Friday, October 25, 2024

 

Electric Boat Slows Down Sub Production Because of Delayed Parts

Submarine
Courtesy GD Electric Boat

Published Oct 24, 2024 9:31 PM by The Maritime Executive

 

 

On Wednesday, in a confirmation of the concerns of U.S. Navy leadership, the head of General Dynamics said that her company would be slowing down the pace of construction on new submarines to match the behind-schedule pace of component deliveries. 

GD's Electric Boat division and Huntington Ingalls Industries build the Navy's Virginia-class and future Columbia-class nuclear-powered subs. Beset by workforce and supply-chain issues, both programs have been hit with long delays - more than a year in the case of the Columbia-class. The Navy says that it can't afford to wait for its stealthiest and deadliest platforms in an era of great power competition, and it has invested billions in infrastructure and workforce initiatives to shore up the submarine industrial base, with unclear results.

In a call with investors on Wednesday, General Dynamics CEO Phebe Novakovic said that Electric Boat has been "severely impacted by late deliveries from major component suppliers," pushing back schedules and driving up costs. Though not specified, the "major components" could include USS Columbia's steam turbine, which manufacturer Northrop Grumman has had difficulty delivering on time, according to Secretary of the Navy Carlos Del Toro. 

The delays have pushed the final assembly of subs at Electric Boat out of sequence, and some sections have been welded together before all components in each section are pre-installed. Because of the inefficiency of working out of sequence, the cost of completion rises by up to eight times for these segments, Novakovic said. 

"There is no point hurrying portions of the boat only to have to stop and wait increasingly extended periods of time for major components to arrive. It is neither good for the boat over time nor cost," she told investors. "Our out-of-sequence work on modules weighing thousands of tons is time-consuming and therefore expensive."

Worker shortages are the most severe issue facing Electric Boat's subcontractors and suppliers, and the Navy recently allocated $1 billion to a workforce-development contract to boost employee recruitment and retention. The program will also support R&D work to scale up 3D printing and robotics technology for use in submarine construction.

The Navy's submarine suppliers need to increase production fivefold in order to meet strategic needs, and fast. The Navy is on a tight timetable to build replacements for the aging Ohio-class ballistic missile subs, the most survivable element of the nation's nuclear triad, while also delivering more Virginia-class boats for export to Australia. This could take as many as 100,000 new civilian shipbuilders and subcontractors, according to the service. 

The IMO's Black Carbon Rules Are Coming, and Shipping Must Be Ready

WHY THEY NEED CCS

Black carbon
iStock

Published Oct 23, 2024 2:29 PM by Dr. Sean Prior and Dave Walsh

 


In early October, the IMO Marine Environment Protection Committee (MEPC 82) agreed that the concept of “polar fuels” would be further considered at a technical committee meeting in January, setting a clear pathway for future black carbon regulation.

This new course must see the IMO and its Member States develop mandatory regulations to reduce black carbon emissions - and these new rules must be prepared in a matter of months so that they can be approved at MEPC 83 in April 2025 and adopted by 2026. 

Progress is certainly to be welcomed - after all,  IMO has been discussing the Arctic impact of black carbon from ships since 2011. There are many ways that ships can reduce their black carbon emissions, but without rules in place, emissions are increasing globally - and have more than doubled in the Arctic. 

Black carbon is a short-lived climate pollutant, produced by the incomplete burning of fossil fuels, with an impact more than three thousand times that of CO2 over a 20-year period. It makes up around one-fifth of the climate impact of international shipping, which contributes around three percent of all human sources of climate-warming greenhouse gases. Not only does it contribute to warming while in the atmosphere, black carbon also accelerates melting when it falls onto snow and ice. 

This melting exposes darker areas of land and water which then absorb further heat from the sun, while the reflective capacity of the planet’s polar ice caps is severely reduced. More heat in the polar systems results in increased melting. This is the loss of the albedo effect, and it is a serious concern: scientists recently announced that the Arctic’s reflectivity has weakened by 24% since 1980.

Declines in sea ice extent and volume are leading to a burgeoning social and environmental crisis in the Arctic, while cascading changes are impacting global climate and ocean circulation. Scientists have high confidence that processes are nearing points beyond which rapid and irreversible changes on the scale of multiple human generations are possible.

The shipping industry can reduce black carbon emissions by switching ships from using dirty residual fuels - like heavy fuel oil - to lighter distillates. This alone could reduce black carbon emissions by between 50 and 80 percent, depending on the type of engine, while installing technology such as diesel particulate filters would remove further black carbon from ships’ exhausts, much like cars today. 

IMO Member States have now been tasked with providing comments and proposals on the concept of polar fuels. The Clean Arctic Alliance’s submission to MEPC 82 set out the fuel characteristics that would distinguish polar fuels from residual fuels, and thus lead to fuel-based reductions in black carbon emissions from ships. Some countries have suggested that any outcome on polar fuels could be first included in existing best practice guidance, but a number of Arctic countries at MEPC 82 supported the idea of mandatory regulation. 

