Work Boat World

OPINION: "One might have expected the United States to take action to rein in China’s behaviour, especially given its mutual defense treaty with the Philippines. And yet, three successive presidents—Barack Obama, Trump, and Joe Biden—have failed to offer anything beyond statements of support and symbolic action. In 2012, Obama allowed China’s brazen seizure of the disputed Scarborough Shoal from the Philippines to go unpunished. "This was hardly the first time the US had failed to live up to its defence commitments to the Philippines. In 1995, the Philippines requested US help to block Chinese forces from capturing Mischief Reef, just 129 nautical miles from the Philippine island of Palawan. US President Bill Clinton, smarting over the termination three years earlier of America’s right to maintain military bases in the Philippines, refused. Mischief Reef is now an important Chinese military base. "The more China has got away with, the bolder it has become. Following the capture of Scarborough Shoal, Xi embarked on a land reclamation frenzy, creating 1,300 hectares of land in the South China Sea, including seven artificial islands that now serve as forward operating bases." Full article link in comments.

OFFSHORE ACCOUNTS: "When we looked at Tidewater’s results from the third quarter of 2023, we were quick to use a blunt analogy to the ongoing losses in its Middle Eastern region (primarily Saudi Arabia, Qatar and Abu Dhabi): "'When you think of Tidewater's Gulf operations, think of a fifth of the company's fleet as locked into an abusive relationship with a cruel and powerful Arab sheikh who has metaphorically chained the company (and its competitors) to a drainpipe in a dark, dank, and very unprofitable basement.' "Then, the 45 Tidewater vessels working in the Middle East made a loss of US$1.1 million. This last quarter, Tidewater lost 'only' US$900,000 in the region with 43 vessels in service, an improvement on the second quarter loss of US$1.8 million. The company managed to raise its average day rates there to US$11,661 up US$513 on the preceding quarter, but two years into a resurgent OSV market, the Gulf as a whole remains unprofitable." Full article link in comments.

VESSEL REVIEW: Russia’s Vympel Shipyard has completed construction of a new catamaran ferry for operation by the East Siberian River Shipping Company. 'Sarma' was built for operation on Lake Baikal, linking the cities of Irkutsk and Severobaykalsk, and was designed by local engineering firm the Sea Tech Group. The ferry has an LOA of 36.7 metres (120 feet), a beam of 11.4 metres (37.4 feet), a draught of only 0.9 metre (three feet), a displacement of 100 tonnes, and space for 148 passengers and four crewmembers. The vessel can reach speeds of up to 35 knots and sail over 1,000 kilometres (620 miles). The vessel’s design permits the use of conventional propulsion even with much of the hull out of the water while the hydrofoils are in operation, whereas earlier hydrofoil-equipped vessel designs required additional modification for such an arrangement to deliver the required performance. Full article link in comments.

OPINION: "By recognising the overlapping claim with China, Indonesia has an obligation to negotiate a maritime boundary. Before this recognition, Indonesia had maritime boundaries with ten states: Australia, Timor-Leste, Papua New Guinea, Palau, the Philippines, Vietnam, Thailand, Malaysia, Singapore, and India. Geographically, all these countries neighbour Indonesia, meaning that under UNCLOS, Indonesia has a right to negotiate a maritime boundary delimitation either for an exclusive economic zone, continental shelf, or territorial waters. "However, considering China is located far beyond the 200-nautical-mile EEZ and the 350-nautical-mile continental shelf, there is no way Indonesia should negotiate a maritime boundary delimitation with China. This is a huge loss for Indonesia’s ability to manage its natural resources. "Recognition of China’s nine-dash line claim also has implications for the ongoing negotiation of the ASEAN-China South China Sea Code of Conduct (CoC). During negotiations for the CoC, Indonesia has made it clear that all claims in the CoC should be based on a legitimate claim under UNCLOS. Therefore, the recent statement seems to betray Indonesia’s own position, upheld by the Foreign Ministry for many years." Full article link in comments.

OFFSHORE ACCOUNTS: "Since the end of 2021, despite the company's recent troubles, Tidewater shares have delivered incredible returns, rising from US$10.71 on December 31, 2021, to US$56.11 at the time of writing, outperforming Tesla and all the major offshore drilling companies in that period. "Its own words in its new investor presentation this month, Tidewater has 'meticulously high-graded its fleet by focusing on high-quality assets, large vessels routinely in high demand and value accretive acquisitions' using the purchase of 50 vessels from Swire Pacific Offshore at rock bottom prices in early 2022, and of 37 PSVs from Solstad Offshore in mid-2023. This fortified its dominant position as the largest and most successful OSV player in the world. "What we dubbed Tidewater’s 'Pac-Man strategy' of fleet acquisitions has proved remarkably successful. And it may not be over yet, either. There’s more fruit in the maze potentially still available for Tidewater to gobble up." Full article link in comments.

