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https://www.hellenicshippingnews.com/global-lng-freight-falls-sharply-as-bintulu-lngs-up-to-three-trains-temporarily-down/
2025-04-18T00:00:00
Global LNG freight falls sharply as Bintulu LNG’s up to three trains temporarily down
Global LNG freight tumbled sharply April 16 as at least three of the nine trains at Bintulu LNG were temporarily down due to technical issues and this delayed export loadings at the port, prompting shippers to relet their ships, two sources with a direct knowledge of the matter said.“Some of the LNG tankers that were scheduled to load at Bintulu terminal are now being offered for spot voyages elsewhere at significantly lower than the last done freight levels,” said a source whose company imports cargoes from Bintulu.Another source said that around three of the trains were down, causing the LNG freight in Asia-Pacific to be significantly lower day over day.Among the fixtures heard, Petronas, which exports LNG from Bintulu, has given one of its LNG two-stroke carriers to BP at around $17,000/day.S&P Global Commodity Insights assessed the two-stroke LNG carriers’ freight for spot voyages at $22,500/day on April 16, down $2,000 day over day. The corresponding decline in freight for TFDE ships was $1,000/day to $15,000.One of the sources involved in such spot deals said that charterers tried to grab the two-stroke LNG carriers at freight below $20,000/day.LNG brokers in Singapore said that the additional supply of LNG carriers due to temporarily lesser loadings at the Bintulu terminal came at a time when demand has already declined due to no imports by China from the US after a steep hike in tariff.China’s LNG imports could potentially decline by at least 3 million mt this year, from an estimated 78 million tons in 2024, trade sources in Singapore said.Bintulu LNG has an annual production capacity of around 30 million tons, among the world’s largest.Sources said that the latest suspension in Bintulu LNG operations has nothing to do with Petronas’ plans to decommission the 500 km Sabah-Sarawak gas pipeline, which has been operational for more than a decade and connects Kimanis in Sabah to Bintulu in Sarawak.Source: Platts
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https://www.hellenicshippingnews.com/imos-net-zero-strategy-for-global-shipping-starts-with-pricing-carbon-but-its-not-perfect/
2025-04-18T00:00:00
IMO’s net-zero strategy for global shipping starts with pricing carbon but it’s not perfect
The IMO has adopted a framework that puts a price on carbon exceeding target levelsOn Friday, 11 April, the Marine Environment Protection Committee (MEPC) of the International Maritime Organization (IMO) agreed upon a set of mid-term measures to get the sector on track to net-zero by 2050. This follows the global shipping regulator’s earlier implementation of short-term measures focused on fuel efficiency. The package is due to be adopted by October 2025, with details and implementation guidelines to be specified and approved in spring 2026, before being included in the MARPOL treaty and coming into force in 2027.The most important elements of the net-zero framework are:Carbon price on target-exceeding emissions: The framework sets a price of $380 per tonne of CO2 equivalent for emissions that fail to meet the base target of an 8% greenhouse gas reduction by 2030, increasing to a 30% reduction by 2035 compared to 2008 levels (starting in 2027). For emissions falling short of a 21% reduction by 2030, running up to 2040 but below the base target, a charge of $100 is applied (see chart). Shipping companies could end up paying up to $1200 per tonne of bunker fuel emitted above the base target, which would quadruple current prices and force action. This means that the largest fraction of shipping emissions remains out of scope. Transport and Environment expects the framework to generate some $10 billion in revenues until 2035. The charges will be redistributed to support greening. What this will look like exactly still needs to be worked out.Rewarding fast movers: Companies outperforming the framework in terms of GHG reduction will receive surplus units, which they could save or sell.Fuel agnostic: The framework introduces a global fuel standard and takes a well-to-wake approach. It doesn’t exclude fuels or particular feedstocks, but focuses on greenhouse gas intensity in grams CO2-equivalent per Mega Joule (gCO2eq/MJ).But the policy fails to introduce a pricing mechanism covering all shipping emissionsAlthough the willingness to make progress on pricing measures is encouraging, the proposed framework doesn’t introduce full carbon pricing as implemented under the European Union’s ETS for shipping. This would only make bunker fuel less attractive, it generates much more budget to support greening as well. Several market players, including leading global container liners and shippers such as Cargill and Trafigura, have previously advocated for putting a price on all emissions as this could be a forceful instrument to support decarbonisation. Maersk called for a levy starting from $150-200 and preferably even significantly higher to support the transition.However, this also raises the costs of shipping, and adopting this was probably not achievable at the global level at this point. From an economic point of view, though, this would ultimately be necessary to narrow the gap between bunker fuels and costlier renewable fuels like green methanol and ammonia, and support investments in infrastructure and availability.Fuel neutrality risks putting biofuels at the forefrontThe net-zero framework takes a well-to-wake approach and looks at the greenhouse gas intensity of the fuels that companies use. It’s still unclear which fuel options will be eligible for subsidies and to what amount, but the agreement doesn’t exclude alternative fuels (and includes LNG as well). As such, companies are also allowed to use biofuels, which are often the cheapest and easiest lower-carbon option as they can be used in the existing fleet and don’t require investments in new technology. This will boost demand while demand from the aviation sector also starts to mount. It also raises questions about controversial (first-generation) feedstocks without specific requirements. Moreover, it could distract from investments in alternatives.Targets fall short of earlier ambitionsIn terms of target setting, the IMO previously adopted a goal of reducing GHG emissions by 20%, striving for 30% by 2030, and 70%, striving for 80% by 2040, both compared to 2008. The adopted framework seems to focus on a reduction of at least 8%-21% by 2030, which looks less ambitious. At the same time, total absolute emissions in shipping have risen in recent years, underscoring the need for more decisive action.All in all, I believe this framework is a step in the right direction, but it should also be seen as a framework to build upon further down the line.Source: ING
