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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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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Incorporating propane can help ports support economic growth while safeguarding our environment.

The loading and unloading of container ships at marine terminals requires a variety of cargo handling equipment, historically powered by diesel and gasoline. As the country seeks to reduce emissions and fight climate change, stevedores need reliable, efficient equipment to help them handle growing cargo volumes, as well as an energy source that doesn’t sacrifice environmental impact in the process.

While battery-powered EV equipment is answer for some applications, there are significant challenges to be overcome and it is important to consider other “Near Zero” emissions options with ultra-low NOx, including propane equipment.

Propane offers ultra-low NOx “Near-Zero” emissions for port applications
Recently passed legislation outlining funding availability for ports infrastructure will help ports across the country make the switch to “Near Zero” emissions technologies and enable our ports to be better stewards of the environment today and into the future.

While many port authorities are making the jump to electrification thinking this equipment is the best solution for reducing emissions, they are likely unaware that propane is cleaner, with a reduced carbon footprint than electricity when lifecycle emissions and nominal electricity production emissions are taken into consideration. Using propane produces 43% fewer greenhouse gas emissions than using an equivalent amount of electricity generated from the U.S. grid, according to data from the Propane Education & Research Council (PERC).

Switching to cleaner energy directly impacts the millions of people living near ports. Families can be exposed to air pollution output from diesel engines at ports and be at risk of developing asthma, heart disease, and other serious health problems. Equipment, vehicles, and marine vessels that burn diesel fuel are the primary source of combustion-related emissions at port facilities, according to the Environmental Protection Agency (EPA). Existing propane applications in ports include forklifts and small and medium-duty vehicles that are meeting today’s emissions regulations and sustainability goals.

Near-zero emission propane port tractors produce fewer emissions and cost approximately $200,000 less than electric models, meaning ports can afford to replace more of their diesel-powered fleet and achieve carbon reduction goals faster. Propane powered cargo handling equipment in development includes reach stackers, empty container handlers, and rubber-tired gantry cranes.

Plus, propane can support employees needing to operate equipment both indoors and out, whereas gasoline and diesel equipment aren’t fit for indoor use. Propane forklifts, for example, can safely operate in properly ventilated indoor spaces, thanks to the equipment’s low-emissions profile. Well-maintained propane forklifts meet or exceed nationwide indoor air quality standards, whereas gasoline and diesel can produce higher amounts of carbon monoxide and other harmful emissions.

The Infrastructure Investment and Jobs Act
A new $1.2 trillion law to improve America’s infrastructure creates an unprecedented opportunity for more fleets to take advantage of low emission energy sources, like propane. Propane is recognized in the Act as a clean alternative energy source and its inclusion is a major win for both ports and near-port communities, allowing more ports and dockworkers the opportunity to replace the use of diesel and gasoline on-site.

With funding available as of January 2022, the Infrastructure Investment and Jobs Act provides over $9 billion in funding for refueling infrastructure and clean vehicles and equipment—including $5 billion earmarked for ports. Propane-powered vehicles and refueling infrastructure are eligible for the following funding opportunities under the new law:

• $2.5 billion in grants for emissions reduction at port facilities
• $2.5 billion in grants for charging and refueling infrastructure

Ports interested in taking advantage of this funding can make the switch to propane knowing that it’s a go-to energy solution for their operation. Propane reliably powers on- and off-road vehicles including forklifts, light- and medium-duty vehicles, port and terminal tractors, shuttles, and small marine vessels.

Source: www.marinelink.com

Image: www.pexels.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

The post Why Should Shipping Come Under the EU’s Carbon Trading System? appeared first on Cargo News Today.

“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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I have previously analyzed the consequences of congestion for cargo ships in the logistics sector. Not only have they significantly reduced the speed of delivery of goods, but they have also increased the cost of services, adversely affecting both suppliers of goods and consumers. In order to continue to work efficiently and reduce waiting times, companies are trying to find other ways to deliver cargo from point A to point B. One of them is by air freight. The strong desire of companies to switch suddenly from sea to air transport has led to an unexpected increase in demand for air freight, which is difficult to meet with current capacity. For example, in 2021, a total of 183,362 tonnes of air cargo were handled at Budapest Ferenc Liszt International Airport, which is 36% more than in 2020.

Does all the blame lie in ship congestion?

