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#Top25boxCo - According to Multimodal, the 14th edition of Dynamar annual Top 25 Container Liner Operators publication has been issued. It offers an exclusive insight into the world’s largest container shipping companies, their history, nature, characters, developments, strategies, relationships and performances.

The report opens with a summary of the Top 25 carriers looking at their operated vessel fleet, capacity, carryings, container box fleets and subsidiaries. Furthermore, this section includes financial results for full year 2015 and the first 9 months of 2016. A rundown of performance and financial parameters for the period 2011/2015 for operators consistently forming the Top 20 is also provided. It concludes with the shares of operated vessel capacity by region of control and by company type.

Dynamar’s latest study offers a most comprehensive overview of the financial results of the globe’s 25 largest operators. For the first time, as a group, they collectively posted a net loss in 2015, this running into hundreds of millions of dollars. Even more monetary horror is to come: for the first 9 months of 2016, the combined net result of twelve reporting lines fell by more than USD 13 billion...!

Little wonder: over the same 9-month period, spot rates quoted for the 10,500 nautical miles Shanghai-Rotterdam leg were USD 618 all-in per TEU on average. This equals less than 6 dollar cents per nautical mile. Quotations ranged between a nadir of USD 205(!) in March, and a zenith of USD 699 in July… which carrier could survive on that?

In January 2015, four East-West Alliances kicked off:

2M - Maersk Line, MSC
CKYHE Alliance - Coscon, Evergreen, Hanjin, “K” Line, Yang Ming
G6 Alliance - APL, Hapag-Lloyd, Hyundai, MOL, NYK, OOCL
Ocean Three - China Shipping, CMA CGM, UASC
Less than one-and-a-half year later, in April/May 2016 already, the relevant carriers announced drastic re-arrangements of their groupings. Taking effect April 2017, these will read:

2M+ - Maersk Line and MSC, plus Hyundai sharing space
Ocean Alliance - CMA CGM/APL, Coscon, Evergreen, OOCL
THE Alliance - Hapag-Lloyd/UASC, Hanjin, “K” Line, MOL, NYK, Yang Ming
All being well and with the permission of the FMC already in their pockets, these three new Alliances will start operations effective 1 April 2017.

It is unprecedented developments outside of the existing alliances having pushed aforementioned changes. All actualised or initiated within the space of a single year (2016), which saw six of the original Top 20 lines go, it concerns:

China Shipping merged into Coscon (February)
Acquisition of APL by CMA CGM (June)
Hanjin’s sad going under (September)
Merger-to-be of UASC into Hapag-Lloyd (1Q2017)
The proposed joint venture between “K” Line, MOL and NYK (September 2017)
Maersk Line’s intended acquisition of Hamburg Süd (late 2017)
In the course of all the above sweeping, powerful changes, smaller liner companies come under great pressure to consider consolidation as well: 2017 promises to become another exciting year!

Concluding the “Top 25 Container Liner Operators (2016)” study is a separate chapter on Alliances, Consortia or similar. Profiles are provided on each of the present and future groupings.

Cost reduction, in the form of larger, less gas guzzling and more efficient ships has been the answer to low rates of the top container liner operators. It started with Maersk Line’s 2006-launched 15,600 TEU E-class, developed and built for the Europe-Far East trade. High volumes; an excellent relationship between time spent at sea versus time in port; capable container terminals: this trade is the ideal route for ULCS to reap the maximum from their economies of scale.

Worried by the Danish company’s lower slot costs eroding their market share, other carriers followed suit in big numbers. By mid-2016, eighteen of the Top 25 lines controlled 100% of all ULCS operating and 94% of the orderbook, representing 366 ships/4.9 million TEU, and 156 vessels/2.7 million TEU, respectively. Capacities range between 10,000 TEU and 21,200 TEU. By the end of 2016, 178 ULCS with an average capacity of 15,300 TEU operated between North Europe and Asia.

A deluge of large newbuildings combined with a faltering market resulting in severe overcapacity inducing a bitter rate war ensuing dramatic losses: it is the price of too many too big ships...

Aware of the overcapacity damage done with their financials turning deep dark red, no carrier ordered any ULCS in 2016. That is to say, almost, as in December IRISL fulfilled an earlier “promise” to go for ULCS as well, ordering an initial 14,500 TEU units.

