WWIII

Malaysia Expands Oil and Gas Drilling in Disputed South China Sea

By Tsvetana Paraskova - Oct 02, 2024

Despite Chinese pressure, Malaysia has stepped up oil and gas exploration activities in the disputed South China Sea, even as the China Coast Guard has constantly pressured Malaysian oil and gas operations this year, a new report by Washington-based Asia Maritime Transparency Initiative showed.

The long-running dispute in the South China Sea involves territorial claims by China as well as Vietnam, the Philippines, Taiwan, Brunei, and Malaysia. China has territorial claims to about 90% of the South China Sea, which has put it at odds with its neighbors.

Territorial disputes in the South China Sea erupted after Beijing laid a sweeping claim to sovereignty over the sea—home to an estimated 11 billion barrels of untapped oil. Disputes over the South China Sea date back to the 1970s when countries began to claim various zones and islands in the sea, such as the Spratly Islands, which possess rich natural resources and fishing areas. 

Automatic Identification System data shows that the China Coast Guard (CCG) has operated in Malaysian-claimed waters “like clockwork” so far this year, the report found. Asia Maritime Transparency Initiative (AMTI) found that between January 1 and September 30 nine different CCG vessels that spent time patrolling in Malaysia’s exclusive economic zone (EEZ) and continental shelf.

China’s ships on patrol in Malaysia’s EEZ spent most of their time near Luconia Shoals, a group of mostly submerged reefs 80 nautical miles northwest of Sarawak, AMTI said.

“Despite the CCG’s efforts, Malaysia has not only continued its existing oil and gas production but also expanded exploratory activity,” the report reads.

China’s continuous presence in Malaysia’s zone is a fraction of the number of ships it has deployed farther north in the Spratly Islands to monitor and contest Philippine activities in disputed waters, according to AMTI.

“However, with Malaysia’s expanding drilling and a potential reduction in China-Philippine tensions, Beijing could ratchet up the pressure on Malaysian hydrocarbon production,” the think tank said.

By Tsvetana Paraskova for Oilprice.com

Chinese Missile Boats Use Laser to Harass Philippine Patrol Plane

A PLA Navy Type 22 missile boat shadows a Philippine fishery vessel near Half Moon Shoal (BFAR)

Published Oct 1, 2024 4:16 PM by The Maritime Executive

 

 

A Chinese PLA Navy missile boat repeatedly used a high-intensity laser to harass a Philippine patrol plane last week, according to Manila's Bureau of Fisheries and Aquatic Resources (BFAR). Laser illumination can impair or damage pilots' eyesight, potentially putting the aircraft at risk, and it is illegal in many nations. 

On Friday, a BFAR patrol plane was operating in the Philippine exclusive economic zone near Half Moon Shoal, about 60 nautical miles off the coast of Palawan. It was accompanying two BFAR surface ships, the BRP Romapenet and the BRP Taradipit, which were under way on a mission to deliver supplies to fishermen at the reef. The shoal is closer to the Philippine home islands than most of the contested features in the Spratly archipelago, and has not historically seen high levels of Chinese military activity. 

According to Philippine outlet ABS-CBN (which had a reporter aboard BRP Romapenet), two Hubei-class Type 22 guided missile boats began following the BFAR fishery ships as they transited to Half Moon Shoal. As the PLA Navy vessels tailed the Philippine ships, they illuminated the BFAR patrol plane with a high-intensity laser. 

Chinese government vessels have previously used targeting lasers to harass the Philippine Coast Guard, but this event involved an aircraft and saw repeated use of the laser device. After the BFAR aircraft challenged the Chinese missile boats and asked them to stop, one of the boats used the laser twice more, at intervals of about five minutes. 

The pilots reported "high intensity white light" resulting in eye discomfort. Targeting lasers are typically in the green, red or infrared parts of the spectrum. 

The Type 22 is a high-speed missile boat operated by the PLA Navy, armed with eight antiship cruise missiles and capable of making 42 knots (reduced to 20 knots in higher sea states). It has not been seen before in the Philippine EEZ, security analyst Dr. Chester Cabalza told ABS CBN. "This is alarming because it was a missile ship that shadowed our civilian vessel. We all know that if a grey ship [naval vessel] was used, it was meant to intimidate us," he said. 

On Saturday, later in the mission, a Chinese military helicopter closely shadowed BRP Romapenet near Sabina Shoal, flying within 20 meters of the vessel. The BFAR vessels completed their transit and delivered food, fuel and medications to about 100 fishermen near Half Moon Shoal.  

