Fire Cleanup Underway as Blaze Continues to Smolder in Bulker’s Cargo Hold 

Fire crews at the Port of Aberdeen in Scotland have spent several days battling a cargo hold fire aboard a Panama-flagged bulker docked in the port. The ship and the port are reported to be in no immediate danger as several fire departments and specialist teams worked to extinguish the blaze.

The Japanese-owned bulker Lowlands Diamond, a Handymax bulker (39,996 dwt) reported the fire to the local authorities on Monday, January 27, as the ship was making its way to the South Harbor at the Port of Aberdeen. Local media showed pictures of multiple fire engines alongside on the dock assisting with the stubborn fire.

A spokesperson for the fire department said the blaze was contained to a cargo hold on the vessel which was built in 2023. She is approximately 600 feet (183 meters) in length and was reported operating under a time charter to Coblefret.

Fire officials did not report what was burning but said it was a “complex and unusual” operation that they expected would last for days. They later said it would require removing the burning cargo from the hold. 

The local Press & Journal newspaper today published pictures of boxes or bales saying it was “charred cargo” from the vessel. It was cordoned off by a ring of shipping containers. Another report said there were “heaps of burnt cargo being removed from the vessel.”

The Port of Aberdeen issued a statement saying it was coordinating with the fire teams and thanked them for their effort. They reported operations at the South Harbor had not been disrupted by the fire.

 

 

 

 

Canada Aims to Restore Reliable Ferry Service on Critical Route to PEI 

Canada is hoping to restore reliable ferry transport on the critical Prince Edward Island (PEI) and Nova Scotia route following the arrival of ro/pax ferry MV Northumberland. The government acquired the ferry in November 2023 as an interim replacement for the former MV Holiday Island which was taken out of service after a fire in July 2022.

The 130-meter (426-foot) Northumberland, formerly MV Fanafjord, arrived in Pictou, Canada on the north shore of Nova Scotia on January 26 after a 5-week trip from Norway.  The Canadian Coast Guard sent a notice that it would be conducting ice-breaking operations around Pictou to make it possible for the ferry to complete the last miles of its trip.

The vessel is expected to undergo final refit work before commencing service at the beginning of the 2025 operating season. The 2007-built ferry with a capacity of 600 passengers and 180 vehicles will serve on the critical route that has been experiencing challenges since the Holiday Island engine room fire.

The federal government purchased Fanafjord for C$38.6 million (US$27 million) after it faced strong pressure to restore reliability on the PEI and Nova Scotia route. The ferry, which will be operated by Northumberland Ferries Limited, will serve on the route until a successor for Holiday Island is built and ready to enter service in 2028. Holiday Island was one of two vessels used to provide service on the route, the second ferry being MV Confederation.

Confederation plowed into a pier on Prince Edward Island in September 2024 causing a dent and structural damage. The operator Northumberland Ferries later blamed a mechanical failure reporting the visor needed repairs that would require several months. It was hoping to place the vessel back in service by December before the route closed for the winter. After the accident with Confederation, the company was down to just one ferry running four trips a day but then in September MV Saaremaa, leased from Quebec's ferry service, started having unending engine problems. 

The PEI and Nova Scotia ferry route is considered an essential transportation link that supports the regional economy and provides employment for approximately 200 people. The route contributes about C$39 million (US$27 million) to the regional economy annually. During the summer months, both are popular tourist destinations.

“After an extremely disappointing season, I’m so pleased to see the MV Northumberland arrive in Canadian waters,” said Lawrence MacAulay, Minister of Agriculture. “Our government fully understands the importance of a safe, reliable two-vessel ferry service, and we are committed to restoring this vital transportation link for all of the families, local businesses, and tourism operators who depend on it.”

The government’s acquisition of Northumberland falls under its Ferry Services Contribution program which ensures that federally-owned ferry assets are part of a safe, reliable, and affordable transportation system. Through the program, the government provides funding to private operators for ferry operations and maintenance. Currently, the government owns four ferry vessels and six shore facilities that are leased to operators.   

After the repeated mishaps, the federal government called Northumberland’s frequent service problems unacceptable. The day after the new ferry arrived in Canada, the press reported the government had ordered an audit of the company. Transport Canada has published a request for an independent company to commence the audit.

