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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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The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, dipped 11 points, or about 0.5%, to 2,358 points, its lowest since March 8.

The main index has gained about 6.4% this quarter and 15.6% in March, its second monthly gain this year.

The panamax index dipped 95 points, or 2.9%, to 3,141 points. The index added about 22.1% this quarter, after posting declines in the last two. For the month, it was up more than 20%.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, fell by $850 to $28,273.

Dalian iron ore rose boosting a quarterly gain that was the biggest since end-2020, while the Singapore benchmark hovered around the $160 mark, as traders anticipated additional policy support to shore up China’s economy.

The capesize index gained 114 points, or 6.9%, to 1,760, but posted its second straight quarterly decline at 23.9% and an 8.8% monthly decline.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, increased $938 at $14,593.

The supramax index dropped 67 points to 2,808 points and increased about 22.6% for the first quarter of the year.

Source: www.marinelink.com

Image: www.pixibay.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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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

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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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In his speech, Soren Toft explained MSC’s views on the status of decarbonization in the container shipping sector, summarized how the company is approaching this challenge and commented on how everyone must move forward together in collaboration to tackle climate change.

As shipping volumes have grown over the years, so have the environmental emissions produced as a by-product of delivering goods around the world. Container lines such as MSC must continue to do their part to help mitigate the impact of climate change while continuing to operate responsibly in meeting the ever-increasing demand for global trade, Toft said, “It is critical that our priority this year is not only to respond to the huge demand we are experiencing in the very complex, congested markets that emerged amid COVID, but also to ensure that we do not decouple this from our efforts to decarbonize.”

Toft said collaboration is key to achieving the decarbonization goals set out by the shipping industry, and noted MSC already fosters industry-wide, as well as cross-sector collaboration to enable the massive required investments. While the company continues to invest in low-carbon technologies and explore different fuel options, carriers in general continue to struggle from a lack of solutions available at scale, the CEO said.

With the total cost of decarbonizing shipping estimated into the trillions of dollars, carriers must make expensive capital decisions that will live on for decades. Urgent investment and a better understanding of how business and society will share the cost burden is also required, Toft said.

Soft emphasized that “the transition to a low-carbon economy requires broad collective action and productive partnerships with our stakeholders across and beyond shipping.”

“By cooperating and collaborating with others, we will capitalize and build on the interdependencies between ocean-going and inland logistics as well as other sectors providing fuels, distribution systems and infrastructure,” he concluded.

Source: www.marinelink.com

Image: www.pixabay.com

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The overall index, which factors in rates for capesize, panamax and supramax vessels, fell 24 points, or 1.7%, to 1,391, its lowest since mid-February 2021.

The capesize index slipped 55 points, or 6.2%, to 836, its lowest since June 2020.

Average daily earnings for capesizes, which transport 150,000-tonne cargoes such as iron ore and coal, dropped by $455 to $6,935.

Iron ore prices fell on Monday as traders turned cautious ahead of the Spring Festival holidays and Beijing Winter Olympic Games, shrugging off a further liquidity-easing move by China’s central bank.

The panamax index edged 3 points higher to 2,013, snapping an 11-session losing streak.

Average daily earnings for panamaxes, which ferry 60,000-70,000 tonne coal or grain cargoes, rose by $32 to $18,119.

The supramax index fell 21 points to its lowest level since end-February 2021 at 1,728.

(Reuters – Reporting by Brijesh Patel; Editing by Vinay Dwivedi)

Source: www.marinelink.com

Image: www.pixabay.com

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The development by KSOE, the shipbuilding arm of Hyundai Heavy Industries Group, one of the world’s biggest shipbuilders, comes amid growing global interest in rolling out hydrogen as a cleaner fuel alternative. Vessel makers worldwide are looking at ways to transport the gas, currently supplied via pipelines and trucks.

A major challenge is to keep the hydrogen chilled at minus 253 degrees Celsius – only 20 degrees above absolute zero, the coldest possible temperature – so it stays in liquid form, while avoiding the risk that parts of a vessel could crack.

“We already have developed a concept ship with a capacity of 20,000 cubic meters,” said Yoo Byeong-yong, vice president with Korea Shipbuilding & Offshore Engineering’s (KSOE) Energy System Research Institute.

Though small at 20,000 cubic meters compared with the largest liquefied natural gas (LNG) supertankers – which can carry up to 266,000 cubic meters – the hydrogen tankers will grow in size as the technology develops.

Around 20 ships with a 20,000 cubic meters capacity are expected to be built in the decade starting in 2030, and if demand grows that could increase to 200 larger vessels of 170,000 cubic meters after 2040, according to industry estimates in South Korea, one of the world’s shipbuilding powerhouses.

“We foresee the global hydrogen market will grow rapidly after 2030 and demand for ships will grow accordingly,” said Yoo, speaking in a video interview from Las Vegas during the CES tech trade show. KSOE expects hydrogen tankers to be commercialized between 2025 and 2027.

KSOE’s Yoo said in the early stages ships transporting hydrogen would be fueled by LNG, but the vessels could be powered by hydrogen itself once the hydrogen market matured.

Shipping, which transports about 90% of world trade and accounts for nearly 3% of the world’s CO2 emissions, is under growing pressure from environmentalists to deliver more concrete action.

Industry regulators say first net-zero ships must enter the global fleet by 2030, and ships powered by green hydrogen could help meet the target.

Source: www.marinelink.com

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