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Ship Photo of The Week
A man walks at China’s state-owned Cosco Shipping Chancay port inaugurated during the APEC Summit, in Chancay, Peru, November 14, 2024. APEC Peru/Handout via REUTERS
Top Stories
Automation Standoff Threatens U.S. Ports
The International Longshoremen’s Association (ILA) has walked away from negotiations with the United States Maritime Alliance (USMX) over port automation, reigniting fears of strikes at U.S. East and Gulf Coast ports come January. The union fiercely opposes automation—a hot-button issue that led to a three-day strike in early October. On the other side, USMX insists on modernizing operations to boost safety and efficiency.
The impasse threatens the fragile supply chain ahead of Lunar New Year and potential Trump-era tariffs, with disruptions likely to spike shipping rates. Both sides remain entrenched as the January 15 deadline looms, leaving businesses and global trade partners bracing for potential chaos on the docks. If no deal is reached, the incoming Trump administration could face one of its first major tests—untangling a potential disruption in the nation’s vital supply chain.
Montreal’s Port: Back in the Flow
After a turbulent period of labor disputes, the Port of Montreal is set to resume full operations on Saturday morning. The Canada Industrial Relations Board has ordered the immediate reopening of the port, following federal intervention to end the lockout that began after dockworkers rejected a final contract offer. The Maritime Employers Association has agreed to comply, allowing activities to restart over the weekend. This resolution comes as a relief, considering the port’s significant role in handling goods worth over C$1.3 billion daily. While it may take several weeks to fully restore supply chain fluidity, the port’s reopening marks a positive step toward economic stability.
China Docks in Peru
Chinese President Xi Jinping kicked off a Latin America tour by inaugurating a massive new port in Peru, funded by Beijing. The $3 billion Chancay port project, hailed as the “Gateway to Asia,” is a key part of China’s Belt and Road Initiative, promising to streamline trade routes between South America and Asia.
Located just north of Lima, the port features cutting-edge facilities and aims to handle over one million TEUs annually. While Peru celebrates the economic potential, critics view it as another example of China’s growing influence in the region. Either way, Chancay is set to make waves in global trade.
Aiviq: Preparing to Join the Ranks
The U.S. Coast Guard is set to bolster its Arctic capabilities with the addition of the icebreaker Aiviq, expected to join the fleet by year’s end. Previously a private vessel supporting offshore energy projects, Aiviq is preparing to assist in U.S. polar operations, filling critical gaps as ice coverage recedes and strategic competition in the Arctic heats up.
This move comes as the U.S. seeks to expand its presence in a region increasingly vital for trade, security, and resource exploration. With Aiviq joining the ranks, the Coast Guard gains a valuable tool in navigating icy waters and safeguarding national interests at the top of the world.
Germany Puts the Freeze on Russian LNG
Germany has turned away a shipment of Russian liquefied natural gas (LNG) at its Brunsbüttel terminal, signaling a firm stance against Moscow amid ongoing geopolitical tensions. The rejected cargo underscores Germany’s commitment to reducing energy dependency on Russia following its invasion of Ukraine.
With Europe tightening its grip on energy security, Germany is looking to diversify supplies and bolster alternatives like U.S. LNG. The move is both a political statement and a logistical pivot, as the continent adjusts to a post-Russian energy landscape.
Somali Pirates Walk the Plank of Justice
Two Somali pirates have been sentenced to 30 years in prison for their roles in the 2012 hostage-taking of American journalist Michael Scott Moore. The dramatic saga saw Moore held captive for 977 days, enduring grueling conditions while his captors demanded a $20 million ransom.
Justice caught up with the pirates after a decade-long pursuit, with their sentencing marking a rare win against maritime crime. Moore, now free and a vocal advocate against piracy, called the outcome “a step toward accountability in international waters.” The verdict is a stark reminder that piracy doesn’t pay—at least not for long.
Amazon and IKEA Go Green on the High Seas
Retail giants Amazon and IKEA, alongside other major shippers, are turning up the pressure on the maritime industry to adopt greener fuels. As part of the Cargo Owners for Zero Emission Vessels coalition, they’re committing to ship 5% of their goods on vessels using zero-emission fuels by 2030. The move is a bid to accelerate demand for alternative fuels like green ammonia and methanol, pushing shipowners to adopt more sustainable practices. With shipping accounting for nearly 3% of global greenhouse gas emissions, this initiative aims to chart a cleaner course for the industry—and a greener future for the planet.
Precision Payback in Yemen
U.S. forces struck back against Houthi military targets in Yemen over the weekend, delivering airstrikes on weapons storage facilities. The precision strikes, carried out on November 9 and 10, targeted arsenals responsible for recent attacks on ships in the Red Sea and Bab-el-Mandeb Strait.
The operation marks the latest escalation in U.S. efforts to counter Houthi aggression threatening global shipping routes. While no casualties were reported, the strikes underscore Washington’s resolve to safeguard maritime security and maintain the flow of trade through one of the world’s most critical waterways.
Bab-el-Mandeb Barrage
A day after the strikes, the U.S. Navy destroyers USS Stockdale and USS Spruance faced down a high-stakes missile and drone barrage from Houthi forces in the Bab-el-Mandeb Strait this week. The offensive included eight drones and multiple ballistic and cruise missiles aimed at the busy shipping lane. Fortunately, all threats were intercepted, leaving no damage or casualties.
The Strait, a crucial chokepoint for global trade, remains a hotspot as Houthi forces increase their maritime aggression. The successful defense highlights the Navy’s vigilance in protecting international waters—and shipping companies’ cargo—from regional threats.
Cape of Good Hope, Great Expectations
Hapag-Lloyd is weathering a mixed bag of results for the first nine months of 2024. Earnings dipped year-on-year, with Group EBITDA at $3.6 billion and net profit at $1.8 billion, largely due to lower freight rates and costly rerouting around the Cape of Good Hope. Yet, the German shipping giant bounced back in Q3 with strong demand and rising rates driving a solid recovery.
CEO Rolf Habben Jansen highlighted a 5% increase in transport volumes, reaching 9.3 million TEU in the first nine months of 2024, despite challenges in the Red Sea. While revenues from its Liner Shipping segment fell slightly, its Terminals & Infrastructure business surged, signaling successful diversification.
With a raised forecast and the Gemini Cooperation’s launch in sight, Hapag-Lloyd is betting big on reliability and growth—even if it means continuing to sail the long way around.
As always, we’d love to hear your feedback. Email [email protected] with any questions, comments, tips, or concerns. Don’t forget to check out the Club Discord and gCaptain.com for the latest maritime news.
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The Front Tyne oil tanker was sailing through the Gulf between Iran and the United Arab Emirates on Sunday when just past 9:40 a.m. shiptracking data appeared to show the massive vessel in Russia, in fields better known for barley and sugar beets.
War risk insurance premiums for shipments to Israel are as much as three times higher than a week ago as the war between Israel and Iran entered its fifth day, industry sources said on Tuesday.
Oil-shipping rates for Middle Eastern routes have spiked after some tanker owners and managers paused offering vessels as they assess risks from Israel’s conflict with Iran, fueling concerns over flows from the region.
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