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.:Maritime News :.
.: 13-Jul-2019 :.
Two officers died on board of LPG tanker, cause unknown
LPG tanker GAS AEGEAN had to interrupt her voyage from Lavera France to Cudallore, East India, and call Trincomalee port, Sri Lanka, after two of her crew died on board, on Jul 8 or earlier. Both are reported as being officers, one 34-year old Ukrainian, another one 39-year old Russian. Cause of their simultaneous deaths is unknown, although it may be presumed, that deaths weren t the result of natural causes. The ship anchored at Trincomalee anchorage in the morning Jul 11, bodies of deceased seamen are to undergo autopsy, police started an investigation.
Fishing vessel in the Pacific reported mass crew medical emergency
Mexican fishing vessel MAZATUN on Jul 9 reported numerous crew in need of urgent medical assistance in the Pacific, some 1250 nm E of Manzanillo, Mexico. Later that day vessel headed for her home port Mazatlan, at 0600 UTC Jul 12 vessel was some 750 nm SW of Mazatlan. No information on what happened, and how many crew were affected.
Ferries collided at Alcudia, Mallorca, one breached
Ferry JAUME III collided with berthed ferry ALCANTARA in the morning Jul 12 at Alcudia port, Mallorca, Spain. Both ferries didn t have passengers or cargo on board. JAUME III was shifting berth to take on board passengers. ALCANTARA damages understood to be minor, ferry left Alcuida at around midday on scheduled trip, though with several hours delay. JAUME III sustained hull breach in stb bow area, her trip was cancelled. As of morning Jul 13, ferry was still at Alcudia.
Hoegh LNG to Charter Its New FSRU to Cheniere
Norway s Höegh LNG has signed a time charter contract for a floating storage and regasification unit (FSRU) with Cheniere Marketing International.
Under the deal, the company s recently named Höegh Galleon would be employed on a fixed daily charter rate with Cheniere for a period of up to 18 months.
The time charter is scheduled to commence in September 2019 after the delivery of the unit, Höegh LNG s tenth, from South Korea s shipbuilder Samsung Heavy Industries.
The company explained that the terms of the time charter ensure the Hoegh Galleon s availability to serve the AIE project in Port Kembla, Australia, where Hoegh LNG is the FSRU provider on a back-to-back basis.
AIE recently announced a contract to supply gas to its foundation customer from January 1, 2021.
"This charter party will cover the period from delivery of Hoegh Galleon until its planned start-up in Port Kembla. Combined with a finalized AIE contract and the project s FID, Hoegh Galleon will have long-term contract coverage in line with HLNG s stated strategy," Sveinung J.S. Stohle, President & CEO of Hoegh LNG, said.
Støhle added that from commencement of the Cheniere contract in September, Hoegh LNG s fleet would be fully employed.
Singapore Remains World s Top Shipping Center
Singapore has topped the 2019 Xinhua-Baltic International Shipping Centre Development (ISCD) Index for the sixth year running, the Baltic Exchange said.
The index provides an independent ranking of the performance of the world s largest cities that offer port and shipping business services.
Based on objective factors including port throughput and facilities, depth and breadth of professional maritime support services, as well as general business environment, the report is a collaboration between the Chinese state
news agency, Xinhua, and international freight benchmark provider, the Baltic Exchange.
In the six years since this report has been published, there has been a general rise in the performance of Asian and Middle Eastern locations. The first report in 2014 included three European locations in the top five - in 2019 only London remains.
The top five international shipping centers in 2019 are Singapore, Hong Kong, London, Shanghai and Dubai.
"Singapore commands a strategic position as a maritime hub in the regional and global arena. The maritime industry is, and will remain, a big contributor to Singapore s economy and it is therefore important that we continue to innovate and invest in this sector to achieve long-term success," Lu Su Ling, Head of Baltic Exchange Asia, commented.
Based on the evaluation scores, Singapore shows strength in ship management and shipbroking services, while Hong Kong is benefiting from China’s Belt and Road Initiative and economic opportunities in the Guangdong-Hong Kong-Macau Greater Bay Area.
