The zero-emissions vessels, which will be constructed for New York-based Zeeboat and available for charter from 2025, will run entirely on battery power, without the use of diesel engines—a first for towboats in North America. Vancouver, B.C.-based Shift Clean Energy will deliver the battery energy storage systems.

ISS, which was selected in 2021 to provide general contract, project management and vessel support services for the manufacture and delivery of the first-of-their-kind vessels, said its request for proposal (RFP) will be open form May 15 through June 30, 2022 and is for construction of the first hull, with options for up to three additional hulls.

The fully-electric vessel is based on The Shearer Group, Inc.’s (TSGI). proven 95- by 34-foot  towboat hull design, which is said to increase water flow to the propeller and improve overall efficiency of the barge/towboat combination by more than 10% compared to traditional towboat designs. When coupled with an azimuth thruster pod drive system, the hull design will improve overall efficiency by more than 30% when compared to conventional towboats, the Houston-based naval architecture and marine engineering firm said.

The project partners said their first goal is to enable greener transit with zero-emissions towboats, but they will later work toward a joint development of electrification technologies to further reduce the carbon footprint of ports and harbors.

“Moving carbon-intensive processes, like shipping and port management, to electric power sources is a critical step to meeting net-zero emissions targets,” said Wade Stockstill, ISS CEO. “Our electrification technologies and track record dovetail neatly with innovations from partners like Shift Clean Energy, enabling ISS to deliver turnkey solutions to some of today’s biggest green energy challenges.”

ISS said interested shipbuilders should contact its director of business development, Jessica Lewis, at Jessica.Lewis@iss-na.com for RFP submission information and detailed project specifications.

Source: www.marinelink.com

Image: www.pexels.com

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The study, which was conducted by MDS Transmodal, identifies the extent of capacity restriction in 2021 that resulted from scheduled port calls being skipped by shipping lines. It measured the number of container ship slots that were expected to be available at the port but never materialized because the lines skipped the port—often because vessels were already fully occupied by containers collected at ports called at earlier on the service.

Skipped ports have become part of how shipping lines are managing their heavily utilized fleets.

“Skipped port calls have multiple effects on shippers,” says James Hookham, director of the GSF. “They create local upward pressure on shipping rates, as shipping line agents ‘auction off’ available slots on the vessels that do call. Shippers also face unexpected surcharges for the handling and storage of delayed containers.

“More pernicious is the wider effect on national economies, especially those of developing nations that lose opportunity to deliver their exports, and hinder the recovery of their economy from the effects of lockdowns and COVID restrictions,” Hookham adds.

Source: www.inboundlogistics.com

Image: www.pexel.com

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Traveling in rigid hull inflatable boats (RHIB), kayaks and as swimmers, protesters from Denmark, Sweden, Norway, Finland, Netherlands and Germany on Sunday went in front of supertankers Waikiki and SFC Baltica in the Baltic Sea, displaying banners with “Oil Fuels War” as Greenpeace calls on Europe to reject and ban Russian fossil fuel imports to weaken the attack on Ukraine.

Mads Flarup Christensen, executive director of Greenpeace Nordic, said, “While people suffer in Ukraine and people in Russia take to the streets pleading for peace, Putin’s oil and gas is still arriving at European ports, contributing to his war chest. Supertankers crossing our seas with Russian oil and gas are still delivering fossils to Europe. If we want to stand for peace, we must stop this and urgently get off oil and gas.”

Waikiki, owned by Greek shipping company Cardiff Marine, is reportedly carrying 100,000 tonnes of crude oil from Russia to Rotterdam, and SFC Baltica, owned by Russia’s Sovcomflot, is transporting 85,000 tonnes of fuel oil from Russia to Antwerp.

© Will Rose / Greenpeace

A new tracking service launched by Greenpeace UK has identified at least 189 supertankers carrying oil and gas from Russia since the start of its invasion of Ukraine on February 24, with 88 of them headed to Europe. Despite some countries declaring a ban on the arrival of Russian vessels, Russian cargo is still arriving via ships registered to other countries.

Russia is the largest source of the European Union’s fossil fuel imports. Europe spends up to $285 million per day on Russian oil, which funds Putin’s war effort, according to the Transport & Environment (T&E) thinktank.

