China COSCO gets $644m state subsidy

China COSCO Holdings received CNY4 billion (USD644 million) from the government to scrap old tonnage and fleet renewal on 30 June, a stock filing of the company said.
The subsidies will have a certain degree of positive impact on the company’s financial result for 2015, the company said.
In April,

Container Weighing Guidelines Released

By MarEx 2015-06-30 21:12:51

On July 1, 2016, global containerized maritime commerce will need to comply with new international regulations that require every packed container to have a verified container weight as a condition for vessel loading.

In order to bring long-needed improvements to maritime safety, in November 2014 the IMO adopted amendments to the International Convention for the Safety of Life at Sea (SOLAS) Chapter VI, Part A, Regulation 2 – Cargo information.

The regulations place a requirement on the shipper of a packed container, regardless of who packed the container, to provide the container’s gross verified weight to the ocean carrier and port terminal representative sufficiently in advance of vessel loading to be used in the preparation of the ship stowage plan.

A verified container weight will be a condition for loading a packed container on board a vessel for export.

The vessel operator and the terminal operator will be required to use verified container weights in vessel stowage plans, and they will be prohibited from loading a packed container on board a vessel for export if the container does not have a verified container weight.

The World Shipping Council and its member shipping lines have developed guidelines to explain what the implementation of the SOLAS amendments will require of shippers, carriers, and terminal operators. The council recommends that all parties should use the next twelve months to plan for the efficient and effective implementation of the requirement in July 2016.

The guidelines are available here.


E.U. MRV Scheme Enters into Force July 1

By Wendy Laursen 2015-06-30 20:35:20

The European Commission’s Monitoring, Reporting and Verification (MRV) rules to collect emissions data officially entered into force on July 1, 2015.

MRV Regulation 2015/757 is a first step towards cutting CO2 emissions from maritime transport and requires operators of ships exceeding 5,000 gross tons to monitor and report their carbon emissions on all voyages to, from and between E.U. ports from 2018.

The MRV system is expected to cut CO2 emissions from the journeys covered by up to two percent, compared with a business-as-usual situation, according to the Commission’s impact assessment. The system is also anticipated to reduce net costs to shipowners by up to €1.2 billion per year in 2030.

However, the adoption of the MRV regulation disappointed of the International Chamber of Shipping (ICS), BIMCO and Intercargo. The organizations believe the E.U. is pre-empting the current IMO negotiations on a global data collection system.

Agreement at IMO will require the support of non-E.U. nations with which the vast majority of the global fleet is registered, including developing countries such as China and India for whom additional CO2 regulations are a politically sensitive issue.

The EU Regulation includes controversial elements, such as the publication of commercially sensitive data on individual ships, an idea which had previously been rejected by the majority of IMO governments during a meeting of the MEPC in October 2014.

The ICS has stated that it fully appreciates that the E.U. regulation, which will not be fully implemented until 2018, contains text to the effect that the required data which shipping will have to provide can be amended by the European Commission to reflect the final outcome of any agreement at IMO. However, it is unclear whether the commission will truly be willing to fully realign the E.U. rules with the agreed international consensus.

As part of the regulation, a valid document of compliance issued by an independent verifier must be carried on board vessels which have performed shipping activities falling under the shipping MRV regulation during the previous year when they are visiting E.U. ports.


Service companies are already moving to offer support services for shipowners.

Emissions verification company Verifavia has made a start with the unveiling of a dedicated service for shipping on July 1. Verifavia is already working with other transport sectors such as aviation.

GMC Maritime Training Center & Services is offering an MRV Executive Briefing course which enables shipping companies to familiarize themselves with the requirements and design an effective MRV system to better prepare for the implementation time.

Parker Procal recently announced that its Procal 2000 emissions analyzer had received DNV-GL certification. It has met the requirements of MEPC 184(59) Chapter 6 on emission testing of CO2 and SO2, as well as the requirements of the revised MARPOL Annex VI and NOx Technical Code 2008. The analyzer’s certification helps shipowners to provide robust evidence to demonstrate compliance with ECA and MRV regulations.


HMS Queen Elizabeth’s 200 Ton Engines Brought to Life

By Wendy Laursen 2015-06-30 19:11:42

Aircraft carrier HMS Queen Elizabeth’s diesel generators have been powered-up for the first time, marking a major milestone on its way to becoming an operational warship.

