Friday, August 09, 2024

Investigation Underway into Ultra Galaxy Casualty off South Africa

Ultra Galaxy wreck South Africa — Bad weather broke the vessel and ripped off the deckhouse/accommodations as well as the cargo hatch covers (SAMSA)

While bad weather continues to hamper the salvage efforts of the broken bulker Ultra Galaxy, officials from the South African Maritime Safety Authority (SAMSA) report the investigation process into the cause of casualty is underway. Under maritime law, Panama as the flag state of the vessel is leading the investigation while South Africa because it was affected by the wreck is assisting in the efforts.

SAMSA reports that a team consisting of a surveyor and a technical expert from Panama is arriving in the country and will be meeting with SAMSA. This comes after the investigators from Panama flew to the Philippines for interviews with the crew of the Ultra Galaxy which have already been repatriated after they were rescued from the ship a month ago.

There are several working theories that SAMSA said will be part of the investigation while they also declined to speculate on the cause of the casualty. Officials however shared a few details based on their review of information and initial interviews with the crew. They were seeking to end some of the speculation in the South African media.

Speaking to the media, SAMSA Chief Operations Officer Sobantu Tilayi said there is “nothing to suggest it (Ultra Galaxy) had broken any laws.” Some of the speculation has centered on whether the cargo shifted before the storm and was later exasperated by the high seas as well as possible mistakes in navigation by the vessel before or during the storm.

Tilayi said the list seemed to indicate the cargo had shifted but the investigation would be looking into the cause of the cargo shifting. However, he said when the South African authorities received the distress call the storm was already underway that ultimately claimed the Ultra Galaxy. He said a review of the logs showed the crew tried to alter course before the casualty of the vessel which had been sailing eastbound toward Tanzania.

South African officials coordinated the rescue of the 18 Filipino crewmembers and conducted interviews before they left the country. Those interviews are being shared with the investigators from Panama.

The salvage team they said has been able to determine the location of the remaining oil aboard the Ultra Galaxy. However, they require a window of a week of calm weather to proceed with the operation which will include heating the oil and siphoning it from the tanks. A platform supply vessel continues to stand by with the necessary equipment for the oil removal process. In the meantime, the shore cleanup continues, but they did not say if the vessel continues to leak oil.

Representatives of the P&I Club are also on scene assisting in the salvage operation. They noted the focus currently is on the oil and environmental impact. A plan for the removal of the hulk will be determined in the second stage of the salvage operation.

Gasum and Equinor Collaborate on Bio-LNG Operations for OSV

Bio-LNG bunkering — Island Crusader operating under charter to Equinor is pioneering in the use of Bio-LNG (Gasum)

Gasum, the Nordic energy company owned by the State of Finland, is collaborating with Equinor on a series of liquefied biomethane (bio-LNG) bunkering operations in the Port of Dusavik, in Stavanger, Norway. The latest bunker, which was carried out in mid-July, expands on the earlier tests in 2021 which made the OSV Island Crusader the first offshore supply vessel operating on the Norwegian shelf running on biofuel.

The first bio-LNG delivery was successfully carried out in mid-July. Gasum reports it will continue to supply the Island Crusader with two to three truckloads of bio-LNG approximately every other week. Each truckload contains about 22 tons of bio-LNG.

Built in 2012 by Vard, the Island Crusader (4,750 dwt) is a pioneer using an innovative LNG hybrid battery technology. The vessel is fueled by pure LNG but also features an 896 kWh battery pack, which further improves its environmental performance. Owned by Island Offshore, it is operating under charter to Equinor to support its offshore operations.

Engine manufacturer Bergen Engines initially conducted tests on land to certify the engines for a switch to biofuel. A pilot project in October 2021 then confirmed that biogas can be used on LNG engines without any modifications.

Gasum highlights that biogas can be used in all the same applications as natural gas, including as a road and maritime transport fuel and as energy for industry. The biogas is a fully renewable and environmentally friendly fuel with life-cycle greenhouse gas emissions that are, on average, 90 percent lower when compared with fossil fuel use. It is produced from waste feedstocks such as biowaste, sewage sludge, manure, and other industrial and agricultural side streams and the by-product of biogas production is also high in nutrient content that can be used in industry and agriculture.

The operation is a pioneering step said Gasum as it works to procure more renewable gas to satisfy the increasing demand for sustainable energy. Gasum’s goal is to offer 7 TWh of renewable gas to its customers yearly by 2027, including biomethane and e-methane. A large portion of this volume relies on establishing long-term partnerships with certified biogas producers throughout Europe. Achieving this goal would mean a combined carbon dioxide reduction of 1.8 million tons per year for Gasum’s customers.