London s first-class services in shipbroking, legal and shipping finance were highlighted. As important cities in emerging economies, Shanghai and Dubai are catching up with London in their level of shipping development and were ranked fourth and fifth respectively.
Among the top ten international shipping centers in 2019 are also Rotterdam, Hamburg, New York - New Jersey, Houston and Athens.
Shipping Majors Sign Up for CargoSmart-Led Data Exchange Platform
Major maritime industry players have joined management software solutions provider CargoSmart in establishing the Global Shipping Business Network (GSBN), a new data-sharing entity aimed at supporting the industry s digitalization drive.
Companies and ports that have signed service agreements with Hong Kong-based CargoSmart include CMA CGM, COSCO SHIPPING LINES, COSCO SHIPPING Ports, Hapag-Lloyd, Hutchison Ports, OOCL, Port of Qingdao, PSA International and Shanghai International Port Group.
Under the contracts, each party has committed to provide resources to support preparatory work with the aim of establishing the GSBN not-for-profit joint venture. CargoSmart will provide software solutions and services to the GSBN once it is formed.
Upon its establishment, the JV would offer a platform for all shipping supply chain participants to collaborate on accelerating technology innovation and developing solutions through trusted and secure data exchange platforms.
While the current signatories are shipping lines and terminal operators, it is envisaged that other participants in the shipping industry may join the GSBN or otherwise benefit from the solutions it develops, CargoSmart explained.
As part of the preparatory work required to set up the GSBN, the signatories plan to establish data management and governance frameworks, including the principle that participants should retain control over their data being shared through the GSBN.
In addition, the JV will also consider and lead the development of a roadmap of use cases, data access APIs and applications.
The signatories of the GSBN services agreements plan to complete the establishment of the GSBN in early 2020, subject to obtaining all anti-trust, competition and regulatory approvals.
In the interim, as part of the process of preparing for the formation of the GSBN, CargoSmart said it would run pilot applications that test the viability of the GSBN and the potential for the JV to offer value to all supply chain participants.
Schottel, Ulstein Partner Up on Maritime Automation, Digitalization
Norway s Ulstein and Germany s Schottel have decided to start cooperating to take the next step in automation and digitalization within marine operations.
As informed, the duo will cooperate in a new company and focus on the development of intelligent systems for marine automation and digitalization.
The former Ulstein subsidiary, Ulstein Blue CTRL, will continue as an independent company under the name Blue CTRL. Both Ulstein and Schottel will own 50 percent of the shares in the company.
Deliveries from the company will be based on the X-CONNECT platform that has been developed by Ulstein for future marine automation since 2011.
X-CONNECT is a universal digital platform for marine automation, control and monitoring. All functionality in the system is predefined and configurable supporting the work philosophy - configure, plug and play.
Besides systems for newbuilding projects the new cooperation will also offer systems suitable for vessel upgrades.
"There are many similarities between our companies. We are both privately owned. This implies the possibility of long-term strategic business concepts. We believe that we have products which are highly complementary," Tore Ulstein, deputy CEO in Ulstein Group, explained.
"Seen from the designer s perspective, we believe that a closer integration between the development of the marine platform and the propulsion system will give far better operations of the vessel. If we manage to streamline more data between the different systems on board, we can optimise dynamic positioning and operations. This again will lead to reduced fuel consumption, reduced emission hence greener operations."
Schottel is already present on the vessel’s bridge with propulsion control systems. Propulsion controls together with the recent development of further assistance and positioning systems have always been a strategic focus for the company.
"We very much look forward to this cooperation in Blue CTRL and to start the common development of intelligent systems for marine automation and digitalisation," Stefan Kaul, President Industrial Operations & CEO in Schottel, said.
"The Blue CTRL systems will not only enable us to offer our customers smarter and integrated controls for both newbuilding and existing vessels, but also provide a solid system for the offering of hybrid and electric solutions," he added.
With its headquarters in Ulsteinvik, Ulstein focuses on products and services within ship design, shipbuilding and equipment packages.
