[By Joe Keary]

Australia can take three lessons from Chinese military behavior in the past two weeks.

China will keep conducting dangerous military maneuvers against us and other countries in the South China Sea; its actions will continue to differ from its words; and it is likely to send advanced Chinese warships to our region more often and for longer.

It has been an eventful fortnight in the China-Australia military relationship. First, on 11 February the Department of Defence reported the fifth known incident of unsafe behavior by China’s military towards the Australian Defence Force. On the same day the department reported that a powerful Chinese naval task group was operating in Australia’s northeastern maritime approaches.

On 17 February, Defence reported that it had restarted senior military talks with China. Talks were held at the level of vice chief of defence, and this marked the first time that senior-level dialogue had been held between militaries since 2019. Previous talks had occurred at the level of chief of defence, and working level talks have been held twice since 2019.

Finally, on 21 February and the following two days, the Chinese task group conducted not one but two live-fire exercises in the Tasman Sea, between Australia’s most populous region and New Zealand. These unprecedented exercises, while consistent with international law, came with limited notice, meaning commercial aircraft had to quickly change flight paths to avoid potential danger. Foreign Minister Wong challenged her Chinese counterpart over the incident on the margins of a G20 meeting in South Africa.

Expect China’s military to keep targeting Australia, as well as other US allies and partners that uphold freedom of navigation and overflight in the South China Sea. In the coming month, ASPI will release a live tracker of military incidents to outline frightening trends of unsafe behavior by China’s military towards Australia, the US, Canada, the Netherlands, the Philippines and any other country that challenges Beijing’s excessive maritime claims.

Second, this fortnight reminds us of the vast gulf between China’s words and actions. China’s readout of the 17 February defence talks noted that both sides had ‘agreed to continue strengthening strategic communication … properly handle disputes and differences, and carry out exchanges and cooperation.’ Its South China Sea challenges are the cause of dispute, while its far seas deployments lack transparency and communication.

This lesson also reminds us that while China’s tactics may change, its strategy does not. We may have ups and downs in our diplomatic, economic and military relations with China, but long-term trends reflect a deteriorating relationship with a global power set on expanding its influence. The past fortnight has provided a snapshot of China’s ability to deploy a variety of tactics, which in this case were designed to signal its military reach and test Australia’s military and diplomatic responses.

The third lesson is that we should expect more Chinese naval deployments in and around Australia’s exclusive economic zone. This trend has been evident since 2022, but there are broader developments underway in China’s military that indicate Beijing’s ambition to develop a global navy that will be able to project power into our region more frequently and for longer periods at a time.

China’s naval strategy for most of the 20th century was focused on coastal defence. However, since 2008, it has deployed naval task groups to the Gulf of Aden for counter-piracy operations. These have typically been made up of two combatant ships and an oiler for logistical support. Each task group can stay in the gulf for about four months.

Due to a lack of support ships or a network of overseas support bases, we haven’t seen regular and sustained deployments by China’s navy to other areas of the globe. But this trend is changing.

In December 2024, the US Department of Defense reported that ‘China is expected to build additional fleet replenishment oilers soon to support its expanding long-duration combatant ship deployments.’ China has 12 replenishment oilers that support long-distance, long-duration deployments. (The US Navy operates 15 replenishment oilers and and can also use the allies’ ports.) Construction of new oilers has become a priority for China, especially given its lack of overseas logistics facilities.

China had initial success in establishing an overseas base at Djibouti, which now provides some logistical support to China’s naval deployments. China also maintains a regular military presence at the Ream naval base in Cambodia. However, despite efforts to persuade other countries, including Pacific Islands countries, China has yet to establish military bases or logistical facilities elsewhere.

As China’s navy improves its logistics and defensive capabilities, a lack of overseas bases will only slow, not stop, China’s ambition to project naval forces into global environs (including Australia’s) more often and for longer durations. This will have implications for Australia’s own limited naval capabilities, which will come under pressure to monitor more Chinese ships in our region, while continuing operations that support freedom of navigation and overflight in the South China Sea.

Joe Keary is a senior analyst at ASPI. This article appears courtesy of ASPI's The Strategist and may be found in its original form here. 

 

British oil major BP has joined its peers in scaling back renewable-energy initiatives in favor of a return to its historical focus on oil and gas. On Wednesday, BP Chief Executive Officer Murray Auchincloss told investors that the company's controversial  plan to pivot fast and early towards green energy is now over. "This is a reset bp, with an unwavering focus on growing long-term shareholder value," Auchincloss said in a statement.

In 2020, under then-CEO Bernard Looney, BP announced a 10-fold increase in low-carbon energy investment by 2030, combined with emissions reductions of 35 percent and a managed 40 percent decline in oil and gas production over the same period. At the time, it was perhaps the most ambitious decarbonization proposal that any oil major had announced. 

However, BP and its peers have been gradually walking back their green investment plans. Under pressure from investors to show better free cash flow and stronger quarterly returns, BP now plans to "fundamentally reset strategy." It will now increase investments in oil and gas to $10 billion a year and cut planned investments in renewables down to $1-2 billion a year, $5 billion less than previously planned. The new approach will increase O&G production to 2.5 million barrels a day by 2030.

Its renewables business will be "disciplined" going forward, with a focus on biogas, biofuels and EV charging - not on costly offshore wind. BP has also announced a strategic review of its Castrol lubricants business. 

"We are reducing and reallocating capital expenditure to our highest-returning businesses to drive growth, and relentlessly pursuing performance improvements and cost efficiency. This is all in service of sustainably growing cash flow and returns," said Auchinloss. "We will be very selective in our investment in the transition, including through innovative capital-light platforms."
 

 

Taking a page from the tactics of former Indonesian fisheries minister Susi Pudjiastuti, the Australian Border Force has seized and burned two illegal foreign fishing vessels off the coast of the Northern Territory. It is the latest in a series of interdictions intended to cut off illegal migration and shut down illegal Indonesian fishing vessels in this far-flung region, where there are few settlements and limited government presence. 

Aboriginal rangers spotted the foreign fishing vessels near Maningrida, a remote village with no connection to the national road network, and reported the presence to the ABF. On Sunday, ABF vessels located and intercepted the two Indonesian boats near Maningrida and Port Essington. They detained the fishermen, confiscated the catch of 1,200 kilos of sea cucumber, and seized the fishing equipment. The vessels were destroyed at sea, as allowed under Australian law. 

“ABF is dedicated to responding to every report of illegal foreign fishing in the Northern Territory," Commander Griffin said. “We are grateful to the Djelk Rangers for their diligent reporting of this sighting. The unique and detailed knowledge that Indigenous ranger groups and Traditional Owners and custodians possess . . . is invaluable in supporting our efforts to protect our borders."

