lng gas

The impact of shipping on the climate cannot be solved by gas

Europe has little to gain from trying to decarbonise the unwieldy shipping sector with liquefied natural gas (LNG), according to a new study that looks into how the EU could cut emissions over the next three decades.

Research by consultants UMAS revealed on Monday (25 June) that pouring billions of dollars into LNG-refuelling capacity for maritime and inland shipping would only yield emission reductions ranging from 6% to 10%.

The study highlighted how half a billion dollars has already been used by the EU to beef up infrastructure and that no notable greenhouse gas emissions (GHGs) have been logged as a result.

Shipping accounted for about 3% of global emissions in 2012 and, on its current trajectory, will contribute between 6% and 14% by 2050 due to increased growth. Eighty percent of global trade is already transported by water.

EU commitments to the UN’s Paris Agreement mean the bloc is targeting 40% GHG reductions by 2030 and a net-zero emissions strategy for mid-century is likely to be released by the end of the year.

Brussels wants every part of the economy to do its fair share of decarbonising, meaning shipping will have to play its part and a recent agreement by the International Maritime Organisation (IMO) to target “at least 50%” cuts compared to 2008 by 2050 was a step towards that aim.

But the IMO commitment is non-binding and a final plan is not expected until 2023, causing uncertainty about where investment should be directed. If the IMO revises its ambition up to a net-zero strategy, LNG assets could end up stranded, according to the study.

NGO group Transport & Environment, which commissioned the report, said the EU should “instead back future-proof technologies that would deliver the much greater emissions reductions that will be needed, including port-side charging and liquid hydrogen infrastructure”.

UMAS’s modelling showed that under a ‘high gas’ scenario, where LNG prices are low and alternative fuels like hydrogen are unavailable, the EU would be hit with a $22bn bill up to 2050 and GHG reductions would only fall within a 6%-10% bracket.

While increased LNG uptake could help the sector hit the IMO’s 2020 cap on sulphur emissions, according to UMAS researcher Domagoj Baresic, the fuel’s use in “shipping’s transition to a low carbon future can only be transient”.

Other fuel options include biofuels, electrification and hydrogen. Battery-powered ocean-going freighters are currently not feasible due to cost and component weight, so smaller vessels are the limit, while biofuels face their own set of cost of standards-based challenges.

EU legislation dating from 2014 on alternative fuels lays out a number of options across various sectors but its insistence on LNG refuelling and bunkering facilities has now been called into question by T&E. The group urged the Commission to revise the “faulty” directive.

Although LNG is easy to transport, one of its main downsides is its high methane content, whose climate-affecting potential is significantly greater than that of carbon dioxide.

The study explained that the phenomenon of ‘methane slipping’, when unburnt LNG escapes through a ship’s exhaust into the atmosphere, could actually help wipe out any emission reduction gains over diesel depending on the scenario.

The issue of fugitive methane is a serious consideration for energy companies and pipeline owners, as it entails sometimes significant losses in both deliverable capacity and income.

Last week, a landmark study by the Environmental Defense Fund (EDF) claimed that methane leakage in the United States is 60% higher than previously estimated by the country’s Environmental Protection Agency (EPA).

EDF chief scientist Steve Hamburg warned that if more than 2.7% of gas production leaks from the US network then the GHG impact is more significant than burning coal for power. The study drew on a decade of work to estimate that leakages totalled 2.3%.

Oil majors like Exxon and BP already intend to address the problem by rolling out advanced technology like infrared detection equipment. The International Energy Agency estimates that between 40% and 50% of current methane emissions could be cut at no net cost.

To view the full report please go here

Source: Euractiv.com

international shipping centre

Shanghai plan to become an International Shipping Centre by 2020

Shanghai are working towards becoming an International Shipping Centre by 2020. To achieve the target and raise the city’s core competitiveness, the local government has drafted a three-year plan.