Based in Spay/Rhine, Schottel manufactures propulsion and steering systems for ships and offshore applications.
British Ports Association Welcomes Clean Maritime Plan
The British Ports Association has welcomed the Government s Clean Maritime Plan, published today and launched by Maritime Minister Nusrat Ghani MP in London.
Commenting, Mark Simmonds, Head of Policy, at the British Ports Association said:
We welcome the Government s Clean Maritime Plan, which is a solid foundation on which the industry and Government must build. Industry will be responsible for delivering on the ambitions in this plan and the wider Net Zero targets. As the Plan rightly sets out, success will depend on long-term close collaboration.
The British Ports Association is ready to work closely with Government on these challenges. The UK has enjoyed a decades-long consensus that a market-led ports sector delivers world-class infrastructure and services to the international shipping industry which carries 95% of our trade. We believe that approach, in collaboration with Government, can be brought to bear to tackle humanity s greatest challenge. For many, there will be opportunities in tackling these issues.
Ports are already quite literally on the front line of climate change - dealing with rising sea levels and more extreme weather events and the ports industry will play a pivotal role in tackling these huge challenges.
We are pleased that one early commitment is for the Government to review the environmental and economic case for coastal shipping, which we believe has a role to play in taking lorries off UK streets and reducing emissions. We also note the forecasts in this document that set out some possibly enormous growth in demands for energy that may need to flow through ports, whether it be shore-side power or bunkering cleaner fuels and we relish the challenge of tackling these in the coming months and years.
The British Ports Association has worked closely with the Department for Transport and Defra on air emissions in the lead up to and publication of the Clean Air Plan last year and continues to advise on how Government can work with industry to deliver improvements.
Bengal port records country s highest sea level rise in 50 years
Of the major ports in India, Diamond Harbour in West Bengal located at the mouth of river Hooghly has recorded the maximum sea level increase, according to data tabled in the Lok Sabha by the Ministry of Earth Sciences.
While recent studies reveal that sea level rise in the country has been estimated to be 1.3 mm/year along India’s coasts during the last 40-50 years, at Diamond Harbour the rise was almost five times higher at 5.16 mm per year. The mean sea level rise for Diamond Harbour was based on recordings over the period from 1948 to 2005. This is followed by Kandla port in Gujarat where the sea level rise was 3.18 (1950 to 2005) , followed by Haldia in West Bengal, which recorded a sea level rise of 2.89 mm a year (1972 to 2005). Port Blair also recorded a sea level rise of 2.20 mm per year (1916-1964).
Sea level rise is said be linked with global warming and as per the fifth assessment report of the International Panel on Climate Change, the global sea level was rising at an average rate of 1.8 mm per year over the last century. Going by the data from the Ministry of Earth Sciences, four ports - Diamond Harbour, Kandla, Haldia and Port Blair - recorded a higher sea level rise than the global average. Chennai and Mumbai, recorded a sea level rise far below the global and the national averages at 0.33 mm per year (1916-2005) and 0.74 mm (1878-2005) respectively.
"Rising sea levels can exacerbate the impacts of coastal hazards such as storm surge, tsunami, coastal floods, high waves and coastal erosion in the low lying coastal areas in addition to causing gradual loss of coastal land to sea," the Ministry said in response to a question by MPs Saugata Roy and Anto Antony.
The sea level rise is higher in West Bengal, particularly in the Sunderbans delta is because of the deltaic sediment deposition as a result of the mixing of fresh water and saline water, according to experts.
In response to another question related to global warming by Lok Sabha MPs Shivkumar C. Udasi and Kanakmal Katara, the Ministry of Earth Sciences explained that global warming not only causes melting of ice and glaciers, but also leads to internal expansion of water in oceans and thus a rise in the sea level. On results of studies on the impact of global warning, the ministry said heavy rainfall and temperature extremes like heat waves and shifts in semi-arid regions were some of the recent findings which may have linkages with climate change and global warming.
