning May 25, unexpectedly heavy weather hit the Eastern Mediterranean. Wind and waves drove three of the operation's landing craft ashore and caused the pier to break up. The components were recovered and towed to Ashdod, where the system was repaired and reassembled in sheltered waters. After about two weeks of work, it was towed back out to the operating site on Gaza's shores, and it resumed its operations on Saturday. 

The startup process was equally challenging. During the logistics operation to set up the pier, one of the sealift ships carrying its components had an engine room fire, forcing it to return to Florida for repairs. After construction began, a patch of rough weather forced the team to withdraw to Ashdod and assemble the pier in a sheltered port, foreshadowing later weather-related difficulties. Shortly after it entered operation, three people were injured in a forklift accident as the sealift ship USNS Roy P. Benavidez was unloading, including one person who sustained critical injuries. The initial deliveries of aid were further delayed by security problems on the ground during early attempts at distribution.

 

Finland Wants a Spill Response Vessel to be Ready for "Dark Fleet" Risks

iStock / SHansche

PUBLISHED JUN 9, 2024 11:08 PM BY THE MARITIME EXECUTIVE

 

 

Finland is raising the alarm over growing risks of a spill from Russia’s "dark fleet" of tankers, and it has vowed to push the European Union (EU) to invest in a standby response vessel specifically dedicated to the waters of the Gulf of Finland, which are not easy to navigate during winter.

The Nordic nation’s Ministry of Transport and Communications contends that with Russia resorting to using shadowy oil tankers that are unusually old, the risks of oil spills in the Baltic Sea and especially in the Gulf of Finland are real. The country estimates that on average, 70 old tankers with a capacity to transport more than 100,000 tons of crude oil each navigate through the Gulf of Finland every week. Analysis by the Norwegian Coastal Administration shows that the majority of these ships in the Baltic are significantly old, with an average age of 29 years.

Finnish authorities believe that the possibility of a spill is heightened in Baltic winter conditions, considering the older vessels are poorly equipped and not suited to ice navigation. The fact that the vessels frequently engage in ship-to-ship transfers further adds to the risk of incidents. In the event of a spill, recovery in ice conditions is more demanding and expensive than in open-water spills.

In response to this threat, Finland is pushing the European Maritime Safety Agency (EMSA) to acquire a standby vessel that is capable of navigating in ice and suited to conditions in the northern parts of the Baltic Sea.

Currently, EMSA has a network of 14 oil spill response vessels, but only one of them is stationed in the southern parts of the Baltic Sea. The network has been established through contracts with commercial operators, and although they continue to carry out commercial operations, they cease normal activities and mobilize anywhere in European waters and shared sea basins in the event of an oil spill.

“Finland feels that the EMSA should contract a new vessel for the northern parts of the Baltic Sea in addition to the existing vessel stationed in the southern parts,” said the Ministry of Transport in a statement.

It added that having a dedicated vessel for the northern part of the Baltic is critical and will ensure that EMSA spreads its network of stand-by oil spill response vessels more evenly across European waters.

 

Russian Tanker Moves Oil to Notorious Shadow Tanker to Avoid Sanctions

Ocean Hermana (left) was caught last year in an Iranian oil transfer and now linked to a Russian STS (MMEA)

PUBLISHED JUN 10, 2024 2:03 PM BY THE MARITIME EXECUTIVE

 

 

Russian tankers sanctioned by the United States for price cap violations are copying a technique from the Iranians using ship-to-ship transfers to avoid the U.S. and European sanctions. Reuters is citing data from Kpler of a 1-million-barrel STS completed last week while Bloomberg working with TankerTrackers.com tracked the vessels and reports it was the first of several likely transfers. This comes as Russia is desperate to maintain its oil income which Bloomberg reports rose almost 50 percent in May versus a year ago.

The U.S. Treasury began listing tankers in October 2023 for violations of the G7 Russian oil price cap. Among the first two listed was the SCF Primorye (158,000 dwt) which at the time was registered in Liberia. The U.S. accused the crude oil tanker and its Dubai-based management of transporting Novy Port crude at prices above $75 per barrel after the $60 cap was imposed. After that, the tanker in December switched to the Russian flag but according to Bloomberg’s research, the vessel remained idle for nearly six months. The U.S. has sanctioned about 40 tankers and listed Sovcomflot as well as various managers.

Working with TankerTrackers.com, Bloomberg reports that SCF Primorye loaded about one million barrels of Urals crude and traveled from Novorossiysk on the Black Sea to a point off Malaysia about 70 miles east of Singapore. The two organizations identified the Ocean Hermana (159,000 dwt) as the tanker that came alongside for the transfer on June 3. Kpler confirms it reporting that the vessel is still in the anchorage but expected to sail for China.

