Planet MUNZ Local 10

Maritime Union of New Zealand—Women’s Conference 2021

After months of planning alongside, a strong group of 24 MUNZ Women from around New Zealand attended the Council of Trade Unions Biannual Women’s Conference in Wellington on 12 and 13 July 2021.

Maritime Union of New Zealand—Case for New Zealand shipping now urgent

There is a growing realisation that New Zealand needs shipping capability to ensure reliable and secure services.

Maritime Union of New Zealand—Maritime Union calls for New Zealand shipping to resolve supply chain crisis

There needs to be innovative responses to ongoing shipping congestion.

Maritime Union of New Zealand—Caution required with more COVID cases on overseas vessels

A recent spike in COVID cases amongst overseas crew members is concerning port workers.

International Longshore and Warehouse Union—All Creatures Animal Hospital workers vote to unionize

International Longshore and Warehouse Union—Stronger Together: ILWU comes together at historic virtual 38th International Convention

Maritime Union of New Zealand—Unions back mandatory vaccination for port workers

The two main unions representing New Zealand port workers are backing the Government move to make COVID-19 vaccinations mandatory for port workers.

Maritime Union of New Zealand—Crew welfare needs to be considered in Viking Bay case

Problems with quarantine for sick crew members aboard the Viking Bay show processes need to be tightened up.

Maritime Union of New Zealand—Infected crew members highlight a weak point in border security

Two COVID-positive foreign crew members are self-isolating on the Spanish-flagged deep sea fishing vessel Viking Bay off the Taranaki coast.

International Longshore and Warehouse Union—Local 6 members at Stratas Foods in Fresno take a stand for fair wages

International Longshore and Warehouse Union—West Coast ITF Inspectors assist in vaccinating seafarers

International Longshore and Warehouse Union—IBU fights to protect jurisdiction, area wage standards on tugs and barges in LA/Long Beach

Maritime Union of New Zealand—Port of Tauranga is responsible for worker harm

The Maritime Union has backed calls by whistle blowers at Port of Tauranga who have come forward after suffering serious workplace injuries.

Maritime Union of New Zealand—New Zealand’s deepening supply chain crisis

New Zealand is facing a deepening crisis in our maritime supply chain, which requires bold thinking and speedy action to fix.

Maritime Union of New Zealand—Automation project at Ports of Auckland requires intervention

The off button on automation at Ports of Auckland has been pressed until further notice – and there needs to be answers.

Maritime Union of New Zealand—Maritime Union agrees with freight industry concerns on profiteering

The Maritime Union has taken the unusual step of agreeing with a trucking industry boss.

Maritime Union of New Zealand—South Island disruption highlights need for coastal shipping

Coastal shipping could provide a essential lifeline to regions in future events.

Maritime Union of New Zealand—Maritime Union demands Government action in offshore crewing dispute

A major dispute over crewing of vessels operating in New Zealand’s offshore oil and gas industry has broken out.

International Longshore and Warehouse Union—ILWU May Day 2021: Remembering the past, fighting for the future

International Longshore and Warehouse Union—ILWU Statement on VTA rail yard shooting

                    Download a PDF of the statement here    

Maritime Union of New Zealand—Ports of Auckland: it’s about accountability

Comments from an Auckland business leader Michael Barnett about the Ports of Auckland are disrespectful to those who have died or been seriously injured at the Ports.

International Longshore and Warehouse Union—ILWU Statement in Solidarity with Dockworkers in Montreal

International Longshore and Warehouse Union—ILWU Statement on the Derek Chauvin Verdict

Real justice means an end to systemic racism in this country.

International Longshore and Warehouse Union—President’s Message, March 2021

Felixstowe Dockers—Trouble at Port of Felixstowe leaves UK bookseller with no books



A UK book publisher says congestion at Felixstowe Port has left it with no books to sell in the lead up to Christmas.


Colin Hoad and Matt Green run a publishing company, Idesine, which has 4,000 books stuck on a ship that has been trying to dock since 31 October.


They are one of many businesses encountering problems importing goods.


Importers say congestion issues at UK ports have led to shipping firms quadrupling their freight costs.


"People are contacting us saying they've paid for books on pre-order as gifts, and we ultimately can't guarantee delivery," Mr Hoad said.


Delays at Felixstowe have been caused by a surge in import traffic as companies increased orders after the initial lockdown and some looked to stockpile goods before the end of the Brexit transition period.


The pandemic has made matters worse as large orders of PPE added to the backlog of containers on the quayside.


The port's owner, Hutchison UK, has said it is in the process of recruiting an additional 104 equipment drivers plus a number of engineers to help solve the problem.


But congestion at England's ports is now so bad, some shipping firms have limited the amount of cargo they will bring to the UK.


One of the world's biggest shipping lines, CMA CGM, told the BBC it was allocating less space on its fleet for UK imports for the time being.


"UK ports are currently experiencing yard and port congestion mostly in Felixstowe, and in London Gateway and Southampton to a lesser extent," said a spokeswoman for CMA CGM Group.


"We are controlling import volumes while maximising empty container evacuation wherever possible."


Empty containers waiting to be shipped back to Asia are causing traffic jams at ports across Europe and North America. That could have knock-on effects for companies' Christmas orders, said Peter Wilson, managing director of the UK freight forwarder Cory Brothers.


"We are already seeing that goods due by Christmas… are very unlikely to arrive because they're in their origin ports, waiting for containers," he said.


Causing even further headaches for importers, shipping companies have sharply increased freight prices in response to the congestion at UK ports - some by as much as 300%.


"What the lines are trying to do is to dissuade people sending stuff to the UK," said Alan Joseph, operations director of The Cotswold Company, which imports some of its wooden furniture from Asia.


This week, a freight company quoted a price of $8,000 to transport a 40ft container from Asia to the UK.


"At the end of September, market rates were less than a quarter of that, at $1,700 per unit," Mr Joseph said.


Furniture seller Alan Joseph has seen shipping costs quadruple in recent weeks

He added that while individual businesses will negotiate unique import costs based on the volume of goods they want to move, at the moment, prices are increasing across the board. And there are few alternatives for businesses whose goods are manufactured overseas.


"Airlines are not moving as much cargo because there are fewer passenger flights. The railway from China to Germany is now quoting rates in excess of $10,000 per container - which is not much of an option."


He said two other shipping firms are now refusing bookings for importing refrigerated containers to the UK.


"It's a worrying sign that big shipping lines are drastically reducing UK volumes because so much of the imports in the UK arrive through our ports, and if there's less coming there are less supplies of everything that gets imported."


Importing stock is also becoming increasingly difficult for Joe Burgwin, who is head of supply chain at the garden furniture firm Supremo Leisure, based in Telford. The business has been booming recently as the virus led to people spending more on their outdoor spaces.


Joe Burgwin says his freight costs have more than doubled.

"Previously for us, shipping cost $1,400-$1,500 tops per 40ft unit, which was manageable," he said.


"Now in negotiations with freight companies, prices have more than doubled and there are fears it could move even higher. We're predicting this to last until at least January, which makes business planning pretty challenging."


'Incredibly frustrating'

The ship carrying books belonging to publisher Idesine was originally supposed to dock at Felixstowe at the end of October, but the port was too busy so it was diverted to Europe.


Since Saturday, the ship has been moored outside Felixstowe waiting for a berthing slot.


After launching the company in June, Matt Green now has 2,500 pre-paid orders waiting to be delivered.


"It's incredibly frustrating that we can't get the book into our customers' hands," he said. "We just hope that we can do it before Christmas."


Congestion at Felixstowe Port could last into the new year

Shipping analysts say ports across the world are battling to manage the surging demand for imports, and Felixstowe has struggled to cope.


"At the moment, the port has become a bottleneck because other elements of the supply chain have got out of balance," said Eleanor Hadland, a ports analyst at the maritime consultancy Drewry.


She said getting a berthing slot at Felixstowe "is like trying to get a Tesco delivery in the beginning of lockdown".


"Partly that's because of Covid, partly Brexit preparation and a lot of external factors which have resulted in ports reporting congestion. But Felixstowe could have dealt better with these external challenges," she said.


Hutchison UK has warned congestion at Felixstowe Port could continue into the new year.

