The Nordic Association of Marine Insurers (Cefor) has released its 2024 hull and machinery coverage report, shining a spotlight on emerging trends in the marine insurance market. Cefor has a coverage share of about 56 percent of the world fleet above 20,000 gross tonnage (GT).

A major highlight in the report is the rising claim cost per vessel since the pandemic. While the major claims impact was benign in the period from 2015 to 2022, with only an occasional claim exceeding $30 million, both 2023 and 2024 saw claims above $50 million. In 2023 and 2024, the claim cost per vessel was 22 percent higher than the average of the period 2017-2019. Cefor attributes this to the shipping trend towards larger and more valuable vessels, which somewhat heightens the probability of very large losses.

“Machinery damage showed a substantial increase in recent years, which should be seen in the context of an aging fleet. Among the largest losses, fires and collisions dominate,” said Cefor Actuary Astrid Seltmann.

Cefor predicts that a silver tsunami is in the offing, with many vessels delivered in the years after the financial crises (2008-2012) now getting old (13-17 years). These vessels are prone to fires, machinery claims and consequential damages. Machinery claims accounted for 56% of the claims cost for these vessels compared to a 35% share on vessels built in later years.

Last year, eleven machinery claims above $5 million were reported. This compares to seven such claims in 2023 and nine in 2022. The majority of machinery claims represent damage to the main engine, followed by auxiliary engines and propeller shafts.

Again, fires and collisions represented the costliest claims in 2024. Since 2019, the number of fires in container vessels has increased, raising concerns in the shipping industry. In 2023, the two largest losses above $50 million were fires, and four out of eight losses above $10 million were fires. In 2024, four out of nine losses above $10 million were fires; the two largest were collisions.

Christian Irgens, chair of Cefor’s Statistics Forum, also highlighted an increase in heavy weather losses, which might be linked to vessel rerouting through more weather-exposed areas. Weather-related casualties from the end of 2023 through the second quarter of 2024 showed a steady increase exceeding the seasonal variation of the preceding years. Increased exposure to weather events on the longer route around the Cape of Good Hope might have had an impact on the occurrence of weather-related damage.

 

The U.S. Coast Guard is set to save $32.7 million following the termination of an information technology program that was once deemed critical in “integrating capabilities,” but which is now said to be ineffective.

In a move instigated by the Department of Government Efficiency (DOGE) and in line with the Coast Guard’s Force Design 2028 (FD 2028) initiative, the agency announced the termination of the Logistics Information Management System (CG-LIMS), with its program activities expected to cease no later than May 1, 2025. With the termination of the “ineffective” program, the agency is expected to save $32.7 million, funds that have already been appropriated and which will now be redirected to address emerging needs.

CG-LIMS was among the nearly 500 IT systems that the Coast Guard has invested millions to procure to help execute its various missions. Expected to begin operating in 2027 before reaching full capability in 2031, the CG-LIMS had been marketed as a system that leverages modern and cloud-based technology to deliver an integrated capability.

In particular, the system would have allowed the agency to better track its supply needs, ease the logistics burden on field units, provide a modern IT tool for maintenance teams and offer better cybersecurity than current systems. The system was also expected to support maintenance and supply of aircraft, vessels, and shore based assets besides managing asset configuration, supply, maintenance and technical data for capital assets in a single unit.

The Coast Guard intended to utilize the system on 245 cutters, 200 aircraft, 1,800 boats, shore-based systems, aids to navigation equipment and command, control, communications, computers, cyber, intelligence, surveillance and reconnaissance equipment.

However, with DOGE now determining that the program is ineffective, the Coast Guard is expected to stop any acquisition activities and reassign CG-LIMS personnel to fill other critical personnel shortages within the agency.

“Another win for government efficiency,” said Kristi Noem, Secretary of Homeland Security. “$32 million in taxpayer savings thanks to the Coast Guard eliminating an ineffective IT program. I’m proud of the men and women of the Coast Guard, who continue to deliver on the President's agenda and deliver efficiency while securing our borders and maritime approaches.”

 

The Canadian public has responded to the American tariff on trade. Airline bookings from Canada to American destinations has dropped by an estimated 70%. Many Canadians who had earlier booked passage aboard cruise vessels sailing from American ports or sailing to American destinations - such as Juneau, Alaska or Hawaii - have cancelled their planned trips.

Introduction

America’s trade tariffs have had an impact on the Canadian public, with layoffs expected in multiple sectors across the Canadian economy. A large number of Canadians who had earlier planned to visit the United States as tourists have canceled their plans. Airline operators and cruise ship companies that operate to and from American locations have experienced a decline in customers from Canada, most of whom are planning to travel domestically. Canadian-owned and Canadian-registered cruise vessel operators who sail to and from Canadian locations have experienced an increase in bookings.

Cruise ships sailing from Europe and the UK to the North American Great Lakes have attracted an increasing number of customers over the last several years. The recent imposition of American tariffs on European and British products has potential to affect European and British tourism to North American destinations. Cruise ships sailing between the North Atlantic and Lake Ontario need to transit through American navigation locks located on the Upper St. Lawrence River, where American border patrol officials have the authority to check documents. Cruise ship operators have the option to arrange to have tourists bypass the American navigation locks.

Bypassing the Locks

A dock capable of berthing Seawaymax size cruise ships is located at the former Port of Cornwall, which might need to be reactivated for the cruise industry. Cruise companies that sail vessels from Toronto and Kingston to locations that include Ottawa, Montreal, Quebec City and ocean coastal locations, might consider sailing from Port of Cornwall. Likewise, cruise ship operators that sail from Europe and Britain to the Great Lakes also have the option of sailing to the Port of Cornwall, to transfer their guests to motor coaches for transportation to Port of Johnstown.

Despite the Port of Johnstown being a bulk freight terminal, passenger cruise vessels have stopped there to transfer passengers to tour buses that carried tourists to and from nearby tourist attractions. There is potential for cruise vessel operators to keep a few vessels on the Canadian side of the Great Lakes, to sail from Port of Johnstown to Georgian Bay, via Lakes Ontario, Erie and Huron with stopovers at Kingston, Toronto and Niagara Falls region.  

Canadian Cruising

A 120-feet length mini cruise vessel dubbed Kawartha Voyageur has clearance to sail from Kingston at the northeast corner of Lake Ontario, through the navigation locks of the Rideau Canal that connects to Ottawa, with additional clearance to sail the Ottawa River to Montreal. The vessel does on occasion sail to Quebec City. A slightly larger vessel with 35 cabins, dubbed Canadian Empress, is cleared to sail the Ottawa River between Montreal and Ottawa. It regularly sails along the St. Lawrence River between Montreal and Quebec City.

While the dimensions of Canadian Empress are slightly smaller than the navigation locks along the Rideau Canal, it usually sails along the Upper St. Lawrence River from Kingston to Montreal and the Ottawa river to and from Ottawa. Due to the imposition of American tariffs and a crackdown on foreign nationals in the USA, the operator has the option to divert guests around American customs at the navigation lock. The vessel is able to berth at Canadian marinas located on both sides of the navigation lock, potentially allowing guests to travel a short distance by bus between marinas.

