15th Week Topic: IMO MEPC 83 Adopts Framework for Greenhouse Gas Emissions Control

MEPC83 adopted two emission reduction targets for GHG Fuel Intensify-GFI:

- Set "Base target GFI" and "Direct Compliance target GFI" based on the 2008 GFI reference value (93.3 gCO₂eq/MJ).

- Failure to meet the requirements will result in a compliance deficit and a penalty:

- Primary deficit (short of direct target) : US $100 / ton CO₂ equivalent;

- Secondary deficit (short of base target) : US $380 / ton CO₂ EQ.

Zero Emission Incentive (ZNZs) for MEPC83

- Until 2034, ships with a GFI threshold ≤19.0g CO₂ equivalent /MJ are eligible for net zero incentives (e.g. IMO fund grants).

Compliance mechanisms identified by MEPC83

- Allow to repair the deficit by transferring/storing Surplus units-su or purchasing Remedial Units-RU.

MEPC83 Implementation Schedule

A two-tier target and penalty mechanism will be launched from 2028 to 2030, and ZNZs standards will be tightened in 2034.

Shipping Company how to response:

1. Active emission reduction path

- Invest in green fuels (such as hydrogen, ammonia) and energy efficient technologies to meet "direct compliance targets" ahead of time, generating SU for storage, trading or offsetting future deficits.

- Qualify for ZNZs to earn rewards while reducing long-term fuel costs.

2. Basic target route (mainstream choice for smes)

- Subject to a Level 1 fine ($100 / ton), relying on biofuels and existing energy-saving equipment (such as optimizing hull design, installing energy-saving devices) to achieve a 30% reduction in emissions.

3. Flexible compliance policy

- Use the RU trading market to balance the deficit or make a contribution to the IMO Net Zero Fund to obtain SU.

- Explore technology combinations (e.g., blended fuels + energy efficient equipment) to reduce overall costs.

MEPC83 has a key impact on shipping, with high fines forcing the industry to decarbonize, green fuel and technology suppliers will be the beneficiaries, and small and medium-sized shipowners will face significant short-term pressure, but can transition through flexible strategies.

16th Week Topic: U.S. Port Fees May Reshape Global Maritime Trade and Shipbuilding

The port charges imposed by the United States Trade Office on vessels associated with China, non-U.S.-made car carriers, and future foreign-built liquefied natural gas (LNG) carriers may trigger significant changes in global maritime trade and shipbuilding dynamics.

Facing rising transportation costs and regional supply chain disruptions, operators of Chinese-made vessels could see port call charges at U.S. ports ranging from $500,000 to $3.5 million per call. This will disproportionately affect shipping companies with Chinese-built fleets, forcing them to pass on the additional costs to importers and consumers. As a result, the prices of energy products, agricultural goods, and consumer items in the U.S. may rise.

To mitigate these costs, shipping companies may reroute vessels to minimize U.S. port calls, consolidate deliveries at larger ports such as Los Angeles or Houston, or divide their fleets into separate U.S. and non-U.S. trade routes. Smaller U.S. ports like San Diego risk losing business, undermining recent infrastructure investments.

Restrictions on non-U.S.-built LNG carriers—set to be phased in over three years—could complicate U.S. LNG exports, which are the largest in the world. As operators scramble to comply with new regulations, delays in LNG shipments may occur.

In response, operators may prioritize non-U.S. markets for Chinese-built vessels while reserving U.S.-made or non-Chinese vessels for American trade routes. This could fragment the global shipping network, reduce competition in the U.S. market, and raise the cost of maritime trade tied to U.S. imports and exports—which accounts for approximately 12% of global sea trade. Energy transport, including crude oil and LNG, faces even greater uncertainty. For example, Chinese oil tankers currently shipping Middle Eastern oil to the U.S. may redirect to Asian or European markets, while U.S. LNG exporters could face costly delays.

The U.S. introduced these measures with the aim of revitalizing its shipbuilding industry by penalizing foreign competitors. The Jones Act—requiring vessels operating within U.S. waters to be American-built, owned, and crewed—provides exemptions and incentives for U.S. ships. However, the U.S. commercial shipbuilding industry has shrunk dramatically, producing fewer than ten deep-draft vessels per year, compared to China's 1,700 annually. China’s dominant position in shipbuilding grants it the capacity to further disrupt U.S. supply chains.

Reviving American shipbuilding will require years of investment and labor training, with significant risks of project delays, cost overruns, and environmental impact. The policy underscores a political determination to restore low-end manufacturing in the U.S., though its economic rationale is debatable.

