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International Association of Marine and Shipping Professionls

NEWS BULLETIN 23 – 29 April 2018

The International Association of Marine and Shipping Professionals (IAMSP) is the

professional body for Marine and Shipping professionals world-wide, formed in 2015. The

association is an independent, non-political organization aims to:

Contribute to the promotion and protection of maritime activities of the shipping

industry, the study of their development opportunities and more generally everything

concerning these activities.

Promote the development of occupations related to maritime and shipping; serve as a

point of contact and effective term for the business relationship with the shipping industry

(charter brokers, traders, shipping agents, Marine surveyors, ship inspectors, ship-managers,

sailors, and stevedores etc.).

Ensuring the representation of its members to the institutions, national and

international organizations as well as with governments, communities and professional

groups while promoting the exchange of information, skills and the exchange of

experience.

Develop the partnership relations sponsorship, collaboration between IAMSP and

other associations, companies, national and international organizations involved in

activities related to Maritimes and shipping.

Contribute to the update and improvement of professional knowledge of its members

and raise their skill levels to international standards.

Progress towards a comprehensive and integrated view of all marine areas and the

activities and resources related to the sea.

About I.A.M.S.P

22/04/2018

Deferrals mean that new containership deliveries in 2018 will not damage the supply-demand balance.

More ships are needed to keep up with demand projections, according to Drewry‘s latest Container

Forecaster report.

Predicting containership fleet growth is probably the most contentious and hardest task for any forecaster.

The orderbook is constantly evolving as deliveries are made and new orders come in, while demolitions

and the occasional cancellation also reduce the pot. Furthermore, quite often the scheduled delivery date

does not match with the actual delivery date, making pinning down a baseline like trying to hammer a nail

in jelly.

According to different commenters, 2018 is either going to bring a tsunami of new capacity that will drown

the container market‘s nascent recovery, or newbuild deliveries will largely be manageable. The latter is

Drewry‘s opinion, as explained in more detail in the latest Container Forecaster.

Figure 1: Development of the unadjusted orderbook by scheduled delivery year ('000 teu)

Source: Drewry Maritime Research

Orders with a 2018 delivery schedule first appeared in early 2014 and since then the figure has swelled

with every new order and slippage from previous years (see Figure 1). The expected sum for 2018 reached

a peak in October 2017 when the unadjusted orderbook had 1.6 million teu slated. With slippage from

previous years added the expected total for the year was close to 1.8 million teu.

Knowing that the scheduled orderbook never matches reality (see Figure 2), Drewry includes forecasts for

slippage, scrapping and new orders to arrive at a ‗real world‘ estimate for fleet capacity over the next five

years. Even after said adjustments, such was the weight of the 2018 delivery schedule in October 2017 that

at the time we predicted supply growth would outpace demand, resulting in a lower reading to the Drewry

Global Supply-Demand Index.

INTERNATIONAL news

Container shipping: Over-capacity fears over-hyped

Figure 2: New containership delivery/slippage rates, 2015-17 ('000 teu)

Source: Drewry Maritime Research

However, since then the orderbook has undergone some subtle manoeuvres, which have had a positive

effect on our supply-demand equations. While the sum total of confirmed new capacity due to arrive

through 2022 hasn‘t much changed, the delivery breakdown by year has been significantly altered as a

consequence of owners delaying a number of deliveries.

This smoothing process means that as of 1 January 2018 the unadjusted orderbook schedule for 2018

shrunk by approximately 150,000 teu to stand at 1.46 million. Based on deliveries in 1Q18 and what is

scheduled for the remainder of the year as of 18 April, Drewry expects the full-year delivery total to be in

the region of 1 million to 1.2m teu. In essence, over the space of six months owners have pared back the

2018 total by as much as 600,000 teu.

Figure 3: New containership contracts and deliveries, 2005-1Q18 ('000 teu)

Source: Drewry Maritime Research

If our forecast is correct the annual delivery total for 2018 will be broadly unchanged from 2016 and 2017,

which marked a significant slowdown compared to the previous six years (see Figure 3). Crucially, the new

supply growth forecast for the current year is lower than demand, meaning we expect the global

supply-demand index to nudge upwards this year. The market will still be over-supplied, but not

catastrophically so, and certainly showing signs of improvement.

It is important to add that even though the global supply-demand index for the year is expected to be

higher, it will start off lower due to the top-heavy delivery schedule in 2018 (see Figure 4). The timing

could not have been worse for carriers as it created negative sentiment for the crucial annual Asia-Europe

and Transpacific contracting seasons.

Figure 4: Containership orderbook build schedule 2018 ('000 teu), April 2018

Source: Drewry Maritime Research

While we are anticipating a more benign overall supply scenario for 2018, it would be remiss not to

mention that pressures will still exist and vary in severity trade by trade as a consequence of the growing

share of Ultra Large Container Vessels (ULCVs) of 18,000 teu and above in the orderbook. ULCVs, with

their limited deployment options, made up just 5% of deliveries in 2013 in terms of teu, but have since

risen to one-third by 2017. Based on the current orderbook, the upwards trend will intensify over the next

few years (see Figure 5).

Looking further ahead, the low-level newbuild contracting of 2016-17 means that there is not much

scheduled for delivery post-2019, most of which comes from slippage caused by deferrals from earlier

years. Based on Drewry‘s current projections, there is a clear need for extra newbuilds for 2020 onwards to

satisfy the expected cargo growth.

For the record, were no new orders to be placed in the next few years the supply-demand index would

shoot into the stratosphere, hitting an unprecedented reading of 108 (100 equals supply-demand

equilibrium) in 2022.

Figure 5: ULCVs as a share of deliveries in teu by year

Note: Based on unadjusted orderbook as of 18 April 2018

Source: Drewry Maritime Research

Table 1: Top 5 owners taking delivery in 2018

Note: Based on unadjusted orderbook as of 18 April 2018

Source: Drewry Maritime Research

That won‘t happen of course and new orders, such as the pending mega-ship order from Hyundai Merchant

Marine, will eventually fill the void. At the moment, Drewry is of the opinion that new orders will be

appropriate to demand needs, thanks to a combination of financial constraints and greater capex discipline

brought about by M&A, although we recognise that there are major risks to that assumption, primarily

from state-backed entities that can play by their own rules.

Our view

The reality of supply growth in 2018 is far less frightening than it was previously. We expect new ordering

activity to rise off the floor but stay at a level that incrementally improves the supply-demand balance over

the next five years.

[Drewry Container Insight Weekly]

22/04/2018

As part of the government's large-scale rescue plan for shipping sector, the Export-Import Bank of Korea

(Korea Eximbank) sets a figure for loans and guarantees to the country's shipping sector.

According to Yonhap, Korea Eximbank will funnel more than 800 billion won ($749.3 million) in shipping

finance as a part of the state-sponsored program to revive the shipping industry following the collapse of

Korea‘s flag sea carrier Hanjin Shipping. The five-year plan for rehabilitating the maritime sector involves

the building of more than 200 ships, including 140 bulk carriers and 60 container ships.

The report quoted Eun Sung-soo, Korea Eximbank chairman and president saying that the fund will be

given in the forms of loans and guarantees that the shippers can use to purchase new vessels, refinance

existing debts and pay for operating expenses.

"The shipping and shipbuilding industries are both facing difficulties, raising the logistics cost for exporting

firms," Eun said at the meeting. "The five-year restructuring plan will strengthen the competitiveness of

shipping companies, and when this leads to a positive cycle of creating demand for shipbuilders, such cost

will be reduced."

The 800 billion-won aid will be provided for the purchasing of vessels, operational costs and loan

refinancing, Eun said.

[MarineLink]

21/04/2018

Autoridad Portuaria de València prevé poner en marcha un concurso público para comercializar la zona de

actividades logísticas (ZAL).

El presidente de la Autoridad Portuaria de València (APV), Aurelio Martínez, aseguró ayer que la

ampliación norte del recinto del Grao requerirá una inversión de 1.000 millones de euros, incluidas las

aportaciones económicas tanto del sector público como del privado. Al término del consejo de

administración, Martínez, afirmó que la APV prepara el pliego de condiciones para sacar a concurso la

licitación (que podría aprobarse este verano), en la que se baraja hacer una única concesión.

Mientras la Autoridad Portuaria busca posibles operadores marítimos que puedan acometer esta inversión a

cambio de la explotación de la futura terminal de contenedores, la consultora holandesa MTBS ya ha

terminado su proyecto de ampliación, que finalmente se hará en la parte norte de la dársena y tendrá un

muelle lineal de casi dos kilómetros de longitud para que puedan operar los grandes buque de contenedores

(con cargas superiores a los 25.000 TEU) que comenzarán a navegar por todo el mundo los próximos años.

Esta nueva terminal se diseña tras desplazar la de cruceros a las instalaciones del astillero Unión Naval

Valencia, que también tendrá línea de atraque para otros buques de pasajeros.

Shipping finance: South Korea’s Eximbank pledges huge loans

Desarrollo portuario España: Ampliación de València requiere inversión de 1.000 millones

de euros

Respecto a la zona de actividades logísticas (ZAL), Martínez aseguró que la comercialización de este

espacio se decidirá en concurso público «sin capacidad subjetiva de elección» por parte de los futuros

gestores de este recinto. También valoró el interés de COSCO - naviera estatal china que controla la

terminal de contenedores de Noatum - por potenciar la ZAL. Respecto al conflicto con expropietarios de

este suelo Martínez indicó que las negociaciones entre Consell y algunos afectados no paraliza las obras en

la zona logística, pues «la titularidad no está cuestionada».

El consejo de la APV dejó ayer sin resolver la solicitud de Noatum en su terminal de contenedores, donde

propone ampliar el plazo inicial de esta concesión. La compañía pidió el pasado verano ampliar el plazo

concesional hasta el año 2041.

[Levante]

21/04/2018

The Port of Rotterdam Authority has launched the first version of a digital application which, it claimed,

allows vessels calling on the Port of Rotterdam to reduce their waiting time by an average of 20% Pronto,

whose name refers to the port information standards as established by the International Taskforce on Port Call

Optimisation (of which the Port of Rotterdam is a member), is a platform for shipping companies, agents,

terminal operators and other service providers for the exchange of port call-related information.

According to the Port of Rotterdam Authority, the application combines public data, data from participating

companies and predictions created by artificial intelligence to maximise the accuracy of information given

related to a port call. This information is presented via a customised dashboard which lets the user filter the

data and zoom in on timelines of individual port calls.

In Pronto, when a vessel‘s estimated time of arrival becomes known, the ship is given its own timeline, which

specifies every activity that it will be involved in during its port call. The different events‘ status and progress

are continually updated in the dashboard, with users also able to program the application to automatically alert

them if there is a relevant status update or a change of plan.

Developing the software

The Port of Rotterdam Authority‘s chief financial officer, Paul Smits, said that the platform had been

extensively trialled across the last year during a development stage and that it will see further development and

new features in the near future.

He also explained that the port body will be making the application available to members of the Port of

Rotterdam community, for either a fee or data, and that it anticipates that an increasing number of terminals in

the port will begin using the platform, which will in turn boost the accuracy of its data.

―The application allows all users to optimally plan, execute and monitor activities throughout the entire port

call,‖ he said. ―This yields concrete benefits for all parties involved.‖

Ed Barsingerhorn, general manager for Shell Shipping & Maritime for Europe and Africa — with Shell being

one of the parties that took part in Pronto‘s pilot last year — said that the trial convinced them of the

platform‘s added value, and that they had lowered departing vessels‘ waiting time up to 20%.

Port development Netherlands: Rotterdam launches port call efficiency platform

―It is essential that all parties involved in the process, including terminal and agent, work closely together and

share relevant data,‖ he said. ―When we exchange time stamp data not only in Rotterdam but also between

ports, the improvement potential increases significantly.‖

[Port Strategy]

20/04/2018

The Antwerp port community has signed an implementation plan to make container barge transport more

efficient, featuring a roadmap of structural measures.

This follows difficulties in spring 2017 when growing freight volumes and larger vessel sizes calling at the

port led to peak load on the terminals, with longer waiting times for container barges as a result. The plan

supported by the terminals together with the barge operators, shipping companies, shippers, forwarders,

NxtPort, CEPA, the Flemish Government, Flemish Waterways, Alfaport-Voka (Chamber of Commerce) and

Antwerp Port Authority. All parties had signed a declaration of intent in July 2017 to promote container

barge transport in the port.

Port Authority CEO Jacques Vandermeiren said: ―The financial and operational investments to which all

parties committed themselves reflect the importance that the stakeholders attach to efficient transport of

goods by barge to and from the hinterland. ―This mode of transport is a crucial player in the economical,

sustainable and mobility-friendly model that the port of Antwerp aims for.‖

The agreements concentrate on three main areas: planning and collaboration, consolidation and digitisation.

Terminals have committed to provide minimum handling capacity for container barges while there will be

stricter scheduling agreements throughout the chain supported by a barge traffic system (BTS).

The three large terminals (PSA, MPET and DP World) are carrying out a large-scale trial to deal with barge

scheduling on a port-wide basis, which will simplify and streamline the entire scheduling process for all

parties.

This new initiative will first be tested in a pilot project (from September onwards), and if the results are

positive it will be continued thereafter. As of October, there will be a trial period during which the minimum

call size for barges will be 30 containers per call.

To help the barge industry make the transition to larger calls, the Flemish government and Antwerp Port

Authority have introduced a temporary package of operational and financial subsidies which will gradually

taper off.

NxtPort will develop and introduce various new digital applications, focusing on sharing information sooner

so that all parties can make gains in efficiency. Other peripheral factors for more efficient operation will be

examined in the short and medium term including having dedicated barge capacity at terminals.

[Container Management]

Port development Belgium: Antwerp creates action plan for container barge transport

:

20/04/2018

By Sanjana Shivdas

A U.S. national security review has raised concerns about a takeover by China‘s COSCO Shipping

Holdings Co of a large container terminal in Long Beach, California, the Wall Street Journal reported on

Friday.

The terminal is part of COSCO‘s planned $6.3 billion deal to buy shipping firm Orient Overseas

International Ltd (OOIL), the Journal reported, citing people familiar with the matter.

COSCO executives met with officials at the Committee on Foreign Investment in the United States

(CFIUS) this week and proposed to divest or carve out the Long Beach terminal to ease U.S. concerns

about the deal, the report said. A spokesperson for the Treasury Department, which oversees CFIUS

reviews, did not immediately reply to Reuters‘ request for comment.

The planned acquisition of Orient Overseas Container Line, OOIL‘s main subsidiary, is on track to be

completed by the end of June, COSCO Vice Chairman Huang Xiaowen said earlier this month.

[Reuters]

20/04/2018

By Karlis Salna

Indonesia‘s Fisheries Minister Susi Pudjiastuti deals with some dangerous men in her role, but they don‘t

rattle her. She has an equally intimidating weapon on her side: Google.

Partnering with the search engine firm, Pudjiastuti is catching illegal fishing activity in real time, after

thousands of vessels‘ locations were revealed online. In her mission to clean up an industry once the domain

of crooks, she‘s convinced powerful local operators with foreign interests to stop practices that were robbing

the economy of billions of dollars of revenue each year.

―You have money, you have power, you have the reach probably to make me fail or to even basically

eliminate me,‖ Pudjiastuti recalls telling the industry‘s so-called ―godfathers‖ in meetings shortly after joining

President Joko Widodo‘s government in 2014. ―But I also will not stop.‖

Terminal operators U.S.: Government questions COSCO's takeover of container terminal in

Long Beach

Oceans: Indonesia turns to Google in war on illegal fishing

The Indonesian Navy and the Ministry of Maritime Affairs and Fisheries blow up an illegal fishing vessel

near Tanjung Batumandi, Pangandaran, West Java, on March 14, 2016. Photo credit: REUTERS/Adeng

Bustomi/Antara Foto

After hunting down violators and blowing up their boats in public spectacles, Pudjiastuti‘s approach has

become more sophisticated. In a global first, the minister has teamed up with Google to use satellites to spot

illegal fishermen from space. It‘s paying off: Indonesia‘s fish stocks have more than doubled in two years,

and an industry plundered by foreigners for decades is once again contributing to economic growth, which

Widodo has pledged to boost to 7 percent.

Source: The University of Texas

In a sprawling archipelago of 17,000 islands, the potential is vast. While fishing currently accounts for just

2.6 percent of Indonesia‘s gross domestic product, that portion has grown about 40 percent since Pudjiastuti

started her role. At that time, there were some 10,000 foreign vessels fishing illegally in Indonesia‘s territory.

She says they‘re now all but gone.

Global pirates

But it‘s not game over for the minister: she says local boats are still working with ―global pirates‖ who catch

fish just outside the permitted zone, which are then shipped to foreign destinations. And that‘s where Google

comes in.

―They still steal from us. We see it on Google fishing watch,‖ Pudjiastuti said, referring to Global Fishing

Watch, an online mapping platform co-founded by Google. ―They use Indonesian-affiliated companies and

businesses and basically take their catch a few miles beyond the exclusive economic zone, where a

refrigerated mothership is waiting.‖

Indonesia last year became the first nation to share its Vessel Monitoring System information —

government-owned data used to monitor maritime traffic — with the global monitoring platform, founded by

Google, Oceana and SkyTruth, and funded by partners including the Leonardo DiCaprio Foundation and

Bloomberg Philanthropies.

Pudjiastuti‘s initiative instantly made nearly 5,000 previously invisible boats viewable. She has called for

other nations to follow her lead, with Peru last year committing to making its fishing data available.