“Studies over Indian region have shown a warming trend of 0.6°C on all India average basis, mainly contributed by maximum temperatures, the ministry said.
Growth expected for transportation sector despite crowded field
Maintain neutral: We are "neutral" on the transportation sector over the next 12 months. The prospects of airlines and airport operators are favourable, backed by tourist arrival growth projected at 8.8% to 28.1 million in 2019 by Tourism Malaysia. However, this is offset by cost pressure at AirAsia Group Bhd following the sale and leaseback of its aircraft. For seaport operators, we believe that no news is good news as any realignment of shipping alliances could result in a significant loss (or gain) in container throughput.
We believe Malaysia s tourist arrivals are on track to meet Tourism Malaysia s forecast. While tourist arrivals grew only 4.8% year-on-year to 11 million in the first five months of 2019, we expect the growth to accelerate for the rest of 2019 as Tourism Malaysia starts to roll out promotional efforts for Visit Malaysia Year 2020. Also helping to attract foreign tourists are a weak ringgit and warming Malaysia-China ties.
We also take comfort that the proposed departure levy (RM8 for Asean countries and up to RM150 for non-Asean countries, including different rates for different tiers) will now only take effect on Sept 1, 2019 (from June 1, 2019 previously). Also, increases in passenger service charge at the airports, coupled with aircraft landing and parking charges for the airlines, if they do happen, will only take effect in 2020 after the implementation of the new regulated asset base framework.
The positive outlook for Malaysia s tourist arrivals will be a tailwind to AirAsia s key strategy to aggressively grow its top line to mitigate the higher cost structure arising from its planes that are now largely leased versus owned previously. The recent weakness in crude oil prices is also positive for AirAsia as it will reduce its fuel bills. The airline s long-term prospects remain robust backed by its digital transformation and continual cost rationalisation.
We are generally positive on the outlook of Malaysian ports. We were pleasantly surprised by the strong numbers reported by the ports in the first quarter of 2019. This alleviates our concerns on the impact of the US-China trade-technology war over Malaysian ports activities. Depending on how the US-China trade-technology war pans out, Malaysian ports may even benefit from the trade diversion to Malaysia. Meanwhile, the ports are forging ahead with their expansion plans, including Westports Holdings Bhd’ new liquid bulk jetty and the expansion plans of Westports 2-10 new container terminals adding 30 million twenty-foot equivalent units handling capacity by 2040 - and Pelabuhan Tanjung Pelepas investment in new Triple-E cranes and development of autonomous driving terminal tractors (a joint venture with Terberg Tractors Malaysia).
The rapidly expanding e-commerce sector (projected at a compound annual growth rate of 14% in 2018-2022 according to Fitch Solutions, versus the government s target of 20%), particularly online shopping, has created huge opportunities for parcel delivery service providers such as Pos Malaysia Bhd. However, the sector is weighed down by overcrowding of participants (113 as at May 2019), resulting in cut-throat competition that drives most players into the red. In addition, service quality is an issue, particularly the inability of some players to cope with a sudden surge in volume (during promotional periods by e-commerce operators). We believe the sector is due for a major consolidation. We also believe that players should explore alternative ways to sharpen their competitive edge. Already, GD Express Carrier Bhd has partnered AirAsia’s logistics/technology unit Teleport to tap into AirAsia s aircraft belly space for express parcel delivery services.
We may upgrade our "neutral" stance on the transportation sector to "overweight" if: i) volume performance (such as passenger traffic, cargo throughput and mail parcel volume) beats expectations; ii) yields surprise on the upside on reduced competition; and iii) fuel cost (jet fuel for airlines and diesel for seaport operators) comes down on weaker crude oil prices.
Our top pick for the sector is Westports ("hold"; fair value: RM3.91). The seaport operator has returned to its growth path following the loss of a major customer during a major reshuffling of the global shipping alliances in 2017. A 13% tariff hike effective March 1 this year will help lift its margins and earnings.
