MONOPOLY CAPITALI$M

Offshore Services Giant Proposed in $4.7B Deal to Merge Saipem and Subsea 7

Saipem and Subsea 7 would merge to form and offshore services mega company (Subsea 7)

Published Feb 24, 2025 7:44 PM by The Maritime Executive

 

Two of the leaders in the offshore sector for energy, Saipem and Subsea 7 entered into an understanding that is designed to lead to a merger of equally to create an offshore services giant. The deal valued at nearly $4.7 billion would combine the companies to create a global presence with a fleet of more than 60 construction vessels and 45,000 employees.

The companies highlighted that they have highly complementary geographical footprints, competencies and capabilities, vessel fleets, and technologies that will benefit the global client base. They believe a combination would also unlock annual synergies of approximately €300 million to be achieved in the third year after completion, with one-off costs to achieve such synergies of approximately €270 million. The combined company would have a current backlog of €43 billion and annual revenues of nearly €20 billion.

Explaining the rationale for the combination, the companies told investors it would create a more comprehensive solution for customers, expand the expertise and experience base, and create a global and diversified operation. It would also lay the foundation for future innovation in the industry. The management of both Saipem and Subsea7 said they share the conviction that there is compelling logic in creating a global leader in energy services, particularly considering the growing size of clients’ projects.

While recognizing the potential, analysts were quick to question the logistics of completing such a combination. They cited a difficult regulatory approval in part reflected by the companies’ projection that it would be mid-2026 before the deal could be completed.

The companies reported they have completed a memorandum of understanding for the combination which calls for a merger of equals. Each company would own 50 percent of the combined entity with the new company being known as Saipem 7. Current plans call for Alessandro Puliti, CEO of Saipem, to be appointed as CEO of the combined company while John Evans, CEO of Subsea 7, would be the CEO of the offshore business which will comprise all Subsea7 and Saipem’s Offshore Engineering & Construction activities.

The companies’ large shareholders are expressing their support for the combination. Siem Industries, the largest shareholder of Subsea7, would own approximately 12 percent of the new company, while Eni and CDP Equity, the largest shareholders of Saipem, would own approximately 10.6 percent and approximately 6.4 percent of the new company.

The companies independently developed as leaders in the offshore services industry tracing their origins to the 1950s and the start of modern offshore operations. Each has been involved in the consolidation and growth of the industry. The modern Subsea 7 emerged in the early 200s and reports it is the product of over 25 different legacy companies and businesses with Kristian Siem continuing to drive the company as its chairman. Saipem was also the product of mergers and served as the service supplier for Eni until 2015 when it reduced its holding setting the stage for the modern company.

The timeline for the deal calls for completing the merger agreement by mid-year. They will require extensive antitrust approvals and shareholder approval from each company.

 

Video: French Navy Carries Out Rare Shock Trial on New Frigate

Courtesy Marine Nationale

Published Feb 25, 2025 5:11 PM by The Maritime Executive

 

 

The French Navy has carried out a rare "shock trial" on one of its new frigates to evaluate its resilience to near-miss explosions. It is the first time that the service has performed one of these tests in years.  

Video released Tuesday shows that the service set off a substantial underwater explosion just off the starboard beam of the frigate FLF Courbet. Unlike the U.S. Navy, which conducts shock trials while the ship holds position, the Marine Nationale had Courbet under way at a slow bell when the explosion went off. 

The Marine Nationale said that the purpose of the trial was to prepare the vessel and crew for operations "in a context of increasing threats." The idea of the shock trial dates back to WWII, when the U.S. Navy found that near-miss explosions from naval mines could damage or disable mission-critical systems, taking the target vessel out of action - even if it managed to evade a direct hit.

The U.S. Navy uses a series of up to four "shots" for each trial, typically performed with the first-in-class vessel shortly after delivery. The maximum shock intensity occurs in the third shot, and is equal to two-thirds of the maximum shock design value of the ship. The test process is expensive, typically costing tens of millions for preparation, evaluation and post-shock repairs. 

In the past, full-ship shock trials have revealed design flaws with components that previously passed rigorous testing standards. As an example, early testing of the Flight I Arleigh Burke-class destroyer USS John Paul Jones led to significant shock-hardening revisions, which were tested seven years later aboard the Flight IIA USS Winston Churchill. Though Churchill did worse overall on the test, many systems that had been revised performed much better than the first time - and the second test led to significant upgrades and QA checks on all Flight IIA hulls. 