 

IEA: Policy and Demand Uncertainty Slows Green Hydrogen Adoption

By Tsvetana Paraskova - Oct 02, 2024,

Uncertainty around demand and incentives coupled with cost pressures are weighing on the global adoption of low-carbon hydrogen despite an uptick in final investment decisions in the past year, the International Energy Agency (IEA) said in a new report on Wednesday.

World demand for hydrogen rose by 2.5% to 97 million tons in 2023, with demand concentrated in refining and chemicals, and mostly covered by hydrogen produced from unabated fossil fuels, the IEA said in its annual Global Hydrogen Review 2024.

“As in previous years, low-emissions hydrogen played only a marginal role, with production of less than 1 Mt in 2023,” the agency said.

The report found that the number of low-emission hydrogen projects that have reached a final investment decision (FID) is growing. Announced production that has taken FID doubled compared with last year to reach 3.4 million tons per annum (Mtpa). The split is roughly even between electrolysis, 1.9 Mtpa, and fossil fuels with carbon capture, utilization, and storage (CCUS)—1.5 Mtpa.

In green hydrogen, the total electrolyzer capacity that has reached a final investment decision now stands at 20 gigawatts (GW) globally.

If all announced projects are realized worldwide, total production could reach almost 50 million tons a year by the end of this decade. But this would need the hydrogen sector to grow at an unprecedented rate of over 90% each year between now and 2030, well above the growth experienced by solar PV during its fastest expansion phases, the IEA noted.

Moreover, “several projects have faced delays and cancellations, which are putting at risk a significant part of the project pipeline,” the agency said.

Most recently, Shell and Equinor have ditched plans for low-hydrogen production and transportation in north Europe, due to a lack of demand.

According to the IEA, the main reasons for the slow uptake of low-carbon hydrogen “include unclear demand signals, financing hurdles, delays to incentives, regulatory uncertainties, licensing and permitting issues and operational challenges.”

“[F]or these projects to be a success, low-emissions hydrogen producers need buyers,” said IEA Executive Director Fatih Birol.

“Policymakers and developers must look carefully at the tools for supporting demand creation while also reducing costs and ensuring clear regulations are in place that will support further investment in the sector.”

By Tsvetana Paraskova for Oilprice.com

 

Japan Maintains Energy Policy Focused on Boosting Nuclear and Renewables

By Tsvetana Paraskova - Oct 02, 2024,

Japan aims to continue restarting nuclear power plants and boost renewables capacity, the new industry minister said on Wednesday, signaling that the new government will not alter materially the country’s current energy policy.

“We can use renewable power to the maximum, and we will restart nuclear power, the safe one, as much as possible,” Industry Minister Yoji Muto, appointed by the new Prime Minister Shigeru Ishiba, told reporters in the first press conference as minister, as carried by Reuters.

Ishiba, who won the leadership race of the ruling Liberal Democratic Party, and by default became the new prime minister, had opposed reviving nuclear in the early stages of his campaign.

However, Ishiba stopped calling for ending nuclear power shortly after winning the race to be Japan’s new prime minister.

Currently, Japan is bringing back nuclear power as a key energy source, looking to protect its energy security in the wake of the energy crisis that led to surging fossil fuel prices.

The resource-poor country which needs to import about 90% of its energy requirements, made a U-turn in its nuclear energy policy at the end of 2022, as its energy import bill soared amid the energy crisis and surging costs to import LNG at record-high prices.

At present, fossil fuels account for about 70% of Japan’s electricity, which would clash with its net-zero goal.

Earlier this year, a government projection showed that Japan would need to increase its electricity output by between 35% and 50% by 2050 to meet a proportionate surge in demand.

In May, Japan launched the most important energy policy discussions in its post-World War Two history, aiming to strike a balance between the need to boost its energy security with conventional sources and its pledge to become a net-zero economy by 2050.

By Tsvetana Paraskova for Oilprice.com

 

A.P. Moller Plans to Turn a Hard-to-Find Green Bunker Fuel Into Plastic

Chemical plants and tank farms at Port of Antwerp, Europe's largest integrated chemical-industry cluster (Port of Antwerp)

Published Sep 30, 2024 6:21 PM by The Maritime Executive

 

 

The family holding company A.P. Moller is known best as the owner of Maersk, and it has invested heavily to build a green-methanol supply chain for Maersk Line's growing portfolio of dual-fuel methanol boxships. Green methanol is an essential ingredient for the shipping industry's transition, and it is in short supply; A.P. Moller's in-house energy portfolio allows Maersk to run some of its ships on low-carbon fuel, a competitive advantage as regulations tighten. A.P. Moller has now announced plans to turn some of this fuel into plastic instead. 

