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Hapag-Lloyd increases reefer fleet by 11,100 containers

PostTime:2018-08-17 10:34:21 View:31

Hapag-Lloyd is investing in its container fleet and has ordered 11,100 state-of-the-art reefer containers. The new containers will be integrated to the company’s existing fleet of 91,000 reefer containers, with delivery gradually starting in August and to be finally completed by December 2018. Already today, Hapag-Lloyd has a significant footprint in the refrigerated container market and the company has continuously invested in new reefer equipment throughout the past years and also renewed a significant share of its fleet. Since 2015 alone and including the most recent order, the liner shipping company has purchased a total of 30,550 new reefers to ensure that it can offer modern equipment and sufficient seasonal availability to its customers, particularly during peak times such as harvesting seasons of fruits or vegetables. “We experience very positive feedback from our clients on our ability to deliver consistent quality services in the reefer business. Furthermore, we see increasing demand from clients to transport temperature sensitive goods. To benefit from additional opportunities in this attractive market segment, we have decided to increase our reefer fleet,” said Clemens Holz, Director Reefer Products. The production of the new reefers has already begun, with the first series of 40′ containers. Two thousand of the new containers are equipped with “Controlled Atmosphere” – a technology used to slow down the ripening process and to extend the shelf life of fruits and vegetables. The state-of-the-art containers will also have cooling units with the highest level of efficiency. Thanks to optimised power control, they will also consume significantly less energy, without any change in performance and temperature precision. “The new reefer containers undergo intensive tests before they are made available for our customers to transport their valuable freight,” said Frank Nachbar, Director Container Engineering and Maintenance. In addition to food products, Hapag-Lloyd also transports other sensitive products in reefer containers, such as high-value pharmaceuticals. The new order will clearly expand the company’s footprint in this strategically important niche market.

Diana Shipping Secures Work for Panamax Bulker

PostTime:2018-08-17 10:26:03 View:30

Athens-based dry bulk owner Diana Shipping has entered into a time charter contract with CJ International Italy Societa Per Azioni for one of its Panamax dry bulk vessels. Under the deal, Diana’s 74,381 dwt Panamax bulker Coronis would be hired for a period of twelve to fifteen months. The gross charter rate for the vessel is USD 8,300 per day for the first sixty days of the charter period and USD 11,300 per day for the balance period of the time charter. The charter commenced on August 11, 2018. Diana Shipping expects to generate around USD 3.89 million of gross revenue for the minimum scheduled period of the time charter. The 2006-built Coronis was previously chartered to Narina Maritime at a gross charter rate of USD 9,000 per day.

ABS, LR release upgrade for Common Structural Rules software package

PostTime:2018-08-17 09:41:00 View:34

Common Structural Rules Software, a joint venture company formed by ABS and Lloyd’s Register (LR), has released a software upgrade that simplifies compliance with current and pending IACS Common Structural Rules (CSR). “As requirements change, it is imperative for classification societies to provide services and solutions that keep pace,” says ABS Senior Vice President, Engineering & Technology, Derek Novak. “By updating this software, we ensure our tools are effective and provide the best possible guidance to end-users,” he added. “The Common Structural Rules provide the only industry route to compliance with IMO’s Goal-Based Standards for tanker and bulk carrier structures,” said LR Marine and Offshore Business director Nick Brown. “By working together, LR and ABS have provided fully up-to-date straightforward and accessible tools for the whole industry to use when applying CSR.” Improvements to this leading software facilitate compliance to existing and future IACS Common Structural Rules, providing users with an easy way to evaluate designs. Developed from the technical strengths of LR and ABS, version 2.5 of the CSR Prescriptive Analysis and CSR Finite Element (FE) Analysis software allow assessment of whole vessel structures – including new bulk carrier and oil tanker designs – using compliance information for the current CSR, which entered into force on July 1, 2015, as well as for the rule changes that just came into force on July 1, 2018. Both class societies will use these tools to evaluate new designs against the CSR. The updated CSR Prescriptive Analysis software can be used on both Windows 7 and Windows 10. A summary report provides required and offered scantlings with graphic representation of deficiencies. Reports summarize dominant criteria for each structure as well as data for every parameter value. Used with CSR FE Analysis, this complete tool makes verifying CSR compliance possible with minimal effort. A new user interface for CSR FE Analysis software enables automatic picking or manual selection to display the stress readout point for Cruciform Flange, Cruciform Web and Bracket Toe hotspots. Results are added to verification results for Fatigue Assessment. The software is now employed by over 1,600 users. Regular updates for additional structural coverage and functionality will address ongoing CSR changes.

