30th Week Topic: Ship Sails

On July 22, 2025, market reports indicated that British shipowner Union Maritime had installed sail systems on two new LR2 oil tankers to reduce fuel consumption. The company is an active promoter of sail technology and continues to add wind propulsion retrofit projects to its fleet.

On July 10, 2025, market information indicated that German shipowner HGK Shipping, in collaboration with chemical company Covestro, installed a wind-assisted propulsion system on the chemical tanker "Amadeus Titanium", aiming to provide sustainable and green shipping services for short-haul routes in Europe. The agreement is valid until 2040. Meanwhile, German shipowner Reederei Bernd Sibum received funding from the German government's NaMKu program to retrofit four 3,850 DWT general cargo ships built in China with the same wind-assisted propulsion system. It is expected that this will reduce fuel consumption by 12.5% and integrate comprehensive green technologies such as biofuels, battery hybrid propulsion, and waste heat recovery.

The current application of sail technology in the field of ship emission reduction holds great promise. Firstly, its technology is mature and costs have decreased, allowing sail systems to be commercially applied in the shipping industry. The modular design makes it easy to integrate into new ships or retrofit old ones. Additionally, the support from policies and financial institutions in various countries has accelerated the implementation of sail technology in the shipping sector. Lastly, the energy-saving benefits of sail technology are significant. Sails can assist the main propulsion system and reduce fuel consumption by 10% to 15%.

However, the application of sail technology on ships also has obvious limitations. The most important one is that the energy-saving effect of sails depends on natural conditions. The efficiency of sails is restricted by wind speed and course, and their effect weakens in windless or headwind sections, thus requiring the support of traditional power systems. Secondly, the modification cost and the weight of sails cause ships to lose some cargo capacity, which deters shipowners. Additionally, there is the issue of the adaptability of sail technology to ships. Large container ships or high-speed vessels cannot rely entirely on sails. The deck space and structural strength also pose challenges.

As an auxiliary power source for ships, wind sail technology is an important supplement to the ship's petrochemical fuel rather than a major alternative. If combined with artificial intelligence (optimizing the angle of the wind sail/ship route), new materials (lightweight rigid sails), and more efficient energy storage technologies, the contribution rate of wind sails may further increase.

The International Maritime Organization (IMO) requires that carbon emissions from shipping be halved by 2050. Sails will work together with ammonia/hydrogen fuel, battery propulsion, and other technologies to form a diversified decarbonization solution. Sailing technology has moved from concept to practice and has demonstrated economic and environmental benefits in specific routes and vessel types. In the future, its role will be as a "load reducer" for traditional fuels rather than a replacement. It needs to work in synergy with other clean energy technologies to drive the shipping industry towards deep decarbonization. Policy support, technological iteration, and cross-industry cooperation (such as alliances among shipowners, cargo owners, and shipyards) will be key to large-scale application.

31st Week Topic: AI Is Playing an Increasingly Important Role in Maritime Shipping

Global shipping groups are increasingly enthusiastic about the application of artificial intelligence in their daily operations, providing end-to-end solutions for the shipping industry through AI and digital technologies to address the changes, new regulations and technological challenges in the shipping sector.

The core technologies of artificial intelligence are to apply big data analysis, machine learning, and predictive technologies to revolutionize fleet management, application experience, voyage optimization, and sustainable compliance and regulation.

Global modern shipping enterprises follow the increasingly strict green requirements of the IMO organization, focusing on addressing compliance needs for decarbonization (such as CII and the EU ETS), and provide a full process from data integration to decision-making.

Enhance operational efficiency, safety standards and environmental responsibility through AI-driven solutions, covering commercial shipping, maritime management and global logistics.

The future application prospects of artificial intelligence in maritime transportation will gradually expand, covering intelligent management for carbon reduction of ships; intelligent management for the safety of shipping routes; intelligent management for the operational efficiency of maritime transportation; intelligent assistance and upgrading for navigation safety; and so on.