Brian Sullivan, the manager of Google Ocean and Earth Outreach, said information from Indonesia‘s VMS

was fed through the same algorithm used by Global Fishing Watch to produce a new set of analytics. That

was then added to raw satellite imagery to produce an even more detailed footprint of fishing activities in

near-real time.

―Susi reached out to us and said ‘I like what you‘re working on, we‘d like to see how we could use that

information in Indonesia,‖ California-based Sullivan said in a telephone interview. ―She has been probably

one of the most progressive ministers within fisheries for taking something that historically all governments

had kept extremely close.‖

Watching you

By using machine learning and watching how a vessel moves, Google‘s technology is able to establish

patterns, and determine whether a vessel is in transit or fishing.

A study published last month found that foreign fishing in Indonesia dropped by more than 90 percent and

total fishing by 25 percent following the tough policies introduced by Pudjiastuti, which also included a ban

on all foreign-owned and -made boats from fishing in Indonesia and the restriction of transfers of fish at sea.

―We know what it looks like when a vessel is broadcasting because we see that vessel‘s position,‖ said

Sullivan. ―And if it then goes quiet for a while and then reappears on the other side of a marine-protected area

that would be considered suspicious activity.‖

Ship wrecker

With almost 34,000 miles of coastline to monitor, the minister and her partners have a big job. But it‘s not

just about economic gains and food security: it‘s also about sovereignty, an issue that plays well for the

domestic audience.

In 2016, Indonesia marked its Independence Day celebrations by sinking about 70 foreign fishing vessels,

mostly from Vietnam but also from China. It was an overt display aimed at sending a message: the nation

intended to protect its lucrative fishing grounds, including in the South China Sea.

Since the end of 2014, Pudjiastuti has sunk more than 350 boats.

―They take our resources. If we don‘t put an end to them they‘re going to come back and fish again,‖ she

said. ―And now I am screaming — I want to tell everybody ‗Be aware, they are moving to you‘.‖

[Bloomberg]

20/04/2018

By Lawrence Lau, Senior analyst

A decade has passed since the 2008 dry bulk freight rates began a long downturn which coincided with the

Financial Crisis and culminated with a historic low in January 2016. And while many are encouraged by the

rebound since then, a cursory look at the Baltic Dry Bulk Index (BDI) indicates how serious the collapse was

and how modest and fragile the recovery is.

Not only has the dry bulk market not returned to pre-collapse levels, it‘s struggling to maintain freight rates

last seen in the previous millennium. Consider that in 1999 the BDI averaged 1,338. While it managed to

breach the 1,500 mark briefly in late-2017, it is, for the most part, hovering below 1999 levels.

Rather than a recovery then, this seems more like ―a back to the future‖ scenario. Either way, dry bulk owners

and operators are just happy to be able to operate their businesses profitably.

So how does the bulk sector in 2018 really measure up to conditions in 1999? The numbers tell all: while the

total capacity of the global fleet of bulk ships has more than tripled from 264 million dwt to 817 million dwt

by Q1 2018, bulkers haven‘t been as productive, hauling less cargo. While they carried 8 to 9 tons of cargo

per deadweight ton (dwt) in the 1999-2008 decade, they handled only 6 to 8 mt of cargo per dwt since 2009.

Of course, seaborne bulk cargo has increased — from 2,185 million mt in 1999 to 5,096 million mt in 2017. It

just hasn‘t kept up with the growth in capacity. The prognosis is reflected in the figures: there are way too

many ships on the water.

Vastly improved technological efficiencies compounded by a significantly slower Chinese economy – not to

mention the unlikelihood of another China-sized economy rising anytime soon – all mean one thing: capacity

needs to disappear, lots of it. In fact, about 200 million dwt of capacity – 30% of the current operating fleet,

equal to 5,000, 40,000 dwt ships! – needs to vanish before we can achieve a ratio of seaborne cargo to

capacity last seen pre-2008.

Aggressive scrappage would seem like the simplest solution to contend with not only the existing capacity

surplus but also with the current newbuild orderbook, which stands at 10% of the existing fleet.

Dry bulk shipping: Freight market just treading water?

Shipowners also have to deal with higher bunker costs, which have increased from around $100/mt in 1999 to

$380/mt currently. Since owners have almost no control over the movement of bunker prices – and these are

expected to rise after the IMO 2020 regulations come into force, curbing emissions and lowering permitted

fuel sulfur levels – reducing capacity makes most sense.

It seems however that there‘s a limit to how much scrapping can realistically be achieved and that the limit

may have been reached. The average age of the global dry bulk fleet has already fallen to around 8.8 years,

from 14.2 years in 1999. Owners face losing out on investment returns should they retire vessels any younger.

Also, the dry bulk market is highly fragmented, with a wide variety of participants ranging from small

independent operators to large state-owned players. Differences in financial wherewithal and business

agendas mean that not all share the same sentiment and urgency with regard to balancing the market.

All in all, while the dry bulk market has experienced a positive turnaround in the last year, we are far from out

of the woods in view of the overcapacity in the market. We may not see a return to pre-2008 levels for many

years.

[Platts]

20/04/2018

By Karl Plume and P.J. Huffstutter

Several ships carrying cargoes of sorghum from the United States to China have changed course since

Beijing slapped hefty anti-dumping deposits on U.S. imports of the grain, trade sources and a Reuters

analysis of export and shipping data showed.

Sorghum is a niche animal feed and a tiny slice of the billions of dollars in exports at stake in the trade

dispute between the world‘s two largest economies, which threatens to disrupt the flow of everything from

steel to electronics.

The supply-chain pain felt by sorghum suppliers on the Pacific, Atlantic and Indian oceans underscores how

quickly the mounting trade tensions between the U.S. and China can impact the global agricultural sector,

which has been reeling from low commodity prices amid a global grains glut.

20 ships carrying over 1.2 million tonnes of U.S. sorghum are on the water, according to export inspections

data from the USDA‘s Federal Grain Inspection Service. Of the armada, valued at more than $216 million, at

least five changed course within hours of China‘s announcing tariffs on U.S. sorghum imports on Tuesday,

Reuters shipping data showed. The five shipments, all headed for China when they were loaded at Texas Gulf

Coast export terminals owned by grain merchants Cargill Inc or Archer Daniels Midland Co would be liable

for a hefty deposit to be paid on their value, which could make the loads unprofitable to deliver.

Beijing, which is probing U.S. imports for damage to its domestic industry, announced Tuesday that grains

handlers would have to put up a deposit of 178.6 percent of the value of the shipments.

Traders said Cargill and ADM likely sold most of the grain in the cargoes that are on the water, traders said.

In a statement to Reuters on Thursday, Cargill confirmed it is the exporter. The company declined to confirm

what is in the ships, the final destinations or the tonnage, nor name the customers. The company also declined

Dry bulk shipping: U.S. sorghum armada makes U-turn at sea after China tariffs

to confirm why the ships stopped, or if they are being re-directed – but said that it does not have any

responsibility for costs that may result.

The Panamanian-flagged ship called the N Bonanza, was churning its way northeast across the Indian Ocean

earlier this week, carrying more than 67,000 tonnes of sorghum from ADM‘s elevator in Corpus Christi,

Texas, according to Reuters shipping data. Eleven hours after the anti-dumping deposits were announced, the

ship stopped and then slowly tracked northwest.

The RB Eden, a vessel carrying 70,223 tonnes of sorghum loaded at the same ADM terminal, was headed

east-northeast through the Indian Ocean off the coast of South Africa. It turned around. Hours later, the

Stamford Eagle – hauling sorghum from Cargill‘s elevator in Houston – turned around off the western coast

of Mexico.

At least two other vessels have also suddenly changed course: the Ocean Belt and Xing Xi Hai, both loaded

at Cargill‘s terminal. It is unclear where the vessels are now heading. For now, at least, two of the world‘s

largest grain merchants are among those feeling the impact of the latest trade tussle with China, even if it is

just a short-term issue, said Bill Densmore, senior director of corporate ratings at Fitch Ratings.

―For their overall trade businesses, this is not that substantial. But it‘s a warning,‖ Densmore said. ―If China

really does start slapping tariffs on everything, like soybeans and corn, things could get really ugly, really

fast.‖

Searching for new buyers

Beijing‘s move has heaped more strain on an already tense trade relationship between the world‘s two largest

economies. Traders said the deposit was high enough to bring U.S. imports to a halt. Sorghum is used in

livestock feed and the fiery Chinese liquor baijiu. Indeed, the news had an immediate impact on the global

grains market: Bids for cargoes of Australian sorghum, which are not subject to the higher tariffs, spiked

following the announcement, traders said.

Industry sources in China said some of the cargoes might be redirected to Southeast Asian countries, such as

Vietnam and the Philippines, to feed hog and poultry plants owned by Chinese feed producers. However,

those countries and others in the region are small importers of sorghum. Vietnam has never imported U.S.

sorghum and the Philippines imported just 19,000 tonnes in the 2016/17 season, according to USDA data.

China, by contrast, imported more than 5.2 million tonnes last season, nearly 10 times more than No. 2

importer Japan, the data showed.

Shippers may have to discount the cargoes to sell them, analysts said. ―They‘re not in a strong bargaining

position considering they‘ve got shipments from across the ocean that they have to sell and get the boats

cleared out,‖ said economist Daniel O‘Brien of Kansas State University in the top U.S. sorghum-producing

state.

Sorghum prices at the Texas Gulf have slipped since China‘s announcement. At midweek, immediate

shipments from Corpus Christi were priced around $181.29 per tonne, not including shipping costs, a

one-month low.

The U.S. sorghum industry called for an end to the trade dispute and expressed concern about the impact on

established trade relationships that have taken years to build. ―This tit for tat has to stop and talks to find

reasonable and lasting solutions must begin, for the good of U.S. agriculture and the customers we have spent

decades working to win as loyal buyers,‖ said Tom Sleight, president and CEO of the U.S. Grains Council.

[Reuters]

20/04/2018

By Harry Weber

Cheniere Energy said Friday it had engaged more than two dozen banks and financial institutions to help it

finance a third liquefaction train at its Corpus Christi LNG export facility, and it expects to make a final

investment decision on the unit by the end of June.

The arranging and closing of financing reflects the last major step the company needs to complete prior to

making a formal decision whether to move forward with construction of the third production unit at the

terminal, spokesman Eben Burnham-Snyder said in an e-mail. Reaching FID in the first half of this year, as

Cheniere now says it is targeting, would be in line with timing a Cheniere executive had suggested during a

conference in Houston last month.

The first two trains are already being built, and the market believes Cheniere will build the third based on the

strong signals sent by the company after securing long-term agreements with buyers supporting about

two-thirds of the capacity of the unit.

While fears of a global LNG supply glut have eased, some US LNG export project developers have delayed

FID as they struggle to secure firm long-term contracts with buyers. There remains uncertainty about how

many of the second wave of US projects will get built, and at what level the current crop of projects will be

utilized toward the end of the decade.

Cheniere became the first US exporter of LNG produced from shale gas when its Sabine Pass terminal in

Louisiana shipped its initial cargo in February 2016. Dominion Energy was the second when its Cove Point

terminal in Maryland exported its first cargo in March.

In a statement, Cheniere said an affiliate has engaged the banks and financial institutions to assist in the

structuring and arranging of up to $6.4 billion of financing. The company's plan is to amend and upsize its

existing approximately $4.6 billion of credit lines to increase the available commitments and use the money

to fund a portion of the costs of building three trains at Corpus Christi and a related pipeline.

Bank of America, Bank of China, Goldman Sachs, JPMorgan Chase and Societe Generale are among the

financial institutions working with Cheniere on the financing.

In February, Cheniere said it had finalized two long-term supply deals with state-owned China National

Petroleum Corp. that would support Corpus Christi Train 3. Together with earlier deals with Portugal's EDP

and global commodity trader Trafigura, Cheniere has inked deals that would support about 2.97 million

mt/year of Train 3's capacity of 4.5 million mt/year.

That's 66% of the capacity, compared with the roughly 87% of capacity that Cheniere has contracted for its

other trains that are in operation or under construction at Sabine Pass and Corpus Christi. Cheniere has four

trains in operation at Sabine Pass and a fifth being built. It is looking to commercialize a sixth train there.

Oil & gas shipping U.S.: Cheniere advances financing plan to fund third unit at Texas LNG

export terminal

[Platts]

20/04/2018

By James Nevison

Venezuela has been a major player in global crude trade for years, accounting for an average of 5% of annual

seaborne crude exports over the past two decades. However, amidst an escalating economic crisis, crude

output and exports from the country fell notably in 2H 2017. With output decline projected to continue, it

seems to be a case of not if crude exports will fall this year, but by how much?

Slipping lower

In 2017, Venezuela was the world‘s ninth largest crude exporter, shipping 1.6m bpd of crude - equal to 4% of

seaborne crude exports. However, the country‘s crude output has been steadily declining for the past decade,

falling from 2.8m bpd in 2008 to 2.0m bpd in 2017. This fall largely arose due to long-term financial and

technical mismanagement within state oil company PDVSA, but issues worsened after the oil price crash in

2014, which sparked severe cash flow problems due to the country‘s reliance on oil revenue. Despite the

continued fall in output, crude exports initially held relatively steady.

However, last year, this began to change.

Caracas starts to crack

Against the backdrop of intensifying economic crisis, Venezuelan crude output fell 12% in 2017 to 2.0m bpd,

the lowest level in almost 30 years. The decline largely took hold in 2H 2017, and by December output stood

at just 1.6m bpd. Cash shortages meant that PDVSA struggled to buy the diluents needed to produce and ship

heavy crude, a situation further exacerbated by the country‘s selective default on its sovereign debts in

November. As a result, crude exports took a notable hit, and by December were down 36% y-o-y to just 1.1m

bpd. The fall in shipments was not evenly distributed between buyers. Exports to the US and India

(Venezuela‘s only two significant cash-generating markets) each fell over 50% y-o-y in December.

Meanwhile, exports to China actually rose over 20% y-o-y in the month, but, significantly, shipments to

China are now largely part of oil-for-loan deals that generate no income.

Oil & gas shipping Venezuela: Crude exports on a downward spiral?

The only way is down?

The decline in output has continued in 2018 so far, with production in March falling to 1.5m bpd. The

situation has had tangible impacts on the oil market; overall compliance with the OPEC-led supply cut deal

hit 163% in March, but had Venezuelan output held at its allocated level, this figure would have stood at

around 120%, meaning Venezuela likely contributed significantly to the recent tightening of global oil

supplies. Similarly, exports are expected to continue to fall, with the projected 0.5m bpd drop in Venezuelan

shipments in 2018 providing a notable counterbalance to the projected 0.7m bpd rise in US crude exports,

moderating the projection for global seaborne crude trade growth in 2018 to around 3%. With further US

sanctions or PDVSA entering full default both possible, the outlook could deteriorate during the year.

So, with oil revenue central to the Venezuelan economy, the recent fall in exports looks to be perpetuating a

vicious cycle. Some have reported that output could fall to 1m bpd by end 2018, a collapse that would be

unprecedented in a country not at war. Even in the best-case scenario, it seems all but certain that Venezuela

will continue to be a significant downside risk to global oil supply and exports this year.

[Clarksons Research]

20/04/2018

Germany's new government plans to add LNG infrastructure with the planned import terminal at Brunsbüttel

the most likely project as the cleaner fuel will become key to reducing shipping emissions, the economy and

energy ministry said in a statement.

Germany's new maritime policy coordinator Norbert Brackmann and the state minister for

Schleswig-Holstein Daniel Guenther will visit the GATE LNG terminal in Rotterdam Thursday, it said.

GATE project partners Gasunie and Vopak also plan to develop a 5 Bcm/year LNG import facility at

Brunsbüttel in the state of Schleswig-Holstein.

Oil & Gas shipping Germany: Government confirms plan for LNG import terminal at Brunsbüttel

According to the ministry's statement, the visit is the first step for the next concrete measures for the

realization of the project. "We want to make Germany a location for LNG infrastructure," the statement said,

adding that LNG will play a central role on the way to a ‗green shipping'.

Last week, a key committee of the International Maritime Organization (IMO) agreed a strategy to cut the

shipping industry's total greenhouse gas emissions by 50% from 2008 levels by 2050.

The German LNG Terminal project partners are currently sounding out market interest in a so-called 'open

season' until the end of April and plan to take an investment decision on the project in 2019, depending on the

results of the open season. The start of operations would be envisaged by end-2022, when Germany also

plans to exit nuclear power generation.

The ministry's statement added that once there is an established business case by the project developers, talks

about the realization will start. Plans to add LNG infrastructure in Germany were a surprise inclusion in the

coalition treaty in February. The Brunsbüttel project is also included in the federal gas grid development

plan, which secures a link to the national grid.

Germany is the EU's biggest gas market, but previous plans to build an LNG import terminal fell by the

wayside due to uncertainty over future gas demand and the high cost of building a permanent LNG terminal.

The Eur400 million ($500 million) facility would give the country an alternative gas supply to pipeline

imports from Russia and Norway

[Platts]

20/04/2018

By Vera Eckert

German container carrier Hapag-Lloyd plans a 20% reduction in its carbon dioxide (CO2) emissions by

2020, compared with 2016, to help support a drive to halve emissions in the global shipping industry.

Transport has been a laggard among efforts by industry to agree emissions cuts, with shipping and aviation

not part of a global climate pact reached in Paris in 2015. But the International Maritime Organization

(IMO), the U.N. agency responsible for regulating pollution from ships, this month reached a deal to cut

CO2 by 2050 from 2008 levels.