Lines’ lack of capacity control have led to poor results: Alphaliner

PostTime:2018-08-17 09:38:20 View:30

Calling out the container shipping lines for being the source of their own misery, Alphaliner said in its weekly newsletter that an inability to control capacity over the last 12 months has led to the current situation. “The disappointing results and earnings downgrades, announced by various carriers so far this year, can be attributed directly to shipping lines’ collective inability to keep capacity in check over the last twelve months,” Alphaliner said. It added: “The seeds for the current weak container freight market were sown in the second half of 2017, when carriers failed to curb the expansion in containership supply. Despite clear signs of market over-supply since July 2017, carriers failed to act and remove excess capacity.” The analyst pointed out that the active fleet grew by 9.0% in the fourth quarter of 2017, and swelled by another 10.7% in the first quarter of 2018, and still continued rising another 8.2% in the second quarter. Correspondingly, average freight rates, measured by the CCFI, fell 15% from 877 in July 2017 to 743 in May 2018, while bunker prices rose more than 40% over the same period. Alphaliner noted this resulted in an unusual situation during the winter slack season at the end of 2017, when not even a single East-West service was removed from the overall trade route portfolio. Meanwhile, in the first half of 2018, carriers resumed their aggressive expansion with the introduction of new vessel capacity on the East-West routes, as well as injected substantial capacity into the Far East-West Coast South America routes, and into the Far East to Middle East Gulf and Red Sea trade. “The results of this have been clearly negative for the carriers, who blame supply side pressure for their poor first-half results,” Alphaliner said. And to add to their woes, the current oversupply situation has meant carriers are largely unable to recover bunker price increases from shippers and this has also contributed to their dismal results. Alphaliner noted that while in the past three months, carriers have finally started to backtrack and implement capacity cuts on some of the most severely affected trade corridors, overall active fleet growth remains 7% higher as at the beginning of August, compared to a year ago. Among the cuts Alphaliner pointed out are on the South America and Red Sea/Middle East Gulf routes, as well as more recent cuts now focussed on the transpacific trade, where two Far East-USWC strings have been removed, with another one to follow at the end of August. Finally, one Far East-USEC string is to be withdrawn in September, it concluded.

US pork giant: In 'sell it or smell it' trade, what China won't buy others will

PostTime:2018-08-17 09:30:38 View:17

CHINA's pork imports are declining as a trade dispute with America and domestic prices fall slow imports, according to WH Group Ltd, reports Bloomberg. WH Group shipped more pork from the US to Japan and Korea in the first half and will continue to change its trade flows should tensions remain, said CEO Wan Long.  Lower hog prices in China boosted consumption of domestic meat, while tariffs on American pork further eroded the competitiveness of imports, the company said in a statement. China is the world's biggest pork producer, consumer and importer and boosted duties on US pork to 37 per cent in April and then to 62 per cent in July.  That's left American producers seeking ways to make up for trade-war losses and led to a 21 per cent slump in American pork exports to China in the first half, said Bloomberg.  Even without the tariffs, surging domestic production lowered the competitiveness of American pork, according to WH Group. Said Smithfield Foods CEO Kenneth Sullivan: "True, our volumes to China dropped 20 to 30 per cent, but our volumes to Korea they went up 50 per cent.  "It's really a question of finding the market for this need. Because if you produce it, you don't throw it away, you ultimately sell that meat. It's a sell-it-or-smell-it business. Meat will get distributed," said Mr Sullivan. Average pig prices fell 25 per cent in the first half, before rebounding 23 per cent and were at CNY14.07 (US$2.04) per kilogramme this week, according to Shanghai JC Intelligence data.  Hog prices may average between CNY13.3 and CNY13.5 this year, said Ma Xiangjie, president of WH Group's Shuanghui Development unit.

