Marine Log January 2022

ARINE OG M L www.marinelog.com

HELPING MARITIME PROFESSIONALS MAKE INFORMED DECISIONS

January 2022

WHO WILL OPERATE THIS

FIRST-OF-ITS-KIND

TOWBOAT?

The M/V Hydrogen One, the world’s first methanolfueled towboat, is set to debut in 2023.

SHIPBUILDING ON THE GREAT LAKES Q&A with Fincantieri Bay Shipbuilding

MODERN FISHING VESSEL Needs Influence Today’s Designs

SPECIAL DELIVERY: The Clean Canaveral Gets to Work

CONTENTS

27 DEPARTMENTS 2 EDITOR’S LETTER Cruise Industry Sees Challenging Start to 2022 4 INLAND WATERWAYS First Fully-Electric U.S. Towboats Set for 2025 6 REGULATIONS FMC Chairman Maffei: Shipping Laws Need an Update 8 WELLNESS Influencing a Goal in the New Year 10 VESSEL OF THE MONTH Clean Canaveral: Largest U.S.-Built LNG Bunkering Barge

20 FEATURES

18

WORLD FIRST: METHANOL-FUELED TOWBOAT Who Will Operate the First-of-Its-Kind Towboat?

The unique M/V Hydrogen One towboat is set to join Maritime Partners’ fleet in 2023

20

10 MINUTES WITH FINCANTIERI BAY SHIPBUILDING A Q&A with Fincantieri Bay’s Justin Slater What’s happening at the shipyard as they plan out new construction, repair and conversion projects?

22

FISHING VESSEL DESIGN Why Modern Fishing Boats Are Needs-Tailored Recent changes to commercial fishing vessel designs are likely to be good indicators of where some the sector is headed

24

A LOOK AT THE BULKER MARKET Can Recent Demand For Bulkers be Sustained? ... And can the industry meet decarbonization targets?

11 UPDATES • Halter Marine Awarded Contract for New Cutter • RFP Out for New Governors Island Ferry 15 INSIDE WASHINGTON Buttigieg and Vilsack Write Warning to Ocean Carriers 27 TECH NEWS Seawing Kite to Start Trials on Airbus RO/RO

Cover Photo Credit: Elliott Bay Design Group

29 NEWSMAKERS Nordberg Takes Helm at Swedish Club 32 SAFETY Wire Rope: The Importance of Verifying Your Terminations

January 2022 // Marine Log 1

EDITOR’S COLUMN

MARINELOG JANUARY 2022 VOL. 127, NO. 1 ISSN 08970491 USPS 576-910 SUBSCRIPTIONS: +1 (402) 346-4740 Fax: +1 (847) 291-4816 Email: marinelog@omeda.com PRESIDENT Arthur J. McGinnis, Jr. amcginnis@sbpub.com

The CDC recently raised its COVID-19 Travel Health Notice level for cruising from Level 3 to Level 4.

PUBLISHER Gary Lynch glynch@sbpub.com Photo Credit: Shutterstock

Cruise Industry Sees Challenging Start to 2022

U

nsurprisingly, cruise ship operators are anxious to get back to business as usual as safely as possible.

However, with the recent rise in Omicron infections, it may be a challenging pursuit.

At the end of 2021, Royal Caribbean Group became the first major cruise ship operator to release a statement on the impact of the Omicron variant of COVID19 on its business—and on the number of cases reported aboard its ships.

While it acknowledged that the new variant appeared to be more infectious but less severe than previous variants, the company said that recent experience on its ships is consistent with these observations.

The cruise ship operator said that since cruising restarted in the U.S. in June 2021, it has carried 1.1 million guests with 1,745 people testing positive—a positivity rate of 0.02%.

Furthermore, the vast majority of those cases had no symptoms or only mild symptoms, with only 41 people needing hospitalization.

None of the Omicron cases have been severe or needed to be taken to a hospital. “These figures are a result of almost everyone onboard having been vaccinated and having a negative test before boarding,” said the company.

Not one to downplay the impact of this virus over the last couple of years, the CDC recently raised its COVID-19 Travel Health

Notice level for cruising from Level 3 to Level 4, the highest level. The CDC advises: Avoid cruise travel, regardless of vaccination status.

CLIA, the Cruise Lines International Association, echoed similar sentiments to Royal Caribbean Group in its swift to response to the CDC, releasing the following statement: “The decision by the CDC to raise the travel level for cruise is particularly perplexing considering that cases identified on cruise ships consistently make up a very slim minority of the total population onboard— far fewer than on land—and the majority of those cases are asymptomatic or mild in nature, posing little to no burden on medical resources onboard or onshore. No setting can be immune from this virus—however, it is also the case that cruise provides one of the highest levels of demonstrated mitigation against the virus.”

All industry eyes are now on whether passenger cruise bookings will continue at their recent pace.

SENIOR EDITORIAL CONSULTANT Nicholas Blenkey nblenkey@sbpub.com ART DIRECTOR Nicole D’Antona ndantona@sbpub.com GRAPHIC DESIGNER Hillary Coleman hcoleman@sbpub.com MARKETING DIRECTOR Erica Hayes ehayes@sbpub.com PRODUCTION DIRECTOR Mary Conyers mconyers@sbpub.com SALES MANAGER David Harkey dharkey@sbpub.com SALES REPRESENTATIVE KOREA & CHINA Young-Seoh Chinn corres1@jesmedia.com CLASSIFIED SALES Frank Rose frose@sbpub.com CIRCULATION DIRECTOR Maureen Cooney mcooney@sbpub.com CONFERENCE DIRECTOR Michelle M. Zolkos mzolkos@sbpub.com CONFERENCE ASSISTANT Stephanie Rodriguez srodriguez@sbpub.com CONTRIBUTORS Emily Reiblein Crowley Maritime Corporation Tracy Zea Waterways Council Inc. SIMMONS-BOARDMAN PUBLISHING CORP. 88 Pine Street, 23rd Floor, New York, NY 10005 Tel: (212) 620-7200 Fax: (212) 633-1165 Website: www.marinelog.com E-mail: marinelog@sbpub.com

HEATHER ERVIN Editor-in-Chief hervin@sbpub.com

Marine Log Magazine (Print ISSN 0897-0491, Digital ISSN 2166-210X), (USPS#576-910), (Canada Post Cust. #7204564; Agreement #40612608; IMEX Po Box 25542, London, ON N6C 6B2, Canada) is published monthly by Simmons-Boardman Publ. Corp, 88 Pine St. 23rd Floor, New York, NY 10005.

Printed in the U.S.A. Periodicals postage paid at New York, NY and Additional mailing offices.

PRICING: Qualified individuals in the marine industry may request a free subscription. For non-qualified subscriptions: Print version, Digital version, Both Print & Digital versions: 1 year, US $98.00; foreign $213.00; foreign, air mail $313.00. 2 years, US $156.00; foreign $270.00; foreign, air mail $470.00. Single Copies are $29.00 each. Subscriptions must be paid in U.S. dollars only.

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2 Marine Log // January 2022

EDITOR-IN-CHIEF Heather Ervin hervin@sbpub.com

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INLAND WATERWAYS Inland Container-on-Vessel Plans Move Along six days and St. Louis in 10 days, significantly faster than traditional barge tows. The vessels will also be environmentally friendly, utilizing LNG (liquefied natural gas) power, and cargo flexible with ability to carry a diversity of cargo, including refrigerated containers.

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Vessels are designed with two patented features: an exoskeleton hull structure that limits lightship weight and a minimal wake bow structure.

P

lans for a new all-water container-onvessel (COV) trade lane between the Port of Plaquemines on the Lower Mississippi and the Midwest are picking up pace.

Hawtex Development Corporation has signed on as the lead developer for a new St. Louis region COV port in Herculaneum, Mo., in the St. Louis region. At the same time, American Patriot Container Transport LLC reports that it has issued a solicitation to seven U.S. shipyards for construction of four of the innovative river container vessels that will provide the new COV service.

The call for submissions, which includes an option for four additional vessels, was issued December 14 and proposals are due at the end of February.

In addition to the 2,375 TEU vessels, American Patriot Container Transport is

also planning a series of smaller 1,800 TEU “hybrid” vessels designed to move through locks and low-lying bridges on the tributary rivers, providing service to feeder ports along the Mississippi, Missouri and Illinois rivers in the St. Louis region and other upstream ports, including ports in Kansas City and Jefferson City in Missouri and in Joliet and Cairo in Illinois and Fort Smith in Arkansas.

Developed by Vancouver, B.C.-based Naviform Consulting and Research Ltd., both vessels are designed with two patented features, an exoskeleton hull structure that limits the vessels’ lightship weight to maximize cargo payload, and a minimal wake bow structure that minimizes hull resistance to allow an upriver speed of 13 miles per hour with minimal wake.