Felixstowe Dockers—Video: World's First Night-time Drone Delivery From Shore to Ship

 

 
 

Singaporean maritime drone company F-drones has completed what it believes to be the first commercial drone delivery at night. The company flew a package out to the bulker Berge Sarstein, owned by Berge Bulk, marking a new milestone for drone operations at the Port of Singapore.

In the test, F-drones' unit carried a 3D-printed part weighing three kilos out to the Berge Sarstein at her anchorage. The flying distance was about three nautical miles, and the drone completed the flight in just seven minutes. The payload was the world’s first 3D-printed, CE-certified lifting tool (a tripod-shaped jig for lifting engine pistons), which was designed and printed by engine manufacturer Wartsila. It was delivered in partnership with Wilhelmsen Group. 

Globally, commercial drone deliveries are limited to daylight hours due to the technical and operational challenges of night operations. As ports around the world operate round the clock, the capability for night flights would allow drone operators to compete with small-boat operators for vessel delivery services day and night. F-drones suggests that this would improve safety (by reducing pilot ladder operations) and speed up the delivery of critical parts and supplies. 

F-drones is also conducting autonomous test flights of its own new in-house drone design, which is built to handle deliveries of five-kilo loads - the largest payload in its class - over a distance of 25 nm. The company says that it has completed more than 100 autonomous flights with the new drone system since the start of the year. With a top speed of nearly 80 knots, the new unit is designed for rapid deliveries. Commercial launch is scheduled for 2021. 

“Traditional means of transport are expensive, slow, labor and carbon intensive. F-drones’ solutions aid the maritime industry to reduce 80 percent of the costs, time and CO2 emissions. Besides being efficient, delivery drones can also reduce unnecessary human contact amid the COVID-19 pandemic," said Nicolas Ang, the company's co-founder.

Felixstowe Dockers—Boris Johnson’s Offshore Wind Plan Will Require $58 Billion from Industry


Dudgeon offshore wind farmA view of Equinor’s Dudgeon offshore wind farm off North Norfolk, England. Photo: Equinor

By William Mathis (Bloomberg) — Boris Johnson’s plan to quadruple the size of the U.K. offshore wind industry will require $58 billion of investment and careful management of what’s a tricky building process in some of the world’s roughest waters.

The prime minister is targeting turbines with the capacity to produce 40 gigawatts of electricity by 2030, up from more than 10 gigawatts now. That would speed the nation’s shift away from fossil fuels and help it meet a goal of zeroing out carbon pollution by the middle of the century.

The difficulty is managing so many large infrastructure projects at once. Turbines these days are massive, with blades as big as a jumbo jet’s wingspan. They require highly specialized ships with giant cranes to do the installation, and developers compete to hire the few vessels that can do that work. The money needed to build all those facilities will require steady government policies that ensure the likes of Orsted A/S and Vestas Wind Systems A/S get paid regardless of political change.

“It’s hard, but it’s possible,” said Tom Harries, offshore wind analyst at BloombergNEF.

More Offshore

The goal Johnson set out in his speech to the ruling Conservative Party’s annual conference also would maintain the lead the U.K. built in offshore wind over Denmark and Germany. The government is keen to highlight that position as the U.K. separates from the European Union and prepares to host the United Nations climate talks in Glasgow next year.

Johnson’s remarks amount to a statement of political intent, a reassurance for industries that policies on whose power feeds into the grid will be tilted in favor of renewables and especially offshore wind power. Just seven years ago, Johnson was skeptical of wind power and favored nuclear energy. Since then, the price of atomic plants has surged while the cost of turbines that work offshore plunged. That forced a rethink within government, which increasinly favors wind as a primary source of clean energy.

Price Plummet

Reassurance is crucial for wind developers. Unlike the oil companies, where drillers probe for for reservoirs and then worry later about how to sell it, wind developers generally leave investment decisions until after they’ve pinned down contracts setting a price for the electricity they will produce.

Words alone don’t guarantee that such a massive building project is delivered on time. The turbines needed to supply 40 gigawatts of power may cover an area of the sea close to 9,500 square kilometers, six times the size of greater London, according to BNEF.

Britain increasingly is competing for the resources to build offshore wind farms. As the industry spreads to new markets, the limited fleet of these specialized vessels and cranes large enough to lift massive turbines is spread thin. A delay in one project or a storm that delays a voyage from one project to the next could create a domino effect of delays.

There’s also the issue of the electric grid. Conventional power plants were built relatively close to population centers in the southern part of England. Wind farms off the east coast and in Scotland are much farther away and will require millions in new spending to improve the network.

“There’s not enough capacity in the grid near the coast to enable that much wind capacity,” said Simon Cox, offshore wind business manager at consultant DNV GL. “There’s going to need to be significant investment.”

The grid could also cause issues with keeping projects on time. To get the power to land, offshore developers have to dig up the coast line to install cables and other infrastructure to link with the grid. Residents of England’s coastal communities are starting to complain about all the disturbance. Those issues and others from the fishing industry and environmental groups could delay permitting processes to push projects to completion after the 2030 target.

The U.K.’s network operator National Grid Plc is currently consulting on a plan to link wind parks together to cut down on the industry’s impact on the countryside. It could save billions of dollars in the coming decades, but likely won’t be in place for projects that will be built this decade.

Green Jobs

Johnson doesn’t simply want to build up electric capacity, he wants to create jobs. Offshore wind already employs about 11,000 people, according to the industry group Renewable U.K. That’s set to rise to 27,000 full time jobs by 2030.

Still, the U.K. has lagged in offshore wind manufacturing. While it leads on capacity, it remains behind Spain, Denmark and Germany among European manufacturers of offshore wind turbine components. The massive steel foundations and platforms known as jackets for the turbines are made abroad in bigger ports.

“At the moment we can do blades, we can do cables, we can do some steel works, but we can’t do much else,” said Gary Bills, regional director for Europe, Middle East and Africa at energy consultants K2 Management. “We’re going to be the world’s leading industry with very little capability in house.”

© 2020 Bloomberg L.P.

Felixstowe Dockers—Virus Outbreak Halts Shipbuilding at Norwegian Yard


The New Hayard Ship Technology shipyard in Leirvik, Norway. Photo: Havyard Group

Officials have extended the temporary closure of the Havyard shipyard in Leirvik, Norway until at least October 19 after more workers tested positive for COVID-19.

All shipyard activities were originally closed on September 30 after four people tested positive for the virus. On October 2, Havyard said 17 people had been diagnosed with the virus out of 200 tested.

As of today, the number of cases has now jumped to 75 with 495 tested, according to Havyard.

“In order to prevent further spreading of the virus and to gain control of the situation, Hyllestad municipality has today, pursuant to the Infection Control Act, decided to keep the yard business further closed until 19 October 2020. Such a decision may be extended until it is deemed safe to reopen the production,” Havyard said in a statement.

The shipyard in Leirvik , Norway belongs to New Havyard Ship Technology AS, a subsidiary of Havyard Group ASA. According to the company’s website, the shipyard completes around four to six new builds per year and employs 400 to 500 employees and subcontractors.

Havyard’s current backlog stands at six vessels, including three live fish carriers and three wind farm service operations vessels (SOVs), according to its website.

Today’s update said it is “foreseeable” that the extended shutdown will now likely lead to delayed deliveries, and any delay will depend on the extent of the shutdown and what measures that can be implemented to make up for the lost production time.

Felixstowe Dockers—Cargo Ship Breaks Tow, Grounds in Vietnam

 

Photo shows a severe hog in the ship’s hull.

An end-of-life cargo ship under tow to breakers lost its tow and become grounded along the east coast of Vietnam.

The owners of the MV Jakarta, NKD Maritime Limited, said the vessel went aground on October 10 during very heavy weather and sea conditions.

The vessel was under tow at the time and is not carrying any cargo or fuel. It was also unmanned at the time.

NKD Maritime is a UK-based cash buyer of end of life ships for dismantling in India, Pakistan and Bangladesh. Reports indicate that the Jakartar was under tow to Alang at the time of the incident.

Images of the vessel aground show a severe hog in the ship’s hull with a large crack amidships indicating that the vessel is at risk of breaking in half.

The MV Jakarta, built in 2002, was formerly the CMA CGM Jakarta.

All crew from the towing vessel are safe and accounted for, NKD Maritime said.

“NKD Maritime would like to thank all those assisting to resolve this situation in a safe manner,” the company said.

