Maritime Matrix October 2024

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New Built Chinese Sub Sinks, marking a Setback in Naval Race with USA

The first Zhou-class submarine, a cuttingedge nuclear-powered attack vessel, sank at the Wuchang shipyard in Wuhan. This unfortunate incident marks a significant setback for China’s ambitions to expand and modernize its naval fleet amid an ongoing arms race with the United States.

The sinking occurred dockside sometime in May or June of this year but was first reported by The Wall Street Journal on Thursday. A senior U.S. defense official, who requested to remain anonymous, has since confirmed the event.

A series of satellite images illustrate the incident unfolding over several weeks, documenting the recovery efforts that followed. The submarine’s distinctive X-shaped stern facilitated its identification as a Zhou-class vessel. In the days after the sinking, a fleet of floating cranes arrived at the port, likely mobilized for recovery operations.

The third-generation nuclear submarine was initially spotted in satellite imagery as early as May 2021 and was formally unveiled by China’s navy in July 2022.

MMT

Red Sea Turmoil Knocks Out Suez Canal Earnings by a Shocking 60%

Egypt’s president announced on Sunday last that the nation has experienced a staggering 60% drop in Suez Canal revenues, translating to a loss of over $6 billion in recent months. This decline is largely attributed to attacks by Yemen’s Houthi rebels, which have disrupted shipping routes in the Red Sea.

President Abdel Fattah el-Sissi made these statements during a graduation ceremony at the Police Academy in Cairo. He underscored the seriousness of the current developments, stating, “The developments taking place are extremely serious and could lead to an expansion of the conflict in the region, affecting stability.” El-Sissi emphasized that the Suez Canal, a critical source of foreign currency for Egypt, has seen a significant decrease in revenue over the past seven to eight months.

The ongoing attacks carried out by the Iran-backed Houthis have compelled shipping companies to

reroute their vessels around the Red Sea, which directly impacts traffic through the Suez Canal, a vital link between it and the Mediterranean Sea. The Houthis have claimed their attacks are targeting vessels associated with Israel and its allies as an expression of solidarity with Hamas in Gaza.

This alarming situation poses not only an economic challenge for Egypt but also raises concerns about broader regional stability. The loss of revenue from the Suez Canal, crucial for the Egyptian economy, reflects the far-reaching impacts of geopolitical tensions on trade and security in the area. As the situation evolves, its effects on shipping routes, economic stability, and regional conflict dynamics will be closely watched.

MMT
- Kamal Chadha
Right at the start of the Houthi attacks it was predicted in an article by myself that Egypt stood to suffer economically the most from these attacks

Points of View

Much has been said about the China deceleration and it is beginning to look as if it is speeding up rather than finding a floor. The CSI 300 closed today at its lowest in nearly six years.

Latest data shows Chinese steel rebar prices at sub $430 a ton, the lowest level since early 2017, Aussie iron ore at sub $80 a ton FOB, the lowest since end 2022, China’s producer prices down 1.8% YoY in Aug, and its consumer prices up 0.7% YoY, although by only 0.2% after stripping out a big rise in food (particularly pork) costs.

Weak Chinese demand is undermining global commodity prices. China now threatens to export deflation, even as the Federal Reserve is still obsessed with inflation and has so far declined to cut interest rates.

WTI crude started the year at around $70 a barrel, before hitting a peak of $87 in early April. Now, it is back to $70. Henry Hub natural gas prices started the year at $2.60 per million BTU, surged to an annual high of $3.40 in midJanuary, and are now back to $2.40. Iron ore (62% Fe CFR China) started this year at $136 per ton before slumping to an annual low of $91 this week. Copper started 2024 at $3.90 per pound, peaked at $5.20 in May, and has retreated to below $4.20 today. Wheat started at around $629 a bushel, spiked to $720 by end May, and has since slumped to $555 today. Soybeans began at around $1,270 per bushel but have slipped to below $990 today. The common theme is elevated prices within the first half of the year, as optimism in the global recovery held, only to be replaced by falling prices as recession fears rose. These fears have been driven by the pernicious draining effect of high interest rates on consumer spending and by the malign global impact of a chronic China slowdown.

Brent crude is at its lowest price in three years on weak demand from the US and China.

One upshot of this is that Russia’s oil revenues have sunk to their weakest level since Feb with its Urals crude getting closer to $60 a barrel, the level of the G7 price cap. If the slide continues then it will deprive the dark fleet of business and play back into the hands of the regulated fleet.

OPEC had planned to raise output from October but will now postpone any decision until December. It faces a dilemma as its market share has steadily dropped from 36% in 2000 to 26% now. OPEC’s mainly MEG output is held back and is being replaced in Asian markets by incremental new output mainly from the US, Brazil and Guyana with help from Canada and Norway.

This represents a big ton-mile gain, especially for VLCC’s, that mitigates against the reduction in absolute seaborne volumes. However, OPEC’s patience may be tested by expanding Atlantic production and it could revert to the old ploy of flooding the market, depressing prices, and squeezing out higher-cost producers, including the US shale patch.

As Bloomberg reminds us, the cartel has launched two price wars during the last decade and may be on the cusp

of a third. With this risk in mind, the supermajors** might be faced with having to cut their large share buybacks that have sustained interest in their equity. Dividend payouts may also come under pressure.

It turns out that the IEA’s more modest forecasts of global oil demand growth are proving more astute than OPEC’s own bullish bets. Commodity market dynamics are changing, and we inevitably find ourselves looking to China for answers.

The Financial Times quotes economists at Morgan Stanley estimating that China needs to spend Rmb10tn ($1.4tn) over two years in stimulus funds to reflate the economy and return it to sustainable growth. This would be 2.5-times the bazooka package that it deployed in 2008 after the GFC.

It is needed to counter deflation and should be targeted directly at households and not to investment, manufacturing and infrastructure as it was back then.

The prolonged deep property slump has destroyed confidence and caused households to cut spending while increasing saving, taking the seasonally adjusted savings rate in Q2 to over 30%. There is a massive rise in the domestic supply of unwanted consumer goods that are now flooding export markets. They will meet tariffs along with EVs, steel, aluminium and refined oil products. China’s 2024 5% GDP growth target is slipping (4% YoY in Q2), needing resolute action. Other banks (Goldman, Macquarie & HSBC) broadly agree that a Rmb5-10tn stimulus package is required, a ‘shock and awe’ policy, to revive consumer spirits. Gavekal suggests Rmb3-8tn in direct transfers to households.