Expected round trip times to Memphis is

Initial plans for the project first emerged back in 2017 when American Patriot Holdings, the parent company of American Patriot Container Transport LLC, and Plaquemines Port Harbor & Terminal District in Louisiana first announced plans to develop a new intermodal container terminal on the lower Mississippi River able to accommodate both the largest Post-Panamax containerships and the new river container vessels.

Plans for the Port of Plaquemines terminal have been progressing steadily since then. Meantime, Hawtex Development Corporation, which has operations in Texas and Hawaii, has been working with American Patriot Holdings over the past several years to help in identifying and establishing market-ready locations for Mississippi River intermodal container facilities, with an initial focus on the Memphis and St. Louis regions.

In the St. Louis region, the Herculaneum site that is already home to Fred Weber/ RCP’s current port facility and adjacent to the parcel owned by the Doe Run Company emerged as the most advantageous site to develop a state-of-the-art intermodal container facility to serve this central Midwest region for both the export and import of containerized cargo.

The facility is in the early stages of development and the new partnership allows all parties to start planning efforts that enable final investment decisions. The total amount of the investment to be made at the new port is yet to be determined.

H

ouston-headquartered Industrial Service Solutions (ISS) reports that the first four fully-electric towboats to be built in North America are planned to be available for charter in 2025.

The towboats are being developed by New York City headquartered Zeeboat LLC to move container barges between terminals that serve containerships in deep-water ports.

ISS is providing Zeeboat with general contract, project management and vessel support services for the manufacture and delivery of the boats.

4 Marine Log // January 2022

Proven Hull Design The design will be based on The Shearer Group Inc.’s (TSGI) proven hull design for a 95- by 34-foot towboat.

The hull shape was developed by TSGI using advanced fluid dynamic calculations and data from vessels in service. The design has been proven to increase water flow to the propeller and increase overall efficiency of the barge/towboat combination by more than 10% over more traditional inland towboat designs.

According to ISS, the desig n when

coupled with an azipod drive system will improve overall transport efficiency by more than 30% when compared to conventional towboats.

Fully-Electric The vessels’ battery energy storage systems will be provided by Shift Clean Energy and will support fully electric operation.

Zeeboat and ISS also intend to work together on future decarbonization of ports through electrification, as the towboat charging infrastructure lends itself to expansion.

Photo Credit: American Patriot Holdings

First Fully-Electric U.S. Towboats Set for 2025

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REGULATIONS

FMC Chairman Maffei: Shipping Laws Need an Update

What FMC supply chain recommendations are starting to have an impact?

T

he Federal Maritime Commission (FMC) is at the tip of the spear on supply chain work.

FMC has at least three new supply chain initiatives: • The National Shipper Advisory Committee, established by Congress in late 2020, had its first meeting in October; • A Supply Chain Innovation Teams initiative started in December being led by Commissioner Rebecca Dye. It builds on Fact Finding 29, established to identify solutions to cargo delivery system challenges; and • The Maritime Transportation Data Initiative announced in November, led

by Commissioner Carl Bentzel focusing on standards and transparency.

Maffei Comments In a recent interview, FMC Chairman Daniel Maffei was asked about keeping all these teams pulling together, whether there’s a need for a “supply chain czar,” so to speak.

Maffei does not think such overarchi n g l e a d e r s h i p i s n e ce s s a r y. ( Ma f f e i emphasized that his comments were not on behalf of the entire Commission and that he was not speaking for his fellow commissioners.)

Maffei said the huge consumer demand at the core of the supply chain problem will eventually resolve on its own. The market will clear. “I think that it’s okay,” he commented, “to have a whole lot of different gardens bloom as long as we’re basically coordinating and working with 6 Marine Log // January 2022

the same purpose.”

Asked about when he hopes to see some actionable recommendations on supply chain issues, Maffei said he expects the overall analytical process will not be entirely straightforward. He noted, too, that new recommendations from Fact Finding 29 are already under consider-

The bill assigns FMC new responsibilities, from trade agreements to demurrage to new carrier freight reporting requirements.

ation. (Interim recommendations were released in July.) He expects the Commission to vote on some of these by the end of the year.

Learning As We Go Maffei’s view is that people aren’t going to go in a room to study supply chain issues for two years and then emerge with this big puzzle all figured out. “We’re going to learn all the way around,” he commented.

“As we go, I expect to get recommendations as they organically occur.” He said

he does not want to get recommendations just to meet calendar deadlines.

He added that not all recommendations will be within FMC’s purview. Good ideas, though, will be presented for larger discussion, possibly for action by other agencies.

In a follow up, Maffei was asked how long he thought it would be okay to wait, what if there were no recommendations, say, by March or April? “It would be great to have them [recommendations] sooner rather than later,” he commented, “but we also have to be realistic. The current crisis is not going to be solved overnight by a lot of these efforts.”

Ma f f e i s a i d t h a t re ce n t F M C s u p ply chain initiatives are starting to have impact. In addition to Fact Finding 29 he referenced the “Vessel-Operating Common Carrier Audit Program,” established in July at Maffei’s direction.

This program is an ongoing analysis of the top nine ocean carriers’ compliance with detention and demurrage charges.

“The audit is recommending things that the carriers should do,” Maffei commented. He added that if these ideas aren’t accepted voluntarily, then, as necessary, recommendations could move to rulemaking.

“We will make recommendations in the short run. In the long run we want to make sure that we have a level playing field and that expectations are clear and consistent throughout the industry,” he said.

In closing discussion, Maffei was asked about efforts to expand the commission’s scope of work.

Coincidentally, the day before, the U.S. House overwhelmingly passed (364-60) HR 4996, the Ocean Shipping Reform Act. The bill assigns FMC new responsibilities, from trade agreements to demurrage to new carrier freight reporting requirements. Right now, there’s no companion Senate bill.

For Maffei, Congressional attention is important. Current shipping laws date from 1998.

“If we’re expected to take on the kinds of actions that I think the administration and Congress would like us to take we are going to need some more resources and some additional authority. An update is a good thing,” Maffei said, “and I appreciate the time that’s been put on this.”

Photo Credit: Shutterstock/Travel mania

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WELLNESS COLUMN

Influencing a Goal in the New Year

A

new year often brings with it a resolve to exercise more, lose a bit of weight, and formulate a wiser, faster, thinner, and smarter human in the year to come.

As the weeks roll on, however, the plan sometimes loses its luster. This year, thanks to a group of researchers and exercise doers, we have more information about how to formulate and maintain a goal-oriented routine complete with behavioral adjustments that can keep us motivated and moving toward a desired result.

Formulating a healthy result can start with influencing our internal rewards system. This is not a new or novel idea, but an important basic concept for those to come. This idea revolves around using our own internal chemistry to drive repeated activities that will bring us to our goal.

Humans have a strong, hormonally-driven reward system that resides in the brain’s striatum region. This region coordinates multiple aspects of thinking and helps us make decisions.

Activating this system is not hard and while somewhat specific to an individual, certain activations occur commonly like some forms of physical activity, receiving a gift, positive attention, consumption of certain foods or drugs and many others. Once triggered a cascade of hormones like dopamine and other “feel good” communicators make us want to repeat the behavior.

Once we have a goal in mind, there are a 8 Marine Log // January 2022

few behavioral tweaks that researchers published in Nature Magazine (December 8, 2021) to help improve behaviors toward its achievement. This study examined the habits of 61,293 members of a fitness chain, who were engaged in a total of 54 different four-week exercise programs that encouraged them to get to the gym and work out.

At least 45% of the interventions used during the timeframe of the research project significantly increased weekly gym visits by between 9% and 27%. Instead of one workout a week, people achieved two to three.

Research shows that a combination of social pressure and individual monitoring together can be a significant motivator to prompt behavior. Text messages from those who know your commitment, friendly commitments, and general feelings of engagement in progress toward the goal proved heavily influential.

Reaching Goals In 2018, a study published in Digital Health said that with regard to social support, the “perceived social support are the strongest determinants of bodyweight exercise behavior, followed by outcome expectation.” Goals are better supported when they are known to more than just you and for maximum impact, your support system should help you celebrate milestones and redirect you when you are off track. Research tells us to find a positive buddy and use them well.

Influencing the reward mechanism is

Temptation Bundling Another reward type that was successful at keeping people motivated was “temptation bundling.” This could be a specific type of music you play only at the gym or listening to an audiobook that makes the moments spent working out more exciting.

A practical note about temptation bundling that can get overlooked is there needs to be a real temptation—not just a perceived one. If your temptation is listening to a certain type of music, but the gym music is so loud you can’t hear, your temptation then the action is less influential or perhaps even frustrating. Buy noise-canceling headphones, use a music/audible subscriptions service, etc. What you purchase or actions you take to create the temptation need to create the peak of the desired experience in order to be motivating.

Using a friend to help recognize milestones and working with some smartly conceived rewards and temptations can help bring action and intention into alignment as the year rolls on.