It would be irresponsible and reckless for the IMO to further delay the shipping sector’s response to the significant threat to the Arctic and to Arctic tipping points (changes that are virtually impossible to reverse) posed by black carbon emissions. To continue to allow unregulated emissions of a short-lived climate forcing pollutant in the Arctic is quite simply negligent, and will have unprecedented repercussions for the planet and humanity globally. There is little time left if the IMO is to have any impact on slowing down the loss of Arctic sea ice or the melting of the Greenland ice sheet.

It will be important, however, to ensure that a move from dirty heavy fuels to lighter diesel fuels does not prevent the flourishing of other cleaner new fuels or other forms of propulsion, including wind power. The black carbon regulation must be written in such a way that it requires ships operating in or near to the Arctic to move to cleaner distillate fuels, but also allows the use of “new” low- or zero-carbon, non-fossil fuels or other forms of propulsion that are now becoming commercially available. 

The clock is ticking. The IMO and its Member States have just a few months to develop these mandatory regulations, which must be effective in radically reducing black carbon emissions. These new rules can and must be approved at MEPC 83 in April 2025 and adopted by 2026. 

Other issues: Emission Control Areas at MEPC 82

During MEPC 82, two new emission control areas (ECA) were adopted and will come into effect from 1 March 2026, covering the Canadian Arctic waters and the Norwegian Sea. ECAs, which are sea areas with stricter rules, are designed to require ships to reduce nitrogen oxides (NOx), sulfur oxides (SOx), and particulate matter (PM) emissions. Since they also enforce the use of cleaner fuels by ships, they have a co-benefit of reducing black carbon emissions. 

At MEPC 82, the Committee heard a presentation led by the government of Portugal setting out background studies for a further ECA in the North Atlantic. The boundaries of this future ECA have not yet been decided but could potentially stretch from Portuguese waters to the coast of Greenland, reducing NOx, SOx and PM, with consequent improvements in air quality and the health of coastal communities along the European western seaboard. 

Creation of this ECA would ensure that black carbon emissions would be further reduced, which is good news for the Arctic. When ships sail north of 60 degrees, their impact from black carbon emissions is the greatest. However, as black carbon remains in the atmosphere for a few days or weeks, dependent on prevailing winds, it can be transported to the Arctic from further south. Any measures to reduce black carbon emissions from ships sailing north of 40 degrees North - just north of the Mediterranean Sea - will be immensely beneficial in terms of reducing the impact of shipping’s black carbon emissions on the Arctic.

While this is all very welcome news, it does not negate the need for an Arctic-wide black carbon regulation. The new ECAs and a future Atlantic ECA will improve air quality and the health of coastal populations, but until the IMO puts in place mandatory rules, shipping's black carbon emissions remain totally unregulated. 

Dr Sian Prior is Lead Advisor to the Clean Arctic Alliance, and Dave Walsh is the Alliance’s Communications Advisor.

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

Shipping firms to pay $102M over Baltimore bridge collapse

The US government last month sued the Singapore-based firms behind the MV Dali, which crashed into the Baltimore bridge. The suit aimed to cover the costs of the government's massive cleanup efforts.

Plans to replace the Francis Scott Key Bridge could cost close to $2 billion, officials sayImage: Jerry Jackson/Baltimore Sun/ZUMA/picture alliance

The owner and manager of the massive container ship that crashed into the Francis Scott Key Bridge in Baltimore in March have agreed to pay nearly $102 million (€94 million) to resolve a civil claim brought by the US government.

The money will go toward covering the costs of the massive clean-up operation to remove about 50,000 tons of steel, concrete, and asphalt from the channel and from the ship itself.
What happened to the Francis Scott Key Bridge in Baltimore?

The 100,000-plus-ton ship, the MV Dali, slammed into the bridge in the early hours of March 26, as a work crew was fixing potholes.

Six construction workers died in the incident as the bridge went crumbling down into the water below. The nearly two dozen crew members on the boat survived.

The deadly crash stopped most maritime traffic for months at the busy port, which is one of the largest on the US East Coast.

Last month, the US Justice Department sued Dali's owner, Grace Ocean Ltd., and manager, Synergy Marine Group, both of which are based in Singapore, seeking to recover the costs of the sprawling emergency response to the disaster.

US seeking damages to cover costs of response


Officials from the US Justice Department hailed the settlement, but state officials are still working on their own case.

"Nearly seven months after one of the worst transportation disasters in recent memory, which claimed six lives and caused untold damage, we have reached an important milestone with today’s settlement," Principal Deputy Associate Attorney General Benjamin C. Mizer said in a statement.

As part of the settlement, the Department of Justice agreed to drop its lawsuit, which had demanded a similar amount.