On Monday, a newly formed fossil-free plastics company announced plans to build a large plant in Antwerp that will draw its feedstock from A.P. Moller's green methanol sourcing network. The plant will turn green methanol into polypropylene (commonly used for packaging) and polyethylene (often used for disposable plastic bags and bottles). These are non-biodegradable products with the same attributes as conventional plastics, but made with a renewable source of methanol. 

The A.P. Moller-owned firm, Vioneo, says that it has designed its plant with proven technologies and will run its facility on renewable power, eliminating all CO2 emissions from production. The company believes that this will save up to six kilos of CO2 per kilo of plastic produced, and will achieve the lowest cost of carbon abatement on the market. The firm's name comes from the Latin words for "journey" and "new," and Vioneo says that it "has the potential to revitalize the European chemicals sector and position Europe as a leader in defossilizing the [plastics] industry."

Vioneo's first plastics plant will begin consuming green methanol in 2028, two years ahead of the IMO target date for decarbonizing five percent of the global bunker fuel supply. 

"A.P. Moller Holding is committed to driving the transition to low-carbon and fossil-free sources by advancing green methanol production and its applications across various sectors. The launch of Vioneo marks a significant step in this commitment," said A.P. Moller CIO Jan T. Nielsen in a statement. 

In August, A.P. Moller Holding's Maersk unit announced plans to order up to 60 dual-fuel newbuilds, including - for the first time - an unspecified number of LNG dual-fuel ships. Until the August announcement, Maersk was solely committed to green methanol as its dual fuel, and its executives had previously dismissed the potential of LNG as "another fossil fuel." 

Haiti's Main Seaport Closed After Gangs Attack Shooting Ships and Workers

The CPS terminal in Port-au-Prince (file image courtesy Caribbean Port Services)

Published Sep 27, 2024 4:53 PM by The Maritime Executive

 

 

For the second time this year, Haiti’s main seaport has been closed due to violence from the armed gangs that have been terrorizing the country. This is despite the efforts by the police and army with the assistance of troops from Kenya leading to calls at the United Nations this week for more urgent actions.

Port operator Caribbean Port Services announced that it was closing road access to the port and terminal at Port-au-Prince between September 26 and 29. The goal is to give the police and army time to attempt to secure the port and restore safety after the area was reportedly overrun this week by the armed gangs. Containers in the port were also reportedly looted.

The gangs were said to be shooting at ships attempting to dock and the dockworkers according to Reuters. One crane operator was shot according to the Miami Herald, which did an in-depth story on the port problems on Friday. Their sources said the crane operator was preparing to start offloading when he was shot twice. The Miami Herald reports luckily none of the bullets hit major organs and that the operator is expected to recover. The newspaper reports another person was shot earlier in the month at the port.

The unnamed vessel, reportedly operating for Miami’s Antillean Marine Shipping Company was the first scheduled to arrive in Port-au-Prince in over two weeks. The reports indicate that ships have been diverting due to safety concerns with some offloading cargo bound for Haiti in either the Dominican Republic or Jamaica. Efforts however to drive cargo from the Dominican Republic are hampered because the border between the two countries on the island is closed.

The newspaper reports that cargo shipments were suspended earlier in September after two crewmembers from a chartered containership were kidnapped. The two individuals who are reported to be Filipinos are still in the custody of the gangs held for ransom.

Trucks that were attempting to enter to exit the port also reported that they were being stopped by the armed gangs. The reports said the gangs are demanding money from the drivers to let the trucks proceed. 

It was the second report of violence overrunning the port after similar reports in March. With the efforts to stabilize Haiti having failed so far, it became a focus of the discussions at the United Nations. Officials told the organization that at least 3,661 people have been killed in Haiti since January due to rampant gang violence, “maintaining the high levels of violence seen in 2023,” the UN human rights office said in a report issued on Friday. Indications are that the gangs control 80 percent of Port-au-Prince and that more than 700,000 people are displaced and living in temporary arrangements.

Stabilizing the port at Port-au-Prince is critical as it handles 80 percent of the commercial cargo entering the country. It is vital for food and medical supplies. The smaller ports remain open but are unable to handle larger vessels.