Felixstowe Dockers—US Navy’s New ‘Affordable’ $1.2 Billion Ship


Navy Broken Fleet Zumwalt LCSAlbatross’s of the US Navy: The $8B+ USS Zumwalt sails alongside a littoral combat ship (LCS). Both classes of vessels have failed to meet US Navy expectations. Photographer: Navy Media Content Service

The successor to the $30b troubled littoral ship project was billed as affordable but the Congressional Budget Office projects $12.3 billion for just 10 new frigates.

The Navy also warned CBO there’s a 50% chance the first two ships would exceed their cost estimates

By Anthony Capaccio (Bloomberg) The first 10 vessels in the Navy’s new frigate program may cost $12.3 billion, or 40% more than the service calculated, according to the nonpartisan Congressional Budget Office, a new sign of looming trouble for plans to expand the U.S. fleet.

US-Navy-Constellation-class-frigate-renderingAn artist rendering of the U.S. Navy FFG(X) Constellation-class guided-missile frigate. U.S. Navy graphic.

The assessment released late Tuesday projects the frigates will cost an average of $1.2 billion apiece in inflation-adjusted dollars in contrast to the Navy’s estimate of $870 million each. It’s an early setback for a ship billed as a more versatile and better-armed replacement for the troubled Littoral Combat Ship, a $30B program that was truncated because of mechanical flaws, light armament and vulnerability to attack.

The Navy is counting on an affordable frigate as a key component in its effort to meet President Donald Trump’s goal of 355 deployable ships by 2035, up from about 299 today. Defense Secretary Mark Esper set out an even more ambitious goal last week of a 500-ship Navy by 2045 that would include unmanned vessels of unknown weight, capabilities and cost.

“If the Navy’s procurement cost estimates” for the frigate “prove accurate, the ship would be, by far, the least expensive surface combatant that the Navy has bought since 1970 — measured in cost-per-thousand tons of displacement,” the budget office said. “That would apply to both the lead ship and the average cost of the first 10 ships.”

Its fiscal 2021 cost estimates for the second through 10th frigates “are at the very low end of the range” established at the outset of a competition that was won by Fincantieri SpA in April, according to the Congressional Budget Office. The Navy also told CBO there’s a 50% chance the first two ships would exceed their cost estimates and a 60% chance the third through 10th ships would as well.

Littoral Ships

Esper’s vision calls for a fleet of 60 to 70 “small surface combatants” that includes the frigates — which will be equipped with guided missiles — and Littoral Combat Ships, a quantity the Congressional Research Service said implies buying more than the 20 frigates currently planned.

Despite the decision to cut short the Littoral Combat Ship program, the Navy still has 35 on contract, with 19 delivered as of March. The LCS is built in two versions: One by Trieste, Italy-based Fincantieri in a joint venture with Lockheed Martin Corp. based in Bethesda, Maryland, and the other by Henderson, Australia-based Austal Ltd.

CBO compared the frigate’s estimated cost with ships of similar tonnage and examined arguments supporting the Navy’s estimate, such as Fincantieri’s long experience building small surface combatants vessels including, in this case, a design that’s been in production for years for the French and Italian navies.

It also looked at elements that “suggest the Navy’s estimate is too low,” such as the service’s star-crossed history in which “costs of all surface combatants since 1970, as measured per-thousand-tons, were higher” than initial estimates.

“Historically the Navy has almost always underestimated the cost of the lead ship, and a more expensive lead ship generally results in higher costs for the follow-on ships,” the budget analysts said.

The report cited the cost growth over initial estimates for the lead ship in other Navy programs, from 155% for one version of the Littoral Combat Ship, 84% on the San Antonio-class amphibious warfare vessel, 44% for the DDG-1000 Zumwalt destroyer and 25% on the Gerald R. Ford aircraft carrier, the costliest warship ever.

Compared with the design on which it’s based, the frigate “will be more densely built and will have somewhat more complex weapon systems,” CBO said.

 

Felixstowe Dockers—Here’s One Way To Avoid COVID19 – Set Your Ship Adrift In Arctic Ice

Research Vessel Polarstern Return

Research Vessel Polarstern returns from Arctic ice research. Photo via The Alfred Wegener institute

After more than a year in the Central Arctic, this Monday, 12 October, the research icebreaker Polarstern returned to her homeport in Bremerhaven. The event marked the end of a record-breaking expedition: never before had an icebreaker been near the North Pole in winter. Drifting with the ice, they endured the extreme cold, Arctic storms, a constantly changing flow while the rest of the world battled the coronavirus pandemic.

On 20 September 2019 Polarstern departed from the Norwegian port of Tromsø, bound for Arctic ocean ice. Once there, the ship allowed itself to become trapped in the ice, and began a one-year-long drift across the North Pole, completely at the mercy of natural forces – the route and speed were solely determined by the ice drift, powered by wind and currents.

Over the five legs of the expedition, a total of 442 researchers, Polarstern crewmembers, young investigators, teachers and press took part. Seven ships, several aircraft and more than 80 institutions from 20 countries were involved. The researchers, who hailed from 37 countries, had a common goal: to investigate complex interactions in the climate system between the atmosphere, ice and ocean, as well as life in the Central Arctic, to build better climate models.

Even when virtually every other expedition around the globe was canceled because of the pandemic, the entire team, this expedition was able to continue. In the early summer, Polarstern did have to briefly leave the ice floe for a personnel transfer. Four weeks later, a new team commenced fieldwork on the ice, continuing their efforts right up to the last day, when the floe (as predicted) reached the ice edge to the east of Greenland, began breaking up under the influence of the waves, and completed its typical lifecycle.

To explore the last piece of the puzzle in the sea ice’s annual cycle – the formation of new ice at summer’s end – the expedition then headed farther north, crossed the North Pole, and moored to a second floe in its vicinity.

““Climate change is the greatest challenge facing humanity,” said Anja Karliczek, the German Federal Minister of Research. “Throughout their long months in the Arctic ice, the experts retrieved a unique wealth of data that will help to fill critical gaps in our understanding of the region, allowing us to more accurately evaluate our current climate models.”

The total cost of the expedition was ca. 150 million euros, with roughly two-thirds being contributed by Germany.

Felixstowe Dockers—Crew Kidnappings Surge in Gulf of Guinea

 


somali piracyFILE PHOTO: EU NAVFOR warship chasing down a suspected pirate ‘mothership’ off the coast of Somalia. File photo. Credit: EU NAVFOR

The number of seafarers kidnapped by pirates in the Gulf of Guinea has surged so far this as pirates abduct bigger groups of seafarers further offshore, the International Maritime Bureau’s Piracy Reported Centre revealed today.

In the first nine months of 2020, the IMB reported a 40% uptick in the number of kidnappings reported in the Gulf. Worldwide, piracy and armed robbery at sea has also risen. The Bureau’s latest global piracy report, released today, details 132 attacks since the start of 2020, up from 119 incidents in the same period last year. Among the 85 seafarers kidnapped from their vessels and held for ransom, 80 were taken in the Gulf of Guinea in 14 separate attacks reported off Nigeria, Benin, Gabon, Equatorial Guinea and Ghana.

Combined with the on-going crew change crisis brought about by the COVID-19 pandemic, seafarers are currently facing “exceptional pressures,” the IMB said.

“Crews are facing exceptional pressures due to Covid-19, and the risk of violent piracy or armed robbery is an extra stress,” said Michael Howlett, Director of IMB, whose Piracy Reporting Centre (IMB PRC) has responded to reports and shared data since 1991, supporting seafarers and fishers worldwide. “While IMB liaises with authorities swiftly in case of a pirate attack, we encourage all Coastal states and Regional Cooperations to take responsibility for ensuring maritime security within their EEZ to achieve safer seas and secure trade.”

Gulf of Guinea Piracy

With approximately 95% of global kidnappings reported from within Gulf of Guinea waters, IMB warns that pirate gangs in the area are “well organized and targeting all vessel types over a wide range”.

The furthest attack from shore also involved the most crew kidnapped from a single vessel in 2020. On 17 July 2020, eight pirates armed with machine guns boarded a product tanker underway around 196 nautical miles southwest of Bayelsa, Nigeria. They held all 19 crewmembers hostage, stole ship’s documents and valuable items, and escaped with 13 kidnapped crew. The tanker was left drifting with limited and unqualified navigational and engine crew onboard. A nearby merchant vessel later helped the tanker to sail to a safe port.