Western and Northern Cruises

Several Vancouver–area companies that own small cruise vessels offer the equivalent of river cruises by sailing the Inside Passage from Vancouver and into scenic inlets that connect to the Strait of Georgia. While not a tourist ship, a Canadian passenger ferry service sails the scenic route from Vancouver to small communities located along Canada’s Pacific coast. Canadian small – cruise vessel companies that sail from the Port of Vancouver aim their services at a different market than mega-scale cruise vessels.

The small vessels carry anywhere from 6 to over 50 guests and offer a very different itinerary to mega-scale vessels, which are unable to turn around within the limited width of the scenic inlets. Unlike cruise ships that make brief stopovers, the small vessels make extended duration stops at small coastal villages, to the delight of many of their guests. Summertime Arctic cruises are becoming popular. One multiday Arctic cruise sails from Port of Churchill on Hudson Bay with ports of call extending to Western Greenland. It interconnects with a passenger train from Winnipeg.

Conclusions

American tariffs have elicited a response from Canadian citizens who previously flocked to American tourist destinations and boarded cruise vessels at American ports. Tariffs have begun to hit the tourist industry. Canadians - along with guests from numerous overseas origins - are becoming selective when booking passage aboard cruise vessels.

 

The Black Sea container terminals of Bulgaria, Romania and Ukraine handled 1,313,392 TEU in 2024, including empty containers and transshipment.  

This review examines the laden container volumes of these countries imported and exported by sea only, since waterborne container traffic in Ukraine is about 30% of the total. The total increase achieved by these three countries for the period was 12% compared to the same period last year and comprised 1,015,563 TEU.

Black Sea region turnover, 2024 vs 2023, laden containers (TEU)

The laden container turnover increase was in all these countries. In 2024 the highest percentage growth was achieved by Ukraine – 78%.

Laden container turnover by country, TEU

During this period, 54% of full containers handled were imported, with 46% of the volume being exported. It is estimated that laden containers share was 77% and empty containers share was 23%.

Import volumes to the aforementioned countries increased by 21% compared to 2023. The highest import volume increase was shown by Ukraine – 154%. In Romania there was an increase of 22%, while in Bulgaria there was an increase of 4%.

Exports from these countries increased by 3%, mainly because of Ukrainian and Bulgarian export volume growth of 47% and 5% (respectively). There was a slight decrease of laden export volume in Romania – 3%. 

Thus, the percentage of laden volume handled by each country in 2024 distributed as follows: Romania – 67%, Bulgaria – 23%, and Ukraine – 10%. The top three container terminals in these countries were DPW (Constanta, Romania), VARNA (Bulgaria) and BURGAS (Bulgaria).

The remarkable rebound in Ukraine's container traffic was a key factor in the broader recovery of maritime trade within the Black Sea region. Notably, Ukraine's growth rate significantly outpaced its neighbors, demonstrating its crucial role in driving this regional recovery. This strong performance underscores Ukraine's strategic importance as a trading hub in the Black Sea and highlights the significance of supporting its maritime infrastructure for the benefit of the entire region's trade network.

 The initial groundwork laid by a local forwarding company, followed by the significant commitment from global shipping giants like MSC and Maersk, showcases the resilience and inherent potential of Ukraine's maritime sector. While the challenges posed by the ongoing conflict undoubtedly persist, the tangible evidence of this robust trade recovery offers a strong indication of progress and underscores Ukraine's unwavering determination to rebuild its economy and actively re-engage with the global marketplace.

Bulgarian, Romanian and Ukrainian container carriers’ shares by total turnover, 2024

Historically Maersk, MSC and CMA CGM were leading carriers in the Black Sea region, and their total share of the market was more than 60% in recent years.

As for the other countries of the Black Sea, laden container turnover in Novorossiysk increased by 8% to 773,000 TEU. About 40% of this volume was transported by MSC and Turkish carriers in the Black Sea, while the other 60% was transported by local carriers in Russia. Georgia's total volume in 2024 reached 636,000 TEU.

The forecast of container turnover growth in the Black Sea region for 2025 shows that growth will amount to 8-10% and will exceed 3.2 million TEU in 2025. The major driver of that growth will be further restoration and expansion of direct container connection to Ukrainian ports.

Vassiliy Vesselovski is the CEO of Ukrainian shipping intelligence firm Informall BG. Daniil Melnychenko is a Data Analyst with the firm, and Alexander Khromov is a Project Manager.

Top image courtesy Konstantin Kulikovskii / CC BY 2.0

 

During U.S. Secretary of State Pete Hegseth's visit to a Panamanian naval base Tuesday, a local tuna clipper hit a moored Panamanian navy patrol boat at the pier at high speed. 

Hegseth was on scene to inaugurate the newly-built Pier 3 of the Capitán de Fragata Noel Antonio Rodríguez Naval Base, just south of the PSA Rodman terminal in Balboa. Minutes after Hegseth's departure, the Panamanian-flagged tuna seiner Upar arrived, making way astern at a rapid clip. It struck the SENAN Panama patrol vessel P-208 alongside the pier, making contact but cushioned by fenders hung over the side. Video from the scene shows the crew of the patrol vessel abandoning ship onto the dock as a precautionary measure. Moments later, the tuna clipper's stern allided with the concrete pier structure. 

Se registró un incidente en la inauguración del muelle 3 de la Base Naval Capitán de Fragata Noel Antonio Rodríguez del Servicio Nacional Aeronaval, donde un buque chocó contra el muelle.?
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Minutos antes, estuvo presente el secretario de Defensa de Estados Unidos, Pete Hegseth… pic.twitter.com/U2gq303jP2

— TVN Noticias (@tvnnoticias) April 8, 2025

Though the allision startled attendees and members of the press, video from the scene showed no apparent damage on the hull of the Upar, and no injuries were reported. Harbor tugs arrived swiftly and helped maneuver the tuna clipper away from the pier; both the P-208 and another nearby patrol boat started their engines and got under way from the base.

The cause of the incident is under investigation. Panama's government has not issued a statement on the extent of any damage to the patrol vessel or to the newly built pier. 

P-208 is a Point-class Coast Guard cutter built by the J.M. Martinac Shipbuilding Corp. in the 1960s. She was donated to the government of Panama after decommissioning, along with several other vessels in the class. 

Upar is a 1977-built tuna seiner registered in Panama. Formerly named La Rosa Mistica, she is linked to a Venezuelan seafood company, and she has been previously accused of irregularities - including harassing American sport fishing operators off Costa Rica and operating within protected waters near the Galapagos Islands. 

On Tuesday, U.S. Defense Secretary Pete Hegseth visited Panama to deliver a message: he pledged that the United States will "take back" the Panamanian government-operated canal from alleged Chinese influence. 

In prepared remarks, Hegseth acknowledged that "China does not operate this canal," and he pledged that China will not be allowed to "weaponize" it via infrastructure construction contracts. 