GFI LNG and Pilot LNG Form Joint Venture to Develop Salina Cruz LNG

[By: Pilot LNG LLC]

GFI LNG LP (GFI), a diversified energy solutions company, and Pilot LNG LLC (Pilot), a Houston-based clean energy infrastructure developer, today announced that they have formed a partnership to develop, construct, and operate a small-scale LNG terminal in Salina Cruz, Mexico.

At full build-out, the facility is anticipated to produce 600,000 gallons of liquified natural gas (LNG) per day, or roughly 0.34 million metric tonnes per annum (MTPA). The partners anticipate operations to commence in mid-to-late 2027.

With speed-to-market in mind, the project is being designed to include modular, land-based liquefaction equipment and an optimized storage solution. The project will deploy a floating storage unit (FSU) with an estimated capacity ranging from 50,000 – 140,000 m3 to be moored inside the newly expanded breakwater in the Port of Salina Cruz.

Salina Cruz will use domestic Mexican gas supply from the Veracruz gulf region to access new high-value markets along the Pacific Coast. These premium markets include: LNG marine fuel deliveries at the Pacific entry of the Panama Canal and into Southern California (the Ports of Long Beach & Los Angeles), sales into Central American power markets, and trucked volumes in the local region of southwestern Mexico. Salina Cruz customers can expect to benefit from competitively priced, Henry Hub-linked LNG sales.

GFI, a Houston-based energy company, has over 20 years of continuous commodity sales of natural gas, refined products, and electricity into Mexico.

“The infrastructure planned in Salina Cruz will not only provide LNG to growing markets seeking cleaner fuel, but will also bring millions in direct community investment to the region” said Gomez. “We are pleased to be adding the LNG and marine expertise of Pilot to the development team. Thanks to our new partnership with Pilot, we look forward to bringing this facility to Salina Cruz.”

Led by LNG veterans with extensive experience in project development, Pilot aims to deliver LNG to new and existing markets across the world and develop a global portfolio of projects. “With long personal ties to the region, the GFI team is dedicated to helping bring infrastructure development to Salina Cruz and brings a critically necessary understanding and appreciation for the local community and government,” said Jonathan Cook, CEO of Pilot. “We are pleased to be working with GFI to help progress this project.”

GFI and Pilot plan to commence front-end engineering and design development for the project this quarter. The partners anticipate a 12-18 month development and permitting timeline and anticipate announcing a Final Investment Decision (FID) in the second half of 2025.

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

Maersk Cautiously Optimistic as It Plans Fleet Renewal Including Bio-LNG

Maersk containership — Maersk's newest ship passing the older fleet as the company plans to accelerate its fleet renewal (Maersk)

Maersk provided investors with additional details on its outlook while reporting a better-than-expected second quarter and sounding optimistic while emphasizing continued market uncertainty. After starting 2024 with a cautious note, the second largest container shipper reports higher than expected volumes and rates led it to raise its forecast to an operating profit of between $3 and $5 billion for the year. It made $1.1 billion in the first half of 2024.

Making the rounds through the major media outlets, CEO Vincent Clerc said the company had been surprised by the resilience of the container market moving from the pandemic to the decline in rates and volume in 2023, and now the disruptions in the Red Sea. He said the second quarter for Maersk was fueled by strong market demand and volume growth across all its segments and stabilization as the market absorbs the ongoing disruptions in the Red Sea region.

Maersk said profitability was building back in its ocean shipping operations largely driven by higher freight rates which helped them to achieve a 5.6 percent margin despite higher operating costs. The added distances of sailing around Africa drove fuel consumption and costs to an all-time high. Shippers Maersk also believes have accelerated their business fearing a range of issues from further disruptions to port congestion due to the impact on schedules. They also pointed to the potential for a trade war between the U.S. and China as the U.S. moves to raise tariffs and the further impact of the U.S. presidential election.

Moving into the third quarter, Clerc said they would benefit from the full effect of the higher rates. With a significant contract business, he said the full rate impact was yet to come for Maersk.

“Our results this quarter confirm that performance in all our businesses is trending in the right direction. Market demand has been strong, and as we have all seen, the situation in the Red Sea remains entrenched, which leads to continued pressure on global supply chains. These conditions are now expected to continue for the remainder of the year,” said Clerc.

Speak on CNBC he said the company did not see signs of a potential U.S. recession, noting the strong growth in Chinese exports. He predicted that the global container market will grow between 4 and 6 percent up from their earlier force of 2.5 to 4.5 percent growth. However, Maersk is also uncertain if there will be a further rush to move Christmas merchandise or if shippers have already built inventories for the year-end sales. Clerc said he believes freight rates have peaked with the easing of congestion and new capacity into the segment.