In retaliation, Beijing may already be imposing tariffs or restrictions on U.S. goods, intensifying the ongoing trade war. Although tensions may ease temporarily, the mutual harm caused by such policies could last up to a decade.

U.S. policies may also drive inflation and create consumption pressures. Economists warn that the combined effect of tariffs and fees could reignite inflation and burden American households and businesses. The World Shipping Council has cautioned that these added costs are "detrimental to all aspects of the supply chain."

Though the policy primarily targets China, it risks alienating global allies and accelerating the decline of U.S. ports unable to adapt. For instance, a reduction in ship repair activity at the NASSCO shipyard in San Diego may threaten local employment.

Ultimately, the U.S. imposition of port fees represents a high-stakes gamble to reclaim maritime dominance. While the policy could yield moderate domestic gains, the immediate impacts—rising costs, fragmented trade routes, and heightened geopolitical friction—may outweigh any long-term benefits. Success will depend on the U.S.'s ability to strike a balance between protectionist ambitions and the realities of global supply chains—where China's entrenched maritime logistics role presents a formidable challenge.

17th Week Topic: Luxury Yacht Crew Wins Millions of Dollars in Compensation

The current shipping market, especially the container ship market on the US line, has been confused by the tariff war between the United States and China. These topics have become numb in the shipping industry. This week's report tells a light-heartening and enviable real event. The event is about the three crew members on the luxury yacht Utopia IV, who will receive compensation of up to 2.88 million US dollars.

At present, the luxury yacht Utopia IV is docked normally in the Miami Harbor of the United States, basking in the sunshine. The yacht is 62.6 meters long, 10.8 meters wide, has a draft of 2.1 meters, a payload of 165 tons, flies the American flag, and was built in Italy in 2018. This luxury yacht collided with the Tropic Breeze, a 750-load product tanker built in 1989, in December 2021, causing total damage to the oil tanker, which is also owned by a shipowner based in Miami.

The National Transportation Safety Administration (NTSB) of the United States ruled that the ship collision that occurred near the Bahamas in December 2021 might have been caused by the yacht crew's failure to maintain proper vigilance, and of course, it was also closely related to the product oil tanker.

Three crew members working on the yacht Utopia IV, Eric Ward, Samuel Parot and Fred Weinberg, filed a lawsuit against the Utopia yacht company in a Florida court under the Jones Act, accusing it of negligence, unseaworthiness of the yacht and failure to provide maintenance materials for timely and adequate maintenance of the yacht. According to the disclosed court documents, all three crew members claimed that they were injured in the accident. It is reported that the 18-day trial has now ended. The jury ruled that the shipowners should compensate Ward $805,000, Parot $591,000 and Weinberg $1.49 million respectively.

The collision that occurred in the waters of the United States this time and led to the total damage of an old refined oil tanker caused losses of nearly 7.9 million US dollars. The product oil tanker sank when its tail was punctured. Fortunately, all seven crew members on board escaped onto the lifeboat and were safely rescued. The product oil tanker was on a short voyage from New Providence Island as usual at that time and lost 156,500 gallons of ship fuel. The owner of this luxury yacht was JR Ridinger, an American retail billionaire, who passed away in 2022.

The National Transportation Safety Board of the United States stated that the direct cause of the collision was that the crew in the yacht's cab failed to recognize that they were overtaking the oil tanker, and the Tropic Breeze duty driver also failed to detect this collision risk and failed to maintain appropriate lookout and vigilance.

the Convention on the International Regulations for Preventing Collisions at Sea 1972 (Sea) requires crew members who have received appropriate and qualified training from STCW to maintain lookout in line with the prevailing environment at all times, which is crucial for assessing collision risks and taking corresponding measures.

18th Week Topic: A Shipbreaking Ban Reveals a Ridiculous Partnership

Market reports on April 29, 2025: A court in Pakistan has allowed a shipbreaking yard to continue cutting the hull of a 25,400-deadweight ton Neptune Star 25 bulk carrier that has hit the beach. The vessel was embroiled in a dispute where one of the co-owners claimed that the ship was secretly sold by another owner to the shipbreaking yard for dismantling.

The time goes back to April 4, 2025. After Friends Shipping, a company registered in the Marshall Islands, received a wanted notice from the Balochistan Provincial High Court in Quetta, the dismantling of the 25,400 deadweight ton vessel built in 1996 was suspended. According to HiFleet's shipping big data, the vessel previously operated in the Red Sea and the Gulf, and arrived at this Pakistani shipbreaking yard on March 29, 2025.

