Bulker Departing Ukraine Collides with Russian Cargo Ship off Bulgaria

A Russian cargo ship and a dry bulk carrier collided off the coast of Bulgaria on November 8 and while no one was injured the circumstances of the incident remain unclear. The bulker continued on course to Turkey, while the Russian vessel returned to port reporting that it had taken on water in its ballast tanks.

The Ukrainian Energy Ministry reported the incident on its Telegram account and observers quickly noted that the Russian vessel was not following its normal course. It is unclear why the vessel was traveling north of its normal route between Varna, Bulgaria and the Russian Caucasus region.

The Slavyanin is a Ro/Ro cargo ship operating between Varna, Bulgaria and the Kavkaz area of Russia located between the Black Sea and the Sea of Azov. Registered in the Russian Federation, the vessel was built in 1984 and has been running for at least a decade on this route. She is approximately 492 feet in length and 6,580 dwt and is used to transport rail tankers loaded with LNG.

 

Damage reportedly from the collision is visible at the rail 

 

The Russian ship had departed Varna on November 7 and the collision happened about 80 nautical miles to the northeast near the Bulgarian Cape Shabla, which would be north of her normal route. The incident was reported to have happened early on November 8 and the Slavyanin returned to Varna later the same day. Reports are that three of the ship’s ballast tanks had flooded due to a hole in the hull and photos show a small deformation at the rail level as well. The flooding did not reach the engine room and there were no reports of a release of oil.

The other vessel was a Palau-registered bulker, New Rouf, a 6,000 dwt dry bulk carrier. She had departed Izmail, Ukraine, and was bound for Turkey and then on to Egypt. She appears to have continued and arrived at the Istanbul anchorage yesterday, November 9. The vessel is managed out of Romania.

Media reports from Romania are saying the Turkish authorities were asked to investigate the incident when the ship reached its anchorage.

Brunswick, Georgia on Track to be Top U.S. Ro-Ro Port

The Georgia Ports Authority highlights the strong growth in Ro-Ro traffic at the port of Brunswick, Gerogia as it works to realize the opportunities due to the strong growth in the automotive sector. Through their investments in infrastructure, they look to make Brunswick the top U.S. auto and Ro-Ro port.

Reviewing the state of the ports, GPA President and CEO Griff Lynch highlighted volumes that are already expanding at a strong rate in fiscal 2023 and which they expect to accelerate based on the strength of the automotive sector. In fiscal year 2023, the Colonel’s Island Terminal in Brunswick grew Ro-Ro volumes by 18 percent, to more than 705,000 units of autos and heavy machinery, moving both into and out of the port. This included 610 vessel calls, an increase of 11 percent, with 495 of those specifically at the Colonel’s Island terminal in Brunswick. They also handled approximately 18,500 units in Savannah during the year, volume that will be shifting to Brunswick as it becomes the sole Ro-Ro port and Savannah focuses on containers.

The GPA reported that three-quarters of the volume was imports which facilities, such as areas for pre-delivery inspections, set up specifically to support the import trade. The port also features a new fumigation facility onsite which is the largest facility of its size for autos and machinery. They note this is critical for exports as Australia and New Zealand are requiring fumigation for their imports.

As demand has grown in the automotive sector, and specifically with more manufacturing and OEMs moving production to Mexico, they highlight Georgia is supporting the industry with two services. CMA CGM started a new short-sea service carrying vehicles from Mexico to Brunswick in July and the Gold Star shipping line is starting a similar service this month.

This has helped volume in Brunswick, which was already growing at a strong pace, to see a sharp increase in September.  The Colonel’s Island Terminal handled 70,645 Ro-Ro units. Up 61 percent year-over-year.

“The automotive sector has been especially strong and consumer demand is driving this trend,” notes Lynch. “To accommodate anticipated market demand, GPA has initiated an aggressive infrastructure plan, strengthening Colonel’s Island for auto and machinery processing.”

