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SMW 2023: Singapore, LA and Long Beach ink MoU to establish green and digital shipping corridor

Corridor aims to support transition to low- and zero-emission bunker fuels by ships calling at Singapore and San Pedro Bay port; parties will explore necessary infrastructure for bunkering.

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The Maritime and Port Authority of Singapore (MPA), Port of Los Angeles (POLA), and Port of Long Beach (POLB), with the support of C40 Cities, on Monday (24 April) signed a memorandum of understanding (MoU) to establish a green and digital shipping corridor between Singapore and the San Pedro Bay port complex.

The MoU will help support decarbonisation of the maritime industry and improve efficiencies through digitalisation.

The green and digital shipping corridor aims to support the transition to low- and zero-emission fuels by ships calling at Singapore and the San Pedro Bay port complex. The parties will work to facilitate the supply and adoption of these fuels and explore the necessary infrastructure and regulations for bunkering.

In addition to identifying and collaborating on pilot and demonstration projects, the MoU aims to identify digital shipping solutions and develop standards and best practices for green ports and the bunkering of alternative marine fuels, including sharing experiences at international platforms such as IMO.

The MoU was signed by Mr Teo Eng Dih, Chief Executive of MPA, Mr Gene Seroka, Executive Director of POLA, and Mr Mario Cordero, Executive Director of POLB, at the opening ceremony of Singapore Maritime Week (SMW 2023) and witnessed by Mr S Iswaran, Singapore’s Minister for Transport and Minister-in-charge of Trade Relations, Mr Chee Hong Tat, Singapore’s Senior Minister of State, Ministry of Finance and Ministry of Transport, Mr Jonathan KAPLAN, Ambassador of the United States to Singapore, Mr Niam Chiang Meng, Chairman of MPA, Ms Sharon Weissman, Long Beach Harbor Commission President, and Mr Edward Renwick, Los Angeles Harbor Commissioner.

C40 is the facilitator of the green and digital shipping corridor, providing support to the cities, ports, and their corridor partners by coordinating, convening, facilitating, and providing communications support in furtherance of the corridor’s goals.

As leading global hub ports, Singapore, Los Angeles and Long Beach are vital nodes on the trans-Pacific shipping lane and key stakeholders in the maritime sector’s green transition. Ahead of the revision of the International Maritime Organization (IMO)’s Initial Strategy for the Reduction of Greenhouse Gas (GHG) Emissions from Ships in July 2023, the three ports will come together with C40 and other stakeholders in the maritime and energy value chains, to jointly accelerate the decarbonisation of the maritime industry in line with the goals of IMO, and Singapore’s and the United States’ respective Nationally Determined Contributions (NDCs). 

The MoU also builds on the ports’ long-standing cooperation through platforms such as the Port Authorities’ Roundtable (PAR) and chainPORT, and complements bilateral initiatives between Singapore and the United States such as the U.S.-Singapore Climate Partnership and the U.S.-Singapore Partnership for Growth and Innovation. 

In his message at the annual Singapore Maritime Week, John Kerry, U.S. Special Presidential Envoy for Climate, said: “Shipping is responsible for approximately a gigaton of greenhouse gas emissions each year... [b]ut the good news is that many shipping companies, ports, and countries are stepping up. Today’s MoU is one of those pieces of good news!”

The MoU follows from an earlier announcement in November 2022, that MPA, POLA, POLB and C40 had begun discussions to establish a green and digital shipping corridor between Singapore and the San Pedro Bay port complex. This announcement was featured in the Green Shipping Challenge, launched by the United States and Norway during the World Leaders’ Summit at the 27th United Nations Climate Change Conference (COP27/CMP17/CMA4) in Sharm el-Sheikh, Egypt. The Green Shipping Challenge hopes to encourage governments, ports, maritime carriers, cargo owners, and other stakeholders across the maritime value chain to commit to concrete steps to galvanise global action to decarbonise the shipping industry.

Mr Teo Eng Dih said, “The signing of this MoU signals our collective will to pool our resources, technical insights, industry and research networks to deliver scalable green as well as digital corridor solutions to help the maritime industry attain the 2050 emission reduction targets expected of the International Maritime Organization and help spur the development of green growth opportunities.”