Attorney General Merrick B. Garland said last month that the costs of cleaning the channel ought to be borne "by the companies that caused the crash, not by the American taxpayer."


Why did the MV Dali crash?


The civil suit does not include any damages for the reconstruction of the Francis Scott Key Bridge. The state of Maryland has filed its own claim seeking those damages, officials said.

The civil lawsuit filed last month also provides one of the most detailed accounts of the failures that led to the ship's short journey on the morning of March 26.

The Justice Department alleged in the suit that the electrical and mechanical systems on the ship, which was bound for Sri Lanka, were improperly maintained.

The ship subsequently lost power and veered off course before it struck a support column on the Francis Scott Key Bridge in March.

rm/zc (Reuters, AP, AFP)

Owner/Operator of Dali Agree to Py U.S. $102M in Baltimore Recovery Cts

Dali Baltimore wreckage
The owner and operator of the Dali agreed to settle U.S. federal claims for the cost of the recovery operation (USCG)

Published Oct 24, 2024 8:55 PM by The Maritime Executive

 

 

[Updated to include a statement from Grace Ocean and Synergy Marine]


In a surprise development coming just a month after the United States filed suit against the owners and operators of the containership Dali for the costs of the federal recovery efforts in Baltimore, the case has been settled. Grace Ocean and Synergy Marine agreed to pay the federal government $101,980,000 to resolve the civil claim for the costs of the recovery after the Dali hit and destroyed Baltimore’s Francis Scott Key Bridge.

The settlement is only a small part of the massive legal claims the owners and operators face for the March 2024 allision of the containership that killed six people and destroyed the bridge. The companies shortly after the incident had tried to invoke a law that would have limited their liability to approximately $43.7 million in total.

Today’s settlement only covers the federal civil suit claim for the cleanup expenses. The City of Baltimore has also filed suit and the State of Maryland which owned the bridge has filed a claim including seeking the replacement cost of the bridge which could run as high as $2 billion. Families of the victims and businesses impacted by the loss of the bridge and the closing of the harbor for months have also entered claims and a criminal investigation is ongoing based on investigations that found faults in the ship’s electrical systems and maintenance. 

The owners and operators of the Dali issued a statement highlighting that the federal government’s claim was unique and significantly different from other claims, as it fell outside the usual limitation of liability framework. They also noted that no punitive damages were imposed as part of the settlement.

"The settlement strictly covers costs related to clearing the channel, which we would have been responsible for in any case, and is not indicative of any liability, which we expressly reject for the incident that led to the collapse of the Francis Scott Key Bridge," said Grace Ocean and Synergy Marine in a written statement to the Maritime Executive.

Officials from the U.S. Justice Department emphasized the quick resolution of their claim. They also said the settlement ensures Grace Ocean and Synergy Marine, not the American taxpayer bore the cost of the cleanup and recovery. The Department of Justice filed its claim as part of the case in Maryland’s court on September 18 seeking just over $103 million as the costs of the recovery operations.

“This is a tremendous outcome that fully compensates the United States for the costs it incurred in responding to this disaster and holds the owner and operator of the Dali accountable,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The prompt resolution of this matter also avoids the expense associated with litigating this complex case for potentially years.”

Today’s settlement goes to the U.S. treasury and is applied to the budgets of several federal agencies directly affected by the allision or involved in the response. It is in addition to $97,294 recently paid by Grace Ocean to the Coast Guard National Pollution Fund Center for costs incurred to abate the threat of oil pollution arising from the incident.

Lawyers for Grace Ocean and Synergy Marine earlier this week filed with the Maryland court proposing a January 2027 trial. Plaintiffs including the Department of Justice are proposing a December 2025 trial.

 

Hapag and Maersk Raise Outlook for 2024 as Volatile Market Fuels Profits

Hapag containership
Hapag-Lloyd increased its 2024 outlook just days after Maersk also increased in full-year forecast (Hapag)

Published Oct 25, 2024 9:12 AM by The Maritime Executive

 

 

Despite increases in operating costs due to the Red Sea diversions, disruptions due to port strikes in the U.S., Canada, and Europe, and volatile rates, container carriers are continuing to report strong financial results. Driven by strong demand and the volatility in the market, both A.P. Moller-Maersk and Hapag-Lloyd previewed strong results for the third quarter and raised their forecasts for 2024 full-year results. 

The carriers have repeatedly warned of the challenges in the markets but at the same time have also raised their forecasts several times over the course of the year. With no signs of near-term shifts in the market or resolution of the disruptions, Maersk and Hapag are expecting solid fourth quarters and added billions to their full-year projections.

“On the back of strong third quarter results combined with strong container market demand and the continuation of the Red Sea situation,” A.P. Moller-Maersk reported Monday, October 21 that it was raising its forecast. Further, it said the outlook for the global container market volume growth for the full year 2024 had been revised to around six percent versus an early year forecast of negative to flat performance and the latest previous forecast of four to six percent volume growth.