Nothing in this article constitutes medical advice. All medical advice should be sought from a medical professional.

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Director-Health, Safety, Security and Environment (HSSE) Crowley Logistics

Photo Credit: Shutterstock/Freebird7977

As the weeks of a new year wear on, meeting your goals can sometimes go downhill.

aided by micro-rewards. For example in the Nature Magazine study, rewards were given in the amount of about 20 cents per visit to the gym. This small reward was helpful, but here is where the research gets wonky.

A more motivating reward was given for returning to the gym after a planned workout was missed.

The researchers boosted the reward by nine cents for those who missed a planned workout, but came back to the gym to achieve the next one. This reward for a missed and then achieve behavior was highly motivating.

This additional nine cents made the difference in keeping the goal on track. Micro rewarding your planned milestones along with a reward for returning from adverse behavior is a new and potentially worthwhile addition to goal achievement.

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VESSEL OF THE MONTH

Clean Canaveral alongside at Fincantieri Bay Shipbuilding.

D

elivered last month by Fincantieri Bay Shipbuilding to Polaris New Energy, the 5,500-cubic-meter capacity Clean Canaveral is the largest ATB bunkering barge thus far built in the U.S. Attending the delivery ceremony were representatives and family members from Polaris New Energy, which is a subsidiary of Northstar Midstream.

Mac Hummel, CEO of Polaris, offered comments to the ceremony, as did Thomas Sullivan, senior vice president of operations for Polaris New Energy.

After thanking the team at Fincantieri Bay Shipbuilding, Hummel said, “And I recognize it’s not only all of you standing here today. It’s your families, it’s your loved ones, it’s your friends, and it’s the local businesses that support the shipyard. It’s local officials that also lend their support.”

Hummel also offered thanks for the continued support of the U.S. Coast Guard, American Bureau of Shipping, Vard for design services, and Wärtsilä for the LNG handling systems.

“When Northstar decided to enter the 10 Marine Log // January 2022

LNG bun kering business,” said Su l livan, “we reached out to several shipyards for bids. But based on our past experience with Fincantieri Bay, the incredible talent of the team that’s standing before me now, the welders, the pipe fitters, the electricians, the paint crew, and everyone behind the scenes, my hope was we could come to terms with Fincantieri Bay. And thankfully we did that, because the work that you’ve done is incredible.”

In keeping with maritime tradition, Sullivan’s daughter-in-law Candyce Sullivan ceremoniously smashed a bottle of champagne on a portion of the ship to present the Clean Canaveral.

A Look Inside the Vessel With dimensions of 340 feet overall length, 66-foot beam and depth of 32 feet, 10 inches, the vessel was designed by Vancouver, B.C.-based Vard Marine Inc., with a philosophy of utilizing proven technology.

It is fitted with four 1,350-cubic-meter IMO Type C tanks, utilizing a cargo handling system designed and developed by Wärtsilä. The barge will use the cargo handling equipment for continuous cargo

conditioning and to provide multiple levels of redundancy to maintain the LNG cargo’s pressure and temperature.

The Wärtsilä scope of supply includes the system design and integration, four LNG storage tanks, LNG pumps, a ship-to-ship transfer system, all necessary safety and control equipment, the valves and instrumentation, and the gas combustion unit.

Two MacGregor Rapp HP63-13F fixed boom cranes handle the hoses that transfer LNG from the barge to the vessel being fueled during bunkering operations.

The 63 feet long hoses are designed to handle 6,500 pounds at 42 feet outreach and 1,000 pounds at 63 feet.

Wärtsilä will also supply the LNG cargo handling and storage solution for a second vessel of similar size, on order at the Sturgeon Bay, Wis.-based shipyard for a Polaris New Energy affiliate.

In addition to the hardware, Wärtsilä will also provide the detailed design for the system as well as all necessary integration requirements.

The second barge will be able to load LNG from major terminals thanks to an elevated manifold feature.

Photo Credit:Fincantieri Bay Shipbuilding

Clean Canaveral:

Largest U.S.-Built LNG Bunkering Barge

UPDATE Halter Marine and TAI are finalizing the PSC design along with ABB, Trident Marine and other suppliers.

RFP Out for New Governors Island Ferry E L L I O T T B AY D E S I G N G R O U P (EBDG) reports that its design for a 190-

Credit: (Top) Halter Marine/TAI ; (Right) Elliott Bay Design Group

Halter Marine Awarded $555.2 Million for Polar Security Cutter THE NAVAL SEA SYSTEMS COMMAND, Washington, D.C., has awarded Pascagoula, Miss., shipbuilder Halter Marine Inc. a $552,654,757 contract modification that exercises an option for the detail design and construction of the second Coast Guard Polar Security Cutter (PSC).

Halter Marine says that initial efforts under this option will target the purchase of long lead-time materials, specifically the generator sets, necessary to support production while ensuring commonality across the first two PSCs. The PSC program is a multiple year Department of Homeland Security Level 1 investment and a U.S. Coast Guard major system initiative to acquire up to three multi-mission PSCs to recapitalize the Coast Guard’s fleet of the vessels.

“By building the second Polar Security Cutter, Halter Marine will continue its mission in delivering a national priority to the U.S. Coast Guard,” said Halter Marine president and CEO Bob Merchent. “Our talented workforce here at Halter Marine is proud to

be part of such an important endeavor.”

Design Details Halter Marine is teamed with Technology Associates Inc. (TAI) as the ship designer.

The ship design is based on the German “Polarstern II” design.

The Halter Marine and TAI teams are finalizing the PSC design along with the suppliers, who include ABB and Trident Marine for the icebreaker’s Azipod propulsion and power distribution system, Raytheon for command and control systems integration, Caterpillar for the main engines, Jamestown Metal Marine for joiner package, and Bronswerk for the HVAC system.

The vessels are 460 feet in length, with a beam of 88 feet overall, a full load displacement of approximately 22,900 long tons at delivery. The propulsion will be diesel electric, developing over 45,200 horsepower and readily capable of continuously breaking ice between six to eight feet thick. The vessel will accommodate 186 personnel comfortably for an extended endurance of 90 days.

foot passenger/vehicle ferry for the Trust for Governors Island is out for bid.

The ferry will operate between Lower Manhattan and Governors Island, a 172acre island in the hear t of New York Harbor that is now open to the public year round.

Sustainability solutions are at the heart of the island’s development and the new ferry is on track to be the first-ever hybrid vehicle and passenger ferry in New York Harbor and will be designed for future all-electric operation.

According to documentation in the RFP package, “the vessel will be equipped w ith a batter y hybr id diesel elec t r ic propulsion system. Propulsion will be provided by two variable speed, reversing permanent magnet motors rated for 540 kW at 670 rpm. Drive will be through two Voith Schneider Propellers, one at each end of the vessel. The hybrid propulsion system shall be optimized for fuel consumption, engine hours, and to minimize exhaust gas generation.

“The vessel shall be configured for future all electric operation w ith increased battery capacity and a future addition of shore power charging facilities.

“Instal le d hy br id e quipment shal l be all electric ready including for conn e c t i o n o f t h e n e ce s s a r y a d d i t i o n a l batteries and the higher capacity shore power transformer. Space allocation for additional batteries to be provided in battery rooms, though HVAC and cooling upgrades will be necessary at time of battery installation.”

Proposals are due on February 14, 2022.

The ferry will operate between Lower Manhattan and Governors Island.

January 2022 // Marine Log 11

UPDATE The replacement ship will be procured through a competitive construction process, the first phase of which will be completed in a 10-12 month period.

BIZ NOTES

Alaska to Move Ahead on New Ferry ALASKA’S STATE FERRY SYSTEM, the Alaska Marine Highway, is set to at long last get a replacement for its 57-year-old ferry Tustamena, which is now costing the state $2 million a year in repairs.

The state received a final design and specifications package for the replacement vessel from Glosten in February 2016.

On December 4, 2021, Alaska Gov. Mike Dunleavy and Transportation Commissioner Ryan Anderson finally announced a plan to “re-energize” the Alaska Marine Highway System that includes the Tustamena replacement.

The marine highway serves 35 communities in Alaska and transports goods, vehicles and passengers between communities. The ocean highway also links coastal communities to Alaska’s highway and rail network.

Ferry Costs The replacement vessel is estimated to cost $200 million to $250 million and will be competitively bid. The new ship is expected to begin service in 2027. Its vehicle and passenger capacity would increase by 40% over the Tustumena, from 34 to 52 vehicles and from 160 to 250 passengers.

“The new vessel will make the fleet more resilient and responsive to the needs of coastal communities—through more passenger and vehicle space, but also 12 Marine Log // January 2022

more fuel efficient engines, diesel and electric propulsion systems, and an efficient design to move through the water easily,” said Anderson. “It will be built to serve coastal communities throughout our system, allowing flexibility to move our ships around dur ing annual layups.” The functional design of the ferry is complete.