Maersk, unlike many other large carriers, has been slow on new orders with Alphaliner highlighting that five of the top 10 carriers now have larger orderbooks. CMA CGM is forecast by many to be set to surpass Maersk moving into the second position behind MSC Mediterranean Shipping. Maersk has also avoided the rush to the 24,000-plus TEU mega-ships.

Clerc said today however the company is set to accelerate a fleet renewal program. Maersk told investors it is increasing its capital forecast by $1 billion annually to $10 to $11 billion due to its continuous fleet renewal program.

While it is not finalized, the company said it is close to orders for 50 to 60 new containerships. Clerc however emphasized it is a fleet renewal saying the target is to execute with the existing fleet size of 4.1 to 4.3 million TEU. The company plans a renewal pace of 160,000 TEU annually and said it would have orders for 800,000 TEU this year for delivery in 2026 to 2030. They expect to build owned vessels with 300,000 TEU capacity and charter the additional 500,000 TEU of capacity.

The company has been adamant that its strategy for new orders was to only order new, owned vessels that come with a green fuel option. Clerc however admitted today that multiple fuel technologies are likely as the sector moves forward with Maersk saying “The exact split of propulsion technologies will be determined considering the future regulatory framework and green fuel supply.”

Maersk would not rule out orders for LNG-fueled ships and told investors it has commenced the work of securing offtake agreements for liquified bio-methane (bio-LNG). The company said its goal with the renewal program is to increase to 25 percent of its fleet equipped with dual-fuel engines.

Maersk has also raised its 2024 estimate saying it should provide at least $2 billion in free cash flow from its operations. While Clerc confirmed they had withdrawn from the bidding for DB Schenker, he said they continue to actively explore acquisitions for the land side of the business. The strategy remains a diversified logistics company balancing the ocean business with growth in the logistics sectors.

Environmentalist Groups Call for Return of “Toxic Cargo” on Two Boxships

Environmentalists contend over 800 tonnes of toxic waste is in containers aboard two containerships and should be returned to the shipper (file photo)

A group of NGOs focusing on the environment issued a call for two underway boxships to be intercepted and forced to return containers loaded with toxic materials to their shipper. The groups allege that the containers currently aboard two vessels chartered to Maersk have more than 800 metric tons of hazardous waste. Maersk responds that while the claims are based on false information, it will share the concerns about the cargo with the authorities.

The issue is being raised by the U.S.-based Basel Action Network along with groundWork (Friends of the Earth South Africa) and Ecological Alert and Recovery – Thailand (EARTH) and alleges that 160 suspect containers were loaded between the two ships. They contend the containers are loaded with toxic steel furnace dust collected from pollution control filters.

The groups highlight that the transportation of hazardous wastes is highly regulated under the UN’s Basel Convention. The international treaty requires approval of the exporting country, in this case Albania, as well as notification to in-transit countries, and the scheduled importing country. The groups contend that proper paperwork was not filed in Albania or the destination which they contend is Thailand as well as South Africa where the two containerships they said will stop for bunkering and supplies.

“If confirmed to be hazardous waste, by the provisions of the Basel Convention, the United Nations Treaty governing the trade in hazardous and other wastes, the containers could be seized and repatriated back to Albania,” the groups wrote in their joint statement.

One group of containers that they are targeting are loaded aboard the Maersk Campton (15,400 TEU), a 175,000 dwt vessel owned and managed by Zodiac Maritime and under charter to Maersk. The ship is registered in the UK.

The groups say the ship has 100 containers with 327 tonnes of material that they believe is hazardous waste. The ship’s AIS currently shows as “out of range” while the groups said the vessel turned off its AIS and is overdue for a scheduled stop in Cape Town. The last AIS signal however shows it is due on August 11 in South Africa. The groups further contend the boxes are bound for Thailand although the Maersk tracking system shows the vessel is bound for Singapore.

"We demand that this renegade ship and the next one, be intercepted, the containers analyzed here to ensure no other Southern country or ocean be at risk of the dumping of this toxic waste,” said Musa Chamane, Waste Campaigner for groundWork, (Friends of the Earth South Africa). “If they are found to contain toxic waste, they must be returned directly to the sender at their own cost and never be allowed to remain in Africa or dumped in Thailand."

The second targeted vessel is a sister ship also under charter from Zodiac to Maersk, the Maersk Candor. It is currently rounding South Africa according to its AIS signal. It also shows a destination of Singapore. The groups allege it has 60 containers that should be inspected for toxic material.