One goal of the three-year plan is to further consolidate Shanghai’s status as an international shipping hub. In the Chinese mainland, the Port of Shanghai boasts the largest number of container shipping routes, the highest frequency of route operations and the widest network coverage. In 2017, cargo throughput rose 6.9 percent from 2016 to 751 million tons at the Port of Shanghai, while container throughput increased 8.3 percent year-on-year to 40.23 million TEUs, ranking first in the world for the eighth consecutive year.

At the same time, leveraging on the golden waterway along the Yangtze River, the Port of Shanghai is developing its waterway-waterway transport business and proceeding with its renovation project on high-grade inland waterways at a steady pace. Container lines connecting all ports along the Yangtze River are operated on a regular basis and breakthroughs have been made in the two-way navigation for large vessels along the deep-water passage at the mouth of the Yangtze River.

In 2017, waterway-waterway transport accounted for 46.7 percent of total container transfer. Among all, 10.58 million TEUs were handled along the Yangtze River, accounting for 56.4 percent of the total waterway-waterway transport and 26.3 percent of total throughput at the Port of Shanghai.

Another goal of the plan is to generally establish Shanghai’s status as an Asian gateway aviation hub. Shanghai has successfully built a “one city, two airports” system, the first of its kind in the country, whose scale and layout are compatible with their international counterparts.

The city’s two international airports, namely Pudong and Hongqiao, have a total of four terminals, six runways, 1.47 million square meters’ cargo area and an airport bonded zone, with a total designed capacity for 100 million passengers and 5.2 million tons of cargoes. Over 100 airlines have launched services to the city’s airports, which are now connected to 297 cities worldwide.

Transit centers of the three largest logistics companies are all under operation in the international cargo mail and courier service zones at the Pudong airport. In 2017, passenger throughput at Shanghai airports reached 112 million, ranking fourth around the globe. Cargo mail throughput at Pudong airport maintained its No.3 global ranking for the 10th consecutive year. Throughput of international passengers and cargo mail at Pudong airport accounted for one-third and half of the country’s total, respectively, making it the No.1 gateway in the Chinese mainland.

The third aim is to continuously improve Shanghai’s function of modern shipping services. A cluster of shipping service areas such as Waigaoqiao, Yangshan-Lingang, North Bund, Wusongkou, Hongqiao, and Pudong Airport, among which the shipping industry in Hongkou district ranks first in terms of its contribution to the district’s overall financial income, accounting for 19 percent of Hongkou’s public financial income.

A group of international and national shipping functional organizations have gathered in Shanghai. The world’s top 20 liner companies, the top four cruise companies, nine global shipping classification societies, and major State-owned and privately owned shipping companies have all set up headquarters or branches in Shanghai.

Shanghai Shipping Exchange has become the national container liner freight registration center and the China Ship Information Center. The container freight index has become a benchmark for the global container shipping market. The capability of maritime legal services has been continuously improved. The number of maritime arbitration cases in Shanghai accounts for 90 percent of the country’s total number of cases. Shanghai Maritime Court is striving to build an international maritime judicial center.

Source: Hellenic Shipping News / Global Times

China flag

China to ban the recycling of international ships

China plans to stop allowing the recycling of international ships at its yards as of the beginning of 2019.

The decision comes on the back of China’s efforts to crack down on polluter and waste producing industries in the country, which have seen many yards denied their ship recycling licenses.

The Chinese-flagged ships will be allowed to continue to be dismantled at Chinese yards, however, the Government of China will no longer provide subsidies for the branch, as decided last year. Due to such a turn in policy, local owners are likely to look elsewhere to retire their ships, including India.

“In view of this, owners will have to succumb to the fact that, with the exception of Turkey, the H.K Convention approved recycling yards in Alang will have to be taken more seriously following the incredible improvements that have been made at these yards over many years and the fact that these yards now can only offer owners the only alternative at this current time for green recycling,” Clarksons Platou Shipbroking said.

Two years ago, industry leader Maersk committed to investing in Alang yards and boosting their operational standards to comply with the company’s requirements.

Chief Executive Officer of  A.P. Møller – Mærsk A/S, Søren Skou, said recently that some yards in Alang, India, are performing at the same level or better than yards in China and Turkey, “which used to be the only options for economically viable and responsible ship recycling. “

Explaining its approach, Maersk said that the company helps the yards to upgrade their practices while contractually requiring full implementation of its standards controlled by on-site supervision throughout the process as well as quarterly audits by third parties.