Cold comfort, but it is not container liner shipping alone immersed in uncertainty. Breakbulk, heavy lift, dry bulk, tankers, non-operating owners, you name it, all main shipping segments are concurrently groaning under a downturn as severe as seldom seen before. It can barely get worse.

In addition to maturation, container shipping also faces the yet largely unknown effects on cargo streams of 3D-printing and robotising facilitating near shoring.

Interestingly, despite all doom and groom, at the very end of 2016 it was reported that shipping industry confidence had hit its highest level in 15 months. That’s the spirit, that typifies shipping!

It may have helped that in the fourth quarter, spot rates in all long haul trades from Shanghai saw a recovery, to positively influence the level of contract rates for the new year. Scrapping has never been as high as 700,000 TEU. Troubles are not, but would the worst be over!?

Ongoing container liner consolidation as so convincingly initiated in 2016 should help addressing all challenges if... the larger companies and Alliances seriously work on eradicating the current excess tonnage while keeping future capacity expansion in check.

And finally: 2006 ended with (ultimately) eight companies less than it started with. No worry, as long as there is worldwide water and trade, there will be 25 largest container liner companies with all of them worth to know everything about them!

Many more topics and subjects than the above are discussed and analysed in the core of the 2016-edition of Dynamar’s “Top 25 Container Liner Operators” which consists of the profiles of each of the individual Top 25 carriers and their affiliated companies. In summary, each profile contains:

An opening page of at-a-glance key details, overviews, indexes and ratios on literally anything container shipping company-relevant, showing the subject’s progression since 2005
A history and corporate background section: how the carrier got to where it is today

Operated containership fleet and orderbook development
Trade lanes and markets served as a vessel operator and as a slot-charterer
Overview of interests in container terminals worldwide
Summary of container-related and other relevant affiliations or activities
Membership of alliances, consortia, conferences and discussion agreements

Concluding the study is a glossary featuring all major, main and regional trade lanes along which the Top 25 are active (as vessel providers) listed by trade and country. All this is complemented by around 145 different tables and another 50 figures of supporting information.

The 2016 edition of the Top 25 Container Liner Operators is immediately available and can be ordered for direct download under the link www.dynamar.com/publications/173

Published in Ports & Shipping

#PORTS & SHIPPING – Today is the International Day of the Seafarer, and people around the world are being asked to use social networks to highlight just how important seafarers are as they transport more than 90% of global trade which are vital to our daily lives.

On this second year of the Day of the Seafarer, people are asked to tell the world of an object in their daily life that you can't live without, and which came by sea.

Take a photo of the object, write a description, record a song, make a film, whatever you prefer: and then just post it on the social platform of your choice and add the campaign slogan: "thank you seafarers".

Seafarers leave their homes and families, often for long periods to ensure that essential items and commodities on which our lives depend arrive safely at our homes.

So show the seafarers of the world - and your friends, too – your appreciation of the extraordinary services they render every day of their professional lives, under demanding and sometimes dangerous circumstances.

Day of the Seafarer is an innovative campaign that harnesses the power of social media to raise awareness of seafarers and their unique role. Everyone, regardless of where they live, can join the campaign online. So, on 25 June, you can join in by:

Sharing your post on Facebook, if you have pictures, videos or any special message, please share them on our wall.

Sending us a message @IMOHQ and @SeafarerDay using hashtag #thankyouseafarer

On pinterest, you can pin a picture of your chosen object with the caption "Day of the Seafarer"

For more infomation and for how participants can download the toolkits available of the campaign click HERE. In addition for a video message by Koji Sekimizu, Secretary-General of the International Maritime Organization (IMO).

The IMO is the United Nations specialized agency with responsibility for the safety and security of shipping and the prevention of marine pollution by ships. The organisation is headquartered in London on the banks of the Thames.

Published in Ports & Shipping

Ireland's Offshore Renewable Energy

Because of Ireland's location at the Atlantic edge of the EU, it has more offshore energy potential than most other countries in Europe. The conditions are suitable for the development of the full range of current offshore renewable energy technologies.