Maersk reports it had total revenues of $15.8 billion in the third quarter and revenues of $4.8 billion (EBITDA). The company is due to report full results for the quarter on October 31. For the full year, they increased earnings projections to a total of $11 to $11.5 billion (EBITDA) which is an increase ranging between $500 million to $2 billion for the full year.

Soon-to-be partner Hapag-Lloyd, who will join Maersk in the new Gemini Cooperation in 2025, followed suit on October 24, highlighting a strong third quarter and increased outlook. They however warned that “against a backdrop of very volatile freight rates and major geopolitical challenges, the forecast is subject to a high degree of uncertainty.”

Hapag advised investors, “Given the current course of business, characterized by stronger than expected demand and improved freight rates, and despite increased expenses related to the necessary diversion of vessels around the Cape of Good Hope, the Executive Board of Hapag-Lloyd AG is raising its earnings outlook for the financial year 2024.”

The sector’s fifth largest carrier, Hapag reported that preliminary figures showed nine-month earnings of $3.6 billion (EBITDA). It will report its results on November 14.

Hapag followed Maersk’s example and is adding a range of between $400 million to $1.1 billion to its full-year EBITDA forecast. It is now expecting EBITDA earnings of between $4.6 to $5 billion for 2024.

The strong expectations for the year represent a reversal from warnings that all the major carriers issued entering 2024. Citing dramatic declines in freight rates despite consistent volumes, the outlook projected a period of consolidation for the container carriers. They also worried about overcapacity and the impact of deliveries from the enlarged orderbook, only to have all these concerns offset by the volatility in the market and demands as they dealt with the problems in the Red Sea, limitations in the Panama Canal, and a broad range of other issues while shippers continued to maintain strong volumes.
 

 

China Gains Foothold in Thailand as Cosco Invests in Container Terminals

Thailand container port
Laem Chabang handles 80 percent of the container throughput in Thailand (Hutchison Thailand)

Published Oct 25, 2024 9:30 AM by The Maritime Executive

 

 

Cosco Shipping Ports, the terminal and port operating arm of the Chinese-government-owned shipping company, reports it is acquiring stakes in two of the terminal operations in Thailand’s leading port. It is a critical step for the company to expand its reach into Southeast Asia and support’s China effort to increase its influence in the region.

Laem Chabang Port is Thailand’s largest port accounting for approximately 80 percent of the country’s container throughput. Started in the early 1990s, it is located approximately 80 miles from Bangkok and close to the country’s major industrial and manufacturing hubs including Rayong.

Under the terms of the parallel agreements, Cosco will acquire 12.5 percent of Thai Laemchabang Terminal (TLT) and 30 percent of Hutchison Laemchabang Terminal (HLT) both in the port of Laem Chabang and controlled by Hutchison. The company has been operating TLT since 2002 and began driving expansion in the region with HLT which was started in 2006. 

Expansion of the operations is ongoing adding additional berths and capacity. Cosco reports it will gain access to seven berths in the port. Once the current expansion is operational, the total annual capacity is expected to reach approximately 6.7 million TEU. Cosco is spending approximately $110 million for the stakes in the two terminals as well as a share in the Port of Sokhna at the northern end of the Red Sea in Egypt on the route to the Suez Canal.

Cosco cites the excellent connectivity of Laem Chabang Port to global trade routes saying that it makes it “an ideal gateway for international shipping.” China has long been seeking a foothold in Thailand to support its efforts to expand trade in Southeast Asia. Cosco points to Thailand’s Eastern Economic Corridor initiative which it says will further strengthen the long-term growth and prospects of Laem Chabang Port and the surrounding area.

Unlike other regions such as Germany where Cosco faced strong opposition to its purchase of a share of a terminal in Hamburg, the company is being welcomed into Thailand. The company cites a “stable and favorable regulatory environment,” in Thailand which it says minimizes its operating risks. Cosco said in its statement that the deal aligns with its long-term strategic intention to deepen Sino-Thai economic and trade cooperation and expand in the Southeast Asian market.

 

UK Joins Ukraine in Vowing to Strengthen Defense of Black Sea Ports

Odesa port region
Ukraine with support of UK will enhance security for its Black Sea ports (file photo)

Published Oct 23, 2024 12:57 PM by The Maritime Executive

 

Senior officials from the Ukrainian government met in the Odesa area on Tuesday, October 22, to review the security situation for the ports and maritime corridor. At the same time, UK Prime Minister Sir Keir Starmer called out the Russian actions attacking the ports and promising along with Norway to provide additional aid to protect the shipping corridor.