ALT. FUEL

Ship Managers Make Changes to IMO Net-Zero Framework to Avoid Legal Action

InterManager President: Sebastian von Hardenberg, CEO of Bernhard Schulte Shipmanagement (BSM).

Published Feb 25, 2025 7:45 AM by The Maritime Executive

 

[By: InterManager]

Ship managers have expressed concerns in connection with the International Maritime Organization’s future net-zero framework and have suggested concrete changes which they believe would make the proposals more effective.

Acting on behalf of the global shipmanagement sector, InterManager, the international association for ship managers, has submitted a proposal to the next meeting of the IMO’s Marine Environment Protection Committee (MEPC83) to suggest important changes.

The submission warns that, in its current form, the greenhouse gas (GHG) proposal doesn’t properly account for the involvement of a third-party International Safety Management (ISM) Manager.

Highlighting that roughly 20% of the global fleet is operated by a third-party technical ship manager as the ISM Manager, the submission asserts the need for further refining to make it applicable in practice and to avoid future national implementing acts being open to inevitable and avoidable litigation by ship managers. 

In comparison to the charterer and shipowner, the ship manager has no material influence over the GHG intensity of a ship. Ship managers have no say regarding the type of engine powering the managed ship, nor whether sails, solar, fuel cells or other installations are installed on board. Such choices are decided exclusively by the shipowner. 

“Ship managers are not consulted and, in addition, have no influence as to which fuels are procured and supplied to any of the managed ships, neither contractually nor in practice. The matter is negotiated between the shipowner and the charterer and agreed in the charter party agreement for the ship, together with speed and consumption, the remaining significant parameters impacting on its GHG intensity,” the submission states. 

However, the current proposed draft amendments to MARPOL Annex VI on the IMO net-zero framework suggest making ship managers the sole responsible entity for penalties related to GHG emissions. InterManager says this clearly misidentifies the ship manager as the polluter to be held responsible and penalised which, as well as being factually wrong, could lead to legal challenges. 

Further, by assigning liability for compliance fees to the ship manager, they in turn, are forced to ask shipowners to provide upfront financial security to cover potential risks of insolvency or defaults. This forces significant amounts of equity to be tied up in security, limiting cash flow available for growth or investment in new ships.

InterManager President Sebastian von Hardenberg commented: “We Ship managers are fully committed to playing our part in shipping’s journey to net zero. However, when it comes to the GHG intensity of a ship, ship managers have no say whatsoever in any of the decisions that result in material impact; they are not even consulted. In shore terms, we are the Facility Managers, not the Factory Owners.

“In taking our points into consideration, the IMO can develop a more practical and equitable framework for decarbonisation that is supported by all stakeholders within the shipping industry,” he said.

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

Designs for NYK’s Ammonia Bunker Vessel Advances

Design approvals are advancing the project to develop an ammonia-fueled ammonia bunkering vessel (NYK)

Published Feb 25, 2025 7:51 PM by The Maritime Executive

As the industry prepares for the commercial introduction of the first ammonia-fueled marine engines, efforts are continuing to develop the infrastructure that will be needed to support ammonia at scale as a fuel for the maritime industry. Japan’s NYK Group (Nippon Yusen Kabushiki Kaisha) working in partnership with Seatrium and its design company LMG Marine, is reporting a groundbreaking step in advancing the sector.

The group’s design for an ammonia-fueled ammonia bunkering vessel has passed the next key milestone in its development. ClassNK reviewed the design engineering developed by LMG and issued the next Approval-in-Principle for the project. The partners report the design will now be submitted to the Maritime and Port Authority of Singapore for evaluation. Singapore hosted the first ammonia bunkering operations and certification program in early 2024 for the converted offshore support vessel developed by Fortescue. 

The AiP certification validated the ammonia-fueled ammonia bunkering vessel design’s compliance with stringent safety, technical, and environmental standards. LMG Marin provided design capabilities, leading to a Hazard Identification Study (HAZID) for design validation. The comprehensive HAZID conducted was instrumental in ensuring optimal safety, performance, and operational reliability. 