In December, the agency launched a new operation to intercept foreign fishing vessels that operate on the long and empty stretch of roadless coastline. The new push has been bearing fruit: in the first month of operations, 12 vessels were interdicted, resulting in the seizure of six tonnes of illicit catch. 

Illegal fishing has been a problem for local Aboriginal groups for a long time, but the pace has recently increased, along with new evidence of human smuggling. In October, a group of up to 30 unauthorized migrants from four boats were reported in the Northern Territories - igniting a minor political furor in Australia, where maritime migration is rigorously discouraged. 
 

 

Efforts to continue to build out the engine options for shipowners seeking to align with the emerging trends for alternative fuels continued with WinGD highlighting the delivery of the most powerful methanol-fueled engine for ships. It is the largest yet built for methanol and part of the company's diversified future offering including LNG and ammonia-fueled engines.

The Swiss company which has been in the engine business since 1893 highlights that the new methanol engine is ready for delivery after passing factory and type approval tests. It launched the line with a ten-cylinder, 92-bore X-DF-M engine while reporting it is offering engines with bore sizes ranging from 52 to 96, in similar cylinder configurations and engine rating fields as its diesel-fueled engines. The methanol rollout proceeds ammonia-fueled engines which are still in the testing phase but expected as early as mid-year.

“Production of sustainable, renewable fuels of all types continues to advance, but long-term availability and cost remain uncertain,” commented Dominik Schneiter, CEO of WinGD. As interest in methanol and regulatory clarity increases, we anticipate the X-DF-M platform will become a key contributor to reducing greenhouse gas emissions from global shipping.”

The milestone was marked by a delivery ceremony held at engine builder CMD in Shanghai and included a ceremony for the signing of the approval certificate by eight classification societies. According to WinGD, this assures that the engine can be built to WinGD’s design by all engine builders.

The first engine will be shipped to COSCO Heavy Industry’s shipyard and is slated for installation on a 16,000 TEU containership being built for COSCO Shipping. COSCO is expanding its methanol operations after having also recently celebrated the naming of China’s first large methanol-fueled containership earlier this month. WindGD reports the new engine will be installed on the fourth ship of a new class with the other three ships’ engines being converted after the first methanol engine is commissioned.

WinGD reports it has 56 orders for X-DF-M engines on order across bore sizes ranging from 52 to 92, X-Engines. The addition of methanol capability to WinGD’s engine line-up further extends the decarbonization options available to deep-sea ship operators, which include the long-established X-DF LNG-fueled engine platform and a new ammonia-fueled X-DF-A platform which is currently in the testing phase.

The company was acquired in 2016 by China State Shipbuilding Corporation (CSSC). It continues to be one of the world’s leading engine manufacturers.
 

 

The Royal Thai Navy had a collision with a foreign fishing vessel during an enforcement mission earlier this week, the service confirmed Wednesday. 

On Saturday, the Royal Thai Navy tracked and monitored a group of 10 foreign fishing vessels that were conducting illegal fishing operations in Thai waters, reportedly including pair trawling and light-lure squid fishing. Their operating pattern was to loiter along the southeastern edge of the Thai maritime boundary, next to Cambodia. The fishing vessels would cross over during the night before heading back over the line at daybreak to evade enforcement. 

Thai maritime enforcement officials called for support from the Border Defence Command of the Thai military. The naval patrol ship T.264 and the Thai Navy warship HTMS Thepa got under way to assist, supported by aerial surveillance. They encountered the fleet early Tuesday and gave pursuit; the Thai warship managed to capture one foreign fishing vessel, but the others fled over the boundary line, despite orders to stop and warning shots. 

 

Courtesy Royal Thai Navy

During the pursuit, the detained fishing vessel made a hard turn and rammed the side of HTMS Thepa, causing minor damage. The four crewmembers were arrested, and the boat was towed into port at Khlong Yai. 

Rear Admiral Apha Chaphanon, Director of Thailand’s First Maritime Enforcement Command Centre, told local media that encroachment from illegal Vietnamese fishing vessels is a persistent problem along the Gulf of Thailand maritime boundary. 
 

 

In a move that goes against the global trend to stop live export, Argentina announced that it is repealing a ban that has been in place since 1973. The Agriculture, Livestock and Fisheries Secretariat of the Ministry of Economy cited it as a move to support free trade and to grow Argentina’s export industry and role in world trade.

Javier Gerardo Milei who became president of Argentina in 2023 has been seeking to grow the country’s role in global trade. The country, which is already one of the leaders in the global export of frozen and refrigerated meat, said the move will allow for greater competition within the livestock and meat sector, greater market freedom, and provide a significant source of foreign currency. 

The ministry called the ban outdated and not reflecting the current focus on free development. It declared that there were no reasons to maintain the restriction while asserting that developing the live export trade would encourage the improvement of livestock breeds and add prestige to national production. It said the repeal was in keeping with a government policy to promote “an economic system based on free decisions, adopted in an area of free competition, with respect for private property and the constitutional principles of free circulation of goods, services, and labor.”

The move is likely to face strong opposition from global animal rights groups which have increased pressure on the trade and governments around the world. They argue it is inhumane treatment of the animals and unnecessary cruelty. After years of pressure, New Zealand banned live export in 2023 followed by moves in Great Britain. Australia has limited its trade and is scheduled to end the export of sheep in 2028.

Animal rights groups have also been successful in demanding changes to the vessels used for live export after documenting conditions aboard. Combined with the bans, the shipping industry is in decline. In January 2025, Wellard, which had been involved in live export for 46 years and once was described as Australia’s largest live export business, announced the sale of its last vessel and an end to live exports.

Despite the pressure, the trade however has persisted. Experts report continuing demand from countries including Turkey, Iraq, Lebanon, Egypt, Jordan, Argentina, Peru, and Colombia. Argentina’s neighboring country Brazil has been conducting live export since 2010 with reports saying around 2.6 million live cattle were shipped. Advocates however are also pressing Brazil to end its live exports.

For Argentina, live export is seen as a new opportunity to expand on its record levels of exports of frozen, refrigerated, and processed beef. The Ministry reported today, February 26, that Argentina increased beef exports by 10 percent in 2024 reaching a total of 935,261 tons. It was the highest level since a record reached in 1924 of 918 thousand tons. The main destinations for Argentina’s beef in 2024 were the United States, as well as China, Mexico, Canada, and Malaysia. In total, Argentina ships to 53 international markets, which was up by 11 in 2024.

The Ministry says Argentina's beef exports reflect the combination of quality, market diversification, and the ability to adapt to international demands. They report the meat sector is emerging as a pillar of the country’s economic growth.
 

