container port

Guidelines Published to help reduce Container fire risk

A container shipping group, set up to increase safety levels in the industry following a string of sometimes fatal box ship fires, has produced its first set of guidelines to help operators prevent further incidents.

The Cargo Incident Notification System (CINS) today published Safety Considerations for Ship Operators Related to Risk-Based Stowage of Dangerous Goods on Containerships, specifically in response to “a number of serious fire incidents in recent years, often caused by deficiencies in cargo declaration and cargo packing”.

A copy of the publication can be downloaded here.

CINS chairman Uffe Ernst-Frederiksen said: “Cargo-related incidents which result in fire and explosions are rooted in cargo problems. Subsequent investigations demonstrate a wide range of deficiencies relating to cargo presented for shipment.

“These deficiencies include erroneous classification and declaration, packing, segregation and securing, not complying with IMDG or not following the CTU Code and packaging not complying with IMDG. This new best-practice guidance for DG stowage is intended to help improve fire safety in our industry,” he added.

The group stressed that the guidelines “complement – but do not replace – the existing measures already developed and implemented by ship operators for the carriage of properly declared dangerous goods. Likewise, they do not replace the SOLAS and IMDG requirements for stowage and segregation – in fact, they will enhance the requirements of these regulations”.

Investigations into deadly fires on board containerships in recent years have demonstrated that there is a class of cargo which, although not classed as dangerous goods, is thought to have increased the severity of some of the fires.

“Such commodities include, but are not limited to, charcoal, wood pellets, metal scrap, borings, shavings, turnings and seed cake,” advises the publication, which also includes stowage plan strategies to mitigate the risk of this type of cargo escalating a blaze into a severe fire.

CINS was established in in 2011 and its board comprises five of the world’s largest container shipping lines – Maersk, Hapag Lloyd, MSC, CMA CGM and Evergreen – together with three advisory board members, International Group of P&I Clubs, TT Club and Exis Technologies.

Its membership comprises over 85% of the world’s container slot capacity.

Source: The Loadstar

emissions

IMO have a lack of urgency to clear up shipping

The IMO has decided on a goal-setting approach by member states to decarbonise shipping, rather than progress the proposals put forward by some members for a mandatory speed reduction on vessels.

The strategy, decided last week in London, not to opt for speed restrictions has angered the members of the Clean Shipping Coalition (CSC) who blasted the IMO for its “bureaucracy” and “lack of urgency”.

An IMO working group agreed a draft text that will be put forward to the next Marine Environment Protection Committee (MEPC) meeting in March.

The text urges member states to develop and update a voluntary national action plan, which includes an improvement in the domestic and legislative implementation of existing regulations and a commitment to develop activities to further enhance the energy efficiency of ships, along with initiating the research and the uptake of alternative low- and zero-carbon fuels.

The IMO said that during the working group sessions “a number of proposals were discussed”, including an Energy Efficiency Ship Index (EEXI), mandatory power limitations on ships, measures to optimise speed on a voyage and speed limiters.

According to the UK Chamber of Shipping,“after lengthy discussions it was clear that there was no appetite for prescriptive speed reduction regulation”.

However, the UK Chamber, which is against the implementation of speed restrictions on shipping, arguing among other things that it would require more ships to be built with ‘old’ technology to take up the slack, said there was a “positive outcome” from the meeting.

Shipping policy director Anna Ziou said: “The progress made sets the right direction of travel and is a good foundation for the IMO’s work to put the strategy into action.”

Meanwhile, the CSC said measures were “urgently needed” if the IMO’s plan, agreed in April last year to half emissions from shipping by 2050 was to be met.

Bill Hemmings, shipping director of CSC member, transport & environment, said: “Time is running short but that’s not the feeling you get inside the room. The commitment last April to agree and implement in the short-term immediate emissions reduction measures has fallen foul of procedure, bureaucracy and delay spearheaded by countries that were never really on board.”

Mr Hemmings named the key member states as the US, Saudi Arabia and Brazil that “spearheaded” the movement against mandatory speed restrictions.

And John Maggs, senior policy advisor at fellow CSC member Seas at Risk, was equally damming of the IMO’s decision not to implement vessel speed restrictions at this time.

“Ships have deployed slow-steaming over the past decade in a way that has seen dramatic reductions in emissions. The world is not blind to this,” said Mr Maggs.

He said that the speeds of ships “must initially be capped” and “then progressively lowered” and suggested that the “commitment of many at the IMO to genuinely reduce ship emissions” was absent.

Nevertheless, several shipowners and operators The Loadstar has spoken to in recent weeks argued that they were already operating their vessels at the lowest speeds recommended by engine manufacturers, in order to conserve fuel and cut voyage costs to the bone.

Indeed, one executive from a major container carrier said: “Our masters are under strict instructions not to ‘put their foot down’ unless it is a matter of safety; if we miss a berth window so be it, we have a network that can adjust to that and it is generally cheaper than burning the extra fuel.”

Source: The Loadstar

Ghana Outlook

Supreme Charity Work – Maths Textbooks Arrive Safely

The maths textbooks which we sent to our charity Ghana Outlook have arrived safely!

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.

