Carbon Capture and Storage (CCS), a promising decarbonization method, requires a value chain for CO2 transport and storage to serve estimated future demands. DNV’s Mathias Sørhaug surveys the status, challenges and opportunities of CO2 shipping within the CCS value chain featuring key insights from energy company Equinor and Athens-based shipowner and mid-stream service company ECOLOG.

The International Energy Agency (IEA) estimates in its Net-Zero Roadmap that to achieve the 1.5°C global warming limit set by the Paris Agreement, we need to capture 7.6 billion tons of CO2 annually by 2050. In its July 2023 update, the Global CCS Institute (GCCSI) reports that current CCS projects in operation can capture and store about 50 megatons of CO2 annually. This implies that from 2023 to 2050, CCS capacity must increase at least 100 times to capture the projected 7.6 billion tons of CO2.

CCS emerges as a crucial technology in Europe’s green shift

In Europe, CCS is listed as one of the key green shift technologies in the Net-Zero Industry Act of March 2023 and many projects have received innovation funding. The GCCSI highlights a 48% increase in CO2 capture projects just in the 12 months from 2022 to 2023, which is a very positive indicator for the future. However, very few…

Supply chains face constant disruptions like the Baltimore bridge collapse. Despite challenges, logistics adapt, seen in rerouting around the Red Sea disruptions. Political risks and regulatory uncertainties persist, impacting global trade. Investments in resilience, reshoring, and tech adoption rise amid declining inventories and supplier diversification.

Supply chains face constant disruptions like the Baltimore bridge collapse. Despite challenges, logistics adapt, seen in rerouting around the Red Sea disruptions. Political risks and regulatory uncertainties persist, impacting global trade. Investments in resilience, reshoring, and tech adoption rise amid declining inventories and supplier diversification.

Logistics networks hold pattern in a new normal

A sign that logistics networks have “healed” around the latest fracture can be seen in most firms not experiencing delays, but rather expecting an inflationary effect. The reduced risk of delays can be seen in the S&P Global Purchasing Managers’ Index for manufacturing supplier delivery times, which were better in March than in the fourth quarter in the Eurozone.

It may be too soon to judge the final impact of the canal disruptions

In the 2015 to 2019 period, Chinese exports of peak-season products (including toys)…

The tanker market is bound to be further impacted by the escalation of the Middle East tensions. In its latest weekly report, shipbroker Xclusiv said that “news of an Israeli strike on Iranian territory, potentially escalating tensions in the Middle East, sent shockwaves through global markets. Geopolitical uncertainties loom large, capable of swiftly altering the trajectories of commodities such as oil, and reigniting concerns over inflation. Although oil prices took a rollercoaster ride on Friday, with WTI climbing to USD 86/barrel, reports suggested the attack was less extensive than initially believed, with Iran’s key nuclear facilities seemingly untouched. Additionally, Iran downplayed the attack and any possibility of immediate retaliation. This reassessment of the situation caused oil prices to erase earlier gains, with WTI closing the week at USD 82/barrel”.

Source: Xclusiv

According to the shipbroker, “rising tensions in the Middle East and stricter sanctions against Iran could impact the supply of LPG, posing risks to Iranian exports. Concurrently, ongoing cuts by OPEC+ are further limiting outflows from the region. Iran, a significant player in the LPG market, saw exports of around 1,000,000 metric tons in March, with April’s volumes currently standing…

According to the Capesize C3 South Atlantic overview provided in the image below, during the third week of April, there was a notable 4% decrease in ballast vessels bound for the South Atlantic, coupled with a significant surge of 72 vessels waiting to load. Analysis of forthcoming arrivals in the South Atlantic over the next 40 days reveals a discernible uptick in vessel supply, both laden and unladen, within the 10 to 20-day timeframe. However, beyond the 30-day mark, there appears to be a pronounced increase in the availability of ballast vessels.

Gross supply criteria for the C3 route:

1. Ensure that the Estimated Arrival Time (ETA) to Tubarao is under 40 days.

2. If a ship is heading to the South Atlantic, it’s automatically counted.

3. Include Ballast vessels opening in Singapore/Malaysia, Argentina & Uruguay Thailand/Vietnam, East Coast India, and East Africa. If the forecasted load area is South Atlantic or unknown.

4. Include laden vessels opening on the Singapore/Malaysia, Pakistan/West Coast India, and Atlantic or unknown.

5. Exclude vessels with AIS destinations in Australia/ Indonesia/ South Atlantic: Brazil, Africa, Atlantic Coast, South Africa.