The terminal currently is composed of 1,700 acres with four on-site auto processors while they highlight there are 264 acres of additional space available. Construction was recently completed on 350,000 square feet of near-dock warehousing that serves auto and machinery processing on the north side of Colonel’s Island Terminal. Three additional buildings representing 290,000 square feet and 122 acres of Roll-on/Roll-off cargo storage space are under construction on the south side of the island.

GPA has also won Federal approval for a fourth Ro-Ro berth at Colonel’s Island, to enable more vessel calls. Currently, in the engineering phase, this project will more efficiently accommodate vessels that can carry up to 7,000 vehicles. Other planned improvements include widening the channel and expanding the turning basin at Colonel’s Island to more efficiently handle large vessels as well as increasing rail capacity.

“Our investments in infrastructure capacity are well-timed to support the growing business in our Brunswick gateway,” concludes Lynch. The GPA is confident that with these steps Brunswick is on track to be the top U.S. Ro-Ro port.

Swedish Ports Will Blockade Tesla Vehicles in Support of Labor Strike

The Swedish Transport Workers Union (Svenska Transportarbetareförbundet) is threatening to stop handling Tesla’s electrical vehicles arriving at the country’s four major ports. The union has filed a notice of support for Sweden’s Industrifacket Metall a trade union that went on strike last week against Tesla.

IF Metall is one of the largest trade unions in Sweden with reports of over 240,000 members working in a broad range of industries. Covering everything from building materials to mining and the auto industry and auto repair shops, the union is striking for a collective bargaining agreement with Tesla. As many as 90 percent of Sweden’s workers are covered by collective bargaining agreements.

The current strike is over the ability of the union to negotiate for members on issues from wages to pensions and insurance. IF Metall’s contract secretary Veli-Pekka Säikkälä said a strike is an unusual step but the union says Tesla Sweden has made clear its position that it is not relevant to sign a collective agreement. The walkout began on October 27 and IF Metall has served notice that it plans to expand the strike starting today, November 3, to cover Tesla’s authorized repair shops.

As part of the effort, IF Metall also put out a call for support efforts by other unions and now the Transport Workers served notice that they will begin to honor strike as of November 7. They announced that they will no longer handle shipments of Tesla cars and parts arriving at the ports of Malmö (Copenhagen Malmö Port AB), Södertälje (Södertälje Hamn AB), Gothenburg (Logent Ports & Terminal AB Gothenburg), and Trelleborg (Trelleborg Hamn AB).

The Transport Workers are saying they will stand with the union and not handle Tesla until it signs a collective agreement with IF Metall. Talks have resumed with Tesla but so far are not showing any signs of an agreement.

The Tesla Model Y is reported by Clean Technica to be the overall bestseller in Sweden. In September, they calculated from registrations that 3,050 Model Y cars were sold nearing the record of 3,202 cars in March 2023. The Tesla Model Y is reported to have sold nearly three times as many cars in Sweden in September as its nearest rival the Volkswagen ID.4. Year-to-date 13,457 Model Y have been registered with Clean Technica highlighting, “That means almost one in every 15 cars sold this year is a Tesla Model Y!”

Based on registration data, electric vehicles account for two-thirds of all cars now sold in Sweden up from just over 55 percent a year ago. In September, fully electric vehicles accounted for 40 percent of the new registrations while plug-in hybrids were a further 20 percent, equal to the percent of gasoline-powered cars registered in the month.

Tommy Wreeth, Transport’s union chairman said “In Sweden and in the Swedish labor market, we have collective agreements. Transport will always stand up for that. Tesla employees must of course also be covered by safe and decent conditions.”

Transport promises a blockade against all loading and unloading of Tesla cars in the four ports until the company reaches an agreement with its workers.

EU Unveils Roadmap for Port Infrastructure Support to Namibia

Almost a year after the EU and Namibia signed an MoU on developing supply chains for rare earth metals and green hydrogen, the two partners have announced the next steps with concrete actions to advance their energy transition partnership.

On the sidelines of the EU- Namibia Business Forum held this week in Brussels, European Commission President Ursula von der Leyen endorsed a 2023-2025 roadmap, which will act as a guide in supporting Namibia’s fledgling renewable energy industry.