VESSEL REVIEW: Thai/Australian boatbuilder SeaCat Ships recently handed over a new aluminium catamaran ferry to Aquatic Rentals, an operator that serves some of the inter-island routes in both the US and British Virgin Islands. The aptly named 'Sea Express III' will primarily be operated as an inter-island ferry, but it may also be used for sightseeing tours for cruise ship guests in the region. 'Sea Express III' has an LOA of 18.4 metres (60.4 feet), a beam of 6.06 metres (19.9 feet), a draught of only 1.95 metres (6.4 feet), and space for three crewmembers. Two 600kW (800hp) IMO Tier III diesel engines drive fixed-pitch, stainless steel propellers to deliver a cruising speed of 24 knots at 85 per cent MCR. The engines are fed by two 830-litre (180-gallon) tanks. Full article link in comments.

GREY POWER: "As some have claimed, a diversion around the Cape provides some time to relax, to enjoy a little free time without the remorseless grind of the shorter schedule to which they were accustomed, before the Houthis began their horrible attacks. It is said swimming pools have been dusted off and filled on these lengthier ocean passages, while the hopefully appetising smell of barbecue wafts around the superstructure of the vessels on these long hauls. "'More days, more dollars,' the shipboard philosophers used to say when the shipowner or charterer changed the plans and you were no longer homeward bound as you might have expected. It was hard on those whose personal lives were discombobulated because of such diversions, but if you were signed on for two-year articles (that shows my age) there was nothing really to complain about. "However, in the present situation with such global instability, it is surely a relief for all on board (and their families ashore) that the responsible decision has been taken not to risk lives and property by taking the direct route. The fact that this situation, more than a year on, shows no signs of change for the better means that the regular traders have now settled into the longer schedule and there are no more nasty surprises when the tour is extended." Full article link in comments.

VESSEL REVIEW: Norwegian offshore vessel operator Edda Wind recently took delivery of a new service operation vessel (SOV) built by Spain's Balenciaga Shipyard. Named 'Goelo Enabler' (initially 'Edda Goelo') after the Goelo region in Brittany, the vessel has already commenced operations in support of Siemens Gamesa Renewable Energy at Iberdrola's 496MW offshore wind farm in Saint-Brieuc Bay in the English Channel just off France. Upon arriving on-site, it began serving as a mother vessel for technicians as they perform maintenance work on the wind farm’s 62 offshore turbines. The SOV is prepared for zero-emission operations with hydrogen as an energy carrier in a liquid organic hydrogen carrier concept. This concept has been adopted by Edda Wind as it meets the company's strict criteria for safe operation, logistical solutions, and endurance. Full article link in comments.

OPINION: "Beijing is deliberately blurring the lines between using and protecting living resources in the Southern Ocean. It is consistently vetoing or blocking new marine protection efforts by stating it needs to undertake more research. Want to protect a stretch of the Southern Ocean? Beijing needs to see or undertake scientific research supporting the call for protection. "Then there are questions as to the identity of personnel on China’s super-trawlers already active in the Southern Ocean. While we know China’s coast guard is mandated to protect these assets and their operations, could these fishermen also don military uniforms to execute the Chinese Communist Party’s strategic endeavours? This is surely not implausible. "Consensus bodies are failing because international dynamics have evolved beyond the 1980s when they were established. Therefore, our thinking must also evolve." Full article link in comments.

OFFSHORE ACCOUNTS: "The whole circumstances of the ownership of 'Teras Lyza' were 'murky'. According to the Ezion annual report for 2017, half of the owning company and half of another liftboat had been sold to a third party. "This turned out to be a company called Sea Explorer, whose ownership was never disclosed, which had entered into a share purchase agreement to acquire a 50 per cent stake in Teras Conquest 8 Pte Ltd and Teras Lyza Pte Ltd from Ezion Holdings for $10 million on August 10, 2017. The type of dollars was not explicitly stated in the press release, but it matters not. "Unfortunately, after the liftboat sank, 364 days after the share purchase agreement was signed (on Singapore National Day, August 9, 2018, which is a public holiday), Sea Explorer 'unexpectedly' cancelled the purchase. It is not clear why the sale could be announced by Ezion in mid-2017, when in fact Sea Explorer appears not to have paid for the shares in the companies it was purchasing and could then back out of the entire transaction, seemingly without any consequences." Full article link in comments.