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.

Vietnam’s Lach Huyen Port Buys Cranes for Next Phase of Expansion

The Japanese shipyard Mitsui E&S shipbuilding has received an order for 30 cargo handling cranes for a customer in Vietnam. The procurement was made by the Port of Haiphong Joint Stock Company (CHP), a subsidiary of Vietnam Marine Corporation (VIMC), which is currently constructing the container terminal in the Lach Huyen area in Vietnam’s northern city of Hai Phong. The new port represents one of the first public-private partnerships between the Governments of Vietnam and Japan.

The order consists of six STS cranes and 24 RTGs. The STS cranes to be delivered have a 65-meter outreach and can be capable of handling large container vessels exceeding 15,000 TEU. This will be one of the largest crane orders for CHP for its port complexes in Haiphong area.

Mitsui has a record of delivering cargo handling cranes to CHP, with the last delivery made in 2007 as part of Japanese government’s official assistance to Vietnam. Japan International Cooperation Agency (JICA) is involved in the planning, design and construction of the new Lach Huyen Port.

Plans for the construction of Lach Huyen International Port were first launched in 2013 under Vietnam’s 2020 Seaport Development Plan. It is intended to be an extension of the Port of Haiphong, which over the years has seen a rise in demand for containerized cargo. The new terminal is designed to handle large container vessels, enabling direct exports from Northern Vietnam to the U.S and European markets without using transshipment ports in Singapore and Hong Kong.

The Lach Huyen Port is being developed on Cat Hai Island and connected by a sea bridge and access roads to mainland Vietnam. The port is being constructed in phases, and the first two container terminals have already been in operation since 2018.

The third and fourth terminals are still in construction and are expected to be commissioned by 2025, according to a statement in July by CHP. The procurement of the cargo cranes shows the works are on schedule.

Maersk is also working with Vietnam’s HATECO to develop another two deepwater berths at Lach Huyen, capable of handing 18,000 TEU vessels. In the initial phase, the facility will have five STS cranes and 14 RTGs.

After Medevac, Captain of Cocaine-Laden Bulker is Held Without Bail

The master of the cocaine-laden ship that Irish authorities seized last week will be held without bail pending trial, a district court in Wexford, Ireland ruled on Monday.

Iranian national Soheil Jelveh, 50, was the master of the bulker Matthew during a transatlantic voyage to Ireland, which ended in a high-profile adverse boarding by Irish Army forces on September 26.

At the time of the military boarding, Jelveh was not on the ship. The Matthew’s crew had requested a medevac for him on Monday evening, and an Irish SAR helicopter flew him to a hospital in Wexford. The authorities boarded the Matthew the next morning and found $170 million worth of cocaine on board – the largest drug seizure in Irish history.

Jelveh was arrested at the hospital shortly after. According to the gardai, he was in possession of phones, documents and $53,000 in cash, and they suggested that he may have been attempting to evade arrest using the medevac flight. The captain asserted that the money he was carrying represented his own wages, which had been paid the month before.

“He was caught red-handed and we believe he was attempting to make an escape when he was airlifted from the ship,” a gardai detective told the court.

For his alleged role in transporting two tonnes of cocaine into Irish waters, Jelveh has been charged with possessing drugs worth more than £Ir 10,000 ($13,000) under Ireland’s Misuse of Drugs Act. Under Irish sentencing reform laws, the crime carries a minimum penalty of 10 years in prison. Prosecutors asked Wexford District Court Judge John Cheatle to deny bail, given that Jelveh has no significant ties in Ireland, maintains a family in Dubai and could be a flight risk. The judge agreed, overruling the objections of Jelveh’s counsel.

In total, seven men have been arrested in connection with the drug seizure, including two who had to be rescued from a small trawler which grounded while allegedly attempting to rendezvous with the Matthew.

The interdiction was unusually dramatic. On the morning of September 26, the Irish Navy patrol ship William Butler Yeats chased down the Matthew and fired warning shots when the vessel failed to comply with directions. In rough weather, and with the bulker maneuvering hard, Irish Army commandos fast-roped to the deck from a helicopter and took control of the ship.

Ukraine Works to Expand Exports as Three More Bulkers Arrive

Ukraine with support from a growing number of shipping companies is expanding its efforts to open the Black Sea shipping corridor and restore exports. Larger ships made the transit into Ukraine with reports from the markets that traders are taking the first tentative steps at offering Ukrainian grain.