The IMO 2050 carbon reduction target and the EU ETS carbon tax are driving the industry's transformation. AI real-time monitoring of emissions, optimizing fuel usage, and automatically generating compliance reports can reduce the risk of non-compliance, such as CII ratings and dynamic predictive management.

Artificial intelligence, in combination with camera feeds, AIS real-time vessel data, radar data, etc., enables collision risk warnings and obstacle avoidance; intelligent route planning and optimization, etc. Machine learning analyzes historical data to predict mechanical failures or adverse weather risks in advance.

By integrating shipping big data, artificial intelligence combines data on port congestion, weather, and fuel prices to dynamically adjust ship speeds and berth plans, effectively enhancing the operational efficiency of vessels.

Artificial intelligence and big data analysis are used to identify the behavioral preferences of cruise passengers, categorize different groups, and customize routes and corresponding dining recommendations accordingly.

Artificial intelligence combined with big data simulates the performance of ship hulls; optimizes the loss of propulsion systems; and finds the best match of ship hulls and power combinations for different routes and different ships.

Artificial intelligence can also play a role in crew training, for instance, by using VR combined with AI to build emergency scenario simulators and enhance crew members' emergency response capabilities.

Approximately 90% of global trade relies on maritime transportation, and there is a widespread demand for artificial intelligence to reduce costs and increase efficiency. Regulations for green and decarbonized shipping have given rise to technological dividends. In the future, artificial intelligence will deeply restructure the operational logic of the maritime industry, shifting from passive compliance to active optimization. The core value lies in cost reduction, carbon emission reduction, and efficiency improvement.

32nd Week Topic: Ships and Drugs

On June 27, 2025, the captain of a Turkish-owned chemical tanker, the "SCOT BREMEN", which was built in 2003 at a Romanian shipyard and has a deadweight of 8,200 tons, promptly reported to the authorities after discovering that some of the crew members had hidden cocaine on board. This swift action successfully thwarted a drug trafficking operation. The vessel had departed from the Brazilian port of Pecém on June 6, passed through the Canary Islands, and was en route to the Port of Ghent when it was diverted to the Port of Zeebrugge. There, the port authorities discovered hundreds of kilograms of cocaine. Five crew members were arrested, and the captain was commended by the shipowner and the port authorities for his prompt action in foiling the crew's involvement in the drug trafficking.

As maritime transportation continues to develop, seafarers have become an important channel for drug smuggling, driven by various factors. Most seafarers come from economically underdeveloped regions and have relatively low basic salaries. In contrast, drug traffickers offer a single transportation reward that can amount to several years' worth of wages. For instance, in the "Silver Dragon" drug case cracked in Kaohsiung Port, the market value of the smuggled drugs was approximately 220 million yuan. Under economic pressure, some seafarers view drug smuggling as a shortcut to quick wealth.

In high-risk drug areas such as Colombia and Brazil, drug traffickers often use intimidation to force crew members to cooperate. In 2023, the captain of the bulk carrier "Phoenician-M" requested an increase in security fees due to concerns about drug risks at the port of Barranquilla, Colombia, but received no response. Eventually, 137 kilograms of cocaine were found on the ship, and two senior crew members were sentenced to 30 years in prison in Turkey.

Modern ships have complex structures, providing objective conditions for drug concealment. Drug traffickers often use three types of methods to infiltrate: smuggling drugs in cargo, disguising drugs as legal goods so that crew members cannot open the boxes for inspection; welding the hull, where divers weld drug containers to the bottom of the ship in the anchorage, such as the Turkish Navy once spent three hours removing a 176-kilogram steel cylinder of drugs welded to the bottom of a ship; and internal concealment, where crew members take advantage of their positions to directly hide drugs in the living quarters.

Crew management and background checks, especially for crew members boarding ships at high-risk ports in Central and South America, Southeast Asia, etc., should clearly require intermediaries to provide criminal clearance certificates through labor dispatch contracts. Establish a reporting protection mechanism. For instance, if the captain discovers any abnormality, he should immediately cancel the pilot arrangement, isolate the involved crew members and confiscate their mobile phones. The shipowner should publicly commend such professional behavior afterwards. Such exemplary effects can encourage crew members to actively supervise. Regular anti-drug training should be implemented, and warning education should be carried out in combination with similar cases like the Turkish oil tanker incident, making it clear that there is a zero-tolerance policy and the legal consequences of participating in smuggling.

