Tag Archives: container shipping

How Ultra-Large Container Ships are Transforming West Africa

Ultra-large container vessels are coming to West Africa. There is pent-up demand for goods in West Africa and throughout the continent. That’s because African economies are slowly improving, creating more consumers and businesses with money to spend.

Infrastructure to handle the ULCVs has been in short supply, but after considerable investment over the past few years, the giants can now land in numerous African ports.

With the impending container charges imposed by the US on containers arriving at its shores, more carriers and shippers are looking for ways to avoid landing in the US. Increasing West African trade is a natural way to use that capacity.

MSC is a major player in this trade. Their situation is helped by the fact that MSC has partial interests in port terminals in key West African locations, as the table below from the article shows. Tema is located in Ghana, Lome in Nigeria, Abidjan in Cote d’Ivoire, and Kribi in Cameroon. MSC has investments in Africa Global Logistics, which operates terminals at three of these ports; and a share in TIL, which has a terminal in Lome.

It’s good to see West Africa getting better access to the world’s goods. Trade improves the lives of both partners, exporter and importer.

Gavin van Marle  04/06/2025

https://theloadstar.com/asia-west-africa-ulcv-deployment-opens-new-markets-for-carriers

Is Ammonia cheapest long-term for IMO carbon rules?

University College London has published a new study considering in detail how shipowners can comply with the IMO rules for carbon emission compliance. It’s very detailed and takes into account not only the different technologies available, such as methanol and LNG, but also the timing of implementing the various regulations. One has to consider all these factors over the 25 or so years of the lifetime of a ship.

Granted, new technologies and availability of different fuel choices can change from what we can see now, but this impartial study favors ammonia-powered ships over the longer time frame. They suggest dual-fuel ammonia ships might be the best bet for investors in new shipping.

“Although there are significant complexities and uncertainties in what was agreed [at IMO MEPC 83] in April, even conservative projections of how remaining policy details will be finalised results in a ‘no brainer’ choice for shipowners in dual fuel ammonia,” said Dr. Tristan Smith, Professor of Energy and Transport at the UCL Energy Institute. 

The report is available here.

This figure from the report indicates when different fuel choices become cheapest in terms of abatement cost. It seems that e-ammonia never outcompetes blue ammonia before 2050. And LNG remains viable for quite a while, especially with integrated carbon capture.

There are a lot of assumptions in any such study, and the IMO could change the rules in the meantime. But shipowners should be thinking hard about ammonia, and so should international bunker fuel providers.

Published May 29, 2025 9:08 PM by The Maritime Executive

https://www.maritime-executive.com/article/ucl-ammonia-is-the-cheapest-compliance-option-for-new-imo-carbon-rules

Update 6/5/2025: Fortescue is jumping on the dual-fuel ammonia bandwagon, and has some not-so-polite comments about others in shipping sticking with LNG.

Sam Chambers June 5, 2025

https://splash247.com/fortescues-mission-to-champion-ammonia-goes-global/

Detention and Demurrage claims are rolling in

Samsung Electronics of America (SEA) is a major user of container shipping. They have decided to fight back against excessive and frequently undocumented Detention and Demurrage (D&D) bills from carriers. This article spells out the claims.

Overall, Samsung thinks ocean carriers were selling door-to-door service and couldn’t deliver it. So they started billing customers to recover their costs.

The Federal Maritime Commission (FMC) has recently established rules about billing for such services, making the billing more transparent and requiring documentation for each charge. This will help shoppers, who are frequently baffled by the charges.

It’s essential to close down the practice of billing without thorough documentation. Seagate should have lots of winning arguments in these cases. There were so many temporary closures, changing windows for pickup and delivery, and other delays not caused by the shipper during the COVID era and after, that most D&D charges were probably due to slipups out of the shipper’s control, and perhaps even the carrier’s control. Carriers should not be entitled to profit from these.

Seatrade logo

Nick Savvides | Jun 17, 2024

Samsung Electronics America fires D&D claims at carriers