Vice Prime Minister Oleksandr Kubrakov again took to social media to highlight the movement of four more bulkers. He reported that three new cargo ships were on their way to Ukraine for the loading of export products. He said they would be using the temporary corridor established by the Ukrainian Navy while the second vessel that traveled to Ukraine last weekend was now outbound on the corridor.

The Turkish-owned bulker Aroyat (18,315) dwt registered in Palau departed Chornomorsk this morning, September 22, loaded with 17,600 metric tons of wheat. The vessel had traveled into the port arriving last Saturday and is now following the corridor along the western shoreline of the Black Sea. It is heading to Egypt.

She is following the Resilient Africa which arrived off Turkey on Thursday, September 21. The ship is carrying 3,000 metric tons of grain from Ukraine. It is currently in the anchorage off Istanbul with reports that it will proceed to Asia.

Three more bulkers used the corridor and have now arrived at the Ukrainian seaports. The Liberian-registered Eneida (45,572 dwt) traveled to Chornomorsk arriving late today. The ship, which until recently was known as the Bosphorus Prince, is now reported to be managed from Panama. She had been holding in an anchorage off Turkey awaiting a contract.

Two of the vessels however went to the eastern port of Yuzhny marking the first ships to arrive there since July. The Azara (13,898 dwt) is registered in Palau and managed from Poland and arriving from Egypt. The largest of the ships is the Chinese-owned Ying Hao 01. The ship is 74,759 dwt arriving from China.

Kubrakov reports the ships will be loading both agricultural products and iron ore. Ukraine has only recently attempted to restart its ore shipments which were not covered by the year-long UN-brokered agreement which only covered foodstuffs. Kubrakov said the ships would be heading to China, Egypt, and Spain.

Traders are reportedly beginning to offer Ukrainian grains again, although at a steeply discounted price from the Ukrainian ports versus neighboring sources such as Romania. AgriCensus, a price reporting agency, highlights the lower prices as well as higher shipping costs for the products coming out of Ukraine. They note the limited number of ships and crews willing to make the trip. They however are reporting that additional contracts are expected and that additional ships have been fixed and are due to make the trip.

Russia continues not to comment on the Ukrainian exports and appears to have not made any attempts to approach the ships. The UK had warned that the Royal Air Force would be monitoring and seeking to deter any action against merchant ships in the Black Sea.

Report: China is Checking Ballast Water on Japanese Ships for Radioactivity

China has reportedly quietly begun checking all ships arriving from Japan looking for signs of radioactivity in their ballast, while the state news agency reported today the country is beginning a one-year pilot program to stop invasive species. According to reports from Japan, this is the latest step in China’s concern about the release of contaminated water from the Fukushima nuclear power plant.

Japanese officials reported that they planned to release into the Pacific Ocean small amounts of the treated radioactive water that had been stored at the Fukushima nuclear power plant which was destroyed in the 2011 earthquake. Despite widespread protests, Japan proceeded with the release of the first batch of water in late August.

Japan’s Kyodo News reported last week that China has begun testing the ballast water aboard cargo ships arriving from Japan at some key ports. The news outlet speculated that it was likely for radiation level inspections, noting that China has called the waters being released in Japan “nuclear-contaminated” demanding the stop of the release. According to the news report, local Chinese authorities have notified operators of the vessels that they will ban them from releasing ballast water at Chinese ports if the radiation levels in their samples exceed a certain limit.

The Japanese report says the testing is taking place at ports in Tianjin, as well as Shandong Province in eastern China. The newspaper believes the testing began in July, which was after Japan announced its intention but before it confirmed the first release of the water from Fukushima.

The Chinese state news agency Xinhua issued the first statement acknowledging efforts to stop “invasive species” from entering China.

“China decided to begin a one-year action plan to prevent invasive alien species from entering border ports across the country as part of efforts to safeguard the country’s biodiversity and ecological environment,” the report said while citing a large increase in the number of live animals and invasive plants stopped at border crossings.

Last month, China in addition to protesting Japan’s plan to release the water announced an immediate ban on the importation of seafood and fish from Japan. The announcement said the ban was effective immediately noting that China would “dynamically adjust relevant regulatory measures as appropriate to prevent the risks of nuclear-contaminated water discharge to the health and food safety of our country.”

China was reported to be importing more than $1.1 billion of seafood from Japan every year. Japan protested the ban and proposed setting up international monitoring insisting that the release of water from Fukushima would not impact the food supply.