During the period, the EU will make an investment of over one billion euros and support an upcoming study for the development of the Port of Walvis Bay into an industrial and logistics hub. In an interview back in August, Namibian Ports Authority (Namport) CEO Andrew Kanime projected that the port expansion works in the country needed around $2.1 billion to reach the desired capacity for energy exports. Walvis Bay would take up much of the expansion efforts.

In addition, the EU will also work with the Port of Antwerp and Bruges International to develop a master plan, which covers multimodal infrastructure, spatial planning and market organization for the Port of Walvis Bay. A key feature of this deal is the development of the Walvis Bay-Maputo Corridor, a coast-to-coast corridor linking the Atlantic to the Western Indian Ocean. The route is critical in serving the Southern-Central Africa copper belt. With copper increasingly in high demand from renewable energy industries, efficiency in shipment of the metal is now a matter of great interest.

The Dutch government has also commissioned a feasibility study for the expansion of the Lüderitz port, located 250 nautical miles south of the Port of Walvis Bay.

“The EU needs to secure a sustainable supply of raw materials, especially those critical in delivering the green and clean energy objectives. As part of the Action Plan on Critical Raw Materials, the Commission is already building partnerships with resource-rich third countries,” said EC in a statement.

In June, Namibia banned export of unprocessed lithium and rare earth metals. Industry stakeholders have pointed out that such a directive would be beneficial if Namibia had the necessary industrial and logistical capacity.

In a meeting for mining executives this week in Namibia, Joe Walsh, the managing director of lithium processing company Lepidico said his firm will be processing battery-grade lithium at its plant to be built in Abu Dhabi, ostensibly because of the city’s proximity to industrial and logistics hub. Lepidico has an ongoing lithium mining project in the Karibib region of Namibia.

“Abu Dhabi offers immediate logistical efficiencies, an established industrial park with available shared infrastructure. This is a very good example of efficient and effective infrastructure that would be a huge benefit if it was installed, say, at Walvis Bay in Namibia,” Walsh elaborated.

Indeed, the EU-Namibia partnership is essential in developing the large-scale infrastructure projects needed to support local metals processing and export. In return, Namibia is poised to supply the EU bloc with green hydrogen and minerals needed for clean energy technologies.

Delays Grow at Australia’s Ports as MUA Expands Job Action Against DP World

Dockworkers at one of Australia’s busiest container terminals launched a 24-hour work ban on Friday while announcing plans to step up their work bans next week at each of the country’s major ports. The strikes are part of an ongoing labor dispute between the Maritime Union of Australia and terminal operator DP World that minors similar actions that have interrupted port operations in other parts of the world.

The unifying issue that has hit ports around the world and now is at play in the dispute in Australia is wages for the dockworkers that reflect their efforts during the pandemic when they kept global supply chains flowing. The Maritime Union of Australia specifically is calling for a better than seven percent wage increase, while lower than other parts of the world, is still designed to respond to Australia’s inflation rate. It is also similar to the increases awarded to workers earlier this year at Patrick Terminals another of Australia’s largest operators.

In addition to the issue of wages, the MUA like other unions is focused on scheduling and what they call work-life balance. They contend that DP World is proposing work schedule rule changes, and adjustments to the scheduling system, that would result in pay cuts of nearly a third for dockworkers. DP World says the changes are needed to provide greater flexibility and the ability to respond to the needs of carriers.

Friday’s work ban was aimed at Port Botany located in Sydney, Australia’s busiest container port. It handles approximately three million TEUs each year. The port has 12 container vessel berths split between terminal operators DP World, Patrick Terminals, and Hutchison Ports. Workers are refusing for 24 hours to load and unload trucks and trains at DP World’s facilities.

