World Maritime News
Port acquisition deals in China
China Merchants Group has agreed to buy a 49.9% stake in a port arm established by the Liaoning provincial government in a move to integrate the ports industry in the region.
The Liaoning North East Asia Gang Hang Development Co, is the parent of Dalian Port Group and Ying Kou Port Group-operators of the two largest ports in the northern province of China. In addition to this, Guangzhou Port Co is planning to acquire a 52.5% stake in the nearby Zhongshan Port & Shipping Enterprise Group in a move to consolidate the ports industry in the key southern region. According to GPC, the acquisition will help the company merge the existing logistics resources and networks, gain from economies of scale and improve profitability.
BIMCO adopts sulphur cap bunker clauses
BIMCO has adopted two new bunker contract clauses that address the obligations of charterers and owners on general compliance and during a transition period ahead of the 2020 sulphur cap. BIMCO clauses are used during bunkering negotiations and transactions. BIMCO plans to publish a total of four 2020 sulphur cap clauses by early 2019.
The first clause on general compliance with the 2020 cap lays out the obligations of owners and charterers to meet the new rules. The second clause addresses the sulphur cap transitional period, set as the time between the end of 2019 and beginning of 2020. Under the new clause, any non-compliant fuel that remains on the vessel from 1 January 2019 has to be removed before it is re-delivered to the owners or before 1 March 2020, when a global ban on the carriage for use of non-compliant fuel commences.
Asia to dominate energy demand by 2040, forecasts IEA
Forecasts from the International Energy Agency conclude that the dominant players in the sector, especially the United States and China, will need to find ways to work together in spite of trade disputes. Meanwhile, the transformation of the electricity sector will drive economic growth and enable emission reduction strategies, especially in developing economies.
With more than 70 % of further global energy investments (USD 42 trillion) expected to be government-driven, politicians will have to draft the right policies and incentives to clean up energy supplies. Energy market trends over the past 20 years and toward 2040 reveal a profound shift in energy consumption to Asia. Trade in LNG is expected to double in response to rising demand from developing economies, led by China. India also rises in significance as global energy demand changes. In conclusion, the IEA warns that the greatest risk of an energy supply crunch comes in the oil sector, where the average level of new conventional crude oil project approvals over 2015-2018 is only half the amount necessary to balance the market out to 2025. US shale oil will not be enough on its own.
LNG bunkering vessels
LNG bunkering vessels are an evolving but there are currently just a handful of purpose-built ones in the world. The world’s first purpose-built LNG bunkering vessel, “Engie Zeebrugge”, was launched by ENGIE in 2017 along with joint venture partners Fluxys, Mitsubishi Corporation and NYK. The vessel can hold just under 5,000 m3 of LNG fuel and began offering ship-to-ship LNG bunkering operations at the port of Zeebrugge in June this year.
Shell took delivery of its first LNG bunkering vessel “Caridissa” 6,500 m3 in September 2017, which carried out its first ship-to-ship bunkering operations this year at the port of Rotterdam.
More recently, in September 2018, Babcock Schulte Energy took delivery of “Kairos”, currently the world’s largest LNG bunkering vessel with a 7,500 m3 capacity. More of such vessels are on order and they are getting larger than ever.
By 2020, Total is expecting the delivery of an 18,000 m3 gas supply vessel that will serve 9 LNG-fueled 22,000 teu container ships operated by CMA CGM.
It is very important to adhere to the International Code for the Construction and Equipment of ships carrying Liquified Gases in Bulk and International Code of Safety for Ships using Gases or other Low-flashpoint Fuels.
Wan Hai signs off on 20 newbuilds
Wan Hai Lines has confirmed a major order for 20 containerships split between Japanese and Chinese yards. Eight 3,306 teu vessels with Japan Marine United and a further twelve 2,038 teu units with Guangzhou Wenchong Shipyard. In addition to the 20 firm orders, Wan Hai revealed that it can take up the option for another four 3,036 teu ships within the next six months, and four more 2,038 teu vessels within the next three months. Wan Hai, operates 72 ships under its name and another 24 on charter.
Blockchain consortium planned by liner and port operators
Moves to bring blockchain technology into container shipping have taken another major step forward with the signing of a declaration of intent between leading carriers and the terminals they serve. The Global Shipping Business Network is a group comprising Ocean Alliance carriers CMA CGM, Cosco Shipping, Evergreen, OOCL, along with Yang Ming. Other members include DP World, Hutchison Ports, PSA International and Shanghai International Port Group. Alongside logistics software vendor CargoSmart, the compagnies plan to create a blockchain-based open platform to connect stakeholders including carriers, terminal operators, customs authorities, shippers and logistics providers to realize collaborative innovation and digital transformation in the supply chain. The move follows Maersk Line’s collaboration with IBM to create TradeLens, a similar blockchain-based standard for the container shipping sector.
Blockchain trials turn to finance and marine insurance
The Port of Rotterdam Authority has teamed up with Samsung’s logistics and IT division and Netherlands-based ABN Amro to launch a pilot system to develop the paperless integration of physical, administrative and financial streams within international distribution chains.
The test involves the multi-modal transport of a container from a factory in Asia to location in the Netherlands. Initially, the trial will just involve the three parties, but the plan is to open the network for other parties to join. It starts in January 2019, and the results will be announced in February 2019. The ultimate goal, according to ABN Amro, is to reach an open, independent and global platform that operates from perspective of shippers.
In Singapore BNP Paribas and HSBC Singapore have completed the country’s first fully digitalized letter of credit transaction between two compagnies in a move that they will bring the digitalization of trade finance a step closer to being commercial reality.
In addition, a leading Japanese insurer has announced that it has successfully piloted a new blockchain solution for cargo risks. Tokio Marine & Nichido Fire Insurance and partner tech company NTT DATA said the trial had been completed and would dramatically reduce the time for claims to be paid. The blockchain proof-of-concept was undertaken across eight countries and found that the ability to quickly share information reduced claims payment times from a month to less than a week.
Five leading port groups promote sustainability through mass-recycling initiative
Five of the world’s leading container port operators have jointly undertaken a week-long initiative to promote sustainable resource usage in their respective port and facility networks. During the fifth annual Go Green Initiative, 8,332 employees of DP World, Hutchison Ports, PSA International, Port of Rotterdam and Shanghai International Port Group collected a total of 1,966 kg of aluminum cans and 2,227 mobile phones for recycle.