World Maritime News

WMNF 2019/10/03


Cross-industry coalition to tackle decarbonizing shipping

Members of the maritime, energy, infrastructure, and financial sectors have formed a new coalition that aims to lead commercial efforts to decarbonize international shipping. Supported by more than 70 public and private organization including IAPH, the Getting to Zero Coalition has committed to the development of commercially viable zero-emission cargo ship in order to meet the goals set out in the IMO’s initial strategy on GHG emissions reduction. The announcement coincides with the leader of 14 countries – Australia, Canada, Chile, Fiji, Ghana, Indonesia, Jamaica, Japan, Kenya, Mexico, Namibia, Norway, Palau, and Portugal- calling for ocean-based climate action, including decarbonizing ocean industries.

To reach the reduction goals, the Getting to Zero Coalition has set a target of 2030 for the deployment of commercial vessels that run on zero-emission fuels.

“Getting to zero is about more than the delivery of zero-emission vessels into the world fleet by 2030” said Alastair Marsh, CEO of Lloyd’s Register.

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Mandatory slow-steaming would hurt more than help

The head of the group representing major container lines downplayed the potential for mandatory slow-steaming to reduce carbon emissions, arguing that such rules would hamper the longer-term need to decarbonize shipping. The World Shipping Council said that a number of studies suggest mandatory slow-steaming-one of many proposals the IMO is considering-would force carriers to deploy more ships in order to keep service commitments.

Calling for the global regulation of vessel’s power to curb greenhouse gas emissions and appease supporters of speed regulations, BIMCO has tabled a proposal to the IMO ahead of a working group meeting in London in November to assess several proposals geared towards short-term reductions of ship emissions.

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2020 sulphur cap to accelerate engine damage insurance claims

Hull and machinery claims are anticipated to rise with the introduction of untested but compliant lower-sulphur marine fuel oil with the capacity damage ship engines, the International Union of Marine Insurance conference in Toronto was told. Claims related to engine damage are expected to accelerate in 2020, marine insurers and underwriters said, citing the lack of specifications for blends of very low sulphur fuel oil that will replace the 3.5% sulphur bunkers from January. Concerns centered on the stability and compatibility of new fuels and different compositions, vulnerabilities in the bunker supply chain and inadequate international specification standards.

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New ISO consultation on 0.5% fuels unveiled

The International Organization for Standardization has released a new consultation on quality issues of 0.5% fuels ahead of 2020 global sulphur cap. The ISO published the new Publicly Available Specification on 0.5% sulphur fuels to complement the existing specifications on bunker fuels. Shipowners has expressed concerns about the lack of new standards for the nascent fuels. The ISO reiterated that the same specification that applies for existing bunker fuels, the ISO 8217 standard, still applies to the 0.5% fuels.

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Competitiveness is key to Los Angeles-Long Beach market share retention

Facing stiff headwinds such as declining US exports to China, slowing import growth, and congestion related performance issues, the ports of Los Angeles and Long Beach are doubling down on efficiency enhancements to stem the loss of discretionary cargo to other regions in North America. LA-LB has experienced a 22% loss of US market share since 2002, according to Gene Seroka ex APL executive director of the Port of Los Angeles. Over the past 17 years, ports on the East and Gulf coasts significantly expanded their terminal, rail and roadway infrastructure as they prepared for the expansion of the Panama Canal in 2016. Given the stiff headwinds to regaining market share, LA and LB have no choice but to better utilize the assets they have through improved efficiencies. Improvement of container dwell times, truck turn times, data-sharing with beneficiary cargo owners, truckers, equipment providers, and other port users. As ships get larger and container exchanges average 10,000 TEU per vessel call, LA-LB port directors said it is essential that carriers and terminal operators improve vessel turn times through improved loading and unloading operations, better yard management, and use of technology.  Seroka said the industry can look to South California as the automation process continues and believes that the ability to efficiently handle increased cargo volumes will attract even more cargo and more jobs.

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Cosco sanctioned by the US over Iranian crude imports

The US government has sanctioned subsidiaries of Cosco for breaching sanctions on Iran, along with several other Chinese shipowners involved in transporting energy commodities cargo via a complex ship-to-ship transfer logistics network used to obfuscate their origin and destination. Cosco Shipping Tanker (Dalian) Co and Cosco Shipping Tanker (Dalian) Seaman & Ship Management Co were named. The Office of Foreign Assets Control notice, published 25 September, provided additional detail that explained the blocking sanctions did not apply to the ultimate parent company, Cosco Shipping Corporation, or any other of its subsidiaries or holdings. This is the strongest action yet taken by the US over China’s failure to comply with the unilateral sanctions as refineries continue to import Iranian crude and liquified petroleum gas. Crude tanker rates surged by a third on 26 September as oil companies and traders rejected tonnage connected with Chinese state-owned Cosco Shipping Corp after the US government sanctioned two of its tanker subsidiaries on 25 September.

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