JUPITER SEA & AIR
SERVICES PVT. LTD, EGMORE – CHENNAI, INDIA.
E-MAIL : Robert.sands@jupiterseaair.co.in Mobile : +91 98407 85202
Corporate News
Letter for Monday February
16, 2025
Today’s
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/// Sea Cargo News ///
Alternative fuels are here, but liability frameworks
are not
For decades, pollution risk in shipping was built around a stable and well-understood threat profile. Conventional persistent oil spills – from bunkers or cargo – dominated planning assumptions, supported by globally established response practices and international liability and compensation conventions.
These frameworks
provided clarity not only for regulators and responders, but for shipowners
making commercial decisions with a clear understanding of their
exposure. Alternative fuels behave very differently to conventional oils. Response
priorities shift from environmental remediation to containment, detection and
human safety.
The problem is that the international
pollution conventions the industry has relied on for decades are largely
fuel-specific, predicated on the pollutant being a persistent hydrocarbon
mineral oil. Most alternative fuels therefore sit outside these frameworks
entirely. When that happens, the benefits of the convention system, like strict
liability, compulsory insurance and automatic rights of direct action against
insurers, fall away. Compensation is still available, but it depends on local
law, with outcomes varying widely between jurisdictions.
For shipowners, this introduces a level of
uncertainty that is difficult to price, insure, or manage contractually. For
ports, regulators, and claimants, it risks delay and inconsistency when clarity
matters most.
Ammonia is a clear example of how this gap is
emerging in practice. Its decarbonisation potential is well recognised, but so
are its hazards. A release may not leave a visible pollution footprint, but the
consequences can be severe. As a result, ports, regulators, and industry bodies
are already investing in preparedness.
The industry has been here before.
International liability and compensation conventions were developed after
fragmented national approaches proved inadequate following major casualties,
most notably the Torrey Canyon oil spill.
That incident directly triggered the creation
of the Civil Liability Convention, later complemented by the Fund, Wreck and
Bunkers Conventions, forming the IMO framework relied upon today......Together,
these conventions introduced strict liability, compulsory insurance, and
reliable compensation.
Crucially, they enabled shipping to operate
globally with a clear understanding of pollution risk......Today, the fuels may
be different, but the lesson remains the same. Alternative fuels are already
entering service. As uptake increases, so too will the likelihood of incidents
that test existing frameworks. Waiting for a major casualty to expose these
shortcomings would be a costly mistake.
The energy transition will only succeed if it
remains commercially viable, operationally safe, and legally insurable. Closing
the liability blind spot around alternative fuels is not a regulatory detail.
It is a prerequisite for confidence, investment, and long-term
adoption.
Victoria
International Container Terminal extends contract at Port of Melbourne to 2066.
Port of Melbourne and VICT announced the extension today, which will see
VICT continue to operate and manage the Terminal until 2066.
This moves the expiry date from 2040 and results in a remaining contract
life of 40 years at Australia’s largest general cargo and container port.
ICTSI has made long term investments in VICT since the original lease
was agreed in 2014 and is currently implementing a new investment program
scheduled for completion in late 2027. This includes a new neo-Panamax
ship-to-shore quay crane, four hybrid automated straddle carriers and the
extension of two container stacking blocks.
The Port of Melbourne has seen substantive growth in recent years,
including record trade in FY25, when it handled approximately US$154 Billion in
trade. This is expected to continue, with container trade at the port forecast
to double over the next 30 years.
The agreement will take effect upon the satisfaction of customary
conditions precedent applicable to transactions of this nature.
Container lines place additional
newbuilding orders across multiple size segments
Several container shipping companies have placed additional newbuilding
orders, extending previously announced fleet expansion programmes across a
range of vessel sizes.
MSC has ordered eight additional LNG dual-fuel containerships of around
11,500 TEU at Penglai Zhongbai Jinglu Shipyard. The latest order follows
an earlier contract for eight vessels placed in September 2024, bringing
the total series at the yard to 16 ships. All of the newly contracted vessels
are scheduled for delivery in 2029.
