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Ship Photo of The Week
A Coast Guard C-130J Super Hercules aircrew from Air Station Kodiak conducts an overflight of a fire aboard the cargo vessel Morning Midas approximately 300 miles south of Adak, Alaska, June 3, 2025. U.S. Coast Guard
Top Stories
Another Car Carrier Goes Up in Smoke
Another week, another car carrier fire — this time aboard the Morning Midas, now smoldering 340 miles south of Adak, Alaska. The Liberian-flagged vessel was en route from Yantai, China, to Mexico with more than 3,100 vehicles on board, including 65 fully electric and 681 hybrid models, when smoke was first spotted on one of the electric vehicle decks on June 3.
Despite the crew’s swift response, the fire spread rapidly, forcing all 22 crew members to abandon ship. They were safely rescued by the merchant vessel Cosco Hellas, and no injuries were reported. A U.S. Coast Guard overflight on Wednesday morning confirmed flames were visible and the fire had spread to multiple decks. The ship also appeared to be ever-so-slightly sunken by the stern, with an oil sheen also spotted in the water.
A Coast Guard C-130J Super Hercules aircrew conducts an overflight of cargo ship Morning Midas, June 4, 2025.
Its UK-based ship manager Zodiac Maritime has tapped Resolve Marine for salvage, but a fire-fighting tug isn’t expected to arrive until June 9.
The incident is the latest in a troubling pattern of fires aboard Pure Car and Truck Carriers (PCTCs). Allianz Commercial flagged the risk recently in its latest Safety and Shipping Review, citing a 20% year-over-year rise in shipboard fires — with EVs and battery energy storage systems increasingly involved.
“These are not risks under control,” said Captain Rahul Khanna of Allianz. “They’re only getting worse.”
Thermal runaway, toxic gas emissions, and challenges with shipboard fire suppression all factor into the growing concern. With the biggest PCTCs carrying some 10,000 vehicles these days, Captain Randy Lund of Allianz put it, “Should something go wrong, that’s a lot of value — and risk to the environment and to the safety of seafarers.”
The Morning Midas, built in 2006, was carrying fuel including 1,530 metric tons of very low sulfur fuel oil and 350 tons of gas oil. It was scheduled to arrive in Mexico on June 15. Instead, it’s now the centerpiece of another high-stakes incident — and a fiery reminder that PCTC and EV safety at sea remains an open case.
Rates Go Brrr: GRIs Send Freight Costs Skyrocketing
Container spot freight rates just pulled a rocket move. Thanks to June 1 general rate increases (GRIs), transpacific and Asia-Europe lanes saw double-digit surges, with Shanghai–Los Angeles rates on Drewry’s WCI jumping 57% to $5,876 per 40ft. Shanghai–New York? Up 39% to $7,164. Scarce space and a tariff pause have U.S. importers rushing to beat the clock.
Asia-Europe trades weren’t spared either—WCI’s Shanghai–Rotterdam leg rose 32%, Shanghai–Genoa 38%. MSC and CMA CGM are already eyeing mid-June hikes, but today’s SCFI hints the momentum may be slowing.
Drewry forecasts rates will slip in H2 2025 as demand cools and legal wrangling over Trump’s tariffs plays out. For now, shippers are paying up—or staying stuck on shore.
The U.S. Coast Guard has officially pulled the plug on its eleventh Legend-class National Security Cutter, USCGC Friedman, citing delays and budget concerns. Construction began in 2021, but as DHS Secretary Kristi Noem bluntly put it: the vessel is “nowhere near complete.”
Noem touted the cancellation for saving U.S. taxpayers some $260 million. In its place, the Coast Guard will receive $135 million in parts to keep its current fleet of ten cutters afloat—literally.
Shipbuilder Huntington Ingalls Industries (HII) confirmed the contract’s cancellation was mutual and part of a broader shift toward supporting the existing fleet. “We’ve agreed to sunset the NSC program and focus on maintaining readiness,” said an HII spokesperson.
The move raises questions about the Trump Administration’s promises to revitalize domestic shipbuilding—especially after HII furloughed nearly 500 salaried workers in May.
With Friedman scrapped, the National Security Cutter line officially ends at ten vessels—two over its original target. Whether this marks a strategic shift towards higher-priority projects like the Offshore Patrol Cutter and Polar Security Cutter (also struggling) programs or just a financial course correction remains to be seen.
DOJ Charges Ship Captain in Historic Maritime Assault Case
In a landmark and long-awaited case, the U.S. Department of Justice has filed criminal charges against former ship captain John Merrone for allegedly drugging and sexually assaulting a U.S. Merchant Marine Academy cadet aboard the Liberty Glory in 2019. It marks the DOJ’s first sexual assault prosecution aboard a U.S.-flagged commercial vessel in over 40 years.
The five-count indictment includes aggravated sexual abuse and multiple charges of abusive sexual contact while the victim was unconscious or unable to consent. Merrone, who had a prior criminal record, continued working at sea and hosting cadets until public outcry in 2022 prompted his expulsion from the American Maritime Officers union and a lifetime ban from the industry.
“This is about a broken system,” said Ryan Melogy of Justice4Mariners, counsel for the victim. The case follows a wave of revelations about sexual misconduct during USMMA’s Sea Year training program.
