Marine Link
Sunday, October 23, 2016

OCEAN Alliance Gains US Approval

File photo: Port of Long Beach

The proposed OCEAN Alliance between several of the world’s largest container shippers has received approval from the U.S. Federal Maritime Commission (FMC), allowing it to become effective Monday, October 24, 2016. The OCEAN Alliance, comprising COSCO Shipping, CMA CGM, Evergreen Marine and Orient Overseas Container Line Limited (OOCL), was subject to an exhaustive FMC review process by that thoroughly examined all aspects of the proposed agreement to assure that competition in the ocean transportation industry would not suffer.

Bollinger Delivers FRC to the US Coast Guard

Lawrence Lawson sister ship Margaret Norvell was delivered to the U.S. Coast Guard in 2013 (Photo: Bollinger Shipyards)

Bollinger Shipyards has delivered the USCGC Lawrence Lawson, the 20th Fast Response Cutter (FRC) to the United States Coast Guard. Ben Bordelon, Bollinger President & C.E.O. said, “We are very pleased to announce the delivery of the USCGC Lawrence Lawson to the U.S. Coast Guard, the latest FRC built by Bollinger Shipyards and the second FRC to be stationed in the 5th Coast Guard District at Cape May, N.J. FRCs already in commission have seized multiple tons of narcotics, interdicted thousands of illegal aliens and saved many lives.

New Drones Are Being Developed for the French Navy

Image: DCNS

The future tactical component of France’s Naval Aerial Drone (Système de Drones Aériens de la Marine - SDAM) program is being designed by DCNS and Airbus Helicopters, who have joined forces to pool naval and aerospace skills and expertise. The teaming of DCNS and Airbus Helicopters will be equipped to address all technical challenges arising from the naval integration of the drones through the creation of a robust system architecture that can evolve and adapt to meet every need, the developers said.

Seattle’s Terminal 5 Closer to Becoming ‘Big Ship Ready’

Photo: Northwest Seaport Alliance

The Port of Seattle has completed the environmental analysis of Terminal 5 and has prepared the Final Environmental Impact Statement (FEIS) on the project to modernize the cargo-handling facility in order to serve larger cargo vessels. The proposed upgrades to Terminal 5 are wharf rehabilitation, berth deepening, electrical service and improvements to the upland portions of the property. “Based on public comment we are including a number of improvements, such as shore power for vessels…

Liberia provides lead with BWMS proposal to IMO

David Pascoe Liberian Registry

The Liberian Maritime Administration is to introduce a proposal to the meeting of the IMO Marine Environmental Protection Committee (MEPC70) in London on 24 October to allow certain ships additional time beyond 2020 to install adequate ballast water management systems as required under the Ballast Water Management Convention, which comes into force in September 2017. The proposal, says Liberia, would ensure that enough adequate systems and sufficient dockyard space are available.

Hanjin Dumps Half of Workers

Photo: Hanjin Shipping Co Ltd

The bankrupting container operator Hanjin Shipping Co. is shedding half of its ground workforce and may ax equally that many of the crew on deck as the bankruptcy court is out to sell most of ground and sea assets, according to the Pulse. Hanjin Shipping under court-led reorganization cuts 350 land-based employees in South Korea, aiming to restructure the business and improve survive. The shipper, which applied for court receivership in late August after creditor banks withdrew their support, has about 650 land-based employees in South Korea, which will be reduced by more than 50%.

Hanjin Talks on Long Beach Sale

Photo: Hanjin Shipping Co Ltd

Hanjin Shipping Co Ltd is in talks to sell its stake in the Long Beach Terminal in California to Geneva-based Mediterranean Shipping Company S.A.(MSC), reports Reuters. The court overseeing Hanjin's receivership says the company is negotiating with MSC, it's partner in the terminal and which has first right of refusal. Hanjin Shipping owns a 54 percent stake in Total Terminals International LLC, which operates Long Beach Terminal in the U.S. MSC owns the remaining 46 percent. It has appointed an advisor, an overseas firm specializing in shipping industry talks, to help with the negotiations.