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NEGATIVE
https://www.hellenicshippingnews.com/landmark-imo-deal-set-to-shake-up-shipping/
2025-04-18T00:00:00
Landmark IMO deal set to shake up shipping
A decisive moment for global shipping regulation unfolded last week as the International Maritime Organization’s (IMO) Marine Environment Protection Committee (MEPC) concluded its 83rd session, which culminated in the approval of draft amendments establishing the ‘IMO Net-Zero Framework’.This global mechanism will combine mandatory greenhouse gas (GHG) limits with carbon pricing for the maritime sector and represents a move towards achieving the goals laid out in the IMO’s 2023 GHG Strategy, which targets net-zero emissions from international shipping by or around 2050, supported by interim reduction goals for 2030 and 2040.Hailed by the IMO as a world-first for any industry sector, the measures are set to apply to large vessels over 5,000 gross tonnage – the segment responsible for about 85% of shipping’s CO2 emissions.IMO secretary-general Arsenio Dominguez was in a celebratory mood at the end of proceedings: “The approval of draft amendments to MARPOL Annex VI mandating the IMO net-zero framework represents another significant step in our collective efforts to combat climate change, to modernize shipping and demonstrates that IMO delivers on its commitments.”Framework mechanicsThe Net-Zero Framework, to be integrated into MARPOL Annex VI, Chapter 5, is built upon two key pillars: a global fuel standard and an economic measure. MARPOL Annex VI, with its wide ratification covering 97% of global tonnage, provides the existing legal foundation.The Global Fuel Standard requires ships to progressively decrease their annual greenhouse gas fuel intensity (GFI). Calculated on a well-to-wake basis, the GFI measures GHG emissions per unit of energy used. Ships must meet increasingly stringent GFI reduction targets over time, driving the adoption of lower-emission fuels and technologies.Complementing this is the Global Economic Measure, introducing a GHG emissions pricing mechanism. Vessels exceeding the permitted GFI levels will need to acquire “remedial units” to cover their emissions deficit. Conversely, high-performing ships using zero or near-zero (ZNZ) GHG technologies, achieving emissions below a tighter ‘Direct Compliance Target’, can earn financial rewards and tradable “surplus units”.Compliance incorporates flexibility. Ships can meet their obligations by acquiring surplus units from others, using previously banked units, or purchasing remedial units via contributions to a new central fund.A cornerstone of the economic measure is the establishment of the IMO Net-Zero Fund.This fund will pool the contributions generated by the emissions pricing. Its revenues are strategically allocated to support the sector’s decarbonisation: rewarding low-emission vessels, funding innovation, research, and infrastructure development (especially in developing nations), supporting training and capacity building under the GHG Strategy, and, critically, mitigating adverse impacts on vulnerable states like SIDS and LDCs, underpinning a just and equitable transition.Ambition under scrutinyHowever, the framework’s approval was met with caution from environmental advocacy groups. Transport & Environment (T&E) acknowledged the step forward but argued the current draft “will fall short of delivering” the IMO’s own 2030 and 2040 targets, and is insufficient for the Paris Agreement’s 1.5°C goal.T&E’s analysis suggests projected annual revenues of around $10 billion until 2035 will be inadequate to properly incentivise the crucial uptake of scalable ZNZ fuels like green e-fuels.They estimate funding for ZNZ support could run out by 2032 without additional measures.Furthermore, T&E raised concerns about the framework’s neutrality on fuel types, warning it could unintentionally favour cheaper, first-generation biofuels from feedstocks like palm oil or soy. They argue reliance on these could undermine genuine emissions savings due to deforestation impacts.Faig Abbasov, T&E’s shipping director, offered a balanced view: “Multilateralism isn’t dead… the IMO deal creates a momentum for alternative marine fuels.” But he added: “Unfortunately it is the forest-destroying first generation biofuels that will get the biggest push for the next decade. Without better incentives for sustainable e-fuels from green hydrogen, it is impossible to decarbonise this heavy polluting industry.” He concluded that national policies are now needed to support truly sustainable options.Cleaner air milestoneMEPC 83 also marked progress on regional air pollution, approving a new Emission Control Area (ECA) for the North-East Atlantic. This designation enforces stricter limits on SOx, NOx, and particulate matter emissions, yielding significant air quality, health, and ecosystem benefits.As the world’s largest ECA, it covers waters off the Faroe Islands, France, Greenland, Iceland, Ireland, Portugal, Spain, and the UK, connecting existing ECAs in Northern Europe and the Mediterranean. The proposal, based on research by the International Council on Clean Transportation (ICCT) and Porto University, was submitted jointly by the EU27, UK, and European Commission. ICCT senior researcher Liudmila Osipova said that the approval “reflects a strong international commitment to cleaner shipping.It’s a crucial step toward improving air quality and protecting public health and marine ecosystems for the long term.”The journey for the Net-Zero Framework now enters its formalisation phase. The draft MARPOL amendments will be circulated to Member States before a planned extraordinary MEPC session in October 2025 (MEPC/ES.2) for final adoption. Detailed implementation guidelines are slated for approval at MEPC84 in Spring 2026. Following the standard MARPOL timeline, the regulations are anticipated to enter into force 16 months after adoption, likely in 2027.While the approved framework provides a structure, its ultimate success will hinge on the detailed negotiations ahead – refining targets, finalising economic measure mechanics, ensuring robust fund governance, and addressing sustainability concerns around fuel pathways. Global shipping will need to watch closely as the final details emerge, as the industry starts to prepare for a markedly different operational landscape.Source: Baltic Exchange