Intelligent monitoring is adopted in high-risk areas of ships, especially during anchoring at ports in Latin America and West Africa, with 24-hour video intelligent monitoring enabled. Access to the ship is controlled, with registration posts and surveillance cameras set up. All outsiders are subject to document verification and travel record checks. Before departure, the hull is inspected. If there is any suspicion, divers are hired to conduct underwater exploration before departure to eliminate the risk of hidden drug smuggling devices through welding.

In line with the norms of investigation procedures, it is required that the captain adhere to the principle of accompanying during official boarding. Permission must be obtained before recording the investigation process, and a receipt must be requested when providing documents. Sometimes diplomatic protection needs to be initiated, and the embassy or consulate should be contacted immediately when necessary to provide support for the detained crew members and the vessel.

As the user of the vessel, the charterer needs to clarify through contract terms, port selection and cargo division of responsibilities, adopt the BIMCO anti-drug clause, and make it clear that the responsibility for drugs carried in the cargo lies with the charterer, while the responsibility for the crew's involvement lies with the shipowner, etc.

Port states and law enforcement agencies need to strike a balance between anti-drug effectiveness and fair law enforcement, avoid a criminal conviction bias, establish an intelligence network in port areas, and achieve immediate control upon arrival and full monitoring during the stay in port.

The SCOT BREMEN incident shows that the prevention and control of drug smuggling requires the joint efforts of shipowners, charterers and port states. Currently, the International Maritime Organization (IMO) and the International Labour Organization (ILO) are promoting the formulation of the "Fair Treatment Guidelines for Seafarers' Criminal Convictions" to curb the trend of different port states abusing their detention rights.

33rd Week Topic: Jamaica May Become the LNG Distribution Hub of the Caribbean

On August 11, 2025, Excelerate Energy announced that it would focus on the liquefied natural gas refueling business and advance the renovation project of its two floating storage and regasification units (FSRUs) in Jamaica. Establishing a liquid natural gas distribution and refueling center in the central Caribbean should be a good idea. Excelerate Energy is committed to expanding the scale of its newly acquired port assets in Jamaica and is striving to turn the island into a hub for liquid natural gas (LNG) distribution and refueling in the Caribbean region.

Steven Cobos, the CEO of Excelerate Energy, stated that the floating regasification specialist company has begun optimizing the layout of its Jamaican assets acquired from New Fortress Energy. He said that the company is increasing production, obtaining greater value from the commercial area, and selling more liquefied natural gas to the island's customers. In the medium to long term, the company will invest in larger-scale infrastructure projects, including new power generation facilities, port expansions, liquefied natural gas refueling, and new pipelines.

The geographical location of Jamaica has given Excelerate Energy a structural cost advantage. Its proximity to the United States and key regional markets enables the company to respond promptly to regional demands.

Excelerate Energy is advancing a plan to utilize its floating liquefied natural gas terminal located in Old Port as a central storage and distribution point to provide liquefied natural gas refueling services externally. Starting from the floating terminal, the liquefied natural gas can be efficiently transported to the entire Caribbean region using smaller vessels, thereby shortening the transportation time and reducing fuel costs. It can be seen that there are clear ways to promote this model throughout the Caribbean region, and such realization also requires targeted investments. For example, to transport such quantities of oil and gas, new vessels and onshore assets need to be equipped on other islands.

By 2030, Excelerate Energy is expected to increase its profits by $80 million to $110 million through optimizing its Jamaica platform and investing between $200 million and $400 million to expand its business operations in Jamaica and the Caribbean region.

Simpson, the CEO of Excelerate Energy, stated that the growth prospects for the liquefied natural gas refueling business over the next five years are optimistic. The company has already begun the modification process for its newly purchased liquefied natural gas transport vessel "Excelerate Shenandoah" (formerly known as "Methane Alison Victoria", built in 2007, with a cargo capacity of 145,576 cubic meters and steam turbine propulsion). The Chief Operating Officer, David Linna, said that the company has multiple modification projects underway.

