Hello Club Members! Here is your weekly Dispatch with all the maritime news you need to know to end your week.
Ship Photo of The Week
Anemoi Marine Technologies completed the installation of five Rotor Sails onboard the 400,000 dwt Very Large Ore Carrier (VLOC), Sohar Max, making it the largest vessel to receive wind propulsion technology to date. Photo: Anemoi Marine Technologies/Vale
Top Stories
All Aboard the SHIPS Act
In a bid to revive the U.S.’s maritime mojo, lawmakers have unveiled the SHIPS for America Act, a sweeping bipartisan effort to rebuild America’s shipbuilding and commercial shipping industries. Spearheaded by Senators Mark Kelly (D-AZ) and Todd Young (R-IN), and Representatives John Garamendi (D-CA) and Trent Kelly (R-MS), the legislation aims to expand the U.S.-flag fleet by 250 ships over the next decade while addressing national security concerns tied to dwindling military sealift capacity.
Key features? A White House Maritime Security Advisor, investment tax credits for shipyards, and a Maritime Security Trust Fund to reinvest industry fees. With backing from over 80 industry heavyweights, the bill is already being hailed as a game-changer. As Senator Kelly puts it, “We’ve lost ground to China. This bill is about reclaiming it.” Now, it’s up to Congress to set sail on what could be America’s maritime renaissance.
Hanwha Drops Anchor in Philly
In other shipbuilding news, South Korea’s Hanwha Group has officially taken the helm at Philly Shipyard, marking a $100 million milestone as the first Korean shipbuilder to set up shop in the U.S. The newly minted “Hanwha Philly Shipyard” aims to breathe fresh life into U.S. shipbuilding, blending Philly’s rich maritime legacy with Hanwha’s cutting-edge tech.
David Kim, the new CEO and former Hanwha Defense USA exec, promises big things: “We’re here to expand production, support national revitalization, and grow local jobs.” With an impressive orderbook—including National Security Multi-Mission Vessels and cutting-edge containerships—Hanwha brings serious firepower, from advanced naval systems to unmanned maritime tech.
Trump Waves the Jones Act Flag
President-elect Donald Trump has stirred the waters of maritime policy, sharing a pro-Jones Act article on Truth Social without comment. The post signals what many see as a nod to continued support for the century-old law in his upcoming administration.
The Jones Act, a cornerstone of the Merchant Marine Act of 1920, requires goods moving between U.S. ports to be carried on American-built, -owned, and -crewed ships. Critics argue it inflates costs, but supporters highlight its role in safeguarding national security, boosting job creation, and bolstering the domestic maritime industry.
Trump’s first term saw a mixed record on the law, with both vocal support and controversial waivers during hurricane seasons. As his second term approaches, the maritime industry is watching closely to see whether his policies will steer toward unwavering support—or make waves with exceptions. For now, the message seems clear: the Jones Act is staying afloat.
U.S. Ports Ride the Growth Wave
U.S. ports are riding a wave of import growth as businesses brace for potential Trump-era tariffs and labor unrest at East and Gulf Coast ports. November marked the 14th straight month of inbound container growth, with volumes up 13.1% year-over-year across the top 10 ports, according to analyst John McCown.
Adding to the action is a coastal shift, with West Coast ports outperforming East/Gulf Coast facilities in 14 of the past 16 months. The West Coast, led by record-breaking performances at Long Beach and Los Angeles, outshined its East Coast rivals again in November, as labor disputes steer more cargo westward. With a total $185.3 billion in containerized goods moving through U.S. ports last month, McCown calls the growth “unusually strong and consistent.”
The question now: can imports keep up the momentum?
Shadow Fleet (Still) in the Crosshairs
The West is ramping up its crackdown on Russia’s shadow fleet, with the UK leading the charge by sanctioning over 100 vessels linked to Russian energy transport. The European Union is following suit, this week unveiling its 15th sanctions package targeting 52 more ships suspected of dodging price caps, transporting military goods, or carrying stolen Ukrainian grain, bringing the EU total to 79 sanctioned vessels.