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POSITIVE
https://www.hellenicshippingnews.com/russian-arctic-oil-exports-to-china-jump-helped-by-sts-transfers-sources-say/
2025-04-18T00:00:00
Russian Arctic oil exports to China jump helped by STS transfers, sources say
Russia’s Arctic oil exports to China are set to rise sharply this month buoyed by a jump in ship-to-ship transfers at sea to ensure tankers pulling into port are not on U.S. sanctions lists, according to traders and data from Vortexa.The Arctic oil business accounts for a tenth of Russia’s seaborne oil exports which were hit with widened U.S. sanctions in January on nearly all tankers carrying crude oil grades such as ARCO and Novy Port and on Russian producer Gazprom Neft.To evade the curbs, ship-to-ship (STS) transfers of cargoes are taking place in international waters off Singapore and Malaysia where cargoes are loaded on to Very Large Crude Carriers (VLCCs) that are not subject to sanctions before heading for Chinese ports, according to traders and Vortexa senior analyst Emma Li.At least 4 million barrels of Arctic oil completed STS last week and 16 million more have arrived, or will arrive, in the South China Sea this month, Li estimated.China’s Arctic oil imports are rebounding given ample supply, but the volume eventually discharged will vary depending on logistics hurdles and buying interest from Chinese refiners, she added.Russian oil exporter Gazprom Neft did not immediately respond to a Reuters’ request for comment.China’s imports of Arctic oil from Russia in March averaged 25,000 barrels per day (bpd), according to Vortexa.China has said it opposes unilateral sanctions, which have been imposed by the United States, EU and others aimed at curbing Russian, Iranian, and Venezuela energy revenue.Yet STS transfers are being used, according to one trader, because many Chinese buyers want to avoid being linked to tankers subject to such sanctions as they are wary of secondary sanctions and are willing to pay higher prices for these STS cargoes.For example, the VLCC Atila loaded 2.07 million barrels of ARCO from two sanctioned tankers in March in waters off Singapore and delivered the cargo to China’s port of Dongying in eastern Shandong province in April, Kpler data shows.Atila previously engaged in STS transfers involving Iranian oil.Arctic grades – ARCO, Novy Port, and Varandey – are produced in Russia’s northern regions, where harsh winter weather affects production and oil projects require huge investment.These grades are typically shipped from oilfields to floating storage in Murmansk and then shipped to end-users, making it difficult to track exports of each grade.These shipments currently take two months to reach China as tankers are travelling via the Suez Canal, with the STS adding to shipping costs. The shorter North Sea Route (NSR) to China is closed until July.“It’s a very long and expensive route,” one trader said. “The only idea is to evacuate barrels.”Light Arctic oil is offered at discounts to benchmark Brent prices, down from premiums previously, the traders said.Not all the Arctic oil cargoes are set to find a home soon as some of them are being stored on ships, traders said.For instance, tanker Fast Kathy loaded Arctic oil in Murmansk on March 14 and has been floating off Port Said in Egypt since April 9, LSEG data showed.India, previously the top buyer of Arctic oil, has cut purchases due to sanctions, traders said. Arctic oil going to India is mostly Varandey supplied by Litasco, the trading arm of Russia’s Lukoil LKOH, they added.Lukoil did not immediately respond to a Reuters’ request for comment.This month, Indian authorities barred a tanker from conducted an STS operation off the port of Mumbai involving a cargo of Russian crude.Other Arctic oil buyers include Syria, which received its first shipments earlier this year, and Myanmar.Source: Reuters
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NEGATIVE
https://www.hellenicshippingnews.com/baltic-index-rises-on-strong-rates-across-vessels/
2025-04-18T00:00:00
Baltic Index Rises On Strong Rates Across Vessels
The Baltic Exchange’s dry bulk sea freight index, which monitors rates for vessels moving dry bulk commodities, rose on Friday as demand increased across all vessel segments.The main index, which tracks rates for capesize, panamax and supramax shipping vessels, gained 20 points, or 1.6%, to 1,261. But the index was down 1% for the week, set for the fifth weekly loss in a row.The capesize index rose by 22 points, or 1.3%, to 1,678; the index fell 7% during the week.Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, increased by $179 to $13,913.The panamax index added 35 points, or 2.8%, to 1,273. The index was set for weekly gains of 2.8%.Average daily earnings for panamax vessels which usually carry 60,000-70,000 tons of coal or grain, was up $322 at $11,460.Among smaller vessels, the supramax index added seven points, or 0.7%, to 950 points and was on track for its second straight week of gains.The Baltic Exchange will not be trading on Friday and Monday in observances of Good Friday and Easter.Source: Reuters
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NEGATIVE
https://www.hellenicshippingnews.com/flng-gimi-completes-first-lng-offload/
2025-04-18T00:00:00
FLNG Gimi completes first LNG offload
Golar LNG Limited (“Golar”) is pleased to announce that FLNG Gimi completed the offload of its first full LNG cargo to the LNG carrier British Sponsor. This introduces Mauritania and Senegal to the international gas market and triggers the final pre-Commercial Operations Date milestone bonus payment to Golar under the terms of the commercial reset agreed in August 2024. Commissioning remains on track for a Q2 2025 Commercial Operations Date (“COD”). COD triggers the start of the 20-year Lease and Operate Agreement that unlocks the equivalent of around $3 billion of Adjusted EBITDA backlog (Golar’s share) and recognition of contractual payments comprised of capital and operating elements in both the balance sheet and income statement.Source: Golar LNG
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POSITIVE
https://www.hellenicshippingnews.com/imo-outcomes-of-the-marine-environment-protection-committee-mepc-83/
2025-04-18T00:00:00
IMO: Outcomes of the Marine Environment Protection Committee (MEPC 83)
