-          filtration,

-          UV radiation

-           and ozone generated in-situ by the UV-system.

DESMI Ocean Guard’s unique ozone generating low pressure UV lamps allow us to do double treatment, UV and ozone, with very low power consumption. Tests have shown that our system is very effective and exceeds the requirements from IMO. Tests also showed that fresh water is particularly challenging, but by optimizing the system we managed, as the first, to pass the IMO tests also in fresh water”, – says Rasmus Folsø from Maersk Maritime Technology that has been working closely with the project in the last few years.

The International Maritime Organisation has acknowledged the problem of invasive maritime species and adopted a convention that requires all vessels to clean their ballast water to prevent the transfer of micro-organisms from one ocean to another. New and existing commercial vessels will be required to have a cleaning system in place by 2019 at the latest, depending on the ballast water capacity of the vessel.

Ballast water

In another big hint that digital and shareable media is fully spreading into the commercial shipping world, Maersk Line announced the launch of their Vimeo channel.  Lots of good stuff on there with a particular focus on their new Triple-E class containerships.  Once built, these 400-meter long vessels will be the largest ships on the ocean and capable of carrying a whopping 18,000 containers at once.  This resultant economy of scale will reduce the price per TEU by 20 to 30 percent along the Asia-Europe trade route.

Here’s another video that shows how the hull design and cargo arrangement differs from current containerships.

Click here to view the embedded video.

Now to give you some perspective as to the size of the vessels; imagine a basketball court seating several thousand, a full sized American football stadium with some twenty thousand spectators, and, finally, a spectator packed ice hockey stadium.  They can all fit below deck… at the same time!

Click here to view the embedded video.

The government says that Maersk inflated invoices in various ways including billing more than the agreed contractual rate, billing excessive detention charges (late fees), billing for container delivery delays improperly attributed to the U.S. government, billing for GPS-tracking and security services that were not provided, or only partially provided, and failing to credit the government for rebates of container storage fees.  As gCaptain reported earlier, the Pentagon has paid Maersk an astounding $720 million in late fees on shipping container rentals since 2001.

The settlement resolves all allegations against Maersk that were filed in San Francisco by Jerry H. Brown II, a former industry insider. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to bring lawsuits on behalf of the United States and receive a portion of the proceeds of a settlement or judgment.  Brown, in this case, will receive $3.6 million.

Nils Smedegaard Andersen

The global head of the world’s largest container shipping company, A.P. Moller – Maersk Group CEO Nils S. Andersen, was admitted to hospital in Switzerland on 30 December 2011 for emergency heart surgery.

Nils S. Andersen has, unwittingly, had a leak in one of his heart valves, caused by either an infection or a weakness. During a vacation in Switzerland his condition deteriorated acutely, and therefore he has undergone surgery which comprised replacement of a cardiac valve. The operation went well. Nils S. Andersen is expected to be absent for about one month, and the doctors are expecting a full recovery.

“I am very sorry that Nils S. Andersen is going through this course of illness, but I am pleased that he quickly received the right, skilled treatment which coupled with the fact that he is in good shape means that we can soon welcome him back,” says the chairman of the board of A.P. Møller – Mærsk A/S, Michael Pram Rasmussen.

“The Executive Board will continue to run the A.P. Moller – Maersk Group, however, during Nils S. Andersen’s absence the individual board members will be in close contact with me,” says Michael Pram Rasmussen.

Via A.P. Moller – Maersk Group

Søren Skou has been appointed new CEO of Maersk Line with effect from 16 January 2012. Søren Skou was previously CEO of Maersk Tankers and replaces Eivind Kolding who is leaving Maersk Line to become Chairman of the Executive Board of Danske Bank.

”Under Eivind Kolding’s skilled leadership, Maersk Line has undergone an impressive turnaround. Its competitiveness has improved significantly and at the same time, Maersk Line has set new standards for the industry with regards to environment and reliability. Furthermore, Maersk Line has gotten a much stronger focus on the customers,” says Group CEO Nils S. Andersen, A.P. Moller – Maersk.

”I am very pleased that Søren Skou has accepted the important task as CEO of Maersk Line. Søren is a sharp and visionary leader with strong international leadership experience, not least within shipping. He knows container shipping very well both from the time he worked for Maersk Line but also as a member of the Group’s Executive Board where he has stayed in close touch with Maersk Line and the industry. He is quite the right man to continue the development of Maersk Line and expand our positions in the market,” says Nils S. Andersen.