Regional Authorities were notified and the 13 kidnapped crewmembers were released safely one month later.

A more recent example was on 8 September 2020, when armed pirates attacked a refrigerated cargo ship underway around 33nm south-southwest of Lagos, Nigeria. Two crewmembers were kidnapped, but the rest of the crew managed to retreat into the citadel – one of the industry’s recommended best practices endorsed by IMB. A Nigerian naval team was dispatched, who boarded, conducted a search, and then escorted the ship to a safe anchorage for investigations.

The IMB piracy report includes a special thanks to the Nigerian Authorities, particularly the Nigerian Navy and Nigerian Maritime Administration and Safety Agency NIMASA who “continue to provide timely information, actions and valuable cooperation between Agencies”.

The IMB report also highlights knife attacks in the Singapore Straits. The Bureau recorded 15 attacks to ships underway in the area. It notes, that while most are considered low level crimes, two crew were threatened, one injured and another taken hostage, indicating a continued risk to the crew. Knives were reported in at least ten of the incidents, the Bureau said.

Indonesia Brighter

On a good note, the IMB reported a sharp quarterly decrease in the number of incidents within the Indonesian archipelagic, with four reported in Q3, down from 14 in Q2. These are also viewed as low level opportunistic thefts with most reported on anchored vessels.

Somalia

In Somalia, once a hotbed for ship hijackings, no incidents of piracy have been reported around Somalia since 2019 and, in August, pirates released the last three of the thousands of hostages who have been held captive in the region over the years since ship hijackings peaked in 2011. Despite this, however, the IMB still urges vessels to continue implementing the industry’s best management practices (BMP5), and encourages the continued, stabilizing presence of navies in the region.

Call for More Reporting

The IMB report also warns that all vessel types in the Caribbean, Central and South America – including Brazil, Colombia, Ecuador, Haiti, Mexico and Peru are being targeted at anchor as well as underway, and during river passages under pilotage.

In one incident on 26 September 2020, a container vessel was boarded by armed perpetrators during its river passage at Guayaquil. The attackers fired their weapons towards the accommodation and bridge, then opened containers and stole the contents before leaving.

Due to many more cases go unreported, the IMB is urging all ship masters and operators to inform, in a timely manner, the 24-hour IMB Piracy Reporting Centre of any attacks to their vessels or crew.

“Understanding the true risk in the area is an important step towards improving safety for all seafarers,” said Howlett. “IMB PRC not only relays reports to appropriate response agencies and broadcasts incident information to ships via GMDSS, but we also use the reported statistics to raise awareness of these crimes and be a catalyst of change.”



Felixstowe Dockers—Shipping Industry Calls on EU for Plan to Safely Disembark Migrants

shipping leaders call on EU to ensure migrants disembark promptly
Migrants aboard the Maersk Etienne - courtesy Maersk Tankers


With the EU leaders putting forth a new plan to address Europe’s migrant crisis, leaders from the shipping industry are calling for provisions that guarantee that ships which undertake humanitarian efforts can quickly and safely disembark the people they are rescuing. 

The shipping industry says that its ships are fulfilling their moral and legal requirements to save the migrants but then are being put in jeopardy due to the lack of agreements on how to promptly disembark the people.

The challenges faced by merchant ships in the migrant crisis came to the forefront recently when a tanker, the Maersk Etienne was called on to go to the rescue of 27 migrants in distress in the waters south of Malta. Responding to calls from a human rights group the tanker saved the migrants including women and children. The vessel was then caught in limbo for nearly six weeks with no port willing to let the ship land the people. 

Citing the situation that has just been resolved with the Maersk tanker and other incidents the leaders of the European Community Shipowners’ Associations, European Transport Workers' Federation, International Chamber of Shipping, and International Transport Workers' Federation signed an open letter to the president, vice president and commissioners of the European Commission calling for action to ensure a similar situation did not happen again.

Reporting that since the height of the migrant crisis in 2014, merchant ships have helped rescue over 80,000 distressed persons in the waters of the Central Mediterranean, the industry is calling for action from the EC. While acknowledging that there had been a decline in the number of migrants, they cited new data from the European Border and Coast Guard Agency, known as Frontex, that reports an 85 percent increase in the number of migrant transits this year over last year. 

“This is deeply alarming to the shipping industry, as the migrant routes pass through international shipping lanes, increasing the likelihood of merchant ships being called on to conduct rescues. As recent incidents such as the Talia and Maersk Etienne demonstrate, there is no guarantee that those ships will receive prompt and adequate assistance when fulfilling their humanitarian responsibilities,” the letter says.

They go on to cite the obligations that ships face in these situations noting that once they take the migrants on board the ships act based on instructions received from the Search and Rescue (SAR) Authority coordinating the SAR operation.

“Merchant ships will not shrink from their legal and moral responsibility to render assistance to those in need of assistance at sea,” they say while pointing out that vessels such as the Maersk Etienne are not designed or equipped to take these numbers of people aboard. In addition to the safety issues of boarding the people, they point out that the ships do not have provisions for first aid, medical care, and food and water for large groups of distressed persons. 

"It is therefore essential that the rescued persons can be disembarked at the earliest opportunity in a place of safety – as the law demands.” They call for clear rules without attempts to criminalize or complicate the situation further. “States must ensure that the vessels and the masters of those vessels carrying persons in distress whom they have rescued at sea are relieved as soon as reasonably possible in accordance with international law.”

The letter concludes by saying that the ECSA, ICS, ETF, and ITF call on the EU and Member States to facilitate such an outcome without any further delays, taking full account of the need to ensure the safety and security of merchant ships, seafarers, and the distressed people they help.

Felixstowe Dockers—Reefer Ship Attacked Offshore Nigeria. Two Crew Members Kidnapped

Image by Roli B - MarineTraffic.Com


Maritime security intelligence agencies have reported that the Water Phoenix reefer vessel was boarded Tuesday morning off Nigeria by an unknown number of persons and that two Russian nationals have been kidnapped.

Per Praesidium International, a risk consultancy and maritime security company, the incident happened at 5:50 a.m. UTC Tuesday, approximately 34 nautical miles south of Lagos.

"According to the initial reports, the perpetrators managed to board the vessel and kidnap the master and another crew member, both Russian," Praesidium said, adding that the crew includes 18 seafarers, of which seven Russians and 11 Filipinos.

Apart from the two crew members who have, reportedly, been kidnapped, the rest of the crew managed to retreat into the citadel.

The Water Phoenix is a reefer owned by the Dutch company Seatrade Groningen.

"AIS tracking indicates that the vessel was on route to Lagos at 14kts and undertook evasive maneuvers before coming to a stop and is currently drifting," maritime safety intelligence group Dryad Global informed.

Praesidium said Tuesday that the same vessel had been involved in another piracy incident in April 2019, around 80 nautical miles southwest of Brass, Nigeria. The attack was foiled after warning shots forced the perpetrators to abort their attempt.

Nigerian maritime authorities have dispatched the NSS Ekulu to provide assistance, Presidium said.

According to Dryad, the attack on Tuesday was the 13th reported incident in waters of the Lagos Port Complex and Anchorage in the past 12 months "most of which have manifest as boarding for theft."

"This is the 3rd offshore incidents in the waters south of Lagos within 2020,"

Per Dryad, 93 personnel have been kidnapped from vessels in incidents off West Africa in 2020, so far.



Felixstowe Dockers—Iranian Fuel Seized by US to Reach Texas Within Days

Euroforce (© Pak Agen / MarineTraffic.com)

Iranian fuel that the United States seized last month while it was being transported to Venezuela is now being taken to Texas by two tankers due to arrive in coming days, part of Washington’s efforts to disrupt trade between Caracas and Tehran, according to sources and data.

The first fuel cargo, on Liberia-flagged tanker Euroforce, was to arrive in Texas in the coming 24 hours, the sources said. It is broadcasting the U.S. Gulf port of Galveston as destination, according to shipping data on Refinitiv Eikon.

The second cargo on Singapore-flagged tanker Maersk Progress tanker, is expected to arrive on Sep 19 to Houston port, the Eikon data showed.

Eurotankers and Maersk Tankers, which manage the two vessels, did not immediately respond to a request for comment.