The Marine Environment Protection Committee (MEPC) met for its 83rd session in person at IMO Headquarters in London (with remote participation enabled) from 7 to 11 April 2025. The meeting was chaired by Dr. Harry Conway (Liberia), with Mr. Hanqiang Tan (Singapore) as Vice-Chair.MEPC 83 highlights:Tackling climate change – Mid-term measures to reduce GHG emissions from international shipping approvedReview of the short-term GHG reduction measures – Phase 1 completedReport on the annual carbon intensity and energy efficiency of the fleetOnboard Carbon Capture and Storage (OCCS) and other energy efficiency mattersAddressing marine plastic litter – Action Plan approvedNorth-East Atlantic Ocean Emissions Control Area approved and Particularly Sensitive Sea Areas off Peru agreed in principleReview of the Ballast Water Management Convention – ongoingAir pollution prevention – various developmentsAmendments to NOx Technical Code adoptedPollution prevention and response – actions takenReports from other Sub-Committees approvedNew outputs approved1. Tackling climate change – Mid-term measures to reduce GHG emissions approvedThe Committee finalized and approved the draft legal text for the “IMO Net-Zero Framework”, to be included as a new chapter in Annex VI to the International Convention for the Prevention of Pollution from Ships (MARPOL). The draft amendments to MARPOL Annex VI were circulated to Member States immediately after the meeting, with a view to adoption at an extra-ordinary session of MEPC in October 2025. (See Circular Letter: CL No.5005 – Draft Revised MARPOL Annex VI )The IMO Net-Zero Framework includes a set of “mid-term measures” aimed at reducing greenhouse gas emissions from international shipping, in line with the reduction targets set out in the 2023 IMO GHG Strategy. These measures consist of:a technical element: a goal-based marine fuel standard designed to gradually lower the GHG intensity of marine fuels; andan economic element: a pricing mechanism for maritime GHG emissions.Following adoption, the measures are expected to enter into force 16 months later, under the “tacit acceptance” procedure, in accordance with the amendment provisions in MARPOL. (More details: IMO approves net-zero regulations for global shipping)Food securityThe Committee agreed that in the period between the adoption of the IMO Net-Zero Framework and its entry into force, further assessment (qualitative and quantitative, as appropriate) of the potential impacts of an increase in maritime transport costs on food security resulting from the adopted framework should be conducted. The Committee agreed to keep the potential impact on food security under continuous review.2. Review of the short-term measure to reduce GHG emissions – Phase 1 completedThe Committee finalized Phase 1 of the review of IMO’s short-term GHG reduction measures, which were adopted in 2021 and entered into force in 2022. Key elements of the short-term measures include: Energy Efficiency Existing Ship Index (EEXI), enhanced Ship Energy Efficiency Management Plan (SEEMP), and Carbon Intensity Indicator (CII) rating scheme. The measures aim to improve ship energy efficiency and reduce carbon intensity by at least 40% by 2030 compared to 2008.The review of the effectiveness of the short-term measures began in July 2023 (MEPC 80). Under Phase 1, the Committee gathered data from Member States about their experience implementing the short-term measures, analyzed this data and identified a list of challenges and/or gaps. At MEPC 83, the Committee took the following actions:Carbon intensity (CII) reduction factors for 2027-2030 – amendments adoptedThe Committee adopted amendments to the 2021 Guidelines on the operational carbon intensity reduction factors relative to reference lines (CII reduction factors guidelines, G3). These Guidelines outline the methods for determining the annual operational carbon intensity reduction factors and their values from 2023 to 2030 (indicating how much carbon intensity need to be reduced by ships over this period to meet targets), as referred to in Regulation 28 of MARPOL Annex VI. The amendments include newly defined CII reduction factors for 2027 to 2030.Access to the IMO Data Collection System for ship fuel consumption – amendments approvedThe Committee approved draft amendments to Regulation 27 of MARPOL Annex VI to make the IMO’s data collection system (IMO DCS) on ship fuel consumption more accessible to the public. The IMO DCS requires ships to record and report their fuel oil consumption, which is then used to calculate ships’ operational carbon intensity (CII). The amendments will ensure that all reported data in the IMO DCS are accessible to Parties to Annex VI, in a non-anonymized form. An anonymized database (i.e., identification of a specific ship will not be possible) will be made accessible to public users.Workplan for Phase 2 of the review of short-term GHG reduction measures agreedThe Committee agreed on a work plan for Phase 2 of the review of the short-term GHG reduction measures, to run from Spring 2026 to Spring 2028. Phase 2 will look at enhancing the SEEMP framework, further developing CII metrics, as well as ensuring synergies between the IMO carbon intensity/energy efficiency framework and the IMO Net-Zero Framework.Ship Energy Efficiency Management Plan (SEEMP) framework – amendments adoptedThe Committee adopted Amendments to the 2024 Guidelines for the development of a Ship Energy Efficiency Management Plan (SEEMP) (resolution MEPC.395(82)), to allow the possible development of other CII metrics at future MEPC sessions, as envisaged in the work plan for the review of the short-term GHG reduction measures.3. Report on the annual carbon intensity and efficiency of the fleetThe Committee noted the report by the IMO Secretariat on the carbon intensity of the international shipping fleet for the year 2023 (both demand- and supply-based), including a summary of carbon intensity developments of the fleet from 2019 to 2023. The report showed reductions in the carbon intensity of shipping ranging from 4.8% to 9.9% (depending on the method of calculation) from 2019 to 2023, and a decrease in total fuel consumption from 213 million tonnes in 2019 to 211 million tonnes in 2023.The report also indicated that, compared to 2008 levels, the average carbon intensity of shipping in 2023 has fallen by 31.0% (calculated based on supply measurement) and by 36.5% (based on demand measurement).4. Onboard Carbon Capture and Storage (OCCS) and other energy efficiency mattersThe Committee approved a work plan on the development of a regulatory framework for the use of onboard carbon capture and storage (OCCS). OCCS systems capture carbon produced by a ship before it is emitted into the air.The Committee adopted new Guidelines for testbed and onboard measurements of methane (CH4) and/or nitrous oxide (N2O) emissions from marine diesel engines.The Committee re-established the Correspondence Group on Measurement and Verification