Mega-container arrivals will benefit California ports In an interview, Jock O’Connell, Beacon Economics’ international trade advisor, told AJOT that the growing number of mega-container ships that are being delivered to ocean container carriers in 2017 and beyond are bound to benefit West Coast ports, including Long Beach, Los Angeles and Oakland, because “there are no ports on the East Coast and Gulf, at present, that can handle ships of this size.”
Despite the fact that California ports have lost market share to ports such as Houston, New Orleans, Charleston and Savannah, “this is partly a function of the increased location of manufacturing in Southern States by global manufacturers. In the long-term, container volumes are going to continue to rise at California ports, especially with the arrival of the mega-container ships.”
Another contributing factor is the expanded Panama Canal that is encouraging larger ship sailings to U.S. Gulf and East Coast ports. However, the Panama Canal does not have the capacity to handle container ships over 14,000 TEUs.
Houston, O’Connell noted, has seen a major increase in container volumes as a result of increased manufacturing and the Panama Canal widening.
Nevertheless, O’Connell emphasizes that “ports are at the mercy of the ocean carriers,” and “as these ocean carriers have to utilize more of the 18,000+ TEU container ships that they have been ordering, then more and more of these ships are going to find themselves on the Asia to West Coast trade.”
This view is shared by Alphaliner’s Tan Hua Joo speaking at this year’s Trans Pacific Maritime (TPM) conference in Long Beach. Tan said that a flood of new 18000+ container ships are being delivered in 2017 and 2018 and that this will flood the international container market with new excess capacity.
The response by ocean carriers will be to continue scrapping smaller vessels to accommodate the larger ones…
April 24, 2017 by American Journal of Transportation
Ibna Zaman of Royston Diesel Power, the UK -based developer of the enginei fuel management system, highlights the growing operational advantages provided by the effective analysis of intelligent data in the marine sector – if certain challenges can be successfully overcome.
With the impending introduction of the EU MRV Regulations forcing shipping operators to think more seriously about monitoring, reporting and verifying fuel and emissions performance, new data driven improvements have the potential to transform the sector.
As its name implies, big data brings together huge volumes of information from a variety of sources and in different forms – often at high speeds. This data transformation has been made possible by the growing application and development of advanced sensor technology that enables large volumes of engine, fuel, traffic, cargo, weather and other data to be generated and collected on board a vessel.
For example, whilst manual data collection is already playing its part in effective fuel management and enhancing emissions control, data based systems have the potential to considerably improve other areas of vessel optimisation, asset utilisation and overall performance.
Here are ten application areas, some of which are already firmly on the radar, which will be fundamental to a future data-driven marine sector.
• Remote sensing: Ships will be monitored continuously from remote locations. The real-time sensor data will be collected as a database and be distributed to the interested parties giving them up-to-date information on what is happening onboard.
• Voyage planning: Ship operators or charters can implement voyage planning after analysing route, vessel performance and meteorological data. Data analytics will help to identify the most efficient route for the journey, accurately estimate arrival time and allow alternative routes to be identified to avoid any potential delays or disturbances.
• Intelligent traffic management: Port authorities have access to the ship data for safety. Intelligent traffic management systems linking ship position, cargo and personnel information will be transferred to the port for advance planning by the port authorities in terms of monitoring potential congestion and improving cargo handling performance.
• Operational predictability: Vessel operational performance can be monitored in real-time by analysing ship performance data. Ship operators will gain the capability to predict future vessel performance against certain criteria to help in making decisions on maintenance needs.
• Energy management: Battery operated vessels have already been introduced and shipping will continue to move towards flexible and alternative energy systems. Energy production, storage and re-use will become part of the energy management system which will be operated in response to real-time data of load requirements and power availability from all sources. The system will distribute and balance ship and shore power.
• Environmental legislation monitoring: Ship operators need to comply with environmental legislation including the requirement to switch fuel in emission controlled areas. New data-oriented regulations are coming in to force in the EU to monitor CO2 emissions and the system will give an indication of fuel switching as well as monitoring emissions. By analysing historic emissions data, operators will be able to set the KPIs for individual vessels.
• Vessel safety and security: The use of wireless sensors and extensive satellite communication systems can increase vessel safety. Sensor data analytics will provide information on vessel maneuvering to avoid collision. The inbuilt sensors on machinery will provide real-time information about their current condition; information that will be useful for crew safety.
• Condition monitoring and predictive maintenance: The condition and performance of engines, parts and components will be improved by analysing asset data that is recorded during operation. Sensors help to monitor the machinery and give early warning of the need for maintenance to avoid the potential failure of engine components. This will reduce the cost of asset failures and minimise unscheduled downtime.
• Performance monitoring and optimisation: Automation expands the capability of the control of machinery and vessel optimisation. A range of data measurements are required for monitoring and optimising vessel performance and access to historical data is essential for optimising and forecasting.
• Automatic mode detection: This capability detects the vessel’s operational mode automatically based on the analysis of real time fuel consumption data alongside distance travelled. Automode systems function without human intervention and will provide a summary report of fuel consumption for the individual engines, ship running hours and emissions in different modes. Onboard and onshore staff would be able to use this information to measure the vessel operational performance and KPIs.
A data-driven maritime future
Although applications such as those listed highlight the potential for big data to bring considerable operational advantages as part of a ‘smart ships’ future, harnessing and analysing this information with effective systems engineering programmes still faces a number of challenges.
In particular, there are some fundamental data related issues that will need to be overcome if marine big data implementation is to fully deliver the benefits it is capable of.
• Data transfer: Ships typically have a very large number of sensors onboard. Every sensor requires a specific communications bandwidth, so it is important to have appropriate data communication capacity for the individual sensor to transmit the information to the database. The data transfer speed may be accelerated with the help of high-tech communication systems.
• Cybersecurity: This is a burning issue for any IT system. The onboard and onshore data network will need to be protected from external interventions such as piracy, viruses or terrorist attacks.
• Data quality: Low-quality data would lead to errors in interpretation and in some cases a database may not be able to keep track of all new entries.
• Data integration: Current data collection systems in the marine industry are inconsistent and often unreliable making it more difficult for data from different sources to be properly integrated for analysis.
• Data ownership: Ownership allows access to the data to read, create, update and delete entries in databases as well as allow traceability through the data lifecycle. The shipping industry has a complex supply chain, with many stakeholders including ship owners, operators, customers, port authorities, and Classification Societies. Ship operators will have access to the full set of machine data and Classification Societies will get access to data for safety or classification purposes. Port state authorities will require access to cargo and personnel information. Ownership of data is crucial, but with the scope and complexity of data increasing it will become more challenging for ship operators to distribute data ownership and associated levels of authority in the future.
• Data protection: Linked to the above, data will need to move between individual parties because of different interests. Sensitive data will probably need to be shared externally making security and privacy priorities for data protection and to maintain the data quality.
• Adoption and standards management: The industry has to look forward, improved analytics will enable a better understanding of the hidden features and benefits of using the data it has available. However, as part of this approach the shipping industry will need to create an environment of improved and consistent awareness across the various stakeholders to adopt new technologies, tools and processes and also to regulate standards.
• The human factor: It will become more important to increase the connectivity between the crew and shore staff in shipping companies. In the future, the data transfer between a ship and shore and from shore to ship will increase the drive towards optimal operational efficiency and safety. Ship and shore personnel will be required to undertake additional training to provide support for this.
It is clear that the shipping industry faces ever more rigorous environmental, safety and economic performance demands. In response, big data is already helping the sector to make significant improvements but there are still a number of challenges to be overcome if it is to be utilised to maximum effect.
April 21, 2017 by Maritime Journal
Dubai Ports World Co and MSC Mediterranean Shipping Co SA are seizing on Brazil's three-year-long recession and rising debt levels among local port operators to bid for marine terminals in one of the world's top commodity exporters.
But their plan will not come cheap. Half of the 12 terminal and port sales negotiated in Brazil since January 2016 came at a premium to other similar deals in the region. Now people familiar with three of the six ongoing port deals in Brazil are expecting potential sellers to fetch premiums of 20 percent or more for their maritime terminal and port assets.
Ports have gained extra allure in the wake of government steps to privatize infrastructure in Latin America's largest economy, even if global maritime activity remains tepid. Brazil has about 37 state-owned ports and 180 privately-held marine terminals. Foreign players perceive Brazilian port operators as less prone to facing roadblocks than other infrastructure segments, said Eleven Financial Research chief strategist Adeodato Volpi Netto. A record grain crop and a gradual economic recovery should keep ports and terminals busy, potentially accelerating M&A activity before valuations climb further. The value of port acquisitions in the Americas averaged 8.9 times expected earnings before interest, tax, depreciation and amortization (EBITDA) in the first quarter, data compiled by Thomson Reuters showed.
"Timing seems right for these deals as interest from global players in Brazil's port industry keeps growing," Volpi said. MSC is offering partner TPI Triunfo Participações & Investimentos SA the equivalent of 12 times expected EBITDA for a 50-percent stake in the PortoNave terminal and a nearby cold storage unit, three people familiar with the talks said. After ending talks to buy Advent International Corp's 50 percent in TCP Terminal de Contêineres de Paranagua SA due to price issues, DPWorld is close to buying out partner Odebrecht SA's 66-percent stake in the Embraport terminal at similar multiples, the people said.
The deal has taken longer to close because of Odebrecht's involvement in a Brazil graft scandal, they said. Valuations remain resilient even for mature value plays like TCP. According to the people, China Merchants Group Ltd would be willing to pay slightly more than 13 times expected 2017 EBITDA for Advent's stake in TCP, valuing it at 3.5 billion reais ($1.1 billion), the people said.
MSC, Advent, Triunfo, Odebrecht, China Merchants, DPWorld and Odebrecht all had no immediate comment.
More targets seen
The sources spoke under the condition of anonymity, citing confidentiality accords surrounding the deals. Porto Itapoá and liquid bulk terminal AGEO Terminais e Armazéns Gerais SA are among potential targets, the people said. Brazil's D'Avila family is also considering selling Terminal Portuario de Itajai SA, or Teporti, one person said. AGEO's owner Cynara Ruiz hired Banco Santander Brasil SA and Banco Bradesco SA to look for buyers, two people said. Battistella Administração & Participações SA and BRZ Investimentos SA-led funds are on the way to hire financial advisers to sell Itapoá, one person said. AGEO, Itapoá, Teporti and the banks did not have any comment. Brazil's port industry is undergoing deep changes, with returns seen declining as shipping firms gain in scale through M&A.
Maersk Line, the world's No. 1 shipping company, last December announced plans to buy smaller rival Hamburg Sud, which may put pressure on rates, the sources said. Competition has especially increased in the Santos port, Latin America's largest, hampering profits for container players. New terminals began to operate in the Santos port in 2014, when the economy slumped into recession – leading to a supply glut that only worsened as demand declined. Reuters reported on Monday that the Brazilian government has changed plans and is considering selling rights to operate the port of Vitoria as part of the ongoing infrastructure privatization plan.
April 20, 2017 By Reuters
The loading of iron ore at Brazil's Itaguaí terminal operated by mining and steel firm Companhia Siderúrgica Nacional has been halted since Saturday due to an accident, sources and the Itaguaí Port Authority told Reuters on Wednesday.
Four to five Capesize bulk carriers that were waiting to load iron ore at the terminal are being put back into the charter market, said a German shipping source, due to the impossibility to load the product in Brazil. CSN confirmed the accident but had no immediate information regarding Itaguaí operations.
CSN, through its subsidiary CSN Mineração, is Brazil's second largest iron ore exporter after Vale SA and it produced 27.9 million tonnes of ore in 2015. The numbers for 2016 have not been released. CSN did not give details of the accident or how it shut down loading operations but a company spokesman said two workers were hurt, although not seriously. He was not able to say when the terminal would resume operations.
The Itaguaí terminal, located near Rio de Janeiro, has a capacity to ship up to 42 million tonnes of iron ore per year. Data from Thomson Reuters shows there is a ship from Tata Steel waiting to finish loading in the terminal with a destination of the United Kingdom. Another ship from JFE Steel is waiting since Thursday to berth in the terminal and load ore destined for Japan.
April, 19 By Reuters
South Korean shipbuilding company Samsung Heavy Industries (SHI) has won an order for an LNG carrier duo, according to a report from the country's news agency Yonhap.
As informed, the order has been placed by the yard's compatriot shipping company Korea Line Corp. for two 7,500 cubic meters LNG carriers.
Under the terms of the deal, the value of which is yet to be disclosed, the ships are slated for delivery by the end of 2019 and are intended to transport liquefied natural gas between local ports.
The order comes amid stabilization in the shipbuilding industry that has helped SHI cut its operating loss by around 90 percent in 2016. The shipbuilder also reduced its net loss by KRW 1 billion, which represents an improvement of 88.5 percent.
At the end of 2016 the conglomerate's net loss stood at KRW 138.8 million, against a net loss of KRW 1.2 billion booked in 2015.
Due to anticipated recovery of the shipbuilding industry during 2017, the shipbuilder decided to raise its orderbook goal to USD 6 billion, from last year's USD 5.3 billion target, after winning a major order to build a large offshore platform at the beginning of the year worth USD 1.3 billion. The turnaround is in particular expected in the LNG carrier sector and FSRUs, according to SHI, with up to 30 LNGC orders forecast to be placed on annual basis from 2017.
The shipbuilder had a good start of 2017 reporting a total new order amount of USD 1.5 billion. SHI's order backlogs as of March 31, 2017 on delivery basis totals in USD 26.5 billion, the company's data show. These are dominated by tankers, 34 of them, followed by 15 LNG carriers and 10 drilling rigs, among other units.
April 19, 2017 by World Maritime News
The port of Antwerp handled 54,324,303 tonnes of freight during the first three months of this year, 1.5% more than in the same period last year. The further growth is mainly due to container freight, which was up by 2% in terms of tonnage. In fact this has been the best first quarter ever, both for total overseas freight and for containers. And on top of all that the previous month was the best for containers that has ever been recorded in the port of Antwerp.
All this means that after the record year of 2016 the port of Antwerp is off to a good start. "The Port Authority is very satisfied with these growth figures," declared CEO Jacques Vandermeiren. "Since the first half of last year experienced better performance than the second half, it is important to see the volumes continuing to steadily increase in the container segment. This positive trend confirms the demand for additional container capacity in the Antwerp port area," he concluded.
Containers and breakbulk
The container volume was up 2% during the first quarter, finishing at 29,750,925 tonnes. This corresponds to 2,480,932 TEU, an increase of 0.7%.
Ro/ro for its part experienced remarkable progress, up 5.3% to 1,219,314 tonnes. The number of cars handled was up 2.8% to 316,988. Conventional breakbulk too continued to expand in comparison with the same period last year. At the end of March the volume stood at 2,583,590 tonnes, an increase of 8.3%. Just as in 2016, this good performance was largely due to the steel volumes handled (up 14.7% to 2,093,071 tonnes). Protectionist measures have not resulted in lower volumes, only a shift in the steel trade from one port to another.
The volume of liquid bulk handled during the first three months experienced a slight decline, down 1.2% to 17,624,478 tonnes. This was mainly due to oil derivatives which fell by 4.2%. On the import side specifically there was a sharp drop as a result of fluctuations in the trading activities.
The volume of dry bulk stood at 3,145,995 tonnes at the end of the quarter, representing impressive growth of 6.7% compared with the same period last year, due mainly to higher imports of ore and coal.
A total of 3,505 seagoing ships called at the port of Antwerp during the first quarter, a drop of 0.8%. On the other hand the gross tonnage of all these ships was up by 3.3% to 99,701,892 GT.
April 19,2017 by Port of Antwerp
Siemens has announced plans to set up its global logistics headquarters, including its portfolio for airports, cargo infrastructure and ports, in Dubai in the near future. The company will also target the site of Expo 2020 Dubai as the future location for this business after the exposition ends.
The move supports the legacy aspirations of Expo 2020 Dubai, as well as the industrial and logistics developments in the emirate. Siemens sees great growth potential in the Middle East region and in the logistics market globally. The company expects this development to support its Vision 2020 and related logistics businesses, creating new growth opportunities globally.
“This strategic decision highlights Dubai’s significance as a major player in global transport and logistics, with some of the world’s biggest airlines and ports operating in and around the emirate. Siemens wants to further expand its operations in order to be close to key customers and markets,” Roland Busch, Siemens’ Managing Board member and Chief Technology Officer, said in a statement on Wednesday.
The global logistics market is growing at a compounded annual growth rate (CAGR) of 7.5 per cent, according to Transparency Market Research. In a recent report, Frost & Sullivan estimated the UAE’s logistics sector will grow at a CAGR of 5.7 per cent between 2015 and 2020.
“We are committed to contributing to Dubai’s economic development goals with the latest innovations in technology. By using digitalisation and leveraging MindSphere, our open, cloud-based IoT operating system, we support growth and boost efficiencies in logistics,” Busch said.
April 12, 2017 by Gulf News
South Korea's Hyundai Merchant Marine (HMM) has signed a letter of intent (LOI) with Daewoo Shipbuilding & Marine Engineering (DSME) for the construction of five 300,000 dwt very large crude carriers (VLCCs) with an option of five more vessels.
HMM has formed a 'newbuilding examination committee' at the end of last year, and has thoroughly reviewed all the conditions for newbuilding including demand, type, and number of vessels, market trend, and investment feasibility, the company said in a press release on Monday.
Chang-keun Yoo, CEO of HMM commented, "We currently operate twelve VLCCs which have been foundational to stable profits and enhancing sales competitiveness. We thought this year is the right time to order new VLCCs at historically low newbuilding price."
"HMM's fleet competitiveness in the medium and long run will be further strengthened through the New Shipbuilding Program," Yoo added.
A final agreement for the vessels is expected to be concluded by the end of July. HMM said it is also discuss about LNG carrier engine & Eco-friendly technology. "This newbuilding deal is the first case of using New Shipbuilding Program with a pot of KRW 2.6 trillion ($2.28 billion), which Korean government announced on last October to support the shipping industry," HMM said in its press release. In addition to the VLCCs, HMM says it also plans to order small to medium sized containerships.
April 10, 2017 by gCaptain
Damen Shipyards Group has entered into an agreement with Keppel Offshore & Marine for the acquisition of the Keppel Verolme shipyard in Rotterdam.
With the acquisition of the Verolme shipyard, Damen continues to strengthen its repair and conversion activities within the regional ship repair and conversion market.
The Verolme yard has been active in the Botlek area of the Port of Rotterdam since 1957, and the yard now comprises three graving docks, a quay capacity of over 1,800 meters, and approximately 250 employees. The acquisition of the yard will boost Damen’s dry dock capacity with the addition of the Verolme yard’s largest dry dock, which measures 90 by 405. The dry dock will be Damen’s largest in the Netherlands.
Damen says it intends to continue to operate the Verolme yard with its current workforce. “With the Verolme yard, Damen will have four large repair yards within close proximity of the Port of Rotterdam. The two yards in Rotterdam, along with Damen’s yards in Vlissingen and Amsterdam, will closely cooperate to maximise the use of each other’s expertise, further developing synergy advantages and jointly marketing their capacity, with the objective to offer more efficient and competitive services,” Damen said in a press release.
The transaction is scheduled to close by the end of the second quarter 2017 and is still subject to approval.
April 11, 2017 by gCaptain
Brazilian container terminal operator Tecon Rio Grande (TRG) is currently installing $40million worth of new quay and patio equipment so it can deal with growing container volumes, part of which has been generated by a new feeder service from the Porto Alegre conurbation.