Reports - Propeller Club of Northern California

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Pasha Boasts New LNG Powered George III Will Substantially Reduce Emissions

Posted on September 7, 2022September 7, 2022 by propellerclub

With the arrival of Pasha’s new George III at the Port of Oakland on August 31st, Ed Washburn, Senior Vice President Fleet Operation, Pasha Hawaii, said the LNG powered ship will substantially reduce or eliminate emissions compared to conventional diesel-powered ships.

Reduced Emissions

On September 6th, speaking to the Propeller Club of Northern California, Washburn provided highlights of how the new U.S. built vessel will reduce emissions: “In terms of emissions, particulate matter, which is a fine black dust is completely eliminated. The second pollutant is sulfur as when sulfur mixes with moisture, it creates sulfuric acid. And on these ships, that is completely eliminated. Finally, the elements that produce greenhouse gas emissions and global warming, are substantially reduced, or eliminated. So, the environmental benefit is fantastic.”

Hydrodynamic Design

Washburn said: “We are super proud of this ship. This is a proprietary design, not an off the shelf design. The hull design went through computational fluid dynamics that was optimized by Keppel (the shipbuilder). That design went to the American Bureau of Shipping (ABS) and went through an optimization process. That design then went to the Maritime Institute of the Netherlands and there they model tested the propeller and the high efficiency rudder to match the efficient hull … The model test did not produce any additional changes showing that this was an extremely efficient design.”

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Could U.S. Built and Crewed Ships Help U.S. Exporters?

Posted on June 10, 2022 by propellerclub

The United States is facing growing challenges exporting agricultural products abroad at a time when it lacks the U.S. flagged vessels to support international trade, according to panelists addressing a Maritime Day symposium entitled “Do U.S. Exporters Need U.S. Ships?”

The presentations were made before the Propeller Club of Northern California on May 16th via Zoom.

In his welcoming remarks, Jim Patti, president, International Propeller Club of the United States argued that the United States needs to build more commercial vessels as it faces shortfalls in vessel carrying capabilities for exports of agricultural goods and for energy products such as LNG.

U.S. Exporters Will Suffer Again In 2022

Paul Snell, chief executive officer, British American Shipping, Long Beach, California discussed “Challenges for U.S. Exporters in 2022.” He said that ocean carriers will likely not resume their traditional number of sailings at ports such as the Port of Oakland. This will adversely impact U.S. exporters selling to Asian and European markets in 2022.

Snell said there is a serious problem with the lack of infrastructure at ports and he particularly referenced the lack of on-dock rail which has slowed the velocity of imported containers coming into the United States as well as slowing the flow of exported containers. Snell cited the on-dock rail problem at the Ports of Oakland and Houston.

In 2021, California agricultural exporters lost $2.1 billion partly due to deficient port operations, according to a University of California, Davis and University of Connecticut report.

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Could Marine Highway Ships and Port of Oakland Relieve LA/LB Port Congestion?

Posted on June 10, 2022 by propellerclub

Paul Snell, chief executive officer, British American Shipping, Long Beach, California, suggested that a coastal feeder ship service linking the Ports of Los Angeles, Long Beach and Oakland could relieve Southern California port congestion.

Snell was speaking to the Propeller Club of Northern California Maritime Day forum on May 16th, 2022, where he discussed “Challenges to U.S. Exporters.”

Snell said there is a serious problem with the lack of infrastructure at U.S. ports.

He referenced the lack of on-dock rail which has slowed the velocity of imported containers coming into the United States as well as slowing the flow of exported containers.

Snell also suggested that a coastal vessel feeder service linking the Ports of Los Angeles and Long Beach with Oakland could relieve congestion at the Southern California ports.

He speculated that the coastal service could also provide a lower freight rate than the $3,000 trucking cost borne by importers and exporters currently having to access the two Southern California ports for imports and exports. The coastal service could also reduce the delay in retrieving chassis from Southern California which has slowed the movement of harbor truckloads to Port of Oakland customers, he said.