“No single port or organisation can tackle the challenge of decarbonizing the supply chain alone, no matter how innovative their technology or robust their efforts. The establishment of this green shipping corridor between the San Pedro Bay Port Complex and Singapore will prove to be a living, breathing testament to the power of global collaboration,” Port of Los Angeles Executive Director Gene Seroka said. 

“I am honoured to be here with key leaders from MPA Singapore, the Port of Long Beach, and C40 Cities to sign this MOU turning a shared commitment to fighting climate change into a meaningful step forward toward the future of global sustainability.”

“Curbing greenhouse gases from international shipping is essential to fight global warming,” Port of Long Beach Executive Director Mario Cordero said. 

“Creating this green corridor with our partner ports and C40 Cities is part of our strategy to coalesce all of our efforts here and beyond to help advance our goals for cleaner marine fuels for oceangoing vessels, improve efficiencies for the global movement of goods, and to achieve a carbon-neutral future.”

C40 Cities Executive Director Mark Watts, said: "Delivering science-based, rapid and concrete action on shipping emissions is crucial to ensure the shipping sector decarbonisation is aligned with the goal of keeping global heating below 1.5°C. C40 is proud to support this first mover initiative aimed at accelerating the transition to low- and zero-carbon fuels and other decarbonisation technologies."

Related: Singapore, Los Angeles, Long Beach to establish green and digital shipping corridor

 

Photo credit: Maritime and Port Authority of Singapore
Published: 25 April, 2023

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Financial Result

CBL International gross profit down 32.2% on year for 1H 2024

Decline primarily driven by reduction in premium sold to customers; leading to lower gross profit per tonne even though there was an increase in volume sold, says CBL.

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CBL International Limited (CBL), the listing vehicle of Banle Group (Banle), a marine fuel logistic company in the Asia-Pacific region, on Thursday (12 September) announced its unaudited financial results for the six months ended 30 June.

CBL said its gross profit for the period was approximately USD 2.72 million, a decrease of 32.2% compared to USD 4.01 million for 1H 2023. 

The firm said the decline was primarily driven by the reduction in premium sold to customers and led to lower gross profit per tonne, which was partially offset by an increase in volume sold.

CBL also reported its Consolidated revenue for 1H 2024 increased by 44.4% to approximately USD 277.23 million, compared to USD 191.96 million in the same period in 2023. 

“This significant growth was driven by a 39.4% year-over-year increase in sales volume, attributed to the expansion of the Company's global supply network and higher marine fuel demand due to geopolitical factors,” it said. 

The company announced the pricing of its initial public offering on Nasdaq Capital Market on 22 March last year.

“We are pleased with the robust growth in our revenue and sales volume during the first half of 2024, despite the challenging market conditions. Our strategic initiatives, including the expansion of our service network and our focus on sustainable fuel solutions, have positioned us well to navigate these challenges and capitalise on emerging opportunities,” said Teck Lim Chia, Chairman & CEO of Banle Group. 

“While the current market environment has pressured our margins, we remain confident in our long-term strategy and our ability to deliver value to our shareholders.”

Other Financial Highlights:

  • Operating Expenses: Operating expenses rose by 64.0% to approximately USD 4.12 million, up from USD 2.51 million in 1H 2023. This increase was attributed to higher selling and distribution expenses related to our sales growth, strategic expansion in the Company's supply network to new geographic areas, and the development of our biofuel operations.
  • Net Income: The company reported a net loss of approximately USD 1.62 million, compared to a net income of USD 1.15 million in 1H 2023. The loss was driven by lower gross margin and higher operating costs.
  • Cash Flow: Net cash provided by operating activities was approximately USD 2.30 million, a significant improvement from a cash outflow of USD 7.24 million in 1H 2023, reflecting better management of working capital.
  • Cash position: As of June 30, 2024, Banle's consolidated cash balance increased by approximately USD 2.29 million, or 30.9%, to USD 9.69 million, compared to USD 7.40 million as of December 31, 2023. This increase was primarily driven by improved working capital management. The Company also reported a significant increase in accounts receivable and accounts payable balances, reflecting the growth in its sales activities.

