Reports in Indian media suggest that on May 8, the Indian Navy may have launched an attack on Karachi's naval port as part of a broader retaliatory strike operation. The Indian and Pakistani governments have not confirmed the reports, and multiple Pakistani social media accounts deny that an attack occurred.

The possible naval strike follows Indian attacks on nine sites in Pakistani-controlled Kashmir early on May 7 - a response to the terrorist attack in Indian-controlled Kashmir on April 22, in which 26 tourists were killed. The conflict has seen a gradual widening of cross-border aerial attacks by both sides in recent days, with heavy use of drones and stand-off missiles. 

Briefing the media on the May 7 attacks across the Line of Control (the de facto boundary dividing Pakistani and Indian controlled Kashmir), Indian spokeswoman Wing Commander Vyomika Singh said that Operation Sindoor had been focused on hitting infrastructure associated with the Jaish-e-Mohammed and Lashkar-e-Taiba organizations, which India believes were responsible for mounting the terrorist attacks. 

She said that India had designed Operation Sindoor to be ‘focused, measured and non-escalatory in nature. No Pakistani military facilities have been targeted’. The attacks were also designed to deter further terrorist attacks, which India believes were imminent.

Following the initial Indian attacks, which were launched with stand-off weapons from aircraft that did not cross into Pakistani airspace, there were heavy small arms and artillery exchanges across the Line of Control between Indian and Pakistani-controlled areas of Kashmir. These clashes had killed an additional 19 Indian civilians by the close of May 7. 

Pakistani Prime Minister Shehbaz Sharif vowed decisive retaliation. Pakistani sources reported that in the attacks over the land border, five Indian aircraft had been shot down and an Indian brigade headquarters shelled; eight civilians had been killed in the Indian attacks. The Pakistani reporting gave no indication that clashes had spread from the Kashmir area, but described an attack on May 6 in central Pakistan by the Baloch Liberation Army that killed seven soldiers as being carried out by ‘Indian proxies’.

At sea, Indian P-8I Neptune aircraft from Indian Naval Air Squadron 316 based at Hansa in Goa have in recent days been covering Pakistani naval live firing exercises southwest of Karachi. Early on, the Indian Navy is likely to have deployed a forward submarine screen covering approaches to Karachi, using carrier-launched aircraft from INS Vikrant (R11) and INS Vikramaditya (R33) to restrict Pakistani maritime surveillance efforts. 

The main Indian naval bases on the west coast at Mumbai and Karwar are empty of ships, as seen in satellite imagery on May 6. The Pakistani Navy is likely to have deployed from its main bases in Karachi, Omarah and Gwadar, but ships are likely to be keeping sufficiently close to land so as to remain under Pakistani air cover.

Indian officials told network NDTV that the Indian Navy "conducted targeted operations in the Arabian Sea against Pakistan," but without specifying a strike on the naval base in Karachi. NASA's FIRMS satellite fire detection platform shows no recent heat signatures in Karachi's harbor area.

 

Top government officials from the Province of Ontario, Canada have recently expressed interest in developing a maritime port on James Bay, which extends southeast of Hudson Bay. While a port in such a location could be built to berth mega-size ships, there will be need for negotiation between Ontario and Canada’s Federal Government in order to proceed with developing the proposed port.

Introduction

Close to 50 percent of Canada’s population lives in the Province of Ontario, which is also home to Canada’s largest manufacturing sector. Several maritime ports located at Thunder Bay, Sault Ste. Marie, Windsor, Hamilton, Oshawa and Johnstown connect Ontario to the Atlantic Ocean and international ports. Changing summertime weather conditions in Canada’s Arctic region now allow ships to sail between the North Atlantic and North Pacific Oceans. At present, a deep-water port operates at Churchill at the southwest corner of Hudson Bay, originally developed to export Western Canadian agricultural produce to Europe.

The railway distance between Toronto and Churchill is almost equal to that between Toronto and Vancouver. A comparatively short distance of railway line extends north from Toronto to within 12 miles of James Bay. The cost of railway transportation per unit of distance is much higher that that of waterway transportation - hence the interest in developing a port on James Bay, which would be within relatively close proximity to the Greater Toronto Area. Trans-Arctic summer sailing is beginning to make it possible for ships to sail between North American East Coast ports and East Asian ports, as well as North American Pacific ports.

Trans-Arctic Sailing

For a few months each summer, it has become possible to sail from the Beaufort Sea to Coronation Gulf and south of Victoria Island to Queen Maud Gulf and Chantrey Bay. During the late 1840s, the Franklin Expedition attempted to sail across the Canadian Arctic until their ships were trapped in the ice in the southern McClintock Channel. While warming summer Arctic conditions now allow vessels to sail between McClintock Channel and Hudson Bay, there may be a need to develop a navigation canal south of the Boothia Peninsula to assure Trans-Arctic sailing.

A short-distance navigation canal built at a strategic location such as passing south of the Boothia Peninsula and extending east to the Gulf of Boothia, would shorten sailing distance and potentially extend the duration of the Trans-Arctic sailing season. The Franklin Expedition was able to sail across the Foxe Basin and Gulf of Boothia into the McClintock Channel during mid to late 1840s, where their vessels became entrapped in the winter ice pack. In the modern era, there is the option of icebreaker ships clearing a navigation passage for cargo ships as the navigation season closes.

Northern Terminal

Trans-Arctic summer sailing between a port on James Bay and East Asian ports needs to be cost competitive, involving deep-draft container ships and bulk carriers of up to 60 feet keel depth. James Bay is shallow with average water depth of less than 200 feet. It would require dredging and installation of buoys with illumination to demarcate a navigation channel around shoals, to allow transit of mega-size container ships and super-size bulk carriers across the bay to a port.

Arctic weather conditions would restrict operations at a port on James Bay from 4 to 6-months per year, requiring that Ontario also make use of Great Lakes and Seaway ports. The short navigation season across the Arctic would likely discourage the Government of Canada from establishing customs offices at the port. As a result, trains would need to carry containers arriving at a port on James Bay to customs inspection offices located in the Toronto area.

Southern Option:

Four ports in Ontario are located within close proximity to an international bridge with customs inspection offices. Agreements negotiated with customs officials would allow ships arriving from overseas to offload containers at any of Johnstown, Port Colborne, Windsor and Sault Ste. Marie for transfer to trucks, which would then proceed to nearby customs offices. Customs offices are located near the Port of Hamilton at Hamilton International Airport, at the border at Niagara Falls as well as at Toronto International Airport. Containers arriving from overseas at Port of Hamilton may be shunted by rail to a nearby customs inspection location.

Over a period of several years, a ship that carries fewer than 700-TEU has sailed from Port of Antwerp to Port of Cleveland, delivering containers at competitive per-container transportation rates while competing with ships of 14,000-TEU capacity sailing to Port of Newark. After transferring containers to railway transportation to Port of Cleveland, the overall transportation cost per container exceeds that of direct ship transport. While there is potential for cost-competitive, direct container ship transportation from European ports to Ontario ports of Hamilton, Port Colborne and Windsor, there is a need to expand export container trade from Ontario to Europe.