Among the latest targets is the Christophe de Margerie, the first vessel from Russia’s Yamal LNG project to face sanctions. The move marks a significant expansion of sanctions against Russia’s maritime circumvention tactics.
Meanwhile, 12 European nations, including Denmark and Sweden, are introducing insurance checks on Russian tankers passing critical waterways, like the Danish Straits, which handle 7% of global seaborne oil and a key trade artery for Moscow’s petroleum exports.
Denmark has sounded the alarm on potential Russian naval escorts for shadow fleet tankers navigating the Straits. The Danish Defense Intelligence Service warns such actions could escalate tensions with NATO, marking a shift toward “more threatening military behavior” from Russia. As nations prepare to enforce stricter scrutiny, the stakes in this maritime chess match are rising.
Israel Strikes Houthi Ports Amid Red Sea Tensions
Israel launched airstrikes on Houthi-controlled ports and energy infrastructure in Yemen on this week, targeting Salif, Ras Issa, and the capital Sanaa. The operation, involving 14 fighter jets, following months of Houthi missile launches at Israel and recent attacks on international shipping in the Red Sea.
The strikes also came days after U.S. aircraft targeted a Houthi command facility in Yemen’s capital used to coordinate assaults on U.S. Navy warships and merchant vessels. The U.S. Navy, bolstered by the arrival of the Harry S. Truman Carrier Strike Group, has intercepted multiple Houthi-launched drones and missiles in recent weeks, safeguarding critical trade routes. As the Houthis vow retaliation and tensions escalate, concerns are mounting. The Southern Red Sea remains a hotspot as military operations intensify.
Houthis Host a Seminar on… Shipping Security?
In a plot twist worthy of a maritime satire, the Houthi rebel group—known for a year of drone and missile attacks on vessels—has announced plans to host a seminar and webinar on “security of navigation in the Red Sea.” The group is even soliciting input from industry insiders to “enrich the discussion.”
The invite, sent by the Humanitarian Operations Coordination Center (HOCC)—the same entity that issued threats to shipping companies earlier this year—has left the maritime community both bemused and skeptical. The HOCC once warned vessels calling at Israeli ports would be “directly targeted” and ships refusing cooperation would be “banned” from the Red Sea.
While the softer tone of this email invites collaboration on ensuring safe passage, experts caution against engagement, noting it could inadvertently legitimize the Houthis’ disruptive tactics.
Biden Pushes High Seas Treaty for Senate Approval
President Biden has sent the High Seas Treaty to the Senate for ratification, positioning the U.S. to play a leading role in protecting marine biodiversity beyond national waters. Officially titled the Agreement on the Conservation and Sustainable Use of Marine Biological Diversity of Areas Beyond National Jurisdiction (BBNJ), the treaty covers two-thirds of the world’s oceans and aims to safeguard at least 30% of global marine areas by 2030.
Adopted in June 2023, the treaty introduces measures for marine protected areas, genetic resources, environmental impact assessments, and technology sharing. Despite the U.S. not ratifying the broader UN Convention on the Law of the Sea, Biden has championed this agreement as vital to U.S. interests. With 60 global ratifications needed to bring the treaty into effect, Biden now awaits the Senate’s two-thirds approval to make this landmark conservation effort a reality.
Cruiser Modernization Sinks $3.7 Billion
The U.S. Navy’s modernization program for Ticonderoga-class cruisers has floundered, squandering $3.7 billion and falling short of its goals, according to a damning GAO report. Launched in 2015, the initiative aimed to extend the service life of 11 cruisers by five years, but only three ships will complete upgrades—and none will achieve the planned lifespan extension.
The GAO highlights costly missteps, including inadequate planning that triggered 9,000 contract changes and $1.84 billion spent on four cruisers later scrapped before deployment. A botched sonar dome repair on the USS Vicksburg underscored quality control failures, exacerbated by controversial Navy decisions to cut inspections and limit penalties for contractors.
The Navy has accepted six GAO recommendations to address planning and oversight gaps, but with billions lost and readiness impacted, questions linger over how the service will right the ship moving forward.
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.
4 hours ago
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