"The United States of America will not allow communist China or any other country to threaten the canal's operation or integrity," Hegseth said. "The United States and Panama have done more in recent weeks to strengthen our defense and security cooperation than we have in decades."

Shortly after his speech, a Panamanian tuna clipper hit the newly-built pier while moving astern. 

Panama reviews terminal lease agreements

Just before his arrival, Panama's controller general released a review of the two container terminals at either end of the canal. Both are leased and operated by CK Hutchison, a private Hong Kong-based firm with extensive holdings around the world. The review found potential irregularities, and it could delay or jeopardize the sale of the two terminals to U.S. private equity firm BlackRock - an undesirable outcome for the Trump administration, which supports the sale and wants to see the terminals in American hands. 

In his review, controller general Anel Flores concluded that CK Hutchison's local subsidiary underpaid Panama by about $300 million, and he claimed that the firm had not properly renewed its contract to operate the two terminals. According to Flores, the renewal was negotiated on terms that were lopsided in favor of CK Hutchison, and he claimed that the resulting deal was never approved by the controller general's office. "There must be something else going on here, because everyone [at the Panama Canal Authority] negotiated in favor of the company. Nobody wore the Panama jersey," Flores alleged. 

Flores plans to submit a complaint with specific charges to prosecutors within days, and Panama's attorney general has already started an ex officio investigation. 

The decision raises questions about whether Panama will recognize CK Hutchison's right to sell the leases to BlackRock or any other buyer; if the renewal is invalidated, Panama could in theory nationalize the terminals and auction off operating rights to a new concessionaire, Johns Hopkins Latin America expert Benjamin Gedan told the New York Times. 

It is the latest in a series of setbacks for BlackRock. China's government is strongly opposed to the sale, and has pressured CK Hutchison to delay or cancel it for patriotic reasons. Chinese state-owned ports operators are said to be in talks with Hutchison executives about possible offers to take over the firm's network if the BlackRock deal falls through. 

The total global value of the Hutchison-BlackRock deal comes to $22.8 billion, and includes dozens of other terminals around the world. The alleged $300 million payment shortfall at Hutchison's Panama subsidiary is equal to little more than one percent of the value of the overall transaction.

 

The cruise industry enters 2025 in one of its strongest positions ever as the executives of the cruise lines discussed the near-term challenges looming for the economy and global instability. Speaking at the Opening General Season of the industry trade show Seatrade Cruise Global 2025 they highlighted the industry’s history of resilience and ability to adapt in the face of growing economic and political instability.

Asked about the current economic climate and how it was impacting the cruise industry, Josh Weinstein, President and CEO of Carnival Corporation, admitted that the industry’s much ballyhooed “wave season” this year was inconsistent and “choppy.” He said Carnival Corp., like most of the industry companies, started 2025 heavily booked with a long duration stretching out to cruises in 2026 and 2027, but consumers have quickly pulled back in the face of the emerging uncertainties.

“Bookings slowed,” said Weinstein as “people adjusted to the new conditions.” He however believes consumers adjust and the value proposition of cruising will put the industry in a better position. The executives avoided saying “recession,” but it is clearly on everyone’s mind. Weinstein admitted cruising “is not immune from a recession.”

Tariffs and the emerging trade war however they dismissed as having little impact on the cruise industry. The CEOs of Carnival Corp., MSC Cruises, Norwegian Cruise Line Holdings, and Royal Caribbean Group all pointed to the industry’s local supply chains and ability to adjust to avoid tariffs. Pierfrancesco Vago, Executive Chairman of MSC Cruises, also noted that they continue to see Americans traveling to Europe and Europeans booking travel to the United States.

The new President and CEO of CLIA (Cruise Lines International Association), Bud Darr who left MSC to run the trade group, highlighted that about a third of the world’s democracies held elections in 2024, acknowledging a global “mood change in policy.” He noted a cyclical nature of policy while saying cruising would be an “evolving industry in an evolving world.”

“We are not changing our strategy after two days,” said Harry Sommer, CEO of Norwegian Cruise Line Holdings, referencing the launch of Trump’s tariffs and the collapse in global stock markets. 

The executives pointed to the continuing investments being announced for new ships. At least six cruise ship orders have been announced to coincide with the start of the conference.

“We have great confidence in the long-term and are managing for the long-term,” said Jason Liberty, President and CEO of Royal Caribbean Group. He noted the lack of building slots at the four European shipyards that build large cruise ships noting the companies were managing construction for the long term. 

While CLIA calculates there are 60 cruise ships on order, it was noted that half are under 100,000 gross tons. They said however that cruise ships are getting larger in part to provide space for new and future technologies.

“We are not building bigger for the sake of bigger,” said Weinstein. He acknowledges the economics of new cruise ships but said they design ships to provide different experiences for people looking for different options. Vago agreed pointing to the ability of smaller cruise ships to go “off the beaten track.”

The executives each highlighted that they remained optimistic while there was also a call for more collaboration. They said the industry needs to continue to educate elected officials and others of its value and contribution as well as working with local authorities to address concerns before they become a problem. 

The conversation with the executives kicked off the three-day trade show. Organizers noted that the conference is marking milestones, including its 40th anniversary with 12,000 attendees. CLIA highlighted its expectations that cruising will continue to grow releasing its projection that 37 million people will cruise in 2025 and better than 13 percent growth to reach 42 million passengers by 2028.
 

For the first time, a small squadron of nine octocopter cargo drones will sail with HMS Prince of Wales and her carrier strike group, according to the Royal Navy. It is a money-saving technological milestone, and marks the first use of unmanned aircraft for replenishment and stores transfer between ships in the task force.

The drone squadron will operate alongside the F35B stealth jets and naval helicopters on HMS Prince of Wales, handling deliveries of food, personal packages, and engineering parts weighing up to 68 kilos (150 pounds). The Royal Navy says that this will take helicopter flight hours off of cargo missions and allow the helicopter aircrews to focus on their primary protective missions.

"95 percent of stores transferred weigh less than 50kg," said Lieutenant Matt Parfitt, drone flight commander with 700X Naval Air Squadron. "In the past we'd have used a helicopter if a part was urgently needed on another ship. This time we're going to use a remotely-piloted, uncrewed system instead."

The Malloy T-150 drones used on the deployment have eight two-foot rotor blades and can fly at speeds up to 50 knots, with an endurance of 20-40 minutes. Each drone requires a two-person team - a remote pilot and a command unit monitor - and the unmanned systems can be flown manually or programmed to follow designated waypoints.

The drone systems were acquired in August, leaving the Navy with limited time to develop operational procedures, training, and integration with crewed aircraft operations. Lieutenant Parfitt noted the challenges of adapting the primarily land-based systems for maritime use.

"These systems have only really been used over land before, so we're also having to understand how we can operate and maintain them in the maritime environment," he said.

The 700X Naval Air Squadron has assembled a team of 12 sailors to operate the nine drones, initially from three ships in the group. The squadron includes personnel from various naval branches who have been retrained as drone operators.