The expansion of coastal and inland shipping utilizing Jones Act vessels built in the United States and manned by U.S. crews has long been advocated by the U.S. Maritime Administration (MARAD) as the Marine Highway system. MARAD has designated and funded waterborne Marine Highway transport to reduce highway and port congestion.

On California’s Interstate 5 there are between 6,000 to 7,000 five axle trucks per day carrying imports and exports and other goods between Northern and Southern California, according to California Department of Transportation.

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Great Lakes Ports’ Director Outlines Infrastructure Priorities

Posted on June 10, 2022 by propellerclub

New infrastructure investments will be needed to support U.S. Great Lakes ports and their expansion, says Steve Fisher, executive director, American Great Lakes Ports Association (AGLPA).

The ports are seeing an increase in shipments of wind turbine components, some expansion of container cargoes and continued shipments of steel products and exports of agricultural products.

At the same time, a May report in Maritime Exchange has noted new containership services at the Great Lakes ports of Duluth, Minnesota, and Cleveland, Ohio:

“The rise in fuel prices has prompted renewed interest in expanding container shipping at America’s Great Lakes ports, like Duluth and Cleveland. There is potential for Port of Duluth to develop containerized dry bulk agricultural exports to Europe, where growing numbers of customers are willing to take delivery of containers of agricultural produce.”

The report went on to explain: “The Port of Cleveland played an instrumental role in developing viable container shipping between Europe and the Great Lakes when it introduced a direct service to Antwerp. A comparatively small container ship of under 1,000 TEU has feasibly carried containers between Antwerp and Cleveland, with rates that compete with the alternative option – a mega-size container ship sailing to Port of Newark followed by high-cost railway connection to Cleveland. The Port of Duluth involves an even greater railway distance (1,250 miles), making direct Duluth – Europe container shipping potentially more attractive.”

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Port of South Louisiana & Waterways Council Inc Say U.S. Infrastructure Upgrades Vital

Posted on June 10, 2022June 10, 2022 by propellerclub

New U.S. infrastructure funding will improve grain and energy shipments transported along the inland waterways thanks to improved port, lock, and dam upgrades, according to Paul Matthews, executive director of the Port of South Louisiana:

“We’re so grateful to Congress and President Biden for passing the Infrastructure Act. We all recognize the importance of infrastructure. Our port and the Mississippi River are connected to thirty-two states and two Canadian provinces.”

Tracy Zea, president, Waterways Council, Inc. based in Washington D.C. also hailed the impact of last year’s Infrastructure Act. He said new funding reduced the current $8 billion of backlogged lock and dam projects by $2.5 billion.

This leaves $5.5 billion in projects that still need funding.

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British American’s Snell Says US Exporters Face a Tough 2022

Posted on April 22, 2022April 22, 2022 by propellerclub

Smaller U.S. West Coast ports, including the Ports of Oakland, Seattle and Tacoma are experiencing ocean carrier service cutbacks that are adversely impacting U.S. agricultural exporters, according to Paul Snell, president of Huntington Beach, CA-based British-American Shipping.

The export situation is likely to remain challenging for the remainder of 2022, Snell said.

California Exporters Lost $2.1 billion in 2021

Snell was speaking to the Propeller Club of Northern California on April 19th.

In February, the U.S. Department of Agriculture announced that final 2021 trade data showed that exports of U.S. farm and food products totaled $177 billion, topping the 2020 total by 18 percent.

However, in 2021, California agricultural exporters lost $2.1 billion partly due to California port operations and high import freight rates, according to a University of California at Davis and University of Connecticut report.

The report explained: “We found that containerized agricultural exports from California ports were $2.1 billion (or 17%) below their counterfactual level due to port congestion between May and September 2021. California farmers bore the brunt of these losses, with tree nuts, wine, rice, and dairy products suffering significant economic damages. The annualized economic impact is by far larger than that of the 2018 U.S.-China trade war, which caused economic losses of about $500 million to California agriculture.”