Søren Skou previously held various positions in Maersk Line, from 1983 to 1998. In addition to being CEO of Maersk Tankers since 2001, Søren Skou has played an important part in the Group’s Executive Board. He has, amongst others, headed the Group’s initiatives to reduce costs in 2009 and 2010. In 2011, he has been the leader of the Group’s preparations for further expansion in the new growth markets.

In order to concentrate fully on the tasks in Maersk Line, Søren Skou’s additional positions will gradually be transferred to others in the Group. These include, among others, the board positions of DFDS and Danish Shipper’s Association, where the Group will nominate CEO of Maersk Drilling Claus V. Hemmingsen, and Maersk Container Industry, where CEO of APM Terminals Kim Fejfer will take over the chairmanship.

The Group expects to fill the position as new CEO of Maersk Tankers internally. Until then, all of Søren Skou’s direct reports will report directly to Group CEO Nils S. Andersen.

Algae to power Maersk Kalmar container. Photo: Maersk

Can a ship sail on algae power? That’s the expectation as a partnership involving the United States Navy and a handful of Maersk companies gets underway.

For the Maersk Group’s fleet of more than 1,300 vessels, biofuels pose a host of potential advantages—and real challenges. One project underway right now is exploring the prospects of one especially green fuel.

Maersk Line’s 300-meter long Maersk Kalmar container vessel is sailing its normal route from Bremerhaven, Germany to Pipavav, India, delivering cargo to the usual ports along the way. However, during its one-month-long, 6,500 nautical mile voyage, Kalmar will be doing something very much out of the ordinary—it will be burning 30 tonnes of fuel derived from algae.

A team of engineers from Maersk Line, Limited, Maersk Maritime Technology and Maersk Line are onboard Maersk Kalmar running the project. They are testing blends of the fuel—which is clear, not green—ranging from 7 percent algae fuel up to 100 percent in one of the ship’s auxiliary engines. That means Maersk Kalmar isn’t actually sailing on algae power, yet; the energy produced will only power the ship’s electronics. But if all goes as planned, the main engine could also eventually run on algae fuel.

“The properties of this fuel are similar to marine gas oil, so if we can successfully run the auxiliary engine on this fuel for long periods of time as we suspect, we will also be able safely use it in the main engine as well,” says Klaus Jørgensen, engineer in Maersk Maritime Technology.

The challenges with biofuel

Two of the biggest challenges surrounding biofuels are the price and sustainability. Any alternative fuel must be available on a large commercial scale and should not have a negative impact on agricultural production, says Maersk Line’s Jacob Sterling.

“Biofuel made from algae is one of the less developed biofuels and with further technological advancements it has the potential to be scaled up without impacting agriculture,” says Sterling. “At this point it is early days for biofuels, so our focus is to continue pursuing tests and partnerships like this to keep building our knowledge around a variety of technologies and fuel types.”

Fuel for the future

The U.S. Navy, which is the main sponsor of the test and also supplying the 30 tonnes of algae fuel, intends to source 50 percent of its energy from alternative fuel types by 2020 as a part of its ‘Great Green Fleet’ initiative. For Maersk Line, testing of biofuels is part of a wider strategy for reducing it’s the CO2 emissions. By 2020, it is Maersk Line’s target to have reduced its CO2 emissions by 25% per container moved, compared to 2007 – a target that will be reached by means of efficiency gains.

“The shipping industry needs to dramatically reduce greenhouse gas intensity in the coming decades. In the short term, we can gain a lot by focusing on improving energy efficiency. In the longer term, say 15 years or more, we would like to see sustainable biofuels become a commercially available low-carbon fuel,” said Jacob Sterling, Head of Climate and Environment for Maersk Line.

Source: Maersk

“The shipping industry needs to dramatically reduce greenhouse gas intensity in the coming decades. In the short term, we can gain a lot by focusing on improving fuel efficiency. In the longer term, we would like to see sustainable biofuels become a commercially available, low-carbon fuel,” said Jacob Sterling, Head of Climate and Environment at Maersk Line.

The 300 meter-long Maersk Kalmar has two key attributes that make the vessel suitable for biofuel testing.  First, the vessel has a dedicated auxiliary test engine, which reduces the risks of testing.  And, second, its fuels system has a special biofuel blending equipment and separate tanks.

During the month-long, 6,500 nautical mile voyage from Bremerhaven, Germany to Pipavav, India, the ship will use 30 tons of biofuel. Engineers and crew onboard are testing blends ranging from 7% to 100%. The team is also analyzing emissions data on NOx (nitrogen oxides), SOx (sulphur oxides), CO2 and particulate matter from the fuel use, along with effects on power efficiency and engine wear and tear. Tests are scheduled to conclude in early December with an analysis of results following soon thereafter.