Container Shipping Industry Calls for Climate Action

Pic: Business for Social Responsibility

Members of BSR’s Clean Cargo Working Group (CCWG) have agreed on a climate action statement and call to action for the container shipping sector and its value chain to support private-sector contributions for the global goals on climate change. Today, CCWG includes ocean container shipping lines representing about 85 percent of global volume and more than a dozen key cargo owners. The CCWG member statement reflects an aspiration for container shipping to play its role in limiting global temperature increase to well below 2˚C…

Industy Supports EU's Call for Financial Incentive to Enhance Sustainable Recycling

Photo: NGO Shipbreaking Platform

The European Economic and Social Committee (EESC) adopted an own initiative opinion that calls on the European Commission to introduce an incentive that will “eliminate the abuses of irresponsible ship dismantling through a system which creates added value in an end-of-life ship”. SEA Europe, IndustriAll Europe and the NGO Shipbreaking Platform join the EESC in supporting an incentive that will make sure ships are recycled in a safe and environmentally sound manner. “European…

Russia to Lease Second Submarine to India

Photo: Weapons Systems

Russia has agreed to lease a second nuclear attack submarine (SSN) to  to the Indian Navy, as part of enhanced bilateral defence cooperation, in a deal which will cost around $2 billion. A transfer agreement had been signed to lease a second nuclear submarine of project 971, in the Indian state of Goa, reports the ‘Vedomosti’ newspaper. Sources said the deal was struck during the meeting between Prime Minister Narendra Modi and Russian President Vladimir Putin on October 15 on the sidelines of the BRICS meet in Goa.

Towing Industry Safety: AWO & USCG Joint Analysis … By the Numbers

Source: USCG

For 16 years, the National Quality Steering Committee has used three measures to track overall trends in safety and environmental protection. While not all-encompassing, the measures are considered to be useful indicators of towing industry trends. Crew fatalities per 100,000 towing industry workers. Gallons of oil spilled from tank barges per million gallons transported. The number of vessel casualties (overall or by incident severity). This report contains towing industry data and measures for calendar years 1994 to 2015.

Tidewater Gets Waiver Extensions

Photo Tidewater

As previously reported, Tidewater Inc. (NYSE: TDW) has been in discussions with its principal lenders and noteholders to amend the company's various debt arrangements to obtain relief from certain covenants. Pending the resolution of those discussions, the company received limited waivers from the necessary lenders and noteholders which waived compliance with these covenants until October 21, 2016. The company has now received extensions of these waivers until November 11, 2016.

Maersk Maintains Beaching Mantra, Ignores Danwatch Views

Photo C S Rahman NGO Shipbreaking Platform

After investigative journalists have revealed the severe short-comings of Maersk’s shipbreaking practices in Alang, India, the shipping giant blatantly disregards the findings. In an official statement, Maersk defends its new practice of breaking ships on Indian beaches with tooth and nail without even mentioning the grave concerns raised by the Danish journalists. Maersk's strategy seems to be to draw a veil of silence on the bad conditions in Alang whilst trying to squirm themselves out of other scandalous revelations.

Changing Spill Risk in a Changing Arctic Landscape

Dagmar Schmidt Etkin

Industry analyst and environmental consultant Dagmar Schmidt Etkin, PhD, takes a hard look at a rapidly shifting operational landscape in the Arctic. Always an honest broker of information, Etkin tells it like it is. Oil spill risk is present anywhere that oil is present in reservoirs, or is transported, consumed, stored, and handled in some way. The Arctic is no exception. Not only are there oil reserves in the Arctic, some of which are being or will soon be considered for exploration and production, there is also oil being transported as cargo or as fuel to Arctic communities.