UK Effort Plans First Electric SOV in Offshore Decarbonization Race

A coalition of leading maritime companies led by Bibby Marine and with financial support from the UK plans to develop the first zero-emission electric Service Operation Vessel (eSOV) to be used to support the offshore wind and energy industry. It is the latest entrant in the race to develop the first zero-emission vessels with a focus on the offshore sector and the potential of using power at the wind farms to charge the ships.

In their application for the UK’s Zero Emission Vessel Infrastructure (ZEVI) competition, the coalition points to the strong opportunities in the segment to support offshore wind operations. With the UK calling for 40 GW offshore wind energy in additional offshore wind energy capacity by 2030 expanding on the more than 10 GW already in operation, the group estimated that between 62 and 149 vessels will be required. They highlighted that all the UK-operating SOVs have so far been built aboard.

They are proposing a 295-foot vessel that would be primarily powered by electricity and batteries and have dual-fuel methanol-powered engines as backup. The ship will be ready for offshore charging and can recharge its batteries at night.

They expect that it will be possible to operate a two-week cycle onsite at an offshore wind farm emissions-free. Near shore the vessel will operate solely on battery power and also while onsite. For the long transits between the shore homeports and the farms, the vessel will use its engines and with methanol fuel, it would be possible to still reduce emissions by 90 percent versus fossil fuel operations. They noted in the application if offshore charging is not available, the vessel would use its methanol engines to recharge its batteries and would still achieve a 50 percent reduction in emissions compared to a conventional SOV.

DNV, which is one of the members of the coalition notes, “The number of fully electric and hybrid vessels will surge over the next few years, and continuing development on these technologies will be a key part of the maritime industry’s transition to a zero-carbon future.”

Bibby, which is leading the effort notes the vessel will be a natural progression in its decarbonization effort and the first new vessel for Bibby Marine in five years.

It was one of five projects that was announced today at London International Shipping Week as a winner in the UK Government’s competition designed to support the development of new zero-emission maritime technologies. Under the rules of the competition, the vessel needs to be in service by 2025.

They are estimating a cost of $37.5 million for the project with the UK government awarding them $25 million in funding. The project participants include Bibby Marine, Port of Aberdeen, Offshore Renewable Energy (ORE) Catapult, Kongsberg, DNV, Shell, and Liverpool John Moores University.

In the previous rounds of the funding competition, the UK has also awarded support to projects seeking to develop the technology required to provide offshore recharging capabilities. It has been highlighted that one of the challenges is the increasing distance from shore for the location of the wind farms, making onsite recharging critical. The UK projects are one of several looking at offshore recharging and creating vessels that are fully electric or use other technologies to be zero-emission ships.

Bankrupt Bed Bath & Beyond Seeks $15M in Damages from Yang Ming in FMC Case

Bankrupt retailer Bed Bath & Beyond continues to cite the shipping industry and its business practices during the pandemic as contributing to the demise of its operations earlier this year. In its latest move, the company filed a complaint with the Federal Maritime Commission seeking reparations totaling more than $15 million from Yang Ming for denial of service, premium fees, and detention and demurrage charges incurred in 2021 and 2022.

The filing with the FMC on September 12 is the latest in a series of legal moves by the bankrupt company attempting to seek restitution which would contribute to the bankruptcy settlements. In April, the company also filed a complaint with the FMC against Orient Overseas Container Line (OOCL) and OOCL (Europe) alleging that the carrier had “coerced,” “exploited” with price inflation in container shipping, and “deliberately” denied space to the retailer resulting in $25 million in excess costs as well as an additional approximately $6.4 million in D&D fees it contends resulted by OOCL’s business practices between 2020 and 2022.

Yang Ming took a preemptive step in April 2023 filing a complaint in the Southern District of New York, Federal Court. They sought to block Bed Bath & Beyond’s claims of $7.8 million in actual costs due to the issues cited with the service provided and fees imposed by the carrier. A week after the filing, the retailer informed the court of its voluntary bankruptcy petition and in June the court issued an automatic stay of “the commencement or continuation” of a judicial action based on the bankruptcy. The court case could proceed if Bed Bath and Beyond resolves the bankruptcy.

In its filing to the FMC, the former retailer cites many of the same issues as before, contending that “Yang Ming took advantage of price inflation in the container shipping sector and unfairly exploited its customers.” They allege that the carrier “engaged in a practice of systematically failing to meet its service commitments,” resulting in enormous expense to Bed Bath and Beyond, and then filed a “retaliatory declaratory judgment complaint,” in the U.S. District Court. Like the complaint against OOCL, they allege that Yang Ming flouted its service commitments, engaged in a practice of coercing the shipper, charged unreasonable D&D fees when it was not possible to return containers, and refused to negotiate.