The groups point out that a similar shipment sent earlier this year to China was stopped after Chinese authorities found that the shipment contained more than eight percent toxic lead. They are calling on South Africa to stop the two current shipments if the vessels make calls in the country’s port so that the containers can be halted and returned to Albania at the cost of the shipper.

Maersk says that the claims are based on false information pointing out that all goods from shippers loaded on vessels are cleared by customs. In these cases, Maersk also notes that the vessels did not call in Albania and are not going to Thailand. However, it says it will cooperate as needed with the local authorities.

Houthis Attack Greek-Owned Tanker With Small Craft and RPG

Houthi attack boat — File image courtesy Houthi Military Media

The Royal Navy's UK Maritime Trade Operations (UKMTO) has reported a new and unique Houthi attack at a position off Mokha, Yemen. The terrorist organization has historically used UAVs, USVs and ballistic missiles to target shipping, but this attempt involved manned small craft.

While transiting at a position about 45 nm to the south of Mokha - in the middle of the Strait of Bab el-Mandeb - the master of the unnamed vessel reported that the ship was attacked by two small boats, white and black in color and each manned by four people. The assailants were wearing white and yellow raincoats. When they approached, they fired a single RPG, which exploded near the vessel. The crew and the ship were unharmed and are under way to their next destination.

Maritime security consultancy Vanguard has identified the vessel as the Greek-owned Suezmax tanker Delta Blue. According to Vanguard, the Delta Blue does not appear to have any connections to the U.S., UK or Israel, the primary targets of Houthi aggression.

Maritime security authorities are investigating the attack. UKMTO advises any ships that still choose to pass through the Red Sea to be alert for suspicious activity.

Houthis Claim Attacks on US Warships as CENTCOM Dismisses “Disinformation"

Houthis claimed targeting the USS Cole which was famously bombed in 2000 while in Yemen (US Navy 2020

After being largely silent for nearly two weeks, the Houthis are claiming a rash of new attacks, including targeting two U.S. warships crossing the Red Sea. U.S. officials at the same time cited the group’s use of disinformation campaigns saying these efforts have dated back a decade.

“The Houthis have been aggressive when it comes to bending their narrative to fit their needs,” said Vice Adm. George Wikoff, according to USNI News. Speaking at a Naval Institute and Center for Strategic and International Studies, USNI reports the commander of U.S. Naval Forces Central Command, U.S. 5th Fleet and Combined Maritime Forces, cited a disinformation campaign used as part of the Houthis’ tactics in the Red Sea and “seeding tremendous unrest” in the region.

Houthi spokesperson Yahya Saree took to X (Twitter) today to announce three new attacks. He said “The targeting of the two American destroyers took place while they were …. heading towards the northern Red Sea …. The two destroyers have completely failed to confront the missiles and drones, and the success of the drones and missiles to achieve their goals.”

The vessels cited include the destroyer USS Cole, which the report said was in the Gulf of Aden and targeted with drones. Additionally, the report claims the destroyer USS Laboon was targeted with ballistic missiles.

U.S. Central Command in its daily update for August 7, said forces destroyed two Houthi uncrewed aerial vehicles, one Houthi ground control station, and three Houthi anti-ship cruise missiles in Houthi-controlled areas of Yemen in the past 24 hours. Yesterday, it said one Houthi uncrewed aerial vehicle and two Iranian-backed Houthi anti-ship ballistic missiles were destroyed over the Red Sea, while the day before the report said three uncrewed aerial systems over the Gulf of Aden and one in a Houthi-controlled area of Yemen were destroyed while in the Red Sea they destroyed one uncrewed surface vessel, one uncrewed aerial vehicle, and one anti-ship ballistic missile. The U.S. Command did not report any direct threats to a warship.

Separately, today’s “report” from the Houthi also claimed to have targeted the Liberia-flagged, containership Contship Ono (13,800 dwt). The vessel’s AIS shows it was heading to Jeddah, Saudi Arabia from Malaysia.

Reuters reports it received a statement from the Athens-based Contships Management saying, “The vessel and its crew are safe and there has been no incident affecting its operations." The Houthis said “The hit was accurate,” saying the ship was targeted due to the shipping company calling in Israeli ports.

Neither the UK Maritime Trade Operations nor any of the private security firms reported an attack on the Contship Ono. However, reports confirmed the Houthi claim of attacking the Greek-owned boxship Groton on August 3. The Houthis said the vessel was hit while transiting the Gulf of Aden, with tracking data showing the vessel diverted to Djibouti.