Operational Highlights:

  • Global Network Expansion: As of June 30, 2024, Banle expanded its global service network from 36 ports at our IPO in March 2023 to over 60 ports across Asia, Europe and Africa. This strategic expansion has enabled the Company to secure new bunkering business opportunities, particularly in European markets where environmental regulations are increasingly stringent. The opening of the Company's new office in Ireland in late 2023 has bolstered our market coverage and enhanced local sourcing capabilities. Notably, the Company completed inaugural bunkering services through a local physical supplier in Mauritius in May 2024, further strengthening our market presence.
  • Biofuel Initiatives: Banle continued its commitment to sustainability by expanding its B24 biofuel operations, obtaining ISCC EU and ISCC Plus certifications in 2023. The Company successfully commenced biofuel bunkering services through local physical suppliers in Hong Kong, China, and Malaysia, positioning itself as a pioneer in sustainable fuel solutions. The B24 biofuel blend, which includes 24% UCOME (used cooking oil methyl ester), offers a 20% reduction in greenhouse gas emissions compared to conventional marine fuels, aligning with global decarbonisation efforts.
  •  Response to Macroeconomic Environment: The global economy has shown signs of moderate growth in 2024, with emerging markets, particularly in Asia, driving this recovery. However, the shipping industry continues to face challenges such as fluctuating freight rates, port congestion, and disruptions in major trade routes due to the ongoing Red Sea Crisis. Banle has proactively adapted to these conditions, coordinating increased fuel supplies in Asian ports to meet heightened demand, ensuring that our customers' needs are met despite logistical challenges.

Looking ahead, Banle said it remains focused on expanding its market presence, particularly in the biofuel sector, and continuing to enhance its global supply network. 

Related: Banle Group achieves 70% increase in port coverage since Nasdaq listing
Related: Exclusive: Banle Group sets sights on expanding bunker supply network with successful IPO on Nasdaq
Related: Malaysia: Straits Energy associate CBL International to be listed on Nasdaq

 

Photo credit: Essow on Pexels
Published: 13 September, 2024

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Alternative Fuels

KPI OceanConnect expands Asia footprint with new Tokyo office

New office will help existing and new clients navigate increasing operational complexity in the marine energy sector, from new alternative bunker fuels to tightening environmental regulations.

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KPI OceanConnect expands Asia footprint with new office in Japan

Marine energy solutions provider KPI OceanConnect on Thursday (12 September) announced the opening of its new office in Tokyo, Japan, to strengthen its regional presence and support to local customers. 

The office is KPI OceanConnect’s fifth in Asia, reflecting an increasing commitment to strategic growth in the region.

Japan is a leading innovator in the maritime industry, operating the third largest merchant fleet and is an important market for KPI OceanConnect. 

The new office, led by Ken Kobayashi, Head of Japan, will help existing and new clients navigate increasing operational complexity in the marine energy sector, from new alternative fuels to tightening environmental regulations. 

The announcement follows KPI OceanConnect’s recent publication of robust financial results for the year 2023/2024 and demonstrates its continued commitment to investing in building strong partnerships across the marine fuels value chain worldwide. 

The expansion of the local team in Japan will enable KPI OceanConnect to actively engage with Japanese buyers and suppliers on a daily basis to exchange knowledge and expertise to support the development of innovative energy transition strategies for its clients. 

The launch of the new office was celebrated with an opening reception on 10 September. The event was attended by the group’s owner, Nina Østergaard Borris and the Executive Management team of KPI OceanConnect, including Anders Grønborg, CEO, Dorthe Bendtsen, COO, and Jesper Sørensen, Global Head of Alternative Fuels and Carbon Markets. 

To celebrate this milestone, KPI OceanConnect hosted an opening reception at the XEX Tokyo restaurant, just steps away from its new office in the Burex building. The event also featured music by DJ Yumi.   

Anders Grønborg, CEO of KPI OceanConnect, said: “KPI OceanConnect has worked closely with clients in Japan for a very long time. As a key market for our sector and our business, this new office allows us to be closer to our customers and other important local stakeholders.”