The labor unrest has been ongoing all month. It included a 48-hour weekend full stoppage in Fremantle and a 44-hour stoppage in Melbourne, both at the beginning of the month. Two Fridays ago, there was also a stoppage at Port Botany. Between October 30 and November 6, the MUA is reporting that work bans will be in effect for overtime, shift extensions, and other jobs at DP World’s terminals in Sydney, Melbourne, Fremantle, and Brisbane. Next Monday they also plan to stop work for 24 hours in Sydney, as well as a ban on loading and unloading on Friday, November 3 at all the ports and sporadic work stoppages ranging from one to two hours at some of the ports during the week.

Both sides are accusing the other of not negotiating in good faith, with DP World calling on the union to stop the job actions as a condition for resuming talks. The MUA says the actions will continue until DP World resumes negotiations. Supported by the Australia Council of Trade Unions, the MUA is calling for good faith bargaining, a fair wage outcome, work schedules, and scheduling systems that provide certainty, mitigate fatigue, and maintain the work-life balance.

DP World is warning customers that offloading that normally take up to two days can now take up to seven to eight days due to the union having “unleashed delays and disruptions across Australia.” The company in its public statements forecast the actions coming at this time of the year would create an “unsettling impact on the upcoming holiday preparations” for many Australian households.

The union highlights that the membership supported starting the job actions after six months of unproductive discussions with DP World. It is the latest in a series of protected disputes that have impacted port operations in Australia. The union took similar actions against Patrick Terminals and was locked in a multi-year struggle with Svitzer Australia over tug operations that finally ended earlier this year.

SoCal Ports Rebuild Market Share on Strength of Consumer Spending

Southern California’s ports are continuing to build back their volumes from the low point of early 2023 while reporting that they expect the increases to continue into the end of the year based on the strength of the American consumer. Both Los Angeles and Long Beach are beginning to string together a series of months of gains year-over-year with improvements coming in both imports and exports.

Despite holidays in Asia and the carriers’ continued use of blank sailings to manage capacity both ports called September a good month, while Long Beach was also able to achieve its busiest September on record. At the end of nine months, both ports’ volume year-to-date however remains down in the range of 20 percent versus 2022.

At Long Beach with over 829,000 TEU moving through the port, it was the third consecutive month of gains as well as the highest monthly total since June 2022. Citing the strength of consumer spending and the new labor contract, they reported a nearly 12 percent year-over-year increase as well as the port’s first monthly year-over-year cargo increase in 14 months. Long Beach’s strength was driven by a better than 19 percent increase in import volumes while exports were down by more than 10 percent.

The neighboring Port of Los Angeles however showed the unusual separation of the two neighboring ports as it experienced an expected nearly 10 percent decline in month-over-month volumes. Los Angeles however was still able to post a five percent gain over 2022 and its second consecutive month of year-over-year gains.

Imports came back strongly for Los Angeles versus 2022 up 14 percent, which the port highlights as the biggest year-over-year gain increase in over two years. Exports were also up for the fourth consecutive month and the fifth month over 100,000 TEUs. Driven by strong increases in exports of recyclables, animal feed, and vehicle parts, the Port of Los Angeles handled 55 percent more exports than a year earlier.  They also pointed out that declines in empty volumes were making it easier for American exporters to ship their goods out of the port.

While saying that they expected the muted peak season to continue, both ports are projecting improvements through the last quarter of 2023. “We look forward to a moderate rebound in cargo volume through the end of the year,” said Port of Long Beach CEO Mario Cordero.

The Port of Los Angeles expects flat volumes for October but increases in both November and December. While they are down 19 percent through nine months, Gene Seroka, Executive Director for the Port of Los Angeles, forecasts they will end the year down 13 percent versus 2022. He notes that they are currently 12 percent below their five-year running average for the port while projecting Los Angeles will handle a total of 8.6 million TEU in 2023 down from the peak of nearly 10.7 million in 2021. He notes that the port has the capacity and the ability to scale up to meet demand.

Both ports look to continue to rebuild market share after a year of uncertainty while the longshore workers were without a contract. Analysts point out the Southern California ports could also benefit from the current problems and delays at the Panama Canal, which could encourage shippers to use the California ports instead of sending cargo to East Coast and Gulf Coast ports.

