Jul 07
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Shipping set for €3 billion-plus 2024 EU ETS bill

By | 2023 Newsletter week 27 | No Comments

The European Union’s Monitoring, Reporting and Verification (EU MRV) dataset for shipping’s European CO2 emissions for the year 2022 has been published, with the data highlighting some significant year-on-year changes from 2021 despite the shipping industry as a whole showing a modest reduction in emissions.

The EU MRV regulation requires all ships exceeding 5,000 gross tons to collect and report data on CO2 emissions released to and from EU and EEA ports and will serve as the basis for shipping’s inclusion in the EU Emissions Trading System (ETS) from 1 January 2024.

Total ETS-applicable emissions for the maritime industry amounted to 83.4 million metric tonnes of CO2 equivalent (tCO2e) in 2022, a modest decrease of 0.22% from 2021. At the current market value of €90 per emissions allowance (EUA), shipping emissions carried a total worth of €7.5 billion for the year.

Taking into account the ETS phase-in period covering 40% of emissions in 2024, 70% in 2025 and 100% in 2026, and utilizing the forward curve in EUAs, estimates indicate that the shipping industry could be liable for €3.1 billion in 2024, €5.7 billion in 2025 and €8.4 billion in 2026.

The data showed emissions decreases across multiple shipping segments, including tankers, container ships, general cargo ships, reefers, Ro-Ros and chemical tankers. The container sector showed the largest reduction, however, passenger ships and LNG carriers logged substantial increases.

“The projected liabilities emphasize the importance of shipping companies preparing for their entry into the ETS. We have been onboarding customers from across shipping’s value chain in order to have them fully prepared by the start of next year. We encourage more shipping companies to do the same,” said Hugo Wilson, Director of Hecla Emissions Management. Hecla Emissions Management was established by Wilhelmsen Ship Management (WSM) and Affinity Shipping LLP in 2022 to assist shipping clients with each of the compliance obligations associated with EU ETS participation.

Jul 07
0

Baleària plans to stop emitting almost 80,000 tonnes of CO2 by the end of the year thanks to the use of LNG

By | 2023 Newsletter week 27 | No Comments

In recent weeks, Baleària has increased the consumption of natural gas on its 10 dual-fuel engined ships to 100%.

The shipping company estimates that this will allow it to stop emitting around 80,000 tonnes of CO2 into the atmosphere between June 1st and the end of the year.

In October 2021, in order to avoid becoming less competitive, the shipping company continued to use this cleaner energy only on port entries, approaches and stays.

It should be noted that, despite the temporary reduction in the use of gas due to the adverse circumstances, Baleària maintained its commitment to this fuel, which enables CO2 emissions to be reduced by up to 30%.

As a result, Baleària has added two more gas-powered vessels to its fleet, having completed the retrofit of the HEDY LAMARR in 2022, and chartering the RUSADIR, a RoPax equipped with an electric propulsion system powered by dual natural gas engines, this spring.

Baleària considers LNG to be the cleanest and most mature currently available for maritime transport. Furthermore, their ships are technologically prepared to consume either 100% biomethane or synthetic methane, as well as green hydrogen mixtures of up to 25%, although these CO2-neutral renewable energies are unfeasible at the moment due to their cost and availability.

Jul 07
0

Fast ferry MARGARITA SALAS to be launched in autumn

By | 2023 Newsletter week 27 | No Comments

The Armon shipyard in Gijón has already built 90% of the aluminium structure for the Margarita Salas, Baleària’s second dual-engined fast ferry for passengers and cargo. The ship is scheduled to be launched this autumn and to come into operation next spring on the Barcelona-Ciutadella-Alcúdia route.

This new ship will have the same characteristics as its twin, the ELEANOR ROOSEVELT (123 metres long, 28 metres wide and the capacity to transport 1,200 passengers and 400 vehicles), but it will have a second deck with a lounge seating area at the bow and will double the surface area of the stern terrace with an outdoor bar service.

In addition, MARGARITA SALAS will be 10% more powerful than its sister ship, ELEANOR ROOSEVELT.