Conclusions:

Future weather conditions in the Arctic region would determine the suitability of sailing ships between the Beaufort Sea and a port located on James Bay with railway access and capable of berthing mega-size ships. It offers potentially competitive per-container transportation rates between East Asian ports and the Greater Toronto Area, compared to ships sailing to Pacific ports and connecting with transcontinental freight trains. While there is likely a sufficient import volume of trade to warrant sailing a large ship, there will be a need to increase the volume of export trade traffic

A port on James Bay serving the occasional trans-Arctic mega-size ship would connect by rail into regions at and around both Toronto and Montreal. Navigation dimension restrictions along the Lower St. Lawrence River prevent mega-size container ships from sail between the North Atlantic and the Port of Montreal. The shortage of seasonal dock workers living near the proposed port at James Bay would require extensive automation of port operations, involving crane operations and the transfer of containers between ship and railway.

 

This week, after major container ports on the West Coast reported less ship traffic due to falling imports, U.S. President Donald Trump told reporters that a drop in boxship volume is a win for the American economy. 

"That means we lose less money . . . when you say it slowed down, that's a good thing, not a bad thing," Trump said in response to a reporter's questions at a press conference Thursday. 

After the imposition of 145 percent tariffs on Chinese goods last month, buying activity for goods for export from China to the U.S. plummeted, followed by a sharp drop in container bookings. "Carriers reacted to the drop in exports out of China in the immediate aftermath of reciprocal tariff announcements by the US Government at the start of April by increasing blanked sailings," explained Xeneta's Peter Sand in a recent customer note. 

The number of ships departing China for the U.S. West Coast has dropped sharply: the Port of Long Beach reports 30 blanked sailings in May and June, and the Port of Long Beach reports another 30. Port of Long Beach CEO Mario Cordero confirmed to local NBC LA that volume is already down, and said that traffic hasn't been this slow since the pandemic. 

The number of vessels isn't the full picture. Based on AIS, the boxships that are under way from China to the U.S. this week are riding an average of about two feet higher in the water than normal, says Flexport CEO Ryan Peterson - indicating that they are carrying less cargo. 

The slowdown may not last long. The U.S. and China have begun much-anticipated negotiations on a new trade agreement, and this will eventually result in lower tariffs on Chinese goods, Trump confirmed Thursday. "Right now you can’t get any higher. It’s at 145 percent so we know it’s coming down," Trump told Bloomberg TV. 

 

Berge Bulk has become the latest ship owner to begin to test an onboard carbon capture system. Interest continues to grow in the technology as a means of maintaining the economic life of in-service vessels as the new emissions regulations emerge, as well as a possible approach for newbuilds during the period of uncertainty and lack of supply for alternative fuels.

“Carbon capture is a key pillar of our decarbonization strategy,” said James Marshall, CEO of Berge Bulk. “While we remain committed to optimizing fleet efficiency, installing decarbonization technology, and switching to new fuels, we must also capture carbon at the same time. We’ve been actively capturing carbon through nature-based solutions on shore for many years, now it’s time to also start capturing carbon on board.”

The pilot project is taking place aboard the company’s 63,000 dwt Ultramax bulker, Berge Yotei. Delivered in 2020 and in the Isle of Man registry, the ship was built at the Imabari Shipyard in Japan.

The system being used in the pilot was developed by Value Maritime and integrates carbon capture into an exhaust gas cleaning system known as the Filtree System. It is designed to capture up to 15 tonnes of CO2 per day, representing a potential 30 percent reduction in emissions during operations.

Unlike conventional scrubbers, the Filtree System removes both sulfur oxides and CO? from a vessel’s exhaust. CO? is absorbed into a reusable amine solution, which can be offloaded in port for regeneration or reuse. Potential applications include use in greenhouses, beverage production, and other industrial processes.

 

Carbon capture system was integrated with the scrubber and easily installed on the vessel's funnel (Berge Bulk)

 

Berge notes that while regulatory frameworks such as MARPOL and the EU ETS are still evolving, it is already contributing practical insights into how onboard carbon capture systems can be implemented, monitored, and scaled. The company, which owns, operates, and manages a fleet of over 100 vessels with a carrying capacity of more than 15 million dwt, emphasizes the need for collaboration across governments, ports, technology providers, and regulators to develop the infrastructure, protocols, and commercial models needed to support carbon capture at scale.

Value Maritime was established in 2017 and began installing its system in 2021. It has recently completed installations on other large vessels. Eastern Pacific’s chemical tanker Pacific Cobalt (49,886 dwt) installed the system in 2023. Mitsui O.S.K. Lines also recently installed the system on its tanker Nexus Victoria (75,000 dwt).

After some initial skepticism due to the need for storage and offloading CO2, the technology is gaining interest in the maritime sector expanding on the shore applications are large emitters. Wärtsilä just announced the commercial launch of its onboard carbon capture system calling it a breakthrough in decarbonization for in-service and new build vessels.
 

 

China's gray-hull naval fleet has joined in the pattern of close-quarters encounters between Chinese and Philippine forces in the South China Sea. In years past, these run-ins were almost always carried out by China Coast Guard and Chinese maritime militia vessels, and the PLA Navy kept watch from a distance. In at least one recent encounter, however, Chinese warships got close enough to a Philippine Navy vessel to risk a collision, bringing a heightened risk of direct conflict.

On Monday, the Philippine corvette BRP Emilio Jacinto was operating with two other government vessels at a position about 12 nautical miles off of Scarborough Shoal, a contested reef within the Philippine EEZ that is occupied by China. It is a frequent flashpoint for confrontations between Chinese forces and Philippine interests, including fishermen from Luzon. 

As Jacinto transited the area, PLA Navy frigate Liuzhou cut across her bow at close range, and frigate Tongliao held position less than a shiplength off Jacinto's port quarter. The maneuver occurred in open water, and appeared to be an act of interference or intimidation, according to the Armed Forces of the Philippines. No harm came to the ship or crew, and Jacinto continued on her mission. 

“These reckless actions not only posed a direct threat to the safety of navigation of [Jacinto], but also violated the International Regulations for Preventing Collisions at Sea (COLREGs),” the AFP said in a statement. 

China claims the western Philippine EEZ as its own under its "nine-dash line" policy, a claim invalidated by the Permanent Court of Arbitration in the Hague in 2016. In a statement, PLA Southern Theater Command spokesman Senior Colonel Tian Junli said that PLA forces had "forcefully and effectively stopped the incursion" of Philippine ships in the Philippine EEZ, and he reiterated China's claim that Scarborough Shoal is Chinese territory. 

 

While crew satisfaction has stabilized, the latest edition of the Seafarer Happiness Index highlights the strains from aging vessels, safe manning issues, and a lack of training among the key concerns of seafarers. The quarterly survey run by The Mission to Seafarers, in collaboration with Idwal and NorthStandard, and supported by Inmarsat, is marking its 10th year, with the organizers saying it offers essential insights into the experiences and concerns of seafarers and the areas that require improvement.

The Q1 report shows an overall rise in seafarer happiness to 6.98 out of 10, up from 6.91 in Q4 2024, with the organizers saying overall it revealed a steadying in seafarer satisfaction. Traditionally, issues related to welfare, food, connectivity, manning, and shore leave were among the elements consistently cited by seafarers. The organizers are saying that despite pressure points, many seafarers continue to find fulfillment in their work. They point to teamwork and camaraderie helping with the experience while saying seafarers enjoy the technical aspects of their roles. 