It is not the first time the Ocean Hermana, registered in Panama, has been caught in an illegal transfer. In October 2023, the Malaysian Maritime Enforcement Agency (MMEA) detained it and another tanker carrying Iranian oil for suspicious activities. Bloomberg tracked the Ocean Hermana to multiple voyages shuttling between Singapore and the Malacca Strait to China. The vessel is 20 years old with its current manager and insurance details uncertain. Some reports are saying it is managed from India, but Bloomberg said the listed company is only supplying crew to the tanker.

Typical of other STS transfers, the vessels went dark according to Bloomberg turning off their AIS signals. SCF Primorye resumed transmitting and is now showing that it is sailing to Hong Kong with Bloomberg reporting its draft indicates it is now empty.

Bloomberg’s analysis reports another Russian tanker that was sanctioned in February 2024 is also sailing laden to Asia. Now known as Brask (156,500 dwt) and registered in Russia, the crude oil tanker was named NS Burgas when it was listed in February. It had been flagged in Liberia till 2024, then briefly in Gabon, before switching to Russia. 

Bloomberg estimates Brask will arrive in Southeast Asia next week. They are also reporting that seven other crude oil tankers recently went dark in the Black Sea, but note to transit the Turkish Straits they are required to turn on the AIS signal.

 

Container Feeder Sinks off Sihanoukville

Image courtesy National Committee on Maritime Security

PUBLISHED JUN 10, 2024 3:39 PM BY THE MARITIME EXECUTIVE

 

[Brief] On Sunday, a small container feeder went down off the coast of Sihanoukville, Cambodia, according to the government's National Committee for Maritime Security. 

The Thai container vessel Chiang Laan was under way off Sihanoukville when it encountered severe weather conditions off Koh Rong Island, including high winds, powerful waves and torrential rain. The ship took on water and began to sink. With assistance and coordination from national authorities, all crewmembers were safely rescued by a nearby fishing vessel, and they were returned to port without further incident. 

Image courtesy National Committee on Maritime Security

The 10 Thai crewmembers were provided with a medical exam, accommodations and food. No injuries were reported. 

Photos from the scene show some of the small vessel's 53 containers afloat on the surface. The extent of any pollution risk remains to be assessed. 

Chiang Laan was a 150-foot coastwise container feeder owned and flagged in Thailand. The house-aft, low-freeboard feeder ship was built in 1994, and had a maximum cargo capacity of about 1,300 dwt. Consistent with many locally-trading vessels in Southeast Asia, the Chiang Laan had no record of international port state control inspections.

 

Video: Taiwanese Tanker Holed in Allision with Port Stanchion

Damage to the tanker after the allision with the stanchion at the harbor's outer entrance (Facebook)

PUBLISHED JUN 10, 2024 5:03 PM BY THE MARITIME EXECUTIVE

 

 

[Brief]  A product tanker operating a coastal service in Taiwan appears to have misjudged a turn leaving the port of Kaohsiung on Saturday, June 8 with disastrous results. The vessel received a large gash on its starboard side aft, but fortunately it did not puncture tanks and the vessel was not in danger of sinking.

The Tong Yun (40,500 dwt) was built in 2011. It is owned by the China National Petroleum Corporation (CNPC). 

 

 

The vessel was departing Kaohsiung midday on Saturday and the port authority said it turned to avoid other traffic in the port. The starboard side however came in contact with the concrete stanchion which ripped a large hole in the hull.

The port authority reports the vessel applied for emergency permission to return to the dock and was back on berth Saturday evening. To ensure environmental safety, oil booms were deployed around the ship and personnel were dispatched to monitor the ship’s status.

CRIMINAL CAPITALI$M

Norway Fines Shipowner $750,000 for Illegal Export of Ships for Scrap

Teekay contends its inspectors visited the yard to ensure it maintained Hong Kong Convention standards (Teekay)

PUBLISHED JUN 10, 2024 4:33 PM BY THE MARITIME EXECUTIVE

 

 

Four years after raiding the offices of the shipping company then known as Teekay Offshore, Norwegian regulators today imposed an approximately $750,000 fine for illegally exporting two ships to India for scrapping. The company today known as Altera Infrastructure continues to dispute the allegations saying that it has not received replies and justification from the Norwegian National Authority of Investigation and Prosecution of Economic and Environmental Crime (Økokrim).

The two vessels in question were shuttle tankers operating in the North Sea ferrying oil from the larger ocean-going tankers to terminals. Økokrim contends for commercial reasons the maximum operating age of North Sea shuttle tankers is 20 years and both vessels were exported for scrap as they approached 20 years.