“We expect to identify an optimal blend of distillate and biofuel that will meet the more stringent requirements of the International Maritime Organization’s forthcoming emissions regulations,” said David Anderson, Maersk Line, Limited’s technical representative for the project.

“The test is part of a journey to spur innovation in fuel R&D, diversify the fuel supply and improve environmental performance. It is a long-term goal Maersk shares with the Navy,” added Anderson.

Last week, the U.S. Navy announced an order for 450,000 gallons of renewable biofuels, the largest of ever of its kind.

The Denmark-based shipping and oil company on Wednesday said overall profit fell 82% to 1.64 billion Danish kroner ($304.7 million), from 9.2 billion kroner a year earlier.

Sales slipped to 80.79 billion kroner from 81.25 billion kroner as higher shipping volume partly offset weak freight rates and reduced output from oil and gas operations.

The company’s container-shipping unit, the world’s largest, swung to a loss of 1.58 billion kroner from a profit of 5.9 billion kroner last year. Maersk Line’s shipping rates fell 12%, and its fuel costs rose 48%.

Maersk forecast that the container business would post a loss for the full year and said it didn’t expect rates to improve until next year. The company previously forecast that the container business would record a moderate gain.

“We are standing at a quite solid bottom at the moment,” Chief Executive Nils Smedegaard said. “The high season just ended, so we don’t expect volume growth in the next months. Realistically, we will continue to see low rates, but I find it difficult to believe that we won’t experience some rates improvement during the course of 2012.”

He said, however, that Maersk Line will continue to operate at full capacity at sea, setting the stage for a rate war. “Some capacity will have to come out. We’re not telling competitors what to do, but this is not an environment for small operators with weak balance sheets,” Mr. Smedegaard said.

His comments signaled an extended, costly battle in the industry, said Philip Damas, director at maritime research firm Drewry Shipping Consultants. “Overcapacity has already dragged all shipping companies into the red. Maersk’s decision not to pull out capacity indicates it’s determined to win the future market. It may make sense for Maersk individually, but not for the industry as a whole,” he said. “We estimate rates will continue to decline at least until the end of next year, which means the industry will be in red all next year.”

Lars Jensen, managing director at maritime research firm SeaIntel, noted that Maersk increased its volume on Europe-Asia routes by 24% in the third quarter as average rates on the routes declined 26%. Overall market growth was merely 4%. “The key to success in the industry is to win Europe-Asia, and Maersk Line’s third-quarter results show it has been extremely aggressive. It was one of the driving forces behind the negative rates development in the quarter,” he said.

Europe-Asia routes, which are Maersk Line’s most important in terms of revenue, will be dominated in coming years by a few large players, Mr. Jensen said. “Those with large ships, such as Maersk Line, may have an interest in keeping the market weak, because it also keeps the smaller, less cash-strong players from investing in larger ships,” he said.

Maersk forecast profit at the group level of between $3.1 billion and $3.5 billion—below the $4.71 billion posted for last year.

(c) 2011 Dow Jones & Company, Inc.

Pictured: MAERSK MAGELLAN, DFDE vessel in the Maersk LNG fleet

COPENHAGEN—Danish industrial conglomerate A.P. Moller-Maersk A/S said Wednesday it has reached a deal to sell its liquefied-natural-gas transport unit Maersk LNG, as it refocuses on its shipping, container and oil businesses.

The LNG unit, which owns and operates a fleet of six LNG carriers and owns 26% stakes in another two vessels, has been purchased jointly by Teekay LNG Operating LLC and Japan’s Marubeni Corporation for $1.4 billion on a cash and debt-free basis, Maersk said in a statement.

Maersk has sought a buyer for Maersk LNG since it announced its intention of divesting the unit in May. The company said Wednesday the LNG unit doesn’t have the scale to influence how the industry develops.

“As Maersk LNG is not within those core business areas where the Group intends to invest, the conclusion is that Maersk LNG would benefit from a different ownership,” the company said Wednesday.

Maersk said the agreement comprises all of Maersk’s LNG vessels and the stakes it owns in carriers.

The transaction remains subject to customer consent and regulatory approval and is expected to be completed during the fourth quarter of 2011, Maersk said.

By FLEMMING EMIL HANSEN (c) 2011 Dow Jones & Company, Inc.