The latest survey identifies safe manning as the most critical concern for seafarers. Respondents described how diminishing crew sizes combined with aging vessel infrastructure were adding to the pressures. The Mission to Seafarers says many respondents reported having to implement triage systems for maintenance tasks, addressing only the most urgent repairs while routine upkeep falls behind. This, of course, raises safety concerns for the crew and the vessels. Slap-dash repairs aboard the containership Dali, for example, have become a central issue in the investigation into the ship hitting and destroying Baltimore’s Francis Scott Key Bridge.

Training also emerged as a concern in Q1. While many seafarers acknowledged access to some development opportunities, others expressed a desire for training that feels “more grounded in reality.” The Mission to Seafarers says there is a desire for more consistent, practical, and scenario-based instruction that builds real confidence, not just theoretical knowledge, especially in high-stress or emergency situations.

“Addressing challenges like aging vessels, inadequate training, and restricted shore leave is not just a matter of welfare – it’s essential for operational performance and future-proofing the sector,” said Ben Bailey, Director of Programme for The Mission to Seafarers. “These issues are clearly interlinked. Neglecting seafarers compromises the reliability of global maritime trade.”

The impact of the workload is reported to be creating stress and lowering the seafarers’ happiness. The Mission to Seafarers points to long hours, especially during port operations, and says respondents also cited excessive administration burdens and constant pressure from shoreside management as negatively affecting morale.  

They also repeat a persistent concern over the limitations of shore leave. The Mission says it is a deeply felt frustration among seafarers. Other issues, including prolonged contracts and limited connectivity, also remain a concern as they increase the sense of isolation and disconnection for seafarers. 

“While it is positive to see strong teamwork, pride in the profession, and some improvements in connectivity, there continue to be key challenges that shouldn’t be ignored,” said Yves Vandenborn, Head of Loss Prevention Asia-Pacific, NorthStandard. He notes progress in some areas of concern while saying, “Persistent overwork, stagnant wages, and patchy welfare support continue to have a negative impact on morale.”

Based on the results and long-term insights from 10 years of the survey, The Mission to Seafarers says the industry must act decisively. It is calling for investing in vessel upkeep, prioritizing targeted, hands-on training, and ensuring crews have access to rest, support, and connections ashore and at home.
 

[By: MAN Energy Solutions]

Wenchong shipyard in China, part of the CSSC Group, has ordered four shipsets of 3 × MAN 8L21/31 MK2 GenSets in connection with the construction of 4 × 96m C-CSOVs (Construction and Commissioning Service Operation Vessels) operated by DO (Deutsche Offshore Schifffahrt [German Offshore Shipping]).

A CSOV is a specialised vessel designed to provide support services during the commissioning and operation phases of offshore wind farms. DO has innovated this concept with increased flexibility, offering the market enhanced applicability in the construction phase, as well as in the cable-grid sector. The basic design was drafted by Naval Architects Salt Ship Design AS from Norway. MAN Energy Solutions licensee, CMP, will build the engines in China with delivery scheduled from Q1, 2027; the order includes an option for further vessels.

The engines will be delivered as part-load optimised for increased fuel efficiency. They will also form part of an innovative diesel-electric concept that complies with Dynamic Positioning stage 2 (DP2), as set out by the DNV classification society.

Johannes Wolters, Managing Director of Deutsche Offshore, summarised: “MAN Energy Solutions’ L21/31 is a cornerstone in our endeavour to develop a vessel with a minimal environmental footprint. The engines offer us benchmark performance in the here and now, while granting us seamless readiness for our decarbonisation strategy.”

Colin Peesel – Head of Sales & Promotion, MAN Energy Solutions, Germany – said: “These 12 engines represent a very significant contract, amounting to over 20MW of power. The L21/31’s many advantages include its class-high fuel efficiency, and low noise-and-vibration levels. Crucially, it is future-proofed regarding operating fuel. Besides MGO, it is capable of running on biofuels such as HVO and FAME, and it is additionally delivered methanol-ready.”

The vessel design that allows for the future retrofitting of the L21/31 GenSets to methanol operation caters for this to a much higher degree than class notation actually requires. Having introduced substantial methanol infrastructure into the vessel already today will make a future conversion to carbon-neutrality smooth and efficient.

MAN Energy Solutions reports a growing trend within the offshore-vessel segment for construction to take place in China. The company already has a sizable presence in China supporting a broad network of licensee engine builders and a growing portfolio of new engine models. Likewise, its after-sales division – MAN PrimeServ – has a strong, global presence, regardless of where the DO vessels eventually operate.

Hakon Juel Hansen –  Manager Engine Promotion & Business Development – MAN Energy Solutions, said: “We are experiencing increased demand for efficient, competitive engine designs for the Offshore Wind segment, which our portfolio of small-bore propulsion engines is fulfilling, backed up by our MAN PrimeServ after-sales network. With these technically sophisticated offshore vessels, DO is showcasing the adaptability of our engine portfolio.”

[By: Damen Shipyards Group]

Damen Shipyards Group, together with partners including Atal Solutions has completed its retrofit of four bulk carriers for BAM Shipping. The project has involved the integration of a series of efficiency boosting technologies and is expected to lower the vessels’ fuel consumption and emissions significantly.

The retrofit is the first time that all of the various solutions have been used in a single retrofit project. In aiming to reduce fuel consumption, the project has maintained five main focal points: resistance in the water, optimising power usage, enhancing propulsion, cutting emissions and lubrication systems.

Efficiency boost
Initially, the plan was to install solutions including the Damen Air Cavity System (DACS) marine lubrication system, the Damen Triton IoT solution, low friction anti-fouling paint, variable frequency drives, shore power connectivity, LED lamps, a wake equalising pre- and post swirl duct, CO2 capture systems and DEX QM lubrication technology.

Collectively, the project partners anticipated that these measures would reduce fuel consumption by 20- 25%, with a reduction in emissions of around 90%. However, during the project, the scope was broadened yet further with the inclusion of four more efficiency boosting solutions.

Growing scope
These were the inclusion of fuel additives, oil lubricant additives, a Hempel propeller coating, and use of nano EFX. This spray solution is applied to the engine’s air intake, ionizing humidity and ensuring optimal fuel combustion, minimising consumption, emissions and carbon deposits. In the coming weeks, the vessels will be verified by classification society RINA, at which point the total volume of fuel savings will be confirmed. However, two of the vessels have already been in operation following the initial retrofit measures and show signs of meeting their anticipated efficiency goals. The fuel savings will additionally reduce the vessels’ OPEX considerably.

Lifetime extension
The project prepares the four bulk carriers for operations in compliance with recent regulations including Carbon Intensity Indicator (CII), and Energy Efficiency Existing Ship Index (EEXI). The work undertaken will also extend the lifetime of the vessels by an expected twelve years. While Damen performed the retrofit of the vessels, Atal Solutions arranged the 123.7 million USD funding for the project. Atal provided a supplier’s credit amounting to 105.2 million USD, requiring the vessel owners to provide just 15% equity, and having a 12 year repayment period with competitive interest rates.

Open and flexible approach
Damen Business Development Manager Rutger van Dam said, “This has been a very exciting project. What we have done here, with the integration of so many different solutions to achieve a combined result, is unprecedented. Of course, there have been challenges along the way, but the outcome has been successful and just goes to show that, with the right people, and the right mindset, you can go a long way. The lessons we have learned on this project will be invaluable as we continue to work towards our goal to become the most sustainable maritime solutions provider.”