The Houthis latest claims come as the region remains tense as Iran vows new attacks on Israel and the West after the death of a Hezbollah commander in Iran. The U.S. Department of Defense confirmed it has ordered the deployment of extra cruisers and destroyers with a ballistic-missile defense capability into the region, while the supercarrier USS Abraham Lincoln is also being redeployed from the Western Pacific to the 5th Fleet area of operations. The Lincoln it reported would relieve USS Theodore Roosevelt.

NGO Predicts "Cruisezillas" Calling for Ticket Tax to Fund Green Fuels

New generations of larger cruise ships dominating the Miami skyline in 2024 (PortMiami)

The activist NGO Transport & Environment (T&E) is calling for a tax on the cruise industry to help fund the transition to zero carbon fuels and ensure the industry contributes its share to the ongoing efforts. The group cites the rapid growth of the cruise industry while forecasting the introduction of “cruisezilla” 345,000 gross ton cruise ship carrying nearly 11,000 passengers by 2050.

The NGO released a report highlighting that with cruise vacations increasingly becoming a mainstream vacation option, particularly in developed countries, the number and size of cruise ships have risen dramatically. The result, the report asserts is an exponential increase in cruise ships’ carbon emissions.

The report dubbed “Cruisezillas”: How much bigger can cruise ships get?, highlights that cruise ships are currently exempt from fuel duties, corporate taxes, and most of the consumer taxes that other modes of transport pay. As such, the NGO calls for imposing a €50 ($55) tax on a typical cruise ticket calculating that it would generate €1.6 billion ($1.7 billion) globally. They point out that €410 million ($450 million) would be raised in Europe which could be applied to the efforts to expand the supply of green fuels. The amounts could grow to $3.3 billion with a €100 per ticket fee or $6.8 billion with €200 per ticket fee.

T&E asserts that the rapid growth in the cruise industry has contributed to a dramatic increase in CO2 emissions. “A combination of more and bigger cruise ships,” T&E contends, “means that CO2 emissions from cruise ships in Europe were nearly 20 percent higher in 2022 than they were in 2019.

The report calculates that in Europe, CO2 emissions from cruise ships grew by 17 percent despite the COVID-19 pandemic, and methane emissions surged by 500 percent between 2019 and 2022. Other pollutants such as sulfur oxides, nitrogen oxides, and fine particles increased by nine percent, 18 percent, and 25 percent respectively around European ports during the period.

Cruise Lines International Association (CLIA), the trade group for the cruise industry, strongly contests those figures. In a statement, they cited EU data that they said shows “cruise lines have reduced emissions by 16 percent on average per ship over the past five years.”

“Today’s cruisezillas make the Titanic look like a small fishing boat,” said Inesa Ulichina, sustainable shipping officer at T&E. “How much bigger can these giants get? The cruise business is the fastest growing tourism sector and its emissions are quickly getting out of control.”

T&E highlights the transformation of the industry using data from Clarkson contending that the number of ships rose from 21 in 1970 to 515 today. They also assert that the average size of the ten largest cruise ships is double what it was 24 years ago, averaging 205,000 gross tons. The group says nearly 36 million travelers are projected to take a cruise voyage this year.

Illustrating the growth, T&E points to Royal Caribbean International’s Icon of the Seas, which was introduced at the start of the year as the world’s biggest cruise ship. With a capacity of 7,600 passengers, the Icon of the Seas they said not only dwarfs the 1999-built Voyager of the Sea (then the largest cruise ship in the world) that has a capacity of 3,938 passengers, and they compared it to the Titanic (46,000 gross tons) which had a capacity of 2,500 passengers. Going by the current trend, T&E projects the trend will continue to “cruisezillas” in the range of 345,000 gross tons and nearly 11,000 passengers by 2050.

The trade group CLIA says it has concerns over “multiple claims” in the report. For example, they report that the majority (60 percent) of cruise ships sailing today and scheduled for service in the next decade are small-to-midsize and more energy efficient. CLIA also points to the investments being made by the industry to increase the use of sustainable fuels and new technologies.

T&E acknowledges that many cruise operators are switching to LNG as an alternative to traditional shipping fuels like heavy fuel oil. They recognize that LNG-powered ships make up 38 percent of today’s global cruise ship orders, but raise the concerns of methane slip.

Cruise ships, T&E highlights, are good candidates for green fuels despite the limited availability and challenges in bunkering for the new fuels. The NGO highlights the concerns over supply and bunkering would be less for cruise ships that sail on the same routes with clear schedules versus commercial shipping.