Friends Shipping claimed in court that Neptune Star 25 was stolen at an Iranian port by its co-owner Elinkar Shipping and an unknown ship management company, and was then resold to a cash buyer for dismantling and recycling in Pakistan.

November 2023 Friends Shipping and Elinkar (also known as OK Shipping at that time) jointly acquired the "Neptune Star 25" from Vietnam Ocean Shipping Co for $2.8 million. According to the big data of HiFleet's ship archives, the ultimate beneficiary of this vessel is Friends Shipping, which is also responsible for all aspects of its technical and commercial management.

Friends Shipping told the court that everything was going smoothly from the purchase and operation of the vessel until January this year, when Neptune Star 25 was confirmed to transport a batch of iron ore pellets from Bandar Abbas, Iran to China. The ship arrived at the port as scheduled to start loading. However, Friends Shipping claimed that Elinkar and his Iranian partner, an agency of the port, kicked the crew off the ship. The ship then secretly left Bandar Abbas, turned off the AIS transponder, and then disappeared from the computer monitoring screen.

According to Friends Shipping, the Neptune Star 25 successfully located the bulk carrier only after it opened the AIS transponder when it arrived at Gadani Beach in Pakistan in late March. According to the evidence documents submitted by Friends Shipping, Elinkar sold Neptune Star 25 to the cash buyer Last Voyage DMCC for $2.2 million on March 5th. The terms of the ship dismantling contract require that this sum of money be deposited into a bank account in Amman, Jordan. After finally finding the ship, Friends Shipping filed a claim of 2.14 million US dollars and took measures to arrest the ship. Among them, 1.27 million US dollars was their share in the value of the ship, and the rest were various related ship management fees, etc.

The arrest warrant for the vessel was issued on April 4, 2025. At this time, "Neptune Star 25" had already achieved beach clearance on the plot of the OPL Gadani shipbreaking yard, and the just-begun demolition work was ordered to stop. In May this year, Friends Shipping told the court that it had no objection to the ongoing ship dismantling and recovery work continuing. Therefore, the court ruled that OPL could continue to dismantle the ship, but prohibited it from selling any scrap metal until the case was resolved.

Partnerships in the shipping industry are not new, but the act of taking coercive measures to deprive other partners of their participation is rarely recognized.

19th Week Topic: The Red Sea Situation Remains Murky And Unpredictable

On May 6, 2025, President Donald Trump said that the United States had reached a ceasefire agreement with the Houthi armed forces. The market seems indifferent to this news, as the whole world knows that Trump is unreliable. Whether the news is true or not still needs to be asked of the Houthi forces.

The statement from the Oval Office of the White House has brought hope to those companies that have avoided this route to reopen the Red Sea and the Suez Canal. This is also directly related to the profits of the shipping industry. The threat posed by the Houthi forces to a key trade route, the Red Sea route, has led to an increase in tonnnautical miles, causing container freight rates to remain high. Some container shipowners have benefited from the disruption of the Red Sea route in recent years.

Trump announced a ceasefire against the Houthi forces when he met with Canada's new Prime Minister Mark Carney at the White House. Accompanied by Carney, Trump said that the Houthi forces had declared that they no longer wanted to fight, and the United States promptly stopped bombing the Houthi forces. At the same time, he stated that the Houthi forces would no longer attack any merchant ships.

Oman's Foreign Minister Badr Albusaidi confirmed on public platforms that the Omani government, as the mediator, facilitated this ceasefire arrangement. In the future, neither side will target the other, including US vessels, in the Red Sea and the Bab al-Mandab Strait to ensure freedom of navigation and the smoothness of international commercial shipping, as the Bab al-Mandab Strait is the waterway connecting the Red Sea and the Gulf of Aden.

Strangely, the Houthi forces did not mention the ceasefire agreement. Shortly after the war between Israel and Hamas broke out in October 2023, Yemeni radical groups supported by other regions began attacking ships in the Red Sea and the Gulf of Aden, even sinking merchant ships, posing a direct threat to maritime property and the environment. The container market actually benefited for several years.

Less than two months after Trump's return to the White House, the US military began launching attacks on Houthi targets on March 15.