Hapag-Lloyd, the world‘s number five container company, said in a statement on Sunday it had already cut

the CO2 emissions of its fleet by 46% between 2007 and 2016. ―What matters now is for all market players

to pull together in the same direction,‖ said Chief Executive Rolf Habben Jansen.

[Reuters]

20/04/2018

Shipping emissions: Hapag-Lloyd plans 20% cut in CO2 emissions by 2020

Shipping emissions Norway: Hurtigruten goes hybrid-electric

By Thomas Nilsen

At least six vessels to get new gas-powered engines supported by batteries. Environmentalists call for other

Arctic cruise-liner to follow.

«Polarlys» is one of Hurtigruten's vessels to change engine at port in Kirkenes. Photo: Thomas Nilsen

«This is an investment for the future and a historic day for us, the environment and for the coast of Norway.

The combination of batteries and the most environmental friendly and efficient gas-powered engines on the

market result in a much better environmental footprint,» says Daniel Skjeldam, CEO of Hurtigruten.

The new engines running on liquid natural gas (LNG) are developed by Rolls-Royce Marine. The deal

signed with Rolls-Royce Marine on Friday includes six of Hurtigruten‘s current vessels with an option of

doing the same shift with three additional vessels. Today, the vessels have engines running on diesel.

Shifting from diesel to hybrid-battery power is to be completed by 2021 and concerns the ships sailing

along the coast of Norway from Bergen to Kirkenes. Today, Hurtigruten sails daily voyages on the route

along the coast of Norway bringing both passengers and cargo to the coastal communities.

Hurtigruten has two new vessels under construction, the «Roald Amundsen» and «Fridtjof Nansen» that

will run on hybrid-power. Those two ships will sail expedition cruises to Arctic waters like Svalbard and

Greenland. Next summer, Hurtigruten sails two voyages to Russia‘s Franz Josef Land via the port of

Murmansk.

Reduces emissions

Clean Arctic Alliance is a campaign network working for protecting the Arctic from hazards and risks

posed by the use of heavy fuel oil in shipping.

«Introducing hybrid-electric propulsion for Arctic cruise ships will help reduce a range of damaging

emissions, including black carbon and CO2, as well as eliminating the risk of oil spills», says Dr Sian Prior,

Lead Advisor to the Clean Arctic Alliance in an e-mail to the Barents Observer. She says what now

happens in Norway and the Arctic should have impact on other waters as well.

«Bold steps being taken by companies like Hurtigruten to champion a ban on heavy fuel oil use in the

Arctic and promoting alternative sources of energy will help drive zero emission future for shipping, not

just in the Arctic, but throughout the world‘s oceans,» Dr Prior says.

«Other cruise-liner should follow»

One of the member groups in the Clean Arctic Alliance is Bellona who cooperates with Hurtigruten on

ways to reduce emissions. «Hurtigruten‘s investments shows the new roadmap for better environmental

friendly shipping,» says Sigurd Enge with the environmental group Bellona to the Barents Observer. «By

choosing best technology and fuel, the environmental results are real improvements.»

Enge is especially glad this initiative comes from a cruise liner that sails in Arctic waters. «The

International Maritime Organization (IMO) prepares for a ban on heavy fuel oil in the Arctic from 2021.

Reducing black carbon is one of the important arguments in the new rules, and the use of LNG eliminate

that problem,» Sigurd Enge explains.

Enge also calls on other operators of cruise ships in the Arctic to shift from diesel to gas and batteries.

Daniel Skjeldam underlines the importance of preserving the environment in the waters where Hurtigruten

sails. «We are looking forward to sail on gas and batteries along the coast of Norway,» he says.

[The Barents Observer]

20/04/2018

By Ahmad Ghaddar and Libby George

Shipping industry hopes that so-called sulphur scrubbers are a quick-fix solution to compliance with drastic

emissions reduction demanded by 2020 are somewhat misguided, one of the world‘s biggest manufacturers

of the equipment told Reuters.

The International Maritime Organization‘s (IMO) cut to the amount of sulphur the world‘s fleet can emit

will have massive implications for shippers, oil refiners and even crude oil producers.

Scrubbers that strip sulphur as fuels are burned allows ships to continue using high-sulphur fuel oil, and

Finland‘s Wartsila Marine Solutions is taking in record orders as the 2020 deadline draws nearer. However,

Sigurd Jenssen, the company‘s director of exhaust gas cleaning, said that while the equipment has a major

part to play, there is ―no silver bullet‖ to ensure the deadline is met.

―You can‘t equip 20,000, 30,000, 40,000 ships … in one year,‖ he said.

Wartsila installed 70-80 scrubbers last year, accounting for about a third of the market, and Jenssen said

that fitting 2,000-3,000 ships with scrubbers by 2020 is ―doable‖. But with a global fleet of about 60,000

vessels travelling international routes, according to brokers Alphatanker, a large number will have to turn

to cleaner fuels.

The International Energy Agency (IEA) said on Wednesday that there has not been enough investment in

scrubbers and it is worried about the market‘s ability to meet demand for the low-sulphur marine fuel that

will be needed by ships without scrubbers.

The IMO rules cut the maximum amount of sulphur emissions to 0.5 percent from 3.5 percent, meaning

that ships without scrubbers have to burn lower-sulphur fuels such as marine gasoil or ultra-low-sulphur

fuel oil. Experts say this will cut fuel oil demand by anywhere from 1.7 million barrels per day (bpd) to 3.5

Shipping emissions: Scrubbers are “no silver bullet” for shipping industry

million bpd.

Jenssen said that 60 percent of new-build ships in Korea, a major ship-building hub, were fitted with

scrubbers last year and that the market to retrofit existing vessels is ―picking up quite rapidly‖. But at a cost

of between 1 million euros and 5 million euros ($1.23 million to $7.38 million) for the equipment alone,

Jenssen said some ship owners are holding back. ―A lot of smaller players with less-strong balance sheets

… want to wait to see how the fuel market is moving as well,‖ he said.

Fitting a scrubber can take as little as 10-20 days but a bespoke engineering plan is also required and the

entire process can take up to a year. ―The lead time on the equipment is somewhere between 7-9 months.

But before you get to the point of ordering there‘s some investigations and work to be done that can easily

take a couple (more) months,‖ Jenssen said. As demand increases, that time frame could get longer, he

added.

[Reuters]

20/04/2018

The shipping industry and oil refineries are not doing enough to prepare for new rules cutting the amount

of sulfur that vessels can emit from 2020, according to the head of the International Energy Agency‘s

(IEA) oil industry and market division.

The new rules drastically cut the amount of sulfur that the world‘s ships can emit, from 3.5 percent

currently to just 0.5 percent. Ships that install ―scrubbers‖ that remove sulfur as the fuel is burned can

continue to use higher sulfur fuels, but the rest of the world‘s fleet will need to purchase lower sulfur fuel

in order to comply.

―The reality is that the industry has already passed the date beyond the smooth transition,‖ the IEA‘s Neil

Atkinson, told an energy seminar in Oslo. ―We don‘t think it‘s going to be a smooth transition.‖

The change is the most significant for the global shipping and refining sectors in decades, and experts and

analysts expect it to reduce fuel oil demand by 2-3.5 million barrels per day (bpd) as a result. Atkinson said

that there has not been enough investment in scrubbers, and that the IEA is worried about the market‘s

ability to meet demand for the low sulfur marine fuel that ships without scrubbers will need.

―There will be a scramble for new compliant fuel… it could be a huge issue in terms of a spike in prices for

marine fuel and a very, very disruptive market, and that‘s only 18 months away,‖ he said.

While some refineries have announced investments in new pieces of equipment to strip sulfur from the fuel

they produce, enabling them to supply more compliant fuels, analysts at KBC said that some 40 percent of

Middle Eastern and European oil refineries are not ready for the new rules.

Experts have said the deadline is now too close for new upgrades to be ready in time. ―There is going to be

a huge disruption in the shipping markets, particularly in those markets where (there) is rigorous

enforcement,‖ Atkinson said.

[Reuters]

Shipping emissions: Huge disruptions coming with 2020 low-sulfur shipping rule

20/04/2018

By Martyn Wingrove

One ferry has sunk, two ships collided and a container ship grounded in southeast Asia, providing salvage

opportunities to local companies. Local reports said one person was missing after an unnamed passenger

ship sank in waters off Pedra Branca island, near the Singapore Strait.

It was carrying 106 people at the time including 102 passengers and four seafarers. Of these 103 people

were safely transferred to an Indonesian marine police vessel, four of five people that fell overboard were

also rescued. The ship, thought to be a local ferry, was transiting from Bandar Penawar, Johor, Malaysia, to

Bintan, Riau Islands, Indonesia when it sank. It is not known the cause of the sinking,

Also near Singapore, an Aframax product tanker and gas tanker collided causing damage, cargo release and

emergency towage. Greek-flagged tanker Astro Saturn and Singapore-flagged very large gas carrier,

Crystal Sunrise collided one mile south of Tuas Extension.

According to Vesseltracker, Crystal Sunrise was chartered to Japanese LPG company Gyxis and

2003-built, 105,167 dwt Astro Saturn was chartered by European trading house Trafigura and was carrying

fuel oil when the accident occurred on 16 April.

Kumiai Navigation‘s Crystal Sunrise was picking up a pilot when the accident happened, which caused

damage to a ballast tank and a leak from a gas cargo tank, which was contained and patched. Astro Saturn

suffered portside bow damage and lost an anchor. After the accident, Pantheon Tankers-owned Astro

Saturn was brought to anchor in Malaysian waters off Pulau Kukup and Crystal Sunrise was anchored for

near the collision site before resumed to a port for inspection.

In the Philippines, Singapore registered container ship NYK Joanna ran into a coral reef in Subic Bay on 19

April. According to Fleetmon, it was leaving Subic Bay bound for Manila when it swerved to avoid a

fishing vessel.

Tugs in Subic Bay refloated 2009-built and 27,003 gt, NYK Joanna and the Philippine Coast Guard found

some damage but no fuel leakage. On 20 April it was moored at anchorage in Subic Bay awaiting

inspection.

Meanwhile, a salvage project in Fiji involving removal of a 200gt fishing vessel from a reef should get

underway this month. Fiji Ports Corp has contracted a salvage company to refloat Lu Rong Yuan Yu 168.

This vessel ran aground on 12 April and a removal notice was issued on 13 April. Fiji Ports has been

liaising with the Maritime Safety Authority of Fiji, South Sea Towage, vessel owner and agent to contain

and recover fuel oil and remove the vessel from the reef.

[Tug Technology & Business]

20/04/2018

Kenya has picked Japanese Toyo Construction Co. Ltd. for a 32 billion-shilling ($319 million) Mombasa

port container-terminal expansion project that starts in May.

Maritime safety: Ferry sinks, two tankers collide and a container liner grounds

Port development Kenya: Toyo Construction selected for $319 million Mombasa container

terminal expansion

Construction will be complete in 38 months and will increase capacity by 450,000 TEU, according to

Kenya Ports Authority‘s spokesman, Hajj Masemo. The first expansion phase added 550,000 TEU for 28

billion shillings and the third phase of 500,000 TEU will increase capacity to a total 2.6 million TEUs.

The port modernization and expansion project is partly funded by the Japan International Cooperation

Agency.

[Bloomberg]

20/04/2018

By Angus Berwick and Renee Maltezou

European Union and Italian authorities are investigating suspected wide-scale tax fraud by Chinese criminal

gangs importing goods via Greece‘s largest port of Piraeus, a trade gateway between China and Europe,

officials said.

―The VAT is completely evaded, with enormous damage to the national tax authorities and to the

community,‖ Fabio Botto, of the Italian Central Anti-fraud Office‘s special investigative unit, said in an

interview. He said the suspected scam at Piraeus, part of China‘s vast Belt and Road infrastructure project,

had cost Italy tens of millions of euros in unpaid value-added taxes (VAT), though the total could be far

higher as the investigation was not over.

The European Anti-Fraud Office (OLAF) confirmed it was working with Italy on the investigation but

declined to give details, citing confidentiality. Botto said his agency had evidence that Chinese-owned firms

run by the criminal groups were fraudulently avoiding import duties and VAT on large shipments of goods

through Piraeus. The groups import goods, often counterfeit clothing and footwear, and massively

understate their value to EU customs to avoid import duties, he said. They also lie about the firms that

receive the goods, enabling them to avoid VAT.

Greece‘s Financial Crime Unit is conducting a separate investigation into a suspected tax fraud case

involving Chinese goods imported via Pireaus. The Greek unit has had little contact with Italian and EU

authorities and has not been informed about the wider investigation, an official there said.

China‘s state-owned COSCO Shipping has majority-owned Piraeus since 2016. China wants to transform

the port into its ―gateway to Europe‖ under the $126 billion Belt and Road initiative, which envisions a new

―Silk Road‖ of land and sea routes with trading partners.

Botto and the Greek official said neither investigation had evidence of any wrongdoing by Piraeus port

authorities. COSCO owns a majority stake in the Piraeus Port Authority (PPA), which manages one

container terminal, and a wholly-owned COSCO subsidiary owns and manages two other terminals.

COSCO said: ―The company has in its global operations consistently and strictly followed local and

international laws and persevered to operate legally and compliantly‖.

PPA said it had not received any information about criminal groups using the port and it would alert

authorities if it did. It said it took all necessary measures to ensure that goods had customs supervision.

―(PPA) is under no circumstances responsible for conducting checks for illegal activities,‖ PPA said in a

statement.

OLAF and national authorities in recent years have clamped down on customs loopholes used by Chinese

smugglers, whose tax scams they estimate cost the EU billions of euros a year. Italy began investigating the

Port development Greece: EU suspects tax fraud at China’s new gateway to Europe

Piraeus case in late 2017 after seizing falsified invoices at customs offices, Botto said. Reuters has not seen

this evidence and Botto declined to name the suspect firms as the investigation is ongoing.

Piraeus has become a major new entry point, Botto said, as northern ports have tightened controls and

Piraeus‘s import capacity has leapt six-fold under COSCO. ―We are investigating the new routes

developing with the Belt and Road project. Currently the predominantly beaten path appears to be through

Piraeus,‖ he said.

[Reuters]

20/04/2018

By James Baker and Abdul Hadhi

French container line CMA CGM is expanding its presence in logistics by acquiring a 25% stake in

Netherlands-based operator CEVA Logistics.

CMA CGM, the world‘s third-largest carrier by capacity, has committed to subscribe for mandatory

convertible securities of CEVA for an estimated cost of SFr380m-SFr450m ($390m-$410m). These will be

convertible to CEVA shares, subject to regulatory approval. The investment coincides with CEVA‘s initial

public offering on the Swiss exchange, which was also announced today. On completion of the deal, CMA

CGM will take two seats on CEVA‘s board of directors.

CMA CGM said CEVA was the world‘s fifth-largest player in contract logistics and was ranked 10th in the

world in freight forwarding, with a strong presence in Asia. ―With this proposed investment in CEVA,

CMA CGM makes a significant move, in line with its development strategy,‖ said CMA CGM chief

executive Rodolphe Saadé. CMA CGM already has its own logistics operation through CMA CGM Log,

which handles around 450,000 teu annually.

The move comes as a number of container carriers are making similar steps to get closer to their customers

by moving further down the supply chain. Maersk has been the most notable to date, having restructured

the company to focus solely on container transport and logistics.

CEVA said that in addition to CMA CGM‘s investment in CEVA, both companies planned to work

together to expand their commercial co-operation and to develop complementary services that address the

increasing customer need for integrated end-to-end solutions and one-stop shop providers.

CEVA was formed in 2007 from the merger of TNT Logistics and Eagle Global Logistics. Its majority

shareholders are financial institutions Capital Research and Management, Franklin Advisers and Apollo

Global Management. It had revenues of $7bn in 2017.

[Lloyd‘s Loading List]

19/04/2018

The World Container Index assessed by Drewry, a composite of container freight rates on 8 major routes

to/from the US, Europe and Asia, is down by 1.1% to $1179/40ft container.

Two-year spot freight rate trend for the World Container Index:

Container shipping: CMA CGM to take 25% stake in CEVA Logistics

Container shipping: World Container Index - 19 Apr 2018

World Container Index: Detailed assessment for Thursday, 19 April 2018

The composite index is down by 1.1% this week and down by 18.7% from the same period of 2017.

• The average composite index of the WCI, assessed by Drewry for year-to-date, is US $1,374/40ft

container, which is $83 lower than the five-year average of $1,457/40ft container.

• Transatlantic headhaul rate to New York stabilised from a drop of $136 last week, by gaining $143 to

reach $2,007 per feu. Rates from Shanghai to Genoa plummeted – a change of $145 – to reach $1,098 per

40ft. Similarly, rates from Shanghai to Rotterdam fell by $34 for a 40ft box to $1,155. Meanwhile, rates on

Shanghai-Los Angeles inched up by $30 to reach $1,210 per feu this week, and rates on Shanghai-New

York rose to $2,398 per feu. Drewry expects the rates to soften next week.

Spot freight rates by route - assessed by Drewry

[Drewry]

19/04/2018

According to the Shanghai International Shipping Institute (SISI), global container throughout rose 6% to

740M TEU in 2017.

In its Global Port Development Report (2017) the Institute noted container traffic ―constantly picked up

under the impact of the recovering global economy and trade environment‖ in 2017, and despite the threat

of a trade war with the US it forecasts growth will continue in 2018.