Offshore Renewable Energy FAQs

Offshore renewable energy draws on the natural energy provided by wind, wave and tide to convert it into electricity for industry and domestic consumption.

Offshore wind is the most advanced technology, using fixed wind turbines in coastal areas, while floating wind is a developing technology more suited to deeper water. In 2018, offshore wind provided a tiny fraction of global electricity supply, but it is set to expand strongly in the coming decades into a USD 1 trillion business, according to the International Energy Agency (IEA). It says that turbines are growing in size and in power capacity, which in turn is "delivering major performance and cost improvements for offshore wind farms".

The global offshore wind market grew nearly 30% per year between 2010 and 2018, according to the IEA, due to rapid technology improvements, It calculated that about 150 new offshore wind projects are in active development around the world. Europe in particular has fostered the technology's development, led by Britain, Germany and Denmark, but China added more capacity than any other country in 2018.

A report for the Irish Wind Energy Assocation (IWEA) by the Carbon Trust – a British government-backed limited company established to accelerate Britain's move to a low carbon economy - says there are currently 14 fixed-bottom wind energy projects, four floating wind projects and one project that has yet to choose a technology at some stage of development in Irish waters. Some of these projects are aiming to build before 2030 to contribute to the 5GW target set by the Irish government, and others are expected to build after 2030. These projects have to secure planning permission, obtain a grid connection and also be successful in a competitive auction in the Renewable Electricity Support Scheme (RESS).

The electricity generated by each turbine is collected by an offshore electricity substation located within the wind farm. Seabed cables connect the offshore substation to an onshore substation on the coast. These cables transport the electricity to land from where it will be used to power homes, farms and businesses around Ireland. The offshore developer works with EirGrid, which operates the national grid, to identify how best to do this and where exactly on the grid the project should connect.

The new Marine Planning and Development Management Bill will create a new streamlined system for planning permission for activity or infrastructure in Irish waters or on the seabed, including offshore wind farms. It is due to be published before the end of 2020 and enacted in 2021.

There are a number of companies aiming to develop offshore wind energy off the Irish coast and some of the larger ones would be ESB, SSE Renewables, Energia, Statkraft and RWE.

There are a number of companies aiming to develop offshore wind energy off the Irish coast and some of the larger ones would be ESB, SSE Renewables, Energia, Statkraft and RWE. Is there scope for community involvement in offshore wind? The IWEA says that from the early stages of a project, the wind farm developer "should be engaging with the local community to inform them about the project, answer their questions and listen to their concerns". It says this provides the community with "the opportunity to work with the developer to help shape the final layout and design of the project". Listening to fishing industry concerns, and how fishermen may be affected by survey works, construction and eventual operation of a project is "of particular concern to developers", the IWEA says. It says there will also be a community benefit fund put in place for each project. It says the final details of this will be addressed in the design of the RESS (see below) for offshore wind but it has the potential to be "tens of millions of euro over the 15 years of the RESS contract". The Government is also considering the possibility that communities will be enabled to invest in offshore wind farms though there is "no clarity yet on how this would work", the IWEA says.

Based on current plans, it would amount to around 12 GW of offshore wind energy. However, the IWEA points out that is unlikely that all of the projects planned will be completed. The industry says there is even more significant potential for floating offshore wind off Ireland's west coast and the Programme for Government contains a commitment to develop a long-term plan for at least 30 GW of floating offshore wind in our deeper waters.

There are many different models of turbines. The larger a turbine, the more efficient it is in producing electricity at a good price. In choosing a turbine model the developer will be conscious of this ,but also has to be aware the impact of the turbine on the environment, marine life, biodiversity and visual impact. As a broad rule an offshore wind turbine will have a tip-height of between 165m and 215m tall. However, turbine technology is evolving at a rapid rate with larger more efficient turbines anticipated on the market in the coming years.

 

The Renewable Electricity Support Scheme is designed to support the development of renewable energy projects in Ireland. Under the scheme wind farms and solar farms compete against each other in an auction with the projects which offer power at the lowest price awarded contracts. These contracts provide them with a guaranteed price for their power for 15 years. If they obtain a better price for their electricity on the wholesale market they must return the difference to the consumer.