Among them is Able Rate Michael Page, who transitioned from aircraft handling to become a remote pilot qualified on both the Malloy and smaller fixed-wing Puma drones. "You've got a lot more responsibility in this role and they don't just need to look at your rank, instead they look at your level of skill," Page said.

The drones were developed through a Ministry of Defence research project aimed at accelerating the adoption of new technology. The Royal Navy's experimental 700X Naval Air Squadron trialed a far larger Malloy T-600 rotary wing drone at RNAS Culdrose in 2022, alongside a Windracers Autonomous Systems Ultra fixed-wing drone. 

The Ultra is a twin-engine, aluminum-bodied unmanned plane that can drop a payload onto a carrier-sized landing pad at a range of more than 500 nautical miles - but it can't do ship-to-ship vertical replenishment runs, the day-to-day logistics workload of a carrier strike group at sea.

 

Saudi-backed media outlet Al Hadath has reported the death of the Houthi intelligence chief, Abdul Nasser Al-Kamali, in an American airstrike. It is the latest reported fatality among the Houthis' leadership ranks from the intensified U.S. bombing campaign, which is now in its fourth week. 

White House National Security Advisor Mike Waltz claimed last week that a U.S. strike took out an unnamed Houthi missile expert, without providing further details. The Pentagon has not confirmed the claim. 

“It’s been a bad three weeks for the Houthis, and it’s about to get worse," U.S. Defense Secretary Pete Hegseth said Monday. 

The group continues to hit back, albeit at a slower pace than before the airstrike campaign. On Monday, a Houthi spokesman said that the group launched an attack on Tel Aviv with a drone, along with an attempted strike on two U.S. Navy destroyers. The Israeli Defense Force said in a statement that the drone was shot down before it crossed into Israeli airspace, and that no air raid alerts were required. 

The Houthis have routinely launched strikes on Israeli and American targets, with limited success; the group has yet to land a confirmed hit on a U.S. Navy vessel, and it only managed to sink two merchant ships in more than 100 attempts in 2024. Both sinkings required repeated follow-up attacks. 

Stockpile effects

The cost of the Trump administration's intensified bombing campaign on Yemen is approaching $1 billion, according to the New York Times, raising concerns about the effects on U.S. guided weapons stockpiles. Officials say that Navy pilots have to use standoff weapons to hit Houthi targets, consuming part of the inventory of slow-to-replace advanced munitions. 

Over the longer course of the conflict, the steady stream of incoming Houthi drones and missiles has also drained the U.S. Navy's stockpile of advanced interceptors, including the SM-class missiles it needs to shoot down high-end cruise missiles and ballistic missiles. In any future conflict with China, these missiles would be an essential ingredient for the defense of the surface fleet and shoreside installations. 

The U.S. Navy's top officer, acting chief of naval operations Adm. James Kilby, said Tuesday that he regrets not pursuing modest laser weapons to take down drone-sized objects. The Navy fielded an anti-drone laser on a deployed warship as early as 2014, but fleetwide use has yet to materialize after 11 years of R&D. In the Red Sea battle environment, the lack of a laser means using up multi-million-dollar missiles on $2,000 inbound drones. Destroyer crews have used up about 200 SM-class missiles defending themselves and nearby shipping from Houthi munitions, and Kilby told Fox that the lack of "better ways to more economically attrit the threat" was a problem. 

Under Adm. Kilby's watch as the former deputy commander of Fleet Forces Command, the Navy tried to develop exquisite high-end lasers in the range of 0.5 to 1.0 megawatts, "and I have regret for that," Kilby told Fox. He said that the Navy is hard at work now on low-cost ways to counter autonomous threats, and he called on munitions manufacturers to speed up production. 

 

As China and South Korea celebrate continued dominance in global shipping, Turkey has recorded a decline for another consecutive year in a sector that was once lucrative for the country. Recent data from the Turkish Exporters Assembly (TIM) indicate that shipyard exports in the first quarter decreased by 27.5 percent to $328 million.In March alone, the exports plunged 40 percent to $86 million compared to the same period last year. As a result, shipbuilding was the worst performing industrial export sector in the first quarter.

The decline has been attributed to rising operational costs and difficulties in accessing financing. According to the data, production costs have reached almost the same levels as Norway, which is a key export market for ships built in Turkey. This has seen major Turkish shipyards invest abroad, reportedly to counter declining market conditions back home.

In 2023, Tersan Shipyard, a leading shipbuilding company based in Altinova, Turkey, acquired Havyard Leirvik Shipyard in Norway. Tersan said that acquisition is part of its strategy to strengthen its position in Northern Europe and in the global shipbuilding market. During the same year, another Turkish shipbuilding company - Hicri Ercili - acquired Norden Shipyard in Netherlands.

“Decrease in new orders continue to persist, and we foresee a contraction of over 15 percent in the sector’s exports by the end of the year. The weakening of the Turkish currency has also added new problems to the sector, causing a surge in foreign currency loan interest rates,” chairman of the Ship, Yacht and Services Exporters’ Association (GYHIB) Cem Seven told Ekonomim news.

Lost employment is also now a major concern. The data shows that across over 80 active shipyards in Turkey, employment fell nearly 10 percent in the last seven months. The last time the Turkish shipbuilding sector posted a positive outlook was in 2023, with exports rising 33 percent to $1.94 billion. During that year, the sector surpassed China in tugboat manufacturing and held a global lead in fishing boat construction.

 

 

After a 105-day deployment East of Suez, the French carrier FS Charles de Gaulle (R91), accompanied by Horizon Class Air Defense Frigate FS Forbin (D620), FREMM Class frigates Provence (D652) and Alsace (D656) and Fleet Tanker Jacques Chevallier (A725), passed northwards through the Suez Canal on April 7. The Clemencau 25 Carrier Strike Group (CSG) now appears to be heading home to Toulon, and it probably includes a nuclear attack submarine, which has not been identified.

As the French return home, UK CSG 25 is preparing to set sail from Portsmouth for an eight-month round trip to the Yokosuka naval base in Japan, involving an outward and inward transit of the Suez Canal and the Red Sea. The CSG 25 flagship HMS Prince of Wales (R09) has completed Exercise Tamber Shield in the North Sea, a 20-day work-up in preparation for the deployment, and has loaded up from an ammunition depot in Scotland. A detailed timetable has not been issued for the deployment, but the CSG is scheduled to depart on April 22.

Based on a similar deployment to the Pacific by its sister ship HMS Queen Elizabeth (R08) in 2021, the Prince of Wales CSG is likely to transit the Red Sea in May and to return in November. It is unclear whether this plan has been coordinated with the United States, for whom simultaneously maintaining two aircraft carriers in the CENTCOM area places a strain on resources.

The United Kingdom has previously participated in strikes on Houthi positions inside Yemen, rather than restricting activities to the defense of merchant shipping in the Red Sea and Gulf of Aden. Hence a precedent has been set politically for the UK CSG to supplement the current campaign against the Houthis, should this be desired, and to linger in the Red Sea. However, this would then impact planned engagements in the Indo-Pacific area, including with the navies of Australia, Japan and the United States.