The President of Kenya speaking at the UN said they were still committed to an additional 2,500 police officers to be deployed to Haiti over the next four months. However, he said that Kenya and other Caribbean and African countries are “hindered by insufficient equipment, logistics and funding."

The United States promised additional financial while the UN continues to discuss the next steps to restore security. Some are calling for the issue to go before the Security Council which would be required for the authorization of a new UN peacekeeper force. Officials from the UN Human Rights Office said tackling insecurity in the Caribbean country must be the utmost priority urging the international community to do more to protect people and prevent further suffering.
 

Haiti’s displaced facing ‘catastrophic’ food insecurity

Issued on: 01/10/2024 - 

Aid workers test for malnutrition at a centre for displaced people in Port-au-Prince, Haiti, on Septeber 20, 2024. © Reuters/WFP

Video by:Sam BALL

A new report has found that more than half of Haiti’s population is suffering from acute hunger amid political instability and a security crisis that has seen armed gangs take control of vast swaths of the country. The country’s large number of internally displaced are at particular risk, according to the UN’s World Food Programme.

02:17

 

Report: Developing World Ports Need $80M Each for Green Transition

The sprawling port of Santos, Brazil (Porto de Santos)

Published Sep 29, 2024 8:22 PM by The Maritime Executive

 

 

As shipping stakeholders convene this week for the IMO’s 82nd MEPC (Marine Environment and Protection Committee) session, the International Association of Ports and Harbors (IAOH) has released a new report exploring progress in decarbonization of port infrastructure in developing nations. The consultancy Maritime & Transport Business Solutions (MTBS) prepared the study  on behalf of IAPH.

Using case studies of ports in Kenya, Indonesia, Solomon Islands, Brazil and India, the report identified investments needed for port climate adaptation in developing countries. While a lot of focus in shipping decarbonization is directed towards future clean fuels, readying ports for the energy transition must also be prioritized.

Unfortunately, building port infrastructure for green bunkering and electrification of terminals with renewable energy is going to be a tall order for developing countries. According to IAPH, the total investment for this transition is between $55 and $83 million. This depends on port size, existing infrastructure and prior climate adaptation investments.

Although IMO member states have yet to reach consensus on market-based measures such as GHG pricing, IAPH views it as a possible source of funds for the exorbitant cost of port decarbonization in developing countries.

“The risk of a market-based measure increasing transport costs, which places added pressure on countries with lower efficiency infrastructure and less connectivity to the global trade network, could be offset by the potential revenues allocated to them for port-related adaptation and mitigation measures to kick start the energy transition,” said Patrick Verhoeven, IAPH Managing Director.

With this week’s MEPC session anticipated to finalize a framework to guide carbon pricing in shipping, IAPH has said it remains neutral as to the choice of instrument. Currently, there are four policy proposals on the carbon levy. However, IAPH has indicated it is supportive of a carbon pricing mechanism that will provide a strong incentive to invest in port infrastructure and enable commercial viability of low and zero carbon fuels.

 

USGS Deploys Wave Sensors Along Florida’s Coast Ahead of Hurricane Helene

This photograph, taken during a previous storm, shows a USGS scientist installing a storm tide sensor on a bridge. Those sensors use the same metal housing that can hold USGS wave sensors. Credit: Jonathan Willis, USGS

Published Sep 30, 2024 11:12 AM by The Maritime Executive

 

[By: U.S. Geological Survey]

Ahead of Hurricane Helene, scientists with the U.S. Geological Survey are deploying 13 wave sensors today in Florida between Venice and Panama City. Potential impacts from Helene include danger of life-threatening storm surge along the entire west coast of the Florida Peninsula and Florida Big Bend, as well as devastating hurricane-force winds across portions of northern Florida, according to the National Hurricane Center.

The sensors will measure water levels and give insight on factors such as wave height and frequency, storm tide and storm surge. The sensors will be in place from before Helene arrives until the storm departs, and at that time, scientists will retrieve the instruments and analyze collected data.

The resulting information can be used to fine-tune future storm surge and coastal change forecasts. The sensor data can help identify areas hit the hardest by storm surge and guide emergency responders and local officials with recovery efforts. Insight can also help inform flood insurance maps and building codes to improve structural designs for public safety.

“Studying Helene and other storms gives real-world insight that’s valuable in helping with community preparedness,” said Kevin Grimsley, who is part of this deployment effort and the associate center director for data with the USGS Caribbean-Florida Water Science Center. “Wave sensors capture data at a very high frequency, so we are able to receive extremely detailed and comprehensive records.”

