Bryony Worthington speaking at the Global Maritime Forum, Singapore 2019Photo: GMF

Cutting carbon from ship fuel will reshape global energy markets and give owners a chance to create new businesses with huge potential, a leading British environmentalist has argued.

Bryony Worthington, who was the lead author of the landmark UK climate change act, said decarbonisation would rip up today’s fuel market where shipowners are at the mercy of fuel prices set by energy firms.

If the shift is to hydrogen, as many believe most likely in the long-term, it will open up new opportunities to build production facilities away from traditional energy hubs.

“Shipowners will be buyers of the new fuels, and you could start to invest upstream in the manufacture of the new fuels you consume,” Worthington told the Global Maritime Forum in Singapore today.

“That’s a big vision — something that this sector can deliver far more effectively and efficiently than any other sector of the economy.”

Baroness Worthington is an independent lawmaker sitting in the UK’s House of Lords upper chamber and is executive director of the Environmental Defense Fund.

“Why should you care?” she asked the audience of around 250 leaders of the global maritime industry.

“Because it’s going to make good business sense. You are going to make money from this. This is a trillion-dollar market that is about to be broken open and become much more diverse.”

Worthington argued shipowners suffer because they fuel price takers.

“There is an opportunity as we move into a more diverse fuel model for you to be part of a new energy system where we are going to have many more diverse players and people entering into this market, meaning ultimately you’re less beholden to one or two options.”

Soren Toft, chief operating officer of Danish shipping giant AP Moller-Maersk, told the same session on the Global Maritime Forum’s Getting to Zero Coalition alliance that the bold target of net zero carbon emissions needed to be embraced.

“We are setting this course out because it is necessary for the world, it is necessary for future generations, and quite frankly it is necessary for shipping to do something about this to be a true and viable servant of global trade,” he said.

Issue for all
 

Cutting carbon emissions to help slow climate change is now a critical issue for everyone in shipping, he argued.

“This is an issue dear to my heart. The situation is serious. I take it very seriously, and frankly my kids they take it seriously and they demand answers amongst others from their father.”

Toft presented the Getting to Zero Coalition to the UN secretary general’s recent climate change summit in New York as one of only around 30 business leaders invited to speak.

“The Getting to Zero Coalition is exactly to address this how we can innovate, how we can collaborate and how we can scale around energy efficient solutions,” he added.

Worthington argued business faced no other choice but to change.

“We are getting to world where business as usual is no longer sustainable, there will be lots of changes coming,” she said. “We see this as an opportunity not a threat.”

https://www.tradewindsnews.com

Το άρθρο Killing carbon will open new $1trn fuel market to shipowners εμφανίστηκε πρώτα στο Maritimes.

Source: Imperial College London Dimitri Capaitzis graduated in mechanical engineering from Imperial College in London in 1955.

DIMITRI Capaitzis, a technical legend of the Greek shipping industry, has died in Athens, his office has announced. He was 88.

Known to many as ‘Micky’, his early career coincided with the dynamic rise of Greek shipping, mostly based in London, during the years after the Second World War.

This was the foundation for an unsurpassed knowledge of the design and operational developments of modern tramp shipping that Mr Capaitzis was always delighted to share, through regular scholarly papers, speeches, conference interventions and personal conversation that was always enlivened by his sparkling humour.

Born into the resident Greek community in Alexandria, Egypt, he graduated as a mechanical engineer from Imperial College, London, and was the first Greek alumnus of the college to go into shipping, initially as an apprentice at Newcastle Shipyards and at sea.

Between 1958 and 1975 he served as superintendent engineer with two of the leading London Greek shipping firms of their era Rethymnis & Kulukundis and subsequently C. M. Lemos.

As a consultant in London and Piraeus, he acted for various clients in a wide range of shipping, technical and legal work. But contracting, planning and supervision of newbuildings remained a key focus.

By 2009 he could look back on being involved with more than 150 newbuildings and seven conversions as a consultant, spanning shipyards in 13 different countries.

Mr Capaitzis was a former president of the Hellenic Marine Technical Consultants Association and from 2011 to 2013 he served as president of the Federation of European Maritime Associations of Surveyors and Consultants (Femas).

In later years, he retained his zest for passing on his experience to others.

Letters to leading reputable Greek newspapers showed his concern that historic personalities of the industry and essential chapters in its history should not go forgotten.

These and his industry papers showed a vivid interest in history and culture that went beyond shipping, but the maritime industry remained his passion.

Mr Capaitzis was a strong supporter of developing an organised marine cluster in Greece and in addition to being a fellow and member of many engineering and technological institutes he was a member of the Piraeus Association of Maritime Arbitrators.

Here is the link for anyone who subscribes to Lloyd’s List to read: https://lloydslist.maritimeintelligence.informa.com/LL1129728/Dimitri-Capaitzis-former-president-of-Femas-dies-at-88

Το άρθρο Dimitri Capaitzis, former president of Femas, dies at 88 εμφανίστηκε πρώτα στο Maritimes.

As a result, global container traffic growth also fell from 6\% in 2017 to a modest 2.6\% last year while container port throughput growth also declined to 4.7\% from 6\% over the same period.

Shamika Sirimanne, the director for the division on technology and logistics, said at the launch of the latest UNTAD review, “There has been a shift in globalisation patterns with a regionalisation of trade flows and supply chains.”

Moderated economic and merchandise growth has been accompanied by fundamental changes to China’s economy which has ceased to be the world’s factory and has moved to a more consumption-based demand economy. “China is no longer a low-cost producer, said Sirimanne.

According to UNCTAD, “The WTO [World Trade Organization] is in a bit of a funk right now,” and this has led to the proliferation of regional trade agreements, while trade uncertainties, caused by tensions in the Middle East and the trade war between the US and China in particular, have stalled global economic growth. For the maritime sector that lack of growth has been accompanied by “persistent over-supply of [ship] capacity.”

Containerised trade reached more than 150m teu in 2018, but while trade growth in the container shipping industry was under 3\% capacity growth was 13.1\% in 2018 and is projected to reach 13.4\% this year.

Overcapacity has caused major fluctuations in freight rates in the major container trade lanes according to the report. Eastbound transpacific rates stood at an average of just over $2,300 per feu, but the rates declined nearly 28\% to $1,667 per feu the following year. And while rates did recover in 2012 the cost of a 4oft unit out of Shanghai to the west coast of North America had declined to $1,736 per feu on average last year.

Westbound trades out of Asia to Europe were in even greater trouble, probably because the ultra-large container ships, in excess of 18,000 teu, were all deployed on these trades. Though the fluctuations in container costs pre-date the delivery of the first large vessels in 2013. In 2010 a20ft container to Europe from Asia was priced at $1,789 per teu, by 2011 that had declined to $881 per teu. Freight rates recovered to $1,161 per teu by 2014 but collapsed again to $629 per teu by 2016 before rising to a meagre $822 per teu in 2018.

According to the UNCTAD report, “Imbalances between supply and demand drove down freight rates on mainline container trade routes during the first half of 2018,” The report went on to say that these routes were faced with low volumes and excess capacity.

Freight rate decline was “Due to the continual deployment of mega large vessels,” said the UNCTAD report, with some 25\% of vessels deployed on the Transpacific trades being ships larger than 12,000 teu.

US imports from Asia received a boost with the trade dispute between the US and China prompting shippers to increase imports ahead of the introduction of tariffs and that demand raised rates temporarily. While on the Asia to Europe trades the decline in demand, attributable to the slowing European economies, predominantly the UK and Germany, and capacity oversupply are cited as the reasons for the collapse in freight rates.

Review of Maritime Transport 2019

Copyright 2019 Seatrade Informa Markets.

Το άρθρο World trade entering a new normal says UNCTAD εμφανίστηκε πρώτα στο Maritimes.

The idea to reinstate the ferry link between the two countries, which was discontinued 18 years ago, has been mentioned many times over the years but has always come to nothing.

However, Pilides believes times are right to try and reboot what was once a very important service.

“Despite still being a very difficult project, this time the conditions to turn the proposal into reality are the right ones,” she told Sunday Mail.

These conditions include seeking EU funds to subsidise the project which the government believes will help cover the financial gap that will occur, at least initially.

“In the past there was no funding for the activity, so it was clearly run on the basis that it had to make a profit to survive, and, with more airlines entering the market and offering cheap flights to Greece, the ferry service couldn’t survive,” she said.

“However, the EU funding is going to significantly facilitate the implementation of the service and will make sure it will remain economically sustainable.”

The trip to Greece from Cyprus could take up to 30 hours each way, indubitably a big chunk of a two-week holiday, for example, especially if compared to the time a plane takes to reach Greece.

However, Pilides believes the demand is there.

“We have analysed the situation very carefully,” she said. “I believe there is a group of people for whom the service would be appealing, such as people who are afraid of taking a plane or people with health problems that prevent them from flying.

Students, who have long holidays, are another target group as are those who are moving home.

“Carrying bulky items on a plane is either very costly or not possible at all, in the majority of cases. The ferry service would be a good solution to these issues.”

Pilides acknowledges that, even by adding up the categories of people potentially attracted by the ferry link service, they might not be enough to make it a solid alternative to flying.

“We are not talking about a huge number of people who are going to be queuing up to board a ferry to Greece. But I think that the significantly cheaper ticket, especially during the summer period when plane fares skyrocket, would create a demand.

“Nevertheless, we are still talking about people who have the luxury of time. The project is not aimed at business-oriented passengers.

The pressure will also be on the company that provides the service to come up with ways of making the trip a more enjoyable experience for the passengers in order to increase the demand she said.

“With that in mind, the companies will get the EU funding that will allow them to keep low prices for the tickets.”

Despite lower prices than an airplane ticket being the government’s main selling point of the ferry link project, cruise and shipping companies have their doubts.

The general manager of Salamis Shipping Services Kikis Vassiliou said he could not see how ticket prices could be kept low, considering the costs that shipping companies face when transporting vehicles as well as people.

An airplane ticket price includes airport taxes, fuel surcharges, service and check-in fees.

Fuel surcharges are added to the ticket price to make up for the constant changes in the price of fuel price, which is the biggest item of expenditure for airlines.

“Still, the cost of a plane ticket fare is one thing, and the costs that shipping companies have to face for port fees and custom expenses are another,” Vassiliou told the Sunday Mail.

“We are talking about a massive difference between the two and I don’t see how a ferry ticket for a trip from Cyprus to Greece could cost less than a plane ticket.”

He gave the example of shipping companies which normally charge €140 for every car under two tons and €198 for cars over two tons.

“In addition to that, a ferry ticket will also include port fees and custom formalities in Cyprus and in Greece. It’s neither a cheap, nor an easy operation,” Vassiliou said.

Despite the difficulties, Pilides remains confident the car and passenger ferry service will be a success, counting on the fact that trips might not just be between Cyprus and Greece, but could also include other countries such as Lebanon, Israel and Egypt.

“As the minimum frequency for the service we want to implement is once per week in the summer and once per fortnight in the winter, it would make sense for the companies to offer other destinations apart from Greece in the service,” she said.

“However, those destinations will not be subsidised by the EU, only the link to Greece will be. So it’s ultimately up to each company to decide whether they want to offer additional destination to passengers.”

Whether the implementation of a ferry link will become reality next year remains to be seen. Certainly, though, bringing back a service that seemed to be gone for good could have beneficial effects for the Cypriot economy and tourism.
Source: Cyprus Mail

Το άρθρο Reviving the ferry link to Greece could soon be a reality εμφανίστηκε πρώτα στο Maritimes.

The ministers reviewed the excellent relations between the two countries and discussed issues related to maritime affairs and shipping.

Minister Arauz with the Greek Ship Owners Association’s president and vice president.

Minister Noriel Arauz, who was accompanied by Panama’s new Ambassador to Athens Ms Julie Limberopoulos and his technical team, met with the Greek Shipowners’ Association, its president Theodore Veniamis and George Angelopoulos, vice president. Greek vessels represent 8\% of Panama total fleet and is its third largest customer.

Answering to their requests of getting quicker respond to their queries, Minister Arauz told the Association’s representatives that Panama “was in process of modernizing the Ship Registry by creating a single integrated platform, which will be more efficient and technical.”

Minister Arauz and Ms Franglou, Navios

“The present ‘Electronic Ship Registration System (ESRS)’ used by Panama Ship Registry will be electronically merged with that of the General Directorate of Public Property Registry of Ships (ownership titles and mortgage registration), to simplify the process of ship registration,” Arauz said. “The new system will include innovations adapted to the existing technology and improvements to the registration process. The integration in a single platform will facilitate the procedure for the user, which is Panama’s goal and make it more available to our customers,” said Panama Minister of Maritime Affairs. “Everything will be accessible on-line. We have also begun an intense training of our technical offices-Segumar- and we hope you will soon see the results.”

Panama’s delegation was also received by some of its largest Greek customers: Ms Angeliki Frangou, CEO of Navios and Capt Panagiotis Tsakos, CEO of the Tsakos Group.
Source: Panama Maritime Authority

Το άρθρο Panama Visits Greek Ship Owners And Promises Modernization Of Ship Registry εμφανίστηκε πρώτα στο Maritimes.

This is a key finding of the Global Maritime Issues Monitor 2019, published yesterday by the Global Maritime Forum; Marsh JLT Specialty, a division of global insurance broker and risk adviser Marsh; and the International Union of Marine Insurance. Survey respondents from 46 different countries around the world highlight ‘decarbonization of shipping’, ‘new environmental regulation’, ‘societal demands for sustainability’, and ‘failure of climate-change mitigation and adoption’ as four of the top 10 issues in terms of potential impact on the maritime industry.

Global Maritime Issues Monitor

Το άρθρο Global Maritime Issues Monitor 2019: Environmental and climate related issues jump to the top of decision-makers’ agenda εμφανίστηκε πρώτα στο Maritimes.

Since 2015, CO2 emissions per container carried have dropped by 9.6 percent, indicating that Clean Cargo members are making progress towards meeting the target set by the International Maritime Organization (IMO) of halving CO2 emissions from shipping by 2050.

Clean Cargo’s aggregate average Trade Lane CO2 Emissions Factors are compiled from the carbon dioxide emissions data reported by over 3,200 ships from 17 of the world’s largest ocean container carriers, including A.P. Møller – Mærsk, CMA CGM Group, COSCO Shipping Lines Ltd., Evergreen Line, Hapag-Lloyd, Hyundai M.M., MSC, ONE (Ocean Network Express), and Yang Ming Marine Transport Corp. The annual report indicates that container shipping continues to improve its fleet-wide environmental efficiency whilst ensuring the smooth functioning of global trade.

“With growing exposure of climate impact and increased societal and regulatory expectations, decarbonizing ocean shipping is no longer an impossible dream but a real business continuity challenge,” said Angie Farrag-Thibault, Director of Transportation & Logistics at BSR and Program Director of Clean Cargo. “While consolidated and comprehensive emissions data is one key part of this effort, system change through value chain collaboration is also critical. Clean Cargo enables shippers, carriers, forwarders, and ports to work together, along with a network of other initiatives and solution providers, on developing and scaling transformative solutions for a sustainable cargo shipping industry.”

Several years ago, Clean Cargo developed a standardized methodology and reporting system that was adopted globally by the industry, with carriers submitting operational data from the entire fleet to BSR on an annual basis for trade lane emission factors aggregation. The results produce environmental performance scorecards for each carrier, which are used to meet corporate supply chain sustainability goals by a significant share of shipping customers participating in the group.

Clean Cargo members also work to accelerate progress by sharing best practices, discussing trends and innovations across the full logistics value chain, and designing tools and pilot projects that support progress towards industry decarbonization. Clean Cargo is a GLEC Accredited partner of SFC and a Knowledge Partner to the Getting to Zero Coalition.

2018 Global Container Shipping Trade Lane Emissions Factors

Source: BSR

Το άρθρο New Data Shows 9.6 Percent Reduction in CO2 Emissions from Container Shipping since 2015 εμφανίστηκε πρώτα στο Maritimes.

“We explain what is new, what has been improved, what was not functioning properly and how we solved the problems. We need the feedback to improve and help make our customers competitive. If you do that, I think we have all the best cards to play in the game,” she said.

Until now the largest power in the shipping industry is the Greeks and they are very important to MAN as well, Pohlenz stressed.

Asked about the landscape after January 1st 2020, she voiced confidence that MAN can meet the challenges ahead.

“I think it will not cause big problems, because we are working on it and we know beforehand what is coming. It takes time and you can prepare for that, a company like MAN can prepare very well,” she stressed.

The problem is with countries outside the EU which do not have so strict rules and it should be a goal for everybody around the world to comply with IMO’s rules to fight climate change, she said.

Το άρθρο We need the feedback to improve and help make our clients more competitive: Angelika Pohlenz, Member of the Supervisory Board – MAN SE εμφανίστηκε πρώτα στο Maritimes.

During the inauguration a few days ago, Mr. George Margetis, CEO, and his close associates spoke to maritimes.gr about their plans for the future.

“The new offices reflect the extroversion I want to give to the company. It’s a landmark, ”Mr Margetis said, explaining that among the company’s goals is the transfer of know-how in the extraction of oil and natural gas from Houston to Greece.

A key role in thiw effort is played by Antonis Panagiotareas, Senior Surveyor-President Manager, who for three years has been offering one-stop solutions to Greek-owned shipping surveys in Houston.

“We started with shipping, but we also expanded into the energy sector,” said Mr. Panagiotareas, explaining that in Texas the know-how is decades ahead.

“We have this know-how and we can help the Greek government develop our country’s reserves. At the same time, we are also trying to bring investments from the US to repair drillships in Greece, ”he added.

“Houston is the Mecca of oil sector technology. All the best regarding offshore oil and natural gas drilling is there, “Mr Margetis said.

“Oil will not leave us at least for the next 30 years. Until the change is made, we will rely on oil and of course natural gas is coming strong and renewable energy sources are on the rise. Companies have to adapt to meet customer needs, ”said Tasos Garis, London Liaision Representative.

Το άρθρο We want to transfer Houston’s know-how on oil and natural gas extraction to Greece: George Margetis, Managing Director, Margetis maritime consulting εμφανίστηκε πρώτα στο Maritimes.

Signal Ocean is a technology start-up with a strong shipping pedigree that has successfully launched The Signal Ocean Platform in 2018, offering already widely adopted decision-support solutions to
chartering professionals in the larger crude-oil tanker segments.

Simpson Spence Young (SSY) is the world’s largest independent and privately owned shipbroker, with 20 offices worldwide and over 400 people serving all the major shipping and commodity locations around the globe. Together, the two companies will develop solutions and services for dry-bulk chartering professionals.

Ioannis Martinos, the CEO at Signal commented, “Our strategic collaboration with SSY, one of the worlds largest and most forward thinking shipbrokers, puts us in a unique position to develop a deeply value-adding solution for the dry market. Our ambition is to cover all dry vessel sizes, giving our users superior minute by minute situational awareness of dry market activity.”

Commercial shipping offers a vast number of information challenges. Professionals have to constantly collect, piece together and interpret thousands of snippets of information every day to stay on-top of the global freight markets. The Signal Ocean Platform was born of a desire to improve the flow, fusion and analysis of such information to help professionals focus on achieving extraordinary performance.

Chairman of SSY, Mark Richardson, added “We are very excited about this new partnership, that enables us to focus on an area of shipping analytics that is fast becoming the differentiator for businesses. As part of our technology strategy, we recognise there is a growing need for cutting edge, data-driven technology in the shipbroking world. Signal Ocean already provides best-in-class solutions to the market and we are looking forward to working together to develop further innovations.”

Work is scheduled to begin immediately, while the first phase will focus on deploying, testing and fine-tuning the technology internally at SSY before engaging other interested parties.

Το άρθρο Signal Ocean announces partnership with Simpson Spence Young (SSY) on dry bulk carrier technology solutions εμφανίστηκε πρώτα στο Maritimes.