At issue is an annual service contract that began on May 1, 2021, for the transport of 1,000 FEUs. They allege the carrier provided no space during the first month of the contract and when confronted admitted that it had over-committed to its customers. During the 12-month period, they report Yang Ming carried just 149 FEUs, 85 percent below the commitment resulting in more than $6.6 million in damages as the retailer sought other space for its containers. They further contend that Yang Ming coerced them into paying nearly $300,000 in surcharges, and charged nearly $750,000 in D&D fees, and refused refunds on the fees.

Citing a total of nearly $7.7 million in costs, Bed Bath & Beyond in the filing seeks an award of reparations. Under FMC rules they are seeking that the amount be doubled based on a conscious pattern which constitutes violations of the Shipping Act.

The complaint highlights that this is one of numerous similar complaints now before the FMC each citing denial of service. Many shippers have alleged that the carriers during the surge in shipments and capacity constraints failed to honor service contracts. Each of the complaints contends that carriers instead put the contracted space into the spot market where they could realize dramatically higher prices. Several service complaints have been settled under confidential terms while most of them remain in front of the FMC.

DNV: Shipping Must Look Beyond Fuel as 2020s is Critical in Decarbonization

The current decade is a critical one for the shipping industry on its course to net zero, but in its latest outlook report, DNV concludes the progress is slow and the industry faces significant challenges. In their new iteration of the Maritime Forecast to 2050, DNV outlines challenges including costs, an expected shortage of low-carbon fuels, a lack of infrastructure, and the need to share the investment to develop new technologies.

“The 2020s is proving to be the decisive decade for the decarbonization of shipping,” writes DNV pointing to the emergence of the latest regulations from the European Union and the International Maritime Organization’s revised goals. “Focusing on fuel alone can distract us from making an impact this decade, and ambitious future declarations are not good enough. What we need is tangible actions that will reduce emissions,” said Knut Ørbeck-Nilssen, CEO of DNV Maritime.

DNV points out that the large-scale transition to new fuels is underway. As an example, the report cites that half the orders tonnage will now be capable of using LNG, LPG, or methanol-dual fuel engines. This compares they said with a third of the orders last year. Further, 6.5 percent of the tonnage in operation can now operate on alternative fuels, up from 5.5 percent a year ago.

While those numbers are seen as a signal that the industry has begun to move, DNV compares the speed of the change to that of a supertanker coming about. They highlight that overall, only 0.1 percent of the fuel used by merchant shipping is biofuels currently.

They warn the clock is ticking louder for the efforts to identify, define, and resolve barriers to successfully and safely decarbonize. However, they recognize that decarbonization will increase costs for individual shipowners for technology, fuels, and carbon pricing, which will all impact the commercial attractiveness and long-term profitability of the operations. Careful consideration they say will be required to avoid unattractive or stranded assets.

DNV believes that a dependence on low-carbon alternative fuels alone with not be enough highlighting that the shipping industry will face competition from aviation and road transportation in particular as well as other industrial users that are also considered to be hard to decarbonize. The report calculates by 2030 the shipping industry would require 17 million tonnes of carbon-neutral fuels. That would represent 30 to 40 percent of the expected available production.

The report reiterates basic measures that should be implemented to achieve immediate fuel savings. Among the energy-efficiency measures they highlight are speed reduction, route optimization, and hull and propeller cleaning. They also point to smart and digital technologies. Still, they also point to an urgent need for low-emission technologies.

DNV selected six technologies that are increasingly drawing attention and adoption in the industry examining them and developing scenarios. The ones they focused on are solid oxide fuel cells, liquified hydrogen, wind-assisted propulsion, and air lubrication systems to reduce hull drag.

The other technologies they looked at are longer-term including onboard carbon, which DNV remains skeptical of despite progress on various tests. They however did find onboard carbon capture can be operationally feasible in their scenario for a large container vessel. Still, they highlight the lack of the infrastructure to handle CO2 captured aboard ships. They also look at the potential of expanding nuclear propulsion from military applications into the commercial industry. They report there would be a “long road to travel before nuclear can be scaled.”

They conclude that the maritime industry needs to adopt an integrated approach that incorporates the evolution of regulations, fuel supply, and technologies. DNV believes the cost of decarbonization must be carried through the maritime value chain and points to mechanisms such as green corridors as providing support during this critical decade.