 

In response to the growing challenges of illicit trade and supply chain security, a new industry alliance is being launched to drive the adoption of cutting-edge smart container technology. Known as the Smart Container Alliance, the group reports its goal is to unite industry leaders in a collective effort to enhance cargo traceability, fortify maritime trade, and support global enforcement agencies in the fight against criminal networks.

Announcing the formal launch of the initiative they pointed to geopolitical instability and climate-related disruptions which they said are posing increasing risks to global trade. Cargo theft, smuggling, and drug cartels have become an increasing focus of the authorities around the globe. As a result, the Alliance says shipping companies must ensure the highest levels of security and efficiency. 

The Smart Container Alliance is dedicated to advancing industry standards, advocating for policy change, and fostering collaboration between technology providers, shipowners, customs authorities, and international regulatory bodies, including the European Union and the World Customs Organization. The launch of the Alliance aligns with the broader industry commitment that calls for increased investment in customs operations, digital transformation, and enhanced public-private partnerships to address the growing complexity of global trade.

“Smart Cargo and Container Telematics are the foundation for the 21st Century Supply Chain with revolutionary new solutions for our society, authorities, governments, and businesses to structurally reduce illicit trade, cargo contamination, cargo waste, theft and supply chain carbon footprint while simultaneously enhance product authentication, on-time delivery commitments, asset productivity and cargo integrity and quality,” said Charles Vincent, CEO of ARVIEM, a technology company focusing on real-time end-to-end cargo monitoring services, and one of the founders of the Alliance.

According to the group, over the past four years, smart container technologies have played a crucial role in enabling customs authorities and shipping companies to detect and intercept illicit goods, leading to multiple successful drug seizures. The Alliance will leverage this experience to push for greater adoption and regulatory support.

The launch of the Smart Container Alliance comes at a pivotal moment, coinciding with the most ambitious reform of the EU Customs Union since its inception in 1968. Smart containers are set to play a key role in the shift towards a data-driven approach to customs checks, reinforcing security measures across European ports and beyond.

The Alliance will advocate for the economic and technological benefits of smart container solutions, championing concrete use cases that demonstrate their transformative potential. With its headquarters in Brussels, it will engage with policymakers, industry leaders, and enforcement agencies to support a harmonized approach to trade security. A key focus will be aligning efforts with the European Port Alliance to counter criminal infiltration and reinforce supply chain integrity.

Arviem, Globe Tracker, ORBCOMM, Hoopo, Traxens, and Nexxiot are the founding members of the Smart Container Alliance. The group is seeking other stakeholders to join as it looks to build the focus on technologies and the role it can play in the supply chain.
 

In what is being called a milestone for the emergence of alternative fuels for the maritime sector, the first bunkering of certified bio-LNG was completed off Norway. The emergence of the fuel is a critical step toward meeting the requirements of the FuelEU Maritime regulations and demonstrates a pathway for the industry with alternative fuels.

The bunkering was a partnership between STX Group and Molgas which collaborated to source, liquify, and deliver the certified bio-LNG. It was the first time that Molgas delivered mass balanced bio-LNG bunker to a maritime customer in Norway.

The fuel was delivered to Furetank, a Swedish tanker shipping company that operates 40 vessels in European waters. A total of 200 tonnes of bio-LNG was loaded to the Fure Viken (17,942 dwt) while the vessel was anchored outside Mongstad, Norway. The tanker, which is 492 feet (150 meters) in length was delivered in 2024 as part of a program to modernize Furetank’s fleet. The first of the vessels was introduced in 2018 and the company highlights with the last delivery scheduled for 2027, it will have renewed its entire fleet. The vessels are dual-fuel to use LNG or gasoil, equipped for shore power, and are designed with a battery hybrid solution and several innovative features that reduce fuel and energy consumption.

“We see a growing demand and interest in Bio-LNG, as it is one of the few renewable fuel solutions currently available in shipping. For this operation, we collaborated to prove a mass-balanced biomethane delivery and certify the entire supply chain. This new option strengthens the competitiveness of biomethane as part of the green transition,” said Gunnar Helmen, Director Marine at Molgas Nordics.

Bio-LNG is a mass-balanced product where biomethane of certified origins is purchased and injected into the gas grid. A corresponding amount of gas is withdrawn from the grid and liquefied into maritime fuel.

Environmental commodity trader STX Group said it sees this transaction as one of the first signs of a new fuel market being born.

Bio-LNG has been emerging in the past few years as an option for shipping companies. Trade group SEA-LNG reported in a 2023 market analysis that annual production of biomethane, from which bio-LNG is produced, was around 30 million tonnes or around 10 percent of shipping’s total annual energy demand. It is growing in availability at ports including Rotterdam and in Asia and in 2024, Hapag-Lloyd working with Titan Clean Fuels, reported one of the largest bunkering operations to date. Hapag-Lloyd’s Brussels Express loaded 2,200 tonnes of the alternative fuel at the Port of Rotterdam.

The companies called bio-LNG an “efficient answer” to FuelEU Maritime, noting the regulation rewards those who blend in biofuels and penalizes those who do not blend. They also noted that the new regulation makes no distinction between mass-balanced and off-grid produced biomethane. The companies assert that this opens up a new path for shipping in the transition to renewable energy, surpassing some of the hurdles of lack in biomethane supply and delivery infrastructure.

One of the challenges remains the lack of investment to achieve a critical supply level for the maritime industry. The companies note that their goal is for this demonstration to demonstrate the opportunities while they are also calling for public policy to further support the development of the production capabilities for renewable fuels.

Decades after other industries embraced digital transformation, shipping still relies on email chains, phone calls, and gut feel. But AI and data-driven decision-making are starting to challenge the status quo, forcing companies to rethink how they operate. 

Some shipowners and operators see AI as a buzzword. Others see it as an existential threat. The reality? AI is neither magic nor a job killer. It’s a tool that can finally bring logic, transparency, and efficiency to an industry that’s been built on relationships and intuition rather than data. 

The problem: decisions based on instinct, not intelligence 

Shipping has never been a data-led industry. Chartering managers, bunker buyers, and fleet operators make multi-million dollar decisions daily, often without real-time data or historical benchmarking. 

A bunker procurement manager, for example, might buy fuel based on a few WhatsApp quotes, comparing offers in their head rather than through a structured system. An operator might adjust a ship’s speed based on personal experience rather than predictive analytics. A charterer might pick a fixture based on the strength of their broker relationship rather than hard market data. 

These aren’t necessarily bad decisions, these are the best decisions people can make with the information they have. But that’s exactly the problem. Too many critical decisions are still being made with incomplete, outdated, or biased information. 