Even though the situation is far from perfect, especially when it comes to health hazards at the shipbreaking yards in Alang, Maersk believes that helping the yards to improve their standards is an opportunity to change the industry for the better.

However, for a more sustainable progress to be made more shipowners need to become involved.

From a total of 206 ships, which were broken in the first quarter of 2018, 152 ships were sold to the beaches of South Asia for breaking, according to NGO Shipbreaking Platform.

Despite a considerable improvement made by some shipbreakers, a great majority of south Asian yards are notorious for their poor environmental and healthy and safety practices.

It is quite common for workers to suffer serious injuries or even get killed due to exposure to various types of risks ranging from falling objects to intoxication.

So far this year, 10 workers have lost their lives and 2 workers have been severely injured when breaking ships in Chittagong, Bangladesh. Another two workers were reported dead after an accident at a shipbreaking yard in Alang, India, data from NGO Shipbreaking Platform shows.

Source: World Maritime News

air pollution

Ports and Shipping need to curb air pollution

RealWire, an online media presence, has this week issued a press release related to using proven existing technology to curb UK Shipping and Port Industry air pollution.

According to RealWire, providing renewable electricity to ships whilst in port in the UK could reduce the equivalent of 1.2 million diesel cars worth of nitrogen oxides pollution and bring £402 million per year of health and environmental benefits.

By plugging into the power grid with 100 per cent renewable electricity and turning off their diesel engines, ships at berth in the UK would reduce emissions equivalent to 84,000 to 166,000 diesel buses – or 1.2 million diesel cars representative of the current UK fleet.

The pressure is mounting for the UK to align with EU air pollution emission targets, and ships at berth need to cut their fuel consumption and port authorities and terminal operators need to integrate shore power capabilities in a simpler and more efficient way.

Schneider Electric supports decarbonisation through its business efforts, this has led to a sponsored study into the emissions from idling ships at berth in UK ports that affects the quality of the air we breathe. Often neglected as source of air pollution, ships spewing toxic emissions near to coastal towns and cities puts people and the environment at risk.

While road transport pollution garners public prominence because it is so visible in our everyday lives, we should not underestimate the impact that portside emissions have on the environment and the cost of keeping society healthy. Offshore supply vessels, fishing boats, roll-on-roll-off, bulk carriers and passenger ferries contribute the most to the emissions from auxiliary engines at berth. The emissions from all vessels’ auxiliary engines at berth in UK ports in 2016 is estimated to be equivalent to nearly 2.6 per cent of the total transport sector emissions of nitrogen oxides in the UK. The best estimates of these emissions from auxiliary engines are 830,000 tonnes of carbon dioxide, 11,000 tonnes of nitrogen oxides (NOx), 270 tonnes in particulate matter and 520 tonnes of sulphur dioxide.

There were approximately 110,000 buses and coaches in the UK fleet in 2016 and the study has found that ships’ auxiliary engines at berth are equivalent to the nitrogen oxides and particulate matter emissions equivalent to 84,000 to 166,000 buses and coaches representative of those currently in the UK fleet, respectively.

Dirty air has been linked to asthma symptoms, heart disease and even lung cancer. It has been linked to dementia and is also known to increase the risk of children growing up with smaller lungs. Meanwhile, 59 per cent of the UK pollution – 40 million people – live in areas where diesel pollution threatens their health, according to Friends of the Earth. Global deaths linked to ambient air pollution are estimated to have increased by just under 20 per cent since 1990, while 95 per cent of the world’s population is now breathing toxic air, according to a recent study by the 

Health Effects Institute while the Royal College of Physicians has found that air pollution in the UK contributes to 40,000 deaths per year. The UK could bypass a major health hazard as well as avoid health and environmental impacts of up to £402 million per year through the elimination of nitrogen oxides, sulphur dioxide and particulates – using the introduction of shore connections at UK ports. If all the emissions from the auxiliary engines at berth from these vessels were reduced to zero by replacement with power from 100 per cent renewable electricity sources, the value in reducing emissions would be between £136 million and £483 million per year.