Zhonggu Logistics has also expanded its orderbook, booking two more
6,000 TEU vessels on top of those reported earlier. The additional ships will
be built by Jinling Jiangsu, with each vessel priced at USD 83.5 million. Deliveries are planned for 2028.
Meanwhile, SITC has exercised options for two additional 2,700 TEU
containerships at Huanghai Shipbuilding. The vessels are priced at USD 38.2
Million each. The option exercise follows an initial order for four ships
placed in August 2025, bringing the total series to eight vessels, with
deliveries scheduled between late 2027 and March 2029.
The latest contracts underline continued investment by container
carriers in fleet renewal and capacity growth, spanning large, mid-size and
regional vessel segments.
Panama Canal marks milestone with
transit of Disney Adventure
The Panama Canal has marked a major milestone with the inaugural transit
of the Disney Adventure, the largest neo-panamax cruise ship ever to cross the
waterway.
The vessel is the biggest passenger ship by both capacity and gross
tonnage to transit the canal. The operation took place during the ship’s
positioning voyage and highlighted the canal’s ability to handle large-scale
cruise transits with precision.
Disney adventure has a gross tonnage of 208,000 and can carry around
6,700 passengers. She is operated by Disney Cruise Line. Panama Canal
Administrator Ricaurte Vasquez Morales presented a commemorative plaque to the
vessel during the transit through the Agua Clara Locks in Colon province.
The ship measures 342 meters in length and 46.4 meters in beam. The
transit required extensive coordination and followed strict safety procedures.
The milestone sets a new record for the canal. The previous record
holder was Norwegian Bliss, at 168,000 gross tons and 5,000 passengers. Disney
Adventure surpasses that benchmark by around 40,000 gross tons, or 24%.
Disney Adventure is one of five cruise ships making inaugural transits
during the 2025-26 Cruse season, alongside AIDAdiva, Brilliant Lady, Celebrity
Ascent and Star Seeker. The Panama Canal expected more than 40 neo-panamax
cruise transits in this fiscal year of 2026.
Buil at Meyer Werft shipyard in Germany, Disney Adventure joined the
Disney fleet in 2025. She is homeported in Singapore, operating three and four
night cruises.
The ship offers 2,111 staterooms and carries a crew of around 2,500. Key
features include bow artwork of Captain Mickey, Marvel Landing, the longest
roller coaster at sea and the Disney Imagination Garden with a three deck
castle structure.
Imabari delivers 13,900 TEU
containership ONE Satsifaction
Imabari Shipbuilding has delivered the 13,900 TEU container vessel ONE
Satisfaction from its Hiroshima Shipyard on February 03, 2026.
The ship has a container intake of 13,932 TEUs and features up to four
lashing bridges on deck. It can carry a large number of refrigerated containers
in both the holds and on deck, and is also equipped to transport dangerous
goods in compliance with the IMDG Code.
The vessel incorporates several energy saving and environmental
technologies. Imabari said the hull form has been optimized using advanced
analysis tools to improve efficiency across a wide operating range. The ship is
fitted with energy saving devices, a twisted rudder and low friction hull
coating to reduce resistance in the water.
These features enable the vessel to achieve an estimated 60%
reduction in EEDI compared with the standard reference value, exceeding
current regulatory requirements. A bow wind cover has also been installed to
improve performance in real operating conditions.
To meet international emissions regulations, the ship is equipped with a
hybrid exhaust gas cleaning system (EGCS) and an exhaust gas recirculation
system (EGR) to control Sox and Nox emissions. Additional environmental systems
include ballast water treatment equipment and an inventory of hazardous
materials in line with the Ship Recycling Convention.
The vessel has also received Approval in Principle from Lloyd’s Register
for future conversion to methanol and ammonia fuels, as well as for the
installation of CO2 capture equipment.
Vessel Particulars :
Flag : Liberia Length
overall : 335.94 m Beam : 51.00 m
Depth : 30.10 m Gross
Tonnage : 140,233.
Main Engine : MAN B&W 7G95ME-C10.6.
Service speed : About 22 knots.
Class : Lloyd’s Register.