The Alaska Department of Transportation & Public Facilities will fund the vessel over multiple years using federal funds. Those funds are expected to come from the massive just-passed infrastructure act. The bill creates a new program for “essential ferry service” for rural areas.

The eligibility criteria are that the ferry has to serve at least two rural communities that are at least 50 miles apart. Most U.S. ferry systems travel much shorter distances and observers believe that provision is in there thanks to U.S. Sen. Lisa Murkowski (R-Alaska).

The replacement ship w il l be procured through a competitive construction management process/general manager process, the first phase of which will be completed in a 10-12 months period.

It is exit is expected that the new ship will be placed in service in early 2027.

Meantime, the Tustamena will get $8 million in upgrade and replacement work, with an estimated return to service date of June 30, 2022.

Arlington, Va.-headquar tered Venture Global LNG has signed 20-year sales and purchase agreement with CNOOC Gas & Power Group Company Ltd., a wholly owned subsidiary of China National Offshore Oil Corporation (CNOOC).

This is the first LNG supply agreement signed by a U.S. exporter with CNOOC, China’s larges t impor ter of LNG. Under the deal, Venture Global will supply 2 million tonnes per annum of LNG on a free on board basis from its Plaquemines LNG export facility, in Plaquemines Parish, La. In addition, CNOOC Gas & Power will purchase 1.5 million tonnes o f L N G f r o m Ve n t u r e G l o b a l ’s Calcasieu Pass LNG facilit y for a shorter duration.

“Venture Global is pleased to announce the expansion of our footprint in Asia through two new deals to supply the Chinese market with clean, low-cost U.S. LNG,” said Mike Sabel, CEO of Venture Global LNG. “China is critical to global climate efforts, and LNG supplied by Venture Global will ser ve as an impor tant addition to their low carbon energy mix for decades. This new long-term partnership with CNOOC builds on our company’s continued momentum in a very active 2021.”

“As China’s largest LNG importer, CNOOC is commit ted deeply not only to the mission of securing China’s gas supply, but also to the climate goals of building a carbonneutral China by 2060,” said Shi Chenggang, chairman of CNOOC Gas & Power. “ We are pleas e d to announce our long-ter m LNG cooperation with Venture Global.

By signing the SPAs with Venture Global, CNOOC will be able to further improve its ability to meet China’s increasing gas demand, whilst provide solid suppor t for China’s energy transition pathway to build a more ‘beautiful China.”

Credit: AMH

CHINA TO IMPORT U.S. LNG FROM PLAQUEMINES TERMINAL

UPDATE

Solstad Offshore Going Greener with Innovation Norway Grant

U.S.

OFFSHORE

SERVICE

VESSEL

in battery hybrid conversion projects, supported by an Innovation Norway grant of NOK 87 million (almost $10 million).

Solstad plans to upgrade a total of 11 vessels over the next three years. They will undergo battery hybrid conversions and will be able to connect to shore power in ports and harbors. After completion of this program Solstad will have a total of 21 battery hybrid vessels in its fleet.

Zero By 2050 The planned upgrades will lead to an annual reduction of 12,000 tons of CO2 emissions

140FT

operators often point to Norway as a country that has gotten energy policy right, by continuing offshore oil and gas production while providing operators with incentives and support to ensure that those activities are as green as possible.

One example of this policy in action is provided by Norway’s largest offshore service vessel operator, Solstad Offshore ASA. It is targeting a 50% global fleet emission reduction by 2030. Over the next three years, the company will be investing more than NOK 300 million (about $34 million)

and will play an import party in hitting company’s target of a 50% emission reductions by 2030 and ultimately zero emissions by, at latest, 2050.

In 2021, Innovation Norway introduced a scheme to support the removal of older vessels from the market and at the same time fund upgrades of existing vessels with green technology. In October, Solstad announced plans to recycle seven vessels, and this work will be performed at specialized yards in Norway.

“This major grant from Innovation Norway allows us to step-up up our green technology investment program,” says Tor Inge Dale, chief sustainability officer at Solstad Offshore. “The list of vessels includes some of our largest construction vessels that will after conversion contribute to considerable CO2 emission reductions.”

“Innovation Norway is pleased to see that this funding arrangement can assist on speeding up both the needed work to recycle older offshore vessels as well as provide considerable contributions to fund important decarbonization projects in this segment,” says Sigbjørn John Huun, Special Advisor, Innovation Norway.

High-Speed Subchapter K Passenger Vessel

Credit: Solstad Offshore

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January 2022 // Marine Log 13

UPDATE

New Rule on Fire Safety of Small Passenger Vessels IN RESPONSE TO THE DEADLY Conception dive boat fire, the U.S. Coast Guard has issued an interim rule as the first step to implementing statutorily mandated requirements for fire safety on certain covered small passenger vessels.

“The Coast Guard’s interim rules addressing the recommendations the NTSB issued following its investigation of the deadly Labor

Day 2019 fire aboard the Conception are a welcome step towards improving the safety of passengers and crew on small passenger vessels,” said National Transportation Safety Board Chair Jennifer Homendy. “Although there is more work to be done, including the implementation of safety management systems for passenger vessel operations, we are encouraged by the Coast Guard’s actions and

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look forward to reviewing the interim rules” This interim rules add requirements for small passenger vessels that include fire detection and suppression systems, avenues of escape, egress drills, crew firefighting training, watchmen monitoring devices, and the handling of flammable items such as rechargeable batteries.

Section 8441 of the Elijah E. Cummings Coast Guard Authorization Act of 2020 (2020 CGAA) amended Title 46 of the United States Code (U.S.C.), section 3306, which now directs the Secretary of the Department of Homeland Security (DHS) to prescribe fire safety regulations for certain “covered small passenger vessels,” defined as small passenger vessels (SPVs) with overnight accommodations for passengers or operating on Oceans or Coastwise routes, excluding fishing vessels and ferries.

The 2020 CGAA added a new paragraph to section 3306 which requires the Secretary to issue interim requirements to cover the following eight provisions: • Marine firefighting training programs to improve crewmember training and proficiency, including egress training for each member of the crew; • Interconnected fire detection equipment and additional fire extinguishers and firefighting equipment in all areas on board where passengers and crew have access; • Installation and use of monitoring devices to ensure wakefulness of the required night watch (for covered SPVs with overnight passenger accommodations); • Increased fire detection and suppression systems in unmanned areas with machinery or areas with other potential heat sources; • No less than two independent avenues of escape for all general areas accessible to passengers, that are constructed and arranged to allow for unobstructed egress, located so that if one avenue of escape is not available, another avenue of escape is available, and not directly above, or dependent on, a berth (for covered SPVs with overnight passenger accommodations); • Handling, storage, and operation of flammable items, such as rechargeable batteries, including lithium-ion batteries; • Requirements for passenger emergency egress drills (for covered SPVs with overnight passenger accommodations); and • Providing all passengers a copy of the emergency egress plan for the vessel (for covered SPVs with overnight passenger accommodations).

INSIDE WASHINGTON

Buttigieg and Vilsack Write Warning to Ocean Carriers

T

wo Biden administration cabinet members, Secretary of Transportation Pete Buttigieg and Secretary of Agriculture Tom Vilsack, have written leading ocean carriers.

They urge them to help mitigate disruptions to agricultural shippers of U.S. exports and relieve supply chain disruptions created by the COVID19 pandemic by restoring reciprocal treatment of imports and exports and improving service.

They say that “poor service and refusal to serve customers when the empty containers are clearly available is unacceptable and, if not resolved quickly, may require further examination and action by the Federal Maritime Commission.”

According to the secretaries, “ocean carriers have made fewer containers available for U.S. agricultural commodities, repeatedly changed return dates and charged unfair fees as

the ocean carriers short-circuited the usual pathways and rushed containers back to be exported empty. Many ocean carriers suspending service to the Port of Oakland exemplify the poor service and refusal to serve customers. DOT and USDA are calling on the carriers to more fully utilize available terminal capacity on the West Coast.

“The Port of Oakland, Port of Portland, and other West Coast ports have excess capacity to alleviate supply chain congestion. However, the suspension of service by ocean carriers at the Port of Oakland earlier this year has required agricultural exporters to truck their harvests to the already heavily congested Ports of Los Angeles and Long Beach.

“Restoration of service would not only ease the congestion at the Ports of Los Angeles and Long Beach in Southern California but would allow the prompt export of American goods overseas and ease the strain

on the supply of long-haul truckers necessary to transport goods from Northern California to Los Angeles and Long Beach.”

