Tuesday, September 09, 2014

The USA needs to move forward with electricity as it's primary energy source as supplied by alternative methods.

SEPTEMBER 8, 2014 — The U.S.Maritime Administration (click here) has released a study on LNG bunkering contracted from DNV GL with the objective of analyzing existing LNG bunkering infrastructure, safety, regulations, and training, and identifying and recommending best practices.
In its introduction, the study says that, while LNG is an attractive fuel choice for many vessels, its use as a marine propulsion fuel is a relatively new concept in the U.S. and there are significant safety and regulatory gaps. In addition, there are several challenges related to the development of a national infrastructure for LNG bunkering.
Over the course of the study, DNV GL has made recommendations for specific audiences concerning standards and integration of LNG bunkering into U.S. maritime operations.
The study is divided into four sections that analyze the following topics: LNG bunkering infrastructure; LNG bunkering safety; regulations; and personnel training....
To begin an LNG method of energy in the USA is going to require huge changes to infrastructure and a lot of investment. The country already has it's electrical infrastructure and without much change alternatives can adapt quicker and with far less danger and delay. These type of facilities should have been built in the 1970s or 80s. They are an outdated idea that takes far too much investment and time to consider it as a viable option today or in the future. Alternatives will outpace this antiquated form of energy.

The idea natural gas is a better fuel for tankers is far too risky to the outcomes. The challenge before any country when it comes to trade and shipping is to realize the cost of goods escalates far too much to induce the return of domestic goods.

It is strange to realize how much is shipped between countries when the countries themselves have their own domestic workers that could be producing goods. The one country facing a great deal of peril as shipping costs escalate with the increase in fossil fuels is China. It is one of the reasons the best answer for the Chinese economy is to increase their domestic demand through better wages. For all the products produced in China it simply needs to develop it's own Middle Class to provide consumers.

That reality holds true for nearly every country to some extent. Domestic production of goods will begin to take shape as fossil fuels become too expensive and too dangerous. I just don't see shipping using LNG for the purpose of fuel. What I do see is less shipping and more domestic production.

The one product that will sustain transoceanic shipping costs are the high end car products. Most high end products will sustain with higher costs due to the increases in fuel.

The change in fuels used in shipping has to be safe enough for the US Coast Guard to respond. (click here)

The WTO needs to develop policies reflecting changes in the potential to shipping both in cost and emissions.

Global Container Terminal Operators Annual Review and Forecast report:
Global logistics ports could handle 840m teu a year by 2018 (click here)

The world’s logistics ports are expected to handle more than 840m teu a year by 2018 as annual growth rates continue to accelerate. Projected throughput four years from now compares with 642m teu in 2013 and 674m teu projected for this year.

The 2018 forecast is double that of the 2004 throughput figure of 363m teu.

The combination of faster traffic growth and strong profit levels is attracting aggressive new players to enter the container terminal-operator business, according to the 11th Global Container Terminal Operators Annual Review and Forecast report.

The report says that Africa and Greater China are the regions that will see the most rapid growth.

In total, growth rates are expected to average an annual 5.6% in the five years to 2018, compared with 3.4% in 2013. This is expected to boost average terminal utilisation from 67% today to 75% in 2018....


Currently, the projections of shipping globally are ridiculous. Before much longer the ships will be playing bumper cars at the ports. The increase in shipping is driving the increase in the demand of fuel of any kind and drives the price higher. The entire trend the global trading markets are on is unrealistic.

The cost of fuel and shipping will make the goods out of reach to the consumers it was intended. Wall Street. They always put out fires and dearly few envision a future. It is why the world has half the problems it has. The picture above is real today. There really should not be this much reliance on shipping. Every country needs to develop a domestic economy to increase a global economy. Every country needs to look realistically at their exports and decide what will sustain as exports and what won't. Secretaries and ministers of commerce need to see the future as an increase in domestic production when shipping is bound to escalate costs to their consumers.

Developing a Middle Class means it has to be sustained and not cast into poverty because their goods are imported rather than produced with the very job they hold. This entire global economy based in shipping where labor is cheapest to where consumers are the working poor is completely outrageous.