Towing Arctic icebergs for fresh water

Three-decade-old plan revived

Georges Mougin is no stranger to the idea of towing freshwater icebergs across the world with the intention to bring drinking water to millions; thirty odd years ago, the French engineer was to tow a freshwater iceberg from the Arctic to Saudi Arabia, where water from the melted berg would be used to plug the huge freshwater shortage in the desert nation. That plan did not take off owing to feasibility and cost, but recent 3D technology and simulation seem to have revived Moughin’s old plans.

More than a billion people across the world do not get drinking water, while billions of gallons of freshwater melt away from Arctic icebergs. Mougin says he has a new method, using recently declassified satellite data and oceanic forecasting, to tow icebergs for long distances using a "skirt" and a tugboat.  The plan involves harvesting table shaped icebergs in ‘season’- the shape facilitates towing “and is known by glaciologists as the family of icebergs which presents the minimum risk of fracture," according to one expert. A tugboat then deploys a floating geotextile belt- using a series of poles to make it rigid, much like a lasso. A geotextile “skirt” is used to stop the iceberg from melting away as it reaches warmer water; this is deployed up to 7 metres below the water surface, and traps cold water around the iceberg, reducing or stopping its rate of melt.

 The tugboat then tows the iceberg away to wherever it is needed. However, this is not as simple as it sounds, because no tug yet built has the power to tow gigantic icebergs anywhere. However, Moughin and Cedric Simrad- project director of Dassault systems, a French firm collaborating with Moughin – say that the sea’s natural forces are used with oceanic forecasting to guide the iceberg in the intended direction. "Though it doesn't look like this when on a boat, from a satellite's perspective, [the ocean] looks like a big map of bumps and holes," says Simard. The tug then navigates these ‘pockets’ like a giant ski slope.

A simulated launch did not work initially, but by adjusting the dates by a couple of weeks using advanced forecasting, the team found that even a single tugboat could theoretically haul an iceberg. They say it is like a nutshell towing a mountain--and yet it is possible. Mougin has now launched a new company to promote his plan, with an actual trial to haul an iceberg set tentatively for the year 2012 or 2013.

So, is this the solution to the global water shortage? Not so, say some experts, pointing out to the incredible dynamic properties of icebergs, 9/10ths of which are below the water surface. Some point to the very limited success the largest tugs have had with towing icebergs clear of oil platforms in the North Atlantic- these attempts end up usually with the iceberg pulling the tug backwards instead. Critics also point out that it is an incredibly difficult exercise to tow a massive iceberg even with ocean forecasting. Then there is the ‘rollover’ problem: as an iceberg melts, which it inevitably will as it reaches southern, warmer, waters, it tends to become top heavy and roll over. This phenomenon is seen around Newfoundland every summer.

In short, some analysts say that no amount of netting will prevent this natural rebalancing of an iceberg, which, in any case, will go wherever it wants to. No amount of human engineering will change that, they add, pointing out that fancy 3D programs cannot predict what nature is going to do.

“Changing the way we think about shipping”

Maersk Lines- the world’s largest container carrier- has, in recent times, been at the forefront of examining new environmental initiatives for the future. However, it has gone a step beyond that, recently bringing out a manifesto for its container business in particular and for the broader maritime industry in general.

Maersk CEO Eivind Kolding says that this declaration of intent by the company has been precipitated by the “truest business axiom of all: that those who stop listening to the market because they think their methods and products are too established to fail … end up failing”. Concerned that shipping has not changed with time and that altering ingrained industry habits is as difficult as ‘turning around one of our vessels midstream in the Suez Canal,’  the manifest feels that the demands of a new generation of customers require a paradigm shift in the way the business is run; Schedule reliability, money-back guarantees, quick notifications of delays, intuitive self-service and ease of business are critical, Maersk feels, implying that a revolution in industry practice- akin to the one that was forced by the introduction of the freight container many years ago- is the need of the hour. “Containerisation re-invented global commercial trade. The time has come to make that kind of change again,” says Kolding, echoing his company’s manifesto that points out that discourse in shipping has barely changed for half a century.

Maersk highlights several key areas in its manifesto. It feels it is critical to rethink the maritime business as part of customers’ supply chain, for a start. The industry should look at greater web based, user friendly and real time solutions for its customers; the manifesto draws parallels with the launch of the low cost airline Ryanair in 2000 in this connection, an event that revolutionised the way airline industry operates today. Maersk asks, “Can we state that the shipping industry has gone online? Or are we missing some opportunities to interact with customers through more channels?”

Maersk draws from the experiences of the cell phone, car and airline markets, and lists two important lessons learnt there: One, that just because a business is established, it may only be a few years from being completely overtaken by new technology. Secondly, says Maersk, market and customer behaviour is forcing companies to never lose sight of what customers really want – including the needs they are not even aware of.

