World Maritime News
WMNF 02/04/2025
CMA CGM partners with SIPG and Shanghai Electric on bio-methanol supply
CMA CGM has signed a long-term agreement with Shanghai International Port Group and Shanghai Electric to secure methanol fuel supplies. Under this agreement, Shanghai Electric will supply the French shipping giant with bio-methanol produced at its Taonan base in Liaoning Province. It will be transported via a land-sea network to the port of Shanghai — the world’s busiest container port. Although LNG has re-emerged as shipowners’ preferred alternative fuel over the past year, CMA CGM still needs to procure supplies for its existing orderbook of methanol dual-fuel newbuildings. The company has more than 20 methanol-powered ships on order. The Taonan plant is expected to begin operations in June this year, with an initial annual production capacity of 50,000 tonnes of bio-methanol. Shanghai Electric aims to boost the volume to 200,000 tonnes if the product’s commercial viability is proven. Meanwhile, Shanghai is actively developing itself into a green fuel bunkering hub, targeting annual capacities of 1m cu m of LNG and 1m tonnes of low-emission methanol and biofuel by 2030.
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APMT to invest $500m in port of NY and NJ
Maersk’s terminal unit, APM Terminals, has agreed with the Port of New York and New Jersey to extend its lease by 33 years to December 2062. The proposed deal will also see APM invest $500m in upgrades to its terminal. APMT did not explicitly cite a dollar figure for the planned investments, which the company said will include “the optimization of the terminal layout, electrification of container handling equipment, and future-proofing container berths.”
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Global trade faces 25% tariff surge by 2026, warns Nobel-prize winning economist
A Nobel-prize-winning economist, US economist Paul Krugman has forecast tariffs of up to 25% on nearly all world trade by 2026, as Trump’s trade war and reciprocal tariffs prompt the price of goods to skyrocket. While he stressed that this would come as a combination of factors, the common denominator and single biggest contributor can be described simply in two words: “Donald Trump.” “The president of the United States does not believe in free trade, and this matters especially given the structure of US trade law,” said Krugman, who likened Trump’s tariff motivation to that of how “a drunkard uses a lamppost for support rather than for illumination.” “The president has enormous authority to act and does not require legislation by and large to impose tariffs, and there’s a near certainty for countries affected by this will retaliate. There is just a general deterioration in the intellectual basis for a relatively open world economy. So, my best forecast is that a year from now, we will have something like 20% to 25% tariffs on most world trade,” Krugman said.
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Trump’s car import tariffs add to vehicle carrier operator woes
Donald Trump’s plans to boost US domestic car manufacturing will affect EU, Japanese, South Korean and UK production the most. Confirmation by the US government that tariffs on imported cars will significantly increase is expected to impact vehicle carrier operators significantly. President Donald Trump confirmed, on 26th March, that tariffs of 25% on all cars imported to the US will come into effect from 2nd April. Imported cars are currently only subject to a 2.5% tariff. At the same time, it was confirmed that 25% tariffs would also apply on imported auto parts, effective from May at the earliest, which is expected to have a particular impact on container markets. As the world’s largest vehicle carrier operator and the provider of logistics services between Mexico and Canada to the US, Wallenius Wilhelmsen could be hardest hit by any downturn in imported cars to the US. A spokesperson for Wallenius Wilhelmsen told Lloyd’s List: “The 25% US import tariff on vehicles and key automotive parts announced by the US administration are expected to have implications for manufacturers, consumers and markets. They added: “We monitor the situation closely and are in constant dialogue with our customers and stakeholders.”
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Crunch time for US port fee threat as final Washington hearings begin
Business leaders have descended on Washington, D.C., to fight the plan to tax US port calls. Will the US bow to industry pressure on proposed port fees, or will Donald Trump go forward anyway on the simplistic premise of ‘China bad, US shipbuilding good’? What happens next will be a litmus test of practicality versus ideology This is a crucial moment for ocean transport pricing. The shipping industry is now in wait-and-see mode on two pivotal and simultaneous proposals the US Trade Representative has overseen: the highly controversial port fee plan and reciprocal tariffs scheduled to begin on 2nd April. Trade flows to and from the US could see significant changes if the Trump 2.0 administration simultaneously goes big on port fees and reciprocal tariffs. The USTR began its hearings on the port fee plan on Monday. So many businesses opposed it that USTR had to add a rare second day of hearings, on Wednesday, to fit in all the complaints. Almost 400 public comments have been filed by businesses, industry groups and private citizens on proposed fees of $1m or more for every call for China-built ships and non-China-built ships of operators with Chinese ships in their fleets or new buildings on order in China. The large majority of filed comments are negative. It is hard to recall any other US maritime policy proposal that has ever received this level of criticism, except for the circa 1920 Jones Act, which had a 105-year head start. The hearing on 24th March featured 30 testimonies. Previously filed comments imply that 10 favored the port fee plan and 20 opposed the fees or requested changes, even as they voiced support for a revival of US shipbuilding. The hearing on 24th March was frontloaded towards US interests that supported the port fees, mainly unions and steel producers. After morning sessions, the support ran dry. The overflow hearing on 26th March will feature 32 testimonies, with two expected positive based on previously filed comments, 28 warning of fees problems, and two unclear positions. Large organizations will testify to oppose aspects of the current USTR language, including the NRF on the containerized import side, the Agriculture Transportation Coalition (AgTC) on the containerized export side, the National Mining Association for dry bulk cargoes, and the American Petroleum Institute for tanker cargoes.
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UK sets goal of net zero shipping emissions by 2050 and extends ETS
The UK will aim to decarbonize its shipping industry by 2050, the UK Government said, without detailing exactly how. Its new Maritime Decarbonization Strategy aims to cut greenhouse gas emissions by 30% by 2030 and 80% by 2040, which aligns with the International Maritime Organization’s target. UK Chamber of Shipping chief executive Rhett Hatcher welcomed the plan and said it “must now be matched by delivering the regulatory framework, technology and infrastructure, including a shore power revolution, required to support the green transition for UK maritime.”
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