Shipping carbon tax will impact African economies and food security: report
As the push towards the introduction of a global carbon tax on shipping gains momentum, a new report is highlighting that African economies are likely to be adversely affected. The report warns the tax may also negatively impact food security. Three Africa-focused policy organizations concluded that as the International Maritime Organization (IMO) moves forward with plans to introduce a levy/tax/carbon price mechanism aimed at putting a price on carbon to discourage shipping emissions, Africa must brace for impacts.
For the continent, the report warns that the imposition of a levy on carbon is likely to reduce the supply of maritime shipping services among African countries by up to 7 percent, with imports and exports expected to suffer significantly. The higher shipping costs will impose additional costs on the transportation of merchandise, thereby increasing the price of imports. Ultimately, they conclude that imports are bound to decline by 0.04 percent while exports will increase by 0.21 percent in aggregate.
In 30 years maritime crime and piracy at lowest level
In the first nine months of 2024, reported incidents of piracy and armed robbery fell to the lowest levels since 1994, according to the latest report by the ICC International Maritime Bureau (IMB). Despite the lowest number of reported incidents in three decades, IMB and its Piracy Reporting Centre continue however to warn that crew safety remains at risk.
IMB received reports of 79 incidents for the period between January and September 2024, down from 99 incidents in the same period last year. Bulkers appear to be the most vulnerable to incidents possibly due to the large number of these types of vessels which accounted for more than a third or a total of 30 of the reports. The reports however were nearly evenly split between vessels at anchor (38 incidents) and underway (37 incidents).
According to the report, the 20 percent decline in incidents this year versus last marks a significant overall reduction. It is the lowest reported numbers since 1994.
Russian ballistic missile strike damages two ships at port of Odesa
On Monday (last week), another Russian missile attack hit the Black Sea port of Odesa, damaging two merchant ships, including one that had already been hit in an earlier attack. The strike brings the tally of foreign vessels that have been damaged in the last few weeks to a total of four ships.
“Russian terrorists attacked Odesa with a ballistic missile. One person was killed and eight wounded,” said Oleh Kiper, the head of the Odesa Regional Military Administration. “The victims are in the hospital, and two of them are in serious condition.”
From its jask terminal Iran cuts oil exports
Iran appears to have halted or heavily cut back crude oil exports from its Single Buoy Mooring (SBM) off the Kooh Mobarak oil storage facility. The Kooh Mobarak SBM, 30 nautical miles west of Bandar-e Jask, is Iran’s only point of export outside the Gulf, and does not require passage through the Straits of Hormuz. It was designed specifically to permit continued exports if ever the Straits of Hormuz were closed to shipping, and to exploit saved tanker sailing days when compared with having to load at the nation’s primary terminal at Kharg Island.
Russia explores building four icebreakers
Russia is reportedly expanding its shipbuilding cooperation with India, with two Indian shipyards being considered for construction of four non-nuclear icebreakers. The project is estimated to cost a total of $713 million. The vessels will join Rosatom’s icebreaking fleet, operating in the Northern Sea Route (NSR).
According to Indian media reports, the government is in talks with two shipyards – one state-owned and the other private – for the construction of the icebreakers. The Russian nuclear agency Rosatom is mandated with the development of the NSR, including managing the icebreaking fleet for the route.
As the West tightens economic sanctions, Russia’s domestic shipbuilding sector is reeling under the pressure of supply chain disruptions. During a two-day state visit to Moscow in July, the Indian Prime Minister Narendra Modi agreed to strengthen cooperation with Russia in areas ranging from nuclear power to shipbuilding.
ESL Shipping Orders “Fossil-Free” Vessels to Lead Nordic Green TransitionESL Shipping, a dry bulk cargo carrier in the Baltic, highlights its new ship order as part of its ambition to lead the “green transition,” in the the Baltic region. The company which has been in business for 75 years and has over 40 vessels, has ordered a series of four handysize vessels which it is saying will be able to operate “fossil-free.”
The new 1A ice-class vessels ESL says will be able to operate entirely fossil-free by using green hydrogen-based e-methanol or biomethanol. The dual-fuel ships will be built in Nanjing, China at China Merchants Jinling Shipyard (Nanjing) Co, and will enter service between the third quarter of 2027 and the first quarter of 2028. The total value of the four ships is approximately €186 million and ESL Shipping reports it has the option to expand the order with several ships.
Canadian coast guard contracts to eliminate oil from long-forgotten WWII Wreck
As part of its efforts to protect Canada’s oceans and waterways, the Canadian Government is bringing back to life the story of a long-forgotten wreck from the World War II era which continues to haunt the Inside Passage between Canada and Alaska. The Canadian Coast Guard reported on October 10 that it has awarded a C$4.9 million (US$3.6 million) contract to Resolve Marine to remove oil from historic shipwreck USAT Brigadier General M.G. Zalinski.
It is an interesting tale shedding light on the forgotten past. The vessel was built in 1919 in Ohio known as Lake Frohna for operation as a Laker on the Great Lakes. She measured 251 feet (77 meters) and approximately 3,500 gross tons. Her career was undistinguished operating in the 1920s as Ace and finally in 1941 being acquired by the U.S. Government.