On board HMS Prince of Wales will be two F-35B squadrons, 809 Naval Air Squadron and 617 “The Dambusters” Squadron RAF, Wildcat attack helicopters from 815 Naval Air Squadron, Merlin helicopters from 820 Naval Air Squadron and a number of Chinooks, as well as Royal Marines unit. It is unclear as yet if a US Marine Corps F-35B squadron will also be embarked, as it was during the similar 2021 deployment, but there will be no US Navy escorts for the CSG.

Other ships in the UK CSG will include Daring Class destroyer HMS Dauntless (D33), Royal Norwegian Navy Nansen Class frigate HNoMS Roald Amundsen (F311), Type 23 anti-submarine frigate HMS Richmond (F239), an Astute Class nuclear attack submarine and Royal Fleet Auxiliary vessels. Canadian and Spanish ships will also join the CSG for parts of the deployment.

 

Fincantieri and Viking have announced the world's first hydrogen-powered cruise ship designed to use the alternative fuel for both propulsion and auxiliary power. The future Viking Libra is already under construction at the Ancona yard in Italy, and will deliver towards the end of 2026. 

Viking Libra is a small 54,000 GT vessel with room for about 1,000 guests. With H2 fuel cell power, it will be able to operate with zero carbon emissions, which will soon be a regulatory requirement for operations in Norway's World Heritage fjords (a major attraction in Viking's core Scandinavian market). 

It will be fitted with fuel cells producing up to six megawatts of power, equivalent to roughly 8,000 horsepower of generator capacity. The PEM fuel cell technology and related equipment are supplied by the Fincantieri subsidiary Isotta Fraschini; to solve the supply chain problems of hydrogen bunkering, it uses a containerized fuel storage system to load and store the fuel.

Viking chief Torsten Hagen (left) unveils Viking Libra at Seatrade Cruise Global 2025 (Allan Jordan / TME)

 “LNG is not a way to the future, but . . . this new solution is a good bet for the future," said Viking chairman and CEO Torsten Hagen in a presentation at Seatrade Cruise Global.  

Viking said that price is an issue for H2-powered operation, but they believe that the price will come down in the future, and they want to illustrate a path forward for the industry. The containerized approach addresses the challenges of storage and distribution, and makes it possible to add incremental power capacity with more 1.5 MW units.

"Viking made the principled decision to invest in hydrogen, which offers a true zero-emission solution," said Hagen. "We look forward to welcoming the world's first hydrogen-powered cruise ship to our fleet." 

A follow-on vessel, Viking Astrea, will also be fitted for hydrogen power and is already under construction at Ancona. In a parallel announcement, Fincantieri said that it has signed a 2+2 contract with Viking for additional vessels, starting with a firm orders for two hulls to deliver in 2031. 

"We are driving a systemic evolution by integrating cutting-edge technologies, fostering supply chain innovation, and creating a model for the widespread adoption of hydrogen," said Fincantieri CEO Pierroberto Folgiero in a statement. 

Allan Jordan / TME

 

Norwegian Cruise Line has made a deal to charter its two oldest cruise ships as the company pursues its fleet modernization efforts. It is part of a strategy that has also seen the publicly traded parent company, Norwegian Cruise Line Holdings, charter two other ships from its luxury brands to launch a new residential cruise line.

India’s Cordelia Cruises, the only dedicated cruise line in India, will be taking the Norwegian Sky on charter in 2026 and the Norwegian Sun the following year in 2027. The company was started post-pandemic with a single ship but recently reported it was looking to expand its operation.

The cruise ships Norwegian Sky (77,104 gross tons) and Norwegian Sun (78,309 gross tons) were the company’s first effort at modernization in the late 1990s. Started in 1965, the brand had failed to keep pace with competitors and due to financial difficulties had not added new cruise ships at the same pace as Carnival Cruise Line and Royal Caribbean International in the 1990s. 

The Norwegian Sky had been ordered by Costa Cruises as a sistership to the Costa Victoria and was under construction in Germany at Bremer Vulkan when the yard experienced financial difficulties in 1996 and construction was suspended. Norwegian acquired the incomplete ship and finished it at Lloyd Werft introducing it in 1999. It has accommodations for approximately 2,000 passengers and sailed for the cruise line in the Caribbean and a brief period in Hawaii as the Pride of Aloha between 2004 and 2008.

Norwegian decided to build a sistership which became Norwegian Sun in 2001. The company had also planned a third sister but did not go forward with the order.

The smallest ships in the fleet they also predated Norwegian’s open cruise concept without assigned dining and multiple restaurants. The ships were adapted to the concept but lacked the space to have the full amenities of what the company markets as “Freestyle Cruising.” 

CEO of Norwegian Cruise Line Holdings Harry Sommer called the decision to charter a total of four ships from the fleet part of a “disciplined approach to fleet optimization.” Norwegian this week is introducing the third cruise ship in its new series, Norwegian Aqua, and Sommers notes it has a total of seven cruise ships ordered for the brand, including a new class of 200,000-gross ton plus ships.

Cordelia Cruises in its announcement said it would be “unlocking new destinations, introducing longer itineraries, and reimagining what cruising means for India and beyond.” The company to date has operated short cruises on the Empress acquired from Royal Caribbean International. The renamed Cordelia Sky will enter service from Mumbai in August 2026. The company has not announced itineraries for the Sun which will be leaving Norwegian in the fourth quarter of 2027.

Norwegian has also chartered the Seven Seas Navigator from Regent Seven Seas Cruises and the Insignia from Oceania Cruises to Crescent Seas, a residential cruise line. These charters are scheduled to begin in 2026 and 2027.  The company has three new cruise ships on order for Oceania Cruises, and two cruise ships for Regent Seven Seas Cruises. All of the new ships are being built by Fincantieri in Italy.

 

 

The California-based Monterey Bay Aquarium Research Institute (MBARI) is hoping to propel oceanographic research to the next level after taking delivery of its newest research vessel, a project that has taken over a decade to actualize.

MBARI announced that R/V David Packard has arrived at its headquarters in Moss Landing after completing a 59-day transit from Spain’s Freire Shipyard, where she was built at a cost of $50 million. The new ship is named after the institute’s founder, the late Silicon Valley innovator and ocean philanthropist David Packard.

Planning for David Packard, which was funded by the David and Lucile Packard Foundation, began in 2009 when the institute engaged U.S naval architecture and marine engineering firm Glosten to design the vessel. In 2021, the construction contract was awarded to Freire, a well-known specialty yard that also built the Schmidt Ocean Institute's R/V Falkor (Too).

The ship is a major addition to MBARI’s capabilities in ocean exploration. At 50 meters long, 12.8 meters wide with a draft of 3.7 meters, the new ship is bigger than its predecessor. The larger size will expand the institute’s ability to study marine life across the West Coast, from the Pacific Northwest to Baja California.

The David Packard will replace MBARI’s flagship research vessel, the Western Flyer, which was retired in 2022 and which was the institute’s workhorse for two and half decades. It now joins Rachel Carson and Paragon in MBARI’s fleet of research vessels.