The U.S. Department of Justice declined to comment.

The U.S. announced in August that it had confiscated 1.1 million barrels of Iranian fuel bound for Venezuela. The sources said the four tankers originally carrying the fuel had transferred their cargoes onto the two vessels, which had special permits to enter into the U.S. waters to deliver the cargoes.

Felixstowe Dockers—Stena RoRo’s E-Flexer GALICIA Delivered to Brittany Ferries – with Higher Passenger Capacity

 

GALICIA, the first of three ships in the E-Flexer class ordered by Brittany Ferries was delivered on September 3. 

The vessel is the third E-Flexer of nine ordered by Stena RoRo from the Chinese shipyard CMI Jinling (Weihai). The Galicia will be chartered by Brittany Ferries on a long-term basis and has been especially adapted to the wishes of the French ferry company:

The basic model car deck on Deck 7 has been converted to cabins. This, in combination with the deckhouse having been extended on both Decks 7 and 8, has enabled the number of cabins to be increased from 175 to 343.

Two scrubbers, one for each main engine

Two extra lifeboats added due to the ferry’s increased passenger capacity

The public spaces on Decks 7 and 8 have been partially given over to other functions compared to the basic model, but largely follow the E-Flexer standard.

“GALICIA is special because she is the first in the E-Flexer series to be delivered to an external customer. The design has been adapted to Brittany Ferries’ special requirements and the yard has been able to deliver according to schedule despite the ongoing pandemic, which we are very happy about.”

Per Westling, CEO for Stena RoRo. 

Stena RoRo has an agreement with Brittany Ferries for long-term charters of two more vessels in the Stena E-Flexer series. Both will be powered by LNG, are under construction and will be delivered in 2022 and 2023, respectively.

Felixstowe Dockers—Second Survivor and One Body Found From Livestock Ship Lost Off Japan

Search continues for lost livestock carrier off Japan

 A second survivor has been located from the livestock carrier Gulf Livestock 1 lost two days ago in a typhoon according to reports from the Japan Coast Guard. 

The search and rescue operations are continuing in a race against time as a second, potentially even larger, typhoon is nearing the area.

The Japan Coast Guard announced this afternoon, September 4, that it had located a survivor in life raft approximately a mile from Kodakara Island in the East China Sea. 

The Gulf Livestock 1’s last known position was south of there about 115 miles west of Amami Oshima island. Winds from Typhoon Maysak and tides are believed to have carried the raft away from the sinking. 

The 30-year old Filipino sailor was reported in good condition and taken a hospital. The first survivor, who was discovered on Wednesday, also remains in a hospital. The Philippine Department of Foreign Affairs said that it was working to repatriate him to the Philippines once COVID-19 protocols are cleared.

Earlier in the day on Friday, the Japan Coast Guard also pulled an unconscious sailor from the water. 

Found floating face down in a life jacket, the sailor was pronounced dead at a local hospital. The Philippine Department of Foreign Affairs said identification was pending on this person but that he was in a blue jacket with the label “Fitter” on it.

Felixstowe Dockers—24-Year-Old Migrant Found Dead in Vehicle Hold Aboard Ro/Pax Ferry

cruise europa

The body of an Afghan migrant was found Sunday in the vehicle deck of a ro/pax ferry in Ancona, Italy. 

The cruise ferry Cruise Europa arrived in Ancona at about 1700 hours Sunday on a voyage from Patras, Greece. 

The victim's body was found within the vessel's vehicle hold, and it showed no signs of injury or violence, according to the local prosecutor's office. 

The enclosed hold can get as hot as 120 degrees Fahrenheit in summer weather, and Italian authorities believe it is likely that the victim asphyxiated while the vessel was under way, according to local media.

Italy's border police are leading an investigation into the cause of the casualty. It is not known whether the victim came aboard in a truck, and the drivers whose vehicles were in the hold did not report seeing him. 

The 24-year-old migrant was identifiable because he was carrying a Greek refugee asylum application, according to InfoMigrants. 

Felixstowe Dockers—Dolphin Death Mystery Stokes Anger in Mauritius

Dead dolphins blamed on oil spill, thousands protest against government inaction in Mauritius - ABC News

The unexplained deaths of Dolphins in Mauritius are fanning anger over the government’s handling of an oil spill that’s the nation’s worst ecological disaster.

In less than a week, 46 melon-headed whales have been found dead on the nation’s southeast coast where the Nagashiki Shipping Co.’s Wakashio leaked fuel, according to the government. Tests so far haven’t linked the deaths to the spillage.

Thousands of protesters took to the streets of the capital, Port Louis, at the weekend, claiming the deaths were linked to the spill and blaming the government for failing to prevent the leakage.

“The reasons for the deaths are unknown,” Jasvin Sok Appadu, spokesman for the Blue Economy, Marine Resources, Fisheries and Shipping Ministry, said by phone from Port Louis. “Preliminary reports following autopsies of the first set of dead mammals do not show any presence of fuel oil in their lungs and digestive systems.”

Mauritius was left almost helpless after the vessel spilled about 1,000 tons of fuel into its pristine waters that communities and the government rely on for fishing and tourism. The leakage started more than a week after the ship ran aground on July 25 after salvage operations were delayed.

Prime Minister Pravind Kumar Jugnauth said that the government was unable to act immediately because it lacked the resources.


Luke Smout

Felixstowe Dockers—WATCH: Truck driver drives off RORO before Mooring

 

Felixstowe Dockers—UAE Ship And Its Crew Detained By Iran

 UAE Representation Image

Iran’s Foreign Ministry has reported that it detained a UAE-registered vessel on Thursday, 20th Aug 2020 after it was found violating the Iranian waters. 

In a statement made on state television, it also added that UAE had, on the same day shot two Iranian fishermen and seized a boat.

Iran summoned the charge d’affaires of the UAE in Tehran in response to the deaths of the 2 fishermen and compelled them to release the seized boat. UAE in return expressed its ts deepest regrets for the action and returned the boat and its crew to authorities. Transportation of the dead bodies will be undertaken legally. It has also agreed to pay for the damaged caused.

The Emirati ship had been held by Iranian Coast Guards as it was found performing illegal trafficking on the territorial waters of Iran. The crew has now been arrested. Iran has warned against further attacks saying that “Tehran will take all necessary measures to protect its vessels and citizens in the Persian Gulf.”

Both actions come at a time when tensions continue to escalate between Iran and UAE

After a surprise agreement last week between UAE and Israel seeking to ‘normalise ties’.

The decision wasn’t taken in well by the Iranian President who called it a “big mistake” as he believed that it will open up the path of Israel to the region.

Abu Dhabi, finding President Hassan Rouhani’s comments “unacceptable and inflammatory” summoned Iran’s charge d’affaires to condemn the rhetoric.

Emirati minister of state for foreign affairs, however, maintains that the diplomatic agreement has nothing to do with Israel. The agreement once signed will make UAE the 3rd nation to evolve diplomatic relations with Israel.

The rivalry between the countries has downgraded consistently since 2016 due to rifts between Tehran and Saudi Arabia. Despite the troubled relations, Iran and UAE have important economic links with each other, including a significant chunk of Iranian expatriate community in UAE.

Felixstowe Dockers—Types of Main Bearings of Marine Engines and their Properties

Main Bearing Top Half

The rotational power of a ship’s propeller is determined by the power produced by the marine engine to rotate the crankshaft. 

The crankshaft of the main engine is supported and connected to the connecting rod via main Bearings whose main function is to transmit the load without any metal to metal contact.

This is achieved by choosing special materials for manufacturing main bearings which float the journal pin of the rotating crankshaft when lube oil is supplied to it.

Forces on Bearings

A ship engine comprises of heavy rotational parts which exert different forces on various parts of the engine crankshaft. One of the significant load-bearing parts of the crankshaft system is the main bearings.

The bearings in a marine engine are subjected to multiple forces which include:

– Gas pressure generated inside the liner

– Dynamic Inertial forces due to different reciprocating and rotating motion of the engine parts

– Centrifugal forces due to different reciprocating and rotating motion of the engine parts

– Friction between the crankshaft and bearing due to engine vibration


Forces on Main Bearing

The main bearing is thus designed to tackle various forces along with supporting the crankshaft rotating at high speed. Hence, the material used in making the bearing is essential so that it can support the crankshaft journal and also adjust to minor surface irregularities.