Let’s hope that the Politburo is listening as shipping will be missing a key demand component without a new big bazooka.

Dry Cargo Chartering

After stumbling last week, Capesize markets softened notably with talk of diminishing September cargoes in the Pacific and fewer coal tenders, while Atlantic activity remained relatively muted. Overall timecharter averages ended up at $25,620, a decline of $2,212 from last reported.

From Port Hedland, FMG took one TBN for the end of this month at $11.50 pmt, while four vessels were fixed for Dampier/Qingdao with freight ranging from $11.45 pmt to $11.60 pmt. Mercuria were also active from Western Australia fixing GH Nightingale (180,010-dwt, 2009) for 170,000 mtons 10% at $11.90 pmt and CIC Paola (179,999dwt, 2014) for 160,000 mtons 10% at $11.70 pmt.

From the Atlantic, CSN covered Itaguai/Qingdao loading first half of October at $28.25 pmt, while ECTP took First Phoenix (182,591-dwt, 2020) at $27.95 pmt, and Oldendorff fixed Star Marianne (178,906-dwt, 2010) at $27.45 pmt both ex Tubarao.

From Narvik, Cargill chartered an Oldendorff TBN to Jubail at $27.50 pmt, while Pacifist (181,458 2011) was fixed for 150,000 mtons 10% to El Dekheila at $9.90 pmt.

This week saw consistent modest gains for Panamax markets, with reports of better than last done being achieved for trans-Atlantic trips and growing demand from NoPac and Australia.

Timecharter averages on Friday ended at $12,849, up $1,204 from last week.

From the Pacific, Oldendorff took Admiral Jimmu (82,042dwt, 2020) delivery Nantong for a NoPac round trip with the option of Australia loading at $14,250, while Cargill fixed Golden Kiku (82,459-dwt, 2022) delivery Zhuhai for an Aussie round trip at $15,600.

On the Far East period front, K-Line took Medusa (82,194dwt, 2010) delivery Gunsan for 5/7 months trading at $15,500 with worldwide redelivery.

In the Indian Ocean, WBC fixed JY River (81,161-dwt, 2019) delivery Haldia for a trip via EC India to China at $17,000 with scrubber benefit to the Owners.

In the Atlantic, the same Charterers took Sterling Saga (82,908-dwt, 2013) delivery San Ciprian for a trip via the USEC to India at $21,000, while Mainline chartered Bright Venture (81,486-dwt, 2020) delivery APS ECSA for a trip with iron ore to the Continent at $16,000. On voyage, Vale fixed Caravos Glory (81,672-dwt, 2012) for 75,000 mtons 10% Ponta da Madeira/Eren at $15.75 pmt.

A mixed week for the Supramax market, the BSI63 closed at $15,977 up $48 since last week. In the Atlantic sentiment remained weak with limited fresh activity surfacing and a limited amount of enquiry. Medi Adriatico (60,550-dwt, 2016) was linked to Norden covering a vessel basis delivery Port Said for a trip with clinker redelivery Abidjan at $10,000.

From the Mediterranean, Spring Jasmine (63,441-dwt, 2023) was heard fixed basis delivery East Med. redelivery USA in the mid $7000s.

In the South Atlantic, Magic Seas (63,301-dwt, 2016) fixed delivery Brazil for a trans-Atlantic trip basis redelivery East Mediterranean at $18,500 while, Lowlands Luck (63,482dwt, 2023) fixed via East Coast South America for a fronthaul trip at $15,500 + $550,000bb with Crystal Seas.

In the Pacific, while overall it remained relatively flat with limited fresh cargo appearing from the south, there was a bit more interest in the nickel ore trades, which provided gradual improvements.

In the Pacific, Josco Taicang (58,675-dwt, 2012) open Weda was heard fixed at around $19,500 to a trip via Philippines to China with nickel ore. EM Jade (55,019-dwt, 2020) open Ganyu fixed for a trip via Philippines redelivery China with nickel ore at $15,500. Afros (63,223-dwt, 2018) was heard fixed basis delivery Koh-Sichang also for a trip via Indonesia redelivery WC India at $15,000. In the Indian Ocean, Sea Destiny (55,614-dwt, 2009) was heard fixed basis delivery Bin Qasim trip via Jubail redelivery East Coast India at $15,000.

The Handysize market cooled this week, with a softening of rates across board, the BHSI closed today at $12,731 a

drop of $308 since last Friday. Despite an influx of cargoes entering Black Sea and East Mediterranean markets, a backlog of prompt tonnage kept rates down, with Owners still fixing at around $7-8,000 per day for intra-med trips or trips to the Continent. A 33k-dwt fixed at $7,500 arrival Milos for a trip to Antwerp. A 39k-dwt fixed a grains run at $9,000 via Black Sea to Algeria with Norden.

The Continent was quiet with little reported activity, it was heard a 44k-dwt fixed on subs for a scrap trip to Turkey at 10,750 passing Skaw. Eco Cathar (38,494-dwt, 2012) open Casablanca fixed delivery Safi with fertilizers for a trip basis redelivery A-R-A-G range at $8,000 with Centurion. It was soft again in the US Gulf, Gullholmen Island (38,309-dwt, 2011) open Port Alfred fixed on subs for St Lawrence to Morocco with grains at around $16,000 to TMA, while Falcon took Ethra Gold (32,599-dwt, 2010) open Port Esquivel for a trip basis redelivery Iceland with Alumina at $14,650.

All eyes were on the South Atlantic, with rates continuing to drop at pace. It was reported CS Crystal (30,478-dwt, 2010 ) in ballast from Matadi fixed delivery arrival pilot station Bahia Blanca for a trip with grains to Santos at $13,000 to Weco Bulk. Imabari Logger (37,478-dwt, 2014) open San Lorenzo fixed via Upriver to Peru at $21,500 with Canfornav.

