b'16American Journal ofTransportation ajot.comACL AJOT_SailSchedule_2020_ACL2/27/209:33 AMPage 1AALs Schoeller talks about theOglobal business and new ships ONNEESSHHIIPPFelix Schoeller, Commercial Director, AAL Shipping (AAL) discusses new ships and prospects for the project sector. C onCo nttaaiinneerrss,,RROORROO,,BBrreeaakkbbuullkkCCaarrggooBy George Lauriat, AJOTAJOT: In January, AALmanyprojectsarebackon completedaprojectmovethemap.Weexpecttosee ofindustrialtowercompo- projectgrowthmainlyin nentsforarefineryprojecttheMiddleEastandNorth from South Korea to the U.SAmerica.Weexpectan West Coast, Port of Everett,additionalupgraderound Washington.Thecompli- offacilitiesoverthenext cated move begs a number of10-years, after which energy related questions. production will shift mostly Ingeneral,withpetro- to renewable energy such asA SERVICE AL1 SERVICE AL2 SERVICE RORO Customer Service877-918-7676leumpricesontherise,dowind, hydrogen etc. NaturalCuto Friday Cuto Thursday Cuto Monday Export Customer Serviceyou think the oil & gas sectorgas has a longer lifespan. FROM NEW YORK LOLO RORO LOLO LOLO 800-225-1235will be a solid contributor toAJOT:HowhastheTO Transit Time Transit Time Transit Time Transit Time Export Documentation the projects segment of theCOVID-19 restrictions com- ANTWERP 1620 18888-802-0401DUBLIN 12 heavy lift/project business inplicatedtheProject/Break- BELFAST 13Import Customer Service888-802-0403the near turn. And if so, whatbulk sector business? GTEBORG 21Logisticsregionsdoyouseegrowth?Schoeller:For ship ownersHAMBURG 13 17 15 22 866-821-7449LE HAVRE17North America? Latin Amer- such as AAL there have beenLIVERPOOL 9 13 Credit & Collectionsica, Middle East? Australia?two major issues. Crew wel- LONDON GATEWAY20 19 888-225-7747Asia? Russia?fare on board of the vessels:ROTTERDAM11 20Crewchangeshavebeen notpossibleforthegreater partof2020and2021due(METALScontinued fromofMariupol,ontheSeaofoutset,sendingsteelmakers totravelrestrictions,tighterpage 14) Azov,duringthefirstdaysintheU.S.,Turkey,Egypt, port regulations and delays oftheothersurroundingcoun- ofthewar,but,duringtheandtheEuropeanUnion vessel schedules. This situa- tries.Organizationsmovingsecondweek,surroundedscrambling for other sources tion improved in the secondproductsofRussianoriginand bombarded the city, shut- of raw materials. halfof2021. AALandourseefrictionassociatedwithtingitdown.RussiannavalLower raw materials avail-technical manager CSM havethose moves going forward.forces also control the narrowability and higher prices could donewelltonotonlysup- The extractive industries,Kerch Strait which connectsjeopardizeplanstoproduce port our crew throughout thehe added, will be especiallythe Sea of Azov to the BlackmoresteelintheUnited pandemicbuttokeepourhard hit, because it is so bigSea, all of which jeopardizesStates.Domesticsteelmak-fleetandcustomercargoesa part of the economy in thatUkrainessizableexportsofers were set to increase their Felix Schoeller, Commercial Director,moving and with as minimalregion. Companies contem- steel,ironore,andpigironmelting capacity in 2022 by AAL Shipping disruption as possible.plating buying ore or finishedthrough Mariupol. During the7%, requiring larger supplies Schoeller: The oil and gasTheothermainlimitingmetal of Russian origin nowsecond week of the war, Rus- of raw materials which may project sector has been veryfactor has been the disruptioncarryasignificantlyheaviersian forces took control of thenot be forthcoming. quietoverthepastyears.of the supply chain on land.due diligence burden in orderBlackSeaportofKherson,Russia and Ukraine com-ManyprojectshavebeenDue to covid, there have beentoascertaintheownership125mileseastofOdessa,binedhavesuppliedover delayedorcancelledalto- laborshortagesandgeneralstructuresofthesellinganother major port.60%ofpigironimportsto gether. This has been due toslowdownofalllandsideorganizations,tomakesureSteelshipmentsfromU.S.steelproducerssince lower oil prices but also theoperations, such as truckers,that no sanctioned parties areMariupolhaverepresented2018.Otherpotentialpig globalpushforrenewablestevedores,andportopera- involved. 25%ofUkrainesexportsironsourcesincludeBrazil, energy,inturndrivenbytions etc. Hence berthing andinrecentyears,accordingwhichmadeup20%of fiscal governmental supportportoperationshavebeens CraMbling toM akeu P toS&PGlobal.Ukrainesimportssince2018,accord-to encourage local industriesslowandportcongestionas hortfalls Metinvest,aminingandingtoArgusMedia,apro-tohelpthemmeetnationalrecurring issue.Finally dueOntheUkrainianside,steel group, suspended pro- viderofcommoditiesdata, emissions targets. Now with(TALKScontinued onRussiafailedtogaincon- ductionattwosteelplantsbut Brazils pig iron is higher the rise in oil and gas pricespage 22) troloftheUkrainianportinMariupolatthewarsinphosphorous,makingit less desirable. The Canadian steelmakerStelcorecently addedone-milliontonsper year of pig iron capacity at its Hamilton, Ontario, mill. SomeU.S.steelmakers couldalsoreplacepigiron as a raw material with direct reduced iron (DRI) and hot briquetted iron (HBI). Nucor and Steel Dynamics operate theirownDRIplants,and Cleveland-CliffsandVoes-talpine have each added HBI production capacity in recent years, although, in the case of Voestalpines HBI plant in Corpus Christi, much of the outputisdesignatedforits mill in Austria. Also, as the Argus report indicates, not allmillsaresetuptocon-sume DRI and HBI in larger volumes. o therM etalsOther metals supply chains arealsothreatenedbythe Ukraineconflict.Titanium (METALScontinued on page 19)'