If you know a charity that could benefit from our help please contact us…

Ghana Outlook

 

solent 250

Supreme in the Solent 250

We are very proud to announce that we are again featured in the Solent 250 – and this year we are in the top 50!

The Solent 250 is the annual ranking compiled by The Business Magazine, and as a Solent 250 company we have been invited to Christmas Drinks and Canapes at the Harbour Hotel in Southampton, where guest speaker, Simon Hart from RSM will share his observations on the current global economic climate and his insights and predictions for 2020.

We would like to take this opportunity to thank all our wonderful members of staff and our loyal customers for your support this year, and look forward to an even higher position next year!

To view the full list please go here:

https://www.businessmag.co.uk/solent-250-2020/

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.

emissions

The UK should include aviation and shipping in net zero emission goal

The aviation and shipping sectors should formally be included in Britain’s target to cut its greenhouse gas emissions to net zero by 2050, the government’s climate advisers said on Tuesday.

Britain earlier this year became the first G7 country to set a net zero emission target although the shipping and aviation sectors were not explicitly included in the goal.

Combined the two sectors account for around 5% of global greenhouse emissions but if left unchecked this is expected to grow significantly, particularly as passenger flying numbers increase.

“Now is the time to bring the UK’s international aviation and shipping emissions formally within the UK’s net-zero target. These are real emissions, requiring a credible plan to manage them to net-zero by 2050,” Chris Stark, chief executive of the Committee on Climate Change (CCC), said in an email.

The CCC said, in a letter to Britain’s transport minister, Grant Shapps on Tuesday, emissions from aviation could be reduced by around a fifth by 2050 by using sustainable biofuels, improving fuel efficiency and limiting demand growth to at most 25% above current levels.

It said zero-carbon aviation is unlikely to be feasible by 2050 and that greenhouse gas removal methods would be needed to offset remaining emissions.

The CCC said the government said could establish a market for scalable greenhouse gas removal solutions, such as bioenergy carbon capture and storage, which sees emissions from lower carbon biofuels captured and stored to prevent them going into the atmosphere.

In the shipping sector zero carbon or near zero carbon could be feasible by 2050 the CCC said, if there is a widespread adoption of cleaner and as yet mostly so far untried fuels such as hydrogen or ammonia.

The CCC advice came as several ports, banks, oil and shipping companies on Monday launched an initiative which aims to have ships and marine fuels with zero carbon emissions on the high seas by 2030.

The International Civil Aviation Organization has committed to a target of halving net emissions by 2050, compared to 2005 levels and is working on a Carbon Offsetting and Reduction Scheme for (CORSIA) which requires most airlines to limit emissions or offset them by buying credits from environmental projects.

The CCC, which is independent of the government, is chaired by former British environment secretary John Gummer and includes business and academic experts.

Source: Reuters.com

hapag lloyd

Global container fleet breaches 23m teu

A wave of ULCV deliveries this year has pushed the total containership fleet capacity over the 23m teu mark, with the last million slots added in a breath–taking 14 months, according to an Alphaliner report. 

However, the newbuilds, mostly consisting of ULCVs, have arrived at a time of softening demand growth across the major tradelanes of the world, which is already forcing carriers to blank a significant amount of headhaul voyages. 

In fact on Monday the 2M partners, Maersk and MSC advised that the “temporary suspension” of their AE2 / Swan Asia – North Europe loop would commence one week earlier than planned, with the final schedule sailing from Qingdao on 25 September also being cancelled. 

While the new ULCVs will in most cases immediately be deployed on the Asia – Europe tradelane the cascading impact of the incumbent tonnage being reassigned to secondary routes will have negative consequences on freight rates in those markets. 

Ocean carriers received some 91,000 teu of newbuild tonnage in the last week alone, including two further MSC Gulsun-series 23,000 teu + vessels; the 21,230 teu Cosco Shipping Planet and the 20,240 teu Ever Globe.

According to the Alphaliner data, 826,000 teu of cellular capacity on some 108 vessels has been received by liner operators so far this year. 

However, in contrast the scrapping of older ships has stalled, with only 165,000 teu reported to have been sold for demolition to date, due to a strong charter market driven by the demand for substitute vessels to cover scrubber installations on the existing fleet. 

 “A strong charter market gives owners little incentive to recycle ships, and several vessels that were initially bound for the breaking yards are now being kept in active service,” said the consultant. 

Indeed, London shipbrokers Braemar ACM reported this week that there have been only three demolition sales in the past 30 days. 

“Some of the demand increase since June is related to vessel downtime for scrubber installations. A total of 44 ships with an overall capacity of 465,000 teu are currently undergoing retrofit work at various shipyards,” said Alphaliner. 

However, this artificial charter market demand, caused by the looming IMO 2020 0.5% sulphur cap regulations on marine bunkers, is masking the weakening fundamentals of global trade. 

Earlier in the week, shipping association Bimco reiterated its expectation for containership scrapping at some 200,000 teu for the full year but warned that the “fundamental balance of the container shipping market will worsen this year”. 

Alphaliner said that it expected that the low scrapping rate would “persist for the remainder of the year” and as a consequence has lowered its recycling forecast to less than 250,000 teu from its previous estimate of 350,000 teu. 

Source: Alphaliner / The Loadstar