In the Pacific, the market remained stable despite the general lack of activity. While the tonnage count is increasing, healthy cargo volumes entering the market have generally kept rates around last done.

In the Far East, we have seen 2-3k difference in the bidoffer spread (8k-12k, per day), for trips to South East Asia on a 33k-dwt vessel in CJK.

In South East Asia, a 32k-dwt open Philippines was heard fixed at around $8,700 levels to North China, while a 28k-dwt passing Singapore was heard fixed at around $9,750 levels to the Far East.

Dry Bulk S&P

Two vintage Capes sold this week. Star bulk are reported to have offloaded their scrubber-fitted Star Triumph (176,343dwt, 2004 Universal) for $20m. A firm price comparing against the two years younger non-scrubber fitted Great Navigator (176,343-dwt, 2006 Universal) which sold for $19m at the end of July. The second is Glovis Ambition (172,559-dwt, 2002 Nippon Kokan) sold for $14.1m. Greek owners Alberta have picked up Kitaura (119,277-dwt, 2012 Sanoyasu) for $25m. The last mini-cape sold was Star Paola (115,259-dwt, 2011 New Times - Scrubber) in April for $23.5m.

In the Supramax sector Chinese buyers are rumoured to have acquired seven Hantong built Dolphin 57’s ranging from twelve to sixteen years old for an en bloc price of $80m. Elsewhere Sagarjeet (58,073-dwt, 2009 Tsuneishi Zhoushan) sold for $16.3m. This is in line with last done

Titan I (58,090-dwt, 2009 Tsuneishi Cebu) sold earlier this month for $16.2m, although it is worth noting she had a special survey due imminently, whereas Sagarjeet is not due till 2029.

Finally, looking at sales in the Handysize market, four Chinese built ships have been sold. A pair of 2011 built vessels, the larger of the two, Thomas Selmer (34,963-dwt, 2011 Samjin Weihai) achieved a price of $13m, while Maple Fortitude (32,491-dwt, 2011 Taizhou Maple Leaf) sold for $11m. A strong price for Thomas Selmer when comparing with the year younger DL Jasmine & DL Lilac (33,700-dwt, 2012 Samjin Weihai) sold for $12.6m each in July.

Recent months have seen a resurgence in the ordering of containerships. In June alone, more than 1m-teu was ordered, this itself would represent capacity worth more than 3% of the entire global fleet.

On a 3-month moving average basis, containership ordering is now back at its highest point since Q2-21, the peak of the last container ordering boom.

Other milestones hit in the last month include the product tanker order book now exceeding 20% of the fleet (dwtterms) and the slower crude tanker order book now inching above 10%.

The drybulk orderbook also saw numerous additions over the last month, most notably in the Panamax sector, boosted in particularly by over 30 Kamsarmax orders by COSCO. The Panamax order book now stands at 14% of the fleet. This ordering helps to explain and justify many of the trends we currently see in the newbuild market across sectors. Yard prices remain high and are still climbing gradually, and early delivery slots are becoming increasingly scarce. The flip-side to this however is yards are starting to move to increase capacity. Several major Chinese yards are looking to expand both physically in terms of facilities (i.e. building new or re-opening old drydocks) as well as bringing more labour and workstreams online.

Tanker Commentary

We have seen a slight uptick in VLCC rates this week (circa $5k/day on the headline Middle East - Far East route) which may provide some comfort to owners that better days are

on the horizon as we approach Q4. It has been a relatively quiet week though in the tanker S&P market with only two confirmed sales reported, both of which are within the crude sector. Athenian Carriers are understood to have committed their eleven-year-old VLCC, Captain X Kyriakou (299,991dwt, 2013 Hyundai - M/E engine) for $80m. The buyers are rumoured to be a group of Norwegian investors. VLCC sales of this age have been few and far between this year, but the price is in line with Miltiades Junior (320,926-dwt, 2014 SWS - scrubber fitted) which we understand was sold at a touch above $80m in the recent fleet deal between Capital Product Partners and Bahri. Following on from this, Mumbai based Great Eastern have sold Jag Lalit (158k-dwt, 2005 Hyundai - Ice 1B) in the region of $33m with delivery set to take place in the next couple of months. The buyers are unknown at this stage.

© Pure Ventures

China Scores with 2nd Box Ship Navigating Arctic Route

China Scores with 2nd Box Ship Navigating Arctic Route

Barely a week after a Panamax container ship successfully navigated the Arctic, a second vessel of this size, the NewNew Panda, has embarked on its own historic journey. The 4,363 TEU vessel set sail from Nansha, near Hong Kong, on September 19. Unlike last week’s Flying Fish 1, which boasted a low ice-class rating, the NewNew Panda is an ordinary container ship without any ice classification. This makes it the largest conventional container ship to attempt an Arctic crossing.

After traveling up China’s coastline and passing south of the Korean Peninsula, the ship has reached the Bering Strait. It has secured a permit from Russia’s Northern Sea

Route authority, allowing it to navigate along the Arctic’s main shipping corridor during the window of October 1-15. However, this navigation permit comes with restrictions, permitting the ship to sail only in icefree waters, regardless of whether an icebreaker accompanies it or not.

As early autumn sets in, sea ice is beginning to form around Wrangel Island in the Far East, adding to the challenges of the crossing. The NewNew Panda’s journey exemplifies the growing interest in Arctic shipping routes, which have become increasingly viable due to climate change and melting polar ice.

This Arctic venture represents not only a significant logistical achievement for the Chinese shipping industry but also a landmark event in maritime history, drawing attention to the potential for new trade routes in a changing climate. As further Arctic transits are explored, the implications for global shipping, trade dynamics, and environmental concerns will become increasingly critical.

DP World Nhava Sheva Launches India Red Sea Service with MV FOLK Jeddah’s Maiden Voyage

DPWorld, a leading global provider of smart end-to-end supply chain solutions welcomed the maiden call of the vessel M.V. Folk Jeddah at its Nhava Sheva International Container Terminal (NSICT). This maiden voyage marked the commencement of the India Red Sea Service (IRS). This new service will strengthen connectivity between key ports in India and contribute to enhanced trade flows across the Middle East.