If the continuous threat posed by the Houthi forces to the Red Sea is suspended before, we should witness a rapid recovery of ship traffic in the Red Sea to historical levels. At the same time, shipping insurance premiums will be reduced and the fluctuations in oil and liquefied natural gas prices will be alleviated. The entire shipping market is constantly keeping an eye on the evidence of whether the Houthi forces have actually ceased fire. At the same time, the market is constantly monitoring the subsequent development directions of the oil tanker market and container ship charter rates. Because the crude oil transportation most affected by the Houthi attack is the Middle East to Europe route northward via the Suez Canal. According to HiFleet's shipping big data, almost all of the 900,000 barrels of crude oil transported from the Middle East to Europe every day in 2023 have to pass through the Red Sea passage. Since the attack began in November 2023, European crude oil flows have dropped to 770,000 barrels per day in 2024, and market share has shifted to the Americas.

Vincent Clerc, the CEO of Maersk, believes that the full return of the Red Sea route is actually quite complex and costly. Therefore, the possibility of the return of the Red Sea route has been ruled out in the short term. Moreover, in recent days, the situation in the Red Sea does not seem to have completely calmed down. There have been no major fluctuations or changes in the shipping market. From time to time, people see news about the Houthi armed forces attacking Israel.

20th Week Topic: Handysize Bulk Market in the First Quarter of 2025

In the first quarter of 2025, due to the high inventory in China, the freight rate market for portable dry bulk cargo was under pressure. The average freight rates in the Handysize and Supramax spot markets decreased by 24% and 36% respectively year-on-year.

In recent years, not only has the container shipping market brought substantial returns to shareholders, but also portable dry bulk shipowners have reaped the benefits. Some shipping companies with better strategic planning have begun to optimize their fleet structure. On the one hand, they customize and update more environmentally friendly vessels; on the other hand, they have started to accelerate the disposal of old ships to enhance their competitiveness for sustainable development in the future market. Due to the implementation of new carbon emission regulations and strict environmental protection requirements, more shipowners are accepting environmentally friendly ships and upgrades to cope with the increasingly strict IMO carbon reduction regulations. Large-scale portable bulk carriers are also actively expanding the scale of their fleet operations, while locking in medium - and long-term leases to determine the main yield levels in the future.

Some portable dry bulk shipowners have initiated share buybacks to maintain the confidence of market investors. The portable market has emerged from the gloom of the low point at the beginning of the year, with a general increase of 10% or more. There should be even better increases in the future.

In the short term, high inventories in China, the restructuring of the steel industry and trade conflicts have curbed the demand for dry bulk cargo. However, the record harvest of soybeans in Brazil may partially offset the decline in US exports to China. In the long term, the infrastructure demand of ASEAN countries and the structural growth of global food and energy trade will support the demand per tonnautical mile.

In the long term, the overall supply of shipping capacity is basically a good omen for the dry bulk market. The total dry bulk orders and portable bulk carrier orders account for 10.3% and 10.4% of the fleet respectively so far. The portable and super-heavy fleets continue to age, with vessels over 20 years old accounting for 14% and 12% of the existing fleets respectively. Due to the unclear market situation, coupled with increasingly strict environmental protection regulations and the uncertainty of international tariff policies, new orders for dry bulk carriers continue to decline. In the first quarter of 2025, they dropped by 90% year-on-year, and a structural supply shortage may occur in the medium and long term.

The turbulent situations in the Red Sea and the Black Sea have forced shipping routes to detour, increasing the demand per tonnage of nautical miles, pushing up operating costs and risks. At the same time, it has also driven up the shipping freight market, with larger fish becoming more expensive in the stormy weather. With the advent of the Trump 2.0 era, many uncertainties have been added to international trade. If conflicts escalate, it may trigger a global economic slowdown.

The strategy of medium and short-term flexible shipping companies is to seek a high proportion of cargo coverage on voyages, while strengthening internal capabilities to control the operating costs of the fleet. When the market position is consolidating, they focus on fleet renewal to achieve long-term development and withstand market fluctuations. Looking at the market in the long term, shipping companies should bet on more environmentally friendly vessels and digital operations to strengthen their competitiveness in the low-carbon era.

Geopolitical and trade conflicts bring uncertainties, but structural supply shortages and the growth in demand per tonne-mile provide support for long-term freight rates. At the beginning of 2025, shipping companies are confronted with weak demand and a series of external risks. They need stable cash flow, efficient fleet management and cost control, as well as a focus on green transformation. They are expected to strengthen their position in the industry consolidation and, in the long run, benefit from the dividends brought by improved supply and demand and environmental protection regulations.