Last week in France, Greenpeace activists confronted Russian liquefied natural gas (LNG) carrier Boris Vilkitsky at sea, and earlier this month 20 activists from Greenpeace Germany painted ‘No Coal’ and ‘No War’ on the side of the bulk carrier Grant T loaded with 100,000 tons of Russian coal as it approached the port of Hamburg.

Dockers in France, the U.K. and the Netherlands have already refused to unload fossil tankers coming from Russia. And the Swedish Dockworkers Union decided on Thursday to block ships from Russia.

© Jean Nicholas Guillo / Greenpeace

Source: www.marinelinks.com

Image: www.pexels.com

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Classification societies provide services such as checking that ships are seaworthy, and this certification cover is essential for securing insurance and entry into ports.

In recent days, Britain’s LR and Denmark’s DNV, have both announced they were stopping or winding down their business ties with Russia.

The International Association of Classification Societies (IACS), which had 12 members previously including LR and DNV and forms the top tier of ship certifiers globally, said late on Friday it was withdrawing RS’ membership with immediate effect, which it said was “no longer tenable”, citing UK sanctions on Russia where IACS is domiciled.

“IACS deeply regrets the circumstances that have resulted in this decision,” it said.

RS did not immediately respond to a request for comment on Monday.

An IACS spokesperson said on Monday that the impact on RS of no longer being an IACS member would “depend on its various, private bilateral arrangements with entities such as shipowners and flag states”.

The spokesperson said IACS was a technical association that “develops and agrees minimum technical standards”.

“IACS will need to make various consequential changes regarding the composition of various working groups,” the spokesperson said.

“IACS is not involved in the operational and commercial activities of its members. As such, the decision whether to continue to engage bilaterally with RS will need to be taken by each IACS member individually.”

RS said in June last year it had formed a strategic partnership with leading Russian shipping company Sovcomflot (SCF), which included cooperating on the development of new marine fuels to reduce emissions and technical supervision of ice-class ships operating in the Arctic.

SCF was among the Russian entities the U.S. Treasury restricted last month from raising capital in U.S. markets, which shipping sources say will complicate transactions for the Moscow-listed company.

It was not yet clear what impact the growing restrictions would have on the safety of SCF’s fleet and their ability to sail.

Source: www.marinelinks.com

Image: www.pexels.com

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During 2021, selected barge grain movements (moving through key locks, approximately half of overall tonnage shown above) were down slightly from the previous year, according to the U.S. Department of Agriculture’s December 30 Grain Trade Report. Michael Steenhoek, executive director of the Soy Transportation Coalition, in speaking with Marine News, stressed the linkages between the export markets and agricultural transportation on the rivers, noting that the U.S. exported 60.5 million total metric tons of soybeans in the marketing year ended August 31, 2021 adding that, overall, 35 million of the total went to China. He said the leading export region is the Mississippi/Gulf, accounting for 27 million tons in the 2020/2021 marketing year. He said that, normally, around 60% of U.S. soybean exports will come out of that region, with the overwhelming majority of that arriving via barge transportation.

Medium term trends on the waterway system were discussed within a detailed study on the waterways released by Vanderbilt University in September 2021. The authors noted, “The last 20 years validate that the underlying markets relevant to barge demand are stable and resilient, and the summary outlook for 2025 anticipates that tonnages will be slightly lower and ton-miles slightly higher than 2019.

The increase in ton-miles is in spite of a reduction of tons and is the result of a generally bullish outlook for the agricultural sector, which is expected to increase by nearly 15%. Most agricultural barge transports are also longhaul shipments of 1,000 miles or more. In short, the U.S. is expected to retain its position as one of the world’s largest grain exporters.” The USDA, in its 2021 “Agricultural Projections to 2030”, shows small, but steady growth in exports (which drives barge traffic into the Lower Mississippi region) for the major grains.