The engine bearing cannot do the work alone. They need a compatible lubricating oil to bear the load and allow the rotation of crankshaft journal smoothly. The lubricating oil enables the bearing to withstand abrasive particles which create friction between journal and bearing.  


Properties of main bearing materials

For selecting the main bearing for a marine engine, it must have the following features: 

It should be anti-corrosive in nature to avoid corrosion of bearing material and associated parts such as journal and bearing keep

It should be frictional resistant so that there is minimum energy loss between the bearing and the journal

It should have an excellent load-bearing capacity as dynamic load acts on it

It should have good running in and grinding-in ability

The bearing must support the oil film which allows smooth rotation of the journal

The bearing material should be such that it does not react with the lubricating oil

The bearing should have suitable embeddability property so that small particle embed in the bearing surface without harming the journal pin

The bearing material should have an excellent compressive and tensile strength

It must have a thermal resistant property to avoid any damage if it’s running hot


Common defects in bearings

Corrosion: If the oil in which the bearing is placed is acidic, it may lead to corrosion. The surface of the bearing will become discoloured and rough due to corrosion

Abrasion:  If the oil is not filtered and treated correctly and contains minute particles, which are common in engines burning heavy fuel oil, it may cause fine scratches on the bearing surface 

Erosion: When the oil supply pressure is not appropriate, or there is a rapid and unusual journal movement, it will lead the stripping of the overlay layer of the bearing. These phenomena are more common in medium-speed engines.

Fatigue: When the engine load over the bearing is too high, it may lead to the removal of the bearing lining. The bearing surface loads cracked paving.

Wiping:  It is the process when the overlay layer removes due to high temperature. When the bearing is new, wiping is required to remove the initial layer, which helps in re-alignment of the bearing to the journal. However, too much metal wiping can lead to increase in clearances affecting the performance of the bearing

Spark Erosion: When the propeller is at rest, the stern tube, propeller shaft and bearings are in contact with each other. Similarly, main engine bearing and journal are in contact with each other, maintaining continuity of the circuit. When the ship is running, due to the rotation of the propeller and lubricating oil film the shaft becomes partially electrical insulated. It may also happen on the tail shaft using non-metallic bearing which acts as an insulation.

The propeller at the aft is a large area of exposed metal which attracts protective cathodic current which produces an arc while discharging from the lubricating film. This results in spark erosion of bearings, which can lead to a worse situation if lube oil is contaminated with seawater

Crankshaft misalignment: Crankshaft of a marine engine is a massive component when fully put together in the engine. Initially, the complete crankshaft is aligned in a straight line (connection drawn from the centre of the crankshaft makes a straight line) before setting it on the top of main bearings. But with time due to various factors, the straight line may deviate and misalign which can lead to damage to the main bearings

Hence, the increase in the clearance between the bearing and the journal pin can be due to the above-listed factor as well as the following:

-If the bearing is operated above the operating temperature for a longer period

-If there is significant and prolong variation in the engine speed, e.g. over speeding of the engine

-If the lubrication oil film thickness is reduced due to change in the oil flow

–If there is a change in the viscosity of the lubricant 

-If the lubrication oil temperature is high

-If the lube oil used has a different load-bearing capacity than the recommended.  

-There is a change in the engine ambient temperature.

Types of the main bearing

In the maritime industry, there are three famous types of Main bearings used for both propulsion engines which are normally 2 stroke engines and power generation engines which are 4 stroke engines, they are as follows:

1. Lead Bronze Bearing: These bearings consist of the following layers

Flash layer: It is the topmost layer with a thickness of 0.035mm made up of tin and lead. It is used to protect the bearing from corrosion and dust when not in use. This layer flashes off when a bearing is running.

Nickle Barrier: It is the second layer made up of nickel with a thickness of 0.02mm. Its main function is to prevent corrosion and avoid diffusion of tin into bearing metal.

Lead Bronze: The third layer composed of lead bronze which has an excellent anti seizing property and is the principle component which acts as a bearing out of all layers.

Steel back: Steel back is the last and backing part of the bearing used for shape and support over which all the layers are bonded together.

Gudgeon Pin bearing in a 4 stroke engine is usually made of lead bronze bearing and also used for the main bearing for smaller engines.


2.  Bi-metal Bearing: This bearing consists of the following layers

Aluminium Tin: The first layer of bi-metal consists of Al and Sn with a thickness of 0.5 to 1.3mm and this is the main element of this type of bearing.

Bonding Layer: The bonding layer consists of aluminium and it is 0.1mm thick. The main function of the bonding layer is to obtain a good bond between the shell and the top layer.

Steel Back: The backing part used for shape and support.

This type of bearings are used in 4 stroke engine main bearings

3. Tri-Metal Bearing: These bearings are called tri-metal bearing because they consist of three main layers 

Flash Layer: It is the top most layer with a thickness of 1 micron made up of tin and lead and used to protect the bearing from corrosion and dust when not in use. This layer flashes off when bearing is in Running in the period.

Overlay: The second layer made up of white metal (Tin Antimony Copper) which is the main component in this type of bearing. Its thickness is 20 microns.

Interlay: It is the third layer used as an anti-corrosive layer for overlay. It is of 5 microns thickness.

Lining: It is the lining layer between interlay and steel back with a thickness of 1 mm made up of lead and bronze.

Steel Back: The backing part used for shape and support.

Felixstowe Dockers—Fate Of English Channel Migrants Entwined In Brexit Talks

 Immigration - latest news, breaking stories and comment - The ...

The European Union has so far rebuffed British calls for talks on a deal to allow London to send unwanted migrants back to Europe from 2021, and could use the issue as potential leverage in wider Brexit negotiations, diplomats and officials said.

The agenda for this week’s EU-UK talks on their future relationship after a post-Brexit transition period runs out at the end of 2020 did not include specific talks on returning migrants, though London has long pressed for such a deal.

Brussels diplomats and officials following discussions on Britain’s departure from the bloc told Reuters the EU was playing hard to get, believing an agreement on migrants was more important to Britain than the bloc’s 27 member states.

Hundreds of people, including some children, have tried to cross the English Channel to southern England from makeshift camps in northern France this month – many navigating one of the world’s busiest shipping routes in overloaded rubber dinghies.

Britain’s Home Office said this week the uptick in the numbers attempting the perilous crossing was frustrating.

“That is why the (government) is committed … to ensuring we have legislation ready following the end of the transition period,” it said. “This legislation will build on our continuing work with the French government to stop these crossings.”

Britain wants to be able to ship such migrants back to France or Belgium, where they embarked.

But without a new deal with the EU, once its current arrangements with the bloc end it would be obliged under international humanitarian law to take responsibility for anyone landing on its coast, being fished from the water by its ships or brought to its ports by other vessels.

Unlike with Turkey, where the EU needed a migration pact to ensure Ankara keeps on its soil the millions of Middle Eastern refugees it hosts – the 27 EU countries are in no rush.

“The UK has interest in this. We can wait,” said an EU diplomat dealing with migration. “The 27 are not that worried. Of that, 25 do not really care at all. France and Belgium can be to some extent preoccupied, but far less than the UK is.”

Authorities on Wednesday found a dead Sudanese boy on a beach in northern France, as Paris and London said they would shut down the migrant route across the Channel.

SECURITY TRADE-OFF

Sources in Brussels hope a final Brexit agreement will be ready for an Oct.15-16 EU leaders’ summit, allowing time for ratification by year-end, though some have warned it might come later.

EU sources said migration would not ultimately be a deal maker or breaker in the negotiations, where fisheries and state aid arrangements are the biggest lingering hurdles.

But a second EU diplomat said migration could play a role, suggesting a trade-off for talks on a new security and defence pact, which the bloc wants but London has refused to engage in so far.

“If they don’t get the overall deal – they don’t have a migration deal either,” said the person, speaking on condition of anonymity. “If they do go for a deal – they may get something on migration as well.”

The U.N. migration agency expressed concern this week about Britain’s plans to deploy its navy to intercept people and return them to mainland Europe.

“Our collective response should be… from saving lives to combating smuggling rings, expanding legal options, and ensuring that all those who are in need of protection can effectively access it,” said the International Organisation for Migration.

It called on London to ensure vulnerable migrants, such as unaccompanied minors, can continue reuniting with families in Britain after Brexit.