of Non-CO2 GHG Emissions and Onboard Carbon Capture, and tasked it with the following:further develop the framework for the measurement and verification of actual methane (CH4) and nitrous oxide (N2O) emission factors and fuel slippage values for marine diesel fuels;develop a regulatory framework for the use of onboard carbon capture and storage using the approved work plan; andsubmit a written report to MEPC 84.5. Addressing marine plastic litter from ships – Action Plan adoptedThe Committee adopted the 2025 Action Plan to Address Marine Plastic Litter from Ships (2025 Action Plan) agreed by the Sub-Committee on Pollution Prevention and Response (PPR 12), and approved updated groupings of short-, mid- and long-term actions under this plan.The 2025 Action Plan is expected to be eventually combined with the Strategy to Address Marine Plastic Litter from Ships in a single resolution at a later date, after the Strategy has been reviewed and updated by the PPR Sub-Committee.With regard to the carriage of plastic pellets in freight containers by sea, the Committee noted that PPR 12 included a dedicated action for the development of mandatory measures to reduce the environmental risks of plastic pellets transported by sea in freight containers in the above 2025 Action Plan.6. North-East Atlantic Ocean Emissions Control Area approved and Particularly Sensitive Sea Areas off Peru agreed in principleThe Committee approved a proposal to designate the North-East Atlantic Ocean as an Emissions Control Area for Sulphur oxide emissions (SOX), particulate matter (PM) and nitrogen oxide emissions (NOX). The associated draft amendments to MARPOL Annex VI will be submitted to the extraordinary MEPC session in October 2025, with a view to adoption as part of the revised MARPOL Annex VI.The Committee agreed in principle to the designation of the “Reserva Nacional Dorsal de Nasca” (Nasca Ridge National Reserve) and the “Reserva Nacional Mar Tropical de Grau” (Grau Tropical Sea National Reserve) as Particularly Sensitive Sea Areas (PSSAs). The Committee invited Peru to further develop the proposed associated protective measures and submit them to MEPC for consideration and approval at MEPC 84.7. Addressing harmful aquatic organisms in ballast water – BWM Convention review ongoingThe Committee continued its ongoing review of the Ballast Water Management (BWM) Convention, including stocktaking of the progress made and consideration of the way forward with regard to the overall plan for completion of the review, with some high-level decisions needed to facilitate the achievement of the review targets.The Committee re-established the Correspondence Group on Review of the BWM Convention to finalize draft amendments to mandatory provisions of the Convention (regulations and appendices in the Annex to the Convention, and BWMS Code) for submission to MEPC 84 for approval, with a view to adoption by MEPC 85.The revision of existing and development of new guidelines are expected to be completed ahead of the amendments’ entry into force.8. Air pollution prevention – various developmentsExhaust Gas Cleaning Systems (scrubbers)The Committee noted an update from the Sub-Committee on Pollution Prevention and Response (PPR) on regulating the discharge from EGCS or “scrubbers”. Interested Member States and international organizations were invited to submit new proposals on regulatory measures addressing the matter to PPR 13 in early 2026.The Committee requested the re-establishment of the GESAMP Task Team on EGCS to develop a standard methodology for the development of data sets and calculation of emission factors for use in the environmental risk assessment of the discharge water from EGCS, with a view to reporting its findings to PPR 13.Black Carbon emissionsThe Committee noted the ongoing work on the concept of “polar fuels” (fuels that are most suitable for use in the Arctic to minimize environmental impact) and extended the target completion year for this output to 2027, to allow additional time to further develop the concept.Nitrogen Oxide (NOx) emissionsThe Committee adopted the 2025 Guidelines on Selective Catalytic Reduction (SCR) Systems. SCR systems are active emission control technology systems used to reduce NOx emissions.9. Amendments to NOx Technical CodeThe Committee adopted amendments to the NOx Technical Code 2008 related to the following:use of multiple engine operational profiles for a marine diesel engine, including clarifying engine test cycles (expected entry into force 1 March 2027);certification of an engine subject to substantial modification or being certified to a tier to which the engine had not been certified at the time of its installation (expected entry into force 1 September 2026).The amendments will allow ships to optimize fuel consumption based on their operational profile, thus improving energy efficiency, while ensuring compliance with NOx emission requirements.10. Pollution prevention and responseThe Committee considered and approved the report of the Sub-Committee on Pollution Prevention and Response (PPR12) and took the following actions:approved Interim guidance on the carriage of blends of biofuels and MARPOL Annex I cargoes by conventional bunker ships;approved Guidance on in-water cleaning of ships’ biofouling; andadopted amendments to the 2023 Guidelines for the development of the Inventory of Hazardous Materials, clarifying the relevant threshold in respect to cybutryne when samples are taken directly from the hull or from wet paint containers. The inventory is a key requirement under the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships.11. Reports of other Sub-CommitteesThe Committee, having approved the reports of the Sub-Committees on Carriage of Cargoes and Containers (CCC 10) and Implementation of IMO Instruments (III 10), and considered action requested of it by the Sub-Committee on Ship Design and Construction (SDC 11), took the following specific actions:Casualty analysis reports and derived statisticsThe Committee, concurring with the decision of MSC 109, endorsed the issuance of III.3/Circ.13 on Casualty analysis and statistics – observations on the quality of investigation reports.With regard to the outcome of the analysis of six Consolidated Audit Summary Reports (CASRs) containing lessons learned from 82 audits conducted under the IMO Member State Audit Scheme (IMSAS) between 2016 and 2022, the Committee concurred with the decisions of MSC 109 to:endorse the outcome of the analysis regarding the five main areas of recurrent findings and observations identified;endorse the outcome of the analysis regarding the most recurrent references recorded, which identified