The IRS service’s port rotation includes: Nhava Sheva, Mundra, Jeddah, and Salalah, providing vital links to India’s two of the largest major ports to along its route. By reducing transit time and improving access to major ports, the new route will further support strong trade link for bilateral trade between the Middle East and India, promoting efficient movement of goods.

Ravinder Johal, COO of Ports & Terminals, Operations & Commercial, DP World Subcontinent and MENA Region, marked the launch of the India Red Sea Service, saying: “This milestone aligns

with the government’s vision to increase exports by 2030. Our service streamlines supply chains, enhances connectivity to key ports, and boosts efficiency for businesses. Strengthening trade links between India and the Middle East, we aim to drive economic growth, facilitate access to emerging markets, and optimize supply chains.”

DP World remains committed to minimizing its environmental impact and ensuring sustainable trade operations. The company has made significant strides in integrating renewable energy and sustainable practices into its terminal operations in India, with the goal of leading the maritime sector towards a greener future. As part of this effort, DP World’s Nhava Sheva terminals initiative of open access sourcing of green power, with a cumulative capacity of 11 MW, is expected to replace approximately 75% of conventional energy needs at NSICT and 80% at NSIGT. This will lead to a 50% reduction in CO2 emissions.

Team Matrix

Jagdamba

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Logistics Skilling Gets a Boost: FFFAI Launches

PMKVY 4.0 Centre

The Federation of Freight Forwarders’ Associations in India (FFFAI) proudly inaugurated its Skill Development Center in Dronagiri, Maharashtra, on September 17, under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 4.0. The event marked a significant milestone in FFFAI’s efforts to bridge the skills gap in the logistics sector.

Eminent dignitaries, including Mr DS Garbyal, Commissioner of Customs (Nhava Sheva-I), and Dr Minakshi Vijayant Gupta, Principal of Uran Education Society’s College of Management and Technology, graced the occasion. FFFAI’s leadership, including Chairman Mr Dushyant Mulani, Immediate Past Chairman Mr Shankar Shinde, and Director General Dr Pramod Sant, were also in attendance.

In his welcome address, Dr Sant emphasized FFFAI’s initiative in the logistics sector and the critical role of skilling in shaping India’s future workforce. Mr Garbyal highlighted the importance of skilling in logistics, aligning with the Prime Minister’s vision of empowering youth to contribute to India’s aim of becoming a $5 trillion economy.

Other key speakers, including Mr Tej Contractor, President of the Indian Institute of Freight Forwarders (IIFF), and Dr Nirav Thakker, Hon. Secretary of IIFF, praised FFFAI’s commitment to providing joboriented programs and emphasized the significance of logistics skilling in today’s competitive job market.

The event coincided with the Prime Minister’s birthday, and Mr. Shankar Shinde noted the fitting occasion to launch FFFAI’s first batch of skilled logistics professionals.

Mr Mulani highlighted the vast opportunities in logistics, particularly with upcoming government initiatives, and emphasized the need for skilled professionals.

The Skill Development Centre’s inauguration marks a significant step towards building a skilled workforce in the logistics sector, aligning with India’s broader economic vision. FFFAI’s efforts have received congratulations from dignitaries, reinforcing its leadership in logistics skilling and commitment to creating a brighter future for India’s youth.

Empowering Future Generations

attributes his business acumen to his upbringing in Singapore, where he was exposed to business conversations from a young age through his father. A naturally outspoken individual, MJ is passionate about sports, sunshine, and boundless energy.

Throughout his career, MJ has experienced his share of failures, which have taught him invaluable lessons. He now strives to learn from others’ mistakes, embracing failures as stepping stones to success while exercising caution and balance. MJ believes in committing fully to endeavours, working hard, and celebrating equally hard, maintaining balance in life.

In the marine industry, MJ views success as a marathon, not a sprint. Outside work, he prioritizes family, dedicating weekends to his parents, sister, wife, and two children. Grateful for his excellent team and seasoned mentors, MJ stays focused on short-term and long-term goals.

MJ’s aspirations extend beyond business. He aims to establish non-profit schools in various countries, starting with India, providing education, textbooks, stationery, and basic meals to underprivileged children. This initiative seeks to empower them to transform their lives.

In a candid and insightful conversation with Delphine Estibeiro, Marex Media, MJ shares Apex Chemicals’ ambitious roadmap for India, underscoring the company’s dedication to developing eco-friendly products, cultivating a diverse workforce, and championing gender equality and inclusivity.

Strategic Growth Plans in India…

As part of our strategic growth plan, Apex Chemicals is prioritising the establishment of supply points across all coastal regions of India, ensuring seamless accessibility and efficient logistics. Building on this foundation, we aim to establish a state-of-the-art manufacturing facility in India by 2026, leveraging the favourable business environment and incentives introduced by the Indian government to attract foreign direct investments.

Eco-Friendly Evolution…

Apex Chemicals is implementing a multifaceted sustainability strategy. At our Singapore factory, we are installing solar panels to achieve self-sufficiency in electricity consumption. Beginning in 2025, we will systematically replace our fleet with electric vehicles, reducing our carbon footprint. Furthermore, we are actively researching and developing greener, plant-based surfactants to transition away from traditional surfactants derived from heavy crude oil.

Sustainable Maritime Solutions…

Apex Chemicals is committing to sustainable maritime solutions through strategic collaborations with Indian universities. Together, we will research and develop novel products that boost cleaning efficiency while minimizing environmental impact. This initiative supports the International Maritime Organization’s (IMO) ambitious decarbonization goals.

Revolutionizing Ship Cleaning…

Beyond cleaning products, Apex Chemicals has dedicated significant resources to researching and developing cutting-edge equipment. These innovations drastically reduce ship cleaning time and chemical requirements, resulting in

substantial decreases in chemical and wash water disposal worldwide. By introducing these groundbreaking solutions, we are confident in our ability to positively impact the maritime industry.

Inclusion Drives Success…

We cultivate a vibrant, diverse community, welcoming individuals from all cultural, racial, ethnic, and religious backgrounds. This inclusive ethos, shaped by the Singaporean government’s emphasis on unity in diversity, is fundamental to our core values. By embracing our differences, we create a harmonious, high-performing work environment.