The report concludes by saying converting cruise ships to green fuels would also be financially beneficial for the lines. T&E points to the increasing scale of financial penalties associated with fossil fuel under the Fuel EU Maritime scheme and the financial benefits for cruise ships to lead in the green fuel transition.

Port of Hueneme Partners to Introduce Stack Caps to Reduce Emissions

stack emissions capture — STAX system alongside a containership capturing emissions for filtering (STAX/Port of Hueneme)

California’s Port of Hueneme, which is used by commercial shippers for cargo including fresh produce and vehicles as well as the military, is launching a new partnership to reduce at-berth emissions through the use of a capture and control technology. The port is working with STAX Engineering presenting a cost-effective option for ships to meet California’s enhanced at-berth emission regulations while also helping the port manage after its shoreside power system was damaged by flooding in 2023.

The application is the next generation of STAX’s emissions capture and control system which consists of mobile floating barges that can place filters on ocean-going vessel stacks. The system filters the emissions while the vessel is on dock.

The Port of Hueneme’s shoreside power system used for cold ironing was damaged last December during major storms that hit the California coast. The Port of Hueneme flooded resulting in damage to the existing shore power systems.

“We must continue to move forward towards our goal of becoming a zero emissions Port. The storm damage has created an opportunity to continue showing how resilient our port can really be,” said Celina Zacarias, Board President for the Oxnard Harbor District which oversees operations at the Port of Hueneme.

The system works by positioning a barge alongside the vessel which positions a cap to envelope a vessel’s smokestack and capture the particulate matter and oxides of nitrogen (NOx) emissions at the source. STAX says its patented technology removes 99 percent of particulate matter and 95 percent of oxides of nitrogen (NOx) before being released as purified gas.

“One of the most important aspects of STAX technology is that it breaks fleet operator dependence on the local grid,” said STAX Engineering CEO, Mike Walker. “Shore power isn’t always available due to factors like major storms, limited outlet access, and vessel incompatibility. Our solution addresses these challenges, providing an easy, cost-effective, and environmentally friendly solution that solves the at-berth regulation requirements for ports like the Port of Hueneme.”

In addition to providing an option for the ocean-going vessels, the barge will operate powered by renewable diesel. It will meet the California Air Resources Board (CARB) requirements for reduced emissions from harbor craft.

The system requires no modifications to the vessel’s stack, It permits vessels to continue operations at berth, including running diesel generators, without disrupting operations. It also does not require shore power.

Versions of STAX’s system have already been deployed for individual shipping companies berthing both in the port of Los Angeles and Long Beach. To date, STAX reports it has treated 83 vessels at-berth for a total of 4,000 tours and controlled 31 tons of pollutants. In March 2024, Japan’s NYK group reported that it would be deploying STAX’s system for its car carriers while they were docked in California.

CARB established emission regulations for ocean-going vessels in 2007, and in 2014, mandated that ocean-going containerships, passenger ships, and other vessels calling at California ports were required to reduce at berth emissions of nitrogen oxides (NOx), reactive gases (ROG), carbon dioxide, particulate matter (PM), and diesel particulate matter (DPM). The rules are being expanded in 2025 to more classes of vessels including car carriers and are being phased in between 2025 and 2027 for tankers. Harbor crafts are also required to reduce their emissions.

LNG Terminal Planned for Mexico to Serve Ships at Panama Canal

With the number of ships using LNG continuing to grow and spurring demand, two U.S.-based companies partnered to launch a new small-scale LNG terminal in Salina Cruz, Mexico. According to the partners, GFI LNG and Pilot LNG, the project is designed with a focus on speed to market and will be strategically located to serve a key shipping market.

The Salina Cruz LNG JV will develop, construct, and operate the LNG bunkering and transshipment terminal which they anticipate will start operations in mid-to-late 2027. GFI and Pilot plan to commence front-end engineering and design development for the project this quarter. The partners anticipate a 12-to-18-month development and permitting timeline and anticipate announcing a Final Investment Decision (FID) in the second half of 2025. The team anticipates an approximate 36-month permitting and construction timeline.

The project design has been optimized to include modular, land-based liquefaction trains and straight-forward mooring and topsides modifications on the newly expanded breakwater in the Port of Salina Cruz. At full build-out, the facility is anticipated to produce 600,000 gallons of liquified natural gas(LNG) per day, or roughly 0.34 million metric tonnes per annum (MTPA).

With speed-to-market as a goal, they have decided to use an FSU ranging in capacity of 50,000 - 140,000 cbm for LNG storage. The plant will use domestic Mexican gas supplied for the Veracruz gulf region and has the advantage of identified pipeline capacity and gas supply while using a proven liquefaction technology.

