3rd February 2024 – 9th February 2024
- LOCAL NEWS
No news reported.
- INTERNATIONAL NEWS
1.Red Sea Crisis: Losses of over 10% for Piraeus Port
The situation in the Red Sea has created problems for commercial ports in the Eastern Mediterranean as 30% of container ships have changed course and are traveling through the Cape of Good Hope.
The port of Piraeus, the largest in the Eastern Mediterranean, is one of the ports that took the brunt of the Red Sea Crisis.
Until now, according to information, the port of Piraeus has so far weathered the impact of the Red Sea attacks, with the adverse effects to Piers II and III being managed by SEP-Container Station SA, a subsidiary of Cosco.
The losses in January 2024 are estimated at 12% compared to the corresponding period of 2023, with port circles commenting to Newmoney “Other companies are coming as normal, others have reduced their ships and others have detoured. However, all the alliances and companies like Cosco, CMA CGM, Evergreen and Hapag support".
In contrast, Pier I managed by the Port of Piraeus has no losses, due to the fact that its major customer, MSC, continues its regular routes to Piraeus. 40,000 containers are handled from Pier I every 6.month.
According to Naftemporiki sources, despite estimates for a 30% reduction in traffic at the large port of Piraeus in the first month of 2024, the losses are ultimately much smaller.
However, experts are warning that the situation will get worse, as the Port of Piraeus is expected to take a significant blow due to container shipping giants stopping or changing their routes.
Ratings agency DBRS Morningstar expects the Red Sea crisis to have a greater impact on Eastern and Southern Mediterranean ports, with volumes temporarily reduced, while the main ports of call in Northern Europe are expected to experience a limited impact and may see gradual pressure on capacity due to delays which bring the longest journeys.
According to the estimates of the Hapag Lloyd, even if a ceasefire agreement is reached, the “turbulence” will continue for some time.
Related Publications:
Ekathimerini 7/2 - Containing the Houthi impact on Piraeus Port
Newmoney 5/2 - Erithra thalassa apolies ano tou 10 gia to limani tou Pirea
Naftemporiki 5/2 - Red Sea the effects on the Port of Piraeus
DBRS 5/2 - Primary ports of call expected to be largely insulated from the Red Sea attack
2. Council and Parliament agree to delay sustainability reporting for certain sectors and third-country companies by two years
On the 7th February 2024, the European Council and European Parliament reached a provisional deal on a directive on the time limits for the adoption of sustainability reporting standards for certain sectors and for certain third-country undertakings amending the Corporate Sustainability Reporting Directive (CSRD). The provisional agreement will give more time for companies to prepare for the sectorial European Sustainability Reporting Standards (ESRS) and for specific standards for large non-EU companies, which will be adopted in June 2026, two years later than the originally scheduled date.
It should be noted that CSRD requires all large companies and listed SMEs to report using common mandatory standards. The CSRD includes provisions for the adoption of sector-specific ESRS. On 31 July 2023, the Commission adopted the first cross-cutting standards and standards for all sustainability topics to facilitate this reporting. These must be followed by sector-specific standards, standards for SMEs and standards for third country companies with a €150 million turnover in the EU and which have at least one subsidiary or branch in the EU. All these new standards were scheduled for 30 June 2024.
However, the provisional Agreement postpones the deadline for the adoption of those specific sector standards from mid-2024 to mid-2026. This will allow companies to focus on the implementation of the first set of ESRS. It will also allow more time to develop sector-specific sustainability standards as well as standards for specific third-country companies. The date of application for third country companies will remain the financial year 2028, as set out in the CSRD. The agreement supports the objectives of the Commission’s proposal but modifies the legal nature of the text (from a Commission decision to a directive) to respect the legal basis of the proposal. It also suggests that the Commission publishes eight sector-specific reporting standards as soon as they are ready before the new deadline on 30 June 2026. Member states will not need to transpose this directive, since the targeted amendments concern the empowerment to adopt delegated acts granted to the Commission.
The provisional agreement reached now needs to be endorsed and formally adopted by the European Parliament and the Council.
Related Publications:
Consilium Europa 7/2 - Council and Parliament agree to delay sustainability reporting
ESG Today 8/2 - EU lawmakers agree to delay sustainability reporting standards
3. Commission Communication on the EU 2040 climate target
On the 6th February 2024, the Commission published its communication on Europe’s 2040 climate target and path to climate neutrality by 2050, in which it recommends a 90% net GHG emissions reduction compared to 1990 levels as the EU climate target for 2040 for all the sectors of the EU economy.