The company was established in 1941 to provide the critical ferry service. The route to Prince Edward Island is due to resume in May 2025 for the summer season. The company with its sister brand Bay Ferries also maintains service from Nova Scotia to New Brunswick and to Maine.
 

 

 

Asyad Shipping Expands With Addition of 33 New Vessels

The Asyad Group, Oman’s state-owned integrated logistics group, is planning to acquire an additional 33 vessels to add to the mixed fleet operated by its subsidiary Asyad Shipping.

Asyad Shipping currently operates 22 crude tankers, 34 product tankers, 10 gas carriers, and 23 dry bulk carriers, plus five container ships on its network in the Gulf, South Asia and Southeast Asia. The fleet expansion will help extend Asyad’s offering to Japan and South Korea in the East and to Europe in the West.

Asyad Shipping already has a strong position in the LNG market, with almost all its existing carrying capacity allocated on long-term contracts, and with the fleet expansion is now also being positioned to handle Oman’s fast-growing LNG production. Oman’s gas production rose to 55 bcm in 2024, up five percent on last year’s output, and Asyad enjoys a privileged position as the national shipper. It is also well-positioned to benefit from Oman’s projected growth in green hydrogen production, powered by solar and wind energy, which is also largely forward-sold.

The expansion is budgeted for up to $2.7 billion, to be borrowed in medium-term loans from local and international banks.  As part of a broader IPO program for the wider group, Asyad intends to offer 20% of the shares in Asyad Shipping on the local Muscat Securities Market in February, raising $1 billion, and then expects to pay out $150 million in dividends this year.

Since being founded in 2003 as part of Oman’s Sovereign Wealth Fund, Asyad has climbed steeply to be rated by Forbes as the fourth largest logistics company in the Middle East North Africa region. The announced expansion will enhance this position further. 

Asyad enjoys economies of scale because of base domestic demand, and thus additional carrying trade elsewhere can be offered at better rates. The group plays on Oman’s historic sea-faring tradition, unique in the Gulf, but has not been frightened to take on international partners. Its Salalah Port is partnered with APM Terminals; Sohar Port (soon to be connected with the UAE by rail) with Hutchinson and the Port of Rotterdam; and Duqm with Consortium Antwerp Port. As distribution hubs, these ports offer the benefit of being on the direct route between Suez and Asia, saving three days’ sailing and higher insurance premiums necessitated by passage through the Straits of Hormuz. As an integrated logistics company, Asyad also offers free zone, local distribution and air cargo facilities.

 

 

India Plans to Spend $3 Billion to Support its Maritime Sector

India has firmed up its ambition to become a global maritime powerhouse, with the government allocating around $6 billion to the shipping sector in the 2025-26 fiscal year. On Saturday, India’s Finance Minister Nirmala Sitharaman presented to Parliament budget documents, revealing billions of dollars the government intends to spend in upgrading the country’s maritime infrastructure.

The government has proposed financial assistance of $3 billion to help set up a Maritime Development Fund (MDF). The government will contribute 49 percent of the fund with the remaining balance to be contributed by port authorities and the private sector. The fund will be accessed via equity or debt options. Primarily, the fund is targeted in financing ship acquisitions, consistent with the government policy of boosting Indian-flagged ships’ share in the global market by up to 20 percent by 2047. In addition, an indigenous fleet will reduce India’s dependence on foreign ships, improving the balance of payments. The government believes that by 2030, the MDF will be generating up to $17 billion in investment in the shipping sector.

“It is reassuring to see that the budgetary initiatives for India’s marine sector are focused on unlocking its vast potential and enhancing existing assets through upgrades, modernization and automation,” said the Minister of Ports, Shipping and Waterways (MoPSW), Sarbananda Sonowal.

Support to domestic shipbuilding is another key highlight of the budget. Recently, MoPSW announced the development of shipbuilding clusters to be established in five states. Each cluster will have capacity for up to 1.2 million gross tonnes per year. This initiative is in line with the government’s goal of making India a top-10 player in the global shipbuilding market by 2030.

To support this scheme, the 2025-26 budget will provide capital for facilitating the creation of breakwaters and dredging at the designated clusters. Further, the government has proposed a 10-year rent holiday for the land, if not provided at a nominal rate. There is also an additional allocation of $700 million to existing shipyards for upgrades and automation.