Ocean Carriers Contacted The letter was sent to Ed Aldridge, president, CMA CGM America LLC; Tenny Hsieh, president, Wan Hai Lines America; Feng Bo, president, COSCO North America; Kee Hoon Park, CEO, SM Line; Benjamin Tsai, president, Evergreen Shipping Agency; Uffe Ostergaard, president, Hapag-Lloyd AG North America; Jeremy Nixon, president, Ocean Network Express; George Goldman, president, Zim American Integrated Shipping Services; Paul Devine, president, OOCL (USA) Inc.; Doug Morgante, vice president, Maersk Inc.; Fabio Santucci, president and CEO, MSC Mediterranean Shipping Company USA; Cheng-Mount Cheng, chairman and CEO, Yang Ming Marine Transport Company.

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LEARN MORE www.marinelog.com/ttb

FISHING VESSELS METHANOL TOWBOAT

T

he world’s first methanolfueled towboat is set to join the fleet of Metairie, La.-based Maritime Partners LLC and become available for charter in 2023 to meet the pressing demand for sustainable towboat operations.

The vessel, the M/V Hydrogen One, will be IMO 2030 compliant, meet the USCG’s Subchapter M requirements, and have an operational range of 550 miles before refueling. Maritime Partners, in cooperation with Elliott Bay Design Group, e1 Marine, and ABB, are developing it.

Decarbonizing Towboats Decarbonizing the towboat sector poses substantial challenges, particularly due to the inherent size, space, and weight limitations of towboats.

Batteries are only suitable for boats that operate on fixed routes and can recharge 18 Marine Log // January 2022

daily, and a towboat’s limited storage capacity restricts the use of pressurized or cryogenically stored gases as fuels. There are also very few dockside facilities to load such marine fuels, which severely constrains a vessel’s range and functionality.

El liott B ay D esig n Group, S eattle, Wash., using proven, efficient technology throughout, from ABB’s electrical power distribution and automation to e1 Marine’s methanol-to-hydrogen fuel cell, has designed the boat.

Methanol to Hydrogen Methanol is a common towboat cargo, and it is available in 88 of the world’s top 100 ports. This availability enables a vessel to refuel safely almost anywhere without the need for costly diversions.

The M/V Hydrogen One’s use of e1 Marine’s reformer technology generates hydrogen from methanol on-demand,

which also makes it considerably safer than transferring and storing hydrogen directly, and the vessel’s crew will require minimal additional training to use the technology.

“Shipowners have been understandably reluctant to commit to low carbon fuels until the infrastructure is available to refuel their vessels,” said Austin Sperry, co-founder and chief operating officer at Maritime Partners. “The M/V Hydrogen One solves that problem by using methanol, which is safe and readily available worldwide. When the M/V Hydrogen One joins our fleet of 1,600 vessels, it will not only provide excellent emissions reduction capabilities but highly functional, reliable, and cost-effective operations.”

Breaking With Tradition “ T h e U. S . tow b o a t m a r ke t i s on e of the most traditional in the world, so it’s impor tant to recognize what this

Photo Credit: Elliott Bay Design Group

The M/V Hydrogen One will be IMO 2030 compliant and meet Subchapter M requirements.

METHANOL TOWBOAT

METHANOL FUEL CELL TOWBOAT Set for 2023 Debut

efficient, and economic use of hydrogen as a marine fuel. The technology is ideal for anything that requires continuous power over extended periods, including work boats and medium-range passenger vessels, or to provide backup power in ports and harbors.”

“M/V Hydrogen One is the model for what is likely to be the only practical and commercially available technology that will enable smaller vessels to run for multiple days on a single fuel load and without the need for dedicated refueling facilities,” said Mike Complita, principal and vice president of strategic expansion at Elliott Bay Design Group. “Our naval architects have optimized the balance between reformers, fuel cells and batteries to maximize range and power while minimizing operational costs. This design and the technologies it uses can be easily scaled to suit any vessel with a similar need to operate on variable routes with multiple-day transit times, and further enhances Elliott Bay Design Group’s market-leading expertise in this growing sector.”

TTB 2022

represents: the first step in a shift from diesel electric to methanol electric, and a major advancement towards zero emissions,” said Dave Lee at ABB Marine & Ports. “Governed by ABB’s power management and distribution technology, the system consumes methanol fuel ondemand. This philosophy is much more efficient than a t r aditional tow bo at, where you need both main engines as well as a generator online at all times.

“Through this design and our technolog y we’re enabling not only huge operational and cost efficiencies, but making the most env ironmentally friendly mode of transport even more sustainable,” he added.

“Conver ting methanol to hydrogen reduces the CO2 output and our reformer technology eliminates the complexities of direct fueling and storage of gas marine fuels,” said Robert Schluter, managing

director at e1 Marine. “By producing hydrogen at the point of consumption from a mixture of methanol and water, e1 Mar ine’s system enables the safe,

Complita will be speaking more about the Hydrogen One towboat at Marine Log’s Tugs, Towboats & Barges (TTB) 2022 event in Mobile, Ala., on March 29-30.

The event will take place at the Renaissance Mobile Riverview Plaza Hotel in partnership with The American Waterways Operators (AWO). The theme and focus will be on “Readying the fleet and workforce for the future.”

In addition to two days of in-person discussions and dynamic Q&A sessions, the event will feature ample opportunities for networking. Visit marinelog. com/tugs for more info.

A look inside the methanolfueled towboat concept.

January 2022 // Marine Log 19

Q&A

Fincantieri Bay Shipbuilding delivered the 340-foot LNG bunkering barge, Clean Canaveral, to Polaris New Energy on December 3.

Q&A: I n a ceremony held December 3, 2021, Sturgeon Bay, Wis., shipbuilder Fincantieri Bay Shipbuilding delivered the 340 foot long, 5,500-cubic-meter LNG bunkering barge, Clean Canaveral, to Polaris New Energy. The vessel, which is also our Vessel of the Month in this issue (see page 10), is the largest ATB bunkering barge thus far built in the U.S. and will soon be followed by a second of similar size, on order at the shipyard for a Polaris New Energy affiliate.

F i n c a nt i e r i B ay S h ip bu i l d i n g i s a 20 Marine Log // January 2022

10 MINUTES WITH FINCANTIERI BAY SHIPBUILDING

full-service shipyard, specializing in new construction, repair, conversion and sustainment of commercial vessels. The company’s portfolio includes articulated tug barge (ATB) units, barges, dredges, ferries, platform support vessels, and specialty vessels including self-unloading carriers.

This year, Fincantieri Bay Shipbuilding says it will be delivering the Mark Barker, the first U.S.-flagged self-unloading vessel for Great Lakes service built since the 1980s.

The new ship being built specifically for

the Great Lakes is part of a company legacy of shipbuilding in the region. Fincantieri Bay Shipbuilding has been upgrading and building ships for the Great Lakes for generations.

In a story we ran in September, the shipyard told us that the Michigan Trader, as well as the Mark Barker, represent a significant lineage of our company.

With Fincantieri Marine Group member Marinette Marine Corporation recently awarded a $38 million contract for design and construction of a Constellation-class frigate,

Q&A

The Mark Barker in the yard’s graving dock.

Photo Credit: Fincantieri Bay Shipbuilding

the shipbuilder is improving its infrastructure to meet the challenge of the project. Fincantieri currently is investing $300 million in its Wisconsin shipyards.

But that’s not all the shipyard has been up to lately. Justin Slater, director of sales and marketing at Fincantieri Bay Shipbuilding gave us the scoop.

Marine Log (ML): Last year, VanEnkevort Tug & Barge took delivery of the Michigan Trader, a self-unloading barge, built by your shipyard. Can you tell us more about this barge and whether you have similar projects planned for 2022 or the near future?

Justin Slater (JS): Fincantieri Bay Shipbuilding was fortunate to win this project.

The trade on the Great Lakes is fairly stable thus not prone to spikes in demand.

VanEnkevort Tug & Barge has been a long time customer of the shipyard so they were very comfortable trusting us with this important project.

First of all, the ATB Barge is 740 feet in length. When most hear that this is a “barge,” they envision something much smaller. The barge also has a 78-foot beam and a 30-foot draft. The unloading boom is a hefty 265 feet in length and has a capacity up to 37,000 LT of cargo.

The choice for the 78-foot beam allows flexibility to trade into the Saint Lawrence Seaway; however, the vessel’s initial trade will be in the Great Lakes.

Regarding similar projects, Fincantieri Bay is currently building the Mark Barker for Interlake Steamship, the first U.S. Flagged Great Lakes self-unloading ship that has been built since the early ‘80s. While the shipyard has yet to see huge demand in this market for new construction opportunities, we expect that other owners are evaluating their options to manage the aging Great Lakes fleet.

can be bitterly cold, icy and windy. Are there special precautions the shipyard takes during those winter months to keep business moving? What other hurdles are there to shipbuilding that the yard has found solutions to?

JS: Yes, we experience winter, but weather is relative and our workforce and facilities are prepared for our way of life. While we do occasionally get very cold days that slow us down, the shipyard has never shut down for winter weather.

Additionally, the majority of the shipyard activity is accomplished in climate-controlled buildings, which ensures schedule adherence.