The complete report is available online.

Turkish Cargo Ship Rescues MSC Officer 20 Hours After Going Overboard

Turkey’s General Directorate of Maritime Affairs is highlighting that a Turkish cargo ship completed a miraculous rescue of a seafarer who had been adrift in the Black Sea for up to 20 hours. The video of the recovery of the officer who fell from an MSC containership is being broadly circulated in the Turkish media.

The MSC containership MSC Nadriely (33,977 dwt) registered in Liberia departed Poti Port, Georgia on August 28 and was sailing along the northern coast of Turkey bound for Istanbul. The ship which is 682 feet long carries 2,468 TEU.

According to the media reports the “second captain” of the vessel, a Ukrainian, was discovered missing on August 30. After a search of the vessel could not locate the officer, being referred to in other articles as the first mate, the containership turned around to retrace its route. They also notified the Turkish officials. Rescue boats and Coast Guard aircraft were dispatched and an alert was issued for other ships.

 

 

A Turkish-owned cargo ship, the Moonlight (6,648 dwt), registered in Panama, had departed Kalamaki, Greece, and was heading to Poti Port, due to arrive on September 1. On August 31, the cargo ship came upon the officer in the water and was able to rescue him approximately 20 hours after he was reported missing. A map issued by the Turkish authorities appears to show a distance between the two points of as much as 50 miles.

Pictures of the rescue show the man to be conscious on the deck of the cargo ship. He was transferred to a Turkish hospital, where he is reported to be recovering.

 

PUBLISHED SEP 1, 2023 3:28 PM BY THE MARITIME EXECUTIVE

China Designs World’s Largest LNG Carrier

PUBLISHED SEP 5, 2023 4:35 PM BY THE MARITIME EXECUTIVE

China’s Hudong-Zhonghua Shipbuilding is presenting a new design concept for the world’s largest LNG carrier, created both to increase capacity as well as enhance operating efficiency. The design, which received Approval in Principle (AiP) from many of the leading class societies, comes as LNG transport is in high demand and producers such as Qatar and the U.S. are undertaking major expansions.

Qatar is adding its North Field to increase production which is also contributing to the record orderbook for new carriers. In the United States, several new export terminals are planned for the Gulf Coast. In addition, other U.S. facilities are expanding output to meet the growing import demand both from China and Europe.

The largest LNG carriers are Qatar’s Q-Max vessels which have a capacity of 266,000 cbm. Most of the vessels being built today are the conventional LNG carrier which has a capacity of 174,000 cbm. These have been viewed to be the most economical and versatile to operate and with the most effective gas containment and management systems.

The new design will expand LNG capacity by 57 percent over the conventional design with a capacity of 271,000 cbm. The vessels at 1,128 feet would be the same length as Qatar’s current largest ships. The American Bureau of Shipping, which was one of the class societies reviewing the design highlights that the vessel, which would have a 176-foot beam (molded) and 39-foot draft would be able to berth at 70 LNG terminals along the main trade routes.

The design was developed in part in a joint development project with DNV. The shipyard is reporting that in addition to ABS and DNV, it is also receiving AiPs from Lloyd’s Register and Bureau Veritas. They are promoting the receipt of the design approvals saying that it demonstrates that Hudong-Zhonghua can build innovative LNG vessels expanding on the 50 that they report are currently on order. Historically, the South Korean yards, which have 70 percent of the current orders for LNG carriers, have dominated this segment of shipbuilding.

To handle the LNG, the new vessel would transport the gas in five tanks. The newly designed tank would also be equipped with an enhanced cargo containment system together with a real-time sloshing monitoring system.

The vessel’s design also incorporates other elements not normally found on LNG carriers. ABS highlights a hull stress monitoring system and anti-collision technology. Other features that DNV is highlighting include air lubrication for the hull and a shaft generator. The design also incorporates selective catalytic reduction (SCR) that should reduce its nitrogen oxide (NOx) emissions, which will help the vessel comply with IMO Tier III controls even when in diesel mode.

Hudong-Zhonghua reports the ships will be dual-fuel to address emissions concerns. With a goal of creating a ship that is more efficient and economical, they are saying the new Global Max 271k type will have a 23 percent lower carbon intensity index (CII) than the conventional 174K LNG carrier widely deployed in the industry today.

The design will now undergo additional design and analysis work. Then the shipbuilder plans to present it to shipowners as a new option for LNG transport.

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