Power of Teamwork…

Apex Chemicals is proud to report exceptional performance, characterized by robust growth and consistent target exceedance. This achievement is a direct result of our talented and committed colleagues, who embody the company’s values of innovation, efficiency, and excellence. As we continue to leverage these strengths, we are well-positioned for sustained expansion and long-term profitability.

Vision-Driven Decision Making…

To reconcile short-term pressures with longterm goals, Apex Chemicals adopts a holistic approach, aligning immediate actions with our overarching strategic vision. We achieve this through prudent resource allocation and open communication channels, ensuring unwavering focus on future growth.

Apex Chemicals Strengthens Indian Footprint with Mumbai Expansion

On September 27, Apex Chemicals (S) Pte Ltd achieved a significant milestone with the inauguration of its state-of-the-art office at Mumbai. This strategic expansion demonstrates the company’s deepening dedication to India’s thriving maritime and industrial sectors. As a renowned expert in chemical manufacturing and distribution, Apex Chemicals serves a diverse range of industries.

The grand opening of Apex Chemicals’ Mumbai office was a landmark event, attracting esteemed dignitaries from India’s maritime sector. Prominent attendees included Mr. Pradeep Sudhakar, Deputy Chief Ship Surveyor at DG Shipping, and Capt. Manish Kumar, Nautical Surveyor-cum-Deputy Director General (Tech) at DG Shipping. Apex Chemicals’ leadership, including Managing Director Mr. MJ Foo and Country Manager

(India) Capt. Amit Gharde, who skillfully moderated the ceremony, were also in attendance.

The inauguration ceremony commenced with a warm address by Capt. Amit Gharde, setting the stage for the momentous occasion. Mr. MJ Foo, Apex Chemicals’ esteemed ambassador, delivered a keynote speech articulating the company’s visionary strategy for its Indian expansion. “This milestone represents a crucial step forward in our commitment to the India shipping sector,” Mr. Foo remarked.

Mr. Pradeep Sudhakar, Deputy Chief Ship Surveyor, echoed Mr. Foo’s sentiments, praising Apex Chemicals’ commitment to India’s maritime growth. He said, “I’m honored to be part of this inauguration, marking a significant step in enhancing India’s industrial landscape.

“Apex Chemicals (S) Pte Ltd proudly announces its milestone expansion into India with the inauguration of our state-of-the-art Mumbai office. This strategic location symbolizes our unwavering commitment to delivering exceptional solutions to clients in the region. Beyond a workspace, it represents our dedication to fostering meaningful relationships and driving business growth. The joyous memories from our opening ceremony will remain etched in our history. Our India team is eager to seize emerging opportunities and fortify partnerships with valued business associates in this dynamic market.”

– Capt Amit Gharde, Country Manager, India, Apex Chemicals

“Efficient vessel operations and longevity rely on rigorous cleaning and maintenance regimes. Consistency is key, sporadic efforts fall short. At Apex Chemicals, we pioneer tailored solutions and innovative services to optimize vessel performance. Dedicated to the Indian shipping industry, our commitment ensures enhanced operational excellence and a more sustainable tomorrow.” – Christopher Choo, Sales Director –Engine & Maintenance, Apex Chemicals

India’s government has made significant strides in supporting the maritime industry, and Mr Sudhakar highlighted this progress at the event. He specifically mentioned projects like Sagarmala, which is revolutionizing ports and logistics efficiency, making it easier for businesses like Apex Chemicals to thrive. But that’s not all - the government is also focusing on boosting domestic manufacturing, slashing logistics costs, and promoting eco-friendly practices in the maritime sector.

Capt. Manish Kumar took the stage, highlighting the enduring relationship between India and Singapore,

“Apex Chemicals offers a comprehensive range of tank cleaning and cargo hold cleaning solutions tailored to meet the unique requirements of our global clientele. Notably, our tank cleaning chemicals have earned esteemed NSF and IMO approvals, demonstrating our commitment to excellence. With our new Indian office, we’re poised to expand our partnerships and deliver the same exceptional standards of quality and service that have defined our international success.” – Tara Chan, Sales Director – Tank Cleaning & Cargo Hold Cleaning, Apex Chemicals

home to Apex Chemicals’ headquarters. He emphasized the vast growth opportunities in India’s chemical and maritime sectors, and his optimism for Apex Chemicals’ future in the country was palpable.

As Capt Gharde extended his vote of thanks, the atmosphere was filled with optimism. The Mumbai office inauguration symbolizes Apex Chemicals’ dedication to contributing to India’s economic growth, sustainability, and thriving maritime industry.

SETTING A COURSE FOR THE FUTURE

Revolutionizing Ocean Freight

DBSchenker launches its supply chain monitoring tool Ocean Bridge to provide customers with highest planning certainty down to vessel, shipment and container level in ocean freight. On an interactive map, Ocean Bridge shows accurate, AI based data around estimated time of departure, berthing and arrival of vessels plus their port rotations on the entire service loop. This complete visibility of maritime operations enables customers to manage their supply chain most efficiently. They are enabled to avoid unplanned transportation costs by proactively adapting to changes and disruptions at any time.

Thorsten Meincke, Member of the Management Board Air & Ocean Freight at DB Schenker: “DB Schenker’s customers are most empowered to make informed decisions and improve operational efficiency thanks to Ocean Bridge. This AI based tool represents a significant advancement in maritime logistics technology and underscores DB Schenker’s commitment to innovation and excellence in the logistics industry for the sake of our customers.”

Eva Grieser, Director Data Management & Architecture, Ocean Freight at DB Schenker: “Ocean Bridge is pairing dynamically augmented event chain data with artificial intelligence. Our customers

can take preventive action before challenges occur and thus avoid costs.”

At a single glance, the interactive map visualizes container information and offers a comprehensive overview. Utilizing telematic data and dynamic algorithms which include AIS (Automatic Identification System) positions and augmented port rotation details, providing fully predictive schedules of increased reliability. Users are presented with detailed vessel status and live location updates, as well as access to predicted service loops and port rotations as soon as the shipment is on the water. With full visibility on estimated time of arrival as well as berth predictions, users can plan more effectively and are enabled to take preventive actions in the event a disruption is forecasted and outlined. Added costs of delay potentially are minimized effectively managing the threat of disruptions during transit. Also, customers can significantly avoid unnecessary demurrage and detention costs by managing delays. In times of increasingly occurring global disruptions, the tool for instance identifies delays and gives the possibility to continuously recalculate routes, supporting timely decision-making.