AI is already proving itself 

AI isn’t some futuristic concept, it’s already proving its value in shipping. Some of the most forward-thinking companies are using AI-driven routing models to cut fuel consumption, optimize speed, and avoid congestion. Others are applying machine learning to detect vessel performance anomalies before they turn into costly breakdowns. 

Take predictive maintenance. By analyzing engine performance and historical failure patterns, AI can tell shipowners when a part is likely to fail, long before it becomes a problem. This isn’t hypothetical. Maersk, for example, has been using AI to reduce unplanned maintenance and improve vessel uptime. 

Another clear use case is AI in chartering. Today, a human broker or charterer has access to a fraction of the data that AI can process in seconds. AI tools can scan thousands of past fixtures, market conditions, and vessel positions, flagging optimal deals that might have been missed in a manual search.

Why adoption is slow 

If AI is so effective, why isn’t every shipping company using it? The biggest barrier isn’t the technology, it’s the mindset. Many decision-makers are skeptical, seeing AI as a black box rather than a reliable tool. Others don’t want to change a system that has worked for them for years. 

Then there’s the data problem. AI is only as good as the data it’s trained on, and too many shipping companies still rely on fragmented, inconsistent, or outright inaccurate data. A 2022 survey by Splash247 found that 68% of shipping executives rated their internal data management as ‘poor’ or ‘very poor’. Without clean, structured data, AI can’t deliver reliable insights. 

And let’s be honest, there’s also resistance because AI threatens the way things have always been done. A charterer who’s built their career on instinct doesn’t want to be told that a machine can do their job better. A bunker trader who thrives on personal relationships doesn’t want full price transparency to erode their margins. 

The companies that embrace AI will win 

Despite the resistance, AI adoption isn’t a question of if, it’s a question of when. The companies that embrace AI now will gain a competitive edge, reducing costs, improving efficiency, and making smarter decisions. 

The best examples of AI adoption in shipping aren’t replacing humans—they’re empowering them. AI doesn’t remove the need for experienced operators or traders, but it gives them better tools to make better decisions. The smartest companies aren’t asking, ‘Will AI replace my team?’ They’re asking, ‘How can my team use AI to be 10 times more effective?’ 

As regulations tighten, margins shrink, and competition increases, the companies that embrace data-driven decision-making will outperform those that rely on outdated methods. AI isn’t here to replace people, it’s here to replace inefficiency. The only question is whether the industry is ready to accept it. 

Platforms like XMAR are already proving that AI and data-driven decision-making can transform bunker buying. By providing full price transparency, structured negotiations, and real-time insights, XMAR is helping shipping companies move away from outdated processes and toward smarter, more strategic fuel purchasing.

This article is sponsored by XMAR. For more information visit the company online.
 

 

After the fatal allision between a small vessel and the giant crane ship Saipem 7000 last year, the Netherlands' safety board has called on Rotterdam's pilots and on a prominent ship repair yard to carry out better planning before navigational evolutions in tight harbor basins. 

On February 21, 2024, the Saipem 7000 collided with the jackup drilling rig Noble Regina Allen while the crane vessel was docking at a well-known repair yard in the Botlek, a densely-built-up inner harbor in Rotterdam. Winds were 13 knots, in excess of the standard docking procedure for the site, but the pilot had done this evolution in stronger winds and did not believe that the conditions would be problematic. 

Because of the tight quarters and the presence of the rig, there was no tug positioned on the Saipem 7000's port quarter. Despite the power of the crane ship's DP-3 thrusters and the assistance of six tugs, the wind was enough to push the vessel off course. Its stern swung to port as it was trying to enter its berth, and its port quarter struck the rig. 

Courtesy Dutch Safety Board

A welder was working on scaffolding on the exterior of the drilling rig. When the Saipem 7000 made contact, he was trapped between the vessel and the rig, and he fell into the water. Multiple dive searches were conducted, but his body was not recovered for another three weeks. 

The board called for the Dutch pilots' association to systematically assess and improve procedures for navigating in the inner harbor. 

"Pilots must prepare themselves well for the safe execution of complex activities such as docking a crane vessel. For example, they must continuously test assumptions among all those involved and speak out about possible risks. The Regional Pilotage Corporation Rotterdam-Rijnmond is responsible for ensuring that pilots indeed prepare in this way," said Dutch Safety Board member Erica Bakkum. 

The board also called on the shipyard to lead a joint risk assessment process for complex evolutions, incorporating input from all parties involved. "A more thorough approach is needed for complex operations that are carried out simultaneously. The shipyard must ensure that risks are clearly understood and managed," the board concluded. 

Saipem 7000 is one of the world's largest crane ships, and can complete full installations of offshore developments, including topside placement and pipelay. It can lift up to 14,000 tonnes at a time with twin cranes, and it is DP3 enabled for propulsion and anchorless stationkeeping. 

Louis Dreyfus Amateurs, which today is focused on offshore services, cargo and port operations, and logistics, is set to be acquired by Paris-based private equity firm InfraVia. The firm had been seeking capital from investors to fuel its growth. 

According to the announcement, the Louis-Dreyfus family which is the shareholders of the company has entered into exclusive negotiations for InfraVia to acquire a majority stake in LDA. A final agreement is still pending and requires consultation with representatives of the company’s 1,800 employees and regulatory approval.

The proposed terms call for InfraVia to acquire an 80 percent stake in Louis Dreyfus Amateurs. The family would retain a 20 percent ownership position in the group and Edouard Louis-Dreyfus would remain president of the group. Founded in 2008, InfraVia Capital Partners reports it manages €16 billion of capital and specializes in real assets. Including infrastructure, critical metals, real estate, and technology investments.

“This transaction would allow LDA to invest a billion euros over the next few years, enabling the group to more than double the size of its fleet and accelerate its development in technological innovation, energy transition, and the design of tomorrow's navigation modes and maritime services,” the companies said reporting the negotiations.

LDA traces its origins back 170 years to 1890 and the launch of a small fleet of grain feeders navigating on the Sea of Azov and the Black Sea under the Russian flag. After the First World War and the Russian Revolution, the company transitioned in the 1920s to a fleet of ocean-going cargo ships and would remain active in bulkers while more recently adding RoRo, offshore, and port logistics. The last of the cargo ships were sold in the early 2020s.

Today, LDA specializes in three segments, transportation and logistics of industrial equipment, mainly through dedicated RoRo vessels, maintenance of offshore wind farms, and installation and maintenance of submarine telecom and power cables. With a worldwide presence, LDA manages a fleet of 23 vessels. Building on a long-term partnership with Airbus the company recently ordered a new generation of wind-assisted propulsion RoRos and is developing new offshore service vessels.