The shipyard also has the necessary heavy equipment for winter tasks such as snow removal, etc.

Also, the water around the shipyard freezes. We manage that by strategically placing bubblers around the ships, which prevents them from getting frozen. This allows our winter work to continue with shifting vessels in/out of the graving dock during the winter repair season.

ML: The shipyard specializes in new construction, repair and conversion projects for the most part. This includes ATBs, barges, dredges, ferries and so on. What would you say are your top requested newbuild vessels?

JS: The most active markets at the present time are the LNG bunkering barges, wind farm SOVs and dredges. There is also some lesser activity on the ferry front.

ML: The weather in the Great Lakes

Justin Slater January 2022 // Marine Log 21

FISHING VESSELS

NEW COMMERCIAL FISHING VESSELS Are Needs-Tailored

W

hen it comes to commercial fishing vessels, innovations often amount to greater efficiency of the operation, and because of that, they bring much more profit. So, some recent changes to commercial fishing vessel designs are likely to be very good indicators of where some parts of the sector are headed.

These innovations are mostly focused on the power of the vessel, usability of it by its crew, and streamlining fishing operations.

Gutsy Bristol Bay Gillnetter Designed A new compact commercial fishing vessel is meant for general use, but designed for conditions of the particular fishery of Bristol 22 Marine Log // January 2022

Bay, Alaska.

Elliott Bay Design Group’s (EBDG) new 32-foot gillnetter is an ultra-shallow, triplejet boat created for the very shallow waters of Bristol Bay (less than 20-feet); and with the bay’s currents and tides and 32-foot boat length limitation in mind. It can do 20 knots, and has a 20,000-pound fish capacity.

The model’s design—short, but stocky and hardy in profile—may set it apart from other vessels working in the very active Bristol Bay fishery, which is one of the bright spots of Alaska’s fisheries.

Originally unveiled in late 2019, the new boat design is meant to enable the vessel to have powerful enough systems to be the first back to the dock.

In Bristol Bay, a limited-entry fishery (with just 1,800 permits), being able to do 20

knots to unload is a game changer. It means succeeding in one of the very best fisheries in Alaska, where good fishing conditions have actually been improving over the past few years.

“The boat’s design allows for a good combination of power and weight,” said David Turner, a project manager for EBDG, who worked on the boat’s design team.

The design really was an outgrowth of increasingly profitable conditions for fishermen in Bristol Bay and the need for a better boat to serve that particular fishery, whose success has drawn interest throughout the commercial fishing sector.

“We’ve been paying attention to the Bristol Bay fishery’s success,” Turner said.

“There’s a lot going on up there.”

This new vessel design is the product of a

Photo Credit: Elliott Bay Design Group

By Jonathan Hawes

FISHING VESSELS

EBDG-designed ultra shallow, triple jet gillnetter.

partnership between EBDG and Cummins, who collaborated on creating the design.

“It was a kind of a joint marketing effort,” Turner said. “Our intent is that we will do the naval architecture, and the electronics, engines and jets will be tailored to the owner’s needs.”

The project wasn’t the first on which the two companies have collaborated. But in this case, the vessel design grew out of a discussion in late 2018 between Turner and Mike Fourtner, a commercial marine salesman for Cummins, who also happens to be a part-time commercial fisherman who fishes Bristol Bay and is very familiar with the fishery.

“We just star ted talking,” Four tner recalled, noting that the brisk business of the fishery sparked the conversation. “For

the last six or seven years the hottest market in Alaska has been Bristol Bay. It’s been the bright spot.”

Fourtner should know about those conditions; he’s been on a boat working in commercial fishing since he was nine, and hasn’t spent a July 4 onshore since he was younger than that. He loves the work, considering his fishing in Bristol Bay to be the perfect de-stressing time.

“I own my own boat, but sell marine engines for Cummins,” Fourtner said. “I work for Cummins full-time, but I also commercial fish in Bristol Bay. The evolution of that fishery is that it has grown, first, from using sailboats, to 1,200-hp twin jet boats, now. You’re challenged by tides and currents there differently than in any other fishery. … I wanted Elliott Bay to design a concept for those ready to go the 20 foot wide, stable platform.”

The Bristol Bay market has been exceptionally hot over the past three years. In 2021, the overall salmon run there was 65 million pounds, with an escapement of 25 million pounds. Alaska Fish and Game Commission predicts an even better season for next year for Bristol Bay. Among commercial fishermen, it’s a bit of a mystery what’s going on with Bristol Bay—why things have been so good there recently when they haven’t been as good elsewhere. Pros say it seems to be due to a combination of factors, including good fishery management, and also the unique ecosystem of the bay.

“So many of my fisherman friends want to know what’s going on with Bristol Bay,” Fourtner said. “Why does it have massive salmon returns compared to other places?”

Which brings the story back to the obvious need for innovation in vessels fishing Bristol Bay; new needs bring change. You fish where the fish are, and there are an

increasing number of them in the bay, driving a need for greater speed and other changes in boat designs.

“The only reason I suggested [to Turner] looking at a boat like this with Elliott Bay” was existing demand, Fourtner said. “Cummins has many engines on order for Bristol Bay—52 are on order now. We’re hoping people will want this next evolution [of vessel], because we believe this is where Bristol Bay is headed.”

Modernized Trawler Upgrades Added In another innovative corporate partnership, EBDG is helping the O’Hara Corporation modernize its 204-foot factory trawler, Alaska Spirit. Originally an offshore supply vessel built in 1974, the boat has been fishing Alaska’s Bering Sea since 1989. At that time it was converted from an offshore supply vessel, into a head and gut factory trawler.

O’Hara Corporation’s multi-year revamp of the vessel is a complete overhaul. The work is meant to improve its habitability, operational efficiency, and overall vessel performance. The modernization work, which is ongoing, has been done during normal down time, with no fishing seasons missed.

Upgrades have included replacement of the pilothouse port lights with windows, a new generator and hydraulic engines, conversion of underutilized aft tanks to stores, a new factory, habitability upgrades, and redesign of the trawl deck. EBDG has provided engineering support for the project.

The ship’s crew quarters also have been upgraded, including modernized staterooms, laundry, shower, and toilet spaces.

The galley and mess area also are currently being upgraded. The project also has added silencers to the exhaust lines of all diesel engines, decreasing onboard noise.

The 32- by 20-foot gillnetter is capable of making 20 knots with a 20,000-pound capacity.

January 2022 // Marine Log 23

BULKER MARKET

The world’s first LNG-fueled bulker was the 180,000 dwt HL Green, delivered in January last year.

DRY BULKS:

ooking for what’s ahead in the dry bulk shipping markets? The thermometer usually used to measure the health of the dry bulk market is the Baltic Dry Index, and through the first week of October last year it saw sufficient surges to persuade some wishful thinkers to predict a “super cycle” ahead as it hit a high of 5,650 points. As this was written, shortly before the close of the year, it was at around 2,217 points.

So, what’s ahead? The Athens-based Signal Group notes “the big challenge for the evolution of seaborne demand for dry vessels is always the performance of the Chinese economy.” The Signal Ocean Platform leverages artificial intelligence and cloud computing to analyze shipping market.

“We estimated the demand in ton days growth for this [2021] per main dry bulk ship size and we envisaged a clear higher trend of growth for the Capesize segment, that boosted the sentiment of Capesize freight rates during October to the highest 24 Marine Log // January 2022

level since 2009,” says Signal. “The question now is what about 2022? There are some early indications signaling a lower expansion in the growth of China, the world’s second largest economy, that will influence the evolution of demand for seaborne transportation for Capesize vessels.”

Biggest Shipping Sector A lot of people will be watching those Chinese forecasts closely, That’s because the dry bulk market represents approximately 54% of total seaborne trade, equating to over 5 billion tons per year or 70,000 voyages per year, according to statistics quoted by one leading operator, Stamford, Conn.based Eagle Bulk Shipping, with 60% of the dry bulk trades being accounted for by three commodities: coal (24%), iron ore (27%) and grain (9%). By the way, soybeans and various cereals are counted in as grain.

Even though dry bulkers account for a big chunk of the world fleet, they haven’t represented much of a market for shipbuilders over

the past few years. According to a third quarter investor presentation by another leading player, Golden Ocean Group, “dry bulk net fleet growth [has been at its] lowest in 30 years” and the “orderbook is likely to stay muted due to limited slot availability before 2024 due to increasing prices, availability of financing and new emissions regulations.”

Golden Ocean Group (GOGL), meantime, in February last year freshened up the age profile of its fleet by acquiring 18 scrubber-fitted dry bulk vessels for a total of $752 million from affiliates of Hemen Holding Limited, a company indirectly controlled by John Fredriksen, the company’s largest shareholder.

The 18 vessels consisted of 10 Newc a s t l e m a xe s b u i l t i n 2 0 1 9 - 2 1 a n d 8 Kamsarmaxes built in 2020-21, GOGL said.