Felixstowe Dockers—4 Missing After Dredge Hits A Pipeline And Explodes in Corpus Christi

 Corpus Christi Dredge Explosion

Coast Guard crews respond to a dredge on fire in the Port of Corpus Christi Ship Channel, Aug. 21, 2020. 

A Sector/Air Station Corpus Christi MH-65 Dolphin helicopter crew was launched to the scene, hoisted two injured crewmembers, and transferred them to Corpus Christi Medical Center.

Four members of the dredging vessel Waymon L Boyd are missing after a fire and explosion near the Port of Corpus Christi, Texas, on Friday, causing the U.S. Coast Guard to close the port’s inner harbor, the agency said.

Two injured crew members have been rescued from the dredging vessel Waymon L Boyd after it caught fire, while a search for missing crew members continues, the Coast Guard said.

The fire started shortly after 9:00 AM ET (1300 GMT) in an area referred to as “refinery row” because of its proximity to several refining facilities, according to a spokeswoman for the Corpus Christi fire department.

Corpus Christi is home to a number of oil refineries and shipping ports, and has become an important exporting locale for crude oil. Valero on Friday said operations at its refinery were normal.

The U.S. Coast Guard closed the Inner Harbor from Harbor Bridge inward of the Port of Corpus Christi ship channel.

Felixstowe Dockers—Maersk Executive Charged In Petrobras Corruption Scheme

A.P. Moller-Maersk (1) | Supply Chain & Transportation Management Blog

Brazilian prosecutors pressed charges on Friday against two people for an alleged scheme to obtain confidential market information from Petrobras to benefit A.P. Moller-Maersk, the world’s largest shipping company.

The case stems from an investigation that started in 2014 as part of Brazil’s sprawling Car Wash scandal, which has since included suppliers like Maersk and uncovered corruption throughout multiple countries in more than 70 police operations.

A statement released by prosecutors on Friday said a former Maersk executive in Brazil, Viggo Andersen, participated in a scheme that led to at least $31.7 million in losses for Petrobras.

Andersen denies the accusations and will have his innocence proved, his lawyer Paulo Freitas said in a written response.

According to prosecutors, Andersen participated in a scheme to bribe a Petrobras executive, through an intermediary, in exchange for privileged information that would guarantee more business to Maersk.

Andersen allegedly inflated shipping contract prices and transferred the proceeds to Maersk commercial representative Wanderley Gandra, who acted as a financial operator for the scheme, the prosecutors said.

Gandra, according to prosecutors, then sent some of the money to Paulo Roberto Costa, a former Petrobras top executive, who supplied confidential information on the state oil company’s shipping needs back to Maersk, the statement said.

Gandra’s lawyer could not immediately be reached for comment.

Costa was arrested in 2014 and was the first of more than 100 people who entered a plea deal with prosecutors. He has provided investigators with information on multiple Petrobras contracts he oversaw, including with Maersk and other international offshore suppliers.

A judge must still decide whether to start a criminal case against Andersen and Gandra or drop the charges.

The alleged crimes relate to the period 2006 to 2014, the prosecution statement said. Andersen left Maersk in 2017, according to his LinkedIn page.

Maersk said it takes the “allegations very seriously and remains committed to cooperating with the authorities.” Petrobras has been collaborating with officials since 2014 and will continue to do so, the company said in a written response.

Last year, Maersk’s offices in Brazil were raided by prosecutors.

Representatives of the Danish company met with Brazilian investigators as far back as 2014 in relation to its dealings with Petrobras during the early stages of the corruption investigation.

Felixstowe Dockers—Mauritius Jails Wakashio Captain Under Piracy And Violence Act

 Wakashio-tanker-captain

Captain Sunil Kumar Nandeshwar, master of the MV Wakashio bulk carrier that ran aground on a coral reef, causing a large oil spill, was arrested and jailed by a district court in Port Louis, Mauritius yesterday. 

Captain Nandeshwar, and Indian national, was arrested alongside the chief officer, Tilak Ratna Suboda, a Sri Lankan and charged with endangering safe navigation under the piracy and maritime violence act.

Local news media and police have reported that prior to the grounding incident, the carrier sailed close to the Mauritius coastline to get a Wi-Fi signal because the crew was celebrating a birthday.

“We are carrying out a full investigation and interviewing all the crew members,” Local police inspector Sivo Coothen told reporters. Both will remain in custody until their bail hearing.

Mitsui OSK Lines (MOL) which chartered the MV Wakashio, issued a press release today acknowledging the arrest but offered no words of support for the officers in jail.

“The Master and Chief Officer of Wakashio have been arrested by the local authority on August 18.” says the MOL release. “MOL is fully aware of its responsibilities and will continue to work with the relevant authorities of Mauritius and Japan.”

MOL also stated that it dispatched a team of 6 employees and some equipment to assist in oil recovery efforts but will wait to “dispatch an additional team in later August”.

In contrast to MOL’s lack of support in the wake of this arrest, Nagashiki Shipping did promise a degree of help. “We will continue to support the crew and their families while awaiting future judicial decisions.” said a company official in today’s official statement.  “We sincerely apologize for causing a great deal of inconvenience to everyone involved.”

Neither of today’s statements mention the fate of the MV Wakashio’s 18 other Indian, Srilankan, and Phillipino seafarers after the arrest of their Captain but media reports suggest they are currently being interviewed by police.

The captain and chief officer’s next court appearance is currently set for August 25th.

Felixstowe Dockers—Offshore Drilling Is ‘Structurally Damaged’ And Help Is Not Coming


Shell-shocked' Trump glum after seeing internal polls that show ...

(Bloomberg) – President Donald Trump helped to clinch an unprecedented deal among the world’s largest crude producers, but the pact hasn’t stopped America’s oil industry from bleeding.

“Offshore drilling is structurally damaged, and recovery is not imminent,” Bernstein analyst Nicholas Green wrote Wednesday in a note to investors. “New contract tenders are few, highly competitive and low priced; most players are badly over-levered and in desperate need of cash.”

The Covid-19 pandemic’s devastating effect on the oil market is rippling throughout the supply chain, from explorers to the companies that provide them with workers and equipment. London-based Valaris, owner of the world’s largest offshore rig fleet, became the latest casualty on Wednesday.

In North America alone, dozens of producers and oilfield servicers have gone bust in 2020, and Mizuho Securities USA predicted earlier this year that as many as 70% of U.S. shale producers may go bankrupt.

Oil prices pulled out of a freefall after an agreement by OPEC and its allies, prodded by Trump, to rein in production. But after embarking on aggressive growth plans when crude was trading above $100 a barrel a few years ago, the U.S. industry is still grappling with crushing debt loads, and demand for oil and petroleum products remains well below normal as nations struggle to control the spread of the virus. Longer-term, oil companies are facing investor calls to address climate change and transition away from fossil fuels.

Trump tweeted in April that the OPEC+ pact was a “great deal for all” and would “save hundreds of thousands of energy jobs in the United States.” He met with oil producers at the White House and directed the Energy Department to buy crude for the Strategic Oil Reserve, but a plan to steer financial aid to drillers didn’t gain traction. U.S. producers are in dire straits just months ahead of a presidential election that could have significant consequences for the oil industry, with Trump trailing Joe Biden in most polls.

“Oil probably in the second quarter faced the biggest challenge it’s ever seen with the largest demand shock that oil has ever experienced,” James West, an analyst at Evercore ISI, said Wednesday in a phone interview. But “we’ve still got plenty of runway for fossil fuels and hydrocarbons. While there’s still a movement to bring in alternatives, they lack some critical mass, and we’re going to be using oil and gas, particularly natural gas, for the foreseeable future.”

Oilfield services and offshore rig providers soon followed shale drillers into bankruptcy. Oil contractors at sea are going bust at the fastest pace in three years as explorers spurn high-cost drilling to deal with the worldwide slump in commodity prices. While newer deep-water projects are less expensive, they still take longer to develop than land-based shale wells and typically are more costly.

Valaris, which was created in 2019 out of the combination of Ensco and Rowan, joins rivals Noble Corp. and Diamond Offshore Drilling Inc. in bankruptcy. Pacific Drilling SA earlier this month said it may return to bankruptcy court for the second time in less than three years, and Transocean, the world’s biggest owner of deep-water oil rigs, has said it’s exploring strategic alternatives.