UK intelligence had detected “a noticeable increase” in Russian attacks on the Black Sea ports Starmer noted confirming the reports coming from Ukraine of damage in and around Odesa. Defense Intelligence cited at least four merchant vessels that have been struck by Russian munitions, ParesaOptimaShui Spirit, and NS Moon, reported Starmer condemning the attacks on port infrastructure. He said the grain ships have become collateral damage in Russia’s latest campaign.

Starmer echoed statements from Ukraine that the attacks are endangering the world food supply, especially for the most vulnerable. Starmer highlighted that one of the vessels, Shui Spirit, was delayed loading and transporting vegetable oil destined for the World Food Program for relief in Gaza. Other ships were loading corn for the World Food Program in Africa and another was carrying grain to Egypt.

The Ukrainian officials asserted that Russia is “attempting to weaken our economy and destroy the country’s key logistics hub.” They said that the Greater Odesa area has recorded more than 50 missile strikes. Ukrainian reports say more than 20 merchant ships have been damaged by Russian attacks since the start of the war in 2022. Grain silos, warehouses, and port infrastructure have also been damaged.

“We are strengthening defensive measures in every port,” said the Ukrainian government officials after their meeting. They said it would include additional measures to increase the defense ability and security as well as providing mobile shelters for workers. “Additional funds will be allocated for the restoration of the infrastructure of the Odesa port. This will include upgrading key facilities and strengthening the overall security of the port areas.”

The efforts come as Ukraine looks to continue to expand exports after the annual harvest. Despite the attacks, Ukraine doubled grain exports in the first 10 days of October versus 2023 to approximately 962,000 tonnes. They report that over 2,800 ships have transported grain from the three Black Sea ports and that currently 86 ships are expected to export almost two million tonnes of cargo from the Odesa region.

The UK government reports it has been at the forefront of work to protect the maritime corridor in the Black Sea. The Maritime Capability Coalition - led by the UK and Norway – is focused on delivering a future naval fighting force for Ukraine and has been instrumental in helping to equip Ukraine’s navy with items such as uncrewed surface vessels, which will protect the corridor, they said in a statement.

Starmer announced that the UK would provide a further £2.26 billion ($2.9 billion) for Ukraine as part of the UK’s contribution to the G7 Extraordinary Revenue Acceleration (ERA) Loans to Ukraine scheme. Through the scheme, $50 billion from G7 countries will be delivered to Ukraine for its military, budget, and reconstruction needs. The loan will be repaid using the extraordinary profits on immobilized Russian sovereign assets.

The UK is also donating an additional £120 million ($155 million) toward the Maritime Capability Coalition and is seeking partners to co-fund delivery of hundreds more maritime drones (aerial and uncrewed boats), as well as surveillance radars to protect the grain corridor. The UK and Norway are seeking a further £100 million ($129 million) to co-fund hundreds more. 

The UK highlights that it has gifted dozens of amphibious all-terrain vehicles and raiding craft, hundreds of anti-ship missiles for coastal defense and river operations, and hundreds of thousands of rounds of ammunition to accompany the machine guns sent to Ukraine.

Ukrainian officials also met with Turkey’s President Erdogan to discuss safe navigation for shipping in the Black Sea. They are calling for increased ties between the countries while seeking aid to stop the attacks and ensure freedom of navigation.

 

Ammonia-Powered Engine to be Developed for Medium-Speed Marine Applications

MAN Energy Solutions
AmmoniaMot 2

Published Oct 24, 2024 12:12 PM by The Maritime Executive

 

[By: MAN Energy Solutions]

Having designed and tested the first two-stroke ammonia engine, MAN Energy Solutions has now announced launching the ‘AmmoniaMot 2’ research project. Initiated by MAN with partners from industry and research institutes, the project aims to develop a four-stroke, medium-speed, dual-fuel test engine that runs on ammonia. ­­

Supported by the German Federal Ministry for Economic Affairs and Climate Action (BMWK), the project commenced in August 2024 and is scheduled to run for 3½ years. It is the successor to the ‘AmmoniaMot’ project, which dealt with fundamental investigations concerning ammonia combustion in internal-combustion engines and that ended in May 2024. Its promising results form the basis for the even more ambitious AmmoniaMot 2, once again led by MAN Energy Solutions with the same partners from the original project and supplemented by some new, namely: WTZ Roßlau gGmbH, Woodward L’Orange GmbH, the University of Munich (SFM), Neptun Ship Design GmbH, the University of Rostock (LKV), GenSys GmbH and MNR GmbH.

Alexander Knafl, Head of Engineering R&D Four-Stroke, MAN Energy Solutions: said: “For MAN Energy Solutions, this project is the next logical step after the previous AmmoniaMot project. It perfectly supports our own strategy to develop sustainable technologies and we very much appreciate the opportunity to work with our distinguished partners. For us, the path to decarbonising the maritime industry starts with decarbonising fuels and, in this context, ammonia is an excellent candidate as it is carbon-free and thus avoids CO2-emissions when used as a fuel in our engines.”