Enter Himalaya Shipping One of the most interesting new players in the dry bulk market is Himalaya Shipping Limited (HSHIP), which started trading on the Oslo Stock Exchange under the ticker

Photo Credit: POSCO

L

Can the Boom Resume?

BULKER MARKET symbol HSHIP in December 2021. The company is the brainchild of Norwegian shipping tycoon Tor Olaf Trøim who, before striking out on his own, was often referred to as John Fredriksen’s right hand man. His HSHIP venture currently has 12 Newcastlemax 210,000 DWT LNG dual fuel bulk carriers under construction at New Times Shipbuilding Co. Ltd. in China.

The average purchase price for the vessels is $69.3 million and deliveries are set for between April 2023 and September 2024.

The ships can run on LNG or low sulfur fuel oil with enlarged VLSFO tanks of 4,800 cubic meters giving round trip flexibility. They are also ammonia ready, with Himalaya Shipping citing a “small cost” for upgrade to future potential fuels.

The company says it is ordering bulkers because orders are at a 30-year low and because a large part of the current fleet will be non-compliant with new EEXI regulations set to come into effect January 1 2023. The EEXI describes the CO2 emissions per cargo ton and mile. It determines the standardized CO2 emissions related to installed engine power, transport capacity and ship speed.

In short, notes Himalaya “this means all commercial ships above 5,000 tonnes needs to meet a set level for CO2 emissions. Less fuel efficient ships will either need to do major retrofitting, reduce speed or be scrapped.” All this, it says, could see an estimated 20% reduction in dry bulk tonnage supply.

Does that mean a boom in shipyard orders? Not necessarily. According to HSHIP, shipyard capacity is down, with 166 shipyards closed in China. And if you can find a shipyard slot, finding financing could be another problem, HSHIP notes that the top 40 shipping banks have reduced lending exposure to around $290 billion from around $360 billion despite a 25% increase in fleet size over the last five years.

Himalaya Shipping’s newbuild 210,000 dwt Newcastlemaxes will be LNG-fueled and ammonia-ready. steel producer POSCO and introduced in response to the IMO 2020 cap on sulfur emissions. The first of the pair, the HL Green, arrived ay POSCO’s Gwanyang Works on January 20, 2021, with a cargo of iron ore from Australia.

The 180,000 dwt HL Green is operated

by Korea’s H-Line Shipping Co. under a long term POSCO char ter, and was designed and built, along with a sister ship,

by Hyundai Samho Heavy Industries Co. Ltd. POSCO supplied steel plates for the ships’ bodies and, in a first for a Korean steel producer, 9% nickel steel as cryogenic materials for the fuel tanks.

Ammonia-Fueled Bulker The backing of long-term charters from end users could well be key to determining what bulkers actually get built over the next several years. Interestingly, an ammonia-fueled bulker project involving

Sumitomo Corporation, one of Japan’s giant, multi-faceted general trading corporations—sogo sosha—will see the ship owned and operated by Sumitomo itself, a n d f u e l e d by a m m o n i a s u pp l i e d by Sumitomo, which is implementing initiatives for the entire maritime ammonia supply chain that include plans to launch of an ammonia supply business to fuel ships in Singapore.

The ship itself will be designed and developed in cooperation with Oshima Shipbuilding has been manufacturing and selling dry bulk carriers jointly with Sumitomo since 1973.

Measuring 229 meters (751 feet) by 32.26 meters (105.8 feet), it will have a deadweight in the 80,000-dwt range and is targeted for 2025 completion.

All in all, this looks to be a project that delivers the chicken and the egg at the same time.

Photo Credit: (Top) Himalaya Shipping; (Bottom) Signal Group

China the Key Signal says that market consensus is that the growth of the Chinese economy will vary from 5% to 5.5% in 2022. “The Chinese Academy of Social Sciences and the People’s Bank of China estimate China’s potential growth rate to be about 5.5% for 2022. Chinese growth slowed in the second half of this year, and there are predictions that the figure will be below 4% for the final quarter.

However, official estimates for the full year growth will be released in mid-January.”

First LNG-Fueled Bulker The HSHIP newbuilds will not be the world’s first LNG fueled bulkers. That honor goes to two ships built to serve South Korean

Bulker demand was healthy last year, but what’s ahead?

January 2022 // Marine Log 25

TECH NEWS The first Seawing system has been installed on the vessel Ville de Bordeaux, chartered by Airbus and operated by Louis Dreyfus Armateurs.

Photo Credit: Airseas

Seawing Kite to Start Trials on Airbus RO/RO AIRSEAS, A FRENCH TECH PIONEER founded by former Airbus engineers, has completed the first installation of its automated kite Seawing on a commercial vessel.

The first Seaw ing system has been installed on the vessel Ville de Bordeaux, chartered by Airbus and operated by Louis Dreyfus Armateurs.

The RO/RO ship, which transports major aircraft components between France and the United States, will deploy a 500-squaremeter Seawing on its monthly transatlantic voyages starting this month, conducting six months of sea trials and testing ahead of its full operation.

The deployment follows formal a pprov a l f rom cl a s s i f i c a t i on s o c i e t y Bureau Veritas for Airseas to begin operations at sea, following three years of close collaboration on the development and early trials of the Seawing.

Airseas is unique in its integration of expertise from the aeronautical sector, including digital twin and automation technology, to the maritime industry.

It says this means that the Seawing can be safely deployed, operated and stored at the push of a button, and can be retrofitted on a ship in two days.

Airseas’ full size Seawing is a 1,000-squaremeter parafoil, which flies at an altitude of 300 meters capturing the strength of the wind to propel the vessel.

Based on modeling and preliminary testing on land, Airseas estimates that the Seawing system will enable an average 20% reduction in fuel consumption and greenhouse gas emissions.

“A decade ago, we embarked on the ambitious project of channeling our unique aviation expertise towards creating a cleaner and more sustainable shipping industry,” said Airseas CEO and founder Vincent Bernatets. “I am beyond proud to see that vision becoming reality, with our first Seawing ready to make a tangible difference for our planet. This first installation marks a significant milestone not only for Airseas, but also for wind and other renewable propulsion technologies in general.

“Given the urgency of the climate crisis, the world needs to see a drastic reduction in carbon emissions now. In shipping, we can achieve this by using the full set of tools we have available to us today. Wind propulsion is one of these and will play an essential role in helping shipping achieve its muchneeded decarbonization transition.”

Wärtsilä Partners with Microsoft to Industrialize WITH DEC ADES of ex perience and expertise in high-end marine Internet of Things (IoT) offerings, Wärtsilä Voyage plans to accelerate its efforts to industrialize IoT for shipping through a highly scalable, cyber-secure plat form that integrates Microsoft Azure IoT Edge.

Wärtsilä Voyage calls the deployment of streamlined Intelligent Edge technology “an essential enabler” to meet shipping’s decarbonization targets as well as for large-scale application of autonomous technology.

“The maritime world is entering the digital era where mutualizing our investments into common platforms and standards is a prerequisite to successful innovations for a more sustainable and efficient maritime industry,” said Sean Fernback, president, Wärtsilä Voyage and executive vice president, Wärtsilä. “The Wärtsilä common plat form will ac t as an enabler to deploy future technology for autonomy and emissions reduction. We want to focus our efforts on those fields with commonly shared standards that give vessels easier access to innovative solutions.”

Wärtsilä Voyage will also focus on strategic themes spanning industrial remote operation capabilities, state-of-the-art cybersecurity with ac tive monitoring, runtime, and commonly shared data standards to ease collaboration between maritime stakeholders.

Through its secured-by-design remote operation capabilities, the Wärtsilä platform will enable immediate access to the latest solutions onboard. A s set commis sioning, diagnostic, updates, and upgrades will be per formed remotely— streamlining maintenance, speeding up deployment, and increasing vessel uptime.

Wär tsilä Voyage will also integrate several Microsof t Securit y and IoT solutions to s trengthen t h e p l a t f o r m w i t h m o n i t o r i n g, security updates and asset management services.

January 2022 // Marine Log 27

TECH NEWS

MOL’s Fuel-Saving Boss Cap Sets Guinness World Record Propeller boss cap fin installed on a propeller.

MITSUI O.S.K. LINES LTD. (MOL) reports that the propeller boss cap fin ( P B C F ) s o l d b y i t s g r o u p c o m p a ny MOL Techno-Trade, Ltd. has been certified as the “Best-selling Energy-Saving Ship Appendage Brand (Cumulative)” by Guinness World Records and received an official certificate on December 23, 2021.

On sale since 1987, the PBCF was the first device in the world to be commercialized to recover the energy wasted in the vortex that forms behind a rotating propeller and increase the thrust by breaking up this vortex.

Analysis has shown that equipping a vessel with PBCF results in energy savings

of 3% to 5%.