With InfraVia as a shareholder, LDA says it would accelerate its ambitions to become a leading maritime infrastructure. InfraVia it highlights has the necessary expertise to support its growth ambitions and accelerate the group's digitalization and energy transition.
 
The transaction is expected to be completed in the first half of 2025.
 

 

A tidal wave of new regulations is set to hit the global maritime sector this year, representing fresh, highly-complex compliance challenges. From environmental performance to evolving security and safety standards, the shipping industry faces a raft of new rules intended to ensure safe operations and reduce greenhouse gas (GHG) emissions.

In this article, Stamatis Fradelos, Vice President of Regulatory Affairs at the American Bureau of Shipping, explains what the flood of new regulations really means, and how operators can navigate through the period of change.

A global outlook for regulatory updates

At a global level, the International Maritime Organization (IMO) has been publishing important new regulations for the past five years, with others under consultation, but many critical updates have only just or are expected to become applicable.

They have wide ranging implications that can be broken down into two key areas: first, environmental protection. This relates to international efforts to improve ship design, operational efficiency and reduce the world’s reliance on fossil fuels; therefore, lowering the sector’s environmental impact.

Second, a focus on maritime safety, specifically related to the use of alternative fuels, as well as the importance of robust cybersecurity protocols.

Cyber threats: navigating troubled waters

Cyber protection remains of critical importance for the maritime sector. The recent digitalisation of ships, combined with growing geopolitical tensions, have created the perfect storm.

There were reports of a spike in incidents in 2024 but the true scale of the impact today is yet to be revealed. Official statistics identified at least 64 cyber incidents targeting maritime organizations in 2023, according to the Netherlands’ NHL Stenden University of Applied Sciences. A decade earlier, there were three, and zero in 2003.

According to a 2023 report, on average a cyberattack within the maritime industry costs the target organization approximately USD$550,000 – up from USD$182,000 in 2022. Demands for ransom have increased by more than 350%, with the average ransom payment at USD$3.2m in 2023 – up from USD$3.1m the previous year.

In response to intensifying concerns over safety at sea in a digital world, IMO has published several standards in recent years with the aim of enhancing ship safety standards. These include a focus on improving crew training, implementing new technologies, and ensuring that international regulations keep pace with innovations such as autonomous shipping.

Working towards carbon-free journeys

In July 2023 the IMO adopted the "2023 Revised IMO Strategy on Reduction of GHG Emissions from Ships," which included targets to tackle harmful emissions. The targets are broken down into four key areas:

1. To lower the carbon intensity of new ships, by strengthening their energy efficiency design requirements.
2. To reduce CO2 emissions per transport work, as an average across international shipping, by at least 40% by 2030, compared to 2008.
3. Uptake of zero or near-zero GHG emission technologies, fuels and/or energy sources to represent at least 5%, striving for 10%, of the energy used by international shipping by 2030.
4. Reduce GHG emissions from international shipping compared to 2008:

• By 20%, striving for 30% by 2030
• By 70%, striving for 80% by 2040
• To net zero by or around 2050.

Short to mid-term measures for environmental protection

The IMO’s Marine Environmental Protection Committee (MEPC) is expected to finalize and approve a series of short to mid-term measures that will underpin these ambitious environmental targets by April 2025, with an anticipated roll-out by 2027.

One element will likely focus on the measurement of the ship’s GHG intensity on a Well-to-Wake (WtW) basis per energy consumed on board — the GHG Fuel Standard (GFS) - combined with a phased reduction of the GHG Fuel Intensity (GFI) over time. This equation will relate to a possible correction factor for ships serving ports of developing countries.

Furthermore, there are plans to attach a price to carbon dioxide (CO2) emissions to incentivize shipowners and operators to reduce emissions by selecting cleaner fuels such as synthetic fuels derived from renewable sources, as well as adopting energy-efficient technologies.

We can also expect an increased governance of the fund under the IMO’s remit. This emphasizes the need for transparency, accountability and good governance of revenue management, and a balanced geographical representativeness of its membership.

Key priorities for the United States

1) Cybersecurity

In-line with the international agenda to safeguard shipping and port companies from bad actors online, The Vessel Cyber Risk Management Work Instruction (CVC-WI-027), which was published in October 2020 and revised in October 2023, provides guidance on the United States Coast Guard's (USCG) approach to assessing cyber risk in commercial vessels.

It outlines expectations for U.S.-flagged vessels and companies to integrate cyber risk management into their Safety Management Systems (SMS). Furthermore, foreign-flagged vessels calling at U.S. ports must have adequately addressed cyber risk management in their SMS.

Additionally, an executive order signed in February 2024 mandates that cyber threats be addressed through updates to Part 6 of Title 33 of the Code of Federal Regulations (CFR), which includes cybersecurity protocol. The executive order defines a "cyber incident" and establishes reporting requirements for them. This reporting requirement also applies to foreign-flagged vessels operating in U.S. waters and ports.

Furthermore, the USCG has taken steps to update its maritime security regulations. This proposed rule would introduce several requirements for owners or operators of U.S.-flagged vessels, facilities and Outer Continental Shelf facilities. It would mandate the implementation of cybersecurity measures aimed at identifying risks, detecting threats and vulnerabilities, protecting critical systems, and facilitating recovery from cyber incidents.

2) Increased environmental protection at sea

October 2024 saw the U.S. Environmental Protection Agency (EPA) publish its final rule under the Vessel Incidental Discharge Act (VIDA). It established federal performance standards for marine pollution control devices applicable to discharges into U.S. waters and the contiguous zone.

The USCG is required to develop corresponding implementation, compliance and enforcement regulations within two years. These regulations may include requirements for the design, construction, testing, approval, installation and use of devices necessary to meet the EPA standards.

The EPA’s rule took effect on 8 November 2024; however, the federal standards will only become enforceable once the USCG finalizes its regulations. Until then, existing requirements from the 2013 Vessel General Permit (VGP) and the USCG’s requirements under section 1101 of the Nonindigenous Aquatic Nuisance Prevention and Control Act (NANPCA) will remain in effect.

Two types of standards have been established under VIDA. The general standards are organized into these three categories:

• General operation and maintenance
• Biofouling management
• Oil management

The specific standards address discharges of 20 different pieces of equipment and systems. The new requirements are at least as stringent as those in the VGP. We can expect these to transition into regulation that reflect national technology-based standards of performance, improve clarity, enhance enforceability and implementation, and incorporate new information and technology.