US Drillers Extend Rig Recovery

The number of rigs drilling for oil in the United States rose again this week, extending its second-best streak of no cuts into a 17th straight week, with analysts expecting more additions as crude prices hold over $50 a barrel. Drillers added 11 oil rigs in the week to Oct. 21, bringing the total count up to 443, the most since February, but still below the 594 rigs seen a year ago, according to energy services firm Baker Hughes Inc on Friday. That 17-week streak of not cutting rigs matched a stretch in 2010, making it the second-longest run since 1987, following 19 weeks in 2011. The Baker Hughes oil rig count plunged from a record of 1…

China Protests 'Illegal,' 'Provocative' US South China Sea Patrol

China's Defense Ministry said that a patrol by a U.S. warship in the South China Sea on Friday was "illegal" and "provocative" and that it had lodged a protest with the United States. In a statement on its website, the ministry said two Chinese warships had warned the U.S. warship to leave during the patrol. It added that the Chinese military would increase air and sea patrols according to need. U.S. defense officials said the guided-missile destroyer USS Decatur challenged "excessive maritime claims" in a patrol near the Paracel Islands, among a string of islets, reefs and shoals over which China has territorial disputes with its neighbors. The Chinese Defense Ministry said two warships, the Guangzhou and the Luoyang, warned the U.S. vessel to leave.

US Warship Challenges China's Claims in South China Sea

Guided-missile destroyer USS Decatur (DDG 73) operates in the South China Sea (U.S. Navy photo by Diana Quinlan)

A U.S. navy destroyer sailed near islands claimed by China in the South China Sea on Friday, drawing a warning from Chinese warships to leave the area. The U.S. action was the latest attempt to counter what Washington sees as Beijing's efforts to limit freedom of navigation in the strategic waters, U.S. officials said. The Chinese Defense Ministry called the move "illegal" and "provocative," saying that two Chinese warships had warned the U.S. destroyer to leave. The guided-missile destroyer USS Decatur challenged "excessive maritime claims" near the Paracel Islands…

Libyan Coast Guard Attacks Migrant Boat, Four Dead

ROME, Oct 21 (Reuters) - An NGO rescue group said on Friday that the crew of a speedboat labelled "Libyan Coast Guard" had attacked a migrant boat packed with some 150 migrants, beating them with sticks and causing at least four to fall into the water and drown. "The violent intervention of the Libyan Coast Guard caused a situation of mass panic on board the rubber boat in distress," Sea Watch said in a statement. The Sea Watch crew were still conducting rescue operations, but had already recovered four bodies, Sea Watch spokesman Ruben Neugebauer told Reuters. A spokesman for Libya's naval forces in Tripoli said he had not heard about about the incident.

Death Toll Hits 73 in Myanmar Ferry Disaster

The death toll in a Myanmar ferry sinking has reached 73, authorities said on Friday, as they wrapped up a week-long search and rescue operation for survivors and prepared to launch an inquiry into the cause of the disaster. Marine accidents are common in Myanmar, where many people rely for transport on crowded boats that are often in a state of disrepair. The ferry sank early on Saturday, about 85 miles (137 km) northwest of Mandalay, Myanmar's second biggest city, as it travelled between the towns of Homalin and Monywa. "We were able to salvage the sunken ferry yesterday and we don't expect to find any more bodies, so we've suspended the official rescue operation," said Ko Ko Naing, an official of Myanmar's social welfare ministry.

EMGS Amends Deal for Atlantic Guardian


Electromagnetic Geoservices ASA (EMGS) has signed an extended charter agreement for the vessel Atlantic Guardian with North Sea Commander Shipping AS (owner of the vessel) at new and improved commercial terms. The new terms are valid as of 1 October 2016. EMGS and the owners have agreed to a reduction of the charter hire rate by approximately 27% and a new 5 year term for the charter. "We are pleased to see that our suppliers are contributing to the targeted cost savings in the Company.

Essar Ports’ All-round Growth in 2Q

Essar Ports Q2 FY17 Results Image Essar Ports

Essar Ports (EPL) has registered all-round growth in the quarter ended 30 September 2016. Total cargo handling has grown 35% to 18.27 million tonnes, compared to 13.55 million tonnes in the same period last year. Third-party cargo handling has risen by 106%--to 1.03 million tonnes compared to 0.5 million tonnes. Over the quarter, the various terminals of the company handled 209 ships as against 179 ships in the corresponding period last year. The robust performance in the quarter has been driven by significant operational improvements and better cargo support from anchor customers.