Safety Achievement Award from Chamber of Shipping of America to Stena Blue Sky

PostTime:2018-08-16 10:13:11 View:12

The award was recently given for the professional seamanship and conduct when Stena Blue Sky effected a rescue operation after spotting a fisherman and recovering him from wreckage between the waters of North Korea and Japan 26th October 2017. “Events of this nature are subject to international laws and for us, acting in accordance with these laws is a matter of course. Nevertheless, it is important that attention is drawn to them – in this case, by the Chamber of Shipping of America. I would also like to take the opportunity to express my appreciation to our crew on board for having acted professionally and in accordance with our expectations in this situation”, said Erik Hånell, President & CEO, Stena Bulk. The Story behind: Stena Blue Sky was involved in a MOB (Man Over Board) rescue operation, during her passage from Yung An Taiwan to Prigorodnoye, Russia for loading. The boat was found in upturned position with nobody seen on or near the boat initially. As the vessel approached closer we were able to see a man’s head emerging above the bottom of the boat. It appears that the casualty was trapped underneath the wreckage for five days, but managed to make a hole in the boat’s bottom (made of wood). It is obvious that he was not completely submerged in the water and that is why he did not suffer from hypothermia. The boat was found in an upturned position with nobody seen on or near it. According to master report “the casualty is in good, stable condition. His hands and feet suffered from being in water for prolonged time and he feels the pain as he recovers. There are minor bruises and cuts on his feet as he was not wearing the shoes at time of rescue. Cuts were treated, no bleeding. The casualty was provided with dry and clean clothing, warm food and a cabin. One crew member is continuously monitoring his condition”. Since the casualty did not speak any language understood by the crew, they communicated by means of notes, which were translated ashore. He does not speak any English, Russian or other language known to the crew. The Vessel is in contact with Charterers and local authorities to identify the casualty origin and most suitable location for disembarkation.

‘Beaching’ of vessels for shipbreaking – legal, illegal or somewhere in between?