The U.S. Coast Guard Cutter Storis is shown here underway, June 3, 2025. U.S. Guard Coast
The U.S. Coast Guard’s Arctic ambitions just got a major boost with the maiden voyage of USCGC Storis (WAGB 21)—its first polar icebreaker acquisition in over 25 years. Formerly the Aiviq, the vessel was purchased from Edison Chouest Offshore for $125 million and retrofitted for polar ops under Force Design 2028.
The Storis, now boasting a Polar Class 3-equivalent rating and a hybrid civilian-military crew, will enhance U.S. presence in the Arctic amid increased Russian and Chinese activity. It’s slated for commissioning in Juneau this August but will temporarily operate from Seattle.
Built in 2012, Storis is a spring chicken compared to the aging Polar Star (1973) and Healy (1997). It’s the namesake successor to the legendary original Storis, retired in 2007.
The Coast Guard aims to build a fleet of up to nine polar icebreakers, with a new heavy cutter under construction and expected around (likely after) 2030.
Sanctioned LNG Set to Flow Again via Russia’s Shadow Fleet
Russia’s Arctic LNG shadow fleet is stirring. After five months idle, the Arctic Mulan has pulled alongside the Koryak floating storage unit in Kamchatka’s Bechevinskaya Bay, signaling a possible breakthrough in Novatek’s efforts to move sanctioned gas from the troubled Arctic LNG 2 project.
The Mulan raced from the Mediterranean in May and is now expected to receive cargo—its first since discharging at Saam FSU last December. Industry insiders suggest a buyer may be lined up, possibly in China, though its destination remains unknown.
The move coincides with Russia’s renewed push to utilize the Northern Sea Route, for which Mulan received clearance starting July 1. Fellow dark fleet carrier Nova Energy is also loitering nearby, still holding LNG loaded last October—albeit with significant boil-off losses.
As the U.S. bolsters its own Arctic capabilities with the new USCGC Storis, Russia appears to be reactivating its shadow LNG operations just in time for the summer season.
Panama Pushes Back on Iran Oil Smuggling Claims
Panama is firing back at accusations from United Against Nuclear Iran (UANI), which alleges the country is enabling Iran’s sanctions-busting oil trade. UANI claims 17% of suspected Iranian oil carriers fly Panama’s flag, prompting CEO Mark Wallace to call for sanctions against the registry.
In response, Panama’s Maritime Authority says it has de-flagged over 650 vessels since 2019, including 107 this March, and enacted tough new rules—like Executive Decree No. 512—to boot sanctioned vessels. It also points to global partnerships like the Registry Information Sharing Compact (RISC) as proof of its commitment.
But UANI isn’t convinced. Two of three ships recently sanctioned by the U.S. Treasury still flew Panama’s flag, fueling criticism that enforcement lags behind rhetoric.
Panama maintains it’s cooperating with U.S. authorities and following international law. Still, with Wallace declaring “the Panama flag… is stained with blood,” the pressure isn’t likely to ease soon.
Wenatchee Rewired: Largest U.S. Ferry to Go Hybrid
The M/V Wenatchee has officially joined the electric age. Vigor Marine Seattle has wrapped up a 21-month hybrid-electric conversion of the 202-vehicle Washington State Ferry, now the largest U.S. passenger ferry to undergo electrification.
The overhaul replaced diesel generators with 864 battery modules, added new propulsion control systems, and wove in miles of electric and fiber optic cabling—thanks to the hands of nearly 700 workers, including 600 union tradespeople.
Currently in sea trials and crew training, the Wenatchee will return to the Seattle–Bainbridge route this summer after final Coast Guard approval.
The project is part of Washington State Ferries’ ambitious System Electrification Program, aiming to modernize six vessels and build 16 new hybrids by 2040. Once fully operational, the three Jumbo Mark II ferries alone could cut diesel use by 4.7 million gallons a year and slash emissions by 95%.
Norway Reinventing Ship Recycling?
Höegh Autoliners and Nordic Circles are launching a ship recycling revolution in Norway, aiming to turn retired vessels into certified building materials—without melting a thing. The NOK 1.3 billion (~$128M) deal covers the upcycling of up to eight Höegh vessels, starting with decommissioning at AF Offshore Decom’s ultra-green Vats facility.
The project is expected to slash 100,000 tons of CO? from the construction sector and elevate Norway’s shipyards as EU-approved recycling hubs—challenging Turkey’s current monopoly.
“This is cradle-to-grave sustainability,” said Höegh COO Sebjørn Dahl. Nordic Circles CEO John Jacobsen calls it “circular economy at its best.”
Backed by public funds and supported by Skanska, Equinor, SINTEF, and others, the initiative hits just as the industry faces rising pressure for greener end-of-life solutions. With Norway and the EU controlling 45% of the world fleet by value, this project could reshape global ship recycling—one ship at a time.
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President Trump’s vast tax and spending bill has secured funds the U.S. Coast Guard has been searching for since the early 2010s. The “One Big Beautiful Bill Act” appropriates close to $9 billion for the expansion of the Coast Guard’s Arctic icebreaker fleet.
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