Both vessels were built in 1998 and at the time they were retired were registered in Panama. The Navion Britannia was 124,000 dwt and departed Norway in March 2018 bound for India. The Alexita Spirt was 127,000 dwt and departed four months later in July 2018. Both vessels were beached in India to be dismantled.

The following year, Teekay highlighted that since 2017 it had recycled four vessels in India, all at recycling facilities that have been verified to be in compliance with the Hong Kong Convention. “Before selecting these facilities, we audited the yards to ensure they could meet our strict standards. In addition, throughout the recycling process, which typically takes about 6-8 months, our staff continually monitor HSEQ performance and visit regularly to perform inspections and provide skills training to increase the safety and sustainability performance of the yard,” the company said in a release posted to its website.

Økokrim however is calling scrapping on the beach such as what is done at Alang, India “a major global environmental problem.” They highlight the environmental concerns for pollution from heavy metals and other hazardous substances. Norwegian law requires companies to receive approval to transport vessels outside the country as waste.

“Økokrim takes a serious view of export of Norwegian-operated obsolete ships and their associated waste and environmental problems to developing countries with weaker legislation and law enforcement than Norway,” said Maria Bache Dah, Økokrim's police prosecutor. They said they had offered the company a briefing on the investigation’s findings.

A spokesperson for the company responded to media inquiries claiming that the vessels had been offered for further service. They contend the company spent a year looking for further service and expected that the ships would “get a new life.”

“We completely disagree,” said Steffen Rogen, spokesperson for Altera. He says the company believes, “that there is no factual basis for either allegation.” He says they are demanding the background and basis for the claims. The company cooperated after Økokrim raided its offices in Stavanger in 2020. 

The dispute highlights the challenges shipowners face in disposing of obsolete, end-of-life, vessels. There are only a handful of recognized facilities for recycling and it will be getting harder as the Hong Kong Convention comes into force after its 2023 ratification. Yards in Asia are mostly not approved by the EU for disposal. 

Altera spun off from Teekay in March 2020 emerging as a public-traded infrastructure company. Under Norwegian regulations, the company has two weeks to consider whether they will accept the fine.

 

Strong Consumer Demand Drives Up TEU Imports but Also Widens U.S. Trade Gap

Import TEU numbers expected to remain strong based on consumer spending (Los Angeles file photo)

PUBLISHED JUN 10, 2024 5:56 PM BY THE MARITIME EXECUTIVE

 

 

With strong consumer spending continuing, container import levels at the major U.S. ports are expected to reach their highest levels in two years. The National Retail Federation raised for the second consecutive month its forecast for container imports but the strength of the imports also contributed to a widening of the U.S. trade deficit.

The U.S. Department of Commerce reported that the April trade deficit grew by 8.7 percent. It was the largest it has been since October 2022 with the data citing a surge in imports including motor vehicles, computers, and industrial supplies. The value of imports was up 2.4 percent while exports also edged up by less than one percent.

“Consumers are continuing to spend more than last year, and retailers are stocking up to meet demand, especially as we head into peak shipping season,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “The high level of imports expected over the next several months is an encouraging sign that retailers are confident in strong sales throughout the remainder of the year. Unfortunately, retailers are also facing supply chain challenges again, this time with congestion at overseas ports that are affecting operations and shipping rates.”

The trade figures are projected to continue as the demand for imported merchandise remains strong according to the Department of Commerce. The one positive note they highlighted was a narrowing of the gap with China as the value of goods imported from China declined in April.

The strength of consumer spending also led the NRF to increase its forecast. They jumped the second quarter forecast for the number of TEUs by nearly three percent versus last month’s prediction with the NRF now predicting a total of 6.22 TEU in Q2, which is better than four percent above their expectations in April.

“In the last couple of years, we have witnessed a flattened peak season that has stretched out the volume of imports over extra months versus the strong, consolidated surge seen in the past. Reasons range from retailers restocking following strong sales after the pandemic to trying to get ahead of increased tariffs on goods from China set to take effect in August and ensuring sufficient inventories for the holiday season amid strong consumer demand,” said Ben Hackett, Found of Hacket Associates.

The retail trade association however expects that we are at the beginning of at least a seven-month string of import levels above two million TEU per month at the major ports. They noted that imports surpassed the two million TEU mark for the first time this year in April. They are forecasting further gains peaking at 2.17 million TEU in August but remaining steadily above two million through at least October. The third quarter total is forecast at 6.33 million TEU.

The import numbers come as NRF is forecasting that 2024 retail sales, excluding automobile dealers, gasoline stations, and restaurants to focus on core retail, will grow between 2.5 and 3.5 percent in 2024 over 2023.

For the first half of 2024, they are now projecting a total of 12.1 million imported TEUs. This represents a 15 percent increase versus 2023.