It would be foolish to think that the situation was exacerbated only by congestion in cargo ports. Other factors have also made an impact. For example, changing consumer habits. At the beginning of the pandemic, when countries closed their stores for several months to fight the virus, people began to shop online, which led to a sharp increase in demand for goods. Air transport is clearly the fastest way to transport goods between intercontinental routes. Those companies that were initially willing to pay more, knowing that the product will be delivered on time, immediately increased the demand for air transport. Others, on the other hand, preferred maritime transport to save money, but rushed to find available carriers due to congestion.

An increase in demand raises the price

As in any other industry, including logistics, when the interest of service recipients exceeds supply, the price of the service increases with the increase in demand. Until now, this has been the case in maritime freight transport, but it is now slowly beginning to affect the aviation sector as well. It has been observed that air freight rates have remained well above the 2019 price level in recent months due to high demand. WorldACD data show that global rates reached $ 4.57 / kg in the first week of December, compared to $ 4.26 / kg in 2019. (https://cargoworldtoday.com/air-cargo-capacity-climbs-but-rates-remain-high/) Data from the Baltic Exchange Airfreight Index (BAI) show that prices from Hong Kong to North America were at a record high in the same week – 14 , 30 USD per kg compared to the previous week, when the price per kg was only 12.41 USD. IATA data also show that it was three times more expensive to transport three kilograms of goods by cargo plane, for example, in September 2021 than by sea. However, compared to the time before the pandemic, this price was even 12.5 times higher.

It may seem that the increased transport costs make some retailers think twice about switching from sea to air freight, but this is not the case. Many are willing to accept a higher price. Why is it? Because, undeniably, in the intercontinental freight market, air is the fastest way to deliver goods from point A to point B.

Relieving tension by increasing the amount of cargo planes

One of the most effective ways to prevent air freight from entering a crisis with even higher prices is to balance supply with demand. How to do it? Passenger airlines must carefully consider the idea of ​​offering freight services as well. Qatar Airways and the Emirates Group, known to the general public as passenger airlines, have already taken this step in early 2020. Thanks to this decision, both companies earned more than half of their 2020 revenue from air freight. At the beginning of the pandemic, many companies may have moved in the direction of freight, desperately trying to avoid bankruptcy, but this could be a strategic and growth-enhancing decision that would help the company continue to make money in the face of repeated passenger restrictions.

Author: Roland Peterson, logistics expert

Image: www.pexels.com

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Produced volumes requiring transport key shuttle tanker markets Brazil, Canada, Norway, the U.K. and Russia are expected to rise to 3.3 billion barrels per year before the end of the decade, jumping 35% from 2.5 billion in 2021, according to a recent report from the Norwegian analyst group.

Apart from minor dips in total utilization across these countries in 2018 and 2021, shuttle tanker activity has increased year-on-year since 2013 and is set to grow further by a compound annual growth rate (CAGR) of 3.5% between 2021 and 2030.

“There is a need for a new influx of shuttle tankers to meet the increasing demand and replace some of the ageing capacity that will be taken out of service,” said Oddmund Føre, senior vice president of energy service research with Rystad Energy. “Crude oil extraction will continue for many years to come and, given the robust economics and competitiveness of the offshore industry, new investments in offshore production are likely to continue building, ensuring a bright future lies ahead for the shuttle tanker industry.”

(Image: Rystad Energy)

Shuttle tankers, typically used in locations where subsea pipelines are unviable, are crucial for moving liquids from wells to refineries and terminals. The North Sea was once the pioneer region and largest market for shuttle tankers due to its harsh environmental conditions and fragmented field structure, but the concept has been exported to other offshore areas with great success. Brazil is now the largest market for shuttle tankers due to its ultra-deep-water oilfields and will account for more than half the shuttle market demand from 2026.

The surge in offshore production in Brazil has seen a significant rise in the utilization of shuttle tankers, with activity soaring by 55% from 695 million barrels for 2013 to 1.07 billion in 2021, according to Rystad, which forecasts a further 72% increase by the end of 2030 when total volumes handled by shuttle tankers in the country will hit 1.84 billion barrels.

