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Ukraine: “Seafarers, cannot be collateral victims – they must be safe and secure”
IMO Secretary-General Kitack Lim said: “As the humanitarian crisis continues to unfold in Ukraine, I fully support and stand with UN Secretary-General António Guterres’ call for hostilities to cease immediately.
“I am gravely concerned about the spill over effects of the military action in Ukraine on global shipping, and logistics and supply chains, in particular the impacts on the delivery of commodities and food to developing nations and the impacts on energy supplies.
“Along with the people of Ukraine, innocent ships, seafarers and port workers engaged in legitimate trade should not be adversely impacted by this growing crisis.
“Shipping, particularly seafarers, cannot be collateral victims in a larger political and military crisis – they must be safe and secure.”
BHP and EPS welcome world’s first LNG-fuelled Newcastlemax bulk carrier for bunkering in Singapore by Shell
On 7 February, BHP welcomed Mt. Tourmaline — the world’s first LNG-fuelled Newcastlemax bulk carrier – that will transport iron ore between Western Australia and Asia from 2022. BHP has chartered five LNG-fuelled Newcastlemax bulk carriers from Eastern Pacific Shipping (EPS) for five years and awarded the LNG fuel contract to Shell.
On her maiden voyage, the vessel arrived at Jurong Port in Singapore for her first LNG bunkering operation (the process of fuelling ships with LNG) which will take place through the first LNG bunker vessel in Singapore, the FueLNG Bellina. FueLNG, a joint venture between Shell Eastern Petroleum and Keppel Offshore & Marine, operates the bunker vessel.
After LNG bunkering, the 209,000dwt vessel left for Port Hedland in Western Australia for Iron Ore loading operations.
BHP Chief Commercial Officer, Vandita Pant, said: “BHP works with our suppliers to embed innovative and sustainable solutions in our supply chain. This vessel delivers significant improvements to energy efficiency and emissions intensity, as well as reduced overall GHG emissions in our value chain. These achievements demonstrate BHP, EPS and Shell’s shared commitment to social value through innovative emissions reduction initiatives.”
“These LNG-fuelled vessels are expected to reduce GHG emissions intensity by more than 30% on a per voyage basis compared to a conventional fuelled voyage and will contribute towards our 2030 goal to support 40% emissions intensity reduction of BHP-chartered shipping of our products.”
EPS CEO, Cyril Ducau, said: “Today’s historic LNG bunkering is further evidence that the industry’s energy transition is in full swing. These dual-fuel LNG Newcastlemax vessels are a world’s first, but more importantly, they represent a culture shift in shipping and mining. These ships tell both industries that significant carbon emission reduction is available today and necessary to implement, as we work towards net zero solutions. EPS would like to congratulate BHP, FueLNG, MPA, and Shell for being leaders in the decarbonization movement.”
Chris Ong, Chairman of FueLNG and CEO of Keppel O&M, said, “LNG plays an important part in the clean energy transition . As the leading provider of LNG bunkering in Singapore, FueLNG is well positioned to support the decarbonization efforts of industry leaders such as BHP and EPS. With the ability to bunker a wide range of vessels, FueLNG is pleased to service the world’s first LNG-fuelled Newcastlemax bulk carrier and looks forward to the arrival of the next four
Suez Canal blockage raises many questions about future claims modelling, says NI webinar
The Ever Given case is another reminder of the fragility of global supply chains and the importance of shipping but it raises some important questions about the challenges facing insurers when modelling for such claims, delegates attending a Nautical Institute webinar were told.
While the initial claim by the Suez Canal Authority was in the region of $900m, it could end up being substantially lower, and underwriters are now asking whether they need to change their modelling when calculating for such big claims in the future?
Clyde & Co partners Simon Culhane and Jai Sharma, who legally represent over $170m of cargo aboard the vessel when the incident occurred, discussed the legal complexities of the case during the ‘Ever Given Cargo Webinar’ with members of The Nautical institute (NI).
“The original claim from the SCA for over $900m have caused underwriters to question if they could be exposed to far greater limits than are currently anticipated,” said Culhane.
“If you look at this voyage, the statistical risk on paper of such a casualty is modest,” said Jai Sharma, “but in practice it was a substantial exposure for insurers that is difficult to model.”
What is your exposure? $150m or $900m, and will it cause people to re-assess expectations arising from casualties in Suez, he told delegates.
An investigation into the cause of the blockage, which led to the death of a worker during the salvage operation, is still ongoing, making it difficult to establish liability and whether any damages must be paid.
The ‘Ever Given Cargo webinar’ is one in a series of NI-hosted talks that explore the maritime industry’s biggest issues.