Edwin Sieswerda CEO/Founder of Atal Solutions said, “We are very pleased with the preliminary results of this project, and are looking forward to the class verification in the coming weeks. At that point, we will gain a clear picture of how significant the fuel savings resulting from these measures have been. Judging by the performance of the vessels operating already, we expect a positive result. This is in no small part due to Damen’s approach. On a number of occasions during the retrofit we approached Damen with new ideas and suggestions. Each time, they listened to what we had to say and found a way to make it happen.

“At the current time, there are so many unknowns surrounding the maritime energy transition. If we are to succeed in preparing our industry for a cleaner, more sustainable future, an openness to ideas and flexibility such as that shown by Damen will be of vital importance.”

[By: RINA]

On 22 May 2025, maritime industry professionals from around the globe will come together at the prestigious De Vere Grand Connaught Rooms, Covent Garden, for the Royal Institution of Naval Architects’ (RINA) flagship Annual Dinner.

This highly anticipated event offers an evening of celebration, reflection, and strategic dialogue for naval architects, marine engineers, and maritime innovators. Beyond its formal programme, the dinner provides unparalleled networking opportunities with senior decision-makers across the maritime sector, making it an ideal setting for fostering new partnerships and strengthening professional relationships. In 2024, the dinner welcomed over 370 guests representing more than 130 companies. The 2025 guest list includes leading class societies, consultancies, defence organisations, academic institutions, engineering manufacturers, energy firms, and naval architecture companies, solidifying the dinner as a hub for collaboration across the industry.

The evening programme will feature a Presidential address from RINA President Catriona Savage, a celebration of outstanding achievements through industry awards, a networking drinks reception, and a formal dinner - anchored by a compelling keynote address from Commander Mike Forrester MBE, Royal Navy. This year’s awards will recognise excellence across Innovation, Safety, Diversity, STEM, Developing Careers, and other notable achievements shaping the future of the maritime industry.

Commander Forrester, this year’s Principal Guest and Speaker, brings over 18 years of service as a Marine Engineer Submariner, having completed operational tours on land and at sea aboard multiple Royal Navy submarines. In 2023, he and a team of fellow submariners took part in the World’s Toughest Row - an unsupported 3,000-mile transatlantic challenge in a 10-metre rowing boat - to raise awareness for submariner mental health and support the Submarine Family initiative.

Reflecting on his participation, Commander Forrester told The Naval Architect:

“Being part of the armed forces, we are called to deter threats and defend the nation, but the armed forces are more than just equipment - it’s about people. Oardacious started as a challenge among friends, but it’s grown into a platform for fundraising, inclusion and supporting submariners and their families.”

RINA is proud to announce HMS Oardacious as the official charity for the 2025 Annual Dinner. Since its founding in 2020, HMS Oardacious has raised over £600,000 and continues to champion mental health, heritage, and family support within the Royal Navy community. In January 2025, its all-female team, the Valkyries, completed a landmark Atlantic crossing - further broadening the initiative’s reach and impact.

The evening will be hosted by Tom Sharpe OBE, a former Royal Navy Commander turned respected broadcaster and communications consultant. With over 25 years of service and extensive industry insight, Sharpe will bring authority and energy to the event.

Tickets are available from £100 + VAT, with a 10% discount available for full table bookings. Availability is limited, and early booking is strongly encouraged.

Registration and further event details are available at: https://rina.org.uk/events/events-programme/annual-dinner-2025/

 

A federal court has ruled that the U.S. Navy is liable for damages in connection with the Red Hill fuel leak at Pearl Harbor in 2021, which contaminated a military base water supply system and affected thousands of servicemembers and their families. 

17 plaintiffs who filed a civil suit over health effects from fuel-contaminated drinking water are owed compensation, U.S. District Judge Leslie Kobayashi ruled Wednesday. She ruled that the Navy was negligent in its operation of Red Hill, resulting in the release of 19,000 gallons of jet fuel into an access tunnel - where an unknown amount drained into a water supply well. 

The damages per person are comparatively small, ranging from $3,000 to $75,000. Kobayashi ruled that the plaintiffs were not entitled to compensation for economic losses or spill-related expenses, and she denied most of the plaintiffs' claims for ongoing medical care. 

“While the damages awarded by the court are disappointing, this is a step forward in our clients’ pursuit of justice, and we continue to review options to resolve the remaining 7,500-plus cases," said plaintiffs' lawyer Just Well Law PLLC in a statement. "The Court rejected the Government’s argument that thousands of our clients were just psychosomatic and that there was not enough fuel to make anyone sick."

Multiple plaintiffs told Hawaii News Now that the dollar value of the judgement was too low and "disheartening" for victims. "It feels like the government was not held accountable for anything," one plaintiff told HNN. 

The judge's ruling will provide a benchmark for other class-action suits filed by thousands of affected people. It broadly aligns with the Department of Defense's own findings: last year, the Pentagon's inspector general concluded that the U.S. Navy didn't understand the spill risks involved in operating its Red Hill fuel tank site at Pearl Harbor, and it repeatedly failed to respond when a major spill finally occurred, missing multiple opportunities to prevent harm to personnel. Site operators didn't have an accurate map of the facility and its piping, hadn't conducted response drills, and hadn't included the drinking water well or the possibility of a pipeline spill in their formal spill response plan, the IG's investigators found.

 

A contract has been awarded for the front-end engineering and design of the first U.S. temporary storage and liquefaction processing terminals for captured CO2. Known as COAST20 (Carbon Ocean and Storage Transport 20), it is an ambitious project that would provide a solution for the transport and storage of carbon emissions captured from Florida’s industry and be the kickoff for an industry that is also emerging in Europe.

The project is being developed by Aptamus Carbon Solutions, a subsidiary of Overseas Shipholding Group, and has identified a 15-acre parcel with access to an existing deep-water berth in Port Tampa Bay for T-RICH (Tampa Regional Intermodal Carbon Hub) for the handling of the captured CO2. 

It would be connected to a discharge and regassification terminal at LBC Tank Terminals, Baton Rouge, Louisiana. Transport of the CO2 would employ a 20,000-ton liquified CO2 tank vessel, which will be the first to be built in the U.S. The design calls for the first liquefied CO2 articulated tug-barge to be built in the U.S.

Aptamus has entered into an agreement with Entr, the consultancy arm of Aker Solutions, to conduct the front-end engineering and design for the COAST 20 project’s terminals. The concept for the Tampa Bay terminal calls for two 50 percent capacity liquefaction trains with a total throughput of 2 million tons per year and 30,000 cbm of LCO2 storage. The CO2 would be delivered to the facility from pipelines, rail, or truck, and exit on the LCO2 barge. The company’s website says the potential future throughput of the plant is as much as 8 million metric tons per year.  

“We are excited to bring our pioneering expertise in designing and building CO 2 terminals, and other first-of-their-kind carbon removal projects around the globe, to Florida,” said Knut Egil Pedersen, Vice President of hydrogen and CO 2 at Aker Solutions.

The receiving terminal would be located on the Mississippi River near Baton Rouge, adjacent to an existing dedicated CO 2 pipeline system for delivery to permanent underground storage sites.