The 65,000 ton future flagship of the U.K. Royal Navy has undergone months of preparation work by the Aircraft Carrier Alliance (ACA) to start the first of her four diesel engines, which are directly coupled to the generators.

Together, each power unit weighs approximately 200 tons – the weight of two medium size passenger jets.

The diesel generator sets will provide sufficient electrical power to drive the ship at cruise speeds, but when higher speed is required, two gas turbine alternators will also be used. Together they will produce 109MW of power, enough to power a medium-sized town.

Minister of State for Defence Procurement, Philip Dunne, officially started the first of the ship’s four diesel generators at the home of the UK’s aircraft carrier program in Rosyth (Scotland) on Tuesday bringing the ship to life for the first time.

Dunne said: “Powering up the diesel generator today marks an important milestone on the journey to bring these highly versatile ships into service with our Armed Forces. They will be the largest, most capable and effective surface warships ever constructed in the UK. The build program is supporting thousands of jobs across the country, with over 4,000 of those jobs at Rosyth and the Clyde.”

He also announced that BAE Systems has been awarded a £5.5 million ($8.5 million) contract to install a new Vessel Traffic Management System (VTMS) to assist in the controlling and monitoring of all ship movements within Portsmouth Harbour and the Eastern Solent to prepare for the arrival of the carrier, around the end of 2016, beginning of 2017.

The new system installation, which is to be completed early 2016, is designed to provide the Queen’s Harbour Master and the Vessel Traffic Service team with the situational awareness they require to control the vessels in their operational area.

As the largest ship ever built for the Royal Navy, the aircraft carrier:

• Has a height of 56 meters (184 feet), taller than Niagara falls;

• Has a length of 280 meters (920 feet) with a flight deck the size of 60 tennis courts;

• Has a 70 meter (230 feet) wide deck that could fit four jumbo jets alongside each other;

• Has a range of 10,000 nautical miles and carries enough fuel to transport a family car to the moon and back twelve times;

• Is fitted with a long range 3D radar that is capable of tracking more than 1,000 targets at once or can spot a tennis ball travelling at 2,000 miles per hour.

Operating with Lightning II fifth generation stealth Joint Strike Fighter jets, the QE Class will be versatile enough to be used in a full range of military tasks from warfighting to providing humanitarian aid and disaster relief.

Following sea trials (from 2017) and First of Class Flying Trials for helicopters and the F-35B Lightning II (starting in 2018), HMS Queen Elizabeth will undertake a coherent build up towards achieving an Initial Carrier Strike Capability in 2020.

The second of class HMS Prince Of Wales is now almost half complete at 30,000 tons. The forward island was installed in May 2015 forming the iconic carrier shape of the vessel. Initial operating capability of HMS Prince Of Wales is expected in 2023.

The aircraft carriers HMS Queen Elizabeth and HMS Prince Of Wales are being delivered by the Aircraft Carrier Alliance, a unique partnering relationship between BAE Systems, Thales UK, Babcock and the Ministry of Defence.


Shell Arctic Rig Departs Despite Protests

By Reuters 2015-06-30 15:49:58

U.S. Coast Guard and police boats cleared a way through protesters in kayaks at a Seattle-area port on Tuesday so a drilling ship could head for the Arctic on behalf of Royal Dutch Shell.

The Noble Discover is the second drilling ship Shell has sent to the area in recent days.

The activists, who have staged frequent demonstrations during the past two months against Royal Dutch Shell’s oil exploration in the Chukchi Sea off mainland Alaska, said 21 protesters in kayaks took to the waters just beyond the Port of Everett north of Seattle where the oil rig launched for sea.

The activists had entered the safety zone around the Noble Discover and were intercepted by small boats of the U.S. Coast Guard and local police, who took the water-borne demonstrators to shore, said Coast Guard spokesman Chief Petty Officer David Mosley.

No one was arrested but the Coast Guard and police team issued five citations to demonstrators, he said.

Following its pre-dawn departure, the Nobel Discover was sailing on toward international waters with no blockade in its path, Mosley said.

Shell could begin drilling for oil in the Arctic off Alaska as early as the third week in July, when it expects sea ice to begin clearing.

The company was given conditional approval by the U.S. Department of the Interior in May to return to the Arctic for the first time since its mishap-plagued 2012 drilling season.

Protesters around Washington have demonstrated against Shell’s intention to drill for fossil fuel in the Arctic, one of the most environmentally sensitive regions in the world, saying a spill would be destructive to the ecosystem and extremely hard to clean up.