The partners report the vessel design incorporates the consortium's two key features to ensure safety and operational reliability. It uses ammonia fuel dual-fuel engines from IHI Power Systems and a bunkering boom by TB Global Technologies. The bunkering boom features a unique technology called the High Speed Ammonia Purging Emergency Release System (ERS), which enables a reliable and efficient disconnection between vessels in an emergency.

NYK is already at the forefront of ammonia-fueled shipping. In 2024, it completed the conversion of its pioneering LNG-fueled tugboat Sakigake into an ammonia-powered vessel. It completed one of the first ammonia bunkering operation which used truck-based delivery and the vessel is now demonstrating operations in Tokyo Bay.

The effort to develop an ammonia bunker vessel began several years ago. In September 2022, the project received its first AiP certification based on a 3D model.

NYK said the design for the bunker vessel is an essential contribution to developing the infrastructure needed for ammonia bunkering. The designs will be reviewed by the authorities in Singapore, which already is one of the world’s largest bunker ports, and seeks to be a hub for innovation.

Buyers Alliance Launches Large Tender to Support E-Fuel Container Shipping

Hapag-Lloyd launches the first service as the second tender sets ambitious goals for e-fuels (Hapag-Lloyd)

Published Feb 25, 2025 7:19 PM by The Maritime Executive

 

The buyers' alliance established in 2023 to spur demand for decarbonization in shipping officially opened its second, larger tender for shipping services this time requiring the use of the e-fuel. It comes as the first contract which was awarded to Hapag-Lloyd for low-emission shipper services is set to kick off in 2025 and run into 2026.

The concept behind the initiative known as ZEMBA (Zero Emission Maritime Buyers Alliance) and facilitated by the Aspen Institute builds demand by aggregating the shipping needs of members ranging from Ikea and Nike to Levi Straus and Electrolux. Over forty major manufacturing and consumer brands are currently members of the alliance. The group launched its first tender in 2024 saying the goal was to accelerate commercial deployment of clean energy powered shipping. By aggregating demand, they are enabling economies of scale and building lead-edge demand to encourage the shipping and fuel industries to pursue their initiatives.

Under the first tender, well-known brands including Amazon, Patagonia, Bauhaus, New Balance, Nike, REI, and others agreed to purchase over one billion TEU miles on the route between Singapore and Rotterdam in 2025 and 2026. Hapag as the winner of the tender agreed to provide an independently certified and exclusive waste-based biomethane service.

The second tender launched today and accepting proposals through the spring of 2025 shifts to a focus on e-fuels. ZEMBA reported in October 2024 that a survey of the industry found sufficient predicted supply of both e-methanol and e-methanol-capable vessels in the container segment to support ZEMBA’s focus on e-fuel deployment. They noted however that many producers remained at the pre-FID stage, casting doubt on whether those projects would begin production on projected timelines and, related, if e-fuel-capable dual fuel vessels would actually run on e-fuels without spurring demand.

With the second tender, ZEMBA intends to aggregate approximately 86 billion tonne nautical miles of demand for the emissions abatement associated with e-fuel-powered shipping to be deployed starting in 2027. This equates to 1.5 million TEU transported across the Pacific by e-fuels, assuming a benchmark distance of Shanghai to Los Angeles and projects enabling companies to abate approximately 500,000 metric tonnes of greenhouse gas (GHG) emissions, subject to final commercial details.

“Getting e-fuel-powered shipping on the water for the first time through this collaborative forward procurement will be a huge technical and commercial innovation milestone for the sector,” said Ingrid Irigoyen, President and CEO of ZEMBA.  

A qualifying bid for ZEMBA’s tender will be a proposal from a containership carrier or consortium for e-fuel-powered shipping for three to five years, starting around 2027. All bids must demonstrate at least a 90 percent lifecycle emission reduction for the primary propulsion of the vessels compared to a high-emission fuel baseline. 

ZEMBA will select the best proposal(s), and after vetting and commercial negotiation, members will enter bilateral contracts with the winner(s). For this tender, ZEMBA is open to the potential of multiple winners. Results of the second tender are expected to be announced by the end of 2025.  

NorthStandard, CORE POWER and Lloyd’s Register Call for UK Action

Published Feb 25, 2025 7:55 AM by The Maritime Executive

 

[By: NorthStandard]

New paper proposes framework to support UK development of advanced, safe, small nuclear reactors as a reliable and scalable zero-emission maritime power source.