21st Week Topic: EU Announces Largest-Ever Sanctions Against Russia’s Shadow Fleet

On Tuesday, May 20, 2025, the European Union announced the largest sanctions plan ever targeting shadow fleets related to Russia's crude oil exports, blacklisting 189 vessels for the first time in history. The EU said that this is the 17th round of sanctions imposed by the EU, with a total of 342 targeted vessels, and additional sanctions have been added against companies related to tanker operations and ship-to-ship oil transshipment. The sanctions also include targeting VSK, a company that provides insurance for Russian or related fleets. The company offers protection and compensation for oil tankers transporting Russian oil and has already been hit by the UK.

So far, more than 700 oil tankers have been sanctioned worldwide, slightly exceeding 10% of the existing tanker fleet. To support this crackdown, the UK has added another 18 vessels to its sanctions list and also included financial institutions that assist Russia in circumvent sanctions. European Commission President Ursula von der Leyen said that the EU has begun to draw up the 18th round of sanctions to further pressure Moscow to end the war against Ukraine. Interestingly, the United States has not imposed a new round of sanctions on Russia recently, and political games have been happening one after another.

Among a series of sanctions against the illegal export of Russian crude oil, an Indian-controlled Shadow Very large tanker completed the last ship-to-ship transfer of Russian crude oil in a newly emerging hotspot. According to HIFLEET's shipping Big data, the 319,000 deadweight ton Big Star (built in 2004) loaded approximately 700,000 barrels of crude oil from several other Aframax oil tankers in the Kitovyy Gulf Gulf on the Pacific coast of Russia on Sunday, May 18, 2025. The ship left the bay on May 19th and is sailing in the East China Sea at a speed of less than 10 knots, heading for a certain port.

Meanwhile, the market witnessed that the United States seemed to have relaxed its measures to sanction Iran's fleet. On May 21, 2025, the United States authorized the sale of a very large natural gas vessel controlled by a sanctioned Iranian natural gas giant, which had attempted to export liquefied petroleum gas from Texas in 2024. Lisa Palluconi, the acting director of the Office of Foreign Assets Control (OFAC) of the United States, said in a notice that restrictions on the 93,000-cubic-meter Tinos I (to be completed in 2024) have been moderately relaxed. According to HIFLEET's ship big data, since July last year, this vessel has been moored near the United States and is currently anchored at the Houston anchorage waiting. According to the HIFLEET vessel's archives, this vessel is classified as a high-risk vessel and has been sanctioned by OFAC. The vessel's management company is in Singapore, and the ultimate beneficiary is also in Singapore, with a Panama schedule.

22nd Week Topic: MSC Container Ship Carrying Dangerous Goods Sinks Near India

According to the shipping big data of hiFleet, the 1,728-TEU container ship MSC ELSA 3 (built in Poland in 1997 and flying the flag of Liberia) set off from the port near VIZHINJAM POINT at night Beijing time on May 23rd and headed for COCHIN. It sailed nearly 300 nautical miles at sea. The average speed is only 3.88 knots. At 3 p.m. Beijing time on May 24th, the vessel began to stop sailing and drift before approaching the destination port. Its AIS data disappeared from the hiFleet platform data at 5 p.m. Beijing time on May 25th.

According to official information disclosure, the 1,728-TEU container ship sank in the early morning of May 25, 2025, 38 nautical miles (70 kilometers) away from the port city of Kochi in Kerala. At that time, the ship was carrying 13 dangerous containers and 12 containers containing calcium carbide.

The Indian authorities are on high alert to deal with any environmental impact of the shipwreck incident on the southeastern tip of the country. Meanwhile, the relevant authorities closely monitor the coastline of Kerala to control the possible environmental damage.

The Indian Coast Guard released relevant videos and photos showing that the old container ship had tilted by 26 degrees before sinking, and the 24 crew members on board had released the life raft. All the personnel were safely rescued before the ship sank. According to the initial investigation by the relevant departments, after the 21 crew members on the ship were initially evacuated, the captain, chief engineer and second-in-command remained on the ship to assist in the planned rescue operation. In the early morning of May 25th, water entered one of the cargo holds, causing MSC Elsa 3 to capsize rapidly. These three crew members subsequently abandoned the ship and were rescued by the nearby Indian Navy patrol ship Sujata.

It is said that there were a total of 640 containers on Ship MSC Elsa 3 at that time, and there were 84 tons of diesel and 367 tons of fuel oil on board. As of early May 26, 2025, MSC had not issued any notification regarding this incident. The Indian authorities have not yet given the reason for the sinking of this ship either.