On June 15, another drilling rig that will search for oil in the Arctic for Shell pulled out of the Port of Seattle and also was met by protesters in kayaks, including Seattle City Council member Mike O’Brien, who slowed its progress before it reached the open ocean.

That drilling rig arrived in Dutch Harbor off mainland Alaska on Saturday morning. Shell plans to drill through late September.

Shell maintains that it has a robust safety and clean-up plan should a spill occur.


CMA CGM Expands Relationship with China

By MarEx 2015-06-30 15:18:28

In a bid to further increase cooperation with China, CMA CGM, the world’s third-largest container shipping group, will sign major two deals with the Asian country. The agreements will put the French company in line to benefit from a forecast surge in trade between Asia and Europe.

CMA CGM said it will sign a $1 billion financing agreement with Export-Import Bank of China (CEXIM) and an agreement with transport conglomerate China Merchants (CMHI) to look at joint investments in the country’s so-called “One Belt, One Road” initiative to create a network of infrastructure to boost trade.

The deal with CEXIM is to be signed on Wednesday during a visit to its Marseilles headquarters by Chinese Premier Li Keqiang, whose trip to France was expected to involve a series of deals with French companies, and provides for loans and guarantees for future orders for ships and containers from China.

One Belt, One Road involves around 300 major projects to link Asia to Europe via road, rail, electricity and internet networks, gas and oil pipelines, as well as other sea and land infrastructure.

Chinese President Xi Jinping said in March he hoped annual trade between China and the countries involved in One Belt, One Road would exceed $2.5 trillion in a decade.

“One Belt, One Road is most certainly the world’s most ambitious infrastructure development project,” said CMA CGM in its statement on Tuesday.

CMA CGM, which opened its first office in Shanghai in 1992, nearly 10 years before China entered the World Trade Organization (WTO), says it has a 10 percent share of the container shipping market in China.

During the second semester of 2015, Chinese shipyards will deliver three 18,000 TEUs vessels to the CMA CGM Group. Those will be the group’s largest vessels and the biggest ones to have ever been built by Chinese shipyards. They will be named after great explorers, and one of them will be christened CMA CGM Zheng He, in recognition of the famous Chinese explorer.

The French firm, whose rivals include Maersk Line, the world’s largest container shipping company and part of AP Moeller-Maersk, already has a partnership with China Merchants, to which it sold 49 percent of its Terminal Link subsidiary that operates container ports.

Last year, it joined forces with China Shipping Container Lines (CSCL) in a vessel-sharing alliance also including United Arab Shipping Co (UASC) to boost efficiency on key routes in a container shipping sector battling with overcapacity.


Hong Kong Clean Fuel Requirements Come Into Effect

By MarEx 2015-06-30 14:57:48

Ocean going vessels (OSVs) berthing in Hong Kong will be required to use clean fuel starting July 1.

The new Air Pollution Control Regulation coming into effect tomorrow requires ships at berth in Hong Kong to use clean fuels with a sulfur content not to exceed 0.5 percent. It also allows OGVs to use liquefied natural gas and any other fuel that can achieve the reduction of emissions of sulfur dioxide (SO2) at least as effectively as the use of low-sulfur fuel.

If an OGV uses technology that can achieve the same or less emissions of SO2 when compared with low-sulfur marine fuel, it may be exempted it from switching to compliant fuel while at berth.

SO2 emissions of ships at berth represent about 40 percent of the total SO2 emissions. The regulation seeks to reduce both emissions of SO2 and respirable particulates from OGVs while berthing by more than 60 per cent. This is expected to contribute to the improvement of Hong Kong’s air quality and a reduction of associated health risks.

The regulation requires ships to use low emission fuel for one hour after arriving and one hour before departing. The ship’s master and crew are responsible for recording the details of arrival, departure and fuel switch operation. Additionally, all records must be maintained onboard for three years.

The master and owner of any OGV using non-compliant fuel while at berth in Hong Kong will be liable to a maximum fine of $200,000 and imprisonment for six months. Those failing to record or keep the required particulars will also be liable to a maximum fine of $50,000 and imprisonment for three months.


Chinese Prime Minister to visit CMA CGM

Prime Minister Li Keqiang will lead a ministerial delegation to French shipping giant CMA CGM Group’s iconic Marseilles HQ tomorrow and conclude two major economic agreements.
Under the first, Chinese shipyards will deliver three flagship 18,000 teu container vessels to CMA CGM during the latter