Dutch Plans to Militarize OSVs May Kickstart Arming Race in Merchant Fleets

The Dutch Ministry of Defence has unveiled an ambitious plan to invest up to €1 billion in two new Ocean Support Vessels (OSVs), effectively commercial ships that are capable of being heavily armed, leading to a thinking that this move may transform future naval logistics in a dramatic manner.

Each of these ships measures 174 feet in length and displaces only 600 tons, operated by a minimal crew of just eight sailors. In contrast, the larger De Zeven Provinciën-class frigates stand at 473 feet and require a crew of approximately 230. This represents more than just a reduction in crew size; it signals a significant shift in naval strategy. The driving force behind this transformation is the concept of modularity. The Royal Netherlands

Navy has emphasized that these vessels will function as multi-tool platforms, featuring containerized weapons, advanced sensors, and other interchangeable units, including lifesaving systems. This modular approach means that the ships can be quickly adapted for various missions, enhancing operational flexibility.

Although modularity is not an entirely new idea in military and merchant shipping, the Dutch initiative sets a precedent by leveraging advanced technology to streamline naval operations dramatically. This shift raises an important question: could it ignite an arms race in merchant shipping?

As nations explore innovative ways to enhance their naval capabilities and optimize logistics, the landscape of maritime security may be poised for significant changes.

The implications of this investment extend beyond the Dutch Navy; they could influence naval strategies worldwide, as other countries may choose to follow suit or react to this new model of naval logistics. As we observe the unfolding developments in naval capabilities, the potential for increased competition in the realm of merchant shipping looms. This move by the Netherlands could herald a new era in how nations approach naval operations, emphasizing flexibility and efficiency.

- Kamal Chadha

WinGD introduces LPG ‘pre-fit’ option for operators aiming for ammonia trade

Swiss marine power company WinGD has introduced an option for its X-DF-A ammoniafuelled engines to be delivered capable of running on liquified petroleum gas (LPG). The ‘prefit’ solution will be of particular interest to vessels under construction for the anticipated global trade in ammonia, which will also be capable of transporting LPG.

Named X-DF-P for the propane that is LPG’s primary component, the solution will be released to enable first engine deliveries in 2027, when operators are likely to be considering in detail their anticipated balance between the LPG and ammonia trades. The engine, designed and optimised for ammonia fuel, will offer reliable and efficient running on LPG, with a minor modification preparing it to run on ammonia at a later date.

WinGD Vice President R&D Sebastian Hensel said: “This development highlights our continuous innovation in support of smarter sustainable ship power solutions. Our X-DF-A ammonia engine is already enjoying wide uptake amongst bulk carriers and gas carriers; the X-DF-P offers a valuable intermediate step for gas carrier operators who are keen to participate in the emerging ammonia trade

but are uncertain about the timing and impact on vessel engines and fuels.”

The ammonia trade worldwide is expected to grow significantly thanks to the chemical’s properties as an efficient energy carrier, which make it a viable medium in which to transport hydrogen from distant renewable energy production sites to areas of demand across the globe. The X-DF-P package will also enable operators using ammonia fuel to decide to use LPG in the future.

WinGD’s X-DF-A engine has already received multiple orders from operators planning to participate in the trade through the construction of multi-gas carriers, very large gas carriers or dedicated very large ammonia carriers. Its injection system can be adjusted for LPG with only minor modifications, while the material requirements of the two fuels mean that similar components can be used for each.

Engine sizes under development are those typically used by trade-relevant vessels, including 52- and 62-bore.

Sebastian Hensel Vice President R&D, WinGD
X-DF-P brings initial LPG capability for WinGD’s X-DF-A ammonia-fuelled engines

UK Govt Bats for More Protection for its Seafarers

The UK government has announced a draft Employment Rights Bill designed to strengthen protections for seafarers, a development that has garnered support from Nautilus International, the maritime union based in the UK. This bill, which will soon be introduced in Parliament, aims to toughen regulations pertaining to collective dismissals and enhance wage protections for seafarers within UK law.

One of the key provisions of the bill is the prohibition of the controversial “fire and rehire” practice. Employers will now be required to demonstrate that there are no reasonable financial alternatives before proceeding with staff dismissals. This important measure seeks to ensure fair treatment for workers and prevent unjust job losses.

Additionally, the bill addresses a significant loophole exploited by P&O Ferries in 2022 by reinforcing the requirements for collective redundancy notifications among foreign vessel operators. This initiative is particularly relevant in light of the public outcry following P&O Ferries’ sudden dismissal of

800 UK-based workers, who were replaced with cheaper foreign agency employees.

Under the proposed legislation, any vessel operators planning to lay off 20 or more employees will be obliged to notify the workforce and comply with established protocols before any redundancies take effect. This measure is intended to safeguard the rights of workers and ensure that they are treated with transparency and respect during potential employment changes.

Overall, the draft Employment Rights Bill represents a significant step towards securing better protections for seafarers, addressing past injustices while promoting fairness in the maritime industry. The support from Nautilus International reflects a broader commitment to advocating for the rights and welfare of maritime workers throughout the UK.

MMT
- Kamal Chadha

Nandan Elected Chairman, Shukla Secretary, Vij Treasurer, of Indian Maritime Centre

Padmesh Prabhune

The board of Indian Maritime Centre (IMC) has elected Devki Nandan as Chairman and Shankar Shinde as Vice Chairman during its first meeting held on Monday, October 14, 2024.

Capt. Sankalp Shukla will serve as Secretary, while Capt. Vikas Vij shall be the Treasurer for the IMC.

R. Ravi Kumar, Secretary General of the Indian Private Ports and Terminals Association (IPPTA), has been appointed as the acting CEO of the Indian Maritime Centre.

The board also approved the membership applications of the Association of Container Train Operators (ACTO) and the Indian Register of Shipping (IR Class) as members of the IMC.