According to market information, this ship has just been transferred from the UK P&I Club to Steamship Mutual. Historical records show that the ship had a collision in 2016, when the hull and machinery were severely damaged. According to HIFLEET's shipping big data, the last time the vessel underwent a PSC inspection in MONGALORE, India was on November 19, 2024. There were five minor defects, and the safety rating of the vessel in the Tokyo Memorandum was standard vessel.

Once a ship is involved in a collision, oil contamination or casualties, it will directly lead to the suspension of production and operation of the ship, which greatly affects the reputation and business production of the shipowner.

23rd Week Topic: Maritime Safety in Bulk Coal Transportation

In 2023, a bulk carrier flying a flag of convenience suffered a series of explosions about 100 nautical miles off the coast of Virginia, United States, causing the international shipping community to pay high attention to the safety of coal transportation. According to the US Coast Guard (USCG) investigation report, the ship was carrying a cargo of highly volatile coking coal, and the accident caused severe damage to two cargo holds. Preliminary investigations indicate that the explosion was caused by the formation of explosive gas from methane gas that had accumulated in the cargo hold. The investigation found that methane concentrations in five other cargo holds were close to the lower explosive limit, posing a "direct threat" to crew and ship safety. The U.S. Coast Guard said the accident exposed multiple violations in cargo declaration, ventilation management, gas monitoring and cargo sorting.

The incident not only caused economic damage, but also highlighted the disastrous consequences of ignoring international norms in the shipping of coal. Combined with the International Maritime Solid Bulk Cargo CODE (IMSBC CODE), the key measures to prevent explosion accidents when transporting coal are briefly analyzed.

According to the cargo information requirements in Section 4 of the IMSBC CODE (Version 2022), shippers must provide a complete declaration of the characteristics of the cargo, including the chemical properties of the cargo, potential hazards (such as the risk of methane release) and transport conditions. In this case, because the declaration did not disclose the methane generation characteristics of the coal, the ship failed to take targeted preventive measures. Key points of compliance, shippers need to clarify the type of coal (such as high-volatile coking coal), spontaneous combustion tendency, gas release risk and other key information in the declaration; The ship shall verify the consistency of the declared content with the actual characteristics of the goods, and request an independent inspection report if necessary; If the behavior of the cargo does not conform to the declaration (such as sudden gas release in transit), the crew shall immediately notify the shipper and activate an emergency plan.

Section 9.3 of the IMSBC CODE stipulates that cargo that may release flammable gases (such as certain coal) must be ventilated continuously or regularly to maintain the gas concentration in the cargo hold below the lower explosive limit (LEL). In this case, insufficient ventilation in the cargo hold led to a buildup of methane. Choose natural ventilation or mechanical forced ventilation according to the characteristics of the goods to ensure that the air evenly covers the surface of the goods; Install gas detection devices and develop testing plans. High-risk goods need to increase the monitoring frequency; When explosive gases approach the LEL, immediately activate enhanced ventilation and isolate the cargo hold.

At the same time, gas monitoring and recording are systematically implemented. Appendix 2 of the IMSBC CODE requires that when transporting goods that are prone to release gas, the ship must be equipped with certified gas detection equipment and regularly record the environmental data in the cargo hold. In this case, insufficient gas sampling frequency led to the failure to detect the risk in a timely manner. Ensure the accuracy of the measuring instrument and check the sensor regularly; Collect gas samples at different heights (top, middle, bottom) in the cargo hold to avoid "dead corners"; The monitoring results shall be recorded in the ship's log in real time, and the captain and the shore-based management department shall be notified of any abnormal situation immediately.

Finally, the cargo loading and finishing operations are regulated. Section 5 of IMSBC CODE emphasizes that Trimming needs to be implemented after cargo loading to reduce voidage and inhibit gas diffusion. The ship involved did not properly arrange the cargo, forming a space for gas accumulation and increasing the risk of explosion. Design the loading sequence according to the structure of the cargo hold to avoid excessive local accumulation; Use a bulldozer or skateboard to ensure that the surface of the goods is smooth and eliminate pores; Spray water mist on easily oxidized coal (to meet environmental requirements) to inhibit methane generation.

Strengthening crew training and emergency drills is indispensable. Section 7.2 of the IMSBC CODE requires crew to be trained in cargo characteristics and emergency procedures. In particular, the U.S. Coast Guard noted in its report that crews need to have the ability to identify abnormal cargo behavior and maintain dynamic communication with shippers. Learn the early signs of spontaneous coal combustion, gas release (e.g., temperature rise, odor); Regularly rehearse the process of cargo hold isolation, full crew evacuation, fire extinguishing system start-up, etc. Establish real-time information sharing mechanism with shippers and port authorities.