a lack of effective implementation of mandatory IMO instruments;concur with the four main areas of root causes, indicating reasons for the shortfall in the effective implementation and enforcement of mandatory IMO instruments and the audit standard, including specific issues/difficulties under each area.Draft Code on Alerts and Indicators, 2025The Committee approved, subject to a concurrent decision by MSC 110, the draft Code on Alerts and Indicators, 2025, and the associated draft Assembly resolution, developed by SDC 11, for subsequent adoption by the IMO Assembly at its next session (A 34).The draft 2025Code provides updated general design guidance and promotes uniformity for alerts and indicators required by the International Convention for the Safety of Life at Sea (1974 SOLAS Convention). It reflects updated instruments and new developments in the industry since the 2009 Code on Alerts and Indicators was adopted by resolution A.1021(26).12. New outputs approved, including development of a legally binding instrument on biofoulingThe Committee approved the following proposals for new outputs:Development of a legally binding framework for the control and management of shipsʹ biofouling to minimize the transfer of invasive aquatic species;Assessment of the implementation of the Hong Kong Convention through an experience building phase and development of clarifications and amendments to the Convention;Review and amendment of the NOX Technical Code 2008 to provide a means for certification of engines that operate on non-carbon-containing fuel or mixtures of carbon-containing and non-carbon-containing fuels; andDevelopment of guidelines for the management of ammonia effluent generated by ships using ammonia as fuel.Source: IMO
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NEGATIVE
https://www.hellenicshippingnews.com/record-breaking-carbon-emissions-in-ocean-container-shipping-heres-what-shippers-need-to-know/
2025-04-18T00:00:00
Record-breaking carbon emissions in ocean container shipping: here’s what shippers need to know
Latest data reveals global ocean container shipping emitted all-time high carbon emissions in 2024, driven largely by the impact of conflict in the Red Sea.The data, released by Xeneta and Marine Benchmark this week, is a timely reminder that, while the geo-political climate is heating up due to the US tariff announcements, we must not forget the actual climate emergency and the work that needs to be done in supply chains to combat it.With emissions heading in the wrong direction, it raises fundamental questions around whether the International Maritime Organization’s (IMO) target of net zero by or around 2050 is remotely achievable. Shippers must also understand the impact emissions regulations will have on their business and the role they can play in reducing carbon in supply chains.Record-breaking emissionsGlobal container emissions increased 14% in 2024 to 240.6m , comfortably surpassing the previous record of 218.5m tons of carbon set in 2021.To be clear, this record-breaking statistic should not be used as a stick to beat the maritime freight industry with because it is largely due to ships sailing longer distances around the Cape of Good Hope following the escalation of conflict in the Red Sea in December 2023.A new record high is the inevitable outcome of these diversions, both in terms of the increase in transport work and the record-high demand of laden containers being moved in 2024 as shippers responded to the Red Sea crisis by frontloading imports. Overall transport work (a measurement of tons of cargo moved multiplied by nautical miles sailed) increased 18% in 2024.Emissions on the agendaThe record-high emissions data is a timely reminder of the colossal task at hand following a meeting last week (7-11 April) of the International Maritime Organization’s (IMO) Marine Environment Protection Committee (MEPC) in London.Agreement was reached during the meeting on specific reduction targets on fuel intensity in container shipping, as well as the financial penalties for non-compliance (more details are provided later in this blog).Biggest increases coming from the biggest shipsFirstly, we must understand the detail behind the record-breaking emissions in 2024.The biggest increases in carbon emissions came from the largest ships, with these also the ones to experience the biggest increases in transport work.Emissions from ships between 14 500 and 20 000 TEU hit 24.2m tons in 2024. This is up 7.3m tons (+43%) compared to 2023.Ships over 20 000 TEU also saw large increases, up 35% from 2023 to 19.6m tons.The two categories of ships over 14 500 TEU accounted for 18% of total CO2 emissions from the container shipping fleet in 2024, but this statistic is cast in a different light when we consider they make up 25% of total global capacity.While ships over 14 500 TEU may have had the biggest year-on-year increases, they are perhaps not the main cause for concern.That is because ships between 8 000 and 12 000 TEU have a much higher share of total emissions.A higher base in 2023 means the 51.3 million tons of CO2 emitted by this category of ship in 2024 is only up 8% year-on-year. However, these ships account for more than fifth of total emissions despite only making up 20% of global container shipping capacity.The disproportionate relationship between share of shipping capacity and share of emissions is explained by bigger ships tending to be newer and therefore much more carbon efficient.Increase in transport work explains much of the emissions growth – but not all…Across many ship sizes the increase in emissions in 2024 is within a few percentage points of the increase in transport work.For example, ships between 14 500 and 20 000 TEU saw transport work increase 43%, in line with its growth in emissions.This significant increase in transport work has in part been made possible by fleet growth of 26% between December 2023 and December 2024 for ships with capacity between 14 500 and 20 000 TEU.There are however some exceptions where transport work growth and emissions growth aren’t aligned.On the positive side, emissions increases for smaller size ships are lower than transport work. This is driven by improved efficiency through higher capacity utilization and stable (if not slightly decreasing) average sailing speed.On a less positive note, the biggest ships over 20 000 TEU saw emissions increase 35% in 2024, more than double the 16.6% transport work growth.That gap is explained by falling efficiency for these larger ships.Firstly, sailing speed increased 5% in 2024, which adversely impacts fuel efficiency.Secondly, the ships saw a drop in utilization, which is measured