Meanwhile, the budget has extended the Shipbuilding Financial Assistance Policy (SBFAP) with an allocation of $2 billion. The SBFAP initiative provides financial subsidies to Indian shipyards, helping to offset operational cost disadvantages.

Notably, the budget will support the Shipbreaking Credit note. This scheme is intended to incentivize ship scrapping by issuing a credit note of 40 percent of the scrap value, which can be reimbursed to buy a new modern vessel built at a domestic yard.

 

 

ReCAAP Sounds Alarm About Tripling of Robberies in Singapore Strait in 2025 

The monitoring and coordination operation for piracy and criminal activity against shipping in Asia, ReCAAP ISC, issued a new alert on February 3 highlighting that the number of robberies has nearly tripled in the Singapore Strait this year. They report that just over a month into 2025, there have now been 11 incidents all in a specific area near the western terminus and often grouped in a short interval of time.

“ReCaap ISC alerts the maritime community on the continued occurrence of incidents of sea robbery onboard ships while underway in the Singapore Strait, and warns of a possibility of further incidents,” is emboldened at the top of the new alert.

This comes after reports that two more vessels were boarded overnight on February 3. Ambrey Analytics says a tanker and bulker were each boarded approximately 15 minutes apart from each other. Four individuals were seen on a bulker with what appeared to be knives and guns. Shortly thereafter, there was a second report of six individuals on a product tanker armed with knives.

ReCaap notes that the incidents have occurred within short intervals, with two reports each in the early morning hours on January 26 and February 3 and two other reports overnight between January 28 to 29.  All of them took place in the eastbound lane and were near the western end of the Singapore Strait near Indonesia.

Of note is that the perpetrators now appear to be armed with knives or possibly guns whereas in the past they were often unarmed. ReCAAP highlights of the 11 reports this year, four times there were indications of guns or gun-like objects, five reports of perpetrators with knives, and two reports did not specify if there were weapons involved.

In one case a chief engineer’s hands were tied by the perpetrators but no one was injured. In the past, the boarders most often fled when they were spotted and rarely came in direct contact with a vessel’s crew.

Most of the crimes continue to be robberies. Engine spare parts were reported stolen in seven of the current incidents. 

ReCAAP notes that in 2024 there were only four incidents reported between January 1 and February 3. Based on the persistence and common nature of the incidents they warn that there may be further incidents in the future.

They are urging littoral states to increase patrols and surveillance in the respective waters and to respond promptly to reports coming from the ships. They also recommend coordination and information sharing to aid in the arrest of the criminal groups conducting these robberies. For ships, they note there is particular concern during the hours of darkness. They recommend adopting preventive measures and intensifying vigilance and look-outs while transiting the areas of concern.

Security consultants and ReCAAP warned in 2024 that robberies were increasing in the Singapore Strait. The current wave however is of particular concern due to the number of incidents and the more aggressive nature of the perpetrators.
 

 

 

Maritime fund to spur Rs 1.5 trn investment by 2030: Sarbananda Sonowal

Finance Minister Nirmala Sitharaman has announced measures for India’s near-absent shipping and shipbuilding economy: A Maritime Development Fund (MDF), cheaper finance for large ships, a recycling scheme, and industrial clusters. The Rs 25,000 crore MDF will give a strong start to India’s shipbuilding journey, Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal tells Dhruvaksh Saha in a written interview. Edited excerpts:

 

When will the MDF be launched and how will it operate?

 

We envision establishing it with an initial target corpus of Rs 25,000 crore till 2030, with 49 per cent equity investment from the central government and 51 per cent from major ports, financial institutions, private investors, and sovereign funds, among others. Additionally, multilateral agencies and international development banks are potential partners for funding support. The government is working on its launch through a structured approach. Key aspects like the fund’s structure, the type of legal entity to be adopted for it, investment strategy, fund-management framework, governance, compliance mechanisms, etc are being finalised. It is awaiting Cabinet approval, which is a critical milestone before its formal rollout. By 2030, the MDF is expected to generate Rs 1.3-1.5 trillion of direct and indirect investment. Additionally, the significant employment multiplier will boost direct and indirect jobs of up to 1.1 million.

What will the government offer in the shipbuilding financial assistance plan (SBFAP)?