Having arrived in Moss Landing, MBARI’s marine operations team is expected to take on the lengthy process of installing custom equipment and systems for oceanographic research. Also planned is a period in dry dock for maintenance and regulatory inspections before she can return to Moss Landing.

Science missions aboard David Packard, which can accommodate up to 12 crew members and 18 scientists for voyages lasting up to 10 days, will begin later this year.

“The ship will not only support advanced technology developed by the MBARI team but also promote collaboration across the marine science and technology community. Together, it’s all hands on deck to understand our changing ocean,” said Kaya Johnson, MBARI Director of Marine Operations.

The new ship boasts cutting edge technologies. It will serve as the command center for the institute’s remotely operated vehicle, Doc Ricketts, a robotic submersible that can dive up to 4,000 meters underwater. David Packard can also support the launch and recovery of autonomous technologies, including underwater vehicles that can map the seafloor, conduct visual surveys of the midwater, and monitor ocean health.

 

Australian oil and gas company Woodside Energy is selling down its equity stake in its Louisiana LNG project, starting with the sale of a 40 percent stake to U.S.-based investment firm Stonepeak.

Woodside is getting near to a final investment decision on the LNG production and export project, which it acquired in a $900 million takeover of developer Tellurian last October. The cost of implementing the entire five-train facility near Lake Charles, Louisiana is estimated at $27 billion.

The Australian company says that the sale of the 40 percent stake to Stonepeak is timely. Stonepeak is expected to inject $5.7 billion in capital expenditure into the project, covering 75 percent of the project’s capital needs in both 2025 and 2026.

Woodside says that the stake sale reduces its capital expenditure profile and brings the project one step closer to a FID. Talks continue with other potential partners as Woodside aims to sell another 10 percent stake in the project. Its aim is to retain a 50 percent operating stake in the megaproject, which will produce 27.6 million metric tons per annum (MTPA) when complete.

The transaction is expected to close in the second quarter, subject to a positive FID and the needed regulatory, legal, and other approvals. At that point, Stonepeak is expected to make available $2 billion as part of its capex contribution.

The Louisiana LNG project is being built in four phases. Phase I includes two trains with a capacity to produce 11 MTPA, while Phase II has one train with a capacity of 5.5 MTPA. In December last year, Bechtel was awarded the contract for phases one and two, which are estimated to cost $900 to $960 per tonne of capacity. Construction is already well under way, ahead of a final investment decision. 

“The project represents a compelling opportunity to invest in a newbuild LNG export facility nearing FID approval with an attractive risk-return profile and best-in-class partners in both Bechtel and Woodside to construct and operate the asset,” said James Wyper, Stonepeak Senior Managing Director and Head of US Private Equity.

He added the significant additional capacity from the Louisiana LNG project will be central in further propelling the status of the U.S as a leading LNG exporter. The country exported 11.9 billion cubic feet per day of LNG in 2024, remaining the world’s largest exporter.

 

World markets are still trying to adjust to the reality of a U.S. market with steep tariffs, and U.S. consumers are weighing the impact of rising prices for foreign goods. Luckily for consumers, those price hikes will likely be tempered by two things: cheaper oil, thanks to an OPEC production hike and a weakening economic outlook; and falling costs for ocean freight, thanks to reduced demand for shipping.

According to UK-based Pantheon Macroeconomics, a drop in oil prices and shipping costs will offset about one quarter of the expected inflation effects of the White House's tariffs. The consultancy's base case forecast is a one percent additional increase to consumer prices due to the tariff schedule.

Spot rates for freight to and from the U.S. have been falling since December, and the core Shanghai-LA route is now half the price that it was at the beginning of the year ($2,700 per FEU today vs. $5,500 in early January). Pantheon predicts that less expensive ocean freight will offset tariff hikes, and will take about 0.15 percent off of a key measurement of inflation, the Personal Consumption Expenditures Price Index.

Energy is also getting cheaper. West Texas Intermediate has fallen from $72 per barrel last week to $61 per barrel on Monday. "The drop [in oil prices] mostly reflects expectations that global demand will wither due to tariffs, but prices also fell after OPEC unexpectedly announced last week a bigger increase in output," explained Pantheon's chief economist Samuel Tombs in a research note. 

The drop in oil prices means that domestic fuel prices will likely drop by about 14 percent, offsetting tariffs and knocking another 0.1 percent off of inflation. 

OPEC's oil production decision comes after repeated lobbying from the White House. President Donald Trump has been asking Saudi Arabia and other OPEC producers to export more oil and lower the global cost of energy since his first week in office, citing a desire to reduce Russian oil revenue. 

"[It's] his clear intention to use energy as leverage over Russia to end the war in Ukraine. That said, lower oil prices will certainly not incentivise US oil producers to 'drill, baby, drill' – particularly in high-cost Alaska," said David Oxley, chief climate and commodities economist at Capital Economics, speaking to BBC after the inauguration.

[By: CMA CGM Group]

The CMA CGM Group, a global player in sea, land, air, and logistics solutions, and Mistral AI, a pioneering company in generative artificial intelligence, today announced a five-year strategic partnership to revolutionize the shipping, logistics, and media sectors through artificial intelligence (AI). Supported by a €100 million investment, this partnership marks a significant milestone in the Group’s ambition to integrate AI across all its activities.

Mistral AI’s top international experts at the heart of CMA CGM
As part of the agreement, a dedicated team of Mistral AI’s world-class international specialists will be based at the CMA CGM Group’s headquarters in Marseille, as well as at Grand Central—the headquarters of CMA Media. Working in close collaboration with CMA CGM’s in-house experts, these AI professionals will deploy and scale AI solutions across shipping and logistics operations while also pioneering new forms of media innovation.

To ensure swift and effective implementation, two dedicated teams will be established:

• Mistral AI Factory: Transforming the Customer Experience and Optimizing Operations

Based at the Group’s headquarters in Marseille, the Mistral AI Factory will bring together Mistral AI specialists and CMA CGM teams to accelerate AI adoption in shipping and logistics. The focus will be on streamlining and personalizing the customer experience through solutions such as automated claims processing, intelligent e-commerce tools, and advanced document management systems.

• AI Media Lab: Innovating in Media Through AI

Located at Grand Central, CMA Media’s headquarters in Marseille, the AI Media Lab will unite Mistral AI experts, journalists, and media professionals to develop cutting-edge tools for the industry. Key initiatives include intelligent content management and an innovative fact-checking system, aimed at enhancing information reliability and addressing the evolving challenges of modern journalism.

This partnership will also empower TANGRAM, CMA CGM’s center of excellence for learning and innovation, by enhancing its AI training programs and equipping employees across the Group to effectively harness these new technologies 

Rodolphe Saadé, Chairman and CEO of CMA CGM Group, says: “This partnership with Mistral AI marks a decisive step in the transformation of CMA CGM through artificial intelligence. Together, we will develop tailored solutions to reinvent our businesses, from maritime transport to logistics and media, with tangible benefits for our customers and our employees. With Mistral AI, we are choosing a French technology leader that combines excellence, digital sovereignty, and a strong sense of responsibility, to build an artificial intelligence that serves both our performance and our values.”

