CMA CGM blames ultra-large containerships as culprit for global port congestion
CMA CGM executive Christine Cabau Woehrel highlighted at an industry forum that the upsizing containerships is a significant factor in global port congestion. She noted that ultra-large containerships (ULCs), particularly those with capacities of 23,000 TEU, are straining container yards at ports due to their frequent calls, especially in Asia and Europe. This congestion is not primarily due to berth productivity but rather the limited capacity of container yards to handle such large volumes. She emphasized the need for new operational models and stronger collaboration between terminals and shipping lines to manage these challenges. Linerlytica analyst Hua Joo Tan pointed out that while ship upsizing has been ongoing for years, recent severe congestion in Southeast Asia is more attributable to prolonged yard stays and imbalanced import-export volumes, exacerbated by network shifts like Red Sea diversions. Tan suggested that various factors contribute to rising congestion levels, including berth, gate, or yard bottlenecks and labor shortages. CMA CGM is working with partners like Shanghai International Port Group and Singapore’s PSA to improve yard fluidity and is conducting research in Europe to address these issues.
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Maersk, Hapag-Lloyd drop Felixstowe from new Gemini network
Maersk and Hapag-Lloyd’s new Gemini containership network will not call at the UK’s biggest container port of Felixstowe on Asia-Europe trades. Maersk reviewed its Asia-Europe services and found London Gateway, operated by DP World as the “most optimal port” for customers moving cargo to and from the UK. “This strategic decision comes as part of the ambition to reduce network complexity with mostly single operator loops and fewer port calls per service and is aimed at enhancing reliability, reach and speed for our customers,” Maersk said.
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Should regulation even try to catch up with cyber security threats?
The maritime industry is grappling with increasing cyber security threats, prompting debates on the role of regulation. The IMO and IACS (International Association of Classification Societies) have recently introduced guidelines and requirements for maritime cyber security. Some experts, like Corey Ranslem of Dryad, believe regulation is far behind the rapidly evolving threats and may never catch up. Others, like Daniel Ng of CyberOwl, argue that maritime regulation is ahead of operations in this area. The UK Department for Transport’s Matthew Parker suggests that the industry already knows what to do and questions whether extensive regulation is necessary. He argues that fundamental cyber security measures should be common sense for businesses protecting their assets. Parker also notes that sometimes doing nothing and relying on insurance might be more financially prudent than investing heavily in mitigation. The debate extends to international concerns, with Parker highlighting the need for global improvement in cyber hygiene, especially for ships entering ports from countries with less advanced cyber security practices.
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Experts highlight challenges curbing China’s green methanol progress
China’s green methanol production faces significant challenges despite its potential. Experts at a recent industry conference highlighted several issues:
High costs: Feedstock prices for biomass and green electricity are about twice the ideal levels.
Technological bottlenecks: Biomass gasification and CO2 sourcing for e-methanol production face efficiency and sustainability issues.
Uncertain demand: Producers need committed buyers for sustained production.
Regulatory uncertainty: Global carbon pricing mechanisms and fuel standards are still unclear.
Geopolitical risks: Trade wars and tensions can affect certification approvals.
Despite these challenges, experts remain optimistic about China’s potential in green methanol production, citing the country’s strengths in renewables capacity and technology. However, they caution that a realistic approach is necessary while moving forward.
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Hong Kong unveils incentive scheme to boost green bunkering ambition
Hong Kong is mulling incentives for vessels powered by cleaner, alternative fuels as part of its long-awaited efforts to transform the city into a green bunkering hub. The government released its Action Plan on Green Maritime Fuel Bunkering, outlining strategies and targets to develop Hong Kong into a hub catering to demand for bio-diesel, liquefied natural gas, green methanol, and even ammonia and hydrogen in the longer term. The move comes as the Hong Kong Special Administrative Region strives to revive its status as an international shipping center amid declining port throughput and allegedly shrinking maritime business.
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Shipping energy transition hindered by missing links in green fuel supply chain
The shipping industry’s transition to green energy faces significant challenges due to gaps in the supply chain for alternative fuels. A panel at a Hong Kong forum highlighted that the sector’s efforts to reduce carbon emissions are being hindered by two main factors: insufficient supply of alternative fuels and inadequate bunkering infrastructure for these new fuels. While decarbonization is widely regarded as one of the biggest challenges for the shipping industry, some view it as a unique opportunity to break away from traditional cycles. The industry seeks ways to overcome these hurdles to meet its environmental goals and adapt to a low-carbon future.
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