The report said that 97,000 fewer export containers shipped in 2021 contributing to the $2.1 billion loss: “California ports handled about 97,000 fewer container exports (measured in TEUs) loaded with agricultural products compared to the counterfactual scenario. This amounts to $2.1 billion in lost foreign sales.”

The report entitled “Containergeddon” and California Agriculture partly blames inefficiencies at California ports for the losses: “The lost farm exports mirror the fact that California ports are among the least efficient in the world. As a result, some importers now view California as an unreliable supplier of agricultural products due to inferior port infrastructure.”

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GSC’s Arsenault: Space Now More Important Than Cost

Posted on April 6, 2022April 6, 2022 by propellerclub

Dave Arsenault, president of Oakland, Ca based GSC Logistics and a former president of Hyundai Merchant Marine America, warned that container space has become a more important factor than cost for booking imports and exports on ocean carriers.

“Cargo owners are a bit gun shy right now. For the last few years, they have so much disruption and distress in their supply chains that the cost of service is … secondary to space.”

Arsenault went on to predict that freight rates would stay high: “The demand exceeds the supply. This means that rates are not going to be coming down, if anything will maintain or even increase, in some markets.”

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Jensen warns Russia-Ukraine conflict might generate cyberattacks on ports

Posted on February 9, 2022February 9, 2022 by propellerclub

Container shipping analyst Lars Jensen, the principal at Copenhagen-based Vespucci Maritime Consulting, warned that tensions between Russia and the Ukraine could spill out into cyberattacks on critical infrastructure, including ports.

Jensen warned the element of risk has risen drastically in the last weeks. “I cannot stress enough how seriously this should be taken.”

Jensen was addressing the Propeller Club of Northern California (PCNC) on February 8th.

Recalling the 2017 cyberattack that shut down the ocean carrier Maersk, Jensen said:

“Remember that in 2017 Maersk was brought down by a cyberattack. They were completely down for a week, and it took several weeks to get back up and running. Maersk was purely collateral damage of a Russian-backed cyberattack on the Ukraine. Several thousand companies got hit on that attack.”

Today the risk of damage could be far worse: “Fast forward to the situation right now with Russia on one side and NATO and the Ukraine on the other… In the last few weeks, authorities in Britain, Canada and the United States have warned that this is a significant risk against critical infrastructure. So, this threat has to be taken very seriously. U.K. authorities are reporting cyber activities that are very similar to those that preceded the cyberattacks of 2017.”

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Port of Oakland ship turning basins study ready for public review

Posted on January 18, 2022January 18, 2022 by propellerclub

U.S. Army Corps releases draft Integrated Feasibility, Environmental Assessment

Oakland, Calif. – Dec. 20, 2021:The Port of Oakland, in partnership with the U.S. Army Corps of Engineers (USACE) San Francisco District, has reached a key milestone in the planning process to widen the Oakland Harbor turning basins to accommodate larger container ships calling North America.

The comment period starts today, Monday, December 20, 2021, for the USACE draft Integrated Feasibility Report and Environmental Assessment (IFR/EA). Interested parties have until January 31, 2022, to submit comments.

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Storms, Flooding & Sea Level Defense Conference Focuses on Dredging, Ports & Nature Based Solutions: U.S., Singapore & Netherlands

Posted on November 8, 2021November 8, 2021 by propellerclub

The fourth Storms, Flooding and Sea Level Defense conference focused on nature -based solutions to defense against flooding and storm surges impacting coastal communities and ports in the United States. Panelists also discussed new developments in Singapore and the Netherlands.

The November 3rd conference took place virtually and was a joint production of the Society of American Military Engineers and the Propeller Club of Northern California.