The company is collaborating with a partner on a specific vessel, and the engineering work has been completed. Cobos stated that the new ship being built by the company is expected to be delivered in June 2026. Excelerate Energy is confident in securing a good route for this ship. The market believes that the supply of floating storage and regasification units (FSRU) in this category is currently tight, but there is potential for the future.

24th Week Topic: Bulk Carrier Explodes Near Baltimore Bridge Accident Scene

On August 19, 2025, an KAMSARMAX bulk cargo ship exploded in a sensitive area of Baltimore. The ship was damaged, but fortunately no one was injured. The 82,000-ton "W Sapphire" (built in 2012) was managed and operated by the Greek company W MARINE. At the time of the accident, the ship was fully loaded with coal.

The HIFLEET's historical trajectory shows that this vessel refueled in LAS PALMAS on August 5th and then headed for the next destination, BALTIMORE in the United States to load coal. When it set sail on August 19th, the draft was 14.3 meters. Before entering the port on August 16th, the draft of the vessel was 7.4 meters. This bulk carrier departed from Baltimore on the evening of August 19th, fully loaded with coal. During the voyage, an explosion occurred. After the explosion, the vessel anchored in the port anchorage 75 nautical miles away from the loading port for investigation.

After the explosion, the vessel anchored in the port anchorage 75 nautical miles away from the loading port for investigation. When the explosion occurred, the hatch cover detached from the ship, causing the waterway that had been temporarily blocked due to the collapse of the Francis Scott Key Bridge to be blocked again for a short period of time. According to the HIFLEET shipping big data, the vessel had already stayed at this anchorage for more than 95 hours.

The US Coast Guard has established a safety zone within a 2,000-yard (1,830-meter) radius around the point where the falling hatch cover landed. When the explosion occurred, the hatch cover detached from the ship, causing the waterway that had been temporarily blocked due to the collapse of the Francis Scott Key Bridge to be blocked again for a short period of time. This area of the Patapsco River overlaps with the part of the waterway that was closed off last year due to a shipping accident that caused the Francis Scott Key Bridge to collapse. On August 20th, local maritime officials announced that the McHenry Fort Federal Waterway connecting Baltimore Port and the Atlantic Ocean had been reopened on the evening of August 19th.

The markings of these safety zones are intended to protect the personnel, vessels and marine environment within these navigable waters. The US Coast Guard has established a safety zone within a 2,000-yard (1,830-meter) radius around the point where the falling hatch cover landed. The specific area of these markings is between 39°11.70' north latitude and 076°31. This area of the Patapsco River overlaps with the part of the waterway that was closed off last year due to a shipping accident that caused the Francis Scott Key Bridge to collapse. The markings of these safety zones are intended to protect the personnel, vessels and marine environment within these navigable waters. The specific area of these markings is between 39°11.70' north latitude and 076°31.71' west longitude (near Swann Creek) in the Patapsco River, and extends to the original location of the Francis Scott Key Bridge (between the above two points), as well as the area extending to the bridge's original position.

The HIFLEET shipping big data shows that on August 19th, due to the blockade, the port was isolated and one bulk cargo ship, two container ships and two vehicle transport ships were docked there. These vessels were originally scheduled to transport goods to Baltimore, but were stranded outside the port due to the port closure. Fortunately, there were no other ships nearby that were damaged by the explosion. These vessels were originally scheduled to transport goods to Baltimore, but they were stranded outside the port due to the port closure. According to the HIFLEET vessel archive data, this ship was controlled by a Greek shipping company, registered in Liberia, and was technically certified by Lloyd's Register.