PostTime:2018-08-16 10:02:41 View:14

Commercial vessels have a ‘lifespan’ and when they reach the end of it, they are recycled. The European Commission estimates that up to 1,000 ships are recycled each year world-wide. In addition to valuable and re-useable products like steel, ships also contain hazardous waste and pollutants that are harmful to people and the environment. There has been increasing public and political concern over the practice of some shipbreaking facilities to ram vessels onto tidal flats where workers break down the vessels in ways that are dangerous for the workers and damaging to the environment. To address the hazards, the International Maritime Organization (IMO) adopted the Hong Kong International Convention for the Safe and Environmentally sound Recycling of Ships. The Hong Kong Convention provides a ‘cradle-to-grave approach’ – a system of control and enforcement over a ship’s lifetime from design, through construction, operation and up to the recycling stage. The Convention establishes mandatory requirements on shipowners to ensure the safe and environmentally sound recycling of ships. The Convention also applies to Ship Recycling Facilities. In general, the Convention requires Facilities “to establish management systems, procedures and techniques which do not pose health risks to workers or the population in the vicinity of the Facility and which will prevent, reduce, minimize and to the extent practicable eliminate adverse effects on the environment caused by Ship Recycling.” Adopted in 2009, the Hong Kong Convention is not yet in force. Entry into force will only occur 24 months after ratification by 15 States, representing 40 per cent of world merchant shipping by gross tonnage. Today the Hong Kong Convention has been ratified by only six nations – Belgium, the Congo, Denmark, France, Norway and Panama. Shipping is global and the ideal way to ensure a uniform approach to ship recycling is by an international convention. Uniformity provides certainty and an even playing field, reducing the financial incentives for practices that endanger people and the environment. Yet the ratification process can be painfully slow. The European Union partially filled the gap by regulating ship recycling based on terms modeled on the Hong Kong Convention. The EU regulations apply to vessels that are flagged in the EU irrespective of where the recycling takes place. The EU Ship Recycling Regulation entered into force in 2013. One of the principal components of the Regulation is the certification of facilities, the so-called “European List” of approved facilities which meet the requirements of the Regulation (and consequently would also meet the requirements of the Hong Kong Convention). The first “European List” of approved facilities was adopted by the Commission in December 2016. It then included 18 shipyards, all located in the EU. The list was updated in May 2018 and now includes 21 shipyards. The European Commission has received applications from shipyards outside of the EU and the applications are pending. As of 1 January 2019 all large sea-going vessels sailing under an EU Member State flag are required to use one of the approved ship recycling facilities. The majority of ships, however, are recycled at sites outside of the EU and mostly in South Asian sites where the vessels are ‘beached’ and broken up largely by hand. Commonly, ships are sold to buyers who reflag and may then have the financial incentive to recycle at a site outside of the EU where the vessel is beached and dismantled in conditions that do not meet the EU standards. On the face of it, this seems to be legal because the vessel is not flagged in an EU country after sale – but beware. The Rotterdam District Court held a Dutch company responsible for breach of the EU Waste Shipment Regulation when the shipowner sold to a buyer who then sent the vessels for scrapping on beaches in South Asia. The court found that when the ships left the ports of Rotterdam and Hamburg in 2012, the intention was already to demolish the ships which qualified the ships as “waste”, even though they were still seaworthy, certified, insured and operational. A shipowner who sells a vessel at the end of its lifespan to a buyer who then contracts for shipbreaking at a facility that beaches may not be breaking the law. Nonetheless, there can be reputational and even financial consequences. Ships can be easily tracked to their final destination and a non-governmental organisation (NGO) may ‘name and shame’ the vessel owner despite the fact that the recycling contract is made by the buyer. Media is quick to pick up such stories. Increasingly, investors are also shifting away from companies whose ships end up beached and dismantled in conditions that are harmful to workers and the environment. So, to conclude, the practice of beaching vessels for recycling is illegal in parts of the world and for all European flagged ships. While the practice may not at this time be illegal in other circumstances, Owners who sell end of life ships to buyers knowing that such buyers are likely to dismantle the ship in an unsafe and environmentally unsound manner, may, at the least, face reputational risk. At the worst, such sellers may find themselves charged with violation of waste shipment regulations.