“Florida is the third highest CO2 emitting state in the nation,” explains Aptamus President, Jeffrey Ross Williams. “Entr’s development of the Port Tampa Bay hub and the LBC Tank Terminals site on the Mississippi River offers the ideal solution for managing captured CO2 in Florida, and we are delighted to partner with them for this critical project. COAST20 will also allow power generation companies to meet the increasing demand for electricity in Florida while managing their carbon output.”

COAST20 was selected in 2024 for an award to be partially funded by the U.S. Department of Energy and includes the design of the Port Tampa Bay intermodal hub site to collect captured CO2 from emitters across the state of Florida. Port Tampa Bay and LBC are also partners in the Aptamus COAST20 project. 

The project is based on the determination that the Tampa Bay region is home to a high concentration of power-generating facilities and large industrial CO2 emitters. They believe that there are major operations that will become stranded emitters that require a solution for handling CO2 emissions. COAST20 is presented as a cost-effective solution.
 

 

Maersk, the largest publicly-traded container carrier and logistics company, cited the “increasingly volatile environment,” telling investors that it expects volume growth in the global container market will slow and possibly even be negative in 2025. The carrier reported, however, a strong start for the first quarter of 2025, which it expects to carry into the second quarter as customers build inventories before the full effect of the tariff war overtakes the market.

“With trade tensions flaring up and uncertainty on the rise, global supply chains are once again in the spotlight,” said CEO Vincent Clerc. He believes Maersk is well-positioned because of its integrated shipping and logistics offering, which could help customers make the best business decisions in the face of current uncertainties.

First quarter container volumes the company reported were stable versus a year ago, while it benefited from higher freight rates in Q1 2025. Profits for its ocean segment soared to $1.9 billion this quarter versus just under $1 billion a year ago. Costs have stabilized after last year when diversions around South Africa began due to the security issues in the Red Sea. Maersk said today it expects the disruption in the Red Sea will continue through the rest of the year.

Despite the looming tariffs and volatility, Maersk said it expects market growth in the second quarter. While admitting that volumes on routes from China to the U.S. plunged 30 to 40 percent in April, Maersk said it believes customers are building inventories, which supported the second quarter, while pointing to uncertainty and the risk of contractions in the second half of the year if the tariffs are not rolled back.

Maersk’s remarks came as Donald Trump heralded the U.S.’s first trade deal, which came from long-time ally the United Kingdom. Trump, however, told reporters that he recognized the tariffs on China would be lowered while still predicting a trade deal would be reached.

Due to the unpredictability, Maersk, however, revised its outlook for the global container market saying growth would be lower than the previous four percent prediction. Its revised estimate set the low end of the range at a one percent contraction, “given the increased macroeconomic and geopolitical uncertainty.”

Maersk said the sequential declines it reported today were expected while it called Q1 “solid results.” Clerc told investors the company would be “doubling down on the work underway on automation and cost management to remain fit for what lies ahead.”

Despite the increased uncertainty leading to a more cautious container volume growth outlook, Maersk reconfirmed its full-year guidance provided in February. It is still projecting earnings (EBITDA) of $6 to $9 billion but said its free cashflow would be negative by at least $3 billion. 

Near-term, Maersk said it was able to reallocate some capacity to other markets, which it said still had strong demand. Clerc said so far the trade war has mostly impacted the flow between China and the U.S. telling CNBC it has “not yet contaminated any of the other trade lanes.”

Clerc told Reuters that they were confident the supply chain would stabilize. He said “the dream of producing locally” for all the needs is not possible. While the trade war casts a shadow over the U.S. economy, he called the current tariffs prohibitive, predicting volatility ahead before the market stabilize. 
 

 

Yemen's Houthi rebels may have agreed to a ceasefire with the United States, but it appears to be off to a less-than-friendly start. On Wednesday, a Houthi spokesman said that the group had attacked the carrier USS Harry S. Truman on the day of the ceasefire announcement, causing the loss of a $60 million F/A-18 Super Hornet strike fighter. 

"The naval and UAV forces of the [Houthi group] carried out a specific military operation targeting the U.S. aircraft carrier Truman and a number of its warships in the northern Red Sea with a ballistic missile and several drones," said spokesman Yahya Saree in a statement. "The operation resulted in  . . . the thwarting of an air attack the American enemy was preparing to carry out on against our country [and] the downing of an American F-18 due to the state of confusion and panic the enemy reached during the targeting operation."

U.S. defense sources have confirmed that Truman lost an F/A-18 on Tuesday, the day of the ceasefire announcement. Anonymous sources close to the Pentagon told CNN and AP that the carrier's arresting gear failed, resulting in the loss of a plane during landing. Both pilots safely ejected and were rescued from the water. 

Saree's claims could not be immediately confirmed, and have sometimes proven inaccurate in the past. If true, however, it would be the second F/A-18 loss attributable to Houthi action. Last month, an F/A-18 fighter rolled over the side from Truman's hangar deck elevator while the carrier was turning hard to avoid an incoming Houthi threat. The sudden maneuver was enough to send the unsecured aircraft overboard. One crewmember sustained slight injuries, but none were killed or pulled over the side in the incident. 

Separately, Houthi leadership signaled Thursday that the group's attacks on Israeli targets will continue, and that the organization still considers the United States to be an adversary.

"The aggression against our people's interests proves that the Israeli and American enemies are enemies of our people in general," said top Houthi leader Abdul-Malik al-Houthi in a statement Wednesday. 

Ramifications for Israel

Though it is a close U.S. ally, the Israeli government was not informed about the U.S.-Houthi ceasefire arrangement before the announcement, according to The Jerusalem Post. Israel is the Houthi movement's primary target, and the group has vowed to keep launching missiles and drones at Israeli territory; the White House's side deal with the Houthis has reportedly caused consternation for Israel's government. 

"Israel will defend itself by itself," said Israeli prime minister Benjamin Netanyahu on Wednesday. "If others join us—our American friends—all the better. If they don’t, we will still defend ourselves on our own."

The agreement comes in the midst of U.S. bilateral negotiations with Iran, brokered by the Sultanate of Oman without Israeli participation. Iranian officials have quietly claimed responsibility for pushing the Houthis into a ceasefire in order to smooth the way for Tehran's nuclear-treaty negotiations with the White House. Iran is the group's primary sponsor. 

“President Trump’s decision to halt attacks against the Houthis effectively leaves Israel alone in the campaign against the Yemeni terrorist organization,” said Danny Citrinowicz, research fellow at the Institute for National Security Studies, speaking to Times of Israel. “It is a further indication and reminder that the administration is working to realize its interests even if these do not coincide with the interests of the Israeli government.”

South Korea’s HD Hyundai is partnering with AI and robotics start-ups to develop a humanoid robot capable of complex, precise welding tasks as part of the smart shipyard of the future. The companies are saying they aim to “usher in a new era of human-machine collaboration,” which will enhance productivity and safety.

“Unlike conventional robots that focus solely on repetitive tasks, these robots must be able to observe, reason, and make decisions,” said HD Hyundai Robotics Vice President Young-hoon Song. He explained that the goal is to have robots that will perform complex welding tasks in the shipyard environment.

Hyundai is partnering with newly-launched, Houston-based Persona AI, a start-up focusing on embodied artificial intelligence, and Vazil, a five-year-old South Korean company focused on robotics integration and manufacturing. The companies will work together to develop the prototypes by the end of 2026. They expect field testing and commercial development to begin in 2027.