―It is estimated that, boosted by the active international commodity trade and consumption market, the

container throughput of global ports will maintain a strong growing momentum in 2018. In particular, with

adjustment in business modes such as cross-border e-commerce and cross-border online shopping, and with

transformation in transport modes such as "bulk-to-containerized cargo", the container throughput growth

at global ports will still be better than the cargo throughput‖.

The Institute also noted, as other commentators have that transhipment is expected to decline: ―more cargo

will go through direct routes to ensure timeliness and efficiency of transportation, so the number of

transshipped containers at ports will keep decreasing, and the proportion of empty containers will increase.

China‘s ports again showed the strongest growth, particularly its ―ports above a designated scale‖ which

saw throughput increase 9.%. Shanghai was up 8.2% to just over 40M TEU, while Ningbo-Zhoushan Port

and Guangzhou Port grew 14.2% and 8.2%, respectively.

Ports in South East Asia did not fare so well, registering a throughput increase of 3%, with Singapore the

notable exception with an 8.2% increase. European ports were up 5%, while US ports grew 7.4% and

African ports 5.6%.

Container shipping: Global port throughput hits 740 million TEU

Global top 20 ports by container throughput in 2017 [in 10‟000 TEU]

Source: Shanghai International Shipping Institute

[WorldCargo News]

19/04/2018

By Peter Sand

The shipping of soya beans from the US to China is one of the most significant ‗one commodity‘ cargoes

that may become affected by the trade war between the US and China.

Soya bean trade lanes will be affected if the Chinese buyers shy away their traditional suppliers because of

the extra cost from the proposed tariff on US soya beans. A move that may favour Brazilian ones further,

which also hold a higher protein content.

As US soya bean exports are currently out of season, the first indication of the effect will be an indirect

one, as the Brazilian soya bean exports‘ season is just about to lift off, peaking in May-July.

BIMCO‘s Chief Shipping Analyst Peter Sand comments: ―The uncertainty in the shipping market has

already been felt. Anecdotal evidence of fewer US gulf cargoes heading for China is an indicator of this.

Changes in pricing of soya beans is another effect already seen.

Dry bulk shipping: Soya bean trade lanes may change due to the ongoing trade war

In terms of volume, the coming months will show us exactly how much Brazil can further ramp up its

exports to China. Brazil is already the leading provider of soya beans to China, but unable to become a full

substitute for US exports this year.‖

“Clash of the titans”

China is the world‘s largest consumer and importer of uncrushed soya beans; the US is the largest producer

and Brazil is the largest exporter. In 2017, the dry bulk shipping industry transported 51 million tonnes of

soya beans at an approximate distance of 11,000 nautical miles from Brazil to China.

During the same year the US exported 33 million tonnes, as it lost a bit of its share in the Chinese market.

China established stricter import standards from 1 January 2018 which started to bite the US during

Q4-2017. That also meant that shipping of in soya beans between the two countries was down by 18% (2

million tonnes) in first two months of 2018.

Over the past two decades, one nation only, China, has increased its appetite for soya beans to any

meaningful extent.

Is it desirable for Brazil to close the Chinese „import gap‟?

Should China decide to enact the import tariff on US soya beans, the relevant question becomes: To what

extent can, and will, Brazil step in to make it up for US exports? The answer to that is: anywhere between

0% and 82%, probably depending on the price.

Brazil is expected to achieve a harvest that is almost as good as the record seen in the previous marketing

year 2016/2017. That means the export potential is just as high, leaving changes to any stock piles out of

the equation.

In 2017, Brazil exported 27 million tonnes to other countries than China. In theory, that means Brazil could

cover 82% of the imports China used to source from the US. Subsequently, that would require, the US to

take over the Brazilian market share anywhere else in the world. We deem that is not a desirable position

for the Brazilians to bring themselves into, having one giant costumer only to serve.

Bottomline is that China needs the soya to feed farmed animals: poultry, pigs and fish – which cannot

starve because of a trade war. Meat from these animals has grown increasingly popular as the Chinese

population has prospered.

Though not preferred by the Chinese importers, taking soya bean meal (soya beans crushed before exports)

may serve as an interim substitute to close any ‗import gap‘.

Seasonality gives guidance to impact on shipping

Brazilian exports take place throughout the year, but 80% of it is shipped in Panamax and Supramax ships

during the months of April through to September. This is an exact opposite to the US exporters who ship

80% of their soya beans from November through March.

―For the shipping industry, traders, exporters and importers this delayed impact gives leeway for them to

adjust their business to a ‗new reality‘ in due time before the real effects of a trade war involving global

shipping of soya beans is felt. Let‘s hope that it will not be carried out, as a trade war is harmful to

everyone‖, Peter Sand concludes.

[BIMCO]

19/04/2018

Abu Dhabi Ports in the United Arab Emirates and Jiangsu Provincial Overseas Cooperation and Investment

Co. Ltd. (JOCIC) of China said 15 Chinese companies have signed agreements to invest about $1 billion in

the Khalifa Port Free Trade Zone.

Specifically, JOCIC will develop 2.2 square kilometers (nearly a square mile) of the foreign trade zone for

companies from the Chinese province of Jiangsu. The area, called the China-UAE Industrial Capacity

Cooperation Industrial Park, is part of the Khalifa Port FTZ and can be expanded up to 12.2 square

kilometers.

The Chinese companies investing in KPFTZ come from the construction, metals, chemicals, trade and

logistics, packaging, and food and beverage sectors. Nantong Suzhong Construction Co. Ltd., Lianyungang

Anlun Oilfield Chemicals Co. Ltd. and Jiangsu Dafeng Port Holding Group, for example, will inject $47

million into the FTZ, considered the largest in the Middle East.

[American Shipper]

19/04/2018

Port development UAE: Chinese firms investing $1 billion in Khalifa Port FTZ

Shipping emissions: Up to 44% of shipowners considering LNG power for newbuilds

By Marcus Hand

As many as 44% of shipowners are considering liquefied natural gas (LNG) for propulsion on their

newbuildings according to SMM Maritime Industry Report.

LNG is one of the possible ways to comply with the global 0.5% sulphur cap for marine fuel from 1

January 2020. The IMO has made it clear that there will be no delay to the enforcement of the regulation

and secretary-general Kitack Lim has stated: ―There is no turning back. The lower sulphur limit will have a

significant positive impact on the environment and on human health, especially for people living in port

cities and coastal regions.‖

The switch to LNG, which will also reduce CO2 emissions, is being considered by up to 44% of owners

when they are ordering new vessels an industry report by maritime trade fair SMM 2018 found.

LNG is just one of the options available and owners and managers can also consider fitting scrubbers or

using low sulphur fuel. Which makes the best choice for different owners will be discussed at the Global

Maritime Environmental Congress (GMEC) which is held on 5 September as part of the SMM conference

programme.

[Seatrade Maritime News]

18/04/2018

Finland-based exhaust gas cleaning pioneer Langh Tech has explained how last week‘s decision to prohibit

the carriage of non-compliant fuel oil will have a material and technical impact on commercial ship

operations.

In a special panel session during the Sulphur Cap 2020 conference in Amsterdam today, Langh Tech

Managing Director Laura Langh-Lagerlof told delegates: ―If such measures are adopted, any shipowner,

operator, master mariner or chief engineer found guilty of transporting non-compliant fuels intended for

burning in marine engines could face stringent financial penalties and possible imprisonment.‖

Amongst the measures to reduce shipping‘s carbon footprint adopted at the 72nd session of the IMO‘s

Marine Environment Protection Committee, which met last week in London, the MEPC approved

proposals to ban the carriage of high sulphur fuels, submitting draft amendments to MARPOL Annex VI

for approval and adoption at MEPC 73.

Should the amendment be adopted, any a ship without an approved scrubber or equivalent arrangement

would be banned from carrying and using bunker with a sulphur content exceeding 0.50%.

―While we completely support initiatives to reduce Greenhouse Gas Emissions and shipping‘s impact on

the marine environment, the MEPC 72 decision makes clear that technical solutions are now required if

shipowners are to comply with the sulphur limit requirements,‖ she said.

Langh-Lagerlof went on to emphasise that of all the possible fuelling options, the use of Heavy Fuel Oil

with a scrubber remains the ―sensible option‖.

―Given the continued concern surrounding methane slip, LNG fuel could potentially be more

environmentally hazardous than the current arrangement, while the direct and indirect costs associated with

burning low sulphur fuels would have a considerable impact on the shipowners P+L.

Shipping emissions: High-sulphur fuel ban to have material and technical impact on

shipowners

―The low viscosity, low lubricity, acidity, flashpoint and cylinder oil compatibility of these expensive fuels

could also result in corrosion issues and other engine problems. With a scrubber, at least there‘s a return on

the investment,‖ she said.

Referring to the practical, operational experience of the Langh Tech scrubber installations aboard Langh

Ship‘s fleet of five containerships, Langh-Lagerlof explained why the technology is the only viable option

in meeting the regulatory requirement.

One of the key take-aways from the conference was how Langh Tech‘s closed loop scrubber removes

oxides of sulphur from the HFO exhaust emissions without resulting in a corrosive wash water typical of

other exhaust gas cleaning systems.

―With increasing concern about the corrosive properties of wash water corroding pipework, our

lightweight, compact scrubber technology manages to extract almost all the water from the scrubber

sludge, with the end result being simply a dry black waste that can be effortlessly and cost-effectively

disposed of,‖ she said.

[Marine Insight]

18/04/2018

By Eva Grey

In its latest sustainability report, shipping giant Maersk hit out at the ongoing corruption in the maritime

sector, criticising ―an environment where facilitation payments and extortion are common occurrences‖.

What forms does corruption take at sea and how is the industry fighting it?

Historically, the shipping industry has long

struggled with corruption on a wide scale. The

main reason for this is the very nature of the job:

frequent port calls in numerous countries around

the world (each with its own set of laws and

legislation), as well as multiple ship inspections

and heavy bureaucracy,

often leave the crew exposed to abuse of power

and demands for illicit payments. Refusing to

give in to demands can add huge delays and

costs to the business, or worse, it can put the

captain and crew at risk of harm.

Globally, corruption is a common malady that transcends all industries and walks of life. Each year,

Transparency International ranks 180 countries and territories by their perceived levels of public sector

corruption as part of its Corruption Perceptions Index. Its latest index found that more than two-thirds of

the countries score below 50, with an average score of 43 – a poor performance that is ―nothing new‖,

according to the organisation. The United Nations (UN) estimates that corruption can add 10% or more to

the cost of doing business internationally.

Although it can take on many faces, the most common forms of corruption at sea are bribes and facilitation

payments.

Tackling corruption in the maritime world

―A facilitation payment is a low-level payment made to a low-level official to perform a routine task a task

you are already entitled to,‖ says Cecilia Müller Torbrand, program director at the Maritime

Anti-Corruption Network (MACN).

Established in 2011, and formalised in 2012, MACN began as a small group of shipping companies coming

together to discuss ways in which this issue could be dealt with. Since then, MACN has grown to include

more than 90 members globally and, thanks to unprecedented government access, it has become a

successful example of collective power in fighting corruption efficiently.

The faces of fraud: how does corruption happen at sea?

Understanding how corruption works on board means getting to grips with the challenges that captains face

during routine port calls.

―When ships go into port, there are numerous government interactions,‖ Torbrand explains. ―During a port

call, the captain is faced with not one but several such interactions, such as immigration, customs, and

environmental inspections. In some countries, these government officials were paid by the ships in the past,

historically, so there is a still strong tradition for a token of appreciation. And whether that is a gift or a

compensation to grease the wheel, today it is petty corruption.‖

Maersk, one of the founding members of MACN, is very vocal about its zero-tolerance stance against

corruption. In its latest sustainability report, the company points out that its vessels can make upwards of

30,000 port calls annually, and in each port, as well as other points along the logistics chain, papers and

documentation are subject to inspection by various authorities. This creates an environment where abuse of

power is rife, and can often go unchallenged. Last year, MACN received 8,600 anonymous reports, out of

which 262 were directly related to the safety of the ship or crew.

Facilitation payments have over 200 names across the globe – from ‗tea money‘ in China, or

‗make-me-laugh‘ in Brazil – but they all amount to petty corruption, and cracking down on these practices

can be challenging.

Each company is bound by law to have an anti-corruption policy in place, modelled on robust international

legislation, such as the UK Bribery Act 2010, the OECD Anti-Bribery Convention, or the United Nations

Convention against Corruption.

However, one of the biggest challenges is that although the laws are in place, they are often open to

interpretation, with no detailed enforcement plan.

―Exactly what are government officials‘ visits supposed to look at?‖ Torbrand asks. ―Are they allowed to

come on board an unlimited number of times, and an unlimited number of officials? Can there be 30 people

who come on board? What can they actually look at? Imagine, on a tanker or container vessel, if they spend

a long enough time on the ship, and search every nut and bold, they will find some element that would

justify them to issue a fine.

―You can have an advanced anti-corruption system but as long as you don‘t work with the industry and

with government, these challenges will never be fully eliminated,‖ she says.

Maersk operates a whistle-blower hotline, which has been active for seven years and is available in 75

languages, where any concerned party can call in to report suspicious behaviour or practices. In 2017, the

company received a total of 406 reports, of which 132 were within the system‘s scope and purpose. This,

coupled with training, as well as collective action taken as part of the MACN family, meant that last year

the company reduced facilitation payments by 96% on its own vessels, compared to 2016.

―We‘re not saying that it‘s justified to break those laws, most definitely not. But as a shipping company,

and as a captain, you should be able to be in that situation where you have prepared enough to say ‗yes, we

will be compliant during this port call, because we know of the protocol that the country will require of us‘.

In reality, the reason why this is so difficult is due to corruption. It‘s a sensitive topic to talk about, but

we‘ve started to do it,‖ Torbrand says.

Challenging the status quo: MACN backs captains to „Say No‟

The many different forms corruption can take, depending on region, culture and circumstance, is best

illustrated by MACN‘s campaigns to date.

In 2012, the association identified Nigeria as one of the most challenging countries to do business in, with

cases of extortion, harassment and threats of violence. MACN joined forces with the United Nations

Development Programme to undertake a risk assessment study in the Nigerian port sector, covering six

main Nigerian ports, including Apapa and Tin Can in Lagos, Port Harcourt, Onne, Calabar, and Warri. The

investigation found broad discretionary powers and limited accountability in an environment where

―corruption is expected and widely rationalised as a part of the system‖.

In 2017, MACN trained over 570 government officials in the ports of Lagos (Apapa), Lagos (Tin Can),

Calabar, Onne, and Port-Harcourt.

―They had the law, but not any procedures to implement it, so it was difficult for shipping companies to

challenge anything,‖ Torbrand says. ―Today, we have harmonised procedures, which means that all of the

different agencies that come on board have harmonised among themselves their procedures for port call.‖

In Argentina, MACN took a completely different approach. Thanks to repeated incidents flagged up

through the organisation‘s anonymous incident reporting mechanism, members found that one of the

biggest issues facing ships stopping at Argentinian ports revolved around inspections of their grain tanks.

Here, inspectors took advantage of ambiguous scrutiny criteria to demand payments, threatening to fail

ships that would not comply. At the time, the costs accrued from failing an inspection could amount to

$50,000 per day.

To tackle this, MACN partnered with local integrity champion Governance Latam and together changed

the legislative framework in Argentina and moved to a system of inspections primarily conducted by

private surveyors, while government bodies that supervise these inspections are used as an escalations

channel. MACN‘s local partner also conducted training around integrity and on the new regulations for hull

cleaning and inspections.

A simpler but equally effective campaign took place in the Suez Canal, also dubbed the ‗Marlboro Canal‘

because of corrupt demands during the ships‘ passage. The ‗Say No‘ campaign, launched in 2015, provided

captains with an English and Arabic toolkit, complete with instructions and placards opposing facilitation

payments, that has aided many ships in transit. Feedback in 2017 showed that demands for cigarettes have

decreased dramatically, or have been eliminated, while threats to the safety of both crew and vessel have

also decreased significantly.

―One of the most common questions I get is ‗how you aren‘t thrown out of government meetings, how can

you successfully talk about something that is so sensitive?‘ says Torbrand. ―In all the countries that we

engaged with and have in the pipeline now, that has never been an issue. If you come with data and a

diplomatic approach and good grounds on why you want to work on this, they understand that trade is a

major part of any agenda.‖

[Ship Technology]

18/04/2018

German shipping bank Norddeutsche Landesbank (Nord/LB) returned to profit in financial year 2017 after

significantly reducing its shipping loan portfolio.

Triggering loan loss provisions of EUR 986 million, the shipping crisis left its mark on the bank‘s annual

report for 2017. However, the impact on earnings was much smaller than in the previous year. At the same

time, the bank made good progress again with reducing its shipping loan portfolio. By the end of 2017, the

portfolio was reduced to EUR 12.1 billion, after EUR 16.8 billion just twelve months before.

Nord/LB concluded the year with earnings before taxes of EUR 195 million. Consolidated profit totalled

EUR 135 million. In the financial year 2016, the bank posted a loss before taxes of EUR 1.9 billion as a

result of the marked intensification of the global shipping crisis.

―We achieved the four major objectives that we set ourselves for 2017,‖ said Thomas Bürkle, Chairman of

the Management Board of Nord/LB. According to Bürkle, the bank will be focusing on non-performing

loans (NPL) during the ongoing reduction in the shipping loan portfolio. ―We want to bring the NPL

portfolio down from EUR 8.2 billion today to less than EUR 5 billion by no later than the end of 2019,‖

Bürkle concluded.

[World Maritime News]

18/04/2018

By Dawn Azok

The Port of Mobile is poised to become a major hub of auto export activity, with a new facility that will

allow vehicles to be driven directly onto cargo ships bound for markets around the world.