ICTSI Papua New Guinea unit backs Baruni primary school

PostTime:2018-08-16 09:55:18 View:14

Port operator International Container Terminal Services Inc. (ICTSI) continues to touch the lives of communities within its Papua New Guinea (PNG) operations as wholly-owned subsidiary Motukea International Terminal (MIT) donated school equipment to the Baruni Primary School in the Motu-Koitabu village in Port Moresby. Together with its corporate social responsibility (CSR) arm ICTSI Foundation, the company donated 150 student desks, six teacher desks and 300 chairs for elementary school students, made possible through a memorandum of agreement with the Baruni Community Development Association (Bacoda). The ICTSI Foundation is also giving technical and logistics support for the implementation of various high-impact programmes and projects in PNG. The government-run primary school, built during the colonial period, serves the communities of Baruni, Tatana, Kanudi and Koukou, as well as Roku further west of Motukea Island. Baruni Primary School is no exception from the many other schools in the less developed country in dire need of schooling materials and facilities, with students forced to sit on the floor in dusty conditions. “More than helping improve the ports infrastructure in countries where we operate, ICTSI continues to touch on providing greater opportunities for marginalized and vulnerable sectors in the society, children in particular. Our support to the Baruni primary school, a vital facility within the immediate hinterlands of our Motukea concession, marks our continuing emphasis on education as a powerful agent in shaping the course of the community and the country,” says Christian Gonzalez, ICTSI global corporate and Asia Pacific head. Edward Muttiah, ICTSI South Pacific ceo, said that the company is delighted to be an active on-ground partner of the Baruni community in advancing their wellbeing and long-term interest. “We are going to be around for the next 25 years,” Muttiah told teachers, students and parents of the Baruni school during the turn-over of new equipment in early August. “Yet, we have stepped up to play our part in supporting the communities within which we operate.” He added: “We are your partners for the long term. This presentation is just a token of what we wish to bring to the communities. We are indeed privileged and humbled to be your partners.” The ICTSI PNG chief likewise encouraged students to take their education seriously and chase their ambitions. “I want you to live your dream. Maybe you want to be prime minister, or a governor, a doctor, a lawyer or a pilot! You can become whatever you want if you work hard towards it. Let nothing be a barrier. But let a good education be your foundation,” Muttiah said. Opao Udia, chairman of the Motu-Koitabu Assembly noted that the Baruni community has not received any tangible help for many years. “This school, which was built during the colonial era, has produced many of the country’s brightest minds but still remains the same in its deteriorating state,” he said. “We would like to acknowledge ICTSI, who incidentally joined the community in May this year, for helping us and are already providing.” Iduhu Erue Igo, Bacoda chairman likewise appealed to the students and teachers to bring value and lift the image of the school using the new furniture. Igo added that they will continue to work hand-in-hand with ICTSI to bring meaningful change to the community. Fully committed in advancing the interests of port stakeholders in Papua New Guinea, ICTSI has other plans currently in the pipeline to support Motukea’s sustainable development, including a water supply project for the Baruni community.

Cosco Shipping Ports July throughput up 12% to 8.6m teu

PostTime:2018-08-16 09:53:55 View:11

Cosco Shipping Ports has continued its strong and steady pace of growth in July, with overall throughput rising 12.1% to 8.59m teu, led by a stellar performance at its Bohai Rim ports and overseas terminals. The Bohai Rim region saw throughput rise 21.5% to 1.69m teu from 1.39m teu in the previous corresponding quarter. This was largely driven by a good gains at the Dalian Container Terminal, where volumes rose by half to 870,500 teu. The other two key regions in the Yangtze River Delta and the Pearl River Delta saw declines or flat growth. Volumes at the former fell 2.5% to 1.64m teu while at the Pearl River Delta, which remains the biggest throughput contributor by proportion, volumes barely changed, falling 0.8% to 2.47m teu from 2.49m teu. The Hong Kong terminals within the cluster put in the worst performance, falling 16.6% to 259,900 teu. Among the other regions, it was left to the newer ports in the southeast coast and southwest coast to bump up the overall figures, where the former saw throughput rising 8.0% to 468,700 teu and Guangxi Qinzhou International Container Terminal, the sole terminal on the southwest coast, had a steady 5.4% rise in volumes to 118,700 teu. Meanwhile volume growth at Cosco Shipping Port’s overseas terminals continues to roar along, leaping 42% to 1.20m teu.  

Seatrade Maritime Middle East 2018 to highlight significance of cybersecurity in global maritime sector