Custom Mud Cat Dredge to Improve Boise Watershed

EDT's MC-40E custom dredge in operation Photo Ellicott Dredge Technologies

Ellicott Dredge Technologies (EDT) informed that the City of Boise, Idaho chose it to design a Mud Cat 40E Custom (MC-40EC) dredge for the city's innovative Dixie Drain Phosphorous Offset Project. Boise will use the MC-40EC dredge to remove phosphorous from the Boise Watershed. Boise selected the MC-40EC due to Mud Cat’s global reputation for quality and their proven ability to deliver custom features. The custom features include the overall length of the dredge, the slurry pump flow and pressure…

Britain Says Will 'Man-mark' Passing Russian Warships

Britain said on Thursday it would keep a close eye on a fleet of Russian warships approaching British waters on their way to the eastern Mediterranean. The Norwegian military on Wednesday released pictures taken by surveillance aircraft of the fleet, which includes the aircraft carrier Admiral Kuznetsov and the Pyotr Velikiy battle cruiser, sailing in international waters. British defence minister Michael Fallon said the Royal Navy would be watching closely. "When these ships near our waters we will man-mark them every step of the way," Fallon said. Russia's TASS state news agency said in July that the Admiral Kuznetsov would take part in a Russian operation in Syria from October to January.

Duterte Aligns Philippines with China to Resolve Sea Dispute

Photo: CSIS Asia Maritime Transparency Initiative/DigitalGlobe

Philippine President Rodrigo Duterte announced his "separation" from the United States on Thursday, declaring he had realigned with China as the two agreed to resolve their South China Sea dispute through talks. Duterte made his comments in Beijing, where he is visiting with at least 200 business people to pave the way for what he calls a new commercial alliance as relations with longtime ally Washington deteriorate. "In this venue, your honours, in this venue, I announce my separation from the United States…

Crew Kidnapping Persists Despite Piracy Slowdown -Report

Despite a decline of piracy activity in several high-risk areas, a high threat of crew kidnapping and hijacking remains in Southeast Asia and West Africa, according to a recent report from specialist crisis prevention and response consultancy NYA International. Overall piracy activity in the third quarter of 2016 declined in global hotspots compared to the previous quarter, as Southeast Asia and the East Africa and Indian Ocean High Risk Area (HRA) both saw drops in reported piracy incidents, and West Africa notably experienced a drop in severe incidents such as attacks and hijackings, according to NYA’s Q3 2016 Piracy Assessment. In West Africa, piracy activity in Q3 2016 declined in severity compared to the previous quarter, when 16 attacks and nine hijackings were reported.

Panama Accedes to BWM Convention

Jorge Barakat Pitty (right), Minister of Maritime Affairs of Panama, presented the country's instrument of accession to the Ballast Water Management Convention to IMO Secretary General Lim on October 19, 2016. (Photo: IMO)

Panama has become the latest State to accede to the International Convention for the Control and Management of Ships' Ballast Water and Sediments (BWM Convention), bringing the proportion of global shipping tonnage covered by the treaty to 53.28 percent, with 53 Contracting Parties. The BWM Convention will enter into force on September 8, 2017 and will require ships to manage their ballast water which will help prevent the spread of invasive aquatic species, which can cause havoc for local ecosystems, affect biodiversity and lead to substantial economic loss.

South Carolina Ports Report Cargo Growth

Photo courtesy of SCPA

South Carolina Ports Authority reported year-over-year growth during the first quarter of its 2017 fiscal year. SCPA handled 162,858 twenty-foot equivalent units (TEUs) in September. First quarter TEU volumes were up 1.4 percent over the same period last year, with 520,276 TEUs crossing SCPA docks from July to September. As measured in pier containers, or box volume, SCPA moved 91,784 containers in September. Fiscal year to date, SCPA has handled 293,275 boxes at its North Charleston and Wando Welch container terminals.

As Iran Oil Tenders Near, Investors Still in the Dark on Terms

Two years after Iran pledged to open up its oil industry in anticipation of the lifting of sanctions, foreign companies say they still have little information about Iranian oil fields and contract terms, hindering investment decisions. Bosses from oil majors including BP, Total, Eni, Royal Dutch Shell and LUKOIL have all travelled to Tehran this year, since the EU sanctions ended in January. Their teams spent weeks meeting local officials ahead of investment tenders due to start next month. But several senior executives and members of their negotiating teams told Reuters they still had not been given sufficient information about the geology of Iranian fields or contract terms.