“The UK is one of the last global regions to introduce shore connections at its ports and it will take industry collaboration and innovation to bring forward the introduction of portside electricity in a quick and sustainable manner. There is now a global standard for shore connections and it is up to our ports now to catch up with the global norm and demonstrate that we truly believe in a cleaner, healthier future,” says Peter Selway, Marine Segment Marketing Manager at Schneider Electric.

While health conscious countries like the UK are employing proactive policies to help curb the dangerous impacts of air pollution and the ongoing efforts to alleviate roadside toxic fumes is indeed noble, the long-term impact of the shipping industry should not be ignored.

Globally, the partnership between the Port of Seattle and the shipping industry has seen annual CO2 emissions being cut by up to 29 per cent annually in the port, with financial savings of up to 26 per cent per port call. Meanwhile, shore connection capabilities have been mandatory for all ships at berth in California since 2010 and by 2020, at least 80 per cent of berths have to be equipped with shore connection technology.

The shipping industry itself has been receptive to plugging in at port and Schneider Electric’s technology has assisted La Meridionale to achieve a 95 per cent reduction in its berthside emissions. Danish ferry group Scandlines, meanwhile, has seen an overall energy saving of between 10-14 per cent in its equipped vessels.

“It is time now to adopt a new way of thinking and embrace, as an industry, the benefits that shore connections and portside electricity can bring quickly and cost-effectively. We are fortunate enough to have the technology at hand and we must put it to good use,” Selway concludes.

global port

Global container port demand rising

Drewry’s latest five-year global container port demand forecast is 4.3% per annum, up from last year.

The maritime consultancy made the announcement in its summary of the key trends and developments in the global container port and terminal industry.

Projected port capacity expansion is 2.7% per annum, so average utilisation levels will rise, said Drewry.

Neil Davidson, senior analyst ports and terminals at Drewry, pointed out, however, that there is a strong focus on optimisation of existing facilities as opposed to building new ones and that terminal operators are focusing on cost control and efficiency to maintain project margins.

Drewry’s latest assessment of port throughput indices showed that the global index fell in September 2017 but was 10 points up on September 2016 and 12 points up on 2015.

Mr Davidson said that the growth rate in 2017 showed a sustained upward trend.

North America and Latin America showed the highest annual increases, 12.6 and 11.1 respectively, while Europe had the lowest increase at 4.4%.

The top five global terminal operators were calculated as being PSA International, Hutchinson Ports, DP World, APM Terminals and China Cosco Shipping.

According to BIMCO, the worlds largest international shipping association, container shipping has shown strong growth forecasts supported by equal demand so far this year, 

Source: Port Strategy / Port Technology

emissions

Shipping emissions to be halved by 2050

Following on from our earlier article concerning shipping emissions, over 170 countries reached agreement on Friday (13 April) to reduce CO2 emissions from shipping by “at least” 50% on 2008 levels by 2050, ending years of slow progress.

Despite opposition from nations including Brazil, Saudi Arabia and the US, the states came to a final agreement on Friday, signalling to industry that a switch away from fossil fuels is fast approaching.

Ultimately the goal is for shipping’s greenhouse gas emission to be reduced to zero by the middle of the century, with most newly built ships running without fossil fuels by the 2030s.

Kitack Lim, Secretary-General of the International Maritime Organisation (IMO), said the adoption of the initial strategy “would allow future IMO work on climate change to be rooted in a solid basis”.

The compromise plan to halve shipping emissions by 2050 leaves the door open to deeper cuts in the future, placing a strong emphasis on scaling up action to 100% by mid-century.

“Meeting this target means that in the 2030s most newly built ocean-going vessels will run on zero carbon renewable fuels. Ships, which transport over 80% of global trade, will become free from fossil fuels by then,” the European Climate Foundation said in a statement.