Persona AI, earlier this year, raised more than $10 million in pre-seed funding, according to InnovationMap. Two of its founders, Nicolaus Radford and Jide Akinyode, InnovationMap reports helped develop a NASA humanoid robot, and both are former employees of Nauticus Robotics, a provider of autonomous subsea robots. On its website, Persona AI highlights the potential for humanoid robots to provide scalable labor for tough jobs ranging from welding to assembly, fabrication, building, and mining. 

Development of humanoid hardware and AI-based control and learning algorithms for the welding robots will be led by Persona AI. Vazil Company will develop the welding tools and build the industrial testing environment. 

Hyundai has been working to develop the shipyard of the future, which it believes will incorporate automation and other key technologies. Its HD Korea Shipbuilding & Offshore Engineering company will support the deployment of the system, providing live shipyard settings and field engineering data. HD Hyundai Robotics will contribute welding-path AI training data and performance validation.

"Welding humanoids will not only boost productivity but also significantly reduce the burden on workers and greatly enhance safety,” said HD KSOE Senior Vice President Dong-ju Lee. “By developing robots optimized for shipyard tasks, we aim to set a new paradigm in shipbuilding automation. Our goal is a smart shipyard where humans and intelligent robots collaborate seamlessly."

Shipyards and other applications have been using welding bots to perform repetitive tasks on assembly lines. Vazil Company CTO Sungwon Kim highlights that they envision an application that will elevate shipyard automation to the next level. The goal is to enhance productivity and improve workplace safety in shipyards.

The U.S. Department of the Treasury’s Office of Foreign Assets Control rolled out a further wave of sanctions again targeting Iran’s exports of crude oil and products to China, which remains the country’s largest buyer. In addition to sanctioning a third, independent Chinese oil refinery and six more tankers, the U.S. for the first time targeted terminal operators in China’s Shandong Province and two tanker captains it linked to the shadow fleet.

In February, Donald Trump launched his “maximum pressure” campaign and has repeatedly made threats to drive Iran’s oil exports to zero. Last week, Trump expanded the threats, writing on social media that the U.S. would impose secondary sanctions on buyers and would prevent the companies supporting Iran’s oil trade from doing business in the United States.

Iran has reiterated that it would continue the exports and grow its oil business. This was supported by data from commodity analytics firms Kpler and Vortexa that show Iran is currently exporting as much as 1.5 million barrels of crude oil per day.

Today’s action targeted the third so-called “teapot” oil refinery just seven weeks after the administration sanctioned the first of these Chinese operators. These independent refineries are reported to purchase the majority of Iran’s oil exports. The U.S. is now listing the Hebei Xinhai Chemical Group, reporting that it has received multiple shipments and linking it to sanctioned tankers Urgane I and Hornet, which the U.S. says made deliverers of Iranian oil to the refinery.

Treasury is also targeting three firms for operating a port terminal at Dongying Port, China, which has received several shipments of Iranian oil from shadow fleet vessels since 2024. It cites the facility for receiving more than one million barrels of Iranian oil from shadow tankers, including the previously sanctioned Corona Fun, Viola, Seasky, and CH Billion. It is the first time the U.S. has listed terminal operators in the province.

Six additional tankers, Star Twinkle 6, Lamd, Skadi, Big Mag, Impalas, and Thane, were also added to the list. Four of the tankers are reported to be registered in Panama, and one each in São Tomé and Príncipe and San Marino. The U.S. cites examples of shipments as well as illegal ship-to-ship transfers, often to other sanctioned vessels.

OFAC also designated two Indian nationals who it reports are working as the captain of sanctioned vessels. They allege that Lincoln Francisco Viegas has served since 2022 as master of two tankers transporting Iranian oil. Ketan Agarwal, the U.S. says, has served since 2017 as master of several vessels transporting Iranian oil.

Reuters is reporting today that the U.S.’s two prior efforts to sanction the Chinese “teapot” refineries are having an impact on the operations. The report says that sources told them the refineries are having problems receiving shipments and selling products. Trump has vowed to continue to increase the pressure until Iran agrees to a deal in the current nuclear talks and stops supporting its proxies across the Middle East.
 

[By Edison Chouest Offshore and Bollinger Shipyards}

 

Bollinger Shipyards, the largest privately-owned and operated shipbuilder and vessel repair company in the United States, and Edison Chouest Offshore (ECO), a global leader in advanced commercial vessel construction and operation, today announced the formation of a strategic partnership called United Shipbuilding Alliance (USA).

This partnership is designed to offer a fully integrated solution to expedited design, construction, and delivery of next-generation icebreakers to directly meet the urgent Arctic operational needs. USA recently responded to the U.S. Coast Guard’s April 11th Request for Information titled, “Arctic Security Cutter (ASC): Icebreaking Capable Vessels or Vessel Designs that are Ready for Construction,” outlining the utilization of a commercial vessel for national security purposes acquisition process that spans 33 months from contract award to delivery.

The viability and effectiveness of commercial vessel construction for national security purposes have been firmly demonstrated through the recent acquisition of the USCGC STORIS (WAGB- 21) [ex – M/V AIVIQ]. The STORIS is an American-built icebreaker designed for Arctic conditions and delivered in under three years.

The proposed commercial acquisition method will save U.S. taxpayers more than 40% by reducing and eliminating excess program bloat, government vendor source selection mandates, and redundant bureaucratic reporting mandates. The streamlined approach enables agile execution, smart vendor selection, and the flexibility to shift work across multiple facilities, ensuring projects stay on schedule, minimize disruption, and remain on budget. Programs benefit from stable, contract-driven workforces and flexible timelines, with the ability to shift work across multiple facilities to stay on schedule and control costs. In contrast, government acquisition often suffers from regulatory delays, rigid change management, and increased costs.

“If the mission demands speed, efficiency, and innovation, the answer is clear, let American industry lead,” said Ben Bordelon, President and CEO of Bollinger Shipyards. “The formation of the United Shipbuilding Alliance comes at a pivotal moment and answers President Trump’s call to action in making American Shipbuilding Great Again. I am excited by President Trump’s efforts to reinvigorate America’s shipyards. Through his leadership, he has reignited demand, sparked competition, and challenged American industry to rise to the occasion with urgency and creativity.”

“The creation of the United Shipbuilding Alliance represents a significant evolution in America’s capacity to rapidly address urgent Arctic operational requirements,” said Gary Chouest, President and CEO of Edison Chouest Offshore. ”Our collaboration underscores a dedicated commitment to ensuring America retains a decisive edge in maritime capabilities and enhancing national security within the increasingly strategic Arctic region.”

USA will leverage the combined 144 years of expertise and capacity of Bollinger and ECO’s 6,000-plus skilled American workers across their 33 operational shipyards and fabrication facilities across the Gulf of America to rapidly design, build, and deliver icebreakers for commercial and government customers. Between the two American companies, they have built and delivered four icebreakers in the last three decades, and Bollinger is currently constructing the Polar Security Cutter (PSC) program for the U.S. Coast Guard.