The wave sensors are housed in vented aluminum pipes a few inches wide and about a foot long. They are being installed on bridges, piers, and other structures that have a good chance of surviving the storm.

Information on the sensor deployment and the incoming data will be available on the USGS Flood Event Viewer.

As the USGS continues to take all appropriate preparedness actions in response to Helene, those ­­­in the storm’s projected path can visit ready.gov or listo.gov for tips on creating emergency plans and putting together an emergency supply kit.

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

 

Three Dead as Shuttle Tanker Explodes in Bangladesh Port

Explosion on shuttle tanker in Bangladesh (Daily Star/YouTube)

Published Sep 30, 2024 12:54 PM by The Maritime Executive

 

 

A shuttle tanker docked at the Eastern Refinery in Chittagong, Bangladesh exploded today, September 30, killing three crewmembers. The Coast Guard and Navy along with local resources responded to the subsequent fire which also forced vessels to be moved to a safety zone.

An explosion ripped through the forward section of the 14,500 dwt shuttle tanker Banglar Jyoti at 11:00 am local time with a large plume of smoke from the fire seen rising from the vessel. Later pictures showed the deck of the vessel ripped apart and thrust upward while port officials said they were also checking the harbor for debris.

 

Forward section of the shuttle tanker was ripped apart by the explosion 

 

Officials said the intensity of the explosion made it unsurvivable and later in the day they recovered the body of a deck cadet and another body that had not yet been identified. Reports said two technicians were missing after the explosion in addition to the cadet. Teams were still searching the wreckage.

The tanker which was built in 1987 is owned by the Bangladesh Shipping Corporation. It was used to shuttle oil from larger offshore tankers to the Eastern Refinery. 

 

 

Some reports are indicating the crew was making repairs to the vessel while others said it was still offloading 11,000 tons of crude from larger tankers offshore. The fire was reported to be under control after about two to three hours. Eight fire units responded assisted by the Navy and Coast Guard. 

A team of inquiry has already been formed to look into the incident. It comes in the same month in which six workers were killed, and six others badly injured at a scrapyard in Chittagong working on a retired tanker. Employer associations complained in the past of lax enforcement of safety regulations. The board of inquiry fined the breaker and suspended its operating license while the last report said six workers remained in a hospital with burns. The board also made extensive safety recommendations.

Drone Boat Hits Merchant Ship in Red Sea, Puncturing Ballast Tank

File image: A remote-controlled bomb boat recovered from Houthi forces during the Yemeni Civil War (Arab Coalition)

Published Oct 1, 2024 1:47 AM by The Maritime Executive

 

 

Yemen's Houthi rebels appear to have hit another merchant vessel in a multi-domain, multiple-attempt attack, according to the Royal Navy's UK Maritime Trade Operations (UKMTO). 

At about 0140 hours GMT, UKMTO received a security report from an unnamed vessel about 60 nautical miles off the coast of Hodeidah. The captain reported that there were four splashes observed in the water near the ship, but the vessel was undamaged and the crew were safe. The ship continued onwards toward its next port of call. 

At 0500 GMT, the master reached out to UKMTO again to report that the vessel had been hit by a suicide drone boat. The No. 6 ballast tank was punctured on the port side, but no crewmembers were injured, and the vessel remained fully operational. It is currently under way to its next port of call. 

With support from Iran, the Houthi movement has targeted international shipping in the Red Sea since last October. Despite a U.S.-led campaign to defend marine traffic in the Red Sea, the Houthis have damaged dozens of ships and sunk two, killing four foreign seafarers. The group claims that it is targeting vessels with an Israeli connection - whether by ownership or by trading patterns - in order to protest the ongoing operation in Gaza.

Separately, Houthi spokesman Yahya Saree claimed that the militia had shot down an American MQ-9 Reaper drone, adding to a long list of claimed interceptions over Yemen. The MQ-9 is a mainstay for counterterrorism operations in the Mideast, and Saree asserted that the group has now taken down 11 of the unmanned aircraft. 

Houthi leaders had a setback over the weekend when an Israeli airstrike destroyed the fuel tank farms at Ras Isa and Hodeidah, along with a power station located near the waterfront. The toll has risen to five people dead and 57 wounded, said Saree

Houthis Damage Vessels in New Wave of Attacks

UKMTO reports two ships damaged in the same region of the Red Sea (UKMTO)

Published Oct 1, 2024 12:55 PM by The Maritime Executive

 

 

The Houthis are taking credit for attacks on several merchant ships with reports saying that at least two vessels have suffered damage in the new barrage. These are the first attacks in nearly a month on merchant ships and come as the Houthis threatened escalations after Israel attacked Yemen’s seaport over the weekend and launched its attacks on Hezbollah in southern Lebanon.