European Union countries, along with the Marshall Islands, the world’s second-biggest ship registry, had supported a goal of cutting emissions by 70 to 100% by 2050, compared with 2008 levels.

But opposition from some countries – including the United States, Saudi Arabia, Brazil and Panama – limited what could be achieved at the IMO session last week in London.

In Brussels, the European Commission hailed the deal as “a significant step forward” in the global effort to tackle climate change.

“The shipping sector must contribute its fair share to the goals of the Paris Agreement,” said EU Transport Commissioner Violeta Bulc and her colleague in charge of Energy and Climate Action, Miguel Arias Cañete.

While the EU had sought a higher level of ambition, the Commission said the deal was “a good starting point that will allow for further review and improvements over time”.

Shipping currently represents 2-3% of global CO2 emissions and could reach 10% by 2050 if no action is taken, the Commission reminded.

Dr Tristan Smith, an energy and shipping reader at the UCL Energy Institute, said that the 2050 target is likely to be tightened even further in the future.

“Even with the lowest level of ambition, the shipping industry will require rapid technological changes to produce zero-emission ships, moving from fossil fuels, to a combination of electricity (batteries), renewable fuels derived from hydrogen, and potentially bioenergy,” he said.

While he admitted that such changes are “massive” for a global industry with over 50,000 ships trading internationally, Smith said these reductions can be achieved “with the correct level of investment and better regulation”.

“What happens next is crucial,” said John Maggs, president of the Clean Shipping Coalition and senior policy advisor at Seas At Risk, an umbrella organisation of environmental NGOs.

“The IMO must move swiftly to introduce measures that will cut emissions deeply and quickly in the short-term. Without these the goals of the Paris agreement will remain out of reach,” he warned.

According to the text produced by the IMO working group submitted to member states, the initial strategy would not be legally binding for member states.

A final IMO plan is not expected until 2023.

Source: Edie.net / Independent 

One Manato

ONE’s very first container ship, ONE Manato has launched in Japan

The first magenta containership of the Japanese merged containership business, Ocean Network Express (ONE), has been launched at Imabari Shipbuilding in Japan.

The 14,000 TEU ship is named ONE Manato and will now undergo final touches before it gets delivered in December 2018, data from VesselsValue shows.

It is the first tailor-made boxship for the company, featuring the magenta livery and ONE logo on its hull, as the current fleet is comprised of a combination of container vessels that have been serving the Japanese trio respectively.

ONE, a joint venture between Japanese carriers K Line, MOL and NYK, worth USD 3 billion, launched its container shipping business on April 1.

The JV has been described as the world’s sixth-largest container shipping line with 230 vessels in its fleet totalling 1.44 million TEUs.

The network includes a total of 85 services, calling at over 200 ports in 100 countries.

Source: World Maritime News

emissions

Can shipping slash emissions?

Next week, countries are supposed to finalise a deal on limiting greenhouse gas (GHG) emissions from international shipping.

The International Maritime Organisation (IMO) environment meeting in London is expected to set a concrete target for shipping emissions in the coming decades. After the Paris Agreement and a deal on emissions from International Aviation, shipping is the last sector to contribute to global climate action.

A climate shipping deal has been long in the making. The IMO first adopted a resolution on GHG emissions in 1997.  However talks have stalled. There are several issues to overcome. There is concern that the impacts of any deal will fall disproportionately on flag states with many ships registered. Just six flag states – Panama, China, Liberia, the Marshall Islands, Singapore and Malta – account for over half of global shipping CO2 emissions.

However, there is concern that there is not yet enough data on ship emissions to consider setting a global target, or that shipping does not have the technical means to decarbonise.

the IMO adopted two technical measures on energy efficiency in 2011 and will require ships to report on their fuel consumption from 2019, no overall cap or reduction on shipping emissions has been set.

EU member states, including the UK, have supported a “70-100%” reduction on 2008 emissions by 2050, and a 90% reductions in the carbon intensity of shipping.

Japan has proposed that emissions be cut to 50% below 2008 levels by 2060, along with a 40% improvement in ships’ fuel efficiency by 2030. Japan also includes the idea of “amendments” to the goal, pending an IMO review of its achievability at a later date.