Bollinger took over the struggling PSC program in late 2022 when it acquired Singapore-owned VT Halter, which had amassed more than a quarter of a billion dollars in losses over the first three years of the program. Last week, Bollinger announced it has received approval from the U.S. Coast Guard to begin full production activities on the PSC program, underscoring the confidence the U.S. Government places in Bollinger to deliver the nation’s first heavy polar icebreaker in nearly fifty years. Bollinger has delivered over 180 vessels for the U.S. Coast Guard in its more than 40 years of building for the U.S. government.

Bordelon continued, “It is critically important that any vessel transporting U.S. servicemembers and projecting American power abroad be built here in the United States. The United Shipbuilding Alliance is proof that American industry can and will deliver faster, better, and more cost-effectively, by aligning commercial innovation with national security priorities. Together with our partners at Edison Chouest Offshore, we’re leveraging our combined experience, infrastructure, and skilled American workforce to give the United States the tools it needs to lead in the Arctic.”

The U.S. government has demonstrated a clear need for growing, strengthening and accelerating America’s Arctic operational capabilities. Emphasizing innovation, fiscal responsibility, and efficiency, USA will leverage the speed and advanced maritime engineering, naval architects, and designer techniques of commercial construction to streamline the procurement of each vessel, significantly expediting production schedules, and achieving substantial cost efficiencies, benefiting both government needs and taxpayers. 
 

 

Esperanto. The Maginot Line. Feudalism. Tariffs. What do these things have in common? They were all clung to despite the tide of history, even after it had become obvious that the water was coming in and had no intention of making a halt.

The idea that public policy can override social and economic forces is, in its way, comforting. We would surely all like to imagine that we are masters of our fate. But Sophocles knew better: "…what is fated, no one can flee, neither by chariot nor by ship."

Take note, mariners. The Greek is saying that you had better rise with the tide.

So far, globalization has been unstoppable. Then and now, trade tensions and arguments about tariffs indicate globalization's continuing strength, not its failure.

I wrote about tariffs in 2020 ("Tariff Follies," Sept./Oct. 2020), in the waning days of the first Trump Administration. Back then, the oracles were prophesying that globalization would perhaps grind to a halt. One panicky prediction went so far as to suggest global trade volume could collapse by 17 percent, an apocalyptic number that would drag down global shipping along with it.

So, how did that go?

I'm happy to report that my five-year-old advice weathered the test of time. "The hot air blowing around tariffs and trade and the intensity of the arguments they engender do not nearly match with the reality," I wrote. That reality turned out to be "business as usual." Instead of shrinking, global trade volume grew by a satisfying six percent vis-à-vis 2020. Global container volumes also set a new record, reaching 74 million TEUs in 2024. All good signs.

Now it's 2025. Trump and tariffs are on the agenda. Again, people are concerned.

WORD ON THE STREET

But before we delve deeper, what's the word on the street?

According to Citibank, an undifferentiated 10 percent tariff could cut European GDP by 0.3 percent over two years. The Institute for the German Economy projected that the already shrinking German economy could suffer further losses in the 2025-29 timeframe equal to 180 billion euros. Italy's economy could contract by 1.2 percent, according to the French Center for International Economic Studies. Tottering Europe would be easy to push into a recession.

Divestment from tariff-afflicted manufacturing sectors may lead to difficulty in obtaining credit and a one or two percent price drop for equities. So would you like to buy the dip?

The machinery and automobile sectors will be hurt the most. They make up 41 percent of Europe's exports to the U.S. Europe sells America a surplus of 102 billion euros of machinery and automobiles each year.

BMW, the German automaker, is expected to take a 400-million-euro hit to its earnings. Other carmakers, however, like Volkswagen, remain unconcerned, remarking that its "North American assembled VW-brand vehicles meet the USMCA rules of origin and are exempted from the 25 percent tariffs." USMCA stands for the U.S.-Mexico-Canada Agreement, a free trade treaty.

Italian-led Stellantis, known for its Jeep and Dodge brands, has gone further. It's not only using the USMCA exemption but planning to expand its U.S. operations, aligning with Trump's goal to compel investment in American car manufacturing and provide jobs for Americans. Under USMCA, any vehicle with 75 percent of its parts originating in North America is tariff-exempt.

Europe has few options when it comes to retaliation. Europe mostly imports oil, coal and natural gas from the U.S. These fuels are not likely to be taxed further by European governments because energy costs are already so politically dangerous.

This illustrates how some can, and will, rise with the tide, while others will struggle.

SHIPPING'S RESPONSE

It's not only globalization that continues despite headwinds. Indeed, in the words of William Arthur Ward, "the pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails."

Let's see how shipping companies are responding.

First Maersk, the Danish titan. Charles van der Steene, its North America President, acknowledged that "the shortterm effect of any tariff clearly is inflation." But the bigger cost driver is a duty on Chinese-manufactured cargo vessels of $1-1.5 million per port call. Seventy-nine percent of Maersk's orderbook is for Chinese freighters, so worry is justified.

Depending on the vessel size, the additional cost per container could work out to around $100. The freight to move a container from Shanghai to Los Angeles sits at roughly $2,650 presently, so while this seems disruptive on its face, the new duty is only a drop in the bucket. Supposedly, this fee will boost purchasing of newbuilds from South Korean and Japanese shipbuilders.

Next, CMA CGM, the French shipping giant, which is proving itself agile. Rodolphe Saadé, CMA CGM's CEO, pledged a $20 billion investment in the U.S. including $8 billion for up to 30 new U.S-flagged containerships, $7 billion for logistics, encompassing new logistics hubs and warehouses, $4 billion for new port facilities and $1 billion for air freight hubs and aircraft. These investments will create approximately 10,000 American jobs.

And, finally, Hapag-Lloyd, the German container giant, whose CEO, Rolf Habben, is perhaps my kindred spirit. In February, he suggested that "it is too early to push the panic button" and counseled patience. Then, he pragmatically noted: "The U.S. President also wants the U.S. economy to grow. They will need more goods for that." And that means ships will be moving cargo.

IMPACTS

Now, let's take a moment to examine the strategic situation in more detail.

At the end of Trump's previous term, in 2019, the U.S. was bringing in $71 billion per year in tariff revenue. By 2024, that number had grown to $97 billion, which is more, but not so much more that it would be significant relative to America's $29 trillion economy. Even if Trump's hyped-up new tariffs enter fully into force, they would only make up about 2.5 percent of U.S. tax revenue, which is about the average from 1974-2023.

In value terms, the picture is similar and doesn't appear to be especially shocking.

For decades, on average, the U.S. levied tariffs of 2.71 percent against imported goods. The rest of the world imposed tariffs more than twice as high, 6.7 percent on average, on American products. Putting aside rhetoric, the Trump Administration's tariff adjustments will likely address this longstanding disparity rather than create a new trade paradigm.

A sampling of the rhetoric from the Trump administration suggests that the tariffs are more for domestic posturing than an effort to rework globalization. Commerce Secretary Howard Lutnick's remark exemplifies this neatly: "These countries have used us and abused us. That is going to change. It's unbelievable the way we get ripped off around the world, and Donald Trump is going to level set it, make it reciprocal and make it fair."

It isn't that the system needs to go. It needs to be "level set," to be made "fair."

LEVELING THE PLAYING FIELD

And, in truth, there's surprising merit to that argument.

Gilberto Garcia-Vazquez, Chief Economist at Datawheel, agrees that "the world imposes tariffs more than twice as high as those applied by the U.S. on imports," which also fails to take into account the rich tapestry of non-tariff trade barriers that are conspicuously common abroad but not in the U.S.