in tons of cargo carried multiplied by nautical miles sailed divided by TEU capacity in tons multiplied by nautical miles sailed. Or in more simple terms, how much cargo ships carried compared to how much they could have carried based on its capacity.This utilization measure has fallen by almost 10 percentage points for the biggest ships compared to 2023.The explanation is quite straightforward – total capacity offered by the largest ships in the fleet has increased, while at the same time, demand growth on key backhaul trades slowed.This meant ships were even less full on these return legs than they were previously, which eats into a ship’s annual utilization.Fronthaul volumes, measured in TEU, grew 9.5% in 2024, while demand on backhaul trades rose only 0.9%.Regulation is comingTurning attention back to the IMO agreement in London last week, a key standard in this new regulation will be the fuel intensity used by global shipping. This is measured on a well-to-wake basis (including the full life-cycle of the fuel).Starting in 2028, ships must lower their fuel intensity by a certain percentage compared to the baseline set in 2008.There are two tiers when it comes to the reduction factors:Tier 1 – the base targetSet at a 4% reduction in 2028. A ship will pay USD 380 for every ton of GHG emissions above the base reduction target.Tier 2 – the compliance targetSet at 17% reduction in 2028. A ship falling between the base target and compliance target will pay USD 100 for every ton of GHG emissions or buy remedial units. Any ships outperforming the compliance target will earn surplus units, which can be banked for two years, or traded with non-compliant ships.Reduction targets will increase every year, with expectations of a 65% reduction in carbon intensity by 2040. Plenty of details still need to fall into place, many of which should come in October 2025 when the agreement is expected to be finalized, and adopted.While opinions on the deal are mixed, carriers now have more certainty on the path to decarbonization.Carbon reduction strategy for shippersWe must be realistic when it comes to priorities right now. With the threats of US tariffs on every nation in the world and more than 100% from China, it will be difficult to get carbon emissions in supply chains onto the board meeting agenda at the moment.However, while there are currently massive financial pressures for shippers, they can still include carbon reduction in their freight procurement strategy.The carriers are anonymized for this blog (Xeneta customers have visibility of Carbon Emissions Index data in the platform), but it is clear there is a significant spread in performance.It is important to stress that lower emissions do not always equate to lower freight rates. While it is understandable shippers will be prioritizing the optimal rate during negotiations for their next contract, this does not mean they cannot also factor in carbon emissions, especially when they are choosing between two carriers with similar price and service delivery.This data is also essential for those shippers looking to move more goods via ocean rather than the more expensive and more carbon intense air cargo.Source: Xeneta
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POSITIVE
https://www.hellenicshippingnews.com/trade-war-fallout-cancellations-of-chinese-freight-ships-begin-as-bookings-plummet/
2025-04-18T00:00:00
Trade war fallout: Cancellations of Chinese freight ships begin as bookings plummet
U.S. importers are being notified of an increase in canceled sailings by freight ships out of China as ocean carriers try to balance the pullback in orders resulting from President Trump’s tariffs and the escalation of tensions in the trade war.A total of 80 blank, or canceled, sailings out of China have been recorded by freight company HLS Group. It wrote in a recent note to clients that with the trade war between China and the U.S. leading to a demand plummet, carriers have started to suspend or adjust transpacific services.Major ocean freight alliance ONE has “suspended until further notice” a route it had previously been planning to bring back in May, which would include ports of Qingdao, Ningbo, Shanghai, Pusan, Vancouver, and Tacoma. Meanwhile, an existing route is planning to cancel its port call at Wilmington, North Carolina.The impact of the diminished freight container traffic to North America will be significant for many links in the economy and supply chain, including the ports and logistics companies moving the freight. If each sailing was carrying 8,000 to 10,000 TEUs (twenty-foot equivalent units), that would equal a decline in freight traffic of between 640,000-800,000 containers, and lead to decreased crane operations at the ports, lower fees that could be collected, and declines in container pick-ups and transports by trucks, rails, and to warehouses for storage.The World Trade Organization warned on Wednesday that the outlook for global trade has “deteriorated sharply” in the wake of Trump’s tariffs plan. JB Hunt shares hit their lowest level since November 2020 after commentary during the trucking company’s earnings call about the uncertainty from tariffs.“We have no way of knowing how significant this drop in orders will be on vessel schedules,” said Alan Murphy, CEO of Sea-Intelligence. “There are no models to extrapolate this. What I can tell you is the majority of containers on the vessels servicing the Asia to U.S. trade routes is China. We won’t go to zero containers, but we will see a decrease in containers and as a result, in the future, we will see a massive raft of blank sailings announced.”China accounts for approximately 30% of all U.S. containerized imports (down from 37% in 2018), but accounts for approximately 54% of all U.S. containerized imports from Asia (down from 67% in 2018).Bruce Chan, director of global logistics & future mobility for Stifel, said the tariff policy has created significant uncertainty with respect to consumer demand, and retailers have been positioning their businesses conservatively with inventory, especially given “scar tissue” from the recent overstock after the post-Covid supply chain squeeze from 2021-2022. “That uncertainty is beginning to manifest in blanked container ship sailings on core eastbound transpacific lanes, in our view, opening the potential for a double-digit decline in inbound containerized imports as early as next month,” he said.Booking volumes from the last week of March to first week of April across global and U.S. trade lanes plummeted. There were sharp decreases in bookings across several categories, including apparel & accessories; and wool, fabrics & textiles, both down over 