35th Week Topic: Ship Carrying Iranian Weapons to Russia Sunk by Ukraine

On approximately September 18, 2025, Ukraine claimed that it had for the first time used a drone to sink a Russian merchant ship. It was said that the ship was transporting Iranian weapons components for Russia at that time. The drone launched an attack on the Olya Port in the Caspian Sea, targeting the 5,200-ton multi-purpose "PORT OLYA 4" vessel (built in 2014). Photos circulating online showed that the stern of the ship was severely damaged and tilted into water, and the ship had sunk. The Russian authorities subsequently confirmed that this incident was a drone attack by Ukraine on the port.

According to the shipping big data of HIFLEET, this container cargo ship was operating in the Caspian Sea, flying the Russian flag. It arrived at the AMIRABAD port in the southern part of the Caspian Sea in Iran on August 1st. According to the ship archives of HIFLEET, this vessel was listed as a sanctioned vessel by OFAC on September 10th, 2024.

The governor of Astrakhan Region stated that all the drones had been suppressed or destroyed by electronic warfare measures, and the port infrastructure was not damaged in any way. One vessel was damaged by debris from the crashed drone. The market analyzed and reviewed the images of the consequences of this attack. The images showed that the vessel sank while anchored, and the bridge and upper structure suffered extensive thermal damage. All the crew members should not have been injured and have all been rescued.

Market discussion: This should be the case where the Ukrainian unmanned aerial system attacked a Russian merchant ship and for the first time caused the ship to sink. This was also the first such attack on the Olya Port, and it was the first successful strike on a vessel in the Caspian Sea. The 4th dock of Olya Port is controlled by the Russian MG-Floret company, which is subject to US sanctions. The Ukrainian government claims that Olya is an important logistics hub for Iranian military supplies transported to Russia.

The Kiev Independent newspaper reported that this port is used to receive components and ammunition for the "Shahed" type drones. The Ukrainian military stated that this attack is part of a larger operation aimed at weakening Russia's ability to conduct air strikes and the sustainability of its war efforts.

The war between Russia and Ukraine has attracted much attention from all sides. The shipping market has also undergone significant changes due to this war, and it has even given rise to the largest shadow fleet in history. Pray that this terrifying war will end soon, and that the people who have suffered from the war can return to peace as soon as possible.

36th Week Topic: Dry Bulk Market Underperforms in the First Half of 2025

In the first half of 2025, the performance of dry bulk shipping was not satisfactory. Some companies saw a year-on-year decrease in their total revenue by more than 60%. Among them, Pacific Basin's revenue in the first half of 2025 decreased by 21% to 1.019 billion US dollars. This was still a relatively good operating situation in the handy-purpose dry bulk shipping sector.

The poor performance of the dry bulk market can be attributed to several factors. Firstly, the freight market is weak. This is mainly due to the fact that in the first half of 2025, the overall dry bulk market was weaker compared to the same period in the past four years. Especially in the first quarter, the three major dry bulk commodities (such as iron ore, coal, etc.) were affected by specific factors. Although there was a recovery in the second quarter, the average time charter rate (TCE) for the first half was still lower than market expectations.

The third factor is a year-on-year decline in freight rates. Affected by market supply and demand, the freight rates for dry bulk carriers are under pressure. Among them, the TCE (time charter equivalent) of the Handysize and Supramax vessels of Pacific Basin decreased by 7% and 11% respectively, to $11,010 and $12,230 per day. Although the performance of these two types of vessels still significantly outperformed the market index by 27% and 40% respectively, the absolute decline in freight rates directly affected the revenue and profits of this Hong Kong-listed company.

For Pacific Basin, the most concern might be the fact that on March 13, 2024, the United States Steelworkers Union urged the US government to launch a trade investigation under Section 301 regarding the so-called unfair economic practices of China's shipbuilding industry. Regarding the 301 investigation, HIFLEET discussed it in the 15th weekly report of 2024 and accurately predicted some measures that the US government would take, including the high port surcharges that Chinese shipowners operating Chinese-made ships would face when calling at ports in the US at the beginning of this year. This policy may have been postponed to November this year. However, as a Hong Kong-listed company and with a background of mainly manufacturing ships in China, Pacific Basin may always be concerned about a series of unfriendly policies that the US might implement against Chinese shipowners in the future.

