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MBC: Algoa Bay unable to capture bunkering opportunities from Red Sea crisis

Moratorium was not just “an ill advised decision; it was a significant misstep that hampered South Africa’s golden opportunity in the maritime sector,” says Maritime Business Chamber.

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Algoa Bay MarineTraffic / Bernd Bölscher

Non-profit company Maritime Business Chamber (MBC), based in South Africa, on Wednesday (27 December) said the shutdown of Algoa Bay offshore bunkering due to the “abrupt moratorium” imposed by the South African Revenue Services (SARS) has hampered the country’s opportunity to meet high bunker fuel demand due to the Red Sea crisis. The following is the full statement by MBC on the matter:

The outbreak and escalation of the geo-political military conflicts in the Middle East have abruptly disrupted international shipping along the world’s busiest sea route through the Suez Canal, turning the traffic towards South Africa’s Cape Sea route and coast. Since maritime transport makes up 90% of international trade, the effects of the Red Sea blockade are likely to be felt in higher energy and food prices, rising costs of moving goods and disruptions in supply chains.

The Suez Canal has benefited from the drying up of the Panama Canal, caused by a severe drought linked to El Niño. The Panama Canal’s reduced capacity has forced shipping companies to reroute through the Suez Canal, particularly for U.S. grain exports and other bulk cargoes. This rerouting has increased traffic and potential revenue for the Suez Canal, highlighting its strategic importance in global shipping amidst environmental and logistical challenges. Now, the Suez Canal is under threat.

The crisis presents South Africa and its maritime industry with massive economic and commercial opportunities to generate beneficial value in a substantial global dollardenominated market whilst playing a significant role in rescuing international shipping and rendering the Cape Sea Route commercially viable despite the Middle East disruptions.

That conflict has again re-asserted South Africa’s Cape Sea Route as the only feasible alternative and one of the world’s significant and enduring sea routes for international trade.

The disruptions of the Red Sea Route, which handles annually 17,000 ships constituting 12% of global trade, which includes 30% of global container traffic and 7 million barrels of oil (UNCTAD), and the diversion of such massive traffic comes with many direct operational challenges, including likely delivery delays and shortages, rising shipping and trade costs.

However, the critical question for South Africa is how its maritime industry rescues international shipping and still manages to capture the significant beneficial economic and commercial value of this massive global shipping trade market. The answer lies in providing the required critical maritime services efficiently, reliably, and consistently. One such critical service is the marine bunker fuel service.

Already, with the adoption of Operation Phakisa – Ocean Economy, South Africa had been positioned and marketed as an attractive International Maritime Center that reliably and efficiently provides critical maritime services needed by large international fleets as they circumnavigate the Cape Sea Route along its long 3,000km long coast, in-shore, and off port limits. Providing Offshore – Off Port Limits (OPL) marine bunkering services to passing ships has been one of the critical strategic target initiatives to make the Cape Sea Route viable, competitive, and attractive for international shipping.

In the present crisis, 5 out of the six biggest shipping companies have already announced their decision to divert their ships through the Cape Sea Route. In almost all cases, in deciding on and planning for the new route for their mega carriers (cargo ships), there will be a tradeoff between loading more cargo (which means more revenue) or more fuel (which is a significant cost item). If mid-way along the extended journey, there is to be a reliable and efficient bunker fuel centre, then the ship will consider the route to be economically viable; they will take less fuel and load more cargo to offset the high voyage costs and generate more Revenue.

In that context, one of the best and most successful business innovations in offering offshore maritime logistics services was establishing the international Marine Bunkering Services Center in Algoa Bay, off Gqeberha. The business targeted the passing maritime traffic of about 30,000 ships not headed for any of the South African ports. In under five years, that business had attracted thousands of ships requiring many different services, mainly from the tens of Small and Medium Enterprises. It has created employment opportunities for thousands in the Country.

Unfortunately, on September 12, 2023, the industry was brought to a screeching halt by the abrupt moratorium imposed by the South African Revenue Services (SARS) on Offshore – Off Port Limits (OPL) operations, including vital marine bunkering services, was not just an ill advised decision; it was a significant misstep that hampered South Africa’s golden opportunity in the maritime sector. This blockade, amid a global shipping crisis caused by the Red Sea route disruption, is short-sighted and economically damaging. 

The crisis in the Middle East has presented South Africa with a rare and lucrative opportunity. By serving as an alternative route through the Cape Sea Route, South Africa gains immensely from redirecting global maritime traffic. This is not just about redirecting a few ships; it’s about tapping into a worldwide trade artery that could bring substantial economic growth and boost tourism and employment opportunities to the region. The potential benefits are staggering increased international trade, heightened global standing in maritime logistics, and a boost to the local economy through job creation and business opportunities. 

However, SARS’s moratorium threatens to squander this unparalleled opportunity. By halting critical maritime services, they are causing immediate disruption to global trade flows and significantly impeding South Africa’s ability to seize a pivotal role in international shipping. This is when South Africa should be capitalising on this geopolitical shift, not retreating due to regulatory hurdles. 

SARS must reassess its position with the utmost urgency. The continuation of this moratorium is indefensible when weighed against the potential benefits to both the South African economy and the global shipping industry. The maritime industry’s willingness to engage with SARS and find a workable solution underscores the critical nature of the situation. Any further delays in lifting this moratorium will not only hinder the growth of South Africa’s maritime sector but also reflect poorly on the country’s ability to adapt and capitalise on global economic shifts. The time for action is now. South Africa has the chance to participate in and significantly benefit from the global maritime economy. Letting this opportunity slip due to regulatory overreach would be a grave error with long-term consequences for the nation’s economic and commercial landscape.

Related: ENGINE: Suppliers and authorities still working to resolve Algoa Bay bunkering crisis – sources
Related: ENGINE: Algoa Bay closure spurs surge in bunker calls at nearby ports
Related: South African Revenue Service issues media statement on detention of bunkering vessels
Related: ENGINE: Algoa Bay bunkering at a standstill as authority detains barges – sources

Photo credit: MarineTraffic / Bernd Bölscher
Published: 29 December, 2023

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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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Alternative Fuels

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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