PostTime:2018-08-16 09:53:39 View:9

Seatrade Maritime Middle East – the maritime meeting place for the Middle East held biennially in Dubai – is set to tackle the pertinent issue of cybersecurity in the increasingly technology-dependent global maritime industry in light of the costly, growing attacks targeting major international shipping companies. To be held at the Dubai World Trade Centre from October 29 to 31, 2018, under the patronage of H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, the Seatrade Maritime Middle East exhibition and conference will highlight the nature of known cyberthreats, their serious impact on the maritime community, the risk factors involved, and effective measures combatting the evolving cybercrimes. Stakeholders and senior executives from all over the world have identified cybersecurity as a topic of global importance especially after the International Maritime Bureau’s warning that shipping is becoming the ‘next playground for hackers.’ There are now mounting calls for companies to prioritize their cybersecurity measures as a result of this valid concern. Emma Howell, Global Head of Marketing, Seatrade Portfolio, said: “It is highly encouraging that stakeholders are now coming together to discuss the subject of cyber security in the maritime industry. The industry has already implemented contingency plans, learning from serious incidents of cyberattacks involving prominent shipping firms. However, we admit that much still needs to be done and, as such, we are putting the spotlight on the importance of proactively building an ever-evolving cybersecurity system that can effectively fight off cyber threats. Seatrade Maritime Middle East 2018 is a timely platform to exchange experiences and propose more efficient and modern solutions that will help shield the industry from future costly network intrusions.” Cosco Shipping Lines and A.P. Moller-Maersk were two of the shipping giants recently hit by cyberattacks, prompting the leading firms and the entire industry to beef up their cybersecurity systems. Cybersecurity has become an urgent need as next-generation technologies are steadily being integrated into the maritime sector, with the prospect of autonomous shipping now becoming a possibility and millions of maritime operations data being churned out weekly. The topics of intelligent shipping as well as the tangible benefits and efficiencies offered by intelligent shipping technologies will be tackled during the 3 days of Seatrade Maritime Middle East, which is an integral part of the UAE Maritime Week. A focused session will take place on October 30th during the second UAE Maritime Future Leaders Seminar, organized by the Dubai Maritime Cluster Office. The session, entitled ‘Security from cyber-attack: how safe are we?’ will be moderated by Katharina Stanzel, Managing Director of INTERTANKO. Part of the UAE Maritime Future Leaders Seminar, this dedicated session is part of a one-day program that expands its focus to the intelligent shipping and the tangible benefits and efficiencies offered by intelligent shipping technologies and includes individual presentations by industry expert speakers, followed by interactive round tables with the audience. Jason Stefanatos M.Sc, Senior Research Engineer and Maritime R&D and Advisory, DNV GL – Maritime, one of the session’s speaker, said: “Cybercriminals are increasingly targeting the shipping industry and the recent attacks on leading shipping companies Cosco Shipping Lines and A.P. Moller-Maersk demonstrates the importance and critical-nature of being cyber resilient. We need to step up our game to protect the industry from these network breaches–a challenge that requires all maritime stakeholders to work together and improve the conditions. Owners, flag administration and class societies should help contribute in the campaign towards achieving a cyber-safer sea trade.”

Port of Hong Kong July volumes down 8% to 1.6m teu

PostTime:2018-08-16 09:53:01 View:6

The Port of Hong Kong predictably continued to see a slide in throughput in July as volumes fell 7.9% overall to 1.64m teu. Throughput at the main Kwai Tsing terminals fell 8.1% to 1.29m teu while the non-Kwai Tsing terminals handled 350,000 teu or 6.9% fewer boxes compared to 376,000 teu in July 2017. As the year wears on, the slide in container volumes is starting to bite, and year-to-date overall throughput is down 4.4% at 11.50m teu. Cumulative volume at the Kwai Tsing terminals was down 4.2% to 9.05m teu as at the end of July. Throughput at the Port of Hong Kong has been lower every month since January this year and while the peak of high season still lies ahead, the port looks set for another dismal year in 2018.

MSC to raise rates from US to Asia on two scales from October 1

PostTime:2018-08-16 09:51:21 View:5

THE Mediterranean Shipping Co (MSC) will increase rates by US$80 per TEU and $100 per FEU on US cargo bound for Asian ports effective October 1. MSC also announced a larger increase - $120 per TEU and $150 per FEU - will apply to inland cargo to Asia moving via the west coast or east coast.