Imabari Shipbuilding delivers
40,000 dwt bulk carrier CL KIBOU
Imabari Shipbuilding has delivered CL KIBOU, a 40,000 deadweight-ton
bulk carrier, on February 05, 2026, with construction completed at Shimanami
Shipyard Co. Ltd, part of the Imabari Group.
The vessel is an ocean going bulk carrier featuring a double hull box
shaped cargo hold design with topside tanks, allowing it to transport a wide
range of cargoes. These include bulk commodities such as grain, coal, ore and
cement as well as steel products including steel coils and long sized steel.
CL KIBOU is equipped with four deck cranes, while each cargo hold has a
wide hatch opening fitted with folding type hatch covers, supporting flexible
and efficient cargo handling operations.
From an environmental standpoint, the vessel complies with applicable
international regulations, including the MARPOL Convention and the Ballast
Water Management Convention. In terms of carbon dioxide emission control, the
ship meets not only Phase 2 requirements but also addresses Phase 3
requirements ahead of schedule. The vessel is also fitted with a ballast water
treatment system and carries an Inventory of Hazardous Materials in accordance
with the Ship Recycling Convention.
High propulsion performance is achieved through the application of
energy saving devices, a high efficiency propeller and low friction paint on
the outer hull, contributing to improved fuel efficiency.
The vessel’s principal particulars include a length of 182.93 metres,
breadth of 31.00 meters and depth of 15.00 meters. It has a deadweight of
40,109 tonnes and a gross tonnage of 25,238. The main engine is a 6G45ME-C9.7,
delivering a service speed of approximately 13.75 knots. The vessel is classed
by NK and sails under the Panama flag.
Maersk orders eight large vessels
with enhanced deployment flexibility
A P Moller – Maersk has signed a contract with New Times Shipbuilding
Co. Ltd in China for the construction of eight large containerships, continuing
its fleet renewal programme.
The vessels will form a new series of 18,600 TEU ships, with deliveries
scheduled across 2029 and 2030. All eight units will share the same
specifications and are designed to offer greater operational flexibility
compared with very largest container vessels currently entering the market.
“We are pleased to have signed this agreement for eight large vessels.
The order is part of our ongoing fleet renewal and helps maintain our fleet’s
competitive edge,” said Anda Cristescu, Head of Chartering and Newbuilding at
Maersk.
With a length of 366 meters and a breadth of 58.6 meters, the ships are
shorter than the industry’s largest vessels, which can reach up to 400 meters
in length. Maersk said this more compact design was a deliberate choice to
support flexible deployment across multiple trade lanes.
“Deployment flexibility has been a key factor in our decision-making.
Although these vessels are large, they offer greater than the largest ships
currently being built in our industry. This provides us with multiple
deployment options across both our current and future network,”, Cristescu
said.
The vessel will be equipped with dual-fuel engines, capable of operating
on conventional bunker fuel as well as liquified gas. Following this latest
order, Maersk now has 33 vessels on order, with four ships scheduled for
delivery during the remainder of 2026.
Rolls-Royce eyes 10-fold jump in India supply
chain sourcing
Rolls-Royce’s prospective Indian programmes could support nearly 10,000 jobs. Auto manufacturer Rolls-Royce plans to significantly scale up its investment, workforce and supply chain sourcing in India as it looks to expand its presence across defence, civil aviation and energy segments.
The UK-based engineering major said success
in prospective Indian programmes could support nearly 10,000 jobs and lead to a
ten-fold increase in sourcing from Indian suppliers, positioning the country as
a key hub in its global supply chain network.
Exploring opportunities : Currently,
Rolls-Royce has a growing footprint in India through engineering services,
manufacturing partnerships and supplier engagements. The company said expanding
local sourcing would not only reduce supply chain dependencies but also create
export opportunities for Indian vendors integrated into its global programmes.
As part of its India growth strategy,
Rolls-Royce is exploring opportunities including the co-development of a
next-generation combat jet engine, localisation and manufacturing of engines
for the Indian Army, Navy and Coast Guard, and power solutions for critical
infrastructure and industrial applications.