Net supply criteria:

Including Available Ballast, Available Laden, Waiting to Discharge and Discharging…

“In the first quarter of 2024, global iron ore shipments rose 3.8% y/y on expectation of strong Chinese steel production which, however, failed to materialise. Iron ore supply has grown faster than Chinese demand which could lead to weaker shipments ahead,” says Filipe Gouveia, Shipping Analyst at BIMCO.

During the start of the year, Brazilian iron ore shipments typically slow down due to mining disruptions caused by heavy rainfall. However, this year conditions were better and Vale, a leading miner, increased output by 6% y/y, boosting shipments from Brazil.

In China, expectations of stronger steel production following the Chinese New Year led to strong iron ore prices. However, despite these expectations, steel production weakened 3.1% y/y while both iron ore shipments and domestic mining rose. Consequently, iron ore inventories in Chinese ports increased and are now at the highest levels since April 2022.

73.9% of the world’s seaborne iron ore shipments are bound for China as the country relies greatly on ore imports to produce steel.

“The capesize segment greatly benefited from this increase in shipments, both due to the higher volume and the above average sailing distances between Brazil and China. This helped the Baltic Exchange’s Capesize 5TC index to…

LNG shipping is undergoing major shifts since the start of 2024. In its latest weekly report, shipbroker Intermodal said that “during Q1 of 2024, the LNG shipping market experienced major disruptions and shifts that significantly altered global trade routes and market fundamentals. The year commenced with logistical challenges, particularly highlighted by persistently low water levels in the Panama Canal, which constrained LNG transits. Compounding these challenges, LNG carrier movements through the Suez Canal have been completely halted since mid-January, necessitating a strategic redirection of shipments along alternative routes”.

According to Intermodal’s Research Analyst, Ms. Chara Georgousi, “the demand for LNG in Asia has remained robust, fueled by competitive pricing and strategic stock-building. This pronounced rise in demand within Asia stands in stark contrast to the more subdued scenario witnessed in Europe, where LNG imports have been significantly impacted by internal market dynamics and alternative energy sources. Specifically, NE Asia experienced a 4.02% increase in LNG imports during Q1 of 2024 compared to the same period in 2023, with China notably leading this uptick with a 23.44% rise. SE Asia also saw a significant boost, with imports surging by…

IBIA – The International Bunker Industry Association and BIMCO have signed a Memorandum of Understanding (MoU) to collaborate on some of the monumental challenges and opportunities within the areas of bunker, marine energy and maritime sectors and help facilitate shipping’s decarbonisation efforts.

The parties have agreed to leverage their respective expertise and resources to develop innovative solutions and initiatives to facilitate the transition towards cleaner fuels and efficient and sustainable shipping practices. The partnership MOU will focus on addressing the following key areas:

Research and Development: Collaborate on research initiatives, studies, and projects relevant to the bunker/marine energy industry and maritime sector.

Information Sharing: Share relevant information, publications, and data that may be beneficial to the members of both organisations.

Training and Education: Explore opportunities for joint training programs, seminars, and educational initiatives to enhance the knowledge and skills of professionals in the maritime and bunker/marine energy industry.

Influence: Work together on efforts to address common issues and challenges faced by the industry.

Commenting on the MoU, Alexander Prokopakis, Executive Director of IBIA, stated:

“This…

New requirements will come into force from 29 April at the ports of Melbourne and Geelong for vessels equipped with a mechanical or software-based engine or shaft power limiter in accordance with IMO requirements.

As stated in the Ports Victoria Operational Instruction (OI) No.01-2024, the IMO has adopted measures under the MARPOL Convention requiring certain international ship types to take action to reduce their carbon intensity.

To comply with those requirements, some vessel operators have installed a mechanical or software-based engine or shaft power limiter. Some limiters may have the unintended consequence of degrading a vessel’s manoeuvrability at critical times when navigating in a confined waterway.

Risks associated with transiting the Fairway through Port Phillip Heads, South Channel and approaches to port of Geelong and Melbourne may demand access to the vessel’s full power capability.

The below requirements apply to any vessel intending to transit the port waters of the port of Melbourne and port of Geelong.

Engine power or shaft power limiter requirements:

1. Any vessel equipped with a mechanical or software-based engine or shaft power limiter will disable the device prior to pilot boarding, or;
2. Any vessel equipped with a mechanical or software-based engine…