While agricultural moves are likely to grow, the opposite is true for coal. The Vanderbilt University researchers note that “…the energy sector sees the most significant projected change, reflecting a continuing decline in utility coal use, and the beginning of a gradual shift away from petroleum use across numerous economic sectors as decarbonization policies and practices are implemented, impacting overall refined petroleum demand.” Similar views can be seen at the level of individual ports. For example, in a Kentucky Economic Development Summit, held in Spring 2021, scenario-based forecasts for 11 individual riverports out to 2045 (prepared by IHS Markit) were presented. A number of ports saw grain replacing coal as the top commodity handled; in those ports handling coal, its moves fall substantially under the varied scenarios.

The forecast for the tank barge marketplace is upbeat. In a conference call accompanying the release of Kirby’s 2021 fourth quarter earnings, company CEO David Grzebinski told investors: “In inland marine, we expect a strong market in 2022 driven by continued economic growth, increased volumes and minimal new barge construction. This should contribute to further improvements in the spot market with our barge utilization ranging in the high-80% to low-90% range for the year.” He did caution that “the first quarter [would be] the lowest due to seasonality and the headwinds related to COVID with the positive pricing environment building throughout the year.” For comparison, during the Spring 2020 lockdowns, Kirby’s utilization had plunged toward the 60% level, with 2021 providing a recovery up toward 80% utilization.

Clark Todd, chairman and CEO of Blessey Marine Services, a New Orleans area based specialist in transporting liquid cargoes for petroleum and petrochemical companies as well as commodity trading houses, explained to Marine News, “We have continued to see a moderate increase in demand for inland tugboat and barge business to start the year. The equilibrium of supply and demand of our assets across the industry is tightening up as fewer new build tug boats and barges will be built in 2022. We are optimistic that the upcoming summer driving season will yield stronger demand as consumption of refined products increases. So, we look for 2022 to be a better year for everyone in the inland tugboat in barge business.”

In the investor call’s Q&A session, Kirby’s Grzebinski offered similar sentiments, saying, “Demand continues to grow. We still got some chemical plants coming on. And as you know, demand for liquid volumes typically goes up with GDP. We’re looking at a pretty good GDP number this year and probably next year…. [the supply picture] is even better. With barge pricing a new 30,000-barrel barge is probably $4.1 million to $4.2 million for a brand-new barge. That’s the highest we’ve ever seen. And a lot of that is steel price and some labor costs, but at those prices, we’re not seeing much newbuilds if any at all… and barge retirements are still going on because the equipment is getting older…So, when you put supply and demand together, this is about the best we’ve seen in a long, long time, and we think it’s a multiyear kind of upswing.”

Equity analyst Gregory Lewis, from brokerage BTIG, in a report released following Kirby’s call—where his recommendation was upgraded to “Buy” from “Neutral”—wrote, “After limping along for years, first around barge oversupply (2017-2019) and then from COVID (2020-2021), the inland barge market finally looks to be ready to inflect higher. Not surprisingly…the near- and medium-term setup looks good… And while the outlook for U.S. GDP remains constructive, which should buoy continued growth in both refined product and petrochemical volumes, on the back of what has been a challenging five-year period for barge owners the medium-term supply outlook is constructive (the inland barge fleet looks to have shrunk in 2021 and the lack of orders at yards points to negative fleet growth again in 2022).”

Going forward, new attention on infrastructure in Washington, D.C., against an ongoing backdrop of less carbon intensive transport generally—the subject of the Vanderbilt University study—may help waterborne cargo flows, with switching from less efficient modes and greater supply chain resiliency, encompassing matters such as Hurricane Ida, the I-40 Bridge and Colonial Pipeline disruptions now on the radar. The other big mover, aggregates (encompassing a variety of cargoes), is tied to construction, and waterborne flows could likely increase with spending on roads and other projects.

The WCI applauded the passage of the Infrastructure Bill, in late 2021, earmarking $2.2 billion for inland waterways projects. In mid-January, 2022, when the USACE identified specific projects to be funded, WCI president and  CEO, Tracy Zea said, “Today’s release of inland waterways infrastructure funds will not only advance the inland waterways construction portfolio but also create thousands of skilled jobs for America’s building trades, make American farmers more competitive, and promote energy security. WCI thanks its members and supporters on Capitol Hill, who helped to push this funding over the goal line.” Noteworthy projects funded included the Kentucky Lock (on the Tennessee River, near Paducah) the Montgomery Lock on the Ohio River (about 30 miles downstream from Pittsburgh), and Lock and Dam 25 on the Upper Mississippi River (mile 241, north of St. Louis), benefitting from the USACE’s Navigation & Ecosystem Sustainability Program (NESP).