The communication is horizontal and refers to several sectors of economic activity, including maritime transport, starting the process of preparing the 2040 target and launching a broad political debate and a dialogue with stakeholders and citizens. A special chapter is devoted to transport (chapter 4.5 pages 19-20) .
For shipping, the communication refers to the implementation of the “Fit for 55” measures. The accompanying impact assessment indicates that the “higher end of the IMO target range (-80% in 2040 vs 2008)” and the FuelEU Maritime regulation will be the building blocks for the decarbonisation of the sector (as can be seen in table 4 on page 33). The communication hence does not propose new targets for shipping and is a clear message of support to the IMO process.
Regarding the earmarking of EU ETS revenues for dedicated calls for maritime projects under the Innovation Fund, it is stated that “ the EU will organise calls for proposals with dedicated topics for the maritime sector under the Innovation Fund”. It should be noted that CUS has stressed to ECSA the need for the criteria to cover the particularities of the tramp sector which are not covered in the ongoing calls of the Innovation for 2023 and informed the Cyprus Deputy Ministry of Shipping to propose the EU flag criterion to cover the tramp sector as alternative to the criterion of 30% annual calls to EU / EEA ports.
The Communication also states that EC will phase out the fossil fuel subsidies, by financing the green fuel production. and consumption . Furthermore, it is stated that EC will assess the extension of the carbon pricing to the maritime sector. “It will address the barriers to deployment of alternative fuels/ zero carbon emission fuels (advanced bio fuels / e -fuels ) in the maritime sector and give priority access to these fuels. Investments will be required to replace fossil fuels with low carbon fuels”.
According to ECSA, several points in the Communication are positive for shipping. including:
- It stresses the importance to provide priority access to advanced biofuels and e-fuels for shipping;
- It recognises that addressing the price gap for sustainable fuels is key for the competitiveness of shipping;
- It considers regulatory measures to foster production of sustainable fuel production for shipping;
- It considers differentiated targets for shipping under the 2040 EU target in alignment with the IMO GHG Strategy.
The communication is not accompanied by a legislative proposal. Such a legislative proposal will be made by the next Commission, after the European elections. It is expected to be adopted by the new European Parliament after June 2024.
Related Publications:
Climate Europa / COMMISSION IMPACT ASSESSMENT REPORT
Euractiv/ eu kicks off debate on 2040 climate goal
Enalios 8/2 - Comminission on climate neutrality
Safety4Sea 7/2 - EU sets target to reduce ghg emissions
Safety4Sea 8/2 - WSC commitment is crucial to meet eus new climate targets
4. BIMCO: Revised maritime security guidelines for the Southern Red Sea and Gulf of Aden
On the 5th February 2024 industry associations BIMCO, ICS, CLIA, IMCA, INTERCARGO, INTERTANKO and OCIMF have published their revised security guidance applicable to navigating in the Southern Red Sea and Gulf of Aden.
The guidance emphasises the importance of conducting a thorough ship and voyage-specific threat and risk assessment, taking into account any additional advice from the ship's flag state before passing through the area in question.
According to the Guidance, threats to vessels include anti-ship missiles, anti-ship ballistic missiles, water-borne improvised explosive devices (WBIED), drones and mines near entrances to Houthi controlled ports.
While the current maritime threat is greater where Houthi forces are present, in the vicinity of the Yemeni Red Sea coastline, the Guidance notes that Houthi forces have demonstrated their ability to target and attack ships in the Gulf of Aden as far as one hundred nautical miles from the coast.
Among other suggestions, the Guidance advises the following:
- Ship operators which have called, or plan to call, at Israeli ports should limit information access.
- When passing north bound of the Bab el Mandeb Strait, ships within the Traffic Separation Scheme could be no more than seven nautical miles from the Yemeni coastline.
- Ships who decide to wait to assess the threats before transiting the Southern Red Sea between latitudes 12° N and 16° N are recommended to wait in the Southern Red Sea North of 18° N or in Gulf of Aden East of 048° E.
Related Publications:
05 FEBRUARY 2024 – INTERIM INDUSTRY TRANSIT ADVICE SOUTHERN RED SEA AND GULF OF ADEN
UK Pandi 5/2 - Updated industry transit advice for southern Red Sea and Gulf of Aden
Safety4Sea 6/2 - BIMCO revised maritime security guidelines
5. US TREASURY REPORT
The US Treasury Report for all actions reported is hereby attached.
Related Article:
Attachment 1: US Treasury Report for week 03/02/2024 -09/02/2024
6. PIRACY REPORT
The Piracy Report for all actions reported is hereby attached.
Related Article:
Attachment 2: Worldwide Threat to Shipping (WTS) Report, for the period between 10 January 2024 – 07 February 2024
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