The company said these initiatives would
require deeper integration with Indian manufacturing ecosystems and greater
participation of small and medium enterprises (SMEs), strengthening domestic
capabilities while improving supply chain resilience.
Rolls-Royce aims to make India a strategic
home market, aligning its operations with the government’s Viksit Bharat
vision, with a focus on national security, energy resilience, infrastructure
development and enhanced air connectivity.
“Our ambitions for India are built on the
strong foundations of our decades-long presence in the country, our growing
footprint, our deep industry partnerships, and our competitively advantaged
technologies. As we grow our participation in programmes across India’s
defence, aviation and energy sectors, we will expand our ecosystem in India, as
we have done successfully in other countries,” Tufan Erginbilgic, CEO,
Rolls-Royce said.
He further said that the company is
determined to partner India on its Atmanirbhar journey, by developing
indigenous propulsion capabilities, providing sustained power to critical
infrastructure and industry, and expanding local manufacturing for global supply
chains.
“We believe our unique portfolio of advanced
capabilities can help us grow our presence and partnerships further, to power,
protect and connect India for decades to come,” Erginbilgic added.
Recently, Erginbilgic met Prime Minister
Narendra Modi in New Delhi to discuss the company’s long-term plans for India
and the role of advanced technologies in supporting the country’s growth and
Atmanirbhar Bharat objectives in critical sectors.
Building deeper relations
The company further stated that the
announcement builds on a pivotal year for India–UK strategic cooperation and
the India-UK Vision 2035 roadmap for deeper bilateral industrial and defence
collaboration.
As India advances its next generation
military capabilities, Rolls-Royce with the UK Government, has offered to
co-develop a 120 kN class combat jet engine core that could be India’s fastest
route to an indigenous next-generation engine.
The co-development will provide full
technology transfer with IP ownership for India, supported by a dedicated
design complex and manufacturing capabilities that will unlock significant job
creation.
In India, more than 1,400 Rolls-Royce engines
are currently powering various defence platforms such as the Jaguar combat
aircraft and Hawk trainers of the Indian Air Force and Navy; the Arjun Main
Battle Tanks of the Army, and a variety of vessels and submarines of the Indian
Navy and Coast Guard including the prestigious Anti-Submarine Warfare Shallow
Watercrafts and the P17 Alpha frigates.
The company also provides mission-readiness
support and service capabilities for its MTU engines and gensets and works in
close partnership with HAL to support in-service aero engines.
Today, more than 4,000 people work across the
Rolls-Royce ecosystem in India, including 2,800 engineers who contribute to
global programmes across its businesses. The company’s long-standing industrial
footprint includes its manufacturing joint ventures with HAL and Force Motors
as well as sourcing partnerships with over 100 different vendors including
Tata, Bharat Forge, Godrej, Azad Engineering and many small and medium sized
enterprises (SMEs)
As a part of its India initiatives,
Rolls-Royce recently inaugurated its newly expanded Global Capability and
Innovation Centre in Bengalaru, which houses digital capabilities, enterprise
services, and engineering teams supporting its Civil Aerospace and Defence
divisions. Positioned to become the company’s largest capability hub, the
centre serves global corporate functions while advancing digital and
engineering expertise
Engineering talent in India is already
supporting the drive for a self-reliant India, having helped design parts of
the Trent XWB engines that power Airbus A350 aircraft, which were recently
ordered by Air India and IndiGo. Teams in Pune have also done significant work
to make Rolls-Royce’s portfolio of MTU marine engines compatible with alternate
fuels.
The company’s International Aerospace
Manufacturing (IAMPL) joint venture, meanwhile, is supporting the government’s
‘Make in India for India and the world’ project with factories in Bengaluru and
Hosur having developed the capability and competence necessary to manufacture
160 high precision aero-engine parts for the global market. IAMPL is likely to
play a key role as Rolls-Royce scales up its supply chain requirements.
US
forwarders see volumes drop and complexity rise due to tariff policy
More than 80% of US forwarders have reported
a decline in volumes as a result of the country’s tariff policy, while more
than half have noted changes to customers’ supply chains.