Mixed Record

Valaris’s bankruptcy comes days after the Trump administration authorized a sweeping plan to sell drilling rights and spur oil development in Alaska’s rugged Arctic refuge. While Trump has touted U.S. energy dominance, his record in addressing oil-industry priorities has been mixed. Even as he personally intervened to help broker a global pact to cut oil output this spring, the president trumpeted low crude and gasoline prices as a “tax cut” for consumers.

Energy industry leaders have griped that despite his supportive rhetoric, Trump has routinely prioritised other segments of the U.S. economy, including coming to the defence of coal at the expense of natural gas and adopting steel tariffs that sparked concern about higher pipeline costs. They were also disappointed in his decision to forgo a chance to expand offshore oil and gas leasing in the eastern Gulf of Mexico, amid concerns it would hurt his chances of re-election in Florida. Other moves to aid energy interests have been blocked in court.

Under Trump, the Interior Department has rebuffed offshore oil producers’ pleas for a blanket waiver lowering the royalties they pay the federal government for crude and gas extracted from federal waters.

Still, the oil industry largely views Trump as the preferred alternative to Biden, whose $2 trillion climate plan aims to end U.S. reliance on fossil fuels.

The cascade of oil-patch bankruptcies isn’t likely to stop until supply and demand come back into balance, which could take some time. Global oil demand will rebound next year as the world emerges from the coronavirus pandemic, but won’t fully recover until 2022 at the earliest, the International Energy Agency said in June.

Producers are responding to investor demands for lower spending, however, which will eventually result in a tighter oil market and higher prices, Paul Sankey, founder of Sankey Research, said in a note to investors.

“We are on the path to consumers yelling for oil companies to increase investment,” Sankey said.

Felixstowe Dockers—Mauritius To Scuttle MV Wakashio

Mauritius oil spill: MV Wakashio captain arrested | KYR News

Mauritius said on Thursday it had started to scuttle the Japanese-owned bulk carrier that ran aground off its shores and spilled oil over pristine waters and fragile coral reefs.

The MV Wakashio hit a coral reef off the Indian Ocean island on July 25 and began spilling oil on Aug. 6, prompting the government to announce a state of environmental emergency.

Two of the ship’s officers were arrested on Tuesday on charges of endangering safe navigation.

The government’s National Crisis Committee said in a statement the exercise had started at around 1200 GMT.

“The … Crisis Committee has taken note of the progress made with regards to the scuttling exercise of the stem section of the casualty which has reached the identified location as confirmed by the Chief Salvage Master,” it said.

On Wednesday, the government said the ship’s sinking would be done in a way that would avoid further pollution or interfere with maritime routes.

Environmental group Greenpeace said the action would lead to more pollution.

Scientists say the full extent of the spill was still unfolding but the damage could affect Mauritius and its tourism-dependent economy for decades.

Reporting by George Obulutsa; editing by David Evans

Felixstowe Dockers—Maersk line triples profits despite COVID

Maersk Vector Logo | Free Download - (.SVG + .PNG) format ...

The good news is that container shipping looks like it will weather the coronavirus crisis. The even better news is that COVID-19 has accelerated and solidified a new, more resilient business formula for the industry.

On Wednesday, the owner of the world’s largest container line, A.P. Moller-Maersk (APM, Copenhagen: MAERSK-B), posted stronger-than-expected results for the second quarter — the very quarter the coronavirus was peaking.

Maersk’s experiences during the outbreak confirm that liner alliances and consolidation are paying off, allowing capacity to be much more actively managed to match demand, supporting rates. The crisis has also confirmed the value of digital spot-booking platforms.

“Since it has worked so well for us [during the outbreak] why should we change that?” said APM CEO Soren Skou during the conference call, referring to active capacity management. “That will be our approach going forward. In my view, this is a structural change.”

Digital spot booking platforms will likewise be the new normal. “A version of a [digital] spot product will be ‘table stakes’ in two to three years.” Skou maintained.

The winning formula for container shipping that has emerged: consolidate capacity; toggle capacity in line with demand; go for profits not market share; split exposure between spot and period contracts; push spot customers toward digital booking platforms; and use spot booking data to more accurately toggle capacity in line with demand to further enhance earnings.

Strong quarterly results

APM reported net income of $443 million for the second quarter of 2020, almost triple net income of $153 million in Q2 2019. Earnings before interest, tax, depreciation and amortization (EBITDA) totaled $1.7 billion in Q2 2020, 8% above the consensus estimate of $1.58 billion. Projected full-year EBITDA is $6 billion-$7 billion, topping the consensus estimate of $5.8 billion.

In the ocean segment, Q2 2020 revenue was $6.57 billion, down 8.7% year-on-year due to a 15.8% volume decline offset by a 4.5% freight rate increase. Costs fell faster than revenues — down 16% to $5.16 billion due to lower bunker and time-charter costs. Consequently, Maersk’s Q2 2020 ocean EBITDA increased 26%, to $1.36 billion.

Three months ago, Maersk predicted second-quarter demand could fall by 20-25%. As it turned out, demand was down 20% in April, but by a lesser amount thereafter. Demand is down this month by the mid to high single digits, reported Skou.

Maersk “blanked” (canceled) more than 166 sailings in Q2 2020. “Tight capacity deployment led to a decrease in capacity that was slightly more than the decline in actual volume, as we expected the decline in volumes to be steeper,” acknowledged APM CFO Patrick Jany.

Carriers have added that capacity back. Skou said that as of now, Maersk has more capacity deployed in the trans-Pacific market than it did at this time last year.

Capacity reductions in Q2 2020 helped prop up rates. Rising rates in the spot market — which accounts for about half of Maersk’s business — brought up the overall average. Decreases in the Bunker Adjustment Factor (BAF) due to declining fuel costs have brought contract rates lower. Some contracts adjust BAFs monthly, some quarterly.

Active capacity management

When the coronavirus struck, the initial reaction among analysts and executives was to compare potential outcomes to the aftermath of the global financial crisis. But container lines are behaving much differently now than they did then.

According to Skou, “In 2009, the thinking at Maersk, and I think of the whole industry, was that if you had a network you would have to keep sailing it and filling it up at all costs. We lowered prices in order to fill the network. Obviously, that approach has now completely changed.

“In 2009, we went after market share. This time, we are focusing on profitability. We have been saying that for a couple of years and the pandemic has just strengthened our resolve.

“It’s not just because of the [change in] culture and the way of thinking. We now have a much bigger network, which makes it much simpler to take out capacity. If you’re operating two weekly services from Asia to Europe, it’s a huge decision to take out one string, because you cannot cover all the ports and some customers will not be served. If you’re operating 13 or 14 strings, as we were before the crisis, it’s quite a simple proposition to take out capacity and still serve all customers,” said Skou.

“The other big difference today is that in 2009, the industry, and for that matter ourselves, had an orderbook equal to 50-60% of existing capacity. Today, the orderbook is around 9%,” he added.

Container industry in financial crisis vs. coronavirus crisis. Demand fell in both cases but carriers kept the supply-demand balance and rates much higher in current crisis (Charts: Maersk)

Digital spot-booking platforms

The other big structural change is the move to online spot bookings via platforms such as Maersk Spot. According to Jany, Maersk Spot has gained further traction and accounted for over 40% of the company’s Q2 2020 spot volumes.

“We see plenty of potential for expansion and eventually it will be close to 100%,” said Skou. “The complication right now is how to implement it in the U.S., where there are rules to file with the Federal Maritime Commission that we need to resolve.

“The big benefit for us is that it’s a commitment product. That means the customer makes a booking and actually has to show up with a container or pay a penalty. That, of course, makes it easier for us to plan utilization. We can avoid situations where we risk ‘rolling’ [pushing back loadings of] our customers when we get it wrong.

“There’s also a cost benefit to us because the customer is doing all the work in terms of getting a price online, making a booking and doing the documentation,” said Skou, who added, “Frankly, I think it would be very strange if our industry did not develop in this [digitalization direction], just like we have already in business-to-consumer industries.”

The coronavirus appears to be speeding up the transition. Sea-Intelligence CEO Lars Jensen commented on Wednesday, “The digital change in the industry has been massively accelerated and anyone not ‘on the train’ at this point needs to play catch-up real quick.” 

Footnotes