Indicative of future shifts of traffic onto the rivers is progress being made on shifting containerized cargo from crowded supply chains onto ships built specially for transporting boxes down the Mississippi River. American Patriot Holdings (APH), a company formed by a trio of industry veterans involved currently involved in barging of liquid cargoes, announced that it would be seeking bids from U.S. yards for construction of four “hybrid”—liquefied natural gas (LNG) and conventional fuel—fueled container vessels, with options on four additional vessels. APH has been inking tie-ups with ports on the rivers, including terminals at Plaquemines Parish, La., Memphis, Tenn. (a distribution hub served currently by container on barge services linking it to New Orleans), and nearby to St. Louis, which local organizations have promoted as “The Ag Coast of America”. The vessel designs, ranging from 1,800 TEU for use on rivers with locks up to 2,400 TEU for use on the Mississippi River, will enable speeds faster than those of traditional tug/ barge tows. One group, the Mid-America Freight Coalition, wondered whether the plans represented a “Marine Freight Renaissance”.

Efforts to supercharge container transport on the Mississippi have been underway for several years, but they have taken on a sense of urgency with the ongoing supply chain chaos of 2021. The Soy Transportation Coalition’s Steenhoek offered a very positive view of APH’s plans, in remarks at Kentucky’s 2020 Riverports Summit. “There is a trend towards moving agricultural commodities via containers, including commodities like soybeans.” In moving beans to export markets, he noted that bulk transport would predominate, but container transits, backhauls for boxes that transported consumer goods up the rivers: “the slice of the pie chart that is labeled as containerized shipping will continue to grow….as shippers try to localize supply chains in a global market.”

Modal shifts from surface transport (road and rail) on to the rivers has also been a feature in the bulk cargo moves. The U.S. Maritime Administration’s America’s Marine Highway program’s late 2021 awards included a $1.4 million grant for the M-70 Barge Service linking Cincinnati with ports in Kentucky along the Ohio River, following up on $2.9 million awarded the previous year for related projects. Steel producer Nucor Corporation, the project sponsor, will increase its transport of steel products by barge, taking trucks off the roads. When the 2021 grants were announced (which also included funding for Seacor’s container-on-barge linkage from Memphis to the Lower Mississippi River), the Acting Maritime Administrator Lucinda Lessley described AMH as “an innovative program that encourages the use of America’s navigable waterways for the movement of freight and people as an alternative to land-based transportation.” Analysts and port executives participating in the Kentucky Riverports 2021 session (a follow-up to the 2020 event) emphasized the potential to divert multiple types of cargo moving in surface modes on to the Ohio River, and other waterways.

The year 2021 did not see any significant merger and acquisition activity, so that the well-known names continue to dominate. On the dry side, with a total fleet of more than 18,000 barges, Ingram’s fleet totaled around 3,900, American Commercial Lines (ACL) with more than 3,000 and American River Transportation (tied to agri-giant ADM) with approximately 1,800 barges. On the liquid side, with 4,000 total barges, Kirby dominated with more than 1,000 units, followed by Canal Barge, ACL and Florida Marine, each with more than 300 barges.

In summing up the sector’s overall picture for Marine News, Blessey’s Clark Todd said, “As the incoming chairman of the board of American Waterways Operators, I have a unique perspective of the entire inland tugboat and barge industry. In my role at AWO, I have the opportunity to have dialogues with the different sectors of the marine world. A few of the sectors have already started to see stronger demand and utilization. With rising crude oil prices, and an eagerness for folks to travel, we believe 2022 will be a very strong as a jumpstart to recovery in our industry.”

Source: www.marinelinks.com

Image: www.pexel.com

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The overall index, which factors in rates for capesize, panamax and supramax vessels, was down 72 points, or nearly 3.7%, at 1,896, the lowest since Feb. 10.

The capesize index (.BACI) dipped 237 points, or 13.8%, to a one-week low of 1,476.