On Tuesday, representatives of the Alabama State Port Authority and AutoMobile International Terminal, a

joint venture of Terminal Zárate S.A. and SAAM Puertos S.A., signed a Memorandum of Understanding to

develop and operate a vehicle processing roll-on/roll-off (RO/RO) facility at the Port of Mobile. The

signing took place in Buenos Aires, the headquarters of Terminal Zárate S.A.

Automobiles have long been Alabama‘s top export, topping $7.75 billion last year alone. State-made

models are currently loaded onto ships at ports in other states, so the new RO/RO facility at the Port of

Mobile will provide a more convenient option for state automakers.

Construction on the automotive RO/RO terminal is scheduled to start by the end of this year, with

completion expected by the end of 2019. The new terminal would convert approximately 57 acres of a

former bulk material handling facility into a state-of-the-art automotive processing and logistics terminal.

The 40-foot ship draft facility is served by five Class I railroads serving all of North America and

immediate, unencumbered access to two interstate systems (I-65 and I-10).

The overall project represents a total investment of approximately $60 million. Proceeds from the Port

Shipping finance: Nord/LB shrinks shipping loan portfolio, returns to profit

Vehicle shipping U.S.: Port of Mobile taps South American partners to develop $60 million

auto export facility

Authority‘s recently-awarded $12.7 million Transportation Infrastructure Generating Economic Recovery

(TIGER) grant and the $28.8 million grant from the Alabama Gulf Coast Recovery Council would

contribute toward the cost of the project.

In late 2016, the Port Authority initiated a Request for Proposal process to identify a potential partner in the

construction of the facility to meet the region‘s growing demand for finished automobile import/export

facilities in the U.S. Gulf of Mexico.

The Authority selected the partnership between Terminal Zárate S.A. and SAAM Puertos S.A. and began

concession agreement discussions for the construction and operation of the new facility.

Terminal Zárate S.A. specializes in port services; cars, containers and project cargo handling operations;

storage and logistics services; warehousing; equipment rental and other activities providing value to client

logistic chains, economic sectors and overseas trade. It is among the largest RO/RO terminals in the

Americas with a 9 million vehicle throughput to date.

The other partner in the joint venture, SAAM Puertos S.A., is a subsidiary of Sociedad Matriz SAAM S.A.,

a Chilean multinational company that provides foreign trade services by means of port terminal operations,

towage and logistics. With a network of 11 ports in six countries, SAAM Puertos S.A. is one of the major

port operators in South America and partners with the world‘s leading shipping companies.

[Made in Alabama]

18/04/2018

By Luke Christou

Rivers deposit 2.75 million metric tons of plastic into the seas each year, with just ten rivers contributing

up to 95% of the world‘s total waste.

Five of these rivers – including the Yellow River, Hai He River, Pearl River and the Amur River – flow

through China. However, the Yangtze, the third longest river in the world, is by far the worst offender. Of

the 2.75 million metric tons of plastic waste deposited into the ocean by rivers each year, 1.5 million, or

55%, flows out of the Yangtze.

This figure is according to a study led by Christian Schmidt, a hydrogeologist at the Helmholtz-Centre for

Environmental Research, which was recently published in the Environmental

Science & Technology journal. The study, entitled Export of Plastic Debris by Rivers into the Sea, looked

at data on 79 sampling sites along 57 rivers.

Marine pollution: The Yangtze deposits 1.5 million tons of plastic into the seas each year –

but China is finally taking action

The causes

The study concluded that long rivers with large populations living nearby in countries with poor waste

management tend to deposit the most plastic pollution, with China a prime example of this.

Source: Environmental Science & Technology

Schmidt told Verdict: ―The waste management in these countries is not adequately developed. So rather

than being collected and properly disposed, waste ends up in the streets or directly in rivers or washed into

rivers via storm water drains.‖

Beginning in Tanggula Mountain on the Qinghai-Tibet Plateau, the Yangtze then flows through a total of

19 provinces on its way to the East China Sea. The Yangtze region (the area surrounding the river‘s banks)

covers almost 450 million acres of land and is home to more than 400 million people, approximately a third

of China‘s population.

The Yangtze river flows through some of China‘s most densely populated, urban areas, including Shanghai

(22 million), Wuhan (9.8 million) and Chongqing (7.5 million).

Dumping ground

China has undergone rapid development over the past 30 years and, since its people adopted a consumerist

lifestyle, the country‘s waste management infrastructure has been unable to keep up.

According to Chen Liwen of environmental group Nature University: ―Plastic waste that has no value for

recycling is either burned directly or dumped in waterways and eventually ends up in the sea. This is very

common in China‘s rural areas, where there is no waste management in place.‖ As a result, there is a

plastic concentration of 4,100 particles per cubic metre at the Yangtze river‘s mouth according to Dutch

research group the Ocean Cleanup.

China produces more plastic than any other country according to industry association Plastics Europe, with

the nation contributing 29% of the world‘s total. This is compared with Europe producing 19% and North

America‘s total output being 18%.

According to Schmidt, the solution is a simple one: stop making plastic or learn to dispose of it more

effectively. Schmidt told Verdict: ―If nothing changes in consumption and waste management, the current

inputs will not decrease.‖

Global consequences

The Ocean Cleanup is a foundation developing technology to extract plastic from the seas. A spokesperson

from the group told Verdict: ―Because plastic is such a persistent material, the ecological, economic and

eco-toxicological effects of plastic pollution are all long-term.‖

Plastic in our waters can cause a range of problems, the group explained. These include a physical

disruption to marine life such as entanglement or ingestion, a chemical impact through the build-up of

harmful organic pollutants like PCBs and DDT, as well as an economic impact through damage to fisheries

and a reduction in tourism. Likewise, plastic in rivers can also transport harmful species and pollutants

further afield.

A sperm whale recently washed up dead on the Australian coast with 30kg of waste in its stomach.

However, plastic waste isn‘t only finding its way into the bellies of marine creatures. A recent study found

that 90% of bottled water, taken from locations around the world, contains at least some trace of

microplastic.

The World Health Organization told Verdict that the impact of microplastics on human health is unknown

due to a lack of research. Yet, at the very least, these findings highlight the persistence of plastics and just

how far river waste can reach.

China‟s war on waste

The problem in China is hard to police, given how much land the Yangtze covers. However, river pollution

is causing a lack of clean water that could prove catastrophic to China‘s people.

China already lacks access to water. Despite the nation holding 20% of the world‘s population, it contains

just 7% of global water resources. In addition, government data released in 2012 showed that 57.3% of

water sampled was heavily polluted. The government pledged to tackle China‘s water pollution problem

through $330 billion of investment in 2014. Officials hope to improve the quality of water by 30% to 50%

by 2030.

The Environmental Science & Technology study suggests that little improvement has been made so far.

However, China has claimed otherwise. China‘s environment ministry confirmed that $100 billion worth of

river clean-up projects were launched in the first half of 2017.

Tackling trash

In combination with its own waste, China also took much of the world‘s unwanted plastic until very

recently. The country accounted for 56% of all waste imports in 2016, receiving 7.3 million tonnes of the

world‘s trash. A lack of recycling capacity means that much of this waste is buried, incinerated or ends up

in China‘s rivers.

In an effort to clean up its act, the country stopped importing waste plastic earlier this year. The

government announced that it was banning 24 types of waste from entering China, including mining debris,

household plastics, unsorted paper, and textiles. By cutting the amount of plastic imported into China, the

country will be able to focus its resources on tackling its own waste problems.

The import ban has been well-publicised, given the global impact that it has had. Rubbish began piling up

at recycling plants around the world in the weeks preceding the ban. However, this isn‘t the only step that

China has taken to reduce waste in the Yangtze river.

Removing temptation

In Yichang, a city that sits on the banks of the Yangtze river, efforts have been made to move factories

away from the river‘s edge in order to stop waste from entering the water. Authorities have already

overseen the demolition of 25 factories, with the city planning to close 109 more by 2020. Likewise,

Yichang also passed laws to ensure that no chemical factories can remain within 1km of the Yangtze river.

―By the end of April, all of this will be gone,‖ Li Xianyun, general manager of Tiantian chemical factory,

one of the companies being relocated, told Xinhuanet. ―We did not want to move, but it is the right thing to

do to reduce pollution in the river.‖

This is perhaps the biggest indication yet that China cares about waste in its rivers. Tiantian will be

relocating to the nearby city of Zhijiang. Prior to relocating, the company paid Yichang approximately $4.4

million in tax every year. However, the city has little fear of pushing its biggest taxpayers away. ―It is like a

warrior cutting off a limb to save the body,‖ said Guo Kangxin, director of Yichang‘s reform and

development commission.

[Verdict]

18/04/2018

Ports play an important role in reducing the global carbon footprint of maritime shipping, says a new report

by the International Transport Forum (ITF): Reducing Shipping Greenhouse Gas Emissions: Lessons from

Port-based Incentives.

Credit: The New York Times

Greenhouse gas emissions from shipping currently represent around 2.6% of total global emissions.

Without reduction measures, this share could more than triple by 2050. The International Maritime

Organization (IMO) last week set a target of reducing shipping CO2 emissions by ―at least‖ 50% by 2050

compared to 2008 levels. To achieve this, stringent measures now need to be put into place.

While the focus is naturally on the ships themselves, portside measures can significantly add to the

Shipping emissions: New report examines port-based incentives to boost green shipping

environmental performance of shipping and the decarbonisation of maritime transport, the ITF report says.

Today, 28 of the 100 world‘s largest ports (in terms of total cargo volume handled) offer incentives for

environmentally-friendly ships:

• Some US ports offer reductions for ships reducing speed when approaching the port.

• The Panama Canal Authority provides priority slot allocation to greener ships.

• Spain includes environmental incentives in the tender and license criteria for the towage services

provided in ports.

• Shanghai has an emission-trading scheme that includes ports and domestic shipping.

However, green incentives typically apply to less than 5% of the ships calling at a port with an incentive

scheme. Only five ports use CO2 emissions a substantial criterion for incentives. Thus, any incentives that

ship-owners currently have to order more efficient ships with lower emissions can only to a very small

extent be a result of port-based incentives.

Global top 100 ports with environmental port fees

Source: ITF: Reducing Shipping Greenhouse Gas Emissions: Lessons from Port-based Incentives [18 Apr

2018]

The report thus recommends to:

• acknowledge the important role of ports in mitigating shipping emissions

• expand port-based incentives for low-emission ships;

• Link port-based incentives to actual greenhouse gas emissions; and

• move to a more harmonised application of green port fees.

―Ports clearly play a hugely important role in helping the shipping sector to manage the transition to clean

shipping‖, said Olaf Merk, ports and shipping expert at ITF. ―Port-based incentives for greenhouse

emission mitigation could provide an important supporting role.‖

The work for the report was carried out with support from the Environmental Defense Fund Europe.

[ITF / OECD]

18/04/2018

By Greg Knowler, Senior Europe Editor

The Port of Rotterdam‘s rising container volume and the rapid increase in transhipment is further

complicating the search for a solution to the barge congestion that continues to frustrate shippers having to

cope with delays to their containers bound for inland Europe.

The latest wait times for barges at the port are up to 48 hours, according to barge operator Contargo. Almost

a third of the 12 million-plus TEU that were handled by Rotterdam in 2017 were transported inland, placing

enormous pressure on the deepsea terminals to ensure containers are offloaded from mega-ships and loaded

on barges on time.

Credit: Port of Rotterdam

Adding to the pressure on terminal capacity was a 12.3 percent increase in transhipment volume in 2017, as

Rotterdam strengthened its hub position in North Europe. That transhipment growth has continued into the

first quarter of 2018, with feeder volume rising by 7.5 percent and short sea shipping by 6.9 percent

compared to the first three months of last year. Rising transit containers passing through Rotterdam is part

of a trend that was firmly established in 2017, when the growth of deepsea transhipment increased steadily

every quarter from 6.1 percent growth in the first three months of 2017, to 13.6 percent in the fourth

quarter. Transhipment volume to and from feeder vessels in 2017 grew the fastest at more than 21 percent

year over year.

Asia-Europe trade growing substantially

Much of the increase in volume was generated by the growing Asia-North Europe trade and the new

alliances that started in April 2017 with larger vessels calling at Rotterdam. The rising volume, however,

has exacerbated a long-running problem — how to transfer inland-bound containers by barge from the

deepsea terminals at Maasvlakte and up the river with minimal delays.

Port development Netherlands: Rotterdam barge congestion still causing up to 48-hour

delays

The Port of Rotterdam has just completed its latest round of consultations with the industry to try to identify

solutions, improve barge scheduling, and cut down the congestion. Its Nextlogic scheduling solution is

being developed to better schedule barge calls, and 19 Dutch and international companies are now

participating in the Inland Container Shipping Sector Consultations.

This week, the Port of Rotterdam Authority unveiled the first version of its new digital application, Pronto,

that it claims will improve efficiency for the 30,000 vessels that call on Rotterdam every year. The app is

expected to enable ships visiting the port to cut their wait time by an average of 20 percent.

However, while all parties are pleased that more concrete measures are finally being taken, not everyone is

convinced that the Rotterdam Port Authority is on the right path. One of the doubters is Thijs van den

Heuvel, operations director for Combi Terminal Twente, an inland terminal in the Netherlands that handles

about 330,000 TEU a year.

He told the International Cargo Handling Coordination Association port hinterland connectivity seminar in

The Hague that even though there has been a lot of talk over the last few years, it appears that little has

changed.

―I was away for six years. Now I am back and it is still the same. I doubt this will be enough,‖ he said. He

believes ongoing barge congestion will not be solved until there is a disconnect between the port‘s deepsea

terminals and the inland terminals.

Van den Heuvel explained that the current network between the Port of Rotterdam and inland terminals was

too fragmented and complex. ―There are so many players — the shipper, forwarder, shipping company,

deepsea terminals, barge operators — and they all need to come together to make the system work,‖ he

said.

Any doubts of the scale of the issue being faced by Europe‘s busiest container port were soon dispelled.

The terminal executive said there are about 150,000 different shippers in Belgium, the Netherlands, and

Germany combined, all using Rotterdam and sending information about cargo to and from the different

shipping lines, forwarders, and terminals.

There are also eight deepsea terminals with several operators and 600 barges with 150 different owners.

―This requires a lot of scheduling to make the barge come to a deepsea terminal at the right time,‖ Van den

Heuvel said. ―At the same time, there are 50 inland terminals in the Netherlands, 40 in Germany, and 20 in

Belgium. These terminals are not all big operations. Some only do a few containers, some just a few

thousand a year for a dedicated customer, and some do much more.‖

―So what do you do if your volume sources are so fragmented — you sail from one deepsea terminal to the

other to fill up your ship. If one terminal has a shortage of capacity, that causes a delay and it impacts the

next ship, and the next one, and that creates congestion.‖

[JOC.com]

17/04/2018

MAN Diesel & Turbo has won an order from Mediterranean Shipping Company (MSC) to supply the main

engine, in addition to the auxiliary engines, for the world's second largest container shipping company's

eleven 23,000 TEU vessels, under construction at Samsung Heavy Industries (SHI) which will build six of

Container shipping: MAN to supply main engine for eleven 23,000 TEU vessels of

Mediterranean Shipping Company

the vessels, and Daewoo Shipping Marine Engineering (DSME) which will construct the remainder.

It seems the passion for the giant mega box carriers continues and, with all the current technological

changes in engine design there is real kudos in winning the big orders for ships which have to prove not just

their longevity, but their economy, fuel efficiency and reduced emissions. Bjarne Foldager, Vice President

– Sales & Promotion, Two-Stroke Business – MAN Diesel & Turbo, said:

―This order underlines the positive, long-term business relationship between MSC and MAN Diesel &

Turbo. It‘s a significant order that cements our strong position within the large containership segment

where the G-type is the market‘s preferred engine.‖

MAN will provide its MAN B&W 11G95ME-C9.5 main engines, in addition to the GenSets for each vessel

in the form of three MAN 9L32/40 and two MAN 6L32/40 units. Hyundai Heavy Industries (HHI-EMD)

will make the ME-C engines for SHI, while Doosan Engine will build those for DSME. GenSets will all be

manufactured by STX Engine in Korea.

The ‗G‘ prefix before an MAN B&W engine means it has a design with an ultra-long stroke that reduces

engine speed, thereby paving the way for ship designs with unprecedented high-efficiency.

The G-type engine‘s longer stroke results in a lower rpm for the engine driving the propeller. This lower

optimum engine speed allows the use of a larger propeller and is, ultimately, significantly more efficient in

terms of engine propulsion. Together with an optimised engine design, this means that the MSC

newbuildings will have a reduced fuel consumption and reduced emissions. The final vessel in the series is

due for delivery by March 15, 2020.

[Handy Shipping Guide]

17/04/2018

By Iain Marlow

Each year roughly 60,000 ships vital to the global economy sail through the Indian Ocean past a

Chinese-operated port on the southern tip of Sri Lanka. Almost none of them stop to unload cargo.

Hambantota Port, operated by China Merchants Group. Photographer: Atul Loke/Bloomberg

Port development Sri Lanka: China’s $1 billion white elephant

The eight-year-old Hambantota port -- with almost no container traffic and trampled fences that elephants

traverse with ease -- has become a prime example of what can go wrong for countries involved in President

Xi Jinping‘s ―Belt and Road‖ trade and infrastructure initiative. Sri Lanka borrowed heavily to build the

port, couldn‘t repay the loans, and then gave China a 99-year lease for debt relief.