The UK is well positioned to lead the safe development and deployment of new nuclear power systems for commercial ships and Floating Nuclear Power Plants (FNPPs), according to a new report from CORE POWER, NorthStandard and Lloyd’s Register (LR).

Technology company CORE POWER, global marine insurer NorthStandard and maritime professional services provider LR have jointly published Advanced Maritime Nuclear: A unique opportunity for the UK. The new paper sets out a policy framework for the UK Government to support the deployment of advanced small nuclear reactors on commercial ships and FNPPs.

The Department for Transport should include nuclear-powered shipping and FNPPs in an updated Clean Maritime Plan (CMP) and long-term nuclear strategy, the report argues.

Global shipping currently depends on fossil fuels for close to 99% of its energy consumption, but the International Maritime Organization (IMO) is aiming for its greenhouse gas (GHG) emissions to reach net zero by around 2050. However, alternative fuels options (including biodiesel, methanol, hydrogen and ammonia) face major cost, production, transportation and use challenges.

In the foreword to the paper, Lord Mountevans comments: “The UK has the skills, expertise, and history of innovation to lead the development of nuclear-powered shipping. By leveraging our decades of experience with small reactors for the Royal Navy, we can decarbonise maritime transport, create jobs, and strengthen Britain’s position as a clean energy world power.”
 
The UK pledged to triple nuclear energy generation capacity at COP 28. The Civil Nuclear Roadmap to 2050, published by the last government, envisaged nuclear technologies, from Advanced Small Modular Reactors (A-SMRs) to large-scale nuclear plants as part of the UK’s energy mix. These new, safe and advanced nuclear technologies in modular designs, which allow for straightforward manufacturing and regulatory approval processes that enable dramatic energy efficiency gains for global shipping. NorthStandard’s participation in the new paper reflects the role commercial insurability will play in future nuclear operations in the civil maritime space, particularly to cover shipowners’ liability.

Paul Jennings, Managing Director, NorthStandard, commented: “The ability to commercially insure nuclear propelled ships will be vital to the success of bringing nuclear to maritime.  It is important that governments understand the need for a civil marine nuclear liability convention within the framework of IMO and work towards creating an appropriate liability regime.”

With the right investments and policies, the UK can develop a multi-billion-pound industry according to the report. In addition to zero pollution, nuclear powered ships would not rely on shore power in port and could even feed electricity into the grid.

FNPPs could also be used to alleviate the issues surrounding shore power and expensive connections to the UK national grid.

CORE POWER’s founder and CEO, Mikal Bøe, said: "History has shown that there has never been a great naval power that wasn't also a great maritime power. Maritime nuclear is the catalyst that can reverse the trajectory of the British shipping sector, creating unique competition to Chinese shipbuilding and ocean transport. The UK has been at the centre of global shipping for centuries, and this report reinforces that maritime nuclear power is not only necessary to improve the energy effectiveness of shipping dramatically but also a £2.5 trillion economic opportunity. Over time, the cost of inaction will far outweigh the cost of being the champion in this rapidly emerging market.”

Commenting on the launch of the research paper, Andy McKeran, LR’s Chief Commercial Officer, said: "As nuclear technology advances toward maritime applications including Floating Nuclear Power Plants, global regulatory alignment is crucial. Existing frameworks must be updated to reflect modern reactor designs and operational needs. The UK has the expertise to lead these efforts at the International Maritime Organization (IMO) and with the International Atomic Energy Agency (IAEA), setting the foundation for safe, insurable, and scalable nuclear-powered shipping."

Together, CORE POWER, NorthStandard and LR aim to expand on the potential role for safe and sustainable nuclear technology within the maritime industry at the next London International Shipping Week (LISW) in September 2025.

Advanced Maritime Nuclear: A unique opportunity for the UK can be downloaded here.

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

Bound4Blue Installs Three Sails on an EPS Product Tanker

Courtesy Bound4Blue

Published Feb 24, 2025 11:26 PM by The Maritime Executive

 

[By bound4blue]

bound4blue has completed the installation of its breakthrough eSAIL® suction sails on tanker vessel Pacific Sentinel with a streamlined single-stop process for Eastern Pacific Shipping (EPS) at Besiktas Shipyard in Turkey during a planned drydocking.  