I detailed this in my 2020 article, but the situation is worse now. The U.N. Council on Trade and Development estimates that 70 percent of world trade is subject to what it calls "technical barriers," with climate change a major policy driver.

If the U.S. moves its economic policy in line with the rest of the world's protectionism, it's certainly a bad decision, but it's hardly a paradigm shift. A wise mariner knows that the tide will roll in and that it will eventually roll out. Only a fool would try to resist it.

 

The U.S. Coast Guard is seeking an expedited procurement of ships that can operate in ice. Concurrently, the Royal Canadian Navy has just received the sixth of the Arctic Offshore Patrol Ships (AOPS). This is part of a large program to replace naval assets of various classes. The AOPS were build by Irving Shipbuilding Limited in Halifax, and the comparative capabilities are shown in the table below.

Item	USCG Requirement	Canadian AOPS Capability
Size	360 x 78x 23 ft	338 x62 x 19 ft
Ice Breaking	3 ft @ 3 knots	Polar Class 5 / 2.3 – 3.9 ft
Range	6,500 nm	6,800 nm
Endurance	60 days	120 days
Helicopter	Flight Deck and Hanger	Up to Sikorsky S-92

 

Upon completion of the Navy AOPS program, the Irving yard was to begin on the new surface combatants to replace the Halifax-Class frigates. There were delays in the design and contracting processes, which were going to create a gap at the yard where they would not be producing any ships and would lose much of their highly skilled workforce. The Canadian government stepped in and contracted the yard to build two more of the AOPS ships, which will be delivered to the Canadian Coast Guard.

There is a long history in Canada of saddling the Coast Guard with ships that were never designed for their programs. This includes inventory from the old Royal Canadian Mounted Police fleet, ships built by shipyards on speculation for the offshore oil industry, and ships acquired from other companies, both domestically and internationally.  

One of the early ships that fell into this category was the Labrador, a Wind-class icebreaker built for the Royal Canadian Navy. The Navy operated the Labrador from 1954 to 1957, and it was then transferred to the Coast Guard where it was in service until 1987.

Labrador was a less-than-ideal platform for Coast Guard programs. It was directionally unstable, which required skilled shiphandling when escorting commercial ships or breaking out harbors. Although the accommodations were upgraded from military standards, they did not meet the normal standards of the Coast Guard fleet. The Canadian Coast Guard, as always, made do, and developed a saying: “Seamanship is the art of overcoming bad design.”

The two Canadian Coast Guard AOPS are already under construction, with delivery planned for 2026 and 2027 respectively. Now would be an opportune time to sell them to the U.S. and use the money to build more purpose-built ships for CCG programs.

With the Canadian dollar trading at about 0.72 of a US dollar, the U.S. would be gaining almost thirty percent on the exchange rate alone. Whether Canada is willing to sell to the U.S. in the current trade environment and whether tariffs would affect the economics are unknowns.

If both countries wanted to make a deal, this approach would benefit both coast guards, as the U.S. would quickly acquire two new vessels that meet their stated requirements, and the CCG would get to have ships of their own design rather than making do with a naval design.

Jack Gallagher is the owner of Hammurabi Marine Consulting and served in the Canadian Coast Guard for twenty-two years.

 

Yemen's Houthi rebels have begun to clarify their version of the Red Sea truce agreement announced by the White House, and it appears that international shipping may still face risks on the waterway. 

On Tuesday, President Donald Trump announced that the Houthis had "capitulated" after an extended U.S.-Israeli bombing campaign. The group agreed to stop attacking U.S. shipping, Trump said, and U.S. forces would immediately stop bombing sites in Yemen. 

After Trump's statement, official Houthi media channels announced that the group would continue to attack Israel in retaliation for the ongoing military operations in Gaza. On Wednesday, Houthi spokesman Mohammed Abdulsalam emphasized that the new agreement with the White House did not affect the group's hostilities with Israel in "any way, shape or form." 

If the Houthis' plans to attack Israel also extend to Israeli shipping, the new ceasefire may not reduce risk for foreign-flag commercial traffic. The Houthis have previously attacked vessels with documented links to Israel, but they have used the same justification to attack vessels with no clear Israeli ties - and even vessels that have clear ties to Houthi allies. If this targeting pattern continues, neutral vessels could be targeted as "Israeli ships," whether by accident or by intent. 

Given the uncertainty, leading ocean carriers have suggested that they will wait some months after hostilities end before returning their ships to the Red Sea at scale, in part because of the cost and disruption of adjusting global networks to a different route. It would be expensive to change from the Cape of Good Hope route to Suez, then change back to the Cape route again if the Houthis began targeting foreign-flag merchant ships once more. 

Analysts agree that when container shipping does return to the shorter Red Sea route, the global ocean freight market will return to a familiar pattern - overcapacity and thin margins. 

"The one element of the container shipping market that affects freight rates the most . . . may be nearing an end. But, let's see if this is really happening," said Xeneta lead analyst Peter Sand in a social media post. "If transiting the Red Sea to its full extent is once again safe . . . the balance of the market will once again shift. From its current tightness to one where overcapacity will depress freight rates."

 

President Donald Trump has switched nominees for the post of Maritime Administrator, withdrawing the nomination of Capt. Brent Sadler (USN, ret'd) and substituting Capt. Stephen Carmel, a former Maersk Line Ltd. executive with decades of commercial maritime experience. No formal announcement was made for the change; MARAD has been without a confirmed leader since former administrator Adm. Ann Phillips' resignation in mid-January.  

"Stephen Carmel is solid - bottom line the nation needs leadership in MARAD ASAP. I have known Stephen for years and support him," said Capt. Sadler in a brief statement acknowledging the change. 

Former nominee Capt. Sadler is a Navy veteran who currently works as a researcher with the conservative Heritage Foundation. He is an engineer by training and a graduate of the U.S. Naval Academy, with multiple Indo-Pacific submarine tours on his resume. 

New nominee Capt. Stephen Carmel is a graduate of the U.S. Merchant Marine Academy and a former senior vice president at Maersk Line Ltd. (MLL), one of the most prominent U.S.-flag carriers in the Maritime Security Program (MSP). He holds a master unlimited license, and he previously sailed for Military Sealift Command and Maritime Overseas Corporation, securing his first command at the young age of 26. He is also a certified accountant and holds an MA in Economics and an MBA in International Finance from Old Dominion University, according to his biography for the U.S. Merchant Marine Academy Board of Visitors. He has also served on the CNO Executive Panel, Marine Board at the National Academies, and the Naval Studies Board.  

Carmel's nomination received swift support from the Dredging Contractors of America. In a brief endorsement, DCA CEO William Doyle said that "Steve knows maritime, he knows the American Flag, and he sailed commercially in the U.S. Merchant Marine."

The head of the Maritime Administration holds responsibility for the Ready Reserve fleet, the Maritime Security Program, the Tanker Security Program, the U.S. Merchant Marine Academy, and a range of grant and R&D programs supporting commercial maritime. The next appointee will inherit an agency primed and ready for renewal: High turnover and high retirement eligibility have left MARAD with scores of vacant positions. As of last fall, the agency had openings for 12 percent of all authorized positions, according to GAO - before the reduction in force initiatives under the current administration began.