The experience has fueled fears that Xi‘s plans to finance more than $500 billion in projects could see

China take control of strategic infrastructure that also has military uses. But the massive state-owned

Chinese conglomerate that took over the port in December wants to prove the skeptics wrong.

China Merchants Group -- whose 2017 revenues of $93 billion dwarf Sri Lanka‘s gross domestic product --

is aiming to use its experience stretching from China to Europe to make the port profitable. During a rare

look inside the grounds late last month, executive Tissa Wickramasinghe told Bloomberg News it had

already nearly doubled the number of ships visiting the port.

"We are hell bent on making it work," said Wickramasinghe, chief operating officer of Hambantota

International Port Group, a joint venture led by China Merchants. "Whether the port should have been built,

why it was built -- those are, to me, irrelevant now."

Still, the port has a long way to go before it worries competitors in Singapore, Malaysia and the Middle

East. Even with more traffic, Hambantota is only handling about one ship a day -- not enough to even

register on China Merchants‘ own data showing cargo handling volumes for February. It didn‘t make a

United Nations‘ list of the world‘s top 40 container terminals.

Major shipping lines now route cargo through Colombo, Sri Lanka‘s capital, and see little reason to divert

operations south. Maersk Line, the world‘s largest container carrier, is waiting for Hambantota‘s operator to

offer a ―firm value proposition‖ for clients, according to Steve Felder, the company‘s managing director in

South Asia.

―It‘s too early to tell whether Hambantota will be of interest to us,‖ Felder said. ―Much will be dependent

on connectivity within the mainline network, extent of domestic cargo, cost and productivity.‖

The port‘s weak performance has fueled impressions that it simply serves China‘s broader strategic

interests to secure crucial trade routes and international supply chains. It would take billions of dollars of

investment to generate meaningful traffic, according to Rahul Kapoor, a Singapore-based shipping analyst

with Bloomberg Intelligence.

―Hambantota is a great example of the Chinese quest for global maritime dominance,‖ Kapoor said. ―For

the foreseeable future, it remains a strategic push over commercial viability.‖

From its earliest days, the port has spurred debate. Former Sri Lankan President Mahinda Rajapaksa

spearheaded the project, taking Chinese loans to shower goodies on his home district of Hambantota --

including a new international airport that still has just one daily scheduled flight.

The current administration led by Prime Minister Ranil Wickremesinghe told Bloomberg News the $1.1

billion debt-to-equity swap with China Merchants helped ease "the Chinese part of the debt burden." Still

the decision remains unpopular with many Sri Lankans. Ironically that‘s boosted the political fortunes of

Rajapaksa, who lost a 2015 election in part due to concerns he was too cozy with China.

On a recent afternoon at the port, vehicle traffic was nearly non-existent. A large monitor lizard meandered

across the main road. A port executive shot a video with his iPhone of a Singaporean ship unloading cement

into a smaller vessel, complaining that the process was taking too long.

Yet for Hambantota, it was busy: Two other ships were also docked -- a cruise ship whose passengers were

on a jungle safari and a vessel full of vehicles. "Today‘s a good day," said Wickramasinghe, the COO.

To boost revenue, he plans to lure vehicle trans-shipments, refueling and oil storage services away from

Singapore, the U.A.E. Port of Fujairah and Malaysia‘s Port Klang. The company could spend around $500

million on cranes to handle containers, and is speaking with "most of the oil majors" for oil bunkering and

storage, he said.

Plans are also afoot to build a logistics and industrial zone next to the port. The 11.5 square-kilometer (4.4

square-mile) area -- more than three times the size of New York‘s Central Park -- is now mostly jungle.

Farmers nearby worry they could lose their ancestral land to proposed industrial zones.

"All the profits are going back to China," said Dharmasena Hettiarchchi, a 52-year-old farmer.

The abundance of space allows Japanese and Europeans automakers to store vehicles for trans-shipments to

South Africa and the Middle East, Wickramasinghe said. China Merchants plans to more than double the

number of vehicle trans-shipments to 250,000 this year, he said, with 10 percent annual growth expected

the next few years. Singapore now handles 1 million vehicle trans-shipments annually.

―China Merchants doesn‘t go and dump money if it‘s not commercially viable,‖ Wickramasinghe said. ―It‘s

definitely not political or military.‖

China this week dismissed speculation that the Belt and Road Initiative had a military dimension, with

foreign ministry spokeswoman Hua Chunying saying it was ―open and transparent.‖ Hambantota was

mutually beneficial and would aid Sri Lanka‘s economy, she said.

―For others who speculate, I believe they have no reason to do so,‖ Hua said. Still, Sri Lanka relocated its

southern naval command to Hambantota in part to ease Indian and Japanese worries, state minister of

defence Ruwan Wijewardene said in an interview. ―We‘ve been speaking with them, and also with the

Chinese,‖ he said. ―We‘ve made it very clear that it can‘t be a military port.‖

Wickramasinghe said it was normal for China Merchants to have a 99-year lease, citing a similar deal with

the Port of Newcastle in Australia. Not everyone is convinced.

"The current Sri Lankan government has said that it will not permit military use of the facility, but that

could change," said Amit Bhandari, an analyst at Mumbai-based Gateway House. "Ninety-nine years is a

long time after all."

[Bloomberg]

17/04/2018

For the first time since its establishment, EcoPorts has reached the number of 32 ports certified with the

environmental performance standard of the network (PERS).

Set up in 1997, EcoPorts operates under the European Sea Ports Organisation (ESPO) and is the main

bottom-up initiative of the European ports to address the environmental challenges the sector faces.

Being PERS certified requires amongst others that the port increases transparency by making its

environmental report publicly available. It also implies that the port is effectively monitoring the

environmental challenges and is implementing an improved environmental management. PERS facilitates

ports to comply with legislation and meet customer expectations. Additionally, ports‘ environmental

performance is increasingly taken into account ("factored-in") in calculations of the premium by major

insurance companies; standards such as PERS are recognized as components of a sustainable approach.

―For many ports, PERS certification is the cherry on the cake, rewarding years of day-to-day engagement

towards improving environmental management. We know that many other ports are meeting the requirements

and are eligible for PERS certification. We hope that they will apply for the certificate. It must be seen as a

quality mark for environmental sustainability. Both consumers and shippers are increasingly paying attention

Port development Europe: 32 ports certified with EcoPorts PERS environmental standard

to a sustainable supply chain. These certificates can enhance the transparency and help them making the right

choices‖, says Secretary General of ESPO, Isabelle Ryckbost.

―The steady increase of the ports certified with the PERS standard, is remarkable and indicates the readiness

of ports to address the environmental challenges, be transparent in communicating their environmental policy,

build an even closer relationship with port cities‘ communities and enhance their market reputation. We

encourage all ports to join EcoPorts and obtain the PERS standard‖ says the EcoPorts coordinator, Sotiris

Raptis.

One third of the 93 EcoPorts members have now acquired PERS, which is the only port specific

environmental management standard. Compliance with the PERS standard is independently assessed by

Lloyd‘s Register and the certificate has a validity of 2 years. PERS is revised after the 2-year period to make

sure that the port continues to meet the requirements.

The EcoPorts tools are available to ports and terminals outside Europe through the ECO Sustainable Logistic

Chain Foundation (ECOSLC).

[ESPO]

17/04/2018

Rolls-Royce Marine has signed a deal to supply its Automatic Crossing System to a total of 13 new

environmentally friendly ferries for the Norwegian company Fjord1. The vessels are currently being built

by three yards in Turkey and two yards in Norway. All contracts also include two azipull propellers for

each vessel with accompanying propeller control system from Rolls-Royce.

With this contract, Rolls-Royce has sold its Automatic Crossing System to a total of 18 new ferries to

operate along the coast of Norway, of which 16 have been ordered by Fjord1 and two by another

Norwegian ferry company, FosenNamsos Sjø.

Dagfinn Neteland, CEO of Fjord1, said, ―Our passengers will be part of the most environmentally friendly

and modern transportation concept ever seen in Norwegian fjords. The technology from Rolls-Royce

enables us to deliver this promise.‖

Ferries Norway: Rolls-Royce's to supply its Automatic Crossing System for 13 new ferries

Credit: Rolls-Royce

Andreas Seth, Rolls-Royce, SVP Electro, Automation and Control, said, ―We are proud to take part in the

ongoing renewal program for ferries that connects communities along the long Norwegian coastline. The

Government deserves praise for opting for both innovative and environmentally friendly solutions. It

makes it possible for the maritime industry to deliver our latest technology.‖

The new generation of environmentally friendly ferries have strict yearly limits on energy consumption as

part of the commercial agreement between the ferry operator and the Government. The automatic crossing

system provides safe, predictable and energy-efficient transit back and forth by automatically controlling

the vessel‘s acceleration, deceleration, speed and track. The two energy-efficient Rolls-Royce Azipull

thrusters respond adaptively to environmental conditions to ensure optimal behaviour and maximise

efficiency.

The vessel‘s captain will supervise the automatic system and intervene using traditional maneuvering

systems if needed. If the captain is not, for some reason, able to take manual control, the system stops the

vessel at a safe distance from the quayside and keeps it safely positioned automatically until further action

can be taken.

Seth said, ―Five of the new vessels will operate in one of Norway‘s two designated test areas for

autonomous ship technology. This is a perfect location as the Autocrossing system from

Rolls-Royce is indeed a step on the journey towards increased autonomous and remote navigation.

The Automatic Crossing System can today be installed as an add-on to any standard Rolls-Royce

azimuthing thruster. This means the system can be retrofitted to the existing fleet of ferries around the

world.

[MarineLink]

17/04/2018

By Fiona Harvey, Environment correspondent

More than 95% of the world‘s population breathe unsafe air and the burden is falling hardest on the poorest

communities, with the gap between the most polluted and least polluted countries rising rapidly, a

comprehensive study of global air pollution has found.

Cities are home to an increasing majority of the world‘s people, exposing billions to unsafe air, particularly

in developing countries, but in rural areas the risk of indoor air pollution is often caused by burning solid

fuels. One in three people worldwide faces the double whammy of unsafe air both indoors and out.

The report State of Global Air 2018 by the Health Effects Institute used new findings such as satellite data

and better monitoring to estimate the numbers of people exposed to air polluted above the levels deemed

safe by the World Health Organisation. This exposure has made air pollution the fourth highest cause of

death globally, after high blood pressure, diet and smoking, and the greatest environmental health risk.

Experts estimate that exposure to air pollution contributed to more than 6m deaths worldwide last year,

playing a role in increasing the risk of stroke, heart attack, lung cancer and chronic lung disease. China and

India accounted for more than half of the death toll.

Burning solid fuel such as coal or biomass in their homes for cooking or heating exposed 2.6 billion people

to indoor air pollution in 2016, the report found. Indoor air pollution can also affect air quality in the

surrounding area, with this effect contributing to one in four pollution deaths in India and nearly one in five

in China.

Bob O‘Keefe, vice-president of the institute, said the gap between the most polluted air on the planet and

the least polluted was striking. While developed countries have made moves to clean up, many developing

countries have fallen further behind while seeking economic growth.

He said there was now an 11-fold gap between the most polluted and least polluted areas, compared with a

six-fold gap in 1990. ―Air pollution control systems still lag behind economic development [in poorer

nations],‖ he said.

But he added: ―There are reasons for optimism, though there is a long way to go. China seems to be now

moving pretty aggressively, for instance in cutting coal and on stronger controls. India has really begun to

step up on indoor air pollution, for instance through the provision of LPG [liquefied petroleum gas] as a

cooking fuel, and through electrification.‖

The number of people exposed to indoor air pollution from burning solid fuels has fallen from an estimated

3.6 billion around the world in 1990 to about 2.4 billion today, despite a rising population.

Emissions from transport are a growing concern, however, as road traffic increases. Diesel fuel is a leading

cause of air pollution in some rich countries, including the UK, but in poorer countries the often decrepit

state of many vehicles means petrol-driven engines can be just as bad in their outputs, especially of the fine

particulate matter blamed for millions of deaths a year.

O‘Keefe said governments were under increasing pressure to deal with the problems through regulation

and controls, and hailed internet access as having a significant impact.

Air pollution: More than 95% of world's population breathe dangerous air

―Social media has been very important, as a growing number of people have access to it and to data and

discussions [on air pollution]. People now have the ability to worry about not just the food they eat and a

roof over the head, but they have the means to discuss [issues] in public,‖ he said.

Tuesday‘s report reinforces an increasing volume of data in recent years that has shown how air pollution is

increasing and causing deaths. More data has become available in the past decade from satellites and

on-the-ground monitoring, while large-scale studies have revealed more of the health risks arising from

breathing dirty air, which rarely kills people directly but is now known to contribute to other causes of

death.

[The Guardian]

17/04/2018

A new white paper from classification society DNV GL is intended to help the shipping industry prepare

for the Global Sulfur Cap on marine fuels set to come into effect on January 1, 2020.

The paper, entitled Alternative fuels and technologies for greener shipping, examines the price, availability,

regulatory challenges and environmental benefits of alternative fuels and technologies, including LNG,

LPG, hydrogen, fuel cells, and hybrid and battery technologies, and compares them to the use of

conventional fuel with scrubbers and new low sulfur alternatives.

"The incoming International Maritime Organization (IMO) sulfur cap on emissions from shipping could

have a significant effect on the maritime industry, and it has the potential to be a game changer for

alternative fuels," says Trond Hodne, Senior Vice President, Sales & Marketing Director at DNV GL –

Maritime. "Our new white paper is designed to set out the options for interested stakeholders and to offer a

balanced assessment of the potential of these fuels and technologies going forward. We hope that by doing

so we can add to the growing body of knowledge and enable investment decisions to be made with greater

certainty and confidence."

The technologies and fuels considered in the white paper are many of the most commonly used in the

shipping industry today: LNG, LPG, methanol, biofuel, hydrogen, battery systems, fuel cell systems, and

wind-assisted propulsion. The white paper identifies and examines the factors that will affect the uptake and

acceptance of alternative fuels and technologies in shipping, including: environmental compatibility,

availability, fuel costs and the international rules within the IGF Code. Over the short term, the white paper

foresees that the vast majority of conventionally fueled vessels already in service will either switch to low

sulfur conventional fuels, or implement a scrubber system while continuing to use heavy fuel oil (HFO).

For newbuilding vessels, the sulfur cap could be a major driver for alternative fuels, and DNV GL's Gerd

Würsig, Business Director Alternative fuelled ships, at DNV GL – Maritime, believes that LNG is the

prime contender among them: "LNG has already overcome the barriers related to international legislation

and is available in sufficient quantities today to meet the requirements of the shipping industry for many

years. It also fits within the trend of demands to lower emissions of CO2, NOx and particulate matter. At

the end of the day however, the best concept for a given application needs to be determined by the

shipowner on a case-by-case basis, and at DNV GL we are ready to assist in finding the best solution."

Shipping emissions: DNV GL issues white paper on alternate fuels

Summary of key findings

1. The IMO decision to limit the sulfur content of ship fuel worldwide as of 1 January 2020 to 0.5 percent

has the potential to be a game changer.

2. There is an accelerating worldwide trend towards lower emissions of CO2, NOX and particles.

3. DNV GL identified LNG, LPG, methanol, biofuel and hydrogen as the most promising alternative fuels

for shipping.

4. DNV GL believes battery systems, fuel cell systems and wind-assisted propulsion have reasonable

potential for ship applications.

5. As has been demonstrated by the DNV GL PERFECt Ship concept study, the wellknown combined cycle

gas and steam turbine technology has good potential for ships in the power range above 30 MW, provided

that low-sulfur fuels are widely used in shipping

6. The major challenges for alternative fuels are related to environmental benefits, fuel availability in the

quantities needed for shipping, fuel costs and the international rules within the IGF Code.

7. Of all fossil fuels, LNG produces the lowest CO2 emissions.

8. In a sustainable energy world where all energy is produced by regenerative CO2-neutral sources,

hydrogen and CO2 will be the basis for fuel production.

9. All propulsion concepts are capable of meeting the emission limits using any of the fuel alternatives.

10. For international shipping, it should be noted that subsidies financed by taxes on fuel for preferred fuels

do not exist because there is no taxation on ship fuels.

[Marine Log]

17/04/2018

ExxonMobil has revealed the first locations where it will supply new fuels that comply with the IMO‘s

0.5% sulphur cap.

Ports in Northwest Europe, the Mediterranean and Singapore will benefit from the new compliant grades

which are currently under development and will be launched ahead of IMO‘s 2020 implementation date.

Additional locations will be announced throughout 2018.

―Our new suite of compliant fuels will include residual and distillate grades. We are at a very advanced

stage in the development of these fuels, therefore making us well positioned to help customers meet the

reduced sulphur limit ahead of the IMO‘s 2020 implementation date,‖ said Luca Volta, marine fuels venture

manager, ExxonMobil.

ExxonMobil‘s IMO-compliant fuels are being formulated using proprietary patented technology that can

help identify potential compatibility issues during the development process.

―We have developed proprietary methods for determining the compatibility of various grades of fuels as

well as methods for modifying fuel composition to improve quality, stability and compatibility,‖ said Mike

Noorman, head of fuels technology, ExxonMobil Research & Engineering. He added that the patented

technology is helping to develop products that address the potential hazards vessel operators could face

when mixing fuels.

Shipping emissions: ExxonMobil to supply low sulphur fuels in 2020

[The Motorship]

17/04/2018

By Roslan Khasawneh

Switching to liquefied natural gas (LNG) to fuel ocean-going vessels may not be enough for shippers to

comply with long-term emissions regulations and they will have to find additional ways of reducing

emissions, JBC Energy said on Tuesday.