California Air Resource Board (CARB) 2020 At-Berth Regulation

Vessels visiting California must now report each visit within 30 days of departure and meet opacity requirements. Emissions controls compliance will also take effect. Two years ago, container and refrigerated cargo vessels, as well as passenger cruise vessels were required to comply with these controls, while roll-on/roll-off vessels and tanker vessels that visit the Ports of Los Angeles or Long Beach are now following the requirements as of January 2025, and finally, all remaining tanker vessels must comply by January 2027.

As well as communicating with the regulated terminal at least seven days prior to arrival, the vessels must comply by reducing emissions while at the terminal. This could mean connecting to shore power, employing a CARB-approved Emission Control Strategy (CAECS) or an approved innovative concept within two hours of the vessel arriving at the berth, continuing on until one hour before the pilot boards the vessel for departure.

Building Awareness to Manage Uncertainty

Uncertainty remains as the IMO, and country-specific regulators, work towards finalizing these safety and environmental policies. Maritime and shipping organizations should take a proactive approach to prepare for compliance by building their awareness of new regulations on the horizon. Awareness will help them to steer a smooth course to compliance in the long-term. The ABS Regulatory Trends and Impact report which provides updated guidance to help navigate the regulatory landscape can be downloaded here.

Stamatis Fradelos is Vice President of Regulatory Affairs at the American Bureau of Shipping.

 

The membership of the International Longshoremen’s’ Association officially ratified the new 6-year contract on Tuesday, February 25, bringing to close one of the most contentious contract negotiations in decades. The ILA is calling the new contract the “gold standard” for dockworker unions globally while saying with the ratification there would be “labor peace” and that the ILA would be working in partnership with USMX to help all ILA ports grow and flourish.

“It was a tough contract to negotiate,” said ILA President Harold Daggett who served as the union’s chief negotiator. Among the terms the union is highlighting is a 62 percent wage increase, accelerated wage raises for new ILA workers, container royalty funds for the ILA, and improved benefits including healthcare for members. Daggett in a message to members said the new contract was worth about $35 billion, nearly twice the previous agreement.

The terms are retroactive to October 1, 2024, when the prior contract expired. Wage increases had been deferred after terms were reached in October until the full contract was completed. The new contract covers approximately 35 ports from Maine to Florida and along the Gulf Coast. It runs till September 30, 2030.

Daggett is publicly declaring a key win saying it is the greatest contract in ILA history. He reports it provides “full protections against automation,” without providing details on the contract terms. The ILA had firmly declared it would not accept automation or semi-automation for any port operations.

In December 2024, then President-elect Donald Trump met with the union leaders. He also issued a strong statement against port automation. 

The Associated Press and Bloomberg, however, are reporting that a compromise was found allowing operators to implement technology as long as it does not impact jobs. Mathew Leech, CEO of Ports America, told Bloomberg that automation was separated from other efficiency-enhancing technology. AP reports there is “more leeway to introduce modernizing technology.”

The previous contract required technology proposals to be submitted to a committee that included union representatives for review. Ports such as the Port of New York New Jersey highlighted there was no automation in use at its terminals, a point that operators said was both a handicap and hindering growth and efficiency.

Bloomberg reports the operators also won concessions on issues related to a lack of labor reliability and absenteeism. Daggett in his message to members said that no-shows had to stop and said reliability was critical in their efforts to oppose automation.

The board of the ILA and the members of USMX which represents the terminal operators and shipping companies had previously approved the new contract. The ILA reports there will be a formal signing ceremony on March 11 for the new 6-year agreement.
 

 

If implemented, the Trump administration's proposed million-dollar port fees for Chinese-built ships would increase costs for American shippers, according to analysts for Dutch banking group ING. 

The White House's Office of the U.S. Trade Representative has proposed unprecedented access fees for Chinese-operated and Chinese-built ships, ranging up to $1.5 million per port call. The objective is to counter the support that China has provided to its yards and shipowners for decades; China now leads the world in shipbuilding and (by some measures) shipowning.  

In a notice earlier this week, the USTR announced that it has determined that "China’s targeting of the maritime, logistics, and shipbuilding sectors for dominance is unreasonable and burdens or restricts U.S. commerce." It laid out a series of possible million-dollar port call fees for Chinese vessel operators, other operators of Chinese-built ships, and operators with newbuilds on order at Chinese yards (China's orderbook accounts for more than half of all new tonnage). USTR is taking public comments on the proposal until late March, and the results will be forwarded to President Donald Trump for a decision. 

Chinese-built tonnage accounts for 17 percent of all boxship port calls in the United States, and more on specific trade lanes. According to ING, the fees - if imposed as advertised - would exclude state-owned Chinese carrier COSCO from U.S. ports. All other large carriers are based in Europe or Asia, and would be subject to the proposal's "Chinese-built" port call fees. As China holds a particular dominance in the construction of container ships - accounting for 60 percent of the boxship orderbook - the fees will likely rise. As the fee structure is assessed based on the composition of each operator's entire global fleet, simply rerouting Chinese-built ships onto non-U.S. rotations would not be enough to evade the extra cost. "These additional expenses would likely be passed on from the carrier to shippers and, ultimately, to importers and exporters," ING's analysts cautioned.         

The USTR also proposed an ambitious quota requirement for up to 15 percent of U.S. exports to be shipped aboard U.S.-flagged ships by 2032 - including five percent aboard U.S.-built ships. ING expressed skepticism that U.S. yards have the capacity or the workforce resources to build large tonnage at that scale on a seven-year timeframe. 

Shipping interests are famously adept at circumventing control measures, and one loophole appears to be available. Canada has ports that are not in the United States, and these would be exempt from any U.S. port fees. Many shippers already send large quantities of cargo from Asia to Prince Rupert and Vancouver, B.C., then have it moved into the U.S. heartland by intermodal rail. The fee would prompt U.S. shippers to shift more cargo to trans-Canadian routes, noted Flexport CEO Ryan Petersen in a social media message. 

 

Fighting is continuing for a fourth day in Iran’s southeastern port city of Chabahar.

Chabahar is the principal port in Iran’s Sistan-Baluchistan province, which borders Pakistan’s Baluchistan. On both sides of the border, Baluchi separatists have mounted attacks on central government security forces, but attacks have intensified on the Iranian side of the border. Over the past six months, under the pretext of carrying out training exercises, the Islamic Revolutionary Guard Corps (IRGC) has mounted large-scale sweep operations across Sistan Baluchistan, and has suffered a steady flow of casualties.

The fighting in Chabahar broke out on February 22, when Jaish Al Adl separatists forced the evacuation of a government building responsible for the administration of rural affairs, then blew it up. Jaish Al Adl also attacked the Chabahar office of the Islamic Revolution Housing Foundation. A protracted gun battle was taking place in central Chabahar on the morning of February 25, widely shared on social media, as IRGC security forces attempted to surround a Jaish Al Adl position.