Average daily earnings for capesizes, which transport 150,000-tonne cargoes such as iron ore and coal, fell by $1,970 to $12,239.

The panamax index (.BPNI) eased 25 points, or 1%, to 2,375.

Average daily earnings for panamaxes, which ferry 60,000-70,000 tonne coal or grain cargoes, fell by $227 to $21,374.

The supramax index (.BSIS) was up 43 points to 2,320.

Source: www.marinelink.com

Image: www.pixabay.com

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The North American cold chain market is expected to reach $118.55 billion by the end of this year, with industries from pharmaceutical to food manufacturers dependent on the latest advancements in efficiency and reliability. As e-commerce grows and rail and truckload volumes soar, there has been an increased need for specialty services such as refrigerated shipping.

Keeping cargo at optimum temperatures during transport takes experience that only comes from following rigid standard operating procedures (SOPs) combined with state-of-the-art technology, as well as clear protocols if problems arise. Here are four habits of highly effective cold chain shippers.

KNOW YOUR COMMODITY

When transporting temperature-sensitive freight, what you are shipping is as important as how it’s shipped. Produce is different from frozen packaged goods, which are different from pharmaceuticals or nursery stock. All stakeholders involved in the shipment—shipper, driver, dispatcher, receiver—should be familiar with the product and its specifications. The cargo’s temperature set point, acceptable temperature range, and, in the case of produce, pulping instructions, should be clearly and accurately documented on all required paperwork.

Less than a decade ago, cold chain shippers would wave goodbye to their freight at the loading dock, hoping their shipment would get to its destination safely and unspoiled. That scenario has changed with the advancements in new freight technologies providing visibility that mitigates risk and adds agility. Whether shipping by rail or by truck, cold chain providers can now deliver real-time information through GPS location tracking and onboard temperature-monitoring.

FOLLOWING SOPS TO THE “T”

As food moves through the supply chain, it is rarely more at risk than when in transit. Following a strict set of guidelines and SOPs is crucial for every step of the shipment’s journey. Shippers, drivers, and receivers should each have their own set of procedures to follow. Critical aspects of successful cold chain shipping include pre-cooling both cargo and trailer, knowing when to run a reefer unit on continuous versus start-stop, avoiding mixed loads of fresh and frozen cargo, and understanding best practices for loading and unloading temperature-sensitive freight.

ACCESS TO CAPACITY IN A TIGHT MARKET

Since the beginning of the pandemic, freight volumes have skyrocketed, and what scarce capacity there was in the truck market has become even scarcer. Refrigerated shippers were most affected, as there are fewer reefer units in the market than dry vans. Being able to access additional capacity when the market is volatile is essential to a successful cold chain strategy. Having the option to use asset-based or brokerage transport gives shippers multimodal solutions—a clear advantage when capacity becomes an issue.

Source: www.inboundlogistics.com

Author: Steve Covey, Executive Vice President, Hub Group

Image: www.pixibay.com

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But already there is disagreement about how it will work given the complexities of the shipping industry and how fast it can decarbonize.

Here is what is known so far about the process ahead.

Why should shipping be included in the ETS?
With about 90% of world trade transported by sea, shipping accounts for nearly 3% of the world’s CO2 emissions.

Environmental campaigners say efforts by the industry to cut emissions are too slow and that including shipping in the European Union Emissions Trading System (ETS) will speed up decarbonization.

What are the proposals at the moment?
Launched in 2005, the ETS compels manufacturers, power companies and airlines to buy permits to cover each tonne of carbon dioxide they emit.

Prices for permits in the scheme are nearing 100 euros ($114.44) a tonne, a level analysts say will spur further investment in low-carbon energy sources.

Last July the European Commission proposed adding shipping to the ETS gradually from 2023 until 2026 when shipowners would need to buy permits covering all their emissions inside the EU and 50% of their emissions from international voyages starting and ending in the EU.

The proposal must be negotiated by the European Parliament and EU countries before it becomes law.

However, the European Parliament wants shipping phased into the ETS earlier, by 2025.

It also wants the entity responsible for decisions affecting CO2 emissions such as buying the fuel to pay, meaning they would need to buy carbon permits. That could be the shipowner, or the commercial charterer or operator of a ship.