The International Maritime Organization (IMO) on Friday reached an agreement to cut carbon dioxide

(CO2) emissions by at least 50 percent by 2050 compared with 2008 levels. Shipping accounts for 2.2

percent of world CO2 emissions, according to the IMO, the United Nations agency responsible for

regulating the shipping industry.

According to JBC‘s calculations a switch to LNG-fuelled shipping, which has a CO2 emission factor about

27 percent lower than the fuel oil that currently powers the vast majority of ships, ―will not by itself be

enough.‖

Even if the entire global shipping fleet were to switch to LNG from the fuel oil and gasoil that currently

power the fleet, the industry would still be short of its CO2 reduction targets by 350 million tonnes, said

JBC. Instead, the industry will have to find additional ways to cut CO2 emissions, including efficiency

gains, carbon capture and storage, hybrids and batteries. ―There might still be a long time to reach the goal,

but there is no obvious path to completion,‖ said the Vienna-based research consultancy in its note to

clients.

The IMO has adopted mandatory rules for new vessels to boost fuel efficiency as a means of cutting carbon

emissions from ship engines but a final plan is not expected until 2023. LNG will likely play an important

role in reducing emissions as the first round of regulations come into force, but the final 2023 plan will

have the biggest impact, said JBC.

Moreover, the switch to LNG would have large ramifications for the oil industry. ―There is a lot at stake in

the long term, as the entire bunker fuels (fuel oil, gasoil, and gasoline) demand of over 5 million barrels per

day would effectively cease to exist,‖ said JBC.

[Reuters]

17/04/2018

By Takeo Kumagai

Shipping emissions: Switch to LNG for shipping fuel not enough to meet strict carbon

regulations

Shipping emissions Japan: Industry to seek alternatives to fossil fuels for IMO 2050

emission target

The Japanese shipping industry will seek alternatives to the fossil fuels used currently to meet the

International Maritime Organization's newly set target to halve greenhouse gas emissions by 2050,

according to industry and government officials.

The IMO's Marine Environment Protection Committee adopted a strategy last Friday requiring the shipping

industry to reduce its total GHG emissions by 50% from 2008 levels by 2050, as well as cutting carbon

dioxide emissions "per transport work" by at least 40% by 2030.

Tokyo has proposed cutting carbon dioxide emissions per transport work by at least 40% by 2030, an

official at the Ministry of Land, Infrastructure, Transport and Tourism (MLIT)said Tuesday, adding that

Japan is committed to making every effort to achieve both targets adopted on Friday.

Slow steaming of ships and optimizing cargo shipping arrangements could be among options to help cut

carbon dioxide emissions per transport work by 2030, the MLIT official added.

But using petroleum regardless of sulfur levels -- low sulfur fuel oil, high sulfur fuel oil or gasoil -- would

not help the shipping industry meet the IMO's target to halve GHG emissions by 2050 without the

emergence of a technology to capture carbon emissions, the MLIT official said.

Japanese shipowners would have to start considering "zero emission" fuel options when they consider

building new vessels at an early date, following the latest IMO adoption, an official in charge of the

IMO-related matters at the Japan Shipowners' Association said Tuesday. "The introduction of alternative

fuels will be needed," said the JSA official, adding that it would be difficult to meet the IMO's targets with

currently used fossil fuels.

The use of LNG can be among shipping fuels options in the medium term as it will help cut carbon

emissions, compared with using petroleum, although it would not help achieve zero carbon emissions, the

MLIT official said.

An official at Japan's largest LPG supplier, Astomos Energy, which has been actively promoting LPG

bunkering to meet the IMO's 2020 low-sulfur mandate, said Tuesday that LPG might still be among the

measures to cut GHG emissions in the event of having formal carbon regulations in shipping fuels.

A fuel mix of hydrogen, fuel cell or wind power are among zero-emission fuels that could be considered for

shipping in order to halve GHG emissions by 2050, the MLIT and JSA official said.

Following the latest IMO development, an official at JXTG Nippon Oil & Energy said Tuesday that the

largest refiner will consider its response in the future based on trends in the shipping industry.

Separately, the IMO decided in October 2016 to cut global sulfur emission limits for marine fuels from

3.5% to 0.5% by 2020. Ship operators will have to either switch to cleaner, more expensive fuels or invest

in emissions cleaning systems to comply with the new limits. The IMO has not imposed any carbon cap in

shipping fuels.

[Platts]

17/04/2018

The Dutch Government has signed an agreement with the representatives of the country‘s inland shipping

industry for reducing emissions from the sector.

The newly signed Declaration of Nijmegen aims to reduce carbon dioxide (CO2) emissions from the inland

shipping sector by 20% over the next 12 years. It also seeks to make the sector competitive with the road

and rail transport industries in terms of reducing emissions.

Netherlands Infrastructure and Water Management Minister Van Nieuwenhuizen said: ―Inland shipping has

a substantial lead if you compare its CO2 emissions to those of trucks and trains. A vessel gives some 40

years of service, whereas trucks are obsolete after no more than six or seven years. This means that the

sector has no time to lose with respect to its transition to new, cleaner technology. The Declaration of

Nijmegen constitutes a fine point of departure to this end.‖

The Declaration of Nijmegen has been initiated by Netherlands‘ Ministry of Infrastructure and Water

Management, in partnership with the European Green Capital of Nijmegen, as well as various government

bodies, port authorities, logistics companies, and shippers.

Netherlands‘ inland shipping sector is currently estimated to release around 2.1t per annum of CO2, and,

with the new deal, the sector intends to reduce the emissions to a maximum of 1.7t by 2030. The proposed

savings will be equal to the CO2 emitted by nearly 50,000 households. The target is also expected to feature

in the Climate and Energy Agreement and is set to help the inland shipping sector become climate-neutral

by 2050.

The Declaration of Nijmegen also outlines a three-step plan for its participants. The plan includes feasibility

studies and demonstrations that will serve as the basis for practical pilot projects, which will be upscaled in

step three.

[Ship Technology]

17/04/2018

Dredging is an important industry with its uses in many spheres. As the population of the world keeps on

increasing, particularly in the coastal areas, more amount of coastal land needs to be reclaimed and

protected from erosion and floods, giving rise to the need of dredging in the coastal areas.

Global dredging market

Shipping emissions Netherlands: Government signs reduction deal for inland shipping

sector

Dredging: Global market to touch value of nearly US$ 16,500 million in 2022

Source: Future Market Insights 2017

Also, due to the increasing sea levels because of global warming, more and more coastal areas are

experiencing floods and to prevent such natural disasters or to mitigate their effects, dredging is required.

Moreover, as the volume of global trade increases, more and more goods are shipped through the sea using

large vessels or ships. Due to this, port infrastructure needs to be expanded and for this purpose dredging is

required to keep the ports working. Also, due to a rising demand of oil and gas, exploration for such energy

resources is done in remote areas, requiring construction of ports where dredging is required. Lastly, since

global tourism industry is also increasing, beaches are needed to be kept in good condition and for this

reason dredging is done in such areas as well.

The global Dredging market is slated to touch a value of nearly US$ 16,500 Mn in the year 2022 and grow

at a sluggish CAGR during the assessment period.As per the forecast of Future Market Insights, the trade

maintenance application type segment is slated to touch a value of nearly US$ 3,150 Mn in the year 2022.

This represents a sluggish CAGR growth during the

assessment period of 2017-2022. The trade maintenance application type segment is estimated to account

for nearly one-fifth of the revenue share of the application segment by the year 2017 end and is expected to

lose in market share by the year 2022 end.

As per the forecast of Future Market Insights, the O&G companies customer type segment will reach a

value of nearly US$ 3,330 Mn in the year 2017. This represents a sluggish CAGR growth during the

forecast period. The O&G companies customer type segment is estimated to account for nearly one-fourth

of the revenue share of the customer type segment in the year 2017 end and is expected to gain market

share by the end of the year 2022.

As per the forecast of Future Market Insights, the mining companies customer type segment is slated to

reach a value of nearly US$ 1,030 Mn in 2022. The mining companies customer type segment is expected

to lose some market value by the end of the year 2022. The largest share is contributed by the APEJ region

in the mining companies customer type segment. Future Market Insights forecasts the China dredging

market to grow from nearly US$ 3,320 Mn in 2017 to nearly US$ 3,800 Mn in 2022. This represents a

compound annual growth rate (CAGR) of 2.7% from 2017 to 2022.

The report has also profiled leading players in the global market for Dredging, which will remain active

through 2022. These include companies such as Hyundai Engineering & Construction Co., Ltd., Great

Lakes Dredge & Dock Corporation, Royal Boskalis Westminster N.V, Jan De Nul N.V., China Harbour

Engineering Company Ltd., DEME Group, National Marine Dredging Co., Weeks Marine, Inc., and Van

Oord NV.

[364 Analyze]

17/04/2018

By Stuart Todd & Will Waters

The Port of Rotterdam has provided financial support for the launch of a new fixed-schedule inland

shipping service as part of an ongoing strategy to address chronic barge congestion issues between Europe‘s

biggest container port and its hinterland.

The twice-weekly round trip routing, operated by HTS Intermodaal, links the Rotterdam World Gateway

(RWG) deepsea terminal and the inland German port of Duisburg, via Gorinchem, ‗bundling‘ containers

which otherwise would have been transported on several barges.

Earlier this year, the port authority contributed to the funding of a similar inland shipping service project

linking Rotterdam with Moerdijk and Tilburg.

―The combining of cargo means that fewer ships are required, resulting in less congestion in the port of

Rotterdam,‖ the Port of Rotterdam Authority (PORA) said. ―In the first three months of this collaboration,

the fixed sailing schedule has increased call sizes at the terminals by 100% and resulted in more reliable

handing at the terminals, more container transport via inland shipping, and less reliance on road haulage. In

addition, vessels‘ average waiting time in the port area until they can be handled has decreased by some

30%.‖

Allard Castelein, CEO of the Port of Rotterdam Authority, commented: ―Good accessibility and the smooth

flow of cargo to the European hinterland are crucial for a major sea port like Rotterdam. Any measure we

can take to reduce congestion in the port area is of vital importance.

―This calls for close collaboration between all parties in the logistics chain. As the Port Authority, we have

taken on the responsibility of working to bring these different parties together.

―Despite the results achieved so far, congestion remains a complex systemic problem that we cannot

resolve with a few simple measures. Therefore, the Port Authority will keep facilitating consultation

between the chain parties so that they can work together on new solutions.

Inland waterways Europe: Port of Rotterdam provides financial support for new inland

shipping link

―In addition, we will continue to develop assets that can contribute to the smooth flow of cargo through

Rotterdam – like our Nextlogic planning tool, for example, or the construction of the Container Exchange

Route.‖

However, news of the second fixed schedule barge service came as DP World Inland introduced a

congestion surcharge at both the port of Rotterdam and Antwerp, effective 16 April. It said waiting times

and ―distortions‖ in barge handling at the two ports had made planning very challenging for the company

and that despite efforts to engage with all stakeholders ―a workable permanent solution‖ to the issue had yet

to be found.

―After performing extensive trials to help reduce this adverse impact faced by DP World Inland at these

ports, the results have not seen a marked improvement and we foresee a negative trajectory in barge

handling going forward,‖ the company noted.

Intermodal operator Contargo has levied a congestion surcharge at Rotterdam and Antwerp since July 2017

and in a post on its website late last this week apologised to customers for delays in its barges at the two

ports of 12-48 hours.

PORA yesterday published an Interim review of inland container shipping sector consultations that it has

been facilitating, which it claims ―have yielded a number of tangible results‖. It added: ―These results show

that shippers, forwarders, barge operators, inland terminals, deep sea terminals and shipping companies take

the congestion issues in the port of Rotterdam seriously and want to make a joint effort to resolve them.‖

A total of 19 Dutch and international parties presently participate in the Inland Container Shipping Sector

Consultations. So far, there have been four plenary meetings, held since September 2017, discussing the

progress made by three working groups, each of which had been assigned a specific task.

One working group is responsible for fact-finding with regard to the relationships and balances of power

within the inland container shipping sector‘s logistics chain. A second working group was asked to identify

quick wins within the operational planning process. The third group worked to establish KPIs that can lead

to chain-wide insight into the performance of the inland container shipping chain, as well as crucial transfer

moments within consecutive links within this chain.

[Lloyd‘s Loading List]

16/04/2018

The shipping industry is under increasing pressure to act upon the Paris Agreement and reduce greenhouse

gas (GHG) emissions. The substantial emission reductions which must be achieved over the next decades

are expected to drive technology development and, in particular, the introduction of low carbon fuels.

Furthermore, authorities are increasingly paying attention to the consequences of hazardous NOX, SOX and

particle emissions at the local level. Around the world, air pollution is causing serious health problems and

premature death, and local air pollution will be subject to tougher regulations over the coming years.

Reducing emissions to air and introducing new propulsion technologies are key challenges for the

worldwide transport sector, including shipping. The world‘s future fleet will have to rely on a broader range

Shipping emissions: Assessment of selected alternative fuels and technologies

of fuels, propulsion solutions and energy efficiency measures.

DNV GL has published the paper Assessment of selected alternative fuels and technologies with the

objective to provide decision support for investments in ships over the coming 5 to 10-year period. The

paper focuses on technical parameters and limitations without accounting for local market conditions,

considerations and incentive schemes which may have a significant impact on competitiveness and the

uptake of alternative fuels and technologies.

All alternative fuel options are accompanied by benefits and challenges. The paper provides an introduction

to alternative fuels and technology solutions. It includes an overview of selected alternative ship fuels –

LNG, LPG, methanol, biofuel and hydrogen – as well as emerging technologies such as batteries, fuel cell

systems and wind-assisted propulsion.

[DNV GL]

16/04/2018

Air pollution from shipping has been significantly reduced around European coastlines and ports thanks to

the concerted action by the European Union and industry to reduce sulphur emissions from ships, the

European Commission said in a report released Monday.

The Commission report on implementation and compliance with the sulphur standards for marine fuels set

out in Directive (EU) 2016/802 relating to a reduction in the sulphur content of certain liquid fuels is the

first European Commission report on compliance with the Sulphur Directive, which regulates SOx

emissions from ships in European waters.

Since 1 January 2015, the Directive has required all ships operating in designated Sulphur Limit Control

Areas (SECAs), such as the North and Baltic Seas, to burn marine fuel with a sulphur content no greater

than 0.1%. For ships operating outside of SECAs, the Directive lowers the maximum sulphur content for

ships from 3.50% to 0.50% by 1 January 2020.

The European Report report released Monday shows high compliance by ships, particularly in the North

and Baltic Seas SECAs where 93% of ships inspected complied with the Directive. This compliance has

lead to a significant reduction in harmful sulphur dioxide concentrations in regions bordering the SECAs,

including up to a 60% reduction in Denmark, 50% reduction in the German North Sea, and over 20% in the

Rotterdam area, according to the report.

―This has more than halved sulphur dioxide (SO2) concentrations around ‗Sulphur Oxides Emission

Control Areas‘ since 2015 while the overall economic impacts on the sector remained minimal,‖ the EC

stated.

Karmenu Vella, European Commissioner for the Environment, Fisheries and Maritime Affairs said:

―Environmental rules deliver and protect our citizens‘ quality of life when all sides involved work together

to correctly apply them. The shared commitment by Member States, industry, and the maritime community

as a whole is paying off. People living around protected sea areas can breathe cleaner and healthier air. And

we have preserved the level playing field for industry.‖

Shipping emissions Europe: Commission publishes report on compliance with Sulphur

Directive

The report lists a number of factors as contributing to the success of the Sulphur Directive, including the

EU‘s support of mechanisms and technical assistance, the combination of voluntary and mandatory

reporting tools, the EU‘s financial support for the uptake of clean ship technologies, and synergies with the

International Maritime Organization.

In 2016, the IMO set 1 January 2020 as the entry-into-force date of the global 0.50% sulphur cap, matching

the European regulations.

[gCaptain]

16/04/2018

By Jean Chemnick, E&E News reporter

The International Maritime Organization (IMO) took its first halting steps toward greenhouse gas regulation

Friday, despite the objections of the Trump White House.

65 countries, led by the European Union and Pacific islands, succeeded in shepherding a resolution through

the IMO calling on the shipping industry to shed at least half its emissions by 2050 compared with 2008

levels. The measure was approved during the IMO's two-week meeting in London, where only members of

a specific committee had a vote.

The resolution puts the shipping industry on a decarbonization trajectory for later in the century. It's

nonbinding, but a necessary step toward mandatory regulation in the future. The IMO will hold an October

gathering to consider a timeline and action plan.

Greens heralded the move as a first step toward bringing the sector in line with the world's quest for a safe

climate. "The agreement today is an opportunity to bend this curve to align with the Paris Agreement, but it

needs to translate into urgent action — now," said Manuel Pulgar-Vidal, leader of the World Wildlife

Fund's global climate and energy program.

The agreement, which also set the stage for a ban on heavy fuel oil that contributes to black carbon

emissions in the Arctic, was opposed in the end by three countries: Saudi Arabia, Brazil and the United

States.

Japan, which championed a weaker resolution backed by the shipping industry that would have capped

emissions at 50 percent by 2060, joined with the majority.

The U.S. opposition surprised many because the world's largest economy has generally been a low-key

member of the U.N. shipping body across administrations. But State Department negotiator Andrew

Rakestraw in the first week of talks came out strongly against the adoption of a resolution calling for any

absolute emissions cuts, implementing a strategy left to him by former White House energy adviser George

David Banks.