50%. Major product categories from China that are moved in containers include apparel, toys, furniture, and sports equipment, all of which are subject to steep tariffs.As a result of the decrease in containers, ocean carriers will not only cancel vessels, but also adjust or cancel vessel routes commonly called “vessel strings,” such as the ONE service from China to Vancouver and Tacoma. These routes dedicating vessels to move the ocean freight at specific ports take months of planning. The elimination of vessels also impacts U.S. exports bound for Asia and relying on ships traveling in both directions.Ocean carriers need to move full vessels to generate a return on investment, but it is not in their best interest to use large vessels if they cannot be filled. To ensure vessels are used at full capacity, carriers have a number of ways to alter the vessel strings. Stretching out ship arrivals by canceling sailings is an option for container volume to better match capacity. According to Murphy, 99% of vessel services are weekly and it takes a vessel approximately seven weeks to make a round trip.“During Covid, ocean carriers parked their vessels for maintenance,” Murphy said. “Ocean carriers can also blank (cancel) a sailing, omit vessel strings entirely, use smaller vessels, or slow steam the vessels where they are traveling longer.”These measures will cut the available vessel capacity for containers, according to Murphy, which helps remaining ships to be filled, with uncertain implications for overall pricing in the ocean freight business. While a decline in sailings could lead to a drop in prices, during Covid, blank sailings were identified by shippers around the world as a reason for container rates that spiked as high as $30,000. In that case, shippers say the ocean carriers canceled sailings for longer than needed.Vietnam continues to gain on ChinaThe global supply chain demand and pricing situation remains fluid and subject to sharp short-term swings tied to tariffs policy. As Chinese trade comes under strain, a key metric in ocean freight rates shows Vietnam surging in early April.The “mid-low” ocean rates, which represent the costs of shipping goods for a larger-sized shipper on a particular ocean route, have jumped by 43% since March 30 for Vietnam. Xeneta calculates the market mid-low and market mid-high segments by looking at the values of the 25 and 75 percentiles of a trade lane rate.“The fact that the lower end of the market has been rising shows the heat is on,” said Peter Sand, chief analyst at Xeneta. He said that is continuing after Trump’s decision to pause what he called “reciprocal” tariffs on countries other than China for 90 days.“Shippers large and small all have to pay up for frontloading, as the ‘pause’ made the pulling forward of freight possible again,” Sand added.This demand from U.S. shippers importing goods can be seen in the increase in container shipping spot rates on the Ho Chi Minh City to Los Angeles ports route, jumping by 24% going into April.According to data compiled by Xeneta for 2025, the spread between China’s largest container port, Shanghai, and Vietnam’s largest container port, Ho Chi Minh City, has also narrowed per forty-foot equivalent unit (FEU) for shipments to the ports of LA and Long Beach.Even with increased costs for shippers, they will continue to bring in imports from non-China nations because the situation remains highly unpredictable, Sand said. “There is every possibility the higher tariffs come into effect 90 days from now or even at an earlier stage,” he added.Source: CNBC
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NEGATIVE
https://www.hellenicshippingnews.com/fortescue-and-cmb-tech-sign-agreement-for-ammonia-powered-ore-carrier-2/
2025-04-18T00:00:00
Fortescue and CMB.TECH sign agreement for ammonia-powered ore carrier
Fortescue has signed an agreement with Bocimar, part of CMB.TECH, to charter a new ammonia-powered vessel. This emphasises the commitment of both companies to decarbonise the shipping industry.The 210,000 dwt Newcastlemax vessel is expected to be delivered to Fortescue by the end of next year and will play a vital role taking iron ore from the Pilbara to customers in China and around the world.The modern, highly efficient vessel will feature a dual-fuel engine, making it capable of operating on ammonia that can be created using renewable energy.While Fortescue is committed to eliminating Scope 1 and 2 emissions from its Australian iron ore operations by 2030, its target of Net Zero Scope 3 emissions by 2040 reflects the challenge of eliminating emissions from the shipping of its products to customers and from steelmaking.Fortescue has taken a global leadership position by advocating for the early adoption of zero emission fuels such as green ammonia, widely accepted as the long-term solution, and the bypassing of transitional fuels such as biofuels and LNG.The Fortescue Green Pioneer, the world’s first class society approved dual-fuel ammonia-powered vessel, has been in London since early March and will soon embark on a tour of global ports to bring attention to the need for a hastened transition to zero emissions fuels.Fortescue Metals CEO Dino Otranto said: “Our landmark agreement with Bocimar sends a clear signal to the market – now is the time for shipowners to invest in ammonia-powered ships.“The days of ships operating on dirty bunker fuel, which is responsible for three per cent of global carbon emissions, are numbered. We continue to implore shipping regulators to show the character and leadership that is necessary to ensure this happens sooner rather than later.“Our agreement with Bocimar is just the beginning and is a critical step in addressing our Scope 3 emissions. Through the Fortescue Green Pioneer we have demonstrated that the technology to decarbonise shipping exists now.“We will continue to work with like-minded companies like Bocimar to transition our fleet to low and zero-emissions vessels and help accelerate the widespread adoption of green ammonia as a marine fuel.”Alexander Saverys, CEO of CMB.TECH, said: “Fortescue and Bocimar have been close partners for more than 20 years. We share the same values and are both passionate about decarbonising the maritime industry.“Based on our common belief that green ammonia is the fuel of the future, we were able to conclude this important agreement on the road to zero emission shipping.“This is the beginning of an exciting journey to build more ammonia-powered ships that will stimulate more green ammonia production projects. We need to decarbonise today to navigate tomorrow.”Source: Fortescue
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