In 2017, an upgraded PBCF, offering further improvements in energy saving, went on the market.

Orders reached 1,000 in 2006, 2,000 in 2011, and topped 3,000 in 2015.

By 2021, PBCF cumulative sales exceeded 3,800 (with the number of vessels equipped with PBCF exceeding 3,600).

“Even now, about 35 years after its launch, PBCF is still selling exceptionally well as an energy-saving device for ships and has established itself as a bestseller,” says MOL. By improving fuel efficiency, the PBCF in turn reduces CO2 emissions from vessels and MOL Tech has calculated that the expanded use of PBCF has contributed to a cumulative 46-million-ton reduction in CO2 emissions worldwide.

MOL Group says that it continues to study hybrid combinations with other energy-saving devices such as stern fins, ducts and rudder bulbs and has confirmed the synergistic effects in tests using a model.

Can Existing Scrubbers Be Used for Carbon Capture?

28 Marine Log // January 2022

measured CO2 emission by 3.3%. At 40% main engine load, a CO2 emission reduction of nearly 7% was observed.

During the tests, the alkali consumption remained at a reasonable level, and the effect of this on the operating expenses of the vessel would remain practicable.

The results of the tests are regarded as a tentative proof of concept and additional tests with a further increased alkali feed

will now be conducted to verify this.

The CO2 capture feature could be applied to any Langh Tech closed loop or hybrid scrubber systems with relatively low cost impact, with only minor changes to the existing scrubber system. The process could be performed with readily available alkali products such as NaOH and MgOH2, which are both already being used in many SOx scrubber processes.

Langh Tech has now conducted several preliminary tests of capturing the CO2 emitted by the vessel’s main engine.

Photo Credit: (Top) MOL Techno-Trade Ltd.; (Bottom) Langh Tech

ON BOARD carbon capture and storage as a means of reducing ships’ CO2 emissions is rapidly moving out of the “what if?” category, with exhaust gas scrubbers emerging as an answer to the capture part of the challenge.

Exhaust gas cleaning system specialists researching the possibility include Finland’s Langh Tech. It has successfully performed its first tests on board one of the vessels in sister company Langh Ship’s fleet.

Langh Tech has now conducted several preliminary tests of capturing the CO2 emitted by the vessel’s main engine using an existing Langh Tech closed loop SOx scrubber system.

In the tests, additional alkali was added to the scrubber closed loop process water in order to provoke a reaction between the alkali and CO2, effectively capturing the CO2 from the exhaust gas into the process water.

The setup of tests was limited by the capacity of the existing alkali pump, but positive results were observed even with only a slight increase in the alkali dosing.

At a main engine load of approximately 85%, a 5% increase in alkali dosing (over normal level) was able to reduce the

NEWSMAKERS

Thomas Nordberg Takes Helm at Swedish Club The Swedish Club is to appoint THOMAS NORDBERG to succeed LARS RHODIN as managing director from January 1, when Rhodin retires. He is a former head of claims services at Norway’s Gard P&I. He holds a Master of Law from the University of Lund, Sweden, and has studied maritime law at the Institute of Maritime Law in Oslo.

The board of commissioners of the Port of South Louisiana has selected PAUL MATTHEWS to serve as the port’s next executive director, effective January 15, succeeding PAUL AUCOIN. Matthews served most recently as deputy director at the Port of Plaquemines, La. He began his port career in community affairs at the Port of New Orleans in 2012.

Ørsted has hired NICOLE VERDI as senior manager of government affairs and policy in New England. A practicing attorney, she joins Ørsted from the Rhode Island state Senate, where she served as chief legal counsel. Prior, she was a senior staff member for former Rhode Island Gov. Gina Raimondo.

BMT has appointed HITTESH GUPTA as head of casualty investigation, Asia, as the firm looks to expand its office presence for marine surveys in Singapore and strengthen its marine consulting services hub position in Asia. With over 23 years of experience in the shipping industry, Gupta has a deep understanding of marine surveying.

Maine Maritime Academy’s board of trustees has named JERALD “JERRY” PAUL the college’s 15th president.

Paul, who is currently president of Capitol Access and a 1989 graduate of the institution, will take office this spring. He will succeed WILLIAM BRENNAN, who will step down from the position at the end of April, following 12 years of leading Maine Maritime Academy.

Huntington Ingalls Industries has appointed CHRISTIE THOMAS as corporate vice president, investor relations. The vice president of contracts and pricing at HII’s Newport News Shipbuilding division since 2018, she replaces DWAYNE BLAKE following his retirement and will report directly to TOM STIEHLE.

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January 2022 // Marine Log 29 ML_Marketplace_Fourth.indd 1

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January 2022 // Marine Log 31

SAFETY FIRST

Wire Rope: The Importance of Verifying Your Terminations of the wire rope.

The second Safety Alert released as part of this investigation (Safety Alert 08-21) specifically addresses verifying the condition, manufacturing, and physical specification of wire rope that was purchased directly from Southwest Wire Rope (SWWR) or fabricated by SWWR and sold through other vendors. The Coast Guard’s investigation revealed discrepancies in SWWR’s product fabricating procedures and quality management processes.

A steel wire rope drum on a crane offshore wellhead platform.

W

ire rope and its associated cable assemblies are an essential part of the marine industry in a variety of load-handling applications. In many instances, maintenance and replacement of these cables involves multiple layers of fabrication and service providers who rely on quality management processes to ensure the correct product is supplied to the end user.

On January 4, 2021, a Fast Rescue Craft (FRC), while being manually winched to its stowed positon onboard a floating offshore installation in the Gulf of Mexico, fell approximately 135 feet into the water when its wire rope end termination failed. Luckily, the crew of the FRC had exited the craft just moments before the incident. The subject wire rope in the casualty had failed within one month of its installation.

USCG Investigates As a result of the casualty, the Coast Guard initiated an investigation into the causal factors that contributed to the cause of the incident. While the incident is still open for investigation, the Coast Guard’s Office of Investigations and Analysis has issued two Safety Alerts related to the case (Safety Alert 04-21 and Safety Alert 08-21).

In Safety Alert 04-21, the Coast Guard requested owners, manufacturers, operators and service providers focus on verifying wire rope end terminations. As a part of the investigation, it was noted that incorrectly applied swaged fittings could have detrimental effects to the wire rope including unintentional damage to strands within the wire rope. The damage caused by the incorrectly applied fittings could lead to failure of the termination.

32 Marine Log // January 2022

Since the damage to the wire rope could be within the fitting and not initially visible, the Coast Guard strongly recommended that wire rope terminations be inspected for potential abnormalities that could indicate an incorrectly applied fitting. This includes the fitting not having a uniform appearance (the fitting should be round) and the presence of ridges created when the fitting is over compressed.

A crucial part of the examination processes is comparing the fitting’s dimensions against manufacturer’s specifications and tolerances. Documentation provided as part of the cable’s fabrication should include the materials and specifications for each component of the end termination (i.e. wire rope mill cert, fitting type/model). This information can be used to compare to manufacturer tolerances for factors such as the length and diameter of the completed fitting. For the wire rope itself, factors such as construction (number of wire per strand and number of strands) and wire rope lay should be compared between the product received and specifications on the purchase order. Any examination of an end termination should also include an additional verification that the wire rope and cable materials were properly selected and match the intended components that meet the minimum safety factor for the type of service.

Different types of fittings/end terminations might decrease the Safe Working Load (SWL) of the wire rope. For example, a swaged sleeve in a turn back eye results in a 90% of better efficiency of the termination, which means that the termination has a 10% or less reduction in the overall SWL

The subject wire rope involved in the incident was found to not meet the specifications of the purchase order and receipt provided to the client by SWWR. Incorrect components were used in fabricating the end termination and the fitting was improperly applied, which resulted in unintentional damage to the wire rope that contributed in its eventual failure. The Coast Guard is currently unaware of how long this quality control measure has been an issue for the company.

As outlined in Safety Alert 04-21, the Coast Guard strongly recommends that owners, operators, manufacturers, and service providers utilizing wire rope purchased from or fabricated by SWWR do the following: • Verify the source and manufacturer of all wire rope, and if purchases or fabricated by SWWR, carefully observe the specifications of the wire rope to ensure it matches the product that was purchased; and • Visually examine wire rope termination for abnormalities, compare fitting dimensions, and verify the termination type does not reduce the SWL of the wire rope below the minimum safety factor for type of service.

If any abnormalities in the wire rope are detected, immediately remove the wire rope from service and make an appropriate replacement. If you are unsure whether a wire rope may be affected by these on-going concerns, please contact your nearest Coast Guard marine inspector or the Outer Continental Shelf National Center of Expertise.

MATTHEW SPOLARICH, CDR U.S. Coast Guard Marine Safety Unit Houma

Photo Credit: Shutterstock/Kingtony

Incorrect Components Used

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