COS Weekly Newsletter - Friday, 25 August 2023

COS Weekly Newsletter - Friday, 25 August 2023

COS Weekly Newsletter - Friday, 25 August 2023


Celebrate our 100th anniversary with us this September!

Join us on September 27 and 28, 2023 for Shipping360, a 1.5-day conference that brings more than 20+ experts from across the globe to Vancouver to share their insights on the global trade outlook, supply chain resiliency, decarbonization and future fuels, environmental sustainability and digitalization. 

Conference rates

Member rate: $750
Non-member: $950

 

Join us at our Centennial Gala on the evening of September 28 to celebrate 100 years of shipping on the West Coast and World Maritime Day. Gala tickets are sold separately from conference registration.

Centennial Gala

Members
Individual  - $275
Table (10) - $2,500

 

Non-members
Individual - $325

Table (10) - $3,000

 

 Learn more about our centennial events here. 

 

 

Local News

HOPA Ports offer LNG bunkering to first Euro-owned vessel in Hamilton

Hamilton and Oshawa Ports are contributing to the reduction of carbon emissions in Great Lakes shipping fleets by providing Liquefied Natural Gas (LNG) bunkering facilities to vessels. The LNG bunkering service was launched in 2020 through a partnership between the Hamilton-Oshawa Port Authority and REV LNG. Recently, the Fure Viten became the first European-owned vessel to receive LNG at the Hamilton facility. More than 40 bunkering operations have been conducted by Petro-Nav Desgagnés and REV LNG at HOPA since its inception. The availability of LNG bunkering is addressing industry demand for environmentally friendly fuelling options in the maritime sector.

Vancouver based Bridgemans Services to convert cruise vessel into floating hotel

Vancouver-based Bridgemans Services Group is planning to convert an Estonian cruise ship, the MV Isabelle, into a floating hotel for industrial workforces by the end of this year. The ship, built in 1989, will be refurbished in Estonia to offer luxurious accommodations including single cabins with private ensuites, a high-end dining room, meeting rooms, Wi-Fi, fitness facilities, and more. Bridgemans provides turn-key floatel experiences for large industrial projects worldwide, serving industries like LNG. Chevron has previously contracted one of Bridgemans' floatels, the Europa, for its Gorgon LNG project in Australia.

Robert Allan Ltd. to build first Methanol Hybrid Fuel Cell (MHFC) tug for Svitzer

Svitzer and Robert Allan Ltd. collaborated on the design of the world's first Methanol Hybrid Fuel Cell (MHFC) tug. This innovative tug will operate without diesel fuel, utilizing a combination of batteries, fuel cells, and gensets. It marks a significant advancement in Svitzer's efforts to decarbonize its global towage fleet. The MHFC tug is set to operate in the Port of Gothenburg, Sweden, by the latter half of 2025, contributing to the port's goal of achieving a 70% reduction in emissions by 2030. The design process is commencing, and the teams are excited to work with suppliers to select appropriate equipment and support the design process.

International

China to double its LNG import capacity

China, now the leading global LNG importer ahead of Japan, is embarking on extensive plans for additional LNG import terminal construction. The country's first LNG import terminal was established in Guangdong in 2006. Presently, China operates 28 terminals with a combined capacity of 112.77 million tons annually. China has recently green lit 23 new receiving station projects, which will collectively add a capacity of 86.6 million tons per year. Additionally, 12 expansion projects for existing facilities have been approved, aiming to contribute an extra 44.5 million tons per year by 2025. The expansion aligns with China's consistent growth in LNG imports, with July witnessing a 24.3% increase compared to the same month the previous year, reaching about 5.86 million tons.

Zero-Emission Freight and Marine Statewide Grant Funding in California is now open for applications

The VW Zero-Emission Freight and Marine (ZEFM) program offers up to $20 million in funding statewide. The program supports emission reduction projects for freight and marine operations. Applications are reviewed on a first-come, first-served basis. Changes include allowing stacking with other state programs, removing funding caps, and using a higher cost-effectiveness threshold. Projects include heavy-lift forklifts, airport equipment, port cargo handling, marine vessel repowering, and shore power systems for ocean-going vessels.

Reduction in ship-tracks from reduction in sulphate emissions aiding global warming in the Atlantic ocean

The Atlantic Ocean is experiencing increased warming, affecting marine ecosystems. Rising temperatures have attributed to greenhouse gas emissions and stalled high-pressure weather systems that decrease cloud formation, allowing oceans to heat up. Another factor, often overlooked, is the reduction of ship tracks caused by regulations from the International Maritime Organization (IMO) in 2020. These ship tracks, formed by sulfate particles emitted by ships, contribute to the creation of reflective clouds that cool the planet. With fewer ship tracks due to reduced sulfur pollution, the Atlantic has warmed more rapidly, particularly in shipping corridors, amplifying the warming effect of carbon emissions. This unintentional experiment suggests that cloud brightening, a geo-engineering approach to inject salt particles into the air for more reflective clouds, could potentially help counteract global warming. Scientists are studying the complex interactions between pollution and clouds to better understand their impact on climate change.


Dual tanker collison in Suez Canada briefly disrupts traffic

Two tankers, the BW Lesmes carrying liquefied natural gas and the Burri carrying oil products, collided in the Suez Canal, causing a brief disruption in traffic. The collision occurred due to a mechanical malfunction on the BW Lesmes and strong currents in the canal. Tugboats were deployed to clear the waterway and both vessels were successfully towed away. No injuries or pollution were reported, and the vessels appeared to have minimal damage. This incident recalls the high-profile grounding of the Ever Given container ship in the same canal in 2021, which caused a significant disruption to global trade. The Suez Canal is a crucial passage for oil, natural gas, and cargo transportation, and it generates significant revenue for Egypt.

Vigor awarded with $150 million contract for Washington State Ferries' conversion to hybrid-electric propulsion

Washington State Ferries (WSF) is set to convert up to three of its Jumbo Mark II-class ferries to hybrid-electric power as part of its efforts to achieve zero emissions by 2050. The Washington State Department of Transportation awarded the shipyard contract to Vigor for the conversion, which also involves updating the aging propulsion system controls to extend the vessels' lifespan. The contract's winning bid by Vigor was around $150 million, with an additional fixed-price option to convert a third vessel in 2025. The initiative is in response to environmental goals set by the state, reducing greenhouse gas emissions and improving air quality in ferry-served communities.

Port Houston adopts data-sharing software to battle slow, manual vessel arrival process

Port Houston has adopted a data-sharing platform provided by container terminal technology company Portchain. This platform enables the port to digitally coordinate vessel arrival times with its ocean carrier customers. The system, known as Portchain Connect, streamlines the process of arranging vessel calls by facilitating automated data exchange and digital collaboration. The goal is to enhance efficiency, improve berth scheduling, and reduce errors in the coordination process. Portchain Connect has gained traction globally, with 76 terminals already utilizing it, accounting for about 4% of all global port calls. The system aligns with efforts to achieve just-in-time vessel arrivals, which can help meet environmental regulations and reduce fuel.

Latest Mercy Ship "Global mercy" welcomed in Sierra Leone

Mercy Ships Canada announced the return of Mercy Ships to Sierra Leone. The organization's hospital ship, the Global Mercy, has arrived in Freetown, Sierra Leone, and will provide free specialized surgeries and training for healthcare professionals over the next ten months. This marks the sixth collaboration between Mercy Ships and the government of Sierra Leone, with the Global Mercy being the world's largest non-governmental hospital ship. The surgeries will include procedures like tumour removal, cleft lip correction, cataract removal, orthopaedics, and reconstructive plastics. The program is aligned with Sierra Leone's healthcare plan and aims to strengthen the surgical care system by training local healthcare professionals. The ship's presence is expected to have a lasting impact on the nation's healthcare capabilities.

Solutions to enhance industrial scale CO2 shipping catches interest

Five partners from Australia and Japan, including Future Energy Exports (FEnEx CRC), JX Nippon, Low Emission Technology Australia (LETA), Mitsui O.S.K. Lines, and Osaka Gas, have signed a research and development agreement to develop solutions for industrial-scale shipping of CO2. The project aims to study the feasibility and operability of low-pressure and low-temperature solutions for transporting CO2 by ship. The research will examine the behaviour of liquid CO2 under dynamic operating conditions and the impact of non-CO2 components. The goal is to develop technologies for safe and efficient shipping of large quantities of CO2.

Panama Canal Authority declutters fears of congestion with actual figures

The Panama Canal Authority (ACP) has clarified the congestion figures at both ends of the canal, countering recent reports of 200 ships waiting. The ACP's updated data shows that there are currently 131 ships waiting, up by 45% from the average but down from 165 earlier this month. The average waiting time for unbooked transits is now between nine and 11 days, a 50% reduction from reports 10 days ago. The ACP emphasizes its commitment to transparency and accurate reporting, and the reduction in waiting times has been most significant for dry bulk carriers. The ACP had previously reduced daily transits by 20% due to water conservation efforts during an ongoing drought.

Japan's first Ammonia bunkering boom to be developed by NYK

NYK and TB Global Technologies (TBG) have entered a basic agreement to collaborate on developing Japan's first bunkering boom for ammonia ship-to-ship fuel supply. This joint effort aims to improve the safety of supplying ammonia, a highly toxic substance, to ships. TBG's technology will be used to prevent leaks of the liquid during the transfer process. A bunkering boom is a system of rigid pipes and hoses connecting a bunkering vessel to another vessel for fuel supply. NYK will contribute its expertise and data from the development of its ammonia bunkering vessel and knowledge gained from operating Japan's first LNG bunkering vessel.

BIMCO releases survey to consult on challenges regarding the Carbon Intensity Indicator

BIMCO, a global shipping association, is set to provide updates on its documentary work program in its member newsletter. The focus will be on the work of current subcommittees and new projects planned for later in the year. The initial focus is on the subcommittee agenda associated with the Carbon Intensity Indicator (CII). BIMCO is conducting a CII survey to understand how CII is being handled contractually, commercially, technically, and operationally by the market.

To contribute, please contact BIMCO at contracts@bimco.org. The Documentary Committee (DC) plans to discuss the findings of the survey at the next DC meeting in October.

Russia utilizes key Northern Sea Route by shipping Naphtha to China

Russia is shipping a rare naphtha cargo through the North Sea Route (NSR) to China, using the Arctic route to reach its major trade partner. The vessel SCF Irtysh, carrying 37,000 tonnes of naphtha, was loaded at Ust-Luga port and is the first such loading in at least a decade. The NSR offers a shorter route to China during the summer months compared to the Suez Canal, but requires ice-class ships and icebreakers, adding to costs. Russia aims to start year-round NSR supplies from 2024 with the assistance of icebreakers. President Putin has set a goal of supplying 200 million metric tons of goods via the NSR by 2030.

Ro/Ro trade catching strong demand benefits

Surging vehicle exports, primarily from Asian countries like China, Japan, and South Korea, are expected to drive the robust car carrier market for the coming months. Companies like Höegh Autoliners and Gram Car Carriers have achieved record interim and Q2 results due to this trend. China's vehicle exports are projected to rise by about 24 percent YoY to approximately 13 million units, with China alone expected to export over 4 million vehicles in 2023. Japan and South Korea have also seen strong export growth. The shortage of shipping capacity has driven freight and vessel charter rates upward, with one-year time charter rates reaching as high as $120,000 per day for a 6,500-car equivalent unit. Despite upcoming regulations and potential capacity shortages, the car carrier market is expected to remain robust due to increasing demand and strong growth in global vehicle sales.

Events

 

Sept 7 - COS Board of Directors Meeting @ 1200

Sept 11-13 - Ports Canada Conference - Trois-Rivieres, QC 
Sept 20 - WMCC PACMAR/NANS Meeting @ 1000
Sept 20-24 - Fraser Riverfest Activities and Lucille Johnstone Workboat Parade
Sept 24 - Port of Vancouver celebrates World Maritime Day @ Canada Place @ 1100
Sept 25 - BCIT Marine Campus and Industry Open House, North Vancouver, BC

Sept 28 - World Maritime Day - "MARPOL at 50 - Our commitment goes on." 

Ship of the Week

August 25 - MV Pyxis Ocean

The MV Pyxis Ocean, a bulk cargo ship owned by Mitsubishi Corporation subsidiary MC Shipping and chartered by Cargill, has become the first vessel to be equipped with BAR Technologies' WindWings. These large wing sails were retrofitted onto the ship at a COSCO shipyard in China. WindWings, measuring up to 45 meters in height, harness wind power and are expected to achieve up to 30% fuel savings on newbuild vessels. This initiative is part of the industry's effort to decarbonize, with the project co-funded by the European Union. The success of Pyxis Ocean's sails will guide further improvement and potential widespread adoption of the technology, aiming to reduce emissions and enhance vessel efficiency in maritime shipping.

August 25 - MV Pyxis Ocean

The MV Pyxis Ocean, a bulk cargo ship owned by Mitsubishi Corporation subsidiary MC Shipping and chartered by Cargill, has become the first vessel to be equipped with BAR Technologies' WindWings. These large wing sails were retrofitted onto the ship at a COSCO shipyard in China. WindWings, measuring up to 45 meters in height, harness wind power and are expected to achieve up to 30% fuel savings on newbuild vessels. This initiative is part of the industry's effort to decarbonize, with the project co-funded by the European Union. The success of Pyxis Ocean's sails will guide further improvement and potential widespread adoption of the technology, aiming to reduce emissions and enhance vessel efficiency in maritime shipping.