24th Week Topic: Wan Hai 503: Slim Chances of Survival

On June 9, 2025, the Singapore-registered container ship Wan Hai 503 (4,333 TEU, built in 2005) suddenly exploded and caught fire about 80 kilometers southwest of Ajkala, Kerala, India. The next day (June 10th), the fire was not completely under control, and the ship tilted and continued to explode. Four crew members were missing and 18 were rescued and transferred. About 50 containers fell into the sea, and the container compartments from the middle of the hull to the front of the living area were severely damaged. Two vessels of the Indian Coast Guard were involved in the firefighting efforts. The fire was partially under control but the situation was severe.

It is reported that the fire on this vessel this time might have been caused by the container carrying undeclared flammable and explosive materials (such as lithium batteries and chemicals), which triggered a chain reaction of explosions when exposed to high temperatures or collisions. If the packaging of lithium batteries is damaged, damp or the temperature gets out of control during transportation, it is easy to cause thermal runaway and spread to other goods. Or due to improper stoking of dangerous goods, the mixed loading of dangerous goods and general goods, or the leakage of flammable materials caused by the stacking pressure of containers. This ship is also an old one, and its equipment may be outdated. It was built in 2005. It is estimated that the ship's fire extinguishing system will also be difficult to deal with fires caused by batteries.

The arrival of hot summer weather has significantly increased the risks of transporting dangerous goods. Recently, fire accidents caused by new energy vehicles, lithium battery goods and second-hand fuel vehicles have occurred frequently. On the day of the fire accident, COSCO Shipping Lines issued an announcement, reiterating to customers the importance of accurately declaring cargo information. The announcement emphasizes that the safety responsibility of shippers of dangerous goods is of vital importance. Every shipper must fully recognize the particularity of dangerous goods transportation, strictly abide by relevant regulations, and earnestly fulfill their safety management responsibilities.

Suggestions for the safety management of container cargo: Strengthen the supervision of dangerous goods, properly isolate high-risk goods. Dangerous goods of category 9 such as lithium batteries should be independently stoked, kept away from heat sources, and be convenient for management and fire extinguishing. Strictly monitor the temperature of lithium battery containers, etc. Crew members conduct specialized drills and regularly carry out simulated training on dangerous goods fires to master the key points and procedures for extinguishing typical dangerous goods fires. Shipping companies jointly establish a database of dangerous goods violation shippers and reject high-risk customers.

25th Week Topic: Booming Demand for Feeder Container Ships in 2025

According to the container shipping market, Mediterranean Shipping Company (MSC) has been making large-scale purchases of target vessels in the second-hand feeder container ship market. The world's largest privately-owned liner company has recently purchased several feeder container ships from Greek shipowners Contships Logistics and Conbulk Shipmanagement, as well as German shipowner Peter Dohle Schiffahrts.

The buyers active in the feeder container ship market are not only MSC, but also the French liner company CMA CGM. CMA CGM, led by the Assad family, has purchased more than ten second-hand container ships this year and recently spent 40 million US dollars to buy two 1,400-TEu container ships. Both of these two ships are from the fleet of the Dutch shipowner JR Shipping. A 1,700-TEU container ship with a lease for about 15 years can also be priced at 20 million US dollars.

According to hiFleet's shipping big data statistics, there are approximately over 1,600 feeder container ships with a capacity of less than 2,000 TEUs worldwide, with an average age of around 15 years. Due to the booming market for feeder container ships, the number of ships being dismantled is very small. From 2025 to the present, compared with the period of 2024, the capacity of feeder container ships has increased by 31 feeder vessels and over 30,000 container positions. The current one-year level of 1,700 standard container feeder containers has risen by 27% compared to the fourth quarter of 2024. The proportion of new orders for feeder vessels with a capacity of less than 3,000 TEUs to their fleet size has dropped from 16% in 2023 and 10% in 2024 to 4% in 2025. This indicates that capital has become more cautious in investing in feeder vessels, while some shipowners with full pockets are seizing rare market opportunities by purchasing a large number of second-hand feeder vessels.

The duration of the booming container market in recent years can be regarded as a historical record. It is related to the three-year pandemic, the disturbance of the Red Sea situation by the Houthi armed forces, and the sustained strong trade among regions. As the war between Israel and Iran unfolds, there is no timetable for the current situation in the Red Sea to return to calm, and the Strait of Hormuz has also begun to become tense. However, shipping always responds promptly to changes in the situation. Fluctuations in market levels also catch shipping market participants off guard. The more turbulent the waves, the more expensive the fish. Some people have unexpected gains, while others are frustrated by missing the money surging. Moreover, for shipping families that have weathered several cycles, they have become accustomed to watching the market rise and fall with a calm and composed attitude.