The figures were reported by the
Airforwarders Association (AfA) following a survey of its members.
The survey showed that as a result of US
tariff policy, 83% of respondents have experienced reduced shipping volumes,
more than half said clients’ supply chains and shipping routes had changed and
nearly half had reported increased operational costs and administrative
workload.
Members cited customs delays, airport
congestion, reduced flight schedules, and inconsistent security and
documentation processes as compounding the impact of tariffs on day-to-day
operations, the association said in a press release.
AfA executive director Brandon Fried added:
“Last year was defined by instability, with shifting trade policy, new tariffs,
and changing security and compliance requirements, making it difficult for
forwarders and their customers to plan with confidence.
“These results underline the need for more
stable, predictable policymaking to provide businesses with the confidence to
invest, plan capacity, and make longer-term supply chain decisions.”
TIACA director general Glyn Hughes said the
survey results reflect the impact of protectionism.
“As barriers go up, products and supply
chains go elsewhere, its economics 101,” he said.
“The weaponisation of tariffs to punish
countries that don’t align to current US positions has caused pain and
uncertainty.
“This has generated a global focus on a US
plus one strategy when it comes to consumption markets.
“The ending of the de minimis exemptions from
duties and tariffs has also had a negative impact.”
Hughes said the cost of manufacturing in the
US was not competitive on the global stage.
“Over 1bn people around the globe have been
elevated out of extreme poverty on the back of outsourced production. This
success is now at risk.”
The survey results are published ahead of the
AfA’s annual AirCargo Conference.
Maersk to cut 15% of corporate jobs as tariffs hit 2025 airfreight volumes
Image:
© sopear.Maersk has decided to axe around 15% of its
corporate jobs as part of efforts to cut costs, while it confirmed its 2025
airfreight volumes were affected by tariff measures.
The Danish shipping and logistics company did
not specify whether any of the jobs affected were in its air cargo business,
including its Maersk Air Cargo airline, but said that approximately 1,000
corporate positions out of 6,000 would be made redundant.
“To drive continuous productivity
improvements and maintain strong cost discipline, Maersk has announced steps to
simplify the organisation and reduce the company’s corporate overhead,” said
Maersk in a press release about its 2025 results.
“As part of this, Maersk is reducing
corporate costs across headquarters, regions, and countries with $180m
annually.
“Out of approximately 6,000 corporate
positions, around 15% – or approximately 1,000 positions – will be closed. The
required notification and consultation processes have been initiated.”
Maersk reported a “strong performance in all
businesses in 2025”, although it said its Logistics & Services business, of
which air is a part, is “not yet at full potential and further improved
performance remains a priority”.
Within the segment, fourth quarter 2025
revenue grew 1.9% year on year, while profitability improved year on year for
the seventh consecutive quarter, with the EBIT margin increasing 0.8 percentage
points to 4.9%. Improvements were driven particularly by the performance in
warehousing and e-fulfilment, said Maersk.
However, airfreight volumes for the year were
down 2.8%. Maersk handled 318,000 tonnes of airfreight in 2025, down from
327,000 in 2024.
In the fourth quarter specifically,
airfreight volumes increased by 19% year on year to 93,000 tonnes, but lower
air rates impacted the profitability of own-controlled capacity.
The company attributed the reduction in
business to the impact of tariffs.
“Air encountered significant challenges due
to tariff implications during the first half of 2025, followed by strong volume
recovery until year-end,” it said.
Maersk Air Cargo has been focusing on
building up its network in the US since its launch
in 2022.
Its hubs include Billund (BLL) in Denmark,
Chicago Rockford (RFD), Greenville-Spartanburg (GSP), Hartsfield–Jackson
Atlanta International Airport (ATL), Miami (MIA) and Los Angeles (LAX) in the
US, Chenang and Hangzhou in China, Incheon in Korea and Johannesburg in South
Africa.
Routes in 2025 included Billund (BLL) to
Hangzhou (HGH), Bournemouth (BOH) to Hangzhou (on a trial basis), between RFD
and Zhengzhou, and RFD and Hangzhou, Zhengzhou-GSP, Incheon International to
RFD and GSP.