GFI, a Houston-based company, has more than 20 years of experience in Mexico. Pilot LNG, also based in Houston, is a clean energy infrastructure developer, also has projects in development including the Galveston LNG Bunker Port, a small-scale LNG bunker terminal, and the Cork LNG FSRU import terminal which will be located in the Whitegate area at the Port of Cork, Ireland.

The Mexican site the company emphasized will provide LNG marine fuel deliveries at the Pacific entrance to the Panama Canal and also deliver LNG to the ports of Los Angeles and Long Beach in Southern California. In addition to the marine market, they look to serve the Central American power markets and trucked volumes into southwestern Mexico.

Vice Commandant: US Coast Guard's Funding Shortage is Hitting Readiness

USCGC Healy departs Seattle for an Arctic mission, June 2024. The voyage had to be cut short after an electrical fire (USCG)

The Coast Guard's limited budget and its manning shortfalls are having an effect on capacity, the service's second-in-command said in an interview at a Washington think tank on Wednesday.

In an event at the Brookings Institution, Vice Commandant Adm. Kevin Lunday told attendees that the service is feeling the pinch from a 3,000-person enlisted servicemember shortage, the product of COVID-era challenges and years-long difficulties with recruitment. "We had to lay up three of our major cutters because we don't have enough enlisted personnel to crew them," Lunday said.

Budget limitations are adding to operational difficulties, he said. The Coast Guard's annual budget is $12.3 billion, less than the cost of one Ford-class carrier. $1.6 billion of that is available for capital investments - like shipbuilding, or shoreside construction and renovation.

"We need a $3 billion [procurement and capital investment] budget just to be able to maintain track with our current acquisitions," he said.

Aging platforms and funding shortages also combine to reduce readiness. "We're struggling to sustain the readiness of our current fleet of ships, of boats, of aircraft and of shore infrastructure," Lunday said. "If you want to get underway on a major Coast Guard cutter today, you have to do what we call a controlled parts exchange with other ships at the pier. That's a fancy term for cannibalization. We'll steal parts or borrow actually from the other ships just to get another ship underway."

He cautioned that this practice - while cost-efficient in the short term - has negative long-term effects for the fleet. "You can do that for short amounts of time but when you do it over a number of years, you're eating your own readiness, and that's what we're seeing."

Just last month, he said, the icebreaker USCGC Healy had a previously undisclosed electrical fire in an engineering space, forcing her to end an Arctic science mission early and return from the Northwest Passage to Seattle for repairs. She is currently under way southbound in the Gulf of Alaska, according to AIS data provided by Pole Star Global.

"Much of the mission systems aboard [Healy] are antiquated, and for some there aren't even parts," Lunday said. "And that's a concern, because if Healy can't resume her patrol, the U.S. will have no surface presence in the Arctic this summer."

Maintenance challenges and obsolete parts are just as much an issue for the 48-year-old USCGC Polar Star, the service's only other icebreaker. "I think the Navy would operate it as a museum," he said. "It's capable, but it's old."

Lunday emphasized that to perform high-latitude missions, the Coast Guard needs at least 8-9 icebreakers, including three heavy icebreakers. The heavy icebreaker program - the Polar Security Cutter - was contracted to Bollinger, and the first hull should enter the long-delayed construction phase in December, he said. In the meantime, the service has the funding to buy Edison Chouest's Aiviq, the only commercially-available U.S.-flag icebreaker - and that process is under way.

Strict Regulations Create an Opportunity for Innovative Hull Coatings

Geopolitical and regulatory changes are pressing the maritime industry to address its effects on the environment and respond promptly and effectively to the energy transition. In 2023, the International Maritime Organisation (IMO) published its Greenhouse Gas Strategy at the Marine Environment Protection Committee (MEPC 80), creating a common ambition to reach net zero by 2050.

This revised ambition will have a significant impact on the maritime sector. The IMO has established checkpoints for its ambitions. Against a 2008 baseline, it wants to see reductions in the total annual GHG emissions from international shipping of at least 20%, striving for 30%, by 2030, and at least a 70% reduction by 2040, striving for 80%. The targets also stipulate the need for an uptake of near-zero GHG emission technologies, fuels and energy sources, which must represent at least 5%, striving for 10%, of the energy used by international shipping, by 2030.

This was combined with an IMO mandate that requires all ships to calculate their Energy Efficiency Existing Ship Index (EEXI), while also establishing their annual operational carbon intensity indicator (CII). These frameworks were then closely followed by the introduction of maritime transport into the EU’s Emissions Trading System (ETS) in January 2024. These newly introduced frameworks all combine to create a palpable sense of urgency surrounding the means and method by which the shipping industry will achieve its ambitious decarbonization targets.