Jul 07
0

AFIR and FuelEU Maritime: ESPO calls for cooperation and flexibility in the roll-out of onshore power supply to ensure smooth implementation of the legislation

By | 2023 Newsletter week 27 | No Comments

On Monday 10 July, the European Parliament will discuss in Strasbourg the final agreement on both the Regulation on the deployment of Alternative Fuel Infrastructure (‘AFIR’) – which sets the framework for the deployment of onshore power supply (OPS) in ports – and the Regulation on the use of renewable and low-carbon fuels in maritime transport and amending Directive 2009/16/EC (‘FuelEU Maritime’) – which regulates the use of OPS by ships in EU ports. Both agreements will be voted on Wednesday 12 July. Once the Council has then formalised its agreement with the text, both AFIR and FuelEU Maritime are expected to enter into force shortly after.

The European Sea Ports Organisation (ESPO) welcomes the final agreements, allowing ports, terminals and shipping lines to prepare for their implementation.

“The final adoption of the AFIR allows ports and all port stakeholders who are to play a role in the deployment of OPS to effectively prepare for compliance with the new rules. The development and use of new fuels and energy solutions, such as onshore power supply, is the most important pillar of greening the shipping sector. For ESPO, it is important that for the first time, the strict framework for deployment of OPS is accompanied by an obligation to use the infrastructure. The emissions at berth will only go down if the OPS installations are properly used. We now have to take the legislation to the quay and sit together with all relevant stakeholders including shipping lines and terminal operators to make quick progress ahead of 2030.”, says ESPO Secretary General Isabelle Ryckbost.

To assist their members in the process of deploying and using OPS in Europe’s ports, ESPO has already been organising different workshops. During these workshops different challenges relating to deployment and use of OPS have already been identified.

Continue to read on the ESPO website

Jun 30
0

Scandlines generated higher revenue and results after car and shopping traffic rebounded in 2022

By | 2023 Newsletter week 26 | No Comments

 Scandlines continued to make headway in 2022 as the impact of COVID-19 eased and travel restrictions were lifted early in the year.

Traffic volume grew significantly driven by a rebound in leisure and shopping traffic as well as continued strong traction in the freight business.

Against this backdrop, Scandlines increased revenue (+42%) and earnings (+101%) and continued to improve its competitive offering with long-term investments in fleet and facilities.

+65% Cars

+68% Pax

+5% Freight

+49% Revenue from BorderShops (even though shopping activity remained significantly lower than before the outbreak of COVID-19. Factors such as increased fuel prices, general inflation pressure and a weak SEK play here a role here).

Outlook

Modest growth is expected in leisure and shopping traffic volumes, which are seen to be somewhat impacted by a general economic slowdown.

Bus travel is expected to gradually return to previous levels.

The steadily growing freight traffic volume is expected to continue the positive trajectory – however at a modest level.

Management expects revenue and profits to increase moderately in 2023 subject to the level of economic slowdown.

The full annual report and the sustainability report for Scandlines Infrastructure ApS can be downloaded here.

Jun 30
0

Surprise: Seajets submitted a proposal for the acquisition of ANEK Lines

By | 2023 Newsletter week 26 | No Comments

In the last few days, a series of events have been taking place within the Greek Ferry Scene concerning the unexpected Seajets’ proposal for the acquisition of Anek Lines.

  • On June 16, 2023, three companies (Seajets, Kiara Shipping and Golden Step Shipping Ltd) submitted a proposal to Anek Lines’ Creditors and Shareholders (that represent 57,70% of the company’s total share capital), regarding the acquisition of ANEK’s shares and loans under specific conditions. That proposal included:
  • The immediate payment of EUR 82 million for the acquisition of all the Company’s loan obligations with the provision of collateral.
  • Acquisition of all the shares of the main shareholders for the price of € 0,2220 per share.
  • Piraeus Bank loan guarantee.
  • On June 23, 2023, Anek Lines issued a press release (in Greek) to the Athens Stock Market informing officially the Market Capital Committee as well as the investors about that proposal. Also, told that Anek Lines’ Board of Directors addressed the proposal to the Company’s Shareholders and Creditors, to be evaluated by them. The Company pledged to make announcements to inform the investing public if the relevant legal conditions are met.
  • On June 27, 2023, Anek Lines issued a new press release (in Greek), where Piraeus Bank rejected Seajets’ proposal.
  • Piraeus Bank, as a representative of Bond Creditors, sent a letter of refusal to the proposing companies on June 26, 2023. That letter was also sent to the Competition Committee as well as to the Board of Directors of ANEK Lines.
  • In it, the Piraeus Bank explained that:
  • The proposal comes at the wrong time, as the ongoing merger of ANEK Lines with Attica Group is already known to the public since September 2022.
  • The Bank’s consultant analysis judged that the submitted proposal is inferior to the current agreement under implementation between Attica Group and ANEK Lines in terms of recoverable value. At the same time, that proposal exhibits a significantly greater risk, so it is not a viable alternative for ANEK Lines.
  • There is uncertainty in the financing of the proposed price, as well as in the condition of carrying out due diligence, a process which has already been completed for the Attica Group proposal.
  • The proposal does not consider ANEK Line’s cash flow needs towards third-party creditors, nor does it include planning for the smooth transition and uninterrupted operation of the company due to the potential termination of the ANEK – Superfast joint venture (operational risk).
  • Therefore, the proposal does not meet the necessary criteria to constitute an acceptable credit and business risk and cannot be accepted.
  • Also, the VARMIN Shareholder (Vardinoyannis Family) with a letter to the Board of Directors of Anek Lines stated that: “We do not accept the specific proposal due to the price offered and its structure. We consider that the existing agreement with Attica Group for the merger of ANEK Lines, which is already in the approval stage is the only immediate solution, which ensures the company’s rescue”.