Arthur Mensch, CEO of Mistral AI, adds: “CMA CGM’s commitment to transforming all its activities through generative AI underscores both the Group’s ambition and strategic vision. Our partnership is intended to serve as a model for how AI can be structurally embedded within organizations to enhance Europe’s competitive edge. We are honored by the trust Rodolphe Saadé has placed in our company, our models, and our ability to support this transformation.”

A 100% French partnership for innovation and industrial transformation through AI
From the moment Mistral AI secured its first round of funding in June 2023, the CMA CGM Group took the initiative to invest in this pioneering startup, forging a collaboration with a key global player in generative AI. Through this bold partnership, Mistral AI and CMA CGM will reinforce France’s leading position in AI-driven industrial and technological innovation. This alliance also reflects a long-term commitment to developing fully French solutions, built on robust source verification and information integrity.

In this spirit, CMA CGM and Mistral AI are committed to accelerating the adoption of generative AI (GenAI) across the Group. Building on the rise of the first large language models (LLMs), the emergence of more autonomous “agents” paves the way for new forms of automation and more natural, context-aware interactions. This breakthrough technology is set to fundamentally reshape how teams operate—automating repetitive tasks, boosting productivity, and freeing up time for higher-value, strategic work.

AI as a key driver of the CMA CGM Group’s transformation
This partnership aligns seamlessly with CMA CGM’s broader strategy, which places AI at the heart of its innovation and transformation roadmap. Under the leadership of Rodolphe Saadé, Chairman and CEO, the Group has committed €500 million to AI, forging strategic partnerships—notably with Google and Perplexity—and investing in companies such as PoolSide and Dataiku. The 2023 launch of Kyutai, a nonprofit research lab co-founded by Rodolphe Saadé, further reflects the Group’s commitment to advancing AI.

The CMA CGM Group structures its AI strategy around three key pillars: equipping employees with tailored AI-driven tools, offering an AI-optimized customer experience, and transforming its core activities across shipping, logistics, and media. Through TANGRAM, the Group has the capacity to train up to 3,000 employees each year in these rapidly evolving technologies.

[By: Regent Seven Seas Cruises]

Regent Seven Seas Cruises^®, the world's leading ultra luxury cruise line, has enhanced its all-inclusive onboard offering for the curious traveller, revealing a new guest speaker and entertainment program.

Cultural enthusiasts and history buffs will enjoy expert discourse led by thought leaders and guest speakers renowned in their respective fields such as former ambassadors and diplomats, international correspondents, historians and more. Guests will also be treated to exclusive performances from award-winning comedians, stars of Broadway and London’s West End, and sensations from global TV talent shows such as American Idol and The Voice.

“As a leader in ultra luxury, all-inclusive cruising, engaging enrichment and exciting entertainment is essential to an unrivaled guest experience,” said Jason Montague, Chief Luxury Officer of Regent Seven Seas Cruises. “Our amazing teams are consistently looking to enhance our discerning guests’ vacation, and with a fresh and innovative new program, we are looking forward to elevating the standard of ultra-luxury cruising, all included in the price of the sailing.”

Led by Daniel Bartrope, Director of Entertainment Operations and Enrichment for Regent Seven Seas Cruises, the refreshed guest speaker and performer lineup follows the recent announcement of brand new production shows across the Regent fleet.

“The Regent enrichment and entertainment experience is as spellbinding as it is comprehensive - we put as much care and attention into our onboard programming as we do our incredible itineraries and extensive shore excursion menu,” says Daniel Bartrope, Director of Entertainment Operations and Enrichment, Regent Seven Seas Cruises. “From former ambassadors and rocket scientists to cultural historians and talented stars who have tread the boards of the West End and Broadway, this line up perfectly complements the already unrivaled standard of entertainment onboard The World’s Most Luxurious Fleet.”

The line-up of Regent’s guest speakers and performers features exciting names across the fleet, and all lectures and performances are complimentary to watch as part of Regent’s uniquely comprehensive all-inclusive cruise fare.

Selection of New Guest Speakers

William Jacob Rothschild, Rocket Scientist

Seven Seas Explorer^®
North Pacific Crossing
17 September, 2025 - 19 nights 

Seven Seas Splendor^®
Auburn Sunsets, Turquoise Seas
2 November, 2025 - 15 nights 

Rocket scientist Lt. Col. Bill Rothschild has 45 years of experience in aerospace, including 20 years as an officer in the US Air Force. His lectures are filled with interesting, down to earth stories spiced with tantalising insider information about the real moon race, what’s happening in space now, and an intriguing look into the future.

Jeana Rogers, Cultural Historian

Seven Seas Mariner^®
Northern Sites, Coastal Delights
19 September, 2025 - 12 nights

Magic in the Mediterranean
1 October, 2025 - 12 nights

Heritage Sites and Greek Isles
13 October, 2025 - 9 nights

Spotlight on Wine with Honig Winery
22 October, 2025 - 12 nights

Seven Seas Grandeur™
Rhythm of Paradise
11 December, 2025 – 11 nights

Merriment & Joy in the Tropics
22 December, 2025 – 12 nights

Jeana Rogers is a cultural historian, specialising in the history and customs of European cultures. Combining local music, her photography and knowledge of the region, she motivates cruise guests to understand the essence of Europe, including the geography, history, culture, cuisine, what not to miss and more.

David Litt, Former Ambassador

Seven Seas Navigator^®
Norwegian Summer Sojourn
9 June, 2025 - 18 nights 

Seven Seas Voyager^®
Wines of Europe
2 September, 2025 - 12 nights 

Flamenco & Jaleo
12 September, 2025 - 10 nights
 
Ambassador David C. Litt retired from the US Foreign Service in 2008 having served for 34 years as a career U.S. diplomat, specialising in the Middle East and Africa. David was the US Ambassador to the United Arab Emirates and later served as political advisor to US Special Operations Command, focusing on all regions of the world. 

Selection of New Guest Entertainers

West End Star, Christine Allado

Seven Seas Splendor
Coast to Coast Italy
2 July, 2025 - 10 nights

Christine Allado is a multi-awarded, Grammy nominated Artist, international star of screen and stage, and a West End leading lady, best known for her role in the Olivier Award winning Original London cast of “Hamilton" as Peggy and Maria Reynolds.

West End Star, Paul Baker

Seven Seas Grandeur
Fabled Forests & Fjords
27 July, 2025 - 18 nights

Olivier Award-Winner Paul Baker has earned the reputation of being one of the exceptional talents in British Musical Theatre with critical acclaim, as one of the finest actors and singers of his generation. He has starred in many famous shows such as "Chicago" and "Les Misérables”. 

Broadway Star, Andrea Ross

Seven Seas Splendor
Auburn Sunsets, Turquoise Seas
2 November, 2025 - 18 nights 
Andrea Ross is an internationally recognised vocalist and Broadway performer having starred in two Broadway National Tours; Andrew Lloyd Webber's Whistle Down the Wind and Rodgers and Hammerstein's The Sound of Music. 