Iranian military and security forces raided a house in Chabahar, Sistan and Baluchestan, using RPGs and heavy gunfire as clashes continue.
Halvash that covers the event in the southeastern province reports the area is fully surrounded, but details on casualties or the reason for… pic.twitter.com/cWykemERkR

— Iran International English (@IranIntl_En) February 25, 2025

For external observers of Iran, it is difficult to gauge when local fighting will spread to other restive areas and spark a wider insurrection. The Iranian Crown Prince in exile, interviewed on February 25, believes Iran is already “in a revolutionary, or at the very least, a pre-revolutionary fervor," he said. “It’s escalating every day.”

But more pertinently, the IRGC – as an acute internal observer of the scene –- evidently also believes this to be the case, mounting large-scale internal security exercises, focused on border areas with large minority populations. These ‘exercises’ are a mix of mobilization rehearsals, intimidatory shows of force and an opportunity to launch pre-emptive strikes on what are thought to be forces opposed to the Islamic regime. Besides Sistan Baluchistan, these ‘exercises’ have also covered the Kermanshah area of western Iran, the traditionally restive Arabic-speaking Khuzestan across the border from Basra, and Tehran itself. The IRGC’s primary role is not defense of the country, but protection of the Islamic Revolution and its leaders, and the areas where the IRGC has exercised are the first places to look for any further uprisings sparked by the activity in Chabahar.

A particular area of concern for the IRGC appears to be the southern coastline abutting the Gulf of Oman, which has seen increased levels of both Iranian regular and IRGC naval activity.  Rear Admiral Shahram Irani, the regular Iranian Navy commander, told Press TV recently two of his five deployed flotillas were covering this southern flank from the Indian Ocean. 

The unprecedented levels of IRGC activity have been accompanied by a series of statements from the IRGC’s senior leadership.  These statements reflect concern that the country may face further attacks from Israel, but also from the United States, aimed at neutralizing Iran’s covert nuclear weapons development program.  Such statements have threatened a True Promise-3 operation, a larger scale ballistic missile and drone attack than Operation True Promise-2 launched against Israel on October 1, 2024. The Iranians have also brandished their ability to mount drone attacks from ships, and have been resupplying their Houthis allies. On the political front, the Iranian leadership has intensified its courting of allies and sympathizers, seeking to enmesh them in its defense and security arrangements.

Deep ocean search company Ocean Infinity has rebooted the hunt for Flight MH370, a Boeing 777 that disappeared over the Indian Ocean 11 years ago. 

In the early hours of March 8, 2014, Malaysia Airlines Flight MH370 took off from Kuala Lumpur, headed north for Beijing. The plane then reversed course and made for the Indian Ocean, and at about 0214, it passed out of radar range as it headed west over the Strait of Malacca. MH370 never arrived at its destination, and all passengers and crew were presumed lost at sea. Pieces of the aircraft floated ashore in Tanzania, Reunion and South Africa, confirming that it had crashed, but a three-year seabed search failed to turn up any sign of the wreckage on the bottom.

Ocean Infinity has agreed to undertake a new search on unusual terms: a reported "no-find, no-fee" arrangement. If it finds the wreck site, it will receive $70 million; the details of the contract are still being finalized, even though deployment and operations have already begun, Malaysian transport minister Anthony Loke told reporters on Tuesday. 

It is a high-profile test for Ocean Infinity's new low-crew survey techniques. The company has deployed the Armada 7806, a Vard-built compact survey ship designed to perform ROV and AUV search operations with less overhead and lower fuel consumption than a conventional platform. The 78-meter hulls have two moonpools for underwater vehicle deployment, and can operate ROV missions with as little as 16 crewmembers on board. 

AIS data provided by Pole Star suggests that the Armada 7806 finished her transit and arrived on station in the Indian Ocean on Monday. As of Tuesday, she was holding position and broadcasting her status as restricted in ability to maneuver, indicating AUV or ROV survey operations. 
 

 

The wreck of a Dutch submarine that rescued survivors after an Australian minesweeper was sunk by Japanese warships during World War II has been discovered at a famous ship graveyard off the coast of the Australian city of Fremantle. About eight decades after it went missing, the wreck of HNLMS K XI has been identified and is said to be lying in 40 meters of water off Rottnest Island, outside of the well-known Rottnest ship graveyard.

The wreck was discovered by a technical diving group called Wrecksploration on January 1. The Western Australian Museum (WAM) worked in conjunction with the Dutch Cultural Heritage Agency (RCE) to identify the boat using the group's 3D model of the site. K XI is said to be one of the most significant vessels to have been discarded in or near the graveyard, which is the final resting place for about 50 shipwrecks.

K XI was built in Fijenoord, Rotterdam between 1922 and 1924 for the Royal Netherlands Navy (RNN) and was deployed to patrol waters in the colonial Netherlands East Indies (now Indonesia). Commissioned in 1925, the submarine was the first of three boats in the K XI class and one of 25 boats built for the submarine division of the RNN. At least 15 boats were deployed in the Netherlands East Indies.

On March 9, 1942, K XI's crew rescued 13 survivors from the 151 crew of the Royal Australian Navy’s minesweeping and convoy escort sloop HMAS Yarra (II) that had been sunk by Japanese warships. The 13 men had survived in rough waters for five days floating on life rafts and clinging to life through occasional spoonfuls of water and a few biscuits.

For more than three decades, WA Museum has been investigating the Rottnest graveyard, where it believed K XI was resting. When divers discovered the wreck outside of the main dumping site, RCE agreed to finance the photogrammetry work, which was developed into a 3D model and submitted to the WA Museum for identification.

“Over the decades, the use of archival sources, local knowledge, and remote sensing surveys has allowed the Museum to identify a number of significant sites in the graveyard. In this project, we compared archival records with the 3D model created by Wrecksploration to confirm that the wreck was the K XI,” said Corioli Souter, Head of Maritime Heritage at the WA Museum.

During WWII, Fremantle Harbor was the largest submarine base in the Southern Hemisphere and was the second-most important Allied submarine base in the Pacific Theatre after Pearl Harbor, with U.S, British and Dutch submarines operating from Fremantle. A total of 11 Dutch submarines operated out of Fremantle during the time period.

Archeologists say that the discovery of the wreck of K XI provides an insight into the behaviors and practices of ship dumping off Fremantle in the immediate post-WWII period. Apart from K XI, six miniature Welman two-man submarines, eight submersible canoes, four aircraft, and other military equipment are believed to have been dumped at the graveyard.

