Tag Archives: Shipping

Port call optimisation reduces greenhouse gas emissions in ports

Drewry is well-known for its expertise in maritime-related matters. In a recent market opinion piece, they suggest that maritime emissions can be reduced rather simply, with port call optimization. They mean to reduce the time ships sit near a port waiting for their berth to open up.

Some ports have been successful with appointment windows. But the Drewry approach includes slow steaming to hit the port berthing window close to the time, instead of standing offshore running engines and emitting pollution. The slow steaming itself is a tested measure for reducing emissions, though it doesn’t eliminate them. The two efforts combined could save a lot of pollution, and now in some places such as the EU, emission charges based on actual fuel use numbers.

Eliminating waste in a system, such as waiting time waste, is a tried and true operations management or lean technique. But in the case of maritime shipping and ports, a lot of coordination is required. Systems need to be in place to provide accurate information about ocean carrier voyage schedules. Sailing times between ports can vary a lot, because of factors such as weather and route adjustments.

But also, both ocean carriers and ports need to share information and cooperate on setting berthing schedules. A late loading in Shanghai, for instance, will affect the projected arrival time in Long Beach. the two ports and the carrier will need to share up-to-the-minute (or hour) information about progress. Will they do it? It will require a level of interaction never before seen.

I think that ultimately, ports and carriers will be driven to this by the gains that can be made. but I think it will be a long time coming.

Update: Port optimization can actually prevent deaths. Hong Kong University of Science and Technology (HKUST) has recently studied the number of deaths that could be prevented by port waiting time improvement.

Sam Chambers June 27, 2024

Port efficiency gains can save 10,000 premature deaths annually

10 Jun 2024

https://www.drewry.co.uk/maritime-research-opinion-browser/maritime-research-opinions/port-call-optimisation-is-key-to-reducing-greenhouse-gas-emissions-in-ports

How China Uses Shipping for Surveillance and Control

Beijing’s global maritime operations double as intelligence-gathering outposts.

I was not aware that Chinese interests have installed operating software at quite a few ports around the world. Coupled with the Chinese Government’s mandate to share all information with the Chinese Government, we have an ideal spying network. Port traffic is a clear indication of material movements, and could give insights useful for military action.

The article in Foreign Policy, clearly labeled ‘argument’, suggests that the US government examine the risks and take actions to thwart the use of port information. It’s not unlike the US Government stance on Huawei components for cell phones. That fear led to a ban on Huawei selling components in the US.

Europe has a problem too. This map from Alphaliner shows which ports in Europe have Chinese interests.

Of course, they aren’t controlling except at Piraeus in Greece and Zeebrugge in the Netherlands. And 23 of them arise from state-owned Chinese interests, China Overseas Shipping Company (COSCO) and Terminal Link, a joint venture with liner company CMA CGM.

The EU adopted new rules last December that call for monitoring of potential threats posed by Foreign Direct Investment (FDI) in European assets.

By Elaine Dezenski, a senior director and the head of the Center on Economic and Financial Power at the Foundation for Defense of Democracies, and David Rader, a senior fellow at the Foundation for Defense of Democracies. SEPTEMBER 20, 2023, 4:46 AM

How China Uses Shipping for Surveillance and Control

By Gavin van Marle 21/09/2023

Are China’s ports and shipping companies being used to spy on the world?

Sam Chambers September 20, 2023

China’s European port interests mapped

Corporate governance in shipping

This article features an interview with Michael Webber, who has been tracking corporate governance in ocean shipping firms since 2016. He produces an annual corporate governance scorecard for shipping, now at his own firm, Michael Webber Research and Advisory.

One significant issue in shipping is the constantly changing mosaic of companies. Firms are constantly merging in companies and creating new spinoff firms, some containing only a single ship. It’s a chore to keep track of it all, let alone try to rate how well the firms are looking after shareholders. The ratings Michael provides are simply to inform readers of the practices the firms engage in. This helps investors and traders to understand whether the firm is practicing good corporate governance or engaging in bad practices.

Webber claims that companies that score low on his rating have trouble raising capital using equity. He thinks investors are becoming more selective. It’s not only affecting stocks on the market; IPOS are failing due to governance issues as well.

There are a lot of related party transactions in shipping. Some benefit public investors and some don’t. Because no one was looking very hard in the past, it can be complicated for an older firm, say from the 2000’s, to unwind old structures that were not examples of good governance. Some firms have been successful doing this, but Webber says shareholders are at an informational disadvantage when these transactions are proposed. His rankings try to shed light on the corporate governance of the actors, for the benefit of the shareholders.

Webber thinks governance is improving overall, and shipping has improved its image on Wall Street. His ratings help public shipping companies find opportunities to conform to best practices in governance, and that improves the image and reality.

The scorecard rankings for 2023 are shown below.

Image of Webber corporate governance ratings
(Source: Chart: Webber Research & Advisory)

The stock symbols of each firm are given. Webber has marked the firms that make no carbon disclosures.

Greg Miller· Thursday, July 27, 2023

Corporate governance in shipping: Who’s been naughty or nice?

Update: The University of Plymouth and the National and Kapodistrian University of Greece have announced a new ESG index to be revealed September 11th. It will be interesting to compare their work against Michael Webber’s.

Sam Chambers July 31, 2023

Maritime gets an ESG index