Excess Tonnage Weighs on Asia Dry Bulk-Capesize Rates

File image: a so-called ValeMax bulk carrier (Credit: Vale)

Capesize market "absolutely dead" on Thursday - broker. Vale says no new cargoes but owners sail empty vessels to Brazil. Freight rates for large capesize dry cargo ships on key Asian routes will continue to fall next week as too many ships chase available cargoes, brokers said on Thursday. "The market is absolutely dead today - it's all very doom and gloom," said a Singapore-based capesize broker on Thursday. While BHP Billiton and Rio Tinto have been active charterers this week, Fortescue Metals Group has stayed out of the market, the broker added.

Naptha Tanker Explodes at Southern China Port

An oil tanker carrying 3,400 tonnes of naphtha exploded during discharge at a southern Chinese port on Thursday and one person on board was missing, official Xinhua news agency reported. The rescue team said explosions occurred in the engine room as the tanker was discharging at Dongfang port in China's southernmost island province of Hainan. Reporting by Chen Aizhu

Rickmers’ Investors Demand Prompt Bond Repayment

Photo: Rickmers Maritime

Singapore-based shipping trust Rickmers Maritime announced that it has already received a letter from lawyers representing a group of bondholders demanding for the immediate payment of their share of  bonds, reports Bloomberg. The development comes after some holders of the firm’s S$100 million ($72 million) of 8.45 percent notes due in May 2017 sought accelerated repayment last month, as the operator of container ships proposed a debt restructuring plan to help avoid potential liquidation or judicial management. The letter said that the trustee DB International Trust (Singapore) Ltd.

Korea's Top 3 Shipbuilders' Shaky Performance

File Photo: Samsung Heavy Industries

The value of contracts signed by Korea's big-three shipbuilders— Hyundai Heavy Industries, Daewoo Shipbuilding and Marine Engineering, and Samsung Heavy Industries — fell far behind the amount they projected for this year, reports The Korea Herald. Meanwhile, Arirang reported that the third quarter earnings of Korea's top 3 are likely to be in the black. Samsung Heavy Industries did not sell a single vessel during the first eight months of this year. Its yearly outcome, however, may differ as the company is currently negotiating a deal worth as much as $2.7 billion.

EU Transporters Seek Okay for Multi-Annual Financial Framework

Photo: ESPO

30 European transport associations, representing infrastructure managers, operators, local authorities, users and equipment suppliers in the maritime, inland waterways, railways, road, cycling, aviation and intermodal sectors, call on the European Parliament and the Council to approve the Commission proposal for the review of the Multi-Annual Financial Framework. The proposal foresees an increase of EUR 1.4 billion for the Connecting Europe Facility (CEF) budget. The current proposal would contribute to enhancing the role of transport as an enabler of economic growth and job creation…

Freeport of Riga Shortlisted for ESPO Award

Photo: ESPO

The ESPO Award 2016 will be presented to the port authority that succeeds the best in safeguarding and further upgrading the nature in the port area, both on land and at the waterside. "ESPO is proud to present the shortlisted projects, before the winner is announced during the official Award Ceremony at the Egmont Palace in Brussels on 9 November," says a statement. Freeport of Riga Authority (Latvia) has been shortlisted for the ESPO Award 2016. The territory of the Freeport of Riga lies on the Daugava river estuary and includes natural green and blue areas…

'We Will Not Stand by and Wait for Global Regulation' -Maersk Line

Photos: Maersk Line A/S

Shipbreaking has become commercial due to the recycling of steel becoming a global commodity in demand. This means that the dismantling and recycling of a ship are recognized as part of the value of the ship, which has evolved into a massive challenge for the shipping industry. "The choice is clear. One option is to continuing to wait for global agreement – while hundreds of vessels continue to be dismantled on the beaches of India, Bangladesh and Pakistan – or to act now and begin improving the conditions in yards. That is what we have done in Maersk.