The manifesto points out that only half the containers reach customers on time at present. “Name a supplier to your business that only delivers half the time, but is still able to count on your loyalty as a customer,” it asks. Besides, there are other issues: “The shipping industry is faced with three fundamental challenges: our unreliability, our complexity and our environmental impact”.

Maersk reserves its strongest argument for the latter. “Why shouldn’t we hold ourselves to the highest environmental standards?” the manifesto asks, acknowledging that while shipping is ‘is the least polluting way to mass-move commercial goods around the planet’, it should be proactive in helping to set standards. This is because, in a future where the consumer will consider the carbon footprint of businesses to make decisions, a proactive approach by the industry will help customers will then be able to brand their businesses with the product’s energy efficiency. Shipping, being the cleanest way to move goods, will automatically benefit, and will not only ‘strengthen our own image, but also the image of our customers.’

All in all, the Maersk manifesto is a compelling document, and one we hope will force other companies to introspect, resulting in a greater widespread acceptance of sound business and environmental practices across our industry.

Scandal ridden toxic ship heading for Indian breakers?

The ‘Probo Koala’ and the Trafigura affair come to India

Little did I know, when I covered-in September 2009- the story of the havoc this ship and its owners wrought in Côte d'Ivoire, that the Probo Kaola would threaten our own Indian shores with its toxic waste. The Panamanian ship was chartered by the commodity giant Trafigura in August 2006 when she dumped deadly toxic waste that found its way to a dozen locations in and around Abidjan, creating a major health crisis. Seventeen died, and over 30,000 were injured (see pic), many with severe burns on the skin and lungs. A hundred thousand sought treatment in all.

News reports now say that the Probo Kaola is heading for India to be broken up. The 31,255 tonne Kaola has been renamed ‘Gulf Jash’, according to a group of activists that call themselves 'NGO Shipbreaking Platform.'  According to a report in the Times of India, the Gulf Jash was banned recently from entering Bangladesh after environmental activists in the region raised a clamour, warning the Bangladeshi government about the antecedents of the vessel. Banned from Bangladeshi yards, she is reportedly now en route for India- probably Alang, instead.

For years, the Probo Kaola/Gulf Jash has been a marked ship, with Trafigura resorting to all kinds of tricks to avoid costs for disposal of toxic waste- and later, fines for breaking the law. Diverted to Abidjan after she faced disposal issues in Amsterdam, the vessel remained in the eye of the storm after the humanitarian disaster the waste –that Trafigura insisted were just ‘slops’- caused at the time. Trafigura reportedly paid £30 million to the victims and nearly £100 million to the Ivory Coast government for cleanup costs in 2009, when we covered the story.

Recent initiatives by environmentalists in Bangladesh and India have put the ship breaking businesses there under a bright spotlight. Long criticised as a dirty, polluting and unregulated industry, the South Asian style of ship breaking has come under increasing fire by activists for its disregard for the environment, its lack of safety standards and its reputation for circumventing the law whenever possible. Other factors, including increased incidents of the dumping of waste in India and the greater willingness of Jairam Ramesh’s environment ministry to examine such deals are contributing to the activists’ optimism that the ’Gulf Jash’ will not be allowed into India waters.

Environmentalists say that the ship contains tonnes of hazardous asbestos , PCBs, toxic paints, fuel and chemical residues which have not been cleaned up before sending the ship for dismantling, says the Times, adding that India’s reputation has been tarnished by it becoming a dumping ground for toxic waste.

Trafigura’s antecedents do not inspire confidence in its integrity. The company was accused of running an illicit ‘do it yourself’ refinery on the Probo Koala off Gibraltar that directly resulted – due to the use of caustic soda- in the toxic waste being generated in the first place.  Trafigura threatened the BBC with libel when it reported the story on its ‘Newsnight’ programme – which saw toxicologist John Hoskins from the Royal Society of Chemistry saying that the waste on the Koala would ‘bring a major city to its knees’. The BBC called the Kaola affair ‘the biggest toxic dumping scandal of the 21^st century’

This is the ship that is said to be heading to India. We fervently hope that the authorities here will ban the Gulf Jash – and all such future ‘toxic ships’-from entry into Indian waters. Our environment should not be up for sale.

The Human Cost of Piracy

Strong evidence that over a third of the seafarers that were held in 2010 were abused

Per Gullestrup, C.E.O. of the Clipper Group says, “Somali piracy has a tendency to be discussed in economic terms, but the real issue is the untold misery and trauma imposed on our colleagues at sea and their relatives by the Somali criminals. We should be very concerned about the lack of concerted action by the global community in dealing forcefully with this problem.”

The world has long evaluated Somali piracy in mainly economic terms. Now comes a report from ‘The Oceans Beyond Piracy’ project, Titled, “The Human Cost of Somali Piracy,” the report, recently released in London, says that during 2010:

• 4,185 seafarers were attacked with firearms and rocket propelled grenades.