MAN Energy Solutions sees the future application of ammonia-powered, four-stroke engines primarily in newbuild projects without passengers, such as cargo or special vessels, or as an auxiliary GenSet for large ammonia-powered two-stroke vessels. For passenger ships such as ferries and cruise liners, MAN Energy Solutions is currently focusing on methanol as that segment’s fuel of the future and is already developing corresponding engines in parallel.

Christian Kunkel, Head of Combustion Development, Four-Stroke R&D, MAN Energy Solutions, added: “In the original AmmoniaMot project, we laid a strong foundation with our excellent partners and proved that ammonia is a suitable fuel for medium-speed applications with the potential to reduce greenhouse-gas emissions by 90-95% while complying with existing emission regulations. I am more than excited to take the next step with our partners in AmmoniaMot 2. There is no doubt but that ammonia will become an important carbon-free fuel and thus not just contribute to the decarbonisation of the maritime sector.”

Partner roles

  • MAN Energy Solutions is responsible for the entire engine concept for the ship application, including the exhaust-gas aftertreatment system;
  • WTZ Roßlau gGmbH will develop the combustion concept for the engine and test the injection components under realistic conditions;
  • Woodward L’Orange GmbH will develop the injector prototype for the engine;
  • The University of Munich (SFM) is responsible for the 3D-CFD combustion simulation;
  • Neptun Ship Design GmbH will develop the demonstrator of the high-pressure fuel-supply module for ammonia (CAPSAM), taking into account the safety requirements aboard ships;
  • The University of Rostock (LKV) will conduct experiments for the injection technology, exhaust-gas aftertreatment concept, lubrication of ammonia engines and will develop 0D/1D simulation models on the basis of these experiments;
  • GenSys GmbH will be responsible for the construction of the demonstrator of the high-pressure fuel-supply module for ammonia (CAPSAM);
  • MNR GmbH will develop the double-walled fuel system and the compensator for the high-pressure fuel piping system for ammonia. 

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

MONOPOLY CAPITALI$M

Report: Seadrill and Transocean Are in Merger Talks

Transocean rig
Courtesy Transocean

Published Oct 24, 2024 7:31 PM by The Maritime Executive

 

Two giants of the offshore drilling industry, Seadrill and Transocean, are quietly engaged in talks on a merger, Bloomberg reports. Seadrill's stock jumped nearly 10 percent on Thursday on news of the potential merger. 

The details of the combination remain private, and no final decision has been reached. Both firms have declined requests for comment. 

A merger would allow the two firms greater heft to compete with Noble Corp., the world's largest offshore drilling company. Noble has grown rapidly through M&A, acquiring both Maersk Drilling and Diamond Offshore during a period of rapid consolidation in the industry. 

Last month, Seadrill CEO Simon Johnson said that his firm was looking for opportunities to buy distressed assets and distressed companies, or to merge with another drilling company. "We haven't seen the end of consolidation," Johnson told an investor conference. At the same gathering, Transocean COO Keelan Adamson said that his firm sees room left for "one big consolidation" in the industry. 

Seadrill underwent two rounds of debt restructuring after the 2014 offshore downturn, and founder John Fredriksen - Norway's wealthiest businessman - lost control of one of his flagship companies. It is now a New York-listed public firm with a smaller head count and fleet size. 

Kuppy Kupperman, manager of hedge fund Praetorian Capital, said in a social media that a Seadrill-Transocean would drive up rates and create more consolidation opportunities. In a smaller market, competitors Valaris and Noble might have more leverage to take over other small players, leaving the international drilling industry with three large companies.




Boluda Makes Finnish Acquisitions Continuing Tug Sector Consolidation

tug in ice Finland
YHB adds expertise in icebreaking and hash conditions as well as expanding Boluda into Scandinavia (YHB)

Published Oct 22, 2024 8:15 PM by The Maritime Executive

 

 

Spain’s Boluda Group is continuing its rapid acquisitions across the tug and towboat sector as it works to further expand leadership in the industry. The latest acquisition of a family-owned small towboat company in Finland the company says is part of a strategy to consolidate its presence in Northern Europe and its expansion plans through the entry into Scandinavia.

Boluda is acquiring Yxpila Hinaus-Bogsering, which bills itself as the leading harbor towage company in the Gulf of Bothnia. The company was founded in 1981 and reports it has changed ownership several times with the current team in place since 2009. It has 18 employees and a fleet of six vessels, of which five are icebreakers.

“This purchase is a further step in our consolidation in Northern Europe, a complex market where the experience and expertise of the crews are key to carrying out towing and marine salvage operations in extreme conditions,” said Vicente Boluda Fos, president of Boluda. “In addition, we are opening the Scandinavian market, providing coverage to our customers in the northernmost part of the Baltic.”