St. Lawrence Seaway Shuts Down as Operators’ Union Goes on Strike

A union representing 360 workers on the Canadian side of the St. Lawrence Seaway has gone on strike after failing to reach a contract agreement, temporarily shutting down the Great Lakes’ connection to the sea.

In a statement, union Unifor said that talks with its employer, St. Lawrence Seaway Management Corporation (SLSMC), are “1,000 nautical miles apart on wages.” The union said that it had made every effort to avoid a strike, but SLSMC had not made enough movement in its bargaining position.

“The SLSMC works to find a fair and competitive labor agreement that balances wage demands and market realities,” said the corporation in a statement. “As a result, the system will remain shut down until an agreement can be reached.”

SLSMC carried out plans for an organized shutdown of the seaway system over the course of the last three days. This allowed all vessels in transit to safely exit the seaway and its locks, and no ships got caught in the middle, the corporation said. The U.S. side of the operation is also unaffected.

However, more than 100 vessels outside of the seaway have been impacted by the shutdown. The corporation has applied to the Canada Industrial Relations Board to make Unifor provide staffing for the safe transit of grain-carrying bulkers.

According to SLSMC, Unifor is seeking exceptional wage increases inspired by union action in the automotive industry. Unifor also represents thousands of auto workers, and it just concluded negotiations with General Motors on a multiyear contract earlier this month. The terms of the contract with GM are generous, including a 20-25 percent raise over three years and two more paid holidays. They aren’t the only ones: on the other side of the Canadian border, new union leaders at the United Auto Workers have secured tentative offers from the Big Three U.S. automakers for a raise of 23 percent over five years – and the UAW is still holding out for an even better deal.

Russia Closes Border to Ukrainians, Affecting Port Calls and Crew Change

On Monday, the government of Russia shut down border crossing access for Ukrainian citizens, tightening security after a series of covert attacks on Russian soil. The closure is expected, but it may have effects on shipping because of the large number of Ukrainian seafarers employed in international trade, according to the American Club.

The P&I club reports that Ukrainian seafarers will not be able to enter Russia through Russian seaports, putting an end to crew changes for these individuals until after the ship leaves Russia.

Even if a foreign vessel has no plans to carry out a crew change in Russia, but merely has Ukrainian crew aboard when it calls at a Russian port, there could be “significant difficulties” for the operator under the new rules, the club warned.

The Russian government’s formal notice restricts Ukrainian citizens to entering at two points only: the Moscow airport, or a road crossing at the Latvian border. Though this appears comprehensive, it is unclear whether it will be evenly applied across all Russian seaports. The insurer has only received advice related to the restriction for Russian ports in the Black Sea region – like Novorossiysk, Taman, Tuapse and Kavkaz. These ports will be prohibiting shore leave and crew changes for Ukrainian crewmembers.

“Members with Ukrainian citizens aboard their vessels that have plans to call at any Russian Federation ports are recommended to check and confirm the security policy at that port of call,” American Club advised.

The Ukrainian military and intelligence services have had considerable success in targeting Russian Navy assets in the Black Sea, and port access is tightly controlled. At Sevastopol and Novorossiysk, the harbors are protected not just by boat patrols and surveillance, but by multiple layers of movable net barriers enclosing the harbor entrance.

SHI Develops Device to Reduce Overboard Container Losses

Samsung Heavy Industries reports it has developed a patent-pending device that is simple and easy to use that will dramatically decrease the number of containers lost overboard while boxships are at sea. They are reporting that initial testing is showing that loss rates can be reduced by up to 70 percent while not impacting the loading capacity or operation of the vessel.

The industry increased its focus on container losses after a series of high-profile events in 2020 where hundreds or even thousands of boxes were damaged or lost overboard from a single vessel. The World Shipping Council in its report tracking container losses reported that 2020 was the worst individual year in recent memory with nearly 4,000 boxes lost overboard followed by over 2,000 containers lost in 2021. High losses such as the nearly 6,000 in 2013 had most often involved the loss of a vessel, whereas the recent numbers were due to bad weather and vessel handling. The number however fell dramatically in 2022 to just 661 boxes.