“It is a time of transformation in the maritime value chain, and we are ready to work with our partners to identify opportunities for further collaboration and innovative solutions. We believe that our values of decency, good governance, transparency and long-term sustainability resonate well in this market.”

Ken Kobayashi, Head of Japan, KPI OceanConnect, said: “KPI OceanConnect is here to support its clients in turning today’s challenges and future uncertainties into opportunities for growth and innovation. From new fuels to new regulations, our network of experts is focused on delivering tailored, value-adding services to clients to future-proof their decision making, no matter the complexity.

“With a partnership-driven approach, we’re enabling greater transparency and innovation and are helping rewrite the bunkering playbook to support clients through the energy transition.”

 

Photo credit: KPI OceanConnect
Published: 13 September, 2024

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Alternative Fuels

European shipowners and bunker fuel producers launch Clean Maritime Fuels Platform

Members of the initiative include ECSA, FuelsEurope, eFuel Alliance, European Waste-based & Advanced Biofuels Association, HydrogenEurope and Methanol Institute.

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European shipowners and bunker fuel producers launch Clean Maritime Fuels Platform

The European Community Shipowners’ Associations (ECSA) on Thursday (12 September) announced the launch of the Clean Maritime Fuels Platform. 

The new Clean Maritime Fuels Platform is a bottom-up industry initiative aiming to enhance communication between the shipping sector and fuel producers and to identify common challenges and possible solutions, considering the implementation of the Fit for 55 package and the transition to a net-zero economy by 2050.

Members of the initiative include ECSA, FuelsEurope, eFuel Alliance, European Waste-based & Advanced Biofuels Association (EWABA), HydrogenEurope and Methanol Institute. 

According to ESCA, access to clean maritime fuels is a top priority for the decarbonisation of the shipping sector. 

The recently published Draghi report on the Future of European Competitiveness identifies shipping as one of the most difficult sectors to decarbonise, requiring around 40 billion in annual investments between 2031 and 2050. 

The report highlighted that, while the EU is a world leader in sustainable renewable and low-carbon fuels for the decarbonisation of transport, it has limited installed capacity and planned production. The EU needs to start building a supply chain for clean fuels, or the costs of meeting its targets will be significant.

Representatives of ECSA, FuelsEurope, eFuel Alliance, EWABA, HydrogenEurope and Methanol Institute held their first meeting on 12 September and agreed on the objectives and the working principles of the new platform. Members also started to discuss the key topic of infrastructure gaps.

The platform will focus on policies and tools to support the production and uptake of clean maritime fuels in Europe including areas such as maritime in EU ETS and funding opportunities.

The platform will hold regular meetings with ECSA taking care of the secretariat’s tasks.  

“Today, the shipping and energy industry join forces and launch a dialogue platform that can facilitate better flow of information about the common challenges we are facing. We need all hands on deck to make the energy transition happen. In order to meet our targets, we need clean fuels available in the market in sufficient quantities and at an affordable price. European shipowners are proud to launch with the fuel producers the Clean Maritime Fuels Platform”, said Sotiris Raptis, ECSA Secretary General.

“We are very excited to launch the Clean Maritime Fuels Platform today. Our 55+ members from across the EU are working tirelessly to produce waste-based and advanced biodiesel of the highest quality requirements and GHG savings to bring a new era of clean shipping to Europe. We believe that a closer collaboration between renewable fuel suppliers and ship owners will significantly reduce technical, operational, and financial barriers across the supply chain for the development and uptake of renewable maritime fuels”, said Angel Alvarez Alberdi, Secretary General of EWABA.

“The energy transition is a gradual journey, not an overnight change. It demands a robust regulatory framework and collaboration among all stakeholders involved to drive effective decarbonization. As we work alongside our 100 members through the complexities of this transition, the Clean Fuels Maritime Platform will play a crucial role in accelerating our shift to cleaner fuels and innovative technologies. By combining our collective expertise and efforts, we are not only tackling the pressing need for emission reductions but also laying the groundwork for a more resilient and sustainable maritime industry”, said Greg Dolan, CEO of Methanol Institute.

 

Photo credit: European Community Shipowners’ Associations
Published: 13 September, 2024

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