YHB they said will add to Boluda Towage its experience at the forefront of towing operations in the extreme conditions of the Baltic, where ice and low temperatures require the knowledge and the expertise of crews to perform maneuvers safely and efficiently. 

The company is based in the Finnish port of Kokkola, providing harbor towage and icebreaking services in the ports of Kokkola, Vaasa, Raahe, and Kemi, as well as available elsewhere in the region. The company’s fleet consists of six vessels including both conventional tugs and ASD vessels. It acquired its first ASD tug, the Aries, from Singapore, in 2007. Its latest acquisition was also an ASD tug, the Aquila, which arrived in Kokkola from St. Petersburg in 2018.

Boluda Group reports it currently has a fleet of 364 tugs after having recently made acquisitions in France, the UK, Gibraltar, and elsewhere. It began its acquisitions in 2017 with the German towage companies of Unterweder Reederei and Lutgens & Reimers followed by Kotug Smit Towage in 2019, and in 2021, the harbor and offshore activities of Iskes Towage & Salvage. Later that year it also acquired the Scottish Caledonian Towage.

Plans to acquire Smit Lamnalco from joint venture owners Boskalis and the Saudi Arabian Rezayat Group were announced in 2013. The deal would have cemented the group’s position with a total of well over 500 vessels. Boskalis however decided to buy out the partnership and reported on Monday, October 21, that ‎Royal Boskalis completed the acquisition of Smit Lamnalco. Boskalis had been a 50 percent shareholder in Smit Lamnalco since 1963 and through the transaction acquired all remaining shares.

RIP

Two Dead in Accident at Ship Repair Yard in Norfolk

Tony Webster / CC BY SA 4.0
Tony Webster / CC BY SA 4.0

Published Oct 24, 2024 4:08 PM by The Maritime Executive

 

 

On Wednesday, two workers were killed in an unspecified accident at a privately-owned repair yard in Norfolk, Virginia. 

At about 0745 hours Wednesday, Norfolk police and fire-rescue teams were called out to the MHI Ship Repair yard on Warrenton Avenue, just opposite Portsmouth Marine Terminal on the Elizabeth River. On scene, they found one person deceased and one person critically injured. The survivor was taken to the hospital but died within hours. 

Yard operator Marine Hydraulics International confirmed the fatalities in a statement Wednesday. 

"We are deeply saddened to confirm the passing of two shipyard workers," an MHI spokesman said. "Our thoughts and prayers are with their families, as well as with the many impacted workers at our facility. We are committed to supporting them through this difficult time."

The firm added that safety is its top priority, and that it will cooperate with an investigation into the accident. 

Workers at the yard told local media that the other personnel on the vessel where the casualty occurred were sent home for the day. The name of the ship was not identified, but local WAVY's traffic helicopter captured video of police activity on the stern ramp of a large sealift ship. 

MHI Ship Repair is a division of Titan, the successor company of West Coast shipbuilder Vigor Industrial. It prides itself on quality, economical repair services for commercial and government clients. It employs about 500 people at its Norfolk locations. 

Top image: Tony Webster / CC BY SA 4.0




CLIMATE CRISIS

Tropical storm leaves towns submerged, 66 dead in Philippines

Agence France-Presse
October 25, 2024


People walk through logs swept away by Tropical Storm Trami in Laurel, Batangas province, south of Manila (AFP)

Residents of the northern Philippines used spades and rakes to clear their homes of mud and debris on Friday while others still awaited rescue as the death toll from Tropical Storm Trami rose to 66.

Tens of thousands remained displaced after fleeing floods driven by a torrential downpour that dumped two months' worth of rainfall over just two days in some areas.

"Many are still trapped on the roofs of their homes and asking for help," Andre Dizon, police director for the hard-hit Bicol region, told AFP. "We are hoping that the floods will subside today since the rain has stopped."

But accessibility remained a major issue for rescuers Friday, particularly in Bicol, President Ferdinand Marcos said at a morning press briefing.

"That's the problem we're having with Bicol, so difficult to penetrate," he said, adding that ground saturated by rain had led to "landslides in areas that didn't have landslides before."

- 'Everything is gone' -

In Laurel, a scenic town nestled near volcanic Lake Taal south of the capital Manila, AFP reporters saw roads blocked by felled trees, vehicles half-submerged in mud and homes severely damaged by flash flooding.

"We saw washing machines, cars, home equipment, roofs being swept away," resident Mimie Dionela, 56, told AFP.

"We're lucky (the rain) happened in the morning, for sure many would've died if it happened at night," she said. "It was indescribable how scared we were."

Islao Malabanan, 63, agreed he was alive only because the flood occurred during daytime, but said his family had lost everything "including our clothes".

Jona Maulion, who started an auto repair business in Laurel less than a year ago, questioned if her family could ever afford to restart from scratch.

"We thought we were on the way to success in the business," the 47-year-old said. "I didn't know that this would happen, everything is gone."