Yes. The first auction for offshore renewable energy projects is expected to take place in late 2021.

Cost is one difference, and technology is another. Floating wind farm technology is relatively new, but allows use of deeper water. Ireland's 50-metre contour line is the limit for traditional bottom-fixed wind farms, and it is also very close to population centres, which makes visibility of large turbines an issue - hence the attraction of floating structures Do offshore wind farms pose a navigational hazard to shipping? Inshore fishermen do have valid concerns. One of the first steps in identifying a site as a potential location for an offshore wind farm is to identify and assess the level of existing marine activity in the area and this particularly includes shipping. The National Marine Planning Framework aims to create, for the first time, a plan to balance the various kinds of offshore activity with the protection of the Irish marine environment. This is expected to be published before the end of 2020, and will set out clearly where is suitable for offshore renewable energy development and where it is not - due, for example, to shipping movements and safe navigation.

YEnvironmental organisations are concerned about the impact of turbines on bird populations, particularly migrating birds. A Danish scientific study published in 2019 found evidence that larger birds were tending to avoid turbine blades, but said it didn't have sufficient evidence for smaller birds – and cautioned that the cumulative effect of farms could still have an impact on bird movements. A full environmental impact assessment has to be carried out before a developer can apply for planning permission to develop an offshore wind farm. This would include desk-based studies as well as extensive surveys of the population and movements of birds and marine mammals, as well as fish and seabed habitats. If a potential environmental impact is identified the developer must, as part of the planning application, show how the project will be designed in such a way as to avoid the impact or to mitigate against it.

A typical 500 MW offshore wind farm would require an operations and maintenance base which would be on the nearby coast. Such a project would generally create between 80-100 fulltime jobs, according to the IWEA. There would also be a substantial increase to in-direct employment and associated socio-economic benefit to the surrounding area where the operation and maintenance hub is located.

The recent Carbon Trust report for the IWEA, entitled Harnessing our potential, identified significant skills shortages for offshore wind in Ireland across the areas of engineering financial services and logistics. The IWEA says that as Ireland is a relatively new entrant to the offshore wind market, there are "opportunities to develop and implement strategies to address the skills shortages for delivering offshore wind and for Ireland to be a net exporter of human capital and skills to the highly competitive global offshore wind supply chain". Offshore wind requires a diverse workforce with jobs in both transferable (for example from the oil and gas sector) and specialist disciplines across apprenticeships and higher education. IWEA have a training network called the Green Tech Skillnet that facilitates training and networking opportunities in the renewable energy sector.

It is expected that developing the 3.5 GW of offshore wind energy identified in the Government's Climate Action Plan would create around 2,500 jobs in construction and development and around 700 permanent operations and maintenance jobs. The Programme for Government published in 2020 has an enhanced target of 5 GW of offshore wind which would create even more employment. The industry says that in the initial stages, the development of offshore wind energy would create employment in conducting environmental surveys, community engagement and development applications for planning. As a site moves to construction, people with backgrounds in various types of engineering, marine construction and marine transport would be recruited. Once the site is up and running , a project requires a team of turbine technicians, engineers and administrators to ensure the wind farm is fully and properly maintained, as well as crew for the crew transfer vessels transporting workers from shore to the turbines.

The IEA says that today's offshore wind market "doesn't even come close to tapping the full potential – with high-quality resources available in most major markets". It estimates that offshore wind has the potential to generate more than 420 000 Terawatt hours per year (TWh/yr) worldwide – as in more than 18 times the current global electricity demand. One Terawatt is 114 megawatts, and to put it in context, Scotland it has a population a little over 5 million and requires 25 TWh/yr of electrical energy.

Not as advanced as wind, with anchoring a big challenge – given that the most effective wave energy has to be in the most energetic locations, such as the Irish west coast. Britain, Ireland and Portugal are regarded as most advanced in developing wave energy technology. The prize is significant, the industry says, as there are forecasts that varying between 4000TWh/yr to 29500TWh/yr. Europe consumes around 3000TWh/year.

The industry has two main umbrella organisations – the Irish Wind Energy Association, which represents both onshore and offshore wind, and the Marine Renewables Industry Association, which focuses on all types of renewable in the marine environment.

©Afloat 2020