Seacurus Daily: Top Ten Maritime News Stories 25/10/2018
1. IMO Stating on Course
On Wednesday, member State representatives of the IMO’s Marine Environment Protection Committee (MEPC) turned down an industry proposal for an “experience-building phase” for the implementation of the 2020 fuel sulfur cap. BIMCO, Intercargo, Intertanko, the Marshall Islands, Liberia, Panama, the Bahamas and the United States had proposed a soft rollout for the sulfur rule in order to avoid “unduly penalizing individual ships” for noncompliance when the rule takes effect on January 1, 2020. MEPC has decided to keep its hard deadline for now, but it expects to take up new proposals in May.
2. ONE Losing Ground
According to the latest eastbound transpacific liftings data analysed by Alphaliner, ONE, the new Japanese merged container liner, lost a massive 14.2% of cargo in the April-September period, compared to the combined volumes of ONE partners K Line, MOL and NYK during the same period last year. ONE was forced earlier this month to issue a profit warning, suggesting it will make a $600m loss in its first full year of operations since starting out on April 1. Volume retention was especially poor during April and May, when ONE lost 34% and 37%, respectively, of transpacific volumes.
3. New Scrubber Pool
New York-based Hartree Maritime Partners and Arne Fredly’s Hunter Group are forming a VLCC pool for ships fitted with scrubbers. The two parties will kick off with 11 new DSME-built VLCCs in the pool. “It is Hartree and Hunter’s intention to form a new scrubber fitted pool to operate this fleet of eleven eco VLCC vessels. By combining Hartree’s global trading and chartering experience and Hunter’s technical knowledge this pool will serve to minimize operational costs whilst maximizing earnings. We will be working with other scrubber fitted VLCC operators to expand this pool,” commented their MD.
4. Call for Med ECA
France has presented results of its impact assessment of a possible emission control area (ECA) in the Mediterranean Sea indicating that a combined ECA which addresses both sulfur and nitrogen oxides would have the greatest positive effect in reducing air pollution and bringing socio-economic and ecological benefits. For sulfur, an ECA would set limits of 0.1 percent, less than the planned global sulphur cap of 0.5 percent globally from 2020 and the current level of 3.5 percent. The possible ECA would be the fifth one designated after the Baltic Sea, the North Sea, the North American area and US Caribbean Sea area.
5. Deal Not Charters
Responding to reports that Government may charter ships in the event of a No-Deal Brexit, UK Chamber of Shipping CEO Bob Sanguinetti said: “It is not clear how Government chartering ships would really help. I don’t see how Government itself can move goods faster or more efficiently than the private sector, particularly as those goods will still need to go through the same customs procedures in ports – which is where the real problem would be. “We must not sensationalise. We are a flexible industry and the shipping market can adapt to meet the needs of our national economy just as it always has done.
6. WTO Reforms to Threats
The World Trade Organization is scrambling to develop a plan for the biggest reform in its 23-year history after U.S. President Donald Trump brought the world’s top trade court to the brink of collapse by blocking appointments of its judges and threatening to pull the United States out of the organization. Trump’s administration has targeted the WTO, the watchdog of global commerce, as part of his wider campaign against trade arrangements he contends have cost hundreds of thousands of U.S. jobs. Proposals to shore up the organization include increasing the number of judges and rewriting trade rules.
7. The Witching Hour
Most professional mariners agree that the most dangerous hour of shipping is the hour between 23:00 and 24:00 – this is because it’s the one hour when the most junior officer, the 3rd Mate, is alone on the bridge of most ships – but a new book by New York Times bestselling author Daniel Pink suggests that the most dangerous time of shipping starts at 13:00 in the afternoon!
8. UK Tech Growth
UK shipping technology sector will grow to become a GBP 12.8 billion (USD 16.5 bln ) market by 2030 from the current level of GBP 3.7 billion, revealed a study. A new report commissioned by UK venture fund and think-tank PUBLIC estimated the growth will be fuelled largely by digitalisation of the industry, with technologies such as big data, blockchain, and artificial intelligence creating a new market for digitally enabled maritime services. For the purposes of this report, shipping technology is defined as the technology that can be applied to make maritime trade processes more efficient and reduce bottlenecks.
9. New Ship Management Deal
Baku-based Azerbaijan Caspian Shipping Company (ASCO) has reached an agreement to set up a new joint venture with Columbia Shipmanagement. Under the memorandum of cooperation, the parties plan to further enhance bilateral cooperation through the JV. Namely, the companies said they would create a solid basis for the exchange of experience on the operation of large tankers in international waters, training of seafarers and office staff of ASCO, and ensuring the participation of the shipping company in new foreign projects.
10. MOL Embracing Efficiency
Japanese shipping company Mitsui O.S.K. Lines (MOL) has decided to equip 80 of its operated bulk carriers with an energy-saving operation analysis service. The company said it would install NAPA Fleet Intelligence (NAPA FI) with Noon Report developed by Helsinki-based software company, NAPA Ltd, in an effort to reduce its environmental footprint. MOL explained that the service, which is a part of the company’s data-driven initiatives, is expected to optimize propulsion performance and reduce the environmental impact even for vessels on short-term charter contracts.
Daily news feed from Seacurus Ltd – providers of MLC crew insurance solutions www.seacurus.com