Despite being surpassed by Brazil, Norway and the U.K. remain significant players in the shuttle tanker market. Norwegian shuttle tankers handled 763 million barrels in 2021, while counterparts in the U.K. handled 312 million. In comparison, Canadian shuttle tankers transported just 96 million barrels, and Russian shuttle tankers moved 213 million. However, the Russian market is set to experience steady declines over the next few years, falling by almost half to 122 million barrels by 2030.

Tracking the vessels
With nearly 100 vessels now in operation and a handful on order, the shuttle tanker market remains one of the smallest and most surveyable shipping market segments. Despite its small size, there are significant variations and differences across regional shuttle tanker markets. The North Sea and the Norwegian side of the Barents Sea have around 25 shuttle tankers in operation and comprise 25% of the global market. Although the North Sea market provides more diversification than other markets, Equinor and state-owned Petoro are responsible for over 35% of the volumes shuttled off oilfields.

The high standards and operational knowledge in the North Sea have helped other regions adopt the same infrastructure. Brazil is now the largest market with 40 vessels and three times the production of the North Sea. Unlike in the North Sea, however, Brazilian field operators have developed their form of regulation without authorities playing an active role. Knutsen NYK Offshore Tankers (KNOT) and Altera Infrastructure are two of the main shuttle tanker owners operating in Brazil with decades of experience operating vessels in the North Sea, helping create continuity and efficient operations in Brazil’s deep waters. The Brazilian market is less diversified, with Petrobras handling 70% of offshore shuttle tanker production with vessels that are either chartered by the Brazilian state giant itself or international operators. While international companies must leave Brazil every 90th day to meet local content regulations, Petrobras can operate more efficiently with significantly more trips per vessel than its in
ternational competitors.

In Russia, the shuttle tanker market is the same size as the North Sea but is divided into the Arctic Russia and Far East Russia markets. The former is focused on shuttling from Arctic oilfields to Murmansk, with the latter shuttling crude and condensate from the Sakhalin fields to the Asian market. Due to the relatively light-weight class of Russian shuttle tankers and the fact that they are ice-classed, there tends to be a higher vessel intensity per barrel produced in the region than in other markets.

Looking ahead
Rystad expects the North Sea will be a crucial driver for increased activity as a new investment spree follows the Norwegian government’s tax regime, introduced in mid-2020, which is aimed at incentivizing sanctioning activity to be filed by the end of 2022. Brazil has also been vocal about its ambitions to become more energy independent, with many wells to be drilled by 2030. In addition, Rystad noted a growing number of international players are entering the stage in Brazil with their stake in crude oil production. This trend alone will drive shuttle tanker demand upward as the vessel intensity per barrel produced is higher than local leader Petrobras.

Source: www.marinelink.com

Image: www.pexels.com

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After taking delivery of several ships last year, MSC or Mediterranean Shipping Company has capacity to move the equivalent of 4,284 million twenty-foot containers, Alphaliner said. That compares with Maersk’s 4,282 million.

Both companies, which according to Alphaliner hold markets share of around 17%, said size was not the objective.

Asked for comment, Maersk, which has been the biggest shipper for decades, referred to comments made by CEO Soren Skou in May.

“I would like to be CEO of the world’s largest shipping and logistics company, and I believe I have a good chance of holding on to that for some time to come,” Skou said.

“Our goal isn’t to be number 1. Our goal is to do a good job for our customers, delivering strong returns and not least be a decent company for all other stakeholders doing business with Maersk.”

Bottlenecks caused by a surge in demand for consumer goods as the world emerges from the initial pandemic impact has driven container shipping rates to record highs.

MSC, privately owned by the Aponte family, said in an emailed statement it emerged at the world’s biggest container carrier after investing in new ultra-large vessels “to meet the acceleration of global trade and specific client demand for our services”.

“At MSC, we never set a specific target to be the biggest. Growth, profitability and supporting customers are what have driven us,” said MSC Chief Executive Soren Toft, who joined the company from Maersk in late-2020.

Since 2016, Maersk has sold its oil and gas business and bought such as warehouses to transform itself into an integrated logistics company rather than a conglomerate.

It owns the majority of its container shipping capacity, while MSC has chartered some two-thirds of its capacity, Alphaliner said.

Alphaliner says CMA CGM and Cosco are the third and fourth-biggest container shipping companies with 12.6% and 11.6% market share, respectively.

Source: www.marinelink.com

Image: www.pexels.com

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