26th Week Topic: Reflections on Frequent Fires in Vehicle Transport

In recent years, due to the continuous increase in the global demand for electric vehicle maritime transportation, fire accidents involving car transport ships have also shown a frequent trend. On June 4, 2025, a car carrier with 4902 parking Spaces, the "Morning Midas" (built in 2006), managed by Zodiac Maritime, caught fire on its way to Lazaro Cardenas, Mexico. The ship was in the waters near Alaska. It was reported that an electric vehicle caught fire and all 22 crew members were evacuated. The ship finally sank on June 24th, and the rescue vessel was powerless by its side.

On April 16, 2025, the Delphine (built in 2018), a 7,800-seat vessel flying the Maltese flag under CLdN, caught fire in the port of Zeebrugge, Belgium. Later, it was confirmed that the fire was caused by a traditional fuel vehicle, and the responsibility of the pure electric vehicle was ruled out.

On December 4, 2024, a 1,536-deadweight ton Malaysia Star (built in 1992) car carrier in Malaysia caught fire and 19 crew members abandoned the ship. These sailors were rescued 9.1 nautical miles away from Danjung Laboh.

In November 2024, a car ship caught fire, resulting in the death of one sailor and the burning of thousands of cars. The 6,220-car Fremantle Highway (built in 2013) has lost its car deck and top floor accommodation in the fire and has begun its journey to China for reconstruction. This car carrier, named "Floor", has been acquired by Koole Contractors, a Dutch industrial decommissioning company.

In February 2022, a 6,400-car capacity car boat, Felicity Ace (built in 2005), sank after burning for two weeks near the Azores. The legal lawsuit in Stuttgart claims that the battery of the Porsche electric vehicle was the chief culprit causing the fire.

Many fire accidents involving these car carriers directly pointed to the batteries of electric vehicles: short circuits, collisions or overheating of lithium batteries may cause "thermal runaway", and the fire spreads rapidly and is difficult to extinguish. The Porsche lawsuit confirmed the shipowner's concerns about battery risks, and the automaker was accused of not fully disclosing the risks and preventive measures. The International Maritime Insurance Union has called for in-depth research on the fire characteristics of electric vehicles.

The key measures to prevent fires on car carriers should include intelligent monitoring, installing AI-driven thermal imaging cameras (as configured on MOL's new ships) to monitor battery temperature and smoke in real time and provide early warnings. Deploy gas sensors in the cabin to detect hydrogen/electrolyte leakage (a by-product of battery thermal runaway). Ships are equipped with dedicated fire-fighting equipment, including battery compartment immersion fire extinguishing systems (such as immersing containers in water tanks) or large water mist sprinkler devices, to continuously cool down and prevent re-ignition. Add deck ventilation openings to prevent the accumulation of flammable gases.

Precautions for the operation of electric vehicles on board: Separate electric vehicles from fuel vehicles on different layers, and use fireproof materials to separate the battery area. Limit the number of batteries carried by a single vessel to avoid a chain reaction. Strengthen specialized training for staff and practice the emergency response procedures for battery fires. The vehicle manufacturers are required to provide battery safety data sheets (such as thermal runaway temperature and fire extinguishing guidelines) for the shipowners to formulate transportation plans. International classification societies (such as DNV and LR) need to incorporate battery fire protection design into new ship standards, including fire-resistant compartments and automatic fire extinguishing systems. Insurance companies reduce premiums for ships that adopt fire prevention measures to encourage safety investment.

Emergency response optimization, global rescue network, deployment of professional fire-fighting tugboats on major routes, and equipped with deep-water cooling equipment (such as barges pumping seawater for continuous cooling). Share the accident database, establish an industry fire case library, analyze the causes (such as battery model and charging status), and guide risk prevention and control.

The thermal runaway characteristics of electric vehicle batteries significantly increase the fire risk of car carriers. In the future, a three-in-one strategy of technological prevention and control (AI monitoring + dedicated fire protection), transportation regulations (isolation/load limit), and industry standard upgrades (ship design + data sharing) should be adopted to systematically reduce the probability of accidents. In the short term, the conservative strategy of Norwegian shipowners can be borrowed to suspend the transportation of high-risk goods. In the medium and long term, the industry needs to rely on the International Maritime Organization (IMO) to promote mandatory new regulations to ensure a safe transformation.