The continued demand for improved sustainability to meet the industry’s decarbonization targets has become increasingly complex. It is widely regarded that a future net-zero shipping industry is predicated on the establishment of large-scale availability of green fuels as a replacement for traditional fossil fuel sources. However, the current availability of e-fuels and biofuels and the significant investment required to scale alternative fuels represent a high barrier to entry for the industry.

Improving operational efficiencies to reduce emissions and ensure compliance with regulation is critical while it can also help to mitigate the significant cost implications of adopting green fuels. Although the future of these alternative fuels does appear to be progressing, reducing emissions quickly and effectively - with proven and accessible technology - is essential to achieving the IMO’s short-term decarbonization targets.

Anti-fouling coatings are some of the most widely available solutions to improve operational performance while lowering vessel’s CO2 emissions. Increased drag from biofouling on the underwater hull of a vessel requires greater fuel use for a vessel during its voyage, increasing fuel costs and worsening GHG emissions.

As our customers adapt to even more stringent global and regional regulations, so to must the solutions that are developed to support them. The need for innovation has led our R&D team to develop ground-breaking solutions, such as our patented HydroSmoothXT(TM) water trapping technology, which incorporates a crosslinked, three-dimensional hydrophilic polymer. The coating effectively traps a microscopic layer of water on its surface as the ship travels through the water. This smooths the water around the hull, creating a slippery surface that reduces hull-to-water friction. As a result, fuel costs and emissions are reduced by up to 8% compared to other silyl-acrylate SPC systems manufactured without hydrogel.

Our Aquaterras product line broke new ground as the world’s first coating solution to provide industry-leading antifouling protection while remaining completely biocide-free. It naturally repels any biological adhesion onto its surface, while the constant exposure of its active micro-domain structure creates a continuous self-polishing performance. This combination creates a unique reaction that continually smooths the hull’s surface as it travels. This creates the dual benefit of lowering emissions by up to 14.7%, thanks to an average speed loss of 1% over a 60-month period (compared to the market average speed loss of 5.9% over a similar time period, per MARINTEK research data).

The shipping industry currently faces a myriad of competing challenges. However, these challenges also represent significant opportunities to effect positive change, both within our industry and on a global scale. As the industry grapples with implementing new and sophisticated technologies that will support its decarbonization ambition, there has never been a more important time to effect immediate change by bringing genuinely accessible solutions to market that deliver proven, real-world results.

Gladys Goh is President of Nippon Paint Marine.

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

New Research Gives Crews Insight Into Underwater Noise in Real Time

Vibration in the hull directly above the propeller (red, above) is strongly correlated with underwater nose, and this was the study's area of focus (Schottel) — Vibration in the hull directly above the propeller (red box, above) is strongly correlated with underwater nose, and this was the study's area of focus (Schottel)

German propulsion company Schottel has completed a research project for Transport Canada and BC Ferries to investigate solutions for underwater noise. Ship noise is a major issue in the Salish Sea because of its effects on the region's endangered orca population. The project developed a real-time onboard reporting system for underwater noise levels that the operator can use to monitor their impact on the environment.

The Strait of Georgia has environmental protection zones that require ships to reduce speed or navigate around on a longer route. However, Schottel found that reducing speed does not always reduce noise level. To find out what causes noise with precision, Schottel - through the government-funded Quiet Vessel Initiative - developed a noise monitoring system using hydrophone recording, hull vibration measurement and machine learning.

The research drew on real-life operations aboard BC Ferries' Coastal-class double-ended ferries. Schottel engineers calculated the correlation between hull vibration (measured just above the propeller) and emitted noise level on these vessels, and they came up with an algorithm for predicting underwater radiated noise while the ferry is under way. Based on propeller speed, pitch, vessel speed and other factors, the algorithm can calculate what the approximate decibel level would be near the ship.

After creating the algorithm, Schottel fabricated a new propeller to a design that is optimized to reduce noise. This was installed and tested in operation, and it showed an average reduction in noise of five decibels. This suggests that the algorithm can be used in the propeller design phase to help select a shape that will produce less noise, according to Schottel.

The study also had a crew-engagement goal. The real-time reporting system that was developed for the research will allow operators to monitor vessel noise level, perform long-term data analysis to spot trends, and act to reduce noise where possible.

"With these new analysis and prediction capabilities, it will be possible to significantly improve propulsion systems with respect to [underwater radiated noise], which will greatly benefit efforts to preserve marine life," said Schottel in a statement.

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