Three 22-metre, DNV Type Approved eSAILs® were installed on the 50,000dwt Pacific Sentinel in under a day per unit, as planned. The installation took place during a scheduled vessel drydock, with preparatory work completed in advance. The fully autonomous wind-assisted propulsion system (WAPS) will help the vessel reduce overall energy consumption with forecasted energy consumption savings of around 10% depending on vessel routing, slashing OPEX and emissions to air, while also enhancing regulatory compliance. 

Fast-track, single-stop benefits 

The installation heralds a landmark in numerous regards, signifying EPS’ first step into wind-assisted propulsion – as a continuation of its ambitious decarbonisation programme - while also marking bound4blue’s first tanker installation. The Spanish-based wind pioneer has undertaken a fast-track “single-stop” process, ensuring minimal vessel downtime with all work undertaken during planned vessel maintenance at the shipyard.  

The fast-track, single-stop installation combined vessel groundwork, such as fitting pedestals for the eSAILs® and welding, with the simultaneous preparation and programming of the sails. This efficient approach helped minimize installation time. 

David Ferrer, Co-founder and CTO, bound4blue explains: 

“We’re committed to helping shipping companies, such as EPS, embrace clean, proven, wind power in the simplest, most cost efficient and effective manner. Thanks to our collaboration with shipowners, operators, shipyards, and other key partners in all installations carried out by bound4blue, we have achieved a quick, robust, and high-quality deployment procedure. In this case the vessel and sails were fully prepared in advance, ensuring they could be lifted and bolted into place without extending the planned time at the yard.” 

Easy advantages 

Ferrer adds that the nature of the eSAIL® unlocks further advantages for cost, weight savings and efficiency on what could otherwise have been a demanding task: 

“The fact that this is an MR Tanker creates unique challenges in terms of ATEX zones and air draft limitations, but the eSAILs® simplicity is the ideal solution.  

“It allows for non-EX-proof units, which streamlines the process, and reduces CAPEX, while their high performance achieves substantial savings without requiring excessively large sails, eliminating the need for tilting mechanisms and allowing for compatibility with the vessel's existing air draft. It is, we believe, an ‘easy’ way for such vessels, and many other demanding shipping segments, to access the compelling commercial, regulatory and environmental advantages of wind power.” 

Ensuring regulatory compliance  

The installation was also completed in collaboration with the American Bureau of Shipping (ABS), ensuring compliance with the highest classification and safety standards. Achieving a ‘wind-assisted’ notation played a key role in verifying the structural integration of the eSAILs® with the vessel while aligning with regulatory frameworks such as the EU ETS, CII, and FuelEU Maritime. 

Sustainable partnerships 

bound4blue has installed its solution on five vessels, with many more in its growing order book. EPS, which signed the agreement for the Pacific Sentinel in February 2024 and has now successfully completed this installation, further extended its collaboration with bound4blue in December 2024 through a new agreement for the installation of three eSAILs® on an MR tanker under construction at New Times Shipbuilding in Jiangsu Province, China. This installation is scheduled for late 2025. 

Speaking of the collaboration with bound4blue, Mirtcho Spassov, Decarbonisation Manager at?EPS, comments: “We are committed to reducing emissions across our fleet by embracing cutting-edge green technologies, including wind-assisted propulsion. We need the right partners to achieve meaningful impact, and we’ve found bound4blue, with their proven technology and solutions-driven approach, to be an excellent match. This successful installation is testament to our partnership, and we look forward to harnessing the benefits of wind propulsion in support of our drive to decarbonise. We look forward to completing our second installation later this year.” 

Delivering progress 

The eSAIL® units work by dragging air across an aerodynamic surface to generate exceptional propulsive efficiency. The technology is suitable for both newbuilds and retrofitting across the huge majority of vessel segments, including, but not limited to, Tankers, Bulkers, Ro-Ros, Cruises, Ferries, Gas Carriers, and General Cargo vessels.  

eSAILs® help shipping companies simplify compliance, and achieve advantage, with regulations including EU ETS, CII and FuelEU Maritime, while offering a typical payback of less than five years. 