Panama Canal Cargo Tonnage Zooms

Photo Panama Canal Authority

Strong container traffic, newly introduced segments and the Expanded Canal all contribute to the 330.7 million tons of goods welcomed through the Canal in FY16, the third highest amount ever recorded. Panama City, Panama, October 20, 2016 – At the close of the 2016 fiscal year (FY16), the Panama Canal Authority (ACP) recorded the third-highest annual tonnage in its history, welcoming 330.7 million Panama Canal tons (PC/UMS). A total of 13,114 vessels transited the Panama Canal during the fiscal period from October 1, 2015 to September 30, 2016.

NATO: Major Russian Naval Deployment Underway

Russian warships off the coast of Norway are carrying fighter bombers that will likely reinforce a final assault on the besieged Syrian city of Aleppo in two weeks, a senior NATO diplomat said on Wednesday citing Western intelligence. "They are deploying all of the Northern fleet and much of the Baltic fleet in the largest surface deployment since the end of the Cold War," the diplomat said on condition of anonymity. "This is not a friendly port call. In two weeks, we will see a crescendo of air attacks on Aleppo as part of Russia's strategy to declare victory there," the diplomat said. Reporting by Robin Emmott

Crowley Hits Milestones in Puerto Rico Investment

A view of the starboard side of  El Coquí under construction.  (Photo courtesy of Crowley)

Highlighting the economic impact under the Jones Act of its $500 million investment in the trade between the U.S. mainland and Puerto Rico, Crowley Maritime Corporation’s liner services group reached new milestones in its construction of two new, Commitment Class ConRo (combination container and Roll/On-Roll/Off) ships that will be powered by liquefied natural gas (LNG), and in its terminal construction in San Juan. The bow of El Coquí was recently set as shipbuilders at VT Halter Marine in Pascagoula…

Port Extension Work Begins at Guayaquil

Photo courtesy of TPG

Terminal Portuario Guayaquil (TPG), port operated by SAAM since 2006, began one of its most important projects in recent years: the extension of its dock by 120 meters. The works will imply increasing the dock from its current 360 meters to 480 meters, project that should be completed by the end of the first quarter of 2017. "The beginning of these extension works is a milestone for TPG. This, together with other initiatives, will allow us to continue positioning the terminal as an efficient alternative in the export of products…

Russian Warships Said to be Bound for Syria

The Norwegian military has released pictures taken by surveillance aircraft of a fleet of Russian warships sailing in international waters off the coast of Norway and reported to be heading to Syria. Photos of the vessels, which include the aircraft carrier Admiral Kuznetsov and the Pyotr Velikiy battle cruiser, were taken near Andoya island, in northern Norway on Monday. A spokesman for the Norwegian military intelligence service said the country's armed forces frequently releases such footage, while newspaper VG quoted General Morten Haga Lunde, head of the service, as saying the eight ships involved "will probably play a role in the deciding battle for Aleppo".

Moore Stephens: 4th Straight Year of Operating Costs Decline

Richard Greiner (Photo: Moore Stephens)

International accountant and shipping consultant Moore Stephens says total annual operating costs in the shipping industry fell by an average of 2.4% in 2015. This compares with the 0.8% average fall in costs recorded for 2014, and is the fourth successive overall year-on-year reduction in such costs. All categories of expenditure were down on those for the previous 12-month period. This suggests continued pragmatic management of costs by ship owners and operators, as well as a reduction in active trading for some owners as a result of the prolonged worldwide economic downturn.

Rolls-Royce Equipped Vessels Enter Service with Qatari CG

Ares 110 Hercules (Photo: Rolls-Royce)

Qatar’s Coast Guard Command has taken delivery of the first in a series of 17 composite hull boats powered and propelled by MTU high-speed engines and Rolls-Royce Kamewa waterjets. The vessels, two Ares 75 and one Ares 110 Hercules, will be the first three boats of this program to be delivered by the end of this month. Two additional boats are planned to be delivered by the end of the year; one Ares 75 and one 110 Hercules. Meanwhile, preparations for the construction of the first Ares 150 class boat have already been completed and its launch is expected towards the end of next year.

Maritime Reporter Magazine Cover Oct 2016 - Marine Design Annual

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News