UK Maritime Trade Operations is confirming attacks on two vessels, a tanker and a bulker, in the same general area of the Red Sea and both damaged but with no reported crew injuries. The vessels are both reported proceeding according to UKMTO. The Houthis also claimed a third unconfirmed attack on a Maersk-chartered containership in the Arabian Sea as it was approaching Oman.

An Indian-managed tanker that is part of the shadow fleet transporting Russian oil to India is confirmed to have suffered damage with UKMTO saying the captain reported a port ballast tank has been punctured. The vessel, the Cordelia Moon, reported a first wave of the attack with four “splashes slighted” near the ship while the Houthis claimed a launch of eight missiles and one drone. The crude oil tanker (163,288 dwt) is returned empty bound for the Suez and orders after delivering a cargo to India.

The vessel was damaged during a second attack which involved an uncrewed surface vessel. The Houthis are calling the damage “severe” but the UKMTO says the vessel is proceeding. The tanker was 64 nautical miles northwest of Hudaydah, Yemen when the attack occurred.

The Houthis are referencing the Cordelia Moon as a “British oil tanker.” They appear to be using outdated information as the vessel was acquired in November 2023. 

The second attack, which the Houthi have not acknowledged, came on the Minoan Courage (76,800 dwt), a Greek-managed bulker. The vessel which is registered in Liberia was approximately 97 miles northwest of Hudayah. UKMTO reports it was struck by a missile and sustained unspecified damage.

In an unconfirmed statement, the Houthis are also claiming to have attached the containership Marathopolis (70,461 dwt) for the second time in recent months. The ship registered in Malta came under attack in July and they are saying today they launched two more attacks on the same ship in the Arabian Sea. In the first wave, the Houthis claimed they used missiles and then followed with a drone which they claimed hit the vessel. UKMTO has not reported this attack.

Marathopolis is owned by Costamare Shipping of Greece and has a capacity of 4,957 TEU. Maersk shows the vessel on its tracker as due in Salalah, Oman today, October 1. She is operating on a route connecting with India.

These latest strikes came as EU NAVFOR Aspides highlighted the arrival of the Greek warship Spetsai (frigate commissioned in 1996) to its force. The vessel transited the Suez Canal to join the protection operation in the Red Sea. US Central Command had also reported a lull in activity with only limited inceptions of Houthi launches during September. 

 

French Politics and Markets Cause Cancelation of Sail Boxship Order

Plan called for five wind and methanol-powered containerships (Zephyr & Boree)

Published Sep 30, 2024 7:16 PM by The Maritime Executive

 

 

An innovative project to build five innovative containerships that would have combined sailed and methanol-fueled propulsion has been canceled due to French politics and the overall downturn in the cargo markets. Planned by the firm Zéphyr & Borée, they however said they remain committed to the project and will continue to seek financing.

Last week, the Hyundai Mipo Shipyard in South Korea reported the cancelation of an order in a stock exchange announcement saying it was “upon the shipowner's request to cancel the contract.” They said it was for five vessels with a value of nearly $315 million. The order was placed in May 2023.

Zéphyr & Borée confirmed that it has withdrawn the contract for the ships which were to be an initial class of five feeder ships with a capacity of 1,300 TEU that would have deployed a wing sail design as well as methanol-fueled engines to achieve one of the first zero-emission containerships. The ships had been expected to enter service in 2025 and 2026. 

The reports said the company has experienced difficulties in the public finance markets since the collapse of the French government in July. French President Emmanuel Macron called elections in France and without a clear majority the country has been struggling to form a unity government. The company said this was hindering the French public finance markets but it is hopeful once the political situation stabilizes it can proceed with the financing. 

Zéphyr & Borée also cite the overall downturn in the freight market since the end of the COVID pandemic. They planned to contract with a series of shippers to support the project and launch an Atlantic shipping route. 

It was part of an ambitious plan that also projected to build a larger series of vessels designed to help lead the industry in decarbonization. The vessels however are significantly more expensive to build because of the new technologies. 

The company however was able to deploy a unique proof of concept ship Canopée, which is a Ro-Ro cargo ship used to transport components for the European Space program, It recently made its first visit to the U.S. calling at Port Canaveral creating interest in the concept of integrating sails into the vessel design.