Incorporated recently on September 27, 2024 with its headquarters in Powai, Mumbai, the Indian Maritime Centre (IMC), shall play a pivotal role with a unified approach for further developing the robust Indian maritime sector.

The IMC is expected to play a crucial role in shaping a unified maritime policy across various subsectors, focusing on creating an integrated Indian maritime ecosystem.

It will also represent the Indian maritime sector at international forums such as the International Maritime Organization (IMO), build global relationships, enhance visibility, and establish a strong brand for the Indian maritime industry.

Additionally, the IMC aims to act as a think tank for the Indian maritime sector.

The board also acknowledged Bhushan Kumar, former Joint Secretary (Sagar Mala) in the Ministry of Ports, Shipping, and Waterways, for his pivotal role in the formation of the IMC.

After assuming the role of IMC Chairman, Devki Nandan said, “It is a privilege and honour for me to serve as

the Chairman of IMC. We are committed to promoting, developing, and facilitating both domestic and international maritime trade, fostering economic growth in India and globally. The coming years are promising for the Indian maritime sector, with significant investments underway in cutting-edge technology, capacity building, and adopting international best practices.”

He added, “We pledge our full support to the government in developing and implementing maritime policies aligned with the Maritime India Vision 2030 and the Maritime Amrit Kal Vision 2047, aiming to position India as a global growth engine. As an industry, we have a great responsibility to shape the future meaningfully and effectively. This apex body will help the government and all subsectors adopt uniform policies, making this sector a global role model.”

The IMC has extended invitations to all trade associations, major ports, coastal state governments, state maritime boards, organizations, companies, institutions, maritime professionals, and other stakeholders directly or indirectly involved in maritime trade, to join the Centre in pursuit of its objectives through collective efforts.

The IMC Board comprises of:

• Devki Nandan, President, IPPTA

• Shankar Shinde, Immediate Past Chairman, Federation of Freight Forwarders Associations in India (FFFAI)

• Capt. Sankalp Shukla, Chairman, Foreign Owners Representatives and Ship Managers Association (FOSMA)

• Capt. Vikas Vij, President, ICC Shipping Association (ICCSA)

• Arjun Ashok Chowgule, President, The Shipyards Association of India (SAI)

• Maneesh Pradhan, Chairman, Maritime Association of Shipowners, Ship Managers and Agents (MASSA)

• Rahul Modi, President, Coastal Container Transporters Association (CCTA)

MMT

Ramifications for Indian Shipping & Trade of Escalating West Asia Attacks

Iran’s recent missile attacks on Israel have escalated tensions in West Asia, causing concerns about the accessibility of the crucial Red Sea shipping route for global trade. With fears that these tensions may result in prolonged disruptions, international shipping lines are bracing for potentially high freight rates. The situation has prompted significant anxiety among traders, both globally and in India, as they prepare for the ramifications of a sustained conflict.

The year-long conflict has taken a new and unstable turn, particularly with Israel redirecting its military operations from Hamas in Gaza to the Iranian proxy group Hezbollah in Lebanon. This strategic shift follows a series of dramatic explosions targeting Hezbollah members and the assassination of key figures within the group, further intensifying uncertainties in the region.

The implications of this escalation are vast, with global supply chains at risk and shipping costs expected to rise sharply if the Red Sea remains compromised. Historically, the Red Sea has served as a vital trade corridor, linking Europe and Asia, and any prolonged inaccessibility could disrupt trade routes dramatically. Already Egypt is reeling from the 60% hit its Suez Canal dues have taken so far.

Disruptions in key shipping routes, particularly through the Suez Canal and the Red Sea, have led to a 15-20 per cent increase in shipping costs, severely impacting the profit margins of Indian companies, particularly those exporting low-end engineering products, textiles, garments,

and other labour-intensive goods. This has led to declines in certain sectors, including machinery, steel, gems and jewellery, and footwear, despite an overall export growth to the European Union of 6.8 per cent.

As the situation develops, traders and shipping companies are navigating the complex landscape of rising tensions, assessing the potential for increased costs and delays. The ongoing conflict not only poses military threats but also economic challenges, underlining the interconnectedness of geopolitical stability and global commerce.

Consequently, industry stakeholders are keeping a close watch on the geopolitical climate, as the impact of these developments could affect markets worldwide. The uncertain path ahead raises questions about future trade dynamics in the region and the vital role of shipping routes like the Red Sea.

IRS Honoured at ShipTek International Awards 2024

Indian Register of Shipping (IRS) is proud to announce its double recognition at the prestigious ShipTek International Awards 2024, recently held in Mumbai. IRS was recognized as the Classification Society of the Year, and its Executive Chairman, Mr. Arun Sharma, was presented with the Lifetime Achievement Award – Maritime Services.

These accolades reflect IRS’ unwavering commitment to excellence and its pivotal role in shaping the future of the global maritime industry. The Classification Society of the Year award is a testament to the strides IRS has made in enhancing safety standards and driving sustainability across the maritime sector, underscoring our leadership in advancing technical and regulatory innovation.

Mr. Arun Sharma’s Lifetime Achievement Award recognizes his exceptional leadership, vision, and relentless efforts in steering IRS to become a globally respected classification society. His dedication has been instrumental in strengthening IRS’ position as a trusted partner in the maritime world.

As we celebrate these achievements, IRS remains committed to advancing industry standards, promoting innovation, and contributing to a safer and more sustainable maritime ecosystem.

On10th October, Mr Atit Mahajan, Managing Director of CMA CGM India, along with Mr Jean Vanmalle, Vice President of CMA CGM Inland Services (CCIS), inaugurated the CMA CGM Group’s new inland depot facility in Mundra, India. The facility is spread over a 4 hectares area and will be compliant with the highest international standards to meet the demand from in and around Mundra port. The inauguration ceremony was attended by representatives from the CMA CGM Group and CCIS India, Trade bodies and local officials.

A 4 hectares, state-of-the-art and sustainable inland container depot in Mundra

The CMA CGM Group has partnered with - Shubham Newport LLP (SNLLP) to create this high standard infrastructure. SNLLP is part of Shubham Group which is a third-generation shipping company based in Mundra with interests in various verticals of logistics such as Container Freight Station, Empty Container Depots, Warehousing and logistics.