There are also flights between Cologne-Bonn
(CGN) Germany and GSP.
Miami-headquartered cargo airline Amerijet
had a three-year agreement to operate three of Maersk’s newbuild Boeing
767-300Fs, although Amerijet’s agreement ends on 1 April and the three aircraft
have now been sold.
The three aircraft previously flew between
the US and the Republic of Korea (South Korea) and China, and by the last
quarter of 2025, the aircraft were flying between Anchorage (ANC) and GSP, ANC
and RFD and Santiago (SCL) and Panama City (PTY)
On an organisational front, Maersk said that
its Logistics & Services product portfolio will be regrouped into three
subsegments: Landside, Forwarding, and Solutions.
This grouping reflects the general product
segmentation in the industry and the fundamental differences across logistics
products in how they create value for customers, said the company.
Consequently, Landside products will be
managed locally at a country level, while Forwarding and Solutions will operate
as global product organisations.
Responsibility for the global products will
be divided between two roles, aligned with the new product categories.
Narin Phol, current head of logistics &
services, is appointed head of Solutions, and Christoph Hemmann, global head of
air product & LCL, has been appointed head of Forwarding.
With this appointment, Hemmann, who took up his former position in September 2025, will join Maersk’s executive leadership team alongside Phol.
PrimeFlight acquires GAT to expand ground handling services
PrimeFlight Aviation Services has acquired US
firm GAT Airline Ground Support to expand its ground handling services
capacity.
Headquartered in Georgia, GAT has
approximately 6,000 employees and operates at nearly 70 airports across North
America, providing ground handling, cargo handling and catering services.
Meanwhile, Texas-based PrimeFlight Aviation
Services provides airlines and airports withground handling, fuelling, cargo
handling, GSE main-tenance, aircraft services, deicing, passenger services, aviation
cleaning supplies, and terminal services, as well as general aviation aircraft
cleaning and support services, across a global footprint. Following the
transaction, PrimeFlight now operates at more than 250 airports and service locations
across six continents.
“We are incredibly excited to welcome the GAT
team to PrimeFlight and hope this transaction signals our longstanding
commitment to providing our airline partners with world class aviation
services,” said Charlotte Cheatham, chief operating officer and executive vice
president for PrimeFlight.
“This acquisition is a significant milestone
in our strategic growth plan. GAT greatly expands our ground handling footprint
and further enhances our relationship with our airline partners through the
addition of highly complementary capabilities, stations, and relationships. The
combination will allow us to leverage operational efficiencies to better serve
the industry.”
“As we join PrimeFlight, we’re incredibly
excited to become part of one of the world’s largest aviation and ground
handling organizations—one that shares our commitment to people, safety, and
operational excellence,” said Mike Hough, chief executive of GAT. “Together,
we’re positioned to build an even stronger future for our employees, our
customers, and the industry as a whole.”
While PrimeFlight will maintain its Sky Café
brand and operations for its catering services, GAT’s other operations and
brand will be fully integrated into PrimeFlight in the coming months.
Last year PrimeFlight acquired StratAir’s
cargo handling operations at MIA, RIC and SJU in the US.
I hope you have
enjoyed reading the above news letter.
Robert Sands
Joint Managing Director
Jupiter Sea & Air Services Pvt Ltd
Casa Blanca, 3rd Floor
11, Casa Major Road, Egmore
Chennai – 600 008. India.
GST Number : 33AAACJ2686E1ZS.
Tel : + 91 44 2819 0171 / 3734 / 4041
Fax : + 91 44 2819 0735
Mobile : + 91 98407 85202
E-mail : robert.sands@jupiterseaair.co.in
Website : www.jupiterseaair.com 1Branches : Chennai, Bangalore,
Mumbai, Coimbatore, Tirupur and Tuticorin.
Associate Offices : New Delhi, Kolkatta, Cochin &
Hyderabad.
Thanks to :
Container News, Indian Seatrade, Cargo Forwarder Global &
Air Cargo News.
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