Shanghai Port Congestion and the Brewing Global Supply Chain Crisis

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One out of every 5 container ships worldwide is waiting outside a Chinese port due to heavy congestion brought in by covid lockdown in China [1]. This could mean that another supply chain crisis is looming large on the horizon, waiting to crumble the global supply chain. The first signs became visible in March 2022, when the volume of goods being shipped by sea out of Shanghai dropped by 26%. It was seen that between March 12, when the targeted lockdown was introduced, and April 4, the volume of goods leaving the Shanghai ports by trucks fell by 19% [6]. The scale of the problem hanging over our heads can be sensed by the AIS data of the ships around China, which depicts 300 container ships and 500 bulk ships waiting off the coast of China [3].

The story begins with the outbreak of the omicron variant in China, following which the Chinese Government resorted to its tried and tested method of initiating its zero covid policy. China’s zero covid policy is directly responsible for such a steep drop in cargo movement. There are enormous backlogs of cargo to be shipped and to be received. At this point, even if the lockdown were to be magically removed, it would be cold comfort to the supply chain professionals as it only opens the floodgates for the crisis to progress.

Shanghai port congestion in FleetMon Explorer.
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FleetMon Maritime Gallery March 2022

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Welcome to our third edition for 2022 of the FleetMon Maritime Gallery. Each month, you’ll find a special section on our blog featuring the Best Maritime Photos in a certain category. You’ll not only get to view the most popular photos being voted by our community. We also present special shots which are less noted but in the same way extraordinary.

March is all about new beginnings. Spring has begun, nature awakens from winter sleep, and the first plants and flowers sprout. The sun also treats us more often now, which brings us to this Maritime Gallery topic. We have compiled the most beautiful photos that show ships shining in bright sunlight.

Enjoy the most beautiful sunlight-themed shots taken by ship spotters from our community on FleetMon.com

To all our ship spotters out there: We truly appreciate your work. Keep it up, guys!

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Carbon Intensity Indicator (CII) and Its Impact on the Global Shipping Industry

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The latest report of the IPCC (Intergovernmental Panel on Climate Change) woke the world from blindly following the economic frenzy at the expense of the environment. IPCC forecasts read that the global temperature could rise as much as 10F over the next decade[1].

In this environmental disaster, the maritime industry happens to be a significant contributor. The 4th IMO GHG study states that ships worldwide emitted 1076 million tons of greenhouse gases in 2018, which accounts for nearly 3% of the global greenhouse emissions [2][3]. The IMO has been pulling its weight to put a damper on this unchecked emission growth and limit the damage.
IMO has come up with its ambitious goal of achieving a 40% reduction in CO2 emission from the 2008 level by 2030 and a massive 70% reduction by 2050 [4]. Pursuing its goal, IMO introduced mechanisms such as EEDI (Energy Efficiency Design Index ), EEXI (Efficiency Existing Ship Index) and now the latest is the Carbon Intensity Indicator (CII).

©Photo by Don Mingo on Unsplash

What exactly is the CII ?

In essence, CII measures how efficiently a ship transports its goods or passengers in terms of CO2 emitted. More precisely the CII is the grams of CO2 emitted per ton of cargo transported across every nautical mile. It was one of the regulations adopted by IMO in June 2021 and will come into force from 1st January 2023, covering all cargo, RO Pax, and cruise ships above 5000 GT [5].

The CII value of a vessel will be evaluated annually and compared to the reference CII values determined by IMO. The emission data of 2019 sets the reference line. Based upon this comparison, the performance of every ship will be rated on a scale of A to E, with A being the best. Achieving the CII rating equivalent to the reference line will land a ship squarely in the middle of the C rating, with better and poorer performances progressively leading to higher or lower ranks. For the start in 2023, the reference line will be set at 5% emission reduction concerning the 2019 level and then gradually move up to 11% reduction by 2027 [6][7].

How will CII impact the shipping industry?

With the adoption of guidelines and tools such as the CII, EEXI, SEEMP, etc., IMO is working on reducing the carbon footprint of the maritime industry. However, some industry experts believe that IMO might have been overzealous in reducing emissions. An analysis conducted by ABS using EU-MRV 2019 data suggests, that to 92% of the current container ship fleet, 86% of bulk carriers, 74% of tankers, 80% of gas carriers, and 59% of LNG carriers would require modification and operational changes of some kind to achieve A, B or C energy efficiency rating [8].

FleetMon in Research & Development: EmissionSEA – Extrapolation of emissions from ships

The ship owner’s struggle

From the above ABS data, it is obvious that a vast number of ships would require retrofitting to achieve favorable CII ratings. Securing finance for such retrofitting will be a challenge for small shipowners who often have older ships as ship finance is rapidly moving towards Environment, Sustainability, and Governance (ESG) goals. The Poseidon principles and the Sea Cargo Charters are essentially frameworks for integrating climate considerations in shipping’s financial decisions. Financing a poorly CII rated ship would increase the risk of the financer as a D-rated vessel today might slip to an E rating tomorrow when CII becomes stringent in coming years [9].

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FleetMon Maritime Gallery February 2022

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Welcome to our second edition for 2022 of the FleetMon Maritime Gallery. Each month, you’ll find a special section on our blog featuring the Best Maritime Photos in a certain category. You’ll not only get to view the most popular photos being voted by our community. We also present special shots which are less noted but in the same way extraordinary.

February is about the big topic offshore. We show you one of the largest fallpipe rock installation vessel, little but very strong tugs and impressive accommodation pontoons.

Enjoy the most beautiful offshore-themed shots taken by ship spotters from our community on FleetMon.com

To all our ship spotters out there: We truly appreciate your work. Keep it up, guys!

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Cape Horn – The Most Dangerous Passage in The World

in Maritime Knowledge by

Old sailor saying:

“Below the 40th parallel, there is no law. Below the 50th parallel, there is no God.”

Cape Horn, the southernmost headland of the Tierra del Fuego archipelago is located at 56 degrees south latitude, making a circumnavigation of Cape Horn particularly difficult. At Cape Horn, the Atlantic and Pacific oceans meet – and that’s what made the circumnavigation such a challenge. Extreme low-pressure systems swirl across the sea, creating the dreaded williwaw winds. These gusts come suddenly, frequently, and are unpredictable – and with bigger winds come bigger waves. To sail from the Atlantic to the Pacific, the only sea route was around Cape Horn. The Strait of Magellan was difficult to pass because of the wind and current conditions.

Hornos Island in FleetMon Explorer
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