 

[By Simon Bullock, Christiaan De Beukelaer and Tristan Smith]

You’re probably reading this article on a device assembled in Asia, using materials shipped there from all around the world. After it was made, your phone or laptop most likely travelled to your country on a huge ship powered by one of the world’s largest diesel engines, one of thousands plying the world’s oceans. All this maritime activity adds up: international shipping burns over 200 million tonnes of fossil fuels a year.

The sector is trying to clean up its act. Its 2023 global climate strategy set a “strive” ambition of 30% cuts in greenhouse gas emissions by 2030, relative to 2008 emissions and 80% by 2040. That’s close to a level of ambition that can deliver on the Paris climate agreement, but this target urgently needs policies to make it happen. This is also urgent: 2030 is only five years away.

The technology to deliver a rapid transition exists. Wind propulsion technology – yes, sails – can be fitted to existing ships, and much of the sector could soon switch to zero-emission fuels if they were seen as a good investment.

That said, the transition needs to be fast and will be costly. This raises questions about who is to foot the bill.

That’s the backdrop for a pivotal meeting this week in London at the International Maritime Organization (IMO). The IMO is the United Nations’ agency, made up of 175 nation states, charged with coordinating a response on shipping’s climate pollution. At this meeting, nations will take a series of decisions that will have a profound impact on whether the sector makes a rapid transition away from fossil fuels, or if it continues to limp along on its current high-carbon course.

There are two crucial and interlinked decisions to be taken, and at the moment the proposals range from strong to exceptionally weak. Outcomes could go either way.

The efficiency of shipping hasn’t got much attention, even though it’s an important part of reducing emissions. One key policy is the Carbon Intensity Indicator, which measures how much carbon is emitted per tonne of cargo for every mile travelled. The IMO’s current strategy requires improving this efficiency by 40% by 2030, compared to 2008 levels.

Annual fuel oil consumption (by ship type):

How different fuels were used by different ship types (2023 data). IMO Future Fuels, CC BY-NC-SA

But here’s the problem: global demand for shipping is expected to grow by around 60% in that same time. So even with a 40% efficiency boost, total emissions from shipping could stay the same – or even go up – because so much more cargo will be moved.

Despite this, many countries haven’t updated their policies to reflect this growing demand or to align with the IMO’s updated “30% cuts by 2030” target.

Some countries, including Palau – a Pacific island nation vulnerable to climate change – and the UK, have pushed for stronger action. But there remains a long way to go before the world agrees on an ambitious path forward.

Green energy

The more hotly debated issue is around a fiendishly complicated set of “mid-term measures”. A key part of this is creating a “global fuel standard” – essentially, targets for how much “zero emission” (or “green”) fuel ships must use and by when.

These rules would come with penalties or costs for using polluting fuels, which would effectively put a price on greenhouse gas emissions. Experts have long agreed that putting a price on shipping pollution is the most effective way to encourage cleaner and more efficient practices. But despite nearly 20 years of discussions, countries still haven’t agreed how to do this.

Decisions are further complicated by wrangles over how to fairly distribute the revenues from these penalties.

The good news is that the world is less than a week away from a decision which will put a price on shipping pollution in some form. The bad news is that proposals on the table could easily deliver a weak, uncertain price signal which doesn’t push the industry to invest in more green solutions. And the fuel standard itself might fall short of the ambitious climate targets set in 2023.

Until now, talks on improving shipping efficiency and on pricing polluting fuels have happened separately. A big task at the IMO summit in London is to integrate the two into one coordinated plan.

From a climate perspective, these policies should be judged by whether they will work together to cut shipping emissions by 30% by 2030 (the IMO’s current target).

As things stand, that outcome is still possible – but is now an uphill battle. Agreement this week is crucial and countries will show their true colours. If they can’t agree to agree more ambitious policies it will undermine the IMO’s ability to regulate shipping emissions.

Historically, the IMO tends to take its biggest decisions in the last hours of Thursday in week-long negotiations. Both ambitious and more cautious countries have a lot on the line, as the measure adopted will be legally binding for all of them.

A positive result depends on whether powerful groups such as the European Union line up to support ambitious measures, as as proposed by African, Caribbean, Central American and Pacific countries as well as the UK.

Although countries have agreed on climate targets for shipping, some still refuse to support the policies needed to actually phase out fossil fuels fast enough. That stance much change. If done right, IMO negotiations this week could be a turning point – not just for shipping, but for renewable energy and climate action worldwide.

Simon Bullock is a Research Associate in Shipping and Climate Change, University of Manchester.

Christiaan De Beukelaer is a Senior Lecturer in Culture & Climate, The University of Melbourne.

Tristan Smith is a Reader in Energy and Transport, UCL.

This article appears courtesy of The Conversation and may be found in its original form here. 

 

The U.S. Coast Guard has released the results of an investigation into the death of an engineer aboard the OSV Red Stag in Port Fourchon, Louisiana in 2023. The crewmember was electrocuted after opening a high voltage electrical panel without authorization. 

On the afternoon of October 13, 2023, Red Stag was moored alongside at the Adriatic Marine dock in Port Fourchon, and was preparing for its next charter. At about 2000 hours, the vessel's first engineer adjusted ballast by activating the vessel's mud pump system, turning it on and off using the emergency stop button on the aft deck rather than the control panel belowdecks. When finished, he left the e-stop in the "off" position. This is normal practice, according to the Coast Guard. 

At 2330 hours, the crew conducted a watch change. The oncoming engineering watchstander, the "unqualified engineer," was tasked with cleaning the engine room. 

At about 0530 hours, the unqualified engineer asked the deckhand where he could find a voltage meter. The deckhand did not know, and didn't know why his crewmate needed it. This was the last time that anyone saw the unqualified engineer alive. 

Sometime thereafter, the unqualified engineer opened up the 480-volt electrical panel for the mud pump system. His body was found in front of the panel at about 0640, and his fingerprints were later found on a high voltage conductor inside the open panel door. 

The master called emergency medical services on his cell, and the crew started CPR. The man could not be revived and was pronounced dead at 0740. His death was ruled accidental by the county coroner.

According to the Coast Guard, the unqualified engineer was training for his engineering license but was not qualified to access and work on the 480-volt panel for the mud pump. It is unknown why he opened the panel, but the Coast Guard suspects that he was unaware that the pump e-stop on deck was turned off. He then bypassed company safety policies and attempted to troubleshoot it himself. 

"It is reasonable to assume that if the Unqualified Engineer was more experienced with the operation of the mud pump system, he may have verified the status of the pump’s emergency stop and de-activated it, preventing him from having to open the 480 volt panel and prevented the incident from occurring," the Coast Guard concluded.

The investigators also noted that Red Stag lacked some form of an indicator to show that the e-stop was activated; if an indicator had been present, the engineer might have realized that the system was already working as designed. Likewise, a lock on the cabinet would have prevented unauthorized access. 

The operating company initiated a fleetwide safety stand-down after the fatality to review policies with all crewmembers. The Coast Guard found no regulatory breaches, and made no additional recommendations.