In contrast, the Commission has said shipowners should always bear CO2 costs.

Parliament wants the EU to consider extending the ETS to cover all shipping emissions to and from Europe, if regulatory efforts to curb emissions by the UN shipping agency, the International Maritime Organization (IMO), fall short.

If IMO measures cut emissions quickly enough to avert disastrous climate change, the EU could roll back its inclusion of shipping in the carbon market, Parliament’s draft proposal said.

The European Commission’s proposal faces months of discussions. The European Parliament and EU countries can ask for changes to the text and agree on a final version.

How does the shipping industry view the proposals?
There are divergent views within the commercial shipping industry, which is made up of different segments including container, oil tanker and dry bulk.

There is disagreement over who will pick up the bill and whether it falls to the shipowner or the party that hires a ship, known as the charterer.

With millions of dollars in fuel costs for every voyage, the stakes are high.

The Union of Greek Shipowners, representing dry bulk, and tanker association INTERTANKO welcomed the inclusion of charterers saying those responsible for and benefiting from transporting cargo are responsible for emissions.

In contrast, the World Shipping Council (WSC) – representing container lines – says shipowners should share responsibility for decarbonization and that the proposed definition of a responsible entity “would corrupt the ETS”.

“Ship greenhouse gas emissions result from the combination of design technology, fuel consumed, and operational practice,” said WSC Chief Executive John Butler.

“A regional EU ETS carbon price must apply to all parties who have a role in GHG reductions – shipowners and operators.”

Pressure is building on the regulatory side too.

The IMO’s goal is to reduce overall GHG emissions from ships by 50% from 2008 levels by 2050, below targets set by countries such as the United States which have pushed for the agency to adopt a zero emissions target by 2050.

The IMO has said concrete progress was made in 2021 to combat climate change including new regulations to improve the energy efficiency of the world fleet, adding that it would work this year on revising its GHG strategy and finalize it in 2023.

The IMO has said regulations should come through the agency and be global in contrast to the EU’s approach, adding that regional legislation would not favor the concerns of developing countries.

Source: www.marinelink.com

Image: www.pexels.com

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“The production of green ammonia is a key component of the decarbonization plans for international shipping. While the largest 17,000 ships are unlikely to find economic value in using hydrogen-derived green fuels, a very significant portion of the world fleet may find green ammonia to be a viable pathway to zero emissions.

“The decarbonization of other difficult to abate sectors such as chemical and steel manufacture as well as aviation will also require the manufacture of a substantial amount of these green e-fuels, Core Power said.

The concept

“Our concept design is for an offshore facility partnering advanced nuclear power with an offshore ammonia production facility, which will create green ammonia from abundant seawater and air. No emissions would come from the plant,” says Dr Rory Megginson, CORE POWER’s Director of Analytics.

Core Power said its modeling showed that with current technology it is possible to produce one million tonnes of ammonia per year using 1.2 GW of electric power, on each floating production platform, reducing to 0.9 GW by 2050. This is the equivalent of 440,000 tonnes of very low sulphur fuel oil (VLFSO) and it would allow the decarbonization of a considerable number of vessels, the company said.

The flexible nature of these systems will mean it will also be possible to provide a mixture of electricity, hydrogen, and ammonia for other applications, including chemical manufacturing and aviation, Core Power said Dr. Megginson says: “The production of green ammonia at sea using advanced nuclear power would be superior to both productions from renewables and non-marine atomic systems because atomic power has the highest capacity factor of any power generation method – whereas intermittent renewables, notably wind and solar, have the lowest. This reliability and dispatchability makes advanced atomic the ideal power source for e-fuel production.”

Moving the reactors to sea will allow for a substantial reduction in costs due to the lack of a need for expensive civil engineering as well as opening the possibility of shipyard construction, Core Power said.

“The production of Molten Salt Reactor technology is modular by design rather than the historical ‘first of a kind reactor,’ that has kept nuclear generation prices elevated up until now. Offshore advanced atomic power shows the best results at the lowest cost for large scale, secure, and truly green ammonia production,” the company said.

Source: www.marinelinks.com

Image: www.pixibay.com

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