In the short term, the dry bulk market is in a consolidation and improvement phase. The market remains optimistic about the prospects of the dry bulk shipping industry. Although there may be downside risks, a significant market downturn is not expected. Market data shows that since the third quarter of 2025, the Baltic Dry Index (BDI) has significantly rebounded compared to the first quarter (the TCE freight rates for ultra-spar and small-spar vessels have increased by 62% and 31% respectively). This indicates that the weakest period of the market may have passed, and profits in the second half of the year are expected to expand compared to the first half. Especially in the second half, it is the traditional grain export season, which is beneficial for the operation of the spar vessels.

However, shipping professionals still need to closely monitor global macroeconomic trends and geopolitical factors, among other risks.

37th Week Topic: A Seafarer’s Wife’s Two-Year Struggle and the 30-Year Wrongful Imprisonment Dilemma

In the chilly apartment of Helsinki, Elena Albokhari always stares at the cat left by her husband Ali. This pet was specially chosen by Ali for her as a companion before he went to sea. Now, it has become the only emotional support for the couple who are separated across countries. Ali, a senior deck officer, has spent nearly 24 months in a Turkish prison. And what awaits him is a 30-year prison sentence. This seemingly unrelated drug smuggling case has completely plunged an ordinary seaman's life into the abyss and has also left a newly married family struggling in despair.

The story began with a promising new life. Ali, who held dual citizenship of Syria and Finland, met and fell in love with Elena in Helsinki. After getting married, in order to build a family together, he accepted a job offer from the bulk cargo shipowner Phoenician-M. This cargo ship, with a load capacity of 34,399 tons and built in 2010, was in Ali's eyes dilapidated. He had mentioned the poor condition of the ship many times in his messages to his wife. In October 2023, the ship was loading coal in Colombia. The port had dim lighting and no security personnel, which were obvious management loopholes. When the ship arrived in Turkey, the Turkish police directly boarded the ship for a search and arrested Captain Marko Bekavac and Ali, who was the chief mate, on the grounds of finding drugs in the cargo hold.

In Elena's view, her husband was from beginning to end just an innocent scapegoat. As the chief officer, Ali's responsibility was to ensure the safety of the ship's navigation and the work on the deck. He had no control over the security conditions at the Colombian port. However, the judicial process did not offer this outsider a fair chance. In early 2025, nearly two years after the incident, the Croatian captain, Bekavac, was suddenly released.

The release of the captain gave Elena a glimmer of hope, but it also plunged her into even deeper anxiety. She was worried whether her husband's case would be completely forgotten? Over the past two years, she had never stopped fighting. She launched a crowdfunding campaign on social platforms to raise legal fees, appealed to the International Maritime Organization, and accepted interviews with the media to tell the story of her husband's ordeal. But reality kept giving her heavy blows again and again. Up to now, she has spent over 100,000 US dollars on legal fees, but she still can't confirm the progress of her husband's appeal. Although the trade union and the maritime agency have listed Ali's case as a typical example of seafarers being involved in international criminal cases，they have still been unable to have any substantive impact on the Turkish authorities.

What broke Elena's heart even more than the judicial predicament was her husband's difficult situation in prison. Ali suffered from liver disease but couldn't receive the necessary medication treatment. What was even more cruel was that due to the conflict in Ukraine and the closure of the Finnish border, Elena had no chance to seek support from her family and could only bear all the pressure alone in Helsinki.

On the global shipping routes, sailors operate cargo ships, traveling through various ports and maintaining the operation of world trade. However, when they unfortunately get involved in legal disputes, they often become vulnerable groups due to their special identities and the difficulty of cross-border legal protection. Ali's experience is not an isolated case; behind it are the potential risks faced by countless sailor families. At this moment, Elena's struggle is not only for her husband's freedom, but also for more people to pay attention to the plight of the seafarers' rights and interests. Sailors should not be made scapegoats for international crimes, nor should they waste their lives in unjust prisons. We hope that justice will arrive soon, allowing Ali to return to his wife's side and enabling this broken family to regain hope.