Greek sources say that Seajets is preparing a counteroffer.

See also our news from 22 September 2022: https://ferryshippingnews.com/attica-group-announced-the-merger-with-anek-lines-to-the-athens-stock-market/

Jun 30
0

Scottish Government: opportunities for a modern and sustainable ferry service

By | 2023 Newsletter week 26 | No Comments

The Net Zero, Energy and Transport Committee’s [what is this?] inquiry into a Modern and Sustainable Ferry Service for Scotland sought to identify the current and evolving needs of ferry users and to consider how services could be better designed to meet those needs.

The report discusses the urgency of the need for change. It says that the forthcoming Islands Connectivity Plan represents the chance for a genuinely fresh start, a chance the Scottish Government must seize.

Read full report here
Jun 30
0

Basel III Rules: Recognition of ship finance positive, but further action is needed

By | 2023 Newsletter week 26 | No Comments

European shipowners welcome the agreement on the Basel III rules reached between the European Parliament and the Council yesterday that gives explicit recognition to ship finance.

The new rules will allow banks to apply preferential treatment to shipping portfolios on specialised lending when calculating risk weights and ultimately their capital requirements. As a result, the new law will enable banks to finance at a competitive price.

This is a positive step forward but more needs to be done to restore access of shipping companies to adequate financing in Europe and support the competitiveness of the industry.

“The strategic role of shipping for Europe’s energy, food and supply chain security must be properly recognised in the conditions for ship finance as well. Supporting the industry’s competitiveness is a prerequisite for enhancing Europe’s security and for supporting the continent’s energy transition. The recognition of ship finance under the new European law is a necessary step forward but it is clearly only a starting point.” –  said Sotiris Raptis, ECSA Secretary General.

A diverse range of toolkits of financing and funding instruments are needed to maintain and advance the competitive edge of the European shipping industry vis-à-vis its key global competitors.

The new law will have to be formally approved by the Plenary of the European Parliament and the Council in the following months.

Jun 30
0

A new Red Funnel Port for Cowes, Isle of Wight

By | 2023 Newsletter week 26 | No Comments

Red Funnel Ferries are proposing to redesign and upgrade the existing sites in East Cowes to build resilience whilst enhancing the overall look of the waterfront.

The consultation on the initial plans for Red Funnel Port opened on Monday 26th June and will close on Sunday 23rd July. Following this first round of consultation, Red Funnel will incorporate the feedback they receive into the proposals and come back to the community for further feedback on more detailed plans in the autumn.

Read more about the redesign proposal here
Jun 30
0

Amendment to terms of charter agreement for SUPERSPEED 2

By | 2023 Newsletter week 26 | No Comments

Color Line Transport AS, an indirectly wholly-owned subsidiary of Color Group AS, and Oslo Line AS, a company in which Color Group indirectly holds a 38.6% ownership interest, have

signed an amendment agreement to the existing charter agreement for Ro-Pax SUPERSPEED 2. The Vessel is owned by Oslo Line and chartered to Color Line Transport on bareboat charter terms.

Under the amendment agreement that has been entered into, the charter period is extended to 1 July 2035, and certain adjustments to the charter hire have been agreed on.

Further, Color Line Transport is granted an option to purchase the Ship in 2028 or alternatively in 2033.

Euronext