The International Chamber of Shipping (ICS) and other trade groups have proposed simply capping shipping emissions at 2008 levels, along with a 50% efficiency improvement by 2050. A group of low-ambition countries, including Argentina, Brazil, China and Turkey, argue against any absolute emissions cap, saying it could result in carbon leakage to other transport modes such as rail and air.

The shipping industry emitted 932 million tonnes of CO2 in 2015, according to a recent report from the International Council on Clean Transportation (ICCT). This corresponded to around 2.6% of global energy-related CO2 emissions, up from around 2.2% in 2012.

The IMO’s most recent study on international shipping emissions estimated they could grow between 50% and 250% by 2050, under current measures. As other sectors are set to decarbonise, this means shipping could grow to represent an ever larger portion of global emissions if not cap is set.

According to Green Peace, Ships carry over 80% of world trade, using vessels that operate on marine fuels which are cheaper but dirtier than road transport diesel fuels.

If the shipping sector were a country, it would rank sixth in the list of carbon emitters, just above Germany. The sector’s emissions have been growing three times faster than global emissions and if left unchecked emissions could grow by 50-250% by 2050.

Source: Carbon Brief / Green Peace 

karachi collision

An investigation has been launched into the collision of 2 container ships at Karachi port

The Karachi Port Trust (KPT) has ordered investigations into the collision between two container ships that took place at the Karachi port this week.

The incident occurred on Monday at a private terminal – South Asia Pakistan Terminals – affiliated to Karachi Port when a cargo ship during berthing slightly hit an anchored cargo ship.

The collision was captured on film by a dock worker, and video showed a Hapag-Lloyd ship, the Tolten, clipping a stationary ship while pulling into port in the Pakistan capital.

The Tolten was reportedly carrying  8,000-containers when it collided with the anchored cargo ship carrying 6,350 containers.

The footage showed containers bobbing around the harbour, while another sank. Over 20 containers fell into the sea after the collision causing loss of millions of rupees.

After the incident, transportation of containers was suspended for a few hours, before being restored at night.

A special operation to pull out the fallen containers from the sea was underway with the help of Pakistan Navy. Sources said that the operation would take at least two to three days to be completed.

According to a statement from Port Technology,  Hapag-Lloyd said they regretted the incident and would investigate how it happened.

“We have ascertained on-site that no-one was injured as a result of the incident, and that there has been absolutely no environmental pollution,” the statement said.

“There is yet to be a definitive explanation for this incident.”

To watch the video please go here

*Source: The News/ ABC /

arctic tanker

Shipping first for the Arctic

Following on from our article concerning Chinas expansion into the Arctic, this week there has been a first for shipping, as the first commercial tanker crosses the Arctic sea route in winter.  

Thawing polar ice in the region of Russia’s Northern Coastline means that this could be a viable option of increasing maritime trade to the region.

The vessel, named Eduard Toll, set out from South Korea in December for the Sabetta terminal in northern Russia, cutting through ice 1.8m thick. Last month, it completed the route, delivering a load of liquefied natural gas (LNG) to Montoir, France.

Bermuda-based firm Teekay is investing in six ships to serve the Yamal LNG project in northern Russia. A similarly designed vessel owned by Sovcomflot  made the same passage last August.  The specially-built ship completed the crossing in just six-and-a-half days setting a new record, according to the tanker’s Russian owners.

Arctic sea ice is steadily thinning and receding, with seasonal fluctuation, as global temperatures rise due to human activity. In January 2018, ice extent hit another record low for the month, according to the US National Snow and Ice Data Centre There has been an overall decline in Arctic sea ice over the past 30 years, linked by scientists to rising global temperatures. In 2017, according to the US National Snow and Ice Data Centre, the annual maximum extent of Arctic sea ice hit a record low for the third year in a row.

While polar conditions remain tough, the trend creates market opportunities. The northern sea route is shorter than alternatives through the Suez Canal for many trade links between Europe and Asia.

To view the video please go here

There are also some fantastic photos here

Source: The Guardian / BBC