The wreck of K XI is protected by Australia’s laws as an important heritage site, meaning that divers can visit but cannot damage, disturb, or remove any part.

A Russian research vessel has gone down because of heavy icing conditions at the port of Novorossiysk, Russia, according to dissident media outlet Crimean Wind. 

The small research vessel Ashamba, operated by the Shirshov Institute of Oceanology, was moored at a marina in Novorossiysk last weekend during a severe winter storm. The crew could not counter the ice buildup fast enough to avoid a capsizing, and the vessel gradually listed to port and sank. 

The risk of pollution is reportedly limited, as the vessel had a small quantity of diesel on board. The owner is deploying booms to contain any pollution, and is making plans to raise the wreck. 

The Transport Prosecutor's Office for Novorossiysk has launched an investigation into the casualty, and is looking at whether there may have been any breaches of maritime regulations. Separately, the Investigative Committee of Russia's transport division has started the process of beginning its own investigation, according to Russian outlet PortNews. 

Damaged freighter still awaiting port of refuge

According to Ukrainian sources, the aging freighter Pavel Grabovskiy remains stuck near the port of Azov because local authorities refuse to provide a port of refuge. 

On February 16, the 46-year-old Grabovskiy began taking on water through a hole in the hull while under way in the Sea of Azov. Tugboats were deployed to provide it with assistance, and Russian authorities assert that the situation is stable. 

Petro Andryushchenko, head of Ukraine's Center for the Study of Occupation, told Channel 24 that the freighter is still stuck at sea after more than a week. 

"Apparently, the situation is much more serious, but they are trying not to disclose it, given the recent tanker accidents in the Black Sea. As of yesterday, the ship was in a roadstead near the port of Azov. Its repair in the open sea is much more difficult than in the port, but it was not allowed to dock," said Andryuschenko.

As the industry prepares for the commercial introduction of the first ammonia-fueled marine engines, efforts are continuing to develop the infrastructure that will be needed to support ammonia at scale as a fuel for the maritime industry. Japan’s NYK Group (Nippon Yusen Kabushiki Kaisha) working in partnership with Seatrium and its design company LMG Marine, is reporting a groundbreaking step in advancing the sector.

The group’s design for an ammonia-fueled ammonia bunkering vessel has passed the next key milestone in its development. ClassNK reviewed the design engineering developed by LMG and issued the next Approval-in-Principle for the project. The partners report the design will now be submitted to the Maritime and Port Authority of Singapore for evaluation. Singapore hosted the first ammonia bunkering operations and certification program in early 2024 for the converted offshore support vessel developed by Fortescue. 

The AiP certification validated the ammonia-fueled ammonia bunkering vessel design’s compliance with stringent safety, technical, and environmental standards. LMG Marin provided design capabilities, leading to a Hazard Identification Study (HAZID) for design validation. The comprehensive HAZID conducted was instrumental in ensuring optimal safety, performance, and operational reliability. 

The partners report the vessel design incorporates the consortium's two key features to ensure safety and operational reliability. It uses ammonia fuel dual-fuel engines from IHI Power Systems and a bunkering boom by TB Global Technologies. The bunkering boom features a unique technology called the High Speed Ammonia Purging Emergency Release System (ERS), which enables a reliable and efficient disconnection between vessels in an emergency.

NYK is already at the forefront of ammonia-fueled shipping. In 2024, it completed the conversion of its pioneering LNG-fueled tugboat Sakigake into an ammonia-powered vessel. It completed one of the first ammonia bunkering operation which used truck-based delivery and the vessel is now demonstrating operations in Tokyo Bay.

The effort to develop an ammonia bunker vessel began several years ago. In September 2022, the project received its first AiP certification based on a 3D model.

NYK said the design for the bunker vessel is an essential contribution to developing the infrastructure needed for ammonia bunkering. The designs will be reviewed by the authorities in Singapore, which already is one of the world’s largest bunker ports, and seeks to be a hub for innovation.
 

The buyers' alliance established in 2023 to spur demand for decarbonization in shipping officially opened its second, larger tender for shipping services this time requiring the use of the e-fuel. It comes as the first contract which was awarded to Hapag-Lloyd for low-emission shipper services is set to kick off in 2025 and run into 2026.

The concept behind the initiative known as ZEMBA (Zero Emission Maritime Buyers Alliance) and facilitated by the Aspen Institute builds demand by aggregating the shipping needs of members ranging from Ikea and Nike to Levi Straus and Electrolux. Over forty major manufacturing and consumer brands are currently members of the alliance. The group launched its first tender in 2024 saying the goal was to accelerate commercial deployment of clean energy powered shipping. By aggregating demand, they are enabling economies of scale and building lead-edge demand to encourage the shipping and fuel industries to pursue their initiatives.

Under the first tender, well-known brands including Amazon, Patagonia, Bauhaus, New Balance, Nike, REI, and others agreed to purchase over one billion TEU miles on the route between Singapore and Rotterdam in 2025 and 2026. Hapag as the winner of the tender agreed to provide an independently certified and exclusive waste-based biomethane service.

The second tender launched today and accepting proposals through the spring of 2025 shifts to a focus on e-fuels. ZEMBA reported in October 2024 that a survey of the industry found sufficient predicted supply of both e-methanol and e-methanol-capable vessels in the container segment to support ZEMBA’s focus on e-fuel deployment. They noted however that many producers remained at the pre-FID stage, casting doubt on whether those projects would begin production on projected timelines and, related, if e-fuel-capable dual fuel vessels would actually run on e-fuels without spurring demand.

With the second tender, ZEMBA intends to aggregate approximately 86 billion tonne nautical miles of demand for the emissions abatement associated with e-fuel-powered shipping to be deployed starting in 2027. This equates to 1.5 million TEU transported across the Pacific by e-fuels, assuming a benchmark distance of Shanghai to Los Angeles and projects enabling companies to abate approximately 500,000 metric tonnes of greenhouse gas (GHG) emissions, subject to final commercial details.

“Getting e-fuel-powered shipping on the water for the first time through this collaborative forward procurement will be a huge technical and commercial innovation milestone for the sector,” said Ingrid Irigoyen, President and CEO of ZEMBA.  

A qualifying bid for ZEMBA’s tender will be a proposal from a containership carrier or consortium for e-fuel-powered shipping for three to five years, starting around 2027. All bids must demonstrate at least a 90 percent lifecycle emission reduction for the primary propulsion of the vessels compared to a high-emission fuel baseline. 

ZEMBA will select the best proposal(s), and after vetting and commercial negotiation, members will enter bilateral contracts with the winner(s). For this tender, ZEMBA is open to the potential of multiple winners. Results of the second tender are expected to be announced by the end of 2025.