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Norris leads Joburg Open by four shots
Shaun Norris of South Africa carded a 67 on Saturday to take a 4-shot lead at 14-under-par after the third round of the DP World Tour’s Joburg Open. Norris, despite suffering from an ear infection on Friday, had a one shot lead going into the weekend. He extended his lead despite making a double bogey at the par four third hole, and another missed shot on the fifteenth. The second-place finishers are Adrien Saddier of France (70), Jacques Krusywijk of South Africa (68), and Nicolai Von Dellingshausen, a German. Both players have 10 strokes under par. Norris won the Alfred Dunhill Championship, Leopard Creek, in December. This was his second win on the DP World Tour, after the Steyn City Championship, in 2022. (Reporting and editing by Ken Ferris; reporting by Nick Said)
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Companies warn that Trump's plan to build ships could disrupt the ocean cargo industry
Executives warned that President Donald Trump's plan for revitalizing the U.S. maritime industry could impose massive costs on ocean transportation operators and create a new supply chain chaos in the rest of the world. According to a draft of an executive order, Trump's administration wants to fund a comeback in American shipbuilding by charging hefty fees to ports for Chinese-made ships and those from fleets that include Chinese-made ships. According to the World Shipping Council, which represents the liner ship industry, the levies would affect virtually all ships calling at U.S. port, impose up to $30 billion in annual costs to American consumers, and double the shipping cost for U.S. exported goods. WSC CEO Joe Kramek stated that policymakers should reconsider damaging proposals and find alternative solutions to support American industry. The gloomy outlook of industry executives illustrates how Trump's pro U.S. policies sometimes have unintended consequences which are contrary to his stated goals. Jeremy Nixon (CