And now, from the road shipping side of the supply chain, the overstretch will keep building up as functional corps are targeted by opportunistic groups. Another one that strengthens the pull towards the chain not holding anymore:
The San Francisco-based Arab Resource & Organizing Center (AROC) has announced that the Israeli carrier ZIM decided not to dock its ship at the Port of Oakland after its call to boycott, "amidst a rising tide of actions in solidarity with Palestine."
ZIM was planning to come back to Oakland in mid-May after 2014, when protests had successfully stopped the company's ships from docking in, according to AROC's announcement.
"Upon learning that ZIM was going to attempt to return to Oakland, we called on communities across the Bay Area to get ready to mobilise to the Port of Oakland to Block the Boat again," said AROC and added that "In fear of facing our protest, ZIM decided to avoid Oakland altogether, and is headed down the coast to Los Angeles."
AROC went on to highlight, "We will continue to monitor ZIM’s moves to ensure that it does not return to the Bay Area, and will be ready to act if it does."
Container News has asked for a comment from ZIM on the situation, but the company has not responded yet.
Half of the roughly 20 tropical cyclones expected to form in the western Pacific Ocean through September this year are predicted to hit land in east Asian nations, forecasters said on Friday, making for a season that is busier than usual...
That total exceeds the region’s 30-year average of 13.5 cyclones in the months from April to September, according to the forecast...
A 316-meter-long containership took out two cranes at the Port of Kaohsiung in Taiwan.
The port reported that the OOCL Durban was being moved from another area of the port when it scraped another docked ship, pushing it into a ship-to-shore crane which subsequently collapsed. The OOCL Durban was not carrying any cargo at the time.
A second view of the incident shows workers scrambling for cover as the crane and adjacent cargo stacks collapsed on the pier.
Reporting indicates two workers were trapped inside the wreckage and were later rescued without injury. Another suffered a cut to the arm.
A statement from the Port of Kaohsiung said the OOCL Durban was bound for Pier 66, belonging to Yang Ming, when the incident occurred.
“The ship was booked to berth at Pier 66 of Kaohsiung Port, but when the ship passed through Pier 70, it collided with the bow of the “Yong Hung Ship (Gross Tonnage 32,720)” anchored at Pier 70 slightly damaged, and one of the overhead crane One GC8 bridge crane. After the collapse of the GC8 bridge crane, the adjacent GC6 crane was seriously damaged. A total of 1 collapsed, 1 severely damaged but not collapsed and 30-50 containers were damaged, and 1 GC8 bridge crane was caused,” the port said in a statement (translated in english by Google).
The OOCL Durban later docked at Pier 66 for investigation.
The MV X-Press Pearl has partially sunk off the coast of Sri Lanka during an attempt to tow the vessel to deeper waters, the ship’s operator has confirmed.
Salvors boarded the vessel today and successfully attached a tow wire to the bow of the burned out ship, but efforts to tow it failed. The ship’s aft is now touching the seabed at a depth of 21 meters, X-Press Feeders said in its update.
“As of 1500 Sri Lanka time, the foreward area of the vessel remains afloat with smoke coming out of Cargo Holds No 1 and 2,” the update said.
Efforts to extinguish the fire on board have been ongoing since it was first reported May 20 one day after the X-Press Pearl arrived at an anchorage approximately 9.5 miles off the coast of Colombo with a container leaking nitric acid. While dousing the fire appeared to be successful initially, the fire exploded in intensity last week and all 25 crew members and a salvage team from SMIT were evacuated.
All 25 crew members were eventually evacuated safely, although two suffered injuries but are expected to recover fully. One also tested positive for COVID-19.
Prior to its partial sinking today, all salvage team members were evacuated from the vessel due to safety concerns.
“An inspection team were able to board the vessel on the afternoon of Tuesday, June 1, and reported the engine room flooded. There are now concerns over the amount of water in the hull and its effect on the ship’s stability. Efforts to make a connection for towing failed after several attempts due to the tug’s movement caused by the swell. The operation was aborted for safety reasons,” X-Press Feeders reported today prior the sinking.
The Sri Lankan Navy and Indian coastguard have remained on scene responding to the incident.
The X-Press Pearl was loaded with 1,486 containers, including 25 tons of Nitric Acid and other chemicals which it had loaded at the port of Hazira, India on May 15, the Sri Lankan Navy reported previously. Preliminary investigations indicate the fire started due to a chemical reaction of the hazardous cargo. It also had 297 tonnes of Heavy Fuel Oil and 51 tonnes of Marine Fuel Oil on board.
Before arriving in Sri Lankan waters, X-Press Pearl underwent discharge and loading operations at Hazira Port in India and Hamad Port in Qatar before continuing on its planned journey to Colombo.
“Applications had been made to both ports to offload a container that was leaking nitric acid but the advice given was there were no specialist facilities or expertise immediately available to deal with the leaking acid,” an earlier update said.
Sri Lankan officials fear the sinking of the vessel would impact local fisheries and create an environmental disaster along the shoreline. The government on Wednesday suspended fishing along a 50-mile stretch of the island’s coastline, affecting 5,600 fishing boats, Reuters reported.
Britain could become a net exporter of electricity to Europe as soon as 2026, according to S&P Global Platts.
The U.K. imports about 7% of its electricity from Europe now, but that’s set to reverse, in part due to new cables that will boost links with the continent. With Britain aiming to quadruple offshore wind capacity this decade, it could have excess power to send through those lines.
Power flows to where prices are highest. At the moment this is often Britain, particularly along the two cables from France. But prices are expected to rise in mainland Europe, especially in the biggest market — Germany — as coal, lignite and nuclear plants are closed down, according to Platts. That will alter the economics and flow of electricity.
The U.K. aims to cut greenhouse gas emissions to “net zero” by 2050, and importing supplies of low-carbon electricity from countries like France, Norway and Denmark is part of that plan. Yet with power demand set to double over the period, Britain is also bolstering its own supply, targeting 40 gigawatts from offshore wind by 2030.
The U.K. market is getting “structurally longer, while the whole of western Europe is moving in another direction,” said Sabrina Kernbichler, European power analyst at S&P Global Platts.
New interconnector cables will boost Britain’s links with Europe to 18 gigawatts from 8 gigawatts by 2030. There’s a “medium-term” possibility that the country will become a net exporter, according to Andreas Gandolfo, an analyst at BloombergNEF.
But it won’t last. While wind-power growth in the coming decade will depress prices in the U.K., the increased electrification of energy use will subsequently drive them up, he said.
Planned new interconnectors include:
- 1 gigawatt ElecLink to France due to start in summer 2022
- 1.4 gigawatt North Sea Link with Norway expected to start this year
- 1.4 gigawatt Viking Link with Denmark starting in 2023/2024
- 1.4 gigawatt NeuConnect cable with Germany starting 2023/24
DUBAI, June 2 (Reuters) – Iran’s largest navy ship the Kharg sank on Wednesday after catching fire in the Gulf of Oman, but the crew were safely rescued, Iranian media reported.
No further explanation was given for the latest incident in a region of sensitive waterways, where there have been accusations of attacks on ships owned by arch-enemies Iran and Israel.
State TV said the fire on Iran’s highest-tonnage naval vessel started around 2:25 a.m.on Wednesday (21:55 GMT) near the Iranian port of Jask, where it was on a training mission.
The Gulf of Oman connects to the Strait of Hormuz where about a fifth of the world’s oil passes.
Rescue operations for the Kharg went on for hours, the statement on state TV said, with all the crew disembarking.
“All efforts to save the vessel were unsuccessful and it sank,” the semi-official Fars news agency reported.
In April, Iran said one of its vessels, the Saviz, had been targeted in the Red Sea, after media reports the ship had been attacked with limpet mines.
That came after Israel and Iran had blamed each other for a series of reported attacks on cargo ships since late February.
Iran has refused to recognize Israel since its Islamic Revolution in 1979 that toppled the U.S.-backed Shah. Israel sees Iran’s nuclear program as a threat to its existence.
The shipping incidents have occurred since U.S. President Joe Biden took office in January, pledging to rejoin Iran’s 2015 nuclear containment deal with six world powers – abandoned by his predecessor Donald Trump in a move welcomed by Israel – if Tehran returns to full compliance with the accord. (Writing by Parisa Hafezi; Editing by Andrew Cawthorne)
While UK Club said the Ever Given’s owners and insurers “fully acknowledge that the SCA is entitled to compensation for their legitimate claims arising out of this incident,” it added it was concerned by allegations made against the ship and its master.
“It is important to clarify that whilst the master is ultimately responsible for the vessel, navigation in the Canal transit within a convoy is controlled by the Suez Canal pilots and SCA vessel traffic management services,” it said.
“Such controls include the speed of the transit and the availability of escort tugs.”
The Ever Given’s owners and insurers have disputed the vessel’s detention and the compensation claim, and their lawyers have said the SCA was at fault for allowing the ship to enter the waterway and for not providing suitable tugs.
SCA Chairman Osama Rabie told Reuters last week that the Ever Given was moving at 25 kilometres (15.5 miles) per hour rather than the appropriate 8-9kmph, that it’s rudder was not aligned, and that it could have chosen not to enter the canal.
The U.S. government is set to release its first official estimate of the value of the nation’s marine economy, also known as the “blue economy.”
NOAA and the Commerce Department’s Bureau of Economic Analysis (BEA) are set to unveil the findings next Tuesday. For the statistics, experts considered ten sectors representing businesses dependent on the nation’s oceans, coasts and Great Lakes between the years 2014 and 2019.
BEA is partnering with the National Oceanic and Atmospheric Administration (NOAA) to develop statistics to measure the role of the oceans, seaports, and Great Lakes in the U.S. economy. The “Marine Economy Satellite Account” will estimate the contribution to gross domestic product of activities such as commercial fishing, shipbuilding, transportation, and recreation. The statistics are planned to help businesses make investment and hiring decisions and aid U.S., state, and local policymakers.
NOAA in January released its Blue Economy Strategic Plan for 2021-2025, laying out a roadmap for “new ways to advance the United States’ Blue Economy and enhance a global ocean economy,” which is expected to double in value to $3 trillion over the next decade. The Strategic Plan focuses on five sectors that NOAA will advance through agency-wide initiatives including marine transportation, ocean exploration, seafood competitiveness, tourism and recreation, and coastal resilience.
Thanks for sharing this article. Crazy freight rates and scarce container capacity look to be an ongoing issue for the rest of the year. This is due to port congestion (ie: ports on lockdown in Chiba and India) and container short-fall as carrier skip ports and empty containers aren’t filled. Here are few more articles that touch on this:Thanks for the update. I also spotted this article on ZH a few days ago and was thinking of sharing it here. Yet another omen for the logistical collapse...
The ongoing container disruption in the Port of Yantian, caused by the Covid-19 outbreak, has already blocked a larger number of containers than the number of boxes that were unable to move due to the Suez Canal blockage by Ever Given, according to the container shipping analyst, Lars Jensen.
During the 14 days of Yantian port congestion, the port has been unable to handle approximately 357,000TEU, while Suez Canal blockage was impacting a daily flow of 55,000TEU for six days, which translates to a total of 330,000TEU. Additionally, the impact of the Port of Yantian situation is still ongoing, while there are also significant effects on Nansha and Shekou ports.
Freight rates have soared across all tradelanes and, to meet market demand, carriers have been desperate to charter extra tonnage, driving daily hire rates to high levels and obliging carriers to accept shipowners’ demands, including long-term deals of three, four or five years.
Mai noted, "The problem is not insufficient supply, but the poor circulation of containers. There are two main reasons: one is that the world's 20 busiest ports are currently in "traffic jams", with ships queuing, and empty containers cannot be shipped back; the other is that new Covid-19 outbreaks have caused many countries and regions to suspend economic and industrial activities."
https://theloadstar.com/calm-before...t-for-new-surge-as-carriers-prepare-new-gris/“The rates are too high,” he added. “We are now seeing shippers cancel orders because the freight rates cancel out their margins, and the whole situation has become really worrying, because I think this will lead to business failures and a lot of pain for the general economy down the road.”
The extreme consolidation within the container liner sector is the kind of thing owners of tankers and bulk carriers can only dream of. The latest data from Alphaliner highlights the extent of liner consolidation, how soon the rankings will change, and how newbuilding orders will render the carrier arena even more concentrated than it already is.
The top 10 carriers now operate 85% of global shipping capacity. Four groups — Maersk, MSC, CMA CGM and COSCO — control more than half of capacity (58%). The top seven, including Hapag-Lloyd, ONE and Evergreen, control 78%.
This base level of fleet concentration is then greatly enhanced by the existence of three vessel-sharing alliances on the mainline East-West trades — 2M, the Ocean Alliance and THE Alliance — which count nine of the top 10 liner groups as members.
Big moves by MSC
The big mover at the top end of the liner rankings is MSC.
The Switzerland-based carrier has been extremely active in the secondhand market, purchasing 49 vessels since August. It has also been busy in the charter market and very active in the newbuild market.
Including three secondhand ships it recently acquired, MSC just passed the 4 million-TEU (twenty-foot-equivalent unit) fleet milestone. Alphaliner noted that MSC’s fleet has increased 4% from the beginning of this year alone.
Including newbuilds on order, MSC effectively surpassed Maersk months ago to become the world’s largest carrier. Even in terms of ships on the water, it will take the crown soon. “The takeover could even happen before the end of the year, as MSC is to take delivery of four more 23,656-TEU ‘megamax’ newbuildings in the coming months,” said Alphaliner.
Newbuildings to hike carriers’ shares
When all newbuildings on order are delivered, MSC will pull far ahead of the pack.
Although the sum of on-the-water tonnage and newbuild tonnage is not equivalent to future capacity (because there can be more orders in the interim, and ships can go on and off charter, be bought, sold, or scrapped), it does provide an indicator of future rankings.
Maersk has the least on order of all the larger liner companies, with newbuild capacity of just 0.9% of on-the-water capacity. In sharp contrast, MSC’s orderbook is 18% of its operating fleet, according to Alphaliner data. The combined tonnage of existing ships and newbuilds for MSC is 4,742,400 TEUs, 14% and 34% above the same calculation for Maersk and CMA CGM, respectively.
Beyond the “who has the biggest fleet” contest between Maersk and MSC, the broader and more important story is that the world’s top few carriers will be the overwhelming recipients of the new tonnage arriving in 2023-24 that was ordered starting in Q4 2020.
Among the other top players, the orderbook-to-fleet ratio of Wan Hai is 56%, Evergreen 50%, ZIM 37%, CMA CGM and Yang Ming 18%, ONE 17%, and COSCO 9%. These percentages will increase further as newbuilds ordered by non-operating owners are identified with their charterers over time.
A portion of this new capacity is replacement tonnage for older vessels, yet the newbuilding data implies that the top 10 liners’ capacity control will climb from its current 85% level in the direction of the 90s.