Digitalisation of Portsmouth International Port
Portsmouth International Port is the second-largest cross-channel port in the UK, and offers more ferry routes than any other UK ferry port, serving popular destinations in France, Spain, and the Channel Islands. Two ferry companies transport 250,000 freight units through the terminal each year. Portsmouth International Port awarded to Hogia the contract to supply a terminal operating system to digitalise the management of freight transport through the terminal thereby increasing the terminal s efficiency.
Portsmouth International Port is using Hogia s terminal operating system as the first step towards digitalisation of the terminal operations.
Mike Sellers, Portsmouth International Port s director said: "Using Hogia’s terminal operating system (TOS) is the first step towards digitalisation for our terminal operations. It will make terminal operations more efficient, enable us to provide a higher quality of service for our customers, and provide a more competitive edge. Importantly it gives us more flexibility, paving the way for the future and securing the capacity we need to meet the growing demand for freight transport."
Hogia s TOS is a standard system that provides a shared platform for port staff and ferry operators, enabling the terminal operations to be managed digitally. TOS has an open interface and is easily integrated with third-party applications, such as the shipping companies own booking systems. The information held in TOS makes it easy to identify freight units arriving at the terminal gate and to assign the units to a known location on the terminal, the information being available, if desired, to both port operations staff as well as to the ferry operators.
Terminal Managers also benefit through the ability to generate detailed operational and management reports and statistics regarding many aspects of the terminal s operation.
"This is the start of a long-term partnership and we are looking forward to helping Portsmouth International Port to further expand the digitalisation of its port operations through creating automatic workflows, thereby increasing efficiency and throughput, enabling the Port to develop and grow its business", says Ulf Hille-Dahl, Sales Executive International Market at Hogia Logistics Systems AB.
Portsmouth International Port is a port and ferry terminal located in the city of Portsmouth on the south coast of England. It operates departures and arrivals for cruise ships, cargo ships and passenger ferries. It is widely known as Britain s Best Connected Port with more ferry routes than any other UK ferry port, serving popular destinations in France, Spain and the Channel Islands. The port handles more than 250,000 freight units each year.
Top US port for China ocean trade reports decline in June imports amid dispute
The Los Angeles and Long Beach port complex, the nation’s busiest and the No. 1 for ocean trade with China, handled 5.1% fewer inbound containers of cargo in June, as the trade standoff between Washington and Beijing disrupts global supply chains.
Imports to the smaller Port of Long Beach dropped 13.7% from June 2018, more than offsetting the 3.5% gain at the Port of Los Angeles, which processed 396,306.5 20-foot equivalent units, a standardized maritime measurement for counting cargo containers.
June was the second month of import declines at the sprawling facility, which is in the midst of what is typically the peak season for inbound shipments of goods earmarked for winter holiday sales.
Logistics companies ranging from ocean shippers to parcel delivery companies are bellwethers for the global economy. Many have warned that the global economy is cooling, due in part to trade tensions between the United States and China.
May s decline was largely due to China s Cosco Shipping s cutting volume at the Port of Long Beach, S&P Global Market Intelligence s trade data firm Panjiva said in a recent report. A spokesman for the Long Beach Port on Thursday said the facility saw similar shifts by cargo ships in June.
U.S. seaports booked record imports in 2018 after retailers rushed to bring in a swath of Chinese goods - including furniture, appliances and auto parts - before they were subject to new tariffs. Retailers stuffed warehouses to the rafters and are still working through that inventory.
The Trump administration escalated the trade conflict this May, announcing a tariff hike on $200 billion of Chinese products. China retaliated with tariffs on $60 billion of U.S. goods.
The United States has paused plans to hit China with tariffs on an additional $300 billion of goods while the two countries seek a trade deal.
"Retailers still want to protect their customers against potential price increases that would come with any additional tariffs, but with the latest proposed tariffs on hold for now and warehouses bulging, there s only so much they can do," said Jonathan Gold, the National Retail Federation’s vice president for supply chain and customs policy.
U.S. exports, which have been hard hit by China s retaliatory tariffs, fell 3.4% year-on-year in June, the two ports said.