- Death toll grows -

As Trami departed the Philippines in the early hours, traveling west over the South China Sea, the storm's death toll was swelling as fresh reports of victims emerged.

In Batangas province south of Manila, the number of confirmed dead had more than doubled to 34, police told a local radio outlet Friday afternoon.


Earlier in the day, police staff sergeant Nelson Cabuso told AFP six unidentified bodies had been found in the province's Sampaloc village.

"The area was hit by a flash flood yesterday. Our people are still in the area to check if there are other casualties," he said.

Another five people were killed in a flash flood in the coastal village of Subic Ilaya, police corporal Alvin de Leon said.


Police in the Bicol region on Friday reported a total 28 deaths there, while two other bodies were previously found in Quezon province, one in Zambales and one in Masbate.

At his morning press briefing, President Marcos noted that the cities of Naga and Legazpi had reported "many casualties, but we haven't been able to get in yet".

- 'Two months' worth of rain -


Government offices and schools across the main island of Luzon remained shuttered Friday and storm surge warnings were still in place along the west coast, with potential waves as high as two metres.

State weather agency specialist Jofren Habaluyas told AFP that Batangas province had seen "two months' worth of rain", or 391.3 millimeters, fall over October 24 and 25.

An official tally late Thursday reported 193,000 people evacuated in the face of flooding that turned streets into rivers and half-buried some towns in sludge-like volcanic sediment set loose by the storm.


Rescuers in the region's Naga city and Nabua municipality used boats to reach residents stranded on rooftops, many of whom sought assistance via Facebook posts.

The search for a missing fisherman whose boat sunk in the waters off Bulacan province west of Manila, meanwhile, remained suspended Friday due to strong currents, the local disaster office said.

About 20 big storms and typhoons hit the Philippines or its surrounding waters each year, damaging homes and infrastructure and killing dozens of people.


But a recent study showed that storms in the Asia-Pacific region are increasingly forming closer to coastlines, intensifying more rapidly and lasting longer over land due to climate change.

© Agence France-Presse

Severe Storm Damages Ships an Strands Passengers/Cargo  Philippines

Philippines storm damage
RoRo ferry was diven across the harbor and against the dock by the storm (photos courtesy of PCG)

Published Oct 24, 2024 1:14 PM by The Maritime Executive

 

 

The Philippine Coast Guard is responding to multiple incidents as a severe storm moved through some of the most populated areas of the country on Thursday. Several vessels were reported to be in distress while the Coast Guard was also assisting with evacuations on land and rescues as parts of Luzon flooded.

The storm being called Kristine in the Philippines came ashore on the northeast coast of Luzon, the country's most populated island, and was moving across into the South China Sea. While it was below typhoon status, it had reported sustained winds of approximately 60 mph and gusts over 70 mph. It dumped a month’s worth of rain and was likely to become a typhoon as it moved back out to sea.

Early reports said more than 20 people have been killed with 150,000 or more forced to evacuate. The Coast Guard reports the storm is impacting 136 ports standing as many as 10,000 people and more than 2,800 cargoes. Approximately 150 vessels were reported stranded while an additional 315 were taking shelter from the storm.

 

 

In the early morning hours, the Coast Guard received a report that a ferry, Super Shuttle RoRo 2, was being dragged by the severe weather conditions at Batangas Port. The vessel has been laid up for the past year but had three crewmembers aboard. They were reporting it was a “dead ship,” drifting uncontrollably after losing its anchors in the storm.

The Coast Guard working with the vessel’s owners dispatched a tug. Towing operations however were aborted due to the worsening sea and weather conditions. The vessel became wedged up against one of the berths and they had been able to secure it until the storm passed.

 

Loaded container carrier was driven aground during the storm (PCG)

 

At around the same time, a container transport, LCT ASC Big Boy, loaded with 154 containers as well as seven rolling cargoes and a pre-loaded truck reported its anchor chains had broken in the storm. The vessel had 17 crewmembers aboard. 

The storm winds and waves drove the vessel ashore about 160 feet from Barangay Sugod. The Coast Guard inspected the ship and reported its engine remained operational but efforts to remove it from the sand were hampered by the weather conditions. 

Later in the day, the vessel reported that its port fuel tank had been punctured and they were attempting to transfer 4,000 liters of fuel to another tank. There however was some oil spilled. The worsening weather conditions were blamed for the vessel’s center rudder malfunctioning.

 

Coast Guard is assisting with the evacuation and rescues (PCG)

 

To the south near Cebu, another cargo vessel also grounded late on Wednesday. Strong winds and rough seas were being blamed for breaking the anchor chains of LCT Golden Bella that drifted ashore in the storm.

The Coast Guard remains on alert but as the storm has moved away reported the number of people stranded had gone down. However, the rescue operations were continuing as widespread flooding and mudslides were being reported in parts of the Philippines.