The newly inaugurated CCIS Mundra depot is expected to handle approximately 155,000 TEUs per year from Mundra, which is one of the largest ports in India with a volume growth rate of 34% in the fiscal year 2023-24.

CMA CGM Group, a leading industry player in India, supporting customers’ supply chains through sea, land and logistics solutions

CMA CGM Inland service (CCIS) is the CMA CGM Group’s global inland logistics armand has a presence in more than 30 countries. CCIS started its operations in India in 2016. CCIS is now handling a volume of around 929,000 TEUs annually, holding a strategic network covering 8 strategic locations with 11 inland container depots across the country and 2 container freight station facilities in Dadri and Pipavav.

“We are very optimistic regarding the Group’s growth in India, which is a strategic country within CMA CGM’s network. With this depot, CCIS will cater to the demand of Mundra Ports with the world class standards of the CMA CGM Group” – said Mr Mahajan.

With more than 30 years of market presence in India, the CMA CGM Group is a leading industry player with over 15,000 staff members in India. CMA CGM connects the country to the rest of the world with 18 shipping services making weekly calls. CEVA Logistics, CMA CGM’s logistics arm, is currently present in 105 locations across 31 cities in India with approximately 870,000 square feet of warehouse space. With the acquisition of Stellar VCS in 2023, CEVA Logistics strengthened its position as a key player in Indian contract logistics, offering its new diverse customers a wide range of global and local expertise in addition to increased operational efficiency and innovation.

Marine fuel additives reduce emissions and enhance engine efficiency

World Fuel Services, A World Kinect (NYSE: WKC) Company, (World Fuel) has published a new white paper, in partnership with Infineum (a specialty chemicals company), which explores how additives in marine fuel can offer a range of benefits to ship owners and operators, including reducing emissions and fuel consumption.

Federico Vidili
Global Sales Manager, Infineum
Mark Tamsitt
Senior Vice President, Marine EMEA & Asia, World Fuel Services

The white paper, entitled ‘The Role of Additives in Reducing Marine Fuel Emissions and Enhancing Engine Efficiency,’ is a unique investigation into the benefits of using additives in fuel as the marine industry transitions.

As the shipping industry adopts lower-carbon, alternative fuels, including renewable diesel, ammonia, methanol and hydrogen, it benefits from cutting-edge additives, which can improve vessel efficiency, reduce fuel costs and enhance fuel stability. Additives are chemical products that enhance the performance and quality of fuels.

The white paper reveals that the use of additives can:

• Contribute towards reduced environmental emissions from vessels

• Enhance engine efficiency

• Reduce fuel costs

• Reduce maintenance costs and extend engine life, and;

• Provide enhanced on-board fuel stability and compatibility, leading to less sludge formation in storage tanks resulting in less fuel wastage

Amid a backdrop of increasingly strict emissions legislation worldwide, the shipping industry is

progressing towards the adoption of lower carbon fuels; however, it is likely that there could be a 10-15 year window during which period the use of heavy fuel oils will continue to power vessels as engine technology evolves and newer fuels become more widely available.

As fuel can represent up to 60% of total operating costs, vessel owners need to be hyper-conscious of efficiency management. Therefore, the use of additives to enhance the performance of fuel provides fleet operators with environmental and financial advantages during the energy transition.

The white paper was commissioned by World Fuel, which has a strategic partnership with Infineum. World Fuel acts as a global distributor for Infineum’s Marine Fuel Additives product line.

Mark Tamsitt, senior vice president, Marine EMEA & Asia, World Fuel Services said: “As the marine industry transforms its fuel strategies, the use of additives plays a crucial role in its energy journey and will help ship operators to meet sustainability requirements whilst also providing them with major financial savings.

“Our new partnership with Infineum demonstrates that we are committed to developing solutions for our customers and that we have leading-edge solutions available today to help them embrace a changing industry.”

Federico Vidili, global sales manager, Infineum said: “Our Infineum range of additives provides the marine industry with specific and unique benefits which can play an important role in maximizing engine performance and efficiency and also offer financial benefits.

“The collaboration with World Fuel is intended to overcome the challenges faced by operators worldwide as the move towards the alternative fuels develops.”

MHS Honors Legacy of VAdm RKS Ghandhi with Commemorative Lecture

The Maritime History Society (MHS), is an academic initiative of the Western Naval Command founded on 12 May 1978 to explore, study, promote and showcase India’s rich maritime heritage through books, seminars, research, heritage walks and visits, newsletters, and other maritime-themed events.

On 03 October, MHS held a talk on ‘The Life and Times of Vice Admiral RKS Ghandhi’ as part of the Monsoon Musings lecture series. The event delved into various aspects of Vice Admiral Ghandhi’s remarkable life and legacy. The Admiral, early in his service, had served in WW2 and was the ADC to Lord Louis Mountbatten. He had the rare distinction of having commanded naval ships in all naval wars and conflicts post-independence up to 1971 and also command of both Eastern & Western Fleets. He rose to serve as the Flag Officer Commandingin-Chief of the Western Naval Command from 21 March 1977 to 30 March 1979.

Upon retirement, he served as the Chairman of the Shipping Corporation of India (SCI) and later was the fifth Governor of Himachal Pradesh in 1986. After his demise, he chose to be united with the

seas that he adored and was given a burial at sea, as per his last wishes.

The panel for the event featured eminent speakers, Ms. Delna Ghandhi, the Vice Admiral’s daughter, Vice Admiral Krishna Raina, AVSM (Retd) and Vice Admiral AK Chopra, PVSM, AVSM (Retd), his former Flag Lieutenants and Shri Kamal Kant Kothari, former Executive Assistant to the Chairman at SCI, in conversation with Commodore Srikant B Kesnur, VSM, PhD (Retd).

The speakers provided not only a personal narrative of his personal life but also vignettes of his leadership qualities, professional values, strategic thoughts, contributions to SCI and his tenure as Governor of Himachal Pradesh.

The Chief Guest, Vice Admiral Sanjay J Singh, AVSM, NM, Flag Officer Commanding-in-Chief, Western Naval Command (WNC), later felicitated the guests. A recording of the talk will be hosted on the Maritime History Society’s social media handles.

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