 

We have envisaged around Rs 18,000 crore for SBFAP 2.0. This corpus will primarily be allocated financial aid to shipbuilders, allowing them to expand the production capacity, modernise infrastructure, and enhance technological capabilities. It proposes to offer subsidies on the contracted price or fair value for vessels constructed in India from 2024 to 2034. It will also cover existing committed liabilities from the first SBFAP. A key feature of the revamped policy is the introduction of a credit-note mechanism, which will facilitate the purchase of replacement vessels from Indian shipyards by ship owners which have scrapped their vessels in India. The policy is currently awaiting Cabinet approval.

The first SBFAP did not produce the desired outcomes for the government. What was your learning and how does SBFAP 2.0 address them?

 

Shipbuilding is a long gestation industry and shipyards take up projects that can be multiyear in nature. Therefore, while the industry wanted to take advantage of the scheme, they were limited by their ability to react and retool. The uptake of funds, including the disbursed amount, has risen in the past two-three years as the first scheme has been paying out and a substantial amount of the funds has been allocated as committed liabilities, which will be paid to shipyards after their contracts with their customers end.

Another key learning from the first scheme was that financial assistance was capped at Rs 40 crore, which did not incentivise the production of larger, more expensive ships, which are greater in demand globally. This cap has been removed in SBFAP 2.0 and we expect a greater uptake. Under the first SBFAP, the subsidy was set at 20 per cent of the contract price for ships in 2016-17 with gradual cut by 3 per cent every three years. SBFAP 2.0 proposes a flat, non-reducing subsidy rate. Also, it will give greater financial assistance for specialised and green-fuelled ships to promote their adoption

 

Has any large domestic or foreign shipbuilder shown an interest in being part of the shipbuilding-cluster programme?

 

The ministry has reached out to leading global shipbuilders, especially those from South Korea and Japan, which are among the top three shipbuilding nations. Ministry delegations, which included industry partners, have visited these countries and their delegations came to India, with multiple rounds of discussion with state governments and our ministry. There is a keen interest in collaboration from both Indian as well as foreign shipbuilding companies and we expect it to materialise into a partnership very soon.

 

What is the progress on shipbuilding and repair clusters with state governments?

lmost all coastal states have shown a keen interest in establishing shipbuilding clusters. The ministry is working with state governments, the Department for Promotion of Industry and Internal Trade, and major ports to help identify potential locations. Their feasibility is being studied for setting up shipyards as well as land for Tier-I, -II, and -III ancillaries along with necessary road, rail and air connectivity, utilities, and social infrastructure. Many states are developing targeted shipbuilding policies to attract investment.  

How much investment is expected in the shipbreaking and recycling sectors, following the Budget announcements?

 

The global shipbreaking market was valued at $3.98 billion in 2023 and is projected to grow to $7.64 billion by 2032, with a compound annual growth rate of 8.2 per cent. Being the top-ranked player in shipbreaking, India is well positioned to attract a significant share of this growing market.

 

 

 

 

 

 

Crew abandon Hong Kong-flagged container ship in Red Sea as fire engulfs

It wasn't immediately clear what caused the fire in the Red Sea, which has been repeatedly targeted by attacks from the Houthis

The Red Sea is home to coral and marine life that previously has been threatened by burning ships from the Houthi campaign and the threat of wider oil spills. | Representative Photo: Bloomberg

An explosion struck a Hong Kong-flagged container ship on Tuesday travelling north through the Red Sea, sparking a major fire that forced its crew to abandon the vessel, shipping industry officials said.

The ship was drifting and ablaze some 225 kilometers (140 miles) off the coast of Hodeida, a port city in Yemen held by the country's Houthi rebels, said the Diaplous Group, a maritime firm.

It wasn't immediately clear what caused the fire in the Red Sea, which has been repeatedly targeted by attacks from the Houthis. The rebels said last week they were was limiting their assaults following a ceasefire in the Israel-Hamas war in the Gaza Strip. The Houthis did not immediately acknowledge the fire incident.

The vessel was abandoned and the crew later rescued unharmed, another maritime industry official told The Associated Press. The official spoke on condition of anonymity as authorization hadn't been given to speak publicly about the incident.

The official described the cargo aboard the vessel as dangerous, without immediately elaborating. The name of the vessel wasn't released.