Jim Patti, President, ‎International Propeller Club of the United States emphasized the importance of a strong merchant marine and a U.S.- built Jones Act fleet to support increased maritime growth in areas such as dredging and maritime commerce.

SOCIETY OF AMERICAN MILITARY ENGINEERS

Retired Brigadier General Joseph Schroedel, Executive Director, Society of American Military Engineers welcomed the participants and urged collaboration between maritime and coastal stakeholders in addressing resiliency challenges.

Arvind Acharya, President, Society of American Military Engineers, San Francisco praised the participation of SAME chapters in the conference and for supporting of resiliency goals.

The speakers and subject titles were as follows:

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Growing Flood Threat to US Infrastructure: First Street

Posted on October 14, 2021October 14, 2021 by propellerclub

A new report “The 3rd National Risk Assessment: Infrastructure on the Brink”, found that there is a growing risk of flooding and major disruptions to U.S. infrastructure.

The report produced by the Brooklyn, N.Y.-based First Street Foundation found:

Over the next 30 years, “due to the impacts of climate change, an additional 1.2 million residential properties, 66,000 commercial properties, 63,000 miles of roads, 6,100 pieces of social infrastructure (schools, churches, government buildings, etc.) and 2,000 pieces of critical infrastructure (ports, fire stations, etc.) will also have flood risk that would render them inoperable, inaccessible, or impassable.”

Roughly 25%, or 1 in 4 of all critical infrastructure in the country are at risk of becoming inoperable, which represents roughly 36,000 facilities.

In addition, “23% of all road segments in the country (nearly 2 million miles of road), are at risk of becoming impassable.”

Additionally, 20% of all commercial properties (919,000), 17% of all social infrastructure facilities (72,000), and 14% of all residential properties (12.4 million) also have operational risk.

The highest concentration of community risk exists in Louisiana, Florida, Kentucky, and West Virginia, with 17 of the top 20 most at-risk counties in the U.S. (85%).

Louisiana accounts for 6 of the top 20 most at-risk counties (30%) and is home to the most at-risk county in the country, Cameron Parish.

In the United States, “many infrastructure discussions over the past 20 years have been centered around possible physical attacks, energy crises, and terrorism, but climate change has a higher probability of significant impact on the Nation’s infrastructure.”

More recently the report said: “the impact of Hurricane Ida stretched across the country crippling the electrical grid in southern Louisiana, flooding the transportation infrastructure in the NYC (New York City) metro area, and killing nearly 100 people. It is clear, now more than ever, that the ways and places in which we live are likely to continue to be impacted by our changing environment. One of the most important implications in this development is the vulnerability of our national infrastructure.”

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California Propeller Clubs’ Meeting Focuses on Railroads’ Impact on California Ports

Posted on September 20, 2021September 20, 2021 by propellerclub

The Propeller Clubs of Northern California and of Los Angeles and Long Beach convened a joint forum to discuss the impact of U.S. railroads on California ports.

On September 14th, maritime stakeholders from Northern and Southern California attended the virtual event where they heard the following reports:

Jessica Alvarenga, government affairs director Pacific Merchant Shipping Association (PMSA), reported that average rail dwell time for containers moving on rail destined for Midwest destinations from the Ports of Los Angeles and Long Beach averaged “11.8 days in June.”

However, on September 17th, PMSA reported the rail dwell time had declined to 8.2 days:

“Dwell time in August for containers leaving via rail was down compared to the month before. The railroads worked hard to drop the average dwell time for containers leaving via rail to 8.2 days, down from 11.3 days in July. 42.7% of containers leaving on rail remained on terminals for more than 5 days, also down from 53.4% the month before.”

In January of 2021 the average rail dwell time at the two Southern California ports was “7.9 days,” Alvarenga said.

She explained that the rail dwell time is measured from the time the container “leaves the terminal once it’s been offloaded from the vessel” until the container departs by rail for Midwest destinations.