Shipping emissions: Regulators defy Trump team in move to slash emissions

In his statement opposing the resolution late last week, Jeffrey Lantz — the Coast Guard official who led

the talks for the United States in the second week — declared, "We do not support the establishment of an

absolute reduction target at this time.

"In addition, we note that achieving significant emissions reductions, in the international shipping sector,

would depend on technological innovation and further improvements in energy efficiency," said Lantz,

according to sources present at the talks, which are closed to reporters.

The United States also objected to language hinting at divisions between future responsibilities by

developed and developing countries, though it's not clear how that divide would play out in the shipping

sector. Brazil and Saudi Arabia separately panned the resolution as too stringent, while some countries

backed the resolution but registered concerns that it wouldn't go far enough.

Europe and the Pacific islands originally proposed a 70 to 100 percent cut in shipping emissions by 2050, a

target aimed at bringing the sector's burgeoning emissions in line with the Paris Agreement's goal of

containing warming to well below 2 degrees Celsius.

While some advocates praised the resolution's language on heavy fuel oil and black carbon, Paul Bledsoe, a

former climate adviser at the Clinton White House, called it insufficient. "The IMO claims they'll enact a

ban on heavy fuel oil use by shipping next year, but they've left these promises unfulfilled before," he said.

Shipping contributes only 2 to 3 percent of today's global emissions, but its emissions are set to grow by

between 50 and 250 percent if left unchecked. The goal set by this resolution would preclude new

oceangoing vessels from depending on fossil fuels starting in the 2030s, according to an analysis by the

UCL Energy Institute in Britain.

The IMO process differs from the international climate talks conducted under the U.N. Framework

Convention on Climate Change in that a simple majority can forge an agreement — as was the case last

week. It also differs in that the IMO can set mandatory regulations, while the U.N. climate process cannot.

Faig Abbasov of the European Federation for Transport and Environment said that short-term regulations

could be in place in a few years under an optimistic scenario. The resolution could also open the door for

the creation of a market-based mechanism — a carbon tax or other program — that would govern global

shipping emissions. Such a system would likely require the negotiation and ratification of a new treaty,

which would take a decade or longer. But some speculate that the current treaty governing maritime

pollutants could support such a program.

As a member of the IMO, the United States would be obligated to impose IMO regulations on ships sailing

under its flag, but there is no enforcement mechanism if it does not. Those regulations would be imposed on

any ships coming to port in countries that impose IMO regulations.

"In this case, even if the U.S. doesn't like IMO, even if Trump gets re-elected and decides to keep on

boycotting everything on climate and not enforce IMO regulation on U.S. ships, ships will still have to be

compliant if they want to sail elsewhere," said Abbasov.

[E&E News]

16/04/2018

Hamburger Hafen und Logistik AG (HHLA) will be introducing lithium-ion battery powered automatic

guided vehicles (AGVs) to move containers at HHLA Container Terminal Altenwerder (CTA) between

ships and the yard, in an effort to improve Hamburg‘s air quality.

The new vehicles will be totally emission-free and three times more fuel efficient than previous

diesel-powered models – featuring a charge time of only one and a half hours. They will also help to

stabilize the power grid at the port, by precisely extracting or feeding energy as necessary when positioned

at a charging station.

Integrated software will track the amount of renewable energy being generated and will signal for the

AGVs to feed energy back into the grid if there is a shortage – and will act similarly in the case of an

energy surplus, signalling for the AGVs to begin charging. This system allows the AGVs to work as

flexible power storage units to help balance the gap between power generation and consumption.

The German Ministry of Environment and Energy will provide approximately €8 million in funding from

the European Regional Development Fund (ERDF) for HHLA‘s energy transition project.

Lithium-ion battery-powered automatic guided vehicles (or AGV) have been successfully prototyped at

CTA since autumn 2016 – leaving the terminal with six function charging stations for the vehicles already

installed. Throughout the coming weeks 25 electric AGVs will become operational at the CTA – and by the

end of 2022 almost 100 AGVs at the terminal will be switched over to a lithium-ion battery drive, and over

18 charging stations will be installed.

HHLA estimate that the switch to electric AGV‘s will reduce the annual emissions of CO2 by 15,500

Terminal operators Germany: HHLA will introduce lithium-ion battery powered AGVs at

Container Terminal Altenwerder

tonnes and nitrogen oxide by 118 tonnes.

[Port Technology International]

16/04/2018

French CMA CGM Group and Lekki Port LFTZ Enterprise (LPLE), the promoters of Nigeria‘s Lekki Deep

Sea Port, announce the signing of a Memorandum of Agreement to operate Lekki Port‘s future container

terminal.

The future Lekki Deep Sea Port will be developed, built and operated by LPLE, a joint venture enterprise

led by the Tolaram Group, the Lagos State Government and the Nigerian Ports Authority (NPA).

As the container terminal operator, CMA CGM, through its subsidiary CMA Terminals, will be responsible

for marketing, operations and maintenance of the container terminal at Lekki Deep Sea Port.

Upon completion in 2020, Lekki port will have 2 container berths and will be Nigeria‘s first deep sea port.

Upon completion, the container terminal will be equipped with a 1,200-meter-long quay as well as 13 quay

cranes and will have a capacity of 2.5 million TEU. With its 16-meter depth, it will allow the Group to

deploy ships with a capacity of up to 14,000 TEU. Operations are planned to start end of 2020.

[American Journal of Transportation]

16/04/2018

By Andres R Martinez and Ignacio Olivera Doll

A shortage of green stickers is holding up millions of dollars‘ worth of imports at Argentine ports.

Customs officials affix the stamps to goods that are approved to enter the country, but the supply was

exhausted on April 9. Now items such as clothes, watches and motorcycles are stuck in warehouses, unable

to be sold to the nation‘s eager consumers.

The timbres, as they are known in Spanish, are designed to reduce fraud and trace imports. But to most

Argentines they feel like leftovers of the excessive bureaucratic procedures that have made the South

American nation one of the world‘s most closed-off economies. And they‘re a reminder that despite all of

President Mauricio Macri‘s efforts to increase trade, he still has a long way to go to make local markets

more efficient.

The good news is that the government has proposed a solution: Use an orange stamp. But nothing in

Argentina is ever simple -- the change needs to be published in the country‘s official gazette before it can

take hold.

Terminal operators Nigeria: CMA CGM signs agreement with Lekki Port to operate future

container terminal

Port development Argentina: Sticker snafu has millions in imports stuck in warehouses

The country‘s tax agency attributed the green-stamp shortage to delays at the government agency that prints

them and promised the situation would be resolved by the start of next week. It said as many as 1,400

shipments from abroad had been affected by the issue.

[Bloomberg]

16/04/2018

Ismail Dilawar and Chris Kay

Just a pledge from China to help upgrade Pakistan‘s train network has prompted authorities in the South

Asian nation to overhaul its colonial-era rail infrastructure.

For software businessman Farrukh Malik, the change was palpable. As he clambered aboard the 22-hour

express service from coastal Karachi to the northern capital, Islamabad, Malik, 40, said he‘d been a

passenger on the line since he was a child. ―The introduction of trains like Green Line which has lesser

stops and runs strictly as per schedule is a great difference,‖‘ he said as the train whistled to announce its 10

p.m. scheduled departure.

Beijing is set to upgrade a 1,163-miles track from Karachi to Peshawar near the Afghan border with an $8

billion loan to Pakistan. It‘s part of Chinese President Xi Jinping‘s Belt and Road trade initiative, which

includes $60 billion of badly-needed works financed in Pakistan.

Though approval for the Chinese-funded upgrade has been delayed — amid wrangling over financing —

Pakistan‘s Interior Minister Ahsan Iqbal said in a statement on Wednesday that the first phase of the work

would start this year.

In the past decade, the nation‘s rail network had become a byword for corruption, delays and filth. Now the

unprofitable state-owned Pakistan Railways has doubled its revenue to 40.1 billion rupees ($362 million) in

the past five years and aims to do so again over the same time period, Parveen Agha, secretary of Pakistan

Railways, said in an interview in Islamabad.

―This is one of the biggest opportunities for us,‖ Agha said. ―This is the upgradation of the entire railway

system.‖

To help ease increasing congestion in Pakistan‘s second-largest city, a $1.6 billion metro-line in Lahore —

funded by Chinese banks — is scheduled to open before this year‘s vote. In total, Islamabad says it has

rehabilitated more than 300 locomotives, over 1,000 passenger coaches, nearly 5,000 freight wagons and 31

stations. Pakistan also purchased 75 high-powered locomotives last year in a $413.5 million deal with

General Electric Co.

The drive is already attracting more passengers, up 25 percent to over 52 million people since 2013.

Working through the carriages, 40-year-old Rana Iftikhar Ahmad has been selling snacks on trains for last

15 years and said his sales have grown as much as 50 percent in recent years. Five years ago a train from

Karachi would take four days to get to Lahore, he said. That same route now takes just over half-a-day on

the Green Line.

Railways Pakistan: Long-distance rail to be overhauled with China’s help

―Things were so backward, now we are reaching our destinations on time,‖ Ahmad said as the train rattled

along the verdant Punjabi countryside. ―Now more passengers are using the rail and so our sales have

increased.‖

The government is also eyeing increased freight trade. With national elections scheduled for July and with

the economy facing headwinds due to widening external deficits, Pakistan wants to increase exports to

China, Iran, Turkey, Afghanistan and even arch-rival India through rail links, according to plans seen by

Bloomberg.

However, many of the routes are still dilapidated and regular travelers talk about avoiding rats and trying to

stay comfortable in packed carriages with hard wooden benches. On the Karachi-bound Awam Express

from Peshawar on April 1 the air-conditioning broke down in one of the coaches in the stifling heat.

Along with decades of under-investment, the rail company has also suffered from ingrained graft. The

corporation sacked ―a lot‖ of officials involved in procurement scams in recent years, Agha said, without

providing details. She noted the organization is now staffed by ―people of good repute.‖

―Corruption could be a big challenge for this project,‖ said Muzzammil Aslam, the chief executive officer

at brokerage firm EFG Hermes Pakistan Ltd. But if implemented ―it will make transportation cheap and

competitive.‖

Security is also a concern. Since 2000 at least 96 people have been killed and 480 injured in 137 attacks on

Pakistani trains, according to the South Asia Terrorism Portal. A bomb blast in October wounded five

passengers in the restive southwestern province of Balochistan. To bolster safety, authorities have raised a

special security force of 700 commandos and deployed extra police to the trains in the past four years.

Back on the Green Line, passengers say they enjoyed the ride as it pulled into its final stop on time at 8

p.m., despite an hour-long delay due to a fatality on the track. ―We have taken three to four trips so far and

it looks better now,‖ said Asma Rafique, a 45-year-old housewife travelling onward to Peshawar. ―With

Chinese investment Pakistan Railways can be the best.‖

Since 2013, Pakistan has seen far fewer bombings, which explains why annual tourist arrivals have more

than tripled. Let‘s hope that the country‘s ―Emerging Pakistan‖ campaign has a tailwind.

[Bloomberg]

16/04/2018

A new study using Sea Around Us‘ reconstructed catch data indicates that, in the past 60+ years, the

practice of towing giant fishing nets along the sea floor has caused the extraction of 25 million tons of fish

that live 400 meters or more below sea level, leading to the collapse of many of those fish populations.

The new estimates suggest that 42 percent more fish have been caught by countries than they reported to

the Food and Agriculture Organization of the United Nations. ―Our study shows that there is systematic

under-reporting of the real catch. This means that fisheries managers are making decisions based on

Oceans: Bottom trawling causes fish population collapse

incorrect data, which has dramatic consequences for marine ecosystems,‖ said Lissette Victorero, lead

author of the paper and a Ph.D. student at the National Oceanography Centre in the U.K.

The study Out of sight, but within reach: A global history of bottom-trawled deep-sea fisheries from >400

m depth examines the state of 72 deep-sea fish species caught by bottom trawlers around the world, many

of which were exploited to unsustainable levels. For example, catches of the Roundnose Grenadier were

estimated to be greater than 60,000 tons in 2001 in the Northeastern Atlantic, but the stock was overfished

so fast that a moratorium had to be imposed in 2006 in Norwegian waters.

―One of the reasons behind this collapse is the fact that trawls are not selective, that is, they catch

everything and anything, which means that young Grenadiers that have not yet reached full reproductive

development are caught along with adult grenadiers, decreasing the ability of the population to recover,‖

said Deng Palomares, co-author of the study and the Sea Around Us Project Manager at the University of

British Columbia.

Palomares says that most of the fisheries analyzed lasted for around a decade, because deep-sea fish

generally have low fecundity, grow very slowly and live around the seamounts and ridges that can be razed

to the ground by trawls.

Besides depleting the stocks, bottom trawling of deep fish does not generate much in the way of marketable

fish. Immature individuals are thrown overboard because they generally don‘t meet minimum size

requirements, while non-targeted species caught as bycatch are also returned dead to the sea.

The new estimates presented by Victorero, Palomares and their colleagues suggest that six million tons of

fish were discarded over the study period while deep-sea fisheries only contributed 0.5 percent of total

fisheries landings. ―This means that globally their economic importance is trivial,‖ the paper states.

The desire to keep the business going drives fleets to continuously look for new species to fish, particularly

once they have fished out a stock or are subjected to new regulations. ―So what we are seeing is a cycle in

which trawlers start targeting fish that they were already dragging up as bycatch. They create new markets

for them until they also exhaust the stock with regulations lagging behind,‖ Victorero says.

The impact of trawling goes beyond the capture of fish populations. As they are dragged on the seabed,

trawls remove sponges, corals, sea stars, sea cucumbers and anemones, all of which play important roles as

food source or habitat for fish. They also destroy seamounts and other fish homes, turning former thriving

habitats into large cleared areas.

[Maritime Executive]

Advance your career by gaining Professional Recognition. Professional recognition is a visible mark of

quality, competence and commitment, and can give you a significant advantage in today‘s competitive

environment.

All who have the relevant qualifications and the required level of experience can apply for Professional

Membership of IAMSP.

The organization offers independent validation and integrity. Each grade of membership reflects an

individual‘s professional training, experience and qualifications. You can apply for Student Membership as

per following :

Fellow (FIAMSP)

To be elected as a fellow, the candidate must satisfy the council that he/she:

Has held for at least eight (8) years consecutively a high position of responsibility in shipping or related

business.

Has distinguished himself/herself in shipping practice.

Is a principal in a firm or a director of a company in the business or profession.

Members in this grade are entitle to use the initials FIAMSP After their names.

Full Member (FMIAMSP)

Individuals holding an internationally recognised marine qualification, or who can prove that they have

practiced on a full time basis for a minimum of five (5) years as a consultant or marine surveyor.

Individuals who, by producing written reports can demonstrate that they have practiced marine surveying or

consultancy for at least five (5) years.

Individuals whose qualifications or experience shall be considered appropriate by the Professional

Assessment Committee.

Members may use the initials FMIAMSP after their names.

Associate Member (AMIAMSP)

Associate Membership shall be open to any person, partnership, company, firm or other corporate that does

not own a Ship but is engaged in ship operating or ship management. Associate Members can nominate one

(1) person to represent them in the Association. Associate Members are entitled to attend General Meetings

and to participate in discussion at such meetings but shall not vote or stand for election to the Board of

Directors.

Technician (TechIAMSP)

Individuals holding a recognised qualification, for example Inspector level 2 or higher (NACE, FROSIO,

ICorr), RMCI and IRMII, NDT Technicians (CSWIP), for example gauging personnel, divers or other

surveyors with at least three years full time practical experience in a marine related field. Technician

Members may use the designation TIAMSP after their names.

Affiliate (AFFIAMSP)

Graduates who do not meet the criteria for Full or Associate Membership and are continuing to train and

gain experience prior to applying for Associate Membership

Student (SIAMSP)

Individuals who are enrolled in training programs related to the maritime or shipping will be appointed as

student members of the Association for the duration of their course.

PROFESSIONAL MEMBERSHIP

Fellow (FIAMSP)

Full Member (FMIAMSP)

Capt. Siddig Atif

Qatar

M. MOREIRA JOAO PAULO

Portugal

Capt. Babasahib Mukadam

Abdul rauf

Qatar

Affiliate (AFFIAMSP)

M. Peter Harold Tedder

United Kingdom

M. Robinson Mark

United Kingdom

M. Jasim Aqeel

Iraq

M. Kirton Christopher

Singapore

M. Hubert Louis-philippe

France

Mrs. HELENA ISABEL

CAMPOS LANÇA PALMA

Portugal

LAST MEMBERSHIP

April SUSTAINABILITY. DIGITISATION. COLLABORATION.

The Hallam Conference Centre, London

April

CYBER SECURITY SEMINAR

Cavendish America Square, London, UK

April

Arctic Shipping Forum 2018 - Helsinki (NI members login below to receive 20% discount)

Helsinki Congress Paasitorni, Paasivuorenkatu 5 A, 00530 Helsinki, Finland

April London Branch Conference - The future of maritime professionals

Novotel, Victoria Street BS1 6HY BRISTOL UK

April Singapore Maritime Week 2018

Singapore

April SHIPPING 360 TRAINING COURSE

The Hallam (Cavendish Venues), London

April Singapore Maritime Week 2018

Singapore

February

12th Arctic Shipping Summit – Montreal

Montreal - venue TBC

19

20

21

UPCOMING EVENTS SUMMARY

23

20

21

27

27