Much of the industry’s focus has been on weather conditions and a phenomenon known as “parametric rolling” which in a following sea is especially hazardous for container vessels. The industry has issued advisories on vessel handling while technology companies are working on systems that can predict dangerous sea conditions.

Samsung however has taken a much simpler approach focusing on the racks and securing the lashing bridges. Their loss prevention device, known as Special Structure Anti-Container Loss, is an additional device attached to the lashing bridge. They are pointing to the “severe shaking” of boxes in bad weather as a key contributor to the losses. Once in place, Samsung reports the device minimizes the “left and right movement of containers even in bad weather.”

They are reporting that they have obtained certification from four of the world’s leading class societies, DNV, ABS, LR, and KR, and have completed over 10 patent applications outside of Korea for the device. They said in developing the device there was a focus on minimizing the size and weight to make it easy to install. They are saying it has a compact design and that it will work on existing ships without affecting container capacity.

Samsung reports that the prototype structure is now at the Pusan National University. They are conducting strength testing as they seek to validate the product and increase its reliability. The device has already drawn the attention from the world’s leading container shipping companies and Samsung anticipates that they will begin full marketing within the year for the product.

European Commission Seeks to Support Ports in Fight Against Drug Smuggling

The European Commission today mapped out an aggressive roadmap of actions designed to step up the fight across member states against drug trafficking, including a strong focus on stopping illegal activities at ports across Europe. In laying out its plan and call for full support from the European Parliament and the Council, the Commission highlights the drug trade as “one of the most significant threats faced by the EU today.”

Today’s action follows a series of previous reports that have highlighted the scope of the drug trade and organized crime ranging from the major shipping carriers to ports across Europe. Europol in May 2023 released a detailed report working with the ports of Antwerp, Hamburg/Bremerhaven, and Rotterdam, looking at the efforts of organized crime. They cited the broad inflation of the ports by organized crime which was using efforts such as stolen identification numbers to gain access to containers that were being used to ferry the narcotics from South America. They found that criminal networks were placing people as employees in ports to gain access to their shipments. Separately, port officials have warned that the drug cartels are expanding efforts into smaller and secondary ports to avoid detection.

Executives from both MSC and Maersk have talked of their extensive efforts aimed at combatting drug smuggling. Last year, several of the major shipping companies and ports announced new partnerships to coordinate their efforts. The Financial Times, however, today in reporting the new EU roadmap quotes a Maersk executive saying the whole supply chain has been infiltrated by drug gangs.

The European Commission cites data from 2021 saying 303 tonnes of cocaine was seized while ports continue to make increasingly large captures. Both Rotterdam and Algeciras recently set records with the Dutch authorities announcing a single seizure of eight tones of cocaine while the Spanish seized 9.5 tonnes.

“Europe has now replaced the U.S. as the single largest cocaine market in the world and is fast becoming a world hub for drug trafficking – a disturbing claim to fame and one we have to redouble efforts to reverse,” said Margaritis Schinas, Vice-President for Promoting our European Way of Life. “Today we are announcing a new series of measures to enhance the resilience of logistical hubs and dismantle criminal networks. This will be complemented by strong engagement with partners worldwide to crack down on the main supply routes.”

The new roadmap from the European Commission calls for the launch of a new European Ports Alliance. It would specifically seek to reinforce customs authorities and law enforcement as well as the public and private ports to stop the infiltration by criminals. The plan has a total of 17 actions in four priority areas that also include more financial and digital investigations to catch criminal networks, better cooperation between member states, and working with international partners. The Commission commits to implementing its actions in 2023 and 2024.

The Financial Times in reviewing the roadmap says that it calls for allocating €200 million for scanning equipment at the ports. They cite Antwerp as an example saying overall that just two percent of goods are scanned and five percent of the containers identified as “high risk.” Antwerp’s current plans call for scanning all high-risk containers arriving at its terminals by 2028.

Another part of the effort would increase the screening and vetting of port employees. The Commission also plans to commit €20 million to support the Internal Security Fund and efforts to seek proposals to combat organized crime.

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