• 342 seafarers were rescued from citadels (ships’ reinforced security rooms).

• 1,090 seafarers were taken hostage.

• 516 seafarers were used as human shields.

• As many as 488 seafarers were subjected to abuse or torture.

The project also says that underreporting and misunderstandings contribute to ignorance in the general public on the extent and depth of abuse of seafarers, and that both successful and unsuccessful attacks expose seafarers to dangerous experiences with the potential for long-term physical and psychological trauma, whether the attack is successful or not. If taken hostage, seafarers routinely face physical and psychological violence ‘for months on end, limited access to food and water, uncertainty about their fate and risk of death. 

Unfortunately, there is no single source available to inform seafarers or the general public of how seafarers are treated during captivity, or how widespread abusive tactics are among the various pirate gangs’. Verification of reports is also difficult, the report adds, while indicating that all criminal activities come under one heading, “hijack”. “This limited categorisation of pirate activities undervalues the dangers and trauma faced by seafarers”, Oceans Beyond Piracy says.

“There is very little reporting of the personal violence against seafarers in the waters off Somalia”, says Kaija Hurlburt, lead researcher for the OBP study. “We have found strong evidence that over a third of the seafarers that were held in 2010 were abused, and the trend is looking more ominous this year. The lack of reporting prevents the true cost from being understood by the public.”

Thousands of seafarers have been subjected to gunfire, beatings, extended periods of confinement, torture and, in some cases, murder in the Indian Ocean and Gulf of Aden at the hands of Somali criminals. US Assistant Secretary of State Andrew Shapiro said in March this year, “The attacks are more ruthless, more violent, and wider ranging. Hostages have been tortured and used as human shields.”

It is becoming clear that mariners deserve to know the full extent of the risks they face when transiting pirate infested waters. One seafarer from the ‘UBT Ocean’, held for four months during which the crew were repeatedly tortured and abused, is quoted as saying, “All the seafarers must be fully aware of the danger and risk in crossing the Indian Ocean.”

(The full report HERE , at the Ocean's Beyond Piracy site)

No shipping recovery before 2013, says ICRA

The Indian shipping market is unlikely to recover before 2013, says a new report by ICRA, an associate of the international credit rating agency Moody’s. The agency adds that credit profiles of Indian companies are unlikely to show meaningful improvement before calendar year 2013.

The bright spot in the shipping space may be the container segment, which ICRA believes is better placed than the rest of the industry, whose outlook will remain muted in the medium term because of slow recovery in freight rates, oversupply of global tonnage and lower fleet utilisation. The container segment, may in fact see fleet capacity keeping pace with growth in demand, particularly since more and more box ships are resorting to slow steaming, thus reducing available supply.

ICRA analysts K Ravichandran and Kunal Mittal said, “The cancellations, deferrals, lesser new contracting, recovery in international trade and concentrated effort by operators to reduce total vessel supply by extra slow steaming (ESS) facilitates improvement in average container freight rates.” Going further, they added, “The low ship idling and the continuation of ESS will prevent a collapse in the supply-demand balance like that seen in 2009 and also provide savings in bunker cost, thus improving the operational economics of container operators.”

The gloomier ICRA report for the broader segment is at odds with those from many other analysts who predict a recovery by the second half of next year. Many have taken heart from the spike in container rates last year, and, although they agree with the reasons ICRA outlines for a generally slower recovery, they say that the negatives are somewhat overstated in the report. The ICRA report, however, details the deep collapse in freight markets, where rates have declined by between 55-75 % from peak levels. It also points out that freight rates today “are close to their charter rates for the period from 2002 and 2003”.

ICRA seems to be even more pessimistic about the dry bulk segment, given the supply demand mismatch. It sees slightly better prospects for tankers, though, and adds that the offshore segment is decently placed in the next year or two. Major players in the industry, however, would continue to see their profitability shrink. “Companies that have comfortable cash flows, low gearing levels and large liquid reserves will be well placed to take advantage of lower vessel prices and to augment their capacity. Hence, liquidity and capital structure will remain the discriminating rating factors in the foreseeable future”, it said.

ICRA accepts that new sources of supply further away from consumption centres have meant longer steaming and an expansion of trade areas, factors that should assist recovery. Nonetheless, its analysts say that the net addition to fleets during 2011-12 would be significant and that world trade growth is unlikely to be able to absorb incremental tonnage capacity. As a consequence, any increase in freight rates would be modest and the slump may well be more prolonged than expected. 

ICRA therefore concludes that shipping markets will remain subdued in the near to medium term. While remaining optimistic on demand recovery, the agency feels that this will be offset by the oversupply overhang that threatens to plague Indian- and global- shipping for some time.