air pollution

Decarbonisation and greener fuel an important issue

Decarbonisation is now the second most important issue for the shipping industry, according to a report released today by the Global Maritime Forum.

The Global Maritime Issues Monitor 2019, which surveyed respondents from 46 countries, ranked only the “global economic crisis” ahead of “decarbonisation of shipping” as the issue to have the greatest impact on the industry over the next decade.

“And the pending 2020 IMO low-sulphur regulation appears to be on senior leaders’ radar,” said Global Maritime Forum chair Peter Stokes. “They see ‘new environmental regulation’ as most likely to occur in the next ten years, and deem that issue to have the third-highest impact.

“Worryingly, they perceive the maritime industry as relatively unprepared for the issue, close to the deadline for the new fuel requirements,” he added.

The report says the availability of zero-carbon vessels and fuels is seen as a major barrier to shipping’s decarbonisation.

Johannah Christensen, the forum’s head of projects, added: “Commercially viable zero-emission vessels powered by zero-emission fuels must start entering the global fleet by 2030, and their numbers need to be radically scaled through the 2030s and 2040s if international shipping is to meet the [IMO] target of reducing greenhouse gas emissions by at least 50% by 2050.”

Yesterday, Maersk, which has set the bar higher than the IMO with its goal of eliminating its carbon emissions by 2050, announced it would develop the use of ‘LEO’ fuel, a blend of lignin and ethanol.

Maersk has formed a ‘LEO coalition’ with Norwegian ro-ro carrier Wallenius Wilhelmsen, Copenhagen University and shippers BMW, H&M, Levi Strauss and Marks & Spencer.

Søren Toft, Maersk’s chief operating officer, said: “Shipping requires bespoke low-carbon fuel solutions which can make the leap from the laboratory to the global shipping fleet. Initiatives such as the LEO Coalition are an important catalyst in this process.”

Meanwhile, the IMO 2020 sulphur fuel cap and subsequent decarbonisation push could be a “blessing in disguise” for container carriers, according to Parash Jain, global head of shipping and ports equity research at HSBC.

He said the industry was unlikely to experience the kind of speculative ship ordering seen during previous supply and demand cycles, since decarbonisation would “ensure older assets become obsolete much faster.”

“In my view, there will be restraint from carriers and secondhand vessels will become more liquid. Those who need supply will tap into that market rather than make a call on what kind of new ship they should order for the next 25 years,” he said at the TPM Asia conference in Shenzhen this month.

McKinsey partner Steve Saxon agreed, noting the industry’s decarbonisation targets were “incredibly aggressive.”

“So shipping lines will need to find a way to decarbonise and the dominate technology is not out there yet. In the meantime, we’re going to have a difficult transition period, and, during the late 2020s or so, I would agree we may well see new ordering drop back quite substantially,” said Mr Saxon.

Source: The Loadstar

MSC

MSC tipped to overtake Maersk as the worlds biggest box carrier

MSC is on course to overtake alliance partner Maersk as the biggest ocean carrier by capacity within the next two years.

A new order for five 23,000 teu ULCVs from the South Korean Daewoo yard will take the Geneva-based carrier’s orderbook to 16 vessels, for a massive 305,352 teu, according to Alphaliner data.

A disclosure from Daewoo this week valued the order at $152m per ship, with delivery of the five by August 2021.

This will propel MSC’s fleet, including current chartered tonnage, to just under 4m teu, a capacity level Maersk has said it wants to stick at.

During the second-quarter earnings call in August, Maersk chief executive Soren Skou confirmed this, adding: “We want to remain disciplined on capacity and stick to our guidance of around 4m teu of deployed capacity because it helps us drive utilisation up and unit costs down.”

Currently the Danish carrier’s fleet stands at some 4.2m teu, however Mr Skou attributed the above-guidance figure to be due to a number of ships dry-docking for scrubber installation, obliging a higher than normal level of chartered-in tonnage.

Unlike its 2M partner, Maersk has for some time taken a bearish view on ordering, and currently has an orderbook of just 45,000 teu. It has long since ceased to be the ocean carrier operating the biggest  box ship; MSC is the current leader with its 23,765 teu scrubber-fitted MSC Gulsun, in service between Asia and North Europe.

With MSC threatening to end its long reign as the industry’s biggest carrier, Maersk’s board could be put under pressure to reconsider its capacity strategy, which in turn could lead to it identifying new acquisition targets in order to support its growth.

In contrast, MSC’s family-influenced strategy to only grow its liner business organically means it needs to be more aggressive in its markets to underpin the injection of additional capacity.

Teaming up with Maersk in the 2M alliance in January 2015 has seen stronger growth organically for MSC than its VSA partner has managed via acquisition, and there are some concerns emerging that it is lagging.

Source: The Loadstar

Ghana Outlook

Supreme Charity Work

We are proud sponsors of Ghana Outlook, a charity assisting real communities to enhance their future through education and self help programmes. We have recently supported them in getting some donated maths textbooks to Ghana free of charge.

The books will be going to a school in the community of Abordahi, near Ho in the Volta Region of Ghana. It is a very deprived community where GO has spent time and effort in raising the aspiration of the community and its children. They have built three schools that cover the full age range of the children plus a teacher’s accommodation block, each with its own latrine and safe water supply.

The maths textbooks, which are mainly new ones donated by a local school will be very well received by the teachers at Abordahi. They have very little resources to work with and the books will be a valuable resource for the teachers.

If there is a charity that you think would benefit from our help please contact us we are always happy to help…

HMRC

HMRC have published an article to help businesses to get ready for Brexit

After Brexit there will be changes that affect businesses and hauliers across the UK.

Make sure you are prepared for them, particularly if your business:

Imports goods
Exports goods
Receives personal data
Exports services

The Department for Business is holding a series of free face-to-face Business Readiness Events across the UK, to help businesses find out what actions they need to take to prepare for Brexit. The events include support and advice stands, with in-depth sessions led by subject matter experts from across government, including Defra, HMRC, Home Office and DCMS.

You will find out more about a range of issues, including:

the importing and exporting of goods and services
transferring data
employing EU citizens

To sign up to an event please go here:

https://registration.livegroup.co.uk/brexitbusinessreadin…/…

Please contact us if we can help – Brexit is happening on the 31st October so preparation is key.