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

 HIGH SEAS CRIMINAL CAPITALI$M

Indonesia Arrests Pertamina Oil-Shipping Executives in $12B Corruption Case

Indonesia arrested the CEOs of toe oil and shipping companies and a total of seven individuals on charges of corruption (AG's Office)

Published Feb 25, 2025 3:07 PM by The Maritime Executive

 

Indonesia’s Attorney General’s Office revealed the details of an ongoing corruption case that they allege cost the state $11.85 billion (193.7 trillion rupiahs) and ran for at least five years between 2018 and 2023. Seven executives were arrested Monday night, February 24, including the CEO of the oil company Pertamina, CEO of the shipping company Pertamina International Shipping, the director of one of the retail operating units of the company, and executives from other companies including a terminal operator.

The Deputy Attorney General for Special Crimes said the investigation had been launched in October 2024 and based on their finding they believe there had been a series of acts of corruption that harmed the state. They interviewed 96 witnesses, as well as experts, and extensively reviewed documents. 

They detailed an elaborate plot that they said involved rejecting domestically supplied petroleum and reducing the capacity and readiness of domestic refinery capacity so that domestic petroleum production was not fully absorbed. Indonesian law requires that the company first source domestic supplies before importing petroleum for domestic needs. The charges contend the executives were rejecting domestic crude oil products saying they did not meet specifications, although they either did or could have been refined further.

The conspirators are alleged to have exported domestic oil labeled as not meeting standards. At the same time, they imported oil products for domestic use. 

The charges further allege there was price manipulation and a criminal conspiracy to fix pricing. They imported oil to make up for the needs but reportedly brought it in at a lower quality than stated and blended it in the storage tanks.

The CEO of Pertamina International Shipping is alleged to be a conspirator in the corruption case. The AG’s office found that there was a markup on the shipping contracts. They allege the state paid a fee of 13 to 15 percent which was illegally generating profits from the transactions. 

Among the individuals reported detained were Yoki Firnandi, CEO of Pertamina International Shipping, and Riva Siahaan, CEO of Pertamina, the state-owned oil and gas company. A total of seven executives were taken into custody with media reports indicating they are facing up to 20 years in prison if found guilty. Each could also be fined one billion rupiah, approximately $61,000.

The company issued a statement saying that it was ready to cooperate with the ongoing investigations. It called for the “presumption of innocence,” while saying it would respect the investigation. 

Russia Signs Port Investment Deal With Myanmar's Military Junta

FASCISTS OF A FEATHER HANG TOGETHER

Myaw Yit Pagoda, Dawei, Myanmar (file image courtesy Paingpeace / CC BY SA 4.0)

Published Feb 24, 2025 9:19 PM by The Maritime Executive

The Russian government has signed an MOU with the military dictatorship of Myanmar to build a special economic zone in Dawei, a small port town on Myanmar's narrow Malay Peninsula coastline. 

The memorandum - signed by Russian economic development minister Maxim Reshetnikov and Myanmar's investment minister Kan Zaw - covers the construction of a seaport, a coal-fired powerplant and an oil refinery at Dawei. A Thai consortium entered into a similar port development MOU with Myanmar's previous government, but the deal fell apart in 2021.

The zone would be 50,000 acres in size, providing room for industrial development. Reshetnikov told Russian media that "oil refining is still the most complex element," and that this might not be actualized. "There is a desire of the Myanmar side to have a refinery. Our companies are still studying the economics of such a project, it is very complicated from the point of view of economic feasibility," he said. 

The project's success will require the junta to retain control of Myanmar, with assistance from Russian and Chinese arms suppliers. Since seizing power and overthrowing the elected government in 2021, Myanmar's military forces have been steadily losing ground to a loose coalition of rebels. According to the BBC, the junta had full control of just 20 percent of the country as of November, and rebel groups have been slowly advancing on several fronts.

 

Wrong Container Weights Led to Stack Collapse on U.S.-Flagged Boxship

Courtesy NTSB

Published Feb 25, 2025 3:49 PM by The Maritime Executive

 

The Verified Gross Mass (VGM) regulation that took effect in 2016 was supposed to cut down significantly on the risk of misdeclared weights in container shipping, which can cause stack collapses and dangerous stability issues. A recent incident involving a U.S.-flagged boxship shows the potential hazards that still exist if incorrect weights are entered in booking systems and if containers aren't reweighed before loading. 

In early 2024, a booking agent for cargo departing California was preparing a reservation of 40 container slots for the February 3 sailing of the U.S.-flagged boxship President Eisenhower. One of the containers was flagged as overweight, so the agent split the booking into one heavy container and 39 other containers. The weight info for the new entry for 39 containers didn't automatically populate, so the agent typed in the cargo weight for all 39 boxes - as 2.5 tonnes. When including the weight of the empty container, this yielded a total loaded weight of about six tonnes for each container, and this number was recorded in the booking system. In actuality, the real total VGM reported by the shipper on the bill of lading was between 25-29 tonnes, nearly five times as heavy as what the agent put into the booking system. 

On February 2, 2024, these containers were loaded aboard President Eisenhower at the Port of LA's Fenix Marine Services terminal. The majority of the boxes were stowed in the upper tiers of bay 42 on the port and starboard side, a few bays forward of the deckhouse. They were not reweighed at the terminal, nor did the STS cranes at the pier have the ability to weigh in motion during loading. The Eisenhower's chief mate performed stability calculations and draft measurements with the (incorrect) loading information supplied, and passed all routine presail checks. Early the next day, Eisenhower got under way for Oakland. 

On the morning February 6, Eisenhower arrived off Oakland and shut down the main engine to drift while awaiting a berth. Wind and sea conditions gradually increased through the day, rising to 20-knot winds and 12-foot swells. The boxship was rolling up to 18 degrees in these conditions.

At about 2130 hours, the AB on duty saw "smoke" in the air on the port side. The third mate sent the AB forward to check on the cargo, and the AB found that a stack of containers was missing from the port side of bay 42. The smoke was suspended powder from collapsed containers: a total of 23 had gone over the side, and another 10 were damaged. The collapse caused an estimated $630,000 in cargo damage and $105,000 in damage to the vessel; luckily no one was hurt. 

Later analyses by the ship operator found that the improper loading configuration with the heavier-than-declared boxes would have produced excessive forces, large enough to break the lashings in bay 42. "The vessel would not have sailed with that configuration, had it been known," the company told NTSB. 

The booking agent has changed its computer system to automatically capture the VGM from the shipper's original booking, and it now requires individual verification of all VGMs under 10 tonnes. 
 

 

Fire Stricken Grimaldi Conro Towed to Port

Fire damage Grande Brasile arriving in Antwerp (YouTube)

Published Feb 24, 2025 12:49 PM by The Maritime Executive

 

Grimaldi’s Conro Grande Brasile (26,000 dwt) was towed to port on Sunday, February 23, after a fire broke out while the vessel was in the English Channel last week. The fire is believed to have been extinguished and contained to a small section of the RoRo sector of the vessel and the crew escaped uninjured.

The authorities granted permission for salvage tugs to bring the ship to port during daylight hours. Four tugs from Dutch company Multraship, numbers 32, 33, 35, and 36, moved the dead ship into Antwerp where it was tied up at the Euroterminal. Boskalis’ Smit unit was hired to oversee the salvage of the vessel.

Images online showed scorching from the fire on the vessel’s superstructure near the funnel. Blistering is visible on two or more decks but contained within an area of the ship. Grimaldi initially reported one fire on February 17 which its crew attempted to extinguish with the CO2 system. Lifeboats from the UK’s RNLI attended the vessel but were released only to be recalled later the same day when a second fire was discovered aboard the vessel. The Grimaldi crew abandoned ship into its lifeboat and were rescued by one of the tugs and transferred to the Ramsgate Lifeboat to be taken to shore.

 

 

Grimaldi told the European press there were indications of what had caused the fire but would not speculate until the investigation was completed. The vessel frequently transports used cars and containers and was bound for West Africa.

Two of the Multraship tugs reached the vessel on February 18 and working with Boskalis’ tug Kamara were conducting cooling operations. The French rescue vessel Abeille Normandie was also standing by monitoring the operation.

Salvage crews were expected to board the vessel now that it has returned to port to ensure the fire has been extinguished. Then inspectors will begin searching for the origins. 

Today, February 24, there are unconfirmed reports of yet another fire on a different Grimaldi vessel. Lloyd’s is reporting that fire occurred on the Grande Congo (47,600 dwt) as the vessel was transiting to Norfolk, Virginia. This Conro is now docked in Norfolk having arrived from Spain. 

The company has experienced several vessel fires in the past few years. In 2019, it had fires on two vessels that led to changes in the rules for handling hazardous cargo. Then in 2023, another of the company’s vessels in New Jersey when a fire started as cars were being loaded. Two local firefighters were killed after boarding the vessel. It burned for days damaging the RoRo section of the vessel.

Grimaldi has indicated it will be fully cooperating with the authorities in the investigation into the fire on the Grande Brasile.

 

New Stena Bulk Joint Venture to Expand Nigerian and West African Oil Trade

Stena Bulk will expand with a new JV for Nigeria and west Africa (Stena Bulk)

Published Feb 25, 2025 6:12 PM by The Maritime Executive

 

 

A new joint venture is seeking tankers as it plans to modernize and expand the regional oil trade from Nigeria and into West Africa. Stena Bulk reports it is forming the partnership with offshore operator Caverton Marine and the Nigerian National Petroleum Corporation (NNPC) Shipping.

It comes as the government of Nigeria is calling the country the Africa's largest economy and highlighting its efforts to expand on its position. They highlight the country's strategic location, growing population, and ambitious infrastructure developments which they said are creating new opportunities for shipping companies.

By establishing a world-class tanker operation, the partners said they aid to meet the immediate logistical needs while also contributing to Nigeria's long-term economic diversification and growth. Stena Bulk’s President & CEO Erik Hanell said it part of the company’s strategy to expand presence in key growth markets.

The new tanker operation will serve Nigeria and West Africa's regional and global crude oil, refined product and LNG shipping requirements. Additionally, the new company will cater to other oil producers and traders, offering the strategic advantage of a modern fleet, strong financial backing, and maritime pedigree and heritage.

“This strategic partnership marks a significant milestone in NNPC's commitment to modernizing Nigeria's maritime infrastructure,” said Panos Gliatis, Managing Director of NNPC Shipping.

The partners report they will explore options to create a modern and efficient fleet of tankers, comprising both new and existing tonnage depending on market factors and commercial opportunities in the region. The companies will evaluate opportunities for both vessel acquisitions and long-term charter arrangements.

 

Panama Canal to Build New Water Resource to Protect Against Future Droughts

Hoegh Aurora set a record for the largest vehicle carrier to transit the Panama Canal (Panama Canal Authority)

Published Feb 25, 2025 5:38 PM by The Maritime Executive

 

 

The Panama Canal Authority is pushing forward with a key project to expand its water resources for canal operations while also emphasizing the vital trade role of its operations. The authority is taking the necessary steps to prepare for the future ignoring the threats from Donald Trump.

Media reports indicate an uneasiness standstill after Panama hosted the visit by U.S. Secretary of State Marco Rubio. Panama took some public moves including serving official notice on China that it was withdrawing from the Belt and Road initiatives while also emphasizing the country’s sovereignty. 

The Panama Canal Board of Directors at the end of last week approved the next critical phase of the canal with the authorization to move forward on a new man-made lake to supply water for residents and the operations of the canal. It is a key component of the water management plan developed in Panama in responses to the 2023-2024 drought that severely restricted canal operations.

They report that the project will become one of the decade’s most significant public investments. The board authorized moving forward with the necessary resources for the construction of the lake in the Indio River Watershed. The project is expected to start by 2027 and take up to six years.

“This project is a key element in Panama’s comprehensive solution for the water challenge, significantly increasing the storage capacity of this vital resource,” the board said announcing its decision. “It represents a significant step towards canal sustainability, reliability, and competitiveness, for the benefit of all Panamanians and global trade.”

 

Hoegh Aurora on her recent transit (Panama Canal Authority)

 

They report the Water Projects Program was created to guarantee water supply for over 50 percent of the country’s population, nearby communities, and canal operations, as well as to foster other productive activities across the country. The resolution also includes funds allocated for compensation, resettlement, and support for families and property owners who may be affected by the project. 

The water project is designed to advert the next drought, which officials had said could come within four years without intervention. They are seeking to maintain the momentum that has returned to the operations.

The canal also highlighted a new record for the transit of the largest vehicle carrier. The new Hoegh Aurora (25,500 dwt) delivered in 2024 with a capacity for 9,100 vehicles made the transit on a trip from China, South Korea, and Japan before heading to Jamaica, Mexico, and the U.S. Gulf Coast. It surpassed the previous record which was set in 2016 by the Hoegh Target, which has a capacity of 8,500 vehicles.

The Canal Authority emphasizes the important trade role of the operations and the need to maintain fair administration. They are working to strengthen the operation to continue deal with the increasing size of vessels and the anticipated volume.