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U.K. to Establish a Post-Brexit Port 70 Miles From the Sea

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The U.K. government aims to address one of the big challenges of Brexit by creating a so-called inland port where imported goods can be checked without causing logjams at the coast, two people with knowledge of the plan said.

Her Majesty’s Revenue and Customs is in talks to rent a warehouse at Magna Park in Milton Keynes, about 70 miles (113 kilometers) from the coast and 50 miles northwest of London, the people said, asking not to be identified because the negotiations are private. Goods from the European Union could pass through customs there after the U.K.’s departure from the bloc.

HMRC is talking to the owner of the property, Gazeley, about the lease, which is yet to be signed, the people said. A spokesman for the European warehouse developer owned by Singapore’s GLP Pte declined to comment, while an HMRC official said inland customs checks are part of its “business-as-usual” activity.

The government’s plans for the Milton Keynes site come as demand for warehouse space booms in Britain, thanks to e-commerce, which now accounts for a fifth of retail spending excluding groceries. Manufacturers including Rolls-Royce Holdings Plc warn they may be forced to hold more stock if Brexit impacts their supply chains, a trend that would stoke demand for warehousing further.

If Brexit disrupts trade between the U.K. and EU, then supply chains could become less reliable,” said Jon Sleeman, EMEA industrial and logistics director at broker Jones Lang LaSalle Inc. “Some manufacturers or retailers may decide that they need to hold more inventory in the U.K. to cover for this uncertainty. This could lead to requirements for additional warehouse capacity.”

The U.K. and EU are still negotiating a divorce settlement and there are concerns about post-Brexit congestion as customs checks are carried out at the border. HMRC Director General for Border Coordination Karen Wheeler told lawmakers last November that Britain will need additional inland infrastructure to smooth customs procedures.

There was further evidence of the government’s plans in a job advertisement posted by HMRC on Sept. 17. The ad says the U.K. is establishing two new “inland pre-clearance” sites “in order to meet regulatory requirements,” and that the job involves carrying out customs checks on goods before they’re cleared for import.

HMRC said “Thursday it’s “committed to collecting and protecting customs duties and import VAT from potential fraud now and in the future, and we continue to evolve our response as new threats emerge. HMRC works in partnership with Border Force to undertake targeted checks inland as part of our business-as usual-activity.”

Source:hellenicshippingnews

IMO sees ‘by far’ majority of ships complying with 2020 sulfur cap

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The International Maritime Organization (IMO) is expecting “by far” the majority of the world’s fleet to comply with its tighter sulfur emission standards in 2020, according to the UN body’s head of air pollution and energy efficiency.

The IMO’s global sulfur limit for marine fuels is set to drop from 3.5% to 0.5% at the start of 2020, forcing most shipowners to switch from burning high sulfur fuel oil to cleaner, more expensive alternatives. While some have raised the concern that some shipping companies may flout the new rules in the hope that their enforcement will be lax, the inconvenience of doing so may prevent this from being widespread, the IMO’s Edmund Hughes told S&P Global Platts in an interview Tuesday.

The expectation is that by far the majority will be using compliant fuel,” he said. “If you’re not doing that, you’re creating bureaucratic barriers for yourself.

Hughes noted out that 96% of the global fleet by tonnage is registered to a flag state that has signed up to MARPOL Annex VI — the IMO document setting out its rules on air pollution from shipping — and said ships failing to comply could lose their international certification, preventing them from operating as a commercial trading vessel.

And next month, a key committee of the IMO is expected to adopt a ban on the carriage of non-compliant fuels from March 2020, empowering port states, as well as the flag state where a vessel is registered, to help with the effort of investigating whether ships are burning compliant fuel in international waters.

Hughes is due to deliver a presentation on 2020 and the IMO’s perspective at the Platts Asia-Pacific Petroleum Conference in Singapore September 25.

The availability worldwide of sufficient 0.5% sulfur fuels to cover the shipping industry’s demand in 2020 remains in doubt, and this in itself may prompt a degree of non-compliance. A system of fuel oil non-availability reports (FONAR) — a document filed to environmental authorities to notify them that a ship was unable to buy compliant fuel — may be used worldwide in 2020.

The use of the FONAR system could allow the shipping industry an easier path into the new era after 2020 by effectively allowing some initial non-compliance under certain circumstances, while the availability of 0.5% sulfur fuels is tight, but some have suggested it could lead to lax enforcement of the rules in some regions.

Hughes said he expects initial use of FONARs to be widespread, but that their repeated use is not likely to be tolerated by port states for long. “It’s not a get-out-of-jail-free card, the FONAR,” he said. “If a ship uses it once, twice, maybe three times, it should be fine, but after that there’s going to be problems.”

“It’s there as an exception, not the rule,” he added. “For an easy life, ship operators should be looking at compliance.

He noted that ship operators filing a FONAR to the relevant authority will need to document why they were unable to bunker compliant fuels, and that the report will only be taken into consideration, not automatically taken as a legitimate excuse.

The IMO has been relatively unknown in the wider oil industry and among the general public in the past, but now faces unprecedented public attention as its emissions regulations are likely to have a big impact on other industries.

“Public scrutiny is to be welcomed,” Hughes said. “The delegations of member states coming to IMO are nominated by those states to represent their governments, who in turn represent the populations of their countries.”

Several economists have raised the possibility of the 0.5% sulfur cap in 2020 spurring increased refinery runs, adding a few dollars per barrel to the price of oil and adding to pressures on the global economy. But any politician wanting the IMO to change course under those circumstances would face a difficult path, according to Hughes, as a majority of the parties to MARPOL Annex VI would need to agree to alter it.

They’re going to have to explain to their constituents why shipping should be able to continue with its current emission levels,” he said.

He also noted that the original reason for the restrictions on sulfur emissions — lessening the incidence of respiratory illnesses caused by these emissions, particularly in coastal communities — is often lost in the debate over the impact the regulation will have.

There are economic consequences, of course, but there are economic consequences of air pollution as well,” he said.

Source:hellenicshippingnews

Are electric vessels the future of shipping?

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As the world is changing, technologies that were the absolute norm, are now becoming old-fashioned. Up until now, ships have been sailing using fuels. However, it seems that electric vessels are gaining momentum, with many countries considering them as the future.

Electric vessels with energy storage in batteries and optimized power control can provide significant reductions in fuel consumption, maintenance and emissions.

A study by DNV GL shows how maritime batteries can contribute to achieving CO2-reduction targets. The study shows that reducing CO2 emissions in 2040 to below 2015 levels using green fuels will require the use of zero-emission options such as electricity and biofuels.

Additionally, in its latest Maritime Forecast to 2050, DNV GL believes that digital solutions could be vital to reducing shipping emissions. Namely, the report expects that the shipping GHG targets will be met. Carbon neutral fuels will play a crucial role, as by 2050, 39% of shipping energy will be provided from carbon-neutral fuels and 23% from LNG and LPG, a third of all ships will have electric batteries, thus contributing 5% of the market’s energy demand.

As for electricity in general, DNV GL notes that it will contribute even more to the global energy demand reduce from the mid-2030s onwards. Namely, global energy expenditure on energy, as a percentage of GDP, will decrease by 44% by 2050.

The good news is that electric propulsion is feasible for every kind of ship. From cruise ships to icebreakers, even war ships, as well as other marine applications, electric propulsion can improve operations in a sensitive environment.

This is what China also thinks. Speaking during a lunch that the Hong Kong Shipowners Association organised, Dr. Xie Xie, director of the  Waterborne Transportation Research Institute at the Chinese Ministry of Transport, noted that the country considers LNG as a transitional fuel and believes that electric ships will define the future of shipping.

What is more, two recent reports Global Electric Ships Market Professional Survey Report 2018 and The Electric Ships Market research report, analyze the future of electric vessels until 2025.

The first report outlines the product price, specification, financial and technical details, and research methodologies to assist businesses expand their market operations.

The second report mainly presents the definition, types, applications and major players of electric ships market. As the report says, the main regions that will play a crucial role in the electric ships market are:

  • North America;
  • Europe;
  • China;
  • Japan;
  • Middle East & Africa;
  • India;
  • South America.

In addition, The Electric Ships Market research report also mentions that the most important types of electric vessels will be:

  • Battery Electric Ships;
  • Plug-In Hybrid Electric Ships;
  • Hybrid Electric Ships.

Currently, Norway is leading the attempts for an electric future in shipping. The electric revolution in the Norwegian maritime sector started about 3 years ago, when the first electric transfer ferry for the Norwegian Roads administration was launched, proven both a zero-emissions solution and also with respect to reduced operational costs.

In fact, Norway's first batch of 63 new ferries is now being produced. What is more, fishing boats, supply vessels, research ships, yachts, ans tugboats are also choosing electric propulsion instead of diesel-fueled combustion engines. These developments made Norway’s coast be called as Norway’s Silicon Valley.

Moreover, in December 2015, the Norwegian parliament also passed a law requiring low- and zero-emission solutions for all national and local ferries, providing also financial support. Now more than 60 electric ferries are in the plans and are about to be put into operation in the next 34 years.

Finally, the Norwegian Parliament adopted a resolution to reduce cruise ships and ferries emissions in the Norwegian fjords, no later than 2026. This regulation aims to make the fjords the world’s first zero emission zone at sea, while it will have a positive impact on transport, tourism, and the maritime industry.

Source:safety4sea

Pirates kidnapped 12 crew in Nigeria

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Pirates kidnapped 12 crew from a Swiss merchant vessel on Saturday, 22 September in Nigeria, Massoel Shipping the ship’s operator informed. The ship was traveling between Lagos and the Port Harcourt.

As Reuters reports, the vessel carrying wheat was traveling between the Lagos and the oil hub Port Harcourt, when pirates boarded it. The pirates kidnapped 12 of the 19 crew members.

The attack took place about 45 nautical miles south west of Bonny Island. The kidnapped crew members are from the Philippines, Slovenia, Ukraine, Romania, Croatia and Bosnia.

Nigeria was unaware of the kidnapping and it will investigate the incident.

The ICC International Maritime Bureau (IMB), in its second quarterly report, says that 107 incidents were reported in the first six months of 2018. In addition, all 2018 crew kidnappings have taken place in the Gulf of Guinea in six separate incidents.

Nevertheless, the report mentions that the true number of incidents in the Gulf of Guinea is believed to be significantly higher than what is reported.

Source:safety4sea

New project aims to advance use of solar heat

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Solar Heat Industrial Processes (SHIP) deployment is currently very low because of economic competitiveness, low prices of fossil fuels charged to industries and to the complexity of their integration in existing industrial processes. SHIP2FAIR project aims to solve this issue using competitive and environmentally friendly solar technologies, innovative business lines and a user-friendly approach.

SHIP2FAIR has received funding from the European Union’s Horizon 2020 research and innovation programme and its main objective is to adopt solar heat in industrial processes starting from the agro–food sector, by developing the following set of tools and methods:

  • Replication Tool, a software to support the concept design of Solar Heat Industrial Processes projects (SHIP) and the development of techno-economic pre-feasibility studies;
  • Control Tool, to add intelligence to the technologies and to allow them to reach their full potential, determining the optimal operating strategy for the solar plant and existing heating facilities;
  • Overall SHIP guide, a complete guide for use of SHIP2FAIR tools and for the development of SHIP projects in the agro-food sector addressing their design, installation and operation;
  • Capacity building program, training campaigns addressing professionals such as agro-food SME-owners and workers and students.

The Spanish research centre, CIRCE, leads SHIP2FAIR team, with partners from the Agro-food sector and key partners in solar technologies, such as Bodegas Roda, RAR Açucar, Martini & Bacardi, ABC industries, Cooperativas Agro-alimentarias de España, BIOENERGY 2020+, CEA, EDF, EUREC, Industrial Solar, ISMB, RINA, S.O.L.I.D and TVP Solar.

In addition, RINA leads the realization of the Replication tool and supports the development of the control strategy and the commissioning of the SHIP installations.

SHIP2FAIR is now officially launched and will last until March 2022.

Source:safety4sea

English High Court Continues Djibouti Port Company Restraint

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The High Court of England and Wales in London has continued the injunction first made on August 31, 2018 prohibiting the Government of Djibouti’s port company, Port de Djibouti S.A. (PDSA) from interfering with the management of the joint venture company, Doraleh Container Terminal S.A. (DCT). 

On August 31, the Court issued an injunction against PDSA, as shareholder in DCT, prohibiting it from acting as if the joint venture agreement with DP World has been terminated. The continuation follows the enactment of an ordinance by the President of Djibouti on September 9 that purported to transfer PDSA’s shares in DCT to the Government of Djibouti. The Government has indicated that it is acting to protect the fundamental interests of the nation of Djibouti and the legitimate interests of its partners in the face of what it called severe irregularities.

DP World has issued a statement saying: “Following a hearing on September 14, at which PDSA failed to appear despite being notified, the Court ordered that the injunction will continue until it makes a further order or an award of the arbitration tribunal at the London Court of International Arbitration that will be formed imminently to consider the shareholding dispute with DP World.”

On DP World’s application, the Court also extended the injunction to include any ‘affiliate’ of PDSA. Under the JV Agreement, PDSA’s affiliates include the Government. PDSA is 23.5 percent owned by China Merchants Port Holdings Company of Hong Kong.

The Court ordered that PDSA must ensure that any transferee of DCT shares is legally bound by the Joint Venture Agreement and Articles of Association in the same way as PDSA. The ruling means neither the Government nor PDSA can control DCT or give valid instructions to third parties on behalf of DCT without DP World’s consent.

The Government filed an arbitration against DP World seeking to rescind the Concession Agreement, claiming its terms were unfair to the Government. The London Court of International Arbitration tribunal (comprising Sir Richard Aikens, Lord Hoffmann, Peter Leaver QC) ruled against the Government, finding the terms were fair and there was no bribery. Certain counterclaims raised by DCT and DP World in relation to DP World’s exclusive right to container handling facilities in Djibouti remain to be decided by the Tribunal. 

In a separate proceeding, another LCIA Tribunal (comprising Professor Zachary Douglas QC) held that the 2006 Concession Agreement was valid notwithstanding the Government’s attempts to terminate it through special legislation and decrees. DP World’s claims for damages against the Government will now be determined in these proceedings.

DP World says that the Government has not offered any compensation, and the company confirmed last week it will continue to pursue all legal means to defend its rights as shareholder and concessionaire in the Doraleh Container Terminal. A DP World spokesperson, said: “This is yet another in a series of rulings – all in favor of DP World – that demonstrate Djibouti’s continuing disregard for the rule of law. We underline our belief that companies intending to operate in such a country or already operating there need to seriously consider their dealings with this Government in the face of such behavior.”

Source:maritime-executive

Georgia Ports Plan 8 Million TEU Capacity by 2028

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The Georgia Port Authority (GPA) has unveiled a $2.5 billion plan to expand the capacity at the Port of Savannah to 8 million TEUs by 2028.

GPA Executive Director Griff Lynch at the Savannah State of the Port detailed GPA’s 10-year,  $2.5 billion plan to expand the capacity of the nation’s fastest growing and single largest container terminal from 5.5 million twenty-foot equivalent unit containers (TEUs) to 8 million, said a press release.

We’re preparing to redefine the Port of Savannah as not simply the load center for the Southeastern U.S., but as the port of choice for major inland markets east of the Mississippi River,” Lynch said.

During his presentation to nearly 1,400 people, including Gov. Deal, Georgia House Speaker David Ralston, Congressman Buddy Carter, other elected officials and business leaders from across the state and nation, Lynch detailed projects that include the Mason Mega Rail facility, which will double the Port of Savannah’s rail capacity to 1 million lifts per year by 2020; new equipment purchases including eight additional ship-to-shore cranes and 64 additional rubber-tired gantry cranes; gate and container storage expansions, berth improvements and off terminal road additions.

Almost eight years ago, Gov. Nathan Deal established a goal to make Georgia the best state in the nation to do business by providing state government, business leaders and our ports what they needed to make that happen,” said GPA Board Chairman Jimmy Allgood.

He noted that since Governor Deal took office in 2011, the Port of Savannah has grown by 45 percent or an additional 1.2 million TEUs; the harbor deepening project has been approved and is now 50 percent complete; and, state transportation improvements like the Jimmy Deloach Parkway ensure that cargo moves more efficiently and without delay.

In just the past year, GPA handled a record 4.2 million TEUS, for an impressive 8.4% increase, or 325,000 additional units.  Intermodal rail lifts surged to 435,000, an increase of 16.1%, or more than 60,000 additional moves, another GPA record.

Source:marinelink

S.Korea: Growth of seaport cargo slows on Sino-U.S. trade row

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Cargo processed at South Korean seaports has grown at a slower-than-expected pace this year in the wake of an intensifying trade row between the United States and China, data showed Friday.

Container cargo handled at South Korea’s largest port of Busan stood at 12.44 million twenty-foot equivalent units (TEUs) in the first seven months, up 4 percent from the same period a year earlier, according to the port authority.

The number accounts for 57.9 percent of its full-year target of 21.50 million TEUs. To attain the goal, cargo handling must grow at a monthly average of 4.9 percent or more.

Of the total, export-import cargo came to 10.41 million TEUs, up 0.5 percent from a year earlier but well below the authority’s monthly growth target of 2.2 percent.

The port authority attributed the slowdown to the trade war between the world’s two largest economies, which resulted in a decrease in South Korean exports of intermediate goods.

Incheon, South Korea’s second-largest port, was in a similar situation. In the first half of the year, cargo freight processed in Incheon, west of Seoul, reached 1.52 million TEUs, up 3.7 percent from a year ago.

Incheon’s full-year cargo handling target has been set at 3.3 million TEUs, up 8.2 percent from last year, but the goal appears to be out of reach in light of the current trend, its port authority said.

The slower increase was ascribed to a drop in exports to China, which accounts for 60 percent of its cargo handling, amid the trade conflict between Washington and Beijing.

Meanwhile, the southwestern port of Gwangyang posted a solid 8.5 percent on-year increase to 1.34 million TEUs in the first half of the year. Gwangyang remains relatively unscathed by the trade row as it serves as a stopover port for freight ships.

Experts painted a gloomy picture for the remainder of the year, saying domestic and external conditions may turn for the worse for the coming months in the wake of the trade war.

Source:hellenicshippingnews

ARA diesel, gasoil stocks up 1.2% on week: PJK International

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Diesel and gasoil inventories in the Amsterdam-Rotterdam-Antwerp trading hub increased 1.2% on the week to 2.889 million mt in the seven days to Wednesday, according to PJK International data.

Compared to the same period last year, diesel and gasoil stocks were 11.6% higher, according to the PJK data published late Thursday.

Low water levels on the River Rhine have hindered flows of 50 ppm sulfur gasoil and 0.1% sulfur gasoil to inland Germany and northeast France, driving up ARA distillate stocks.

Demand in Germany is good but you can’t deliver there at the moment,” said a trader, adding that when the Rhine returns to more normal levels demand should be excellent.

The outlook for barge traffic on the Rhine has improved with forecasts of rain in the region. “Some rain is due over the coming days, this could help,” said a source.

In the Mediterranean, balances could be tightened by supply constraints on the back of refinery issues and planned maintenance at refineries in the region, sources said.

The hydrocracker at the 302,000 b/d Milazzo refinery in southern Italy is currently offline after issues with the plant’s power system last weekend, and it will be running maintenance on the unit and its LC Finer over the coming weeks, according to a source close to the refinery.

For the moment though, talk of the workability of the arbitrage from the ARA region to the Mediterranean remains limited, with freight cited as the most substantial hurdle.

Source:hellenicshippingnews

To excel in marine insurance, it helps to earn stripes in the marine sector

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Paul Mendham, president of Vancouver-based Navis Marine Insurance Brokers, didn’t get his start in insurance by working behind a desk at a brokerage. Instead, he launched his career trajectory in the marine side of the business, initially working on a tug before his then-girlfriend and now-wife, whose father was a retired deep sea captain, decided that she didn’t want Mendham to go down the same path.

I took my passion for the marine industry and went back to school, and there was a program that BCIT [British Columbia Institute of Technology] offered in shipping and marine management,” said Mendham. “They had a marine insurance and marine law course, and I fell in love.”

During a work practicum for the program, Mendham was placed at managing general agent Coast Underwriters and was exposed to the marine insurance industry. He never went back to the BCIT program – the now-president received a job offer and decided that marine insurance was where he was meant to be.

I spent nine years working at Coast Underwriters in marine claims and underwriting,” said Mendham, though he then spent two years working at the Insurance Corporation of British Columbia away from the marine industry, managing garage and fleet underwriting.

Mendham quickly realized he was a marine guy through and through, and got back into marine insurance working at HUB International as the VP of marine before going out on his own in March 2011 to start Navis.

We only really sell and service marine insurance products and work with marine clientele. We do some homeowners, but we would only do it for marine-related business,” said Mendham.

He finds that his own career path is a good pattern to replicate when expanding the Navis team.

A large portion of our team has come from the marine industry and is now in the insurance business. Instead of me hiring people that have insurance backgrounds and then trying to teach them the marine trades, we’ve been very successful bringing people from the marine industry,” he explained, highlighting one of the Navis brokers, Christopher Goulder, who was previously the president of Volvo Penta Canada. “He spent his whole career selling Volvo engines in the marine industry, and he’s now taken that passion and is bringing it forward, and we’ve taught him the insurance side of the business.”

As for the most fulfilling aspect of Mendham’s work in the marine industry, he loves being a problem solver.

The marine insurance market is complex – everything from small pleasurecraft up to commercial vessels – and as much as I enjoy placing coverage and working with clients and selling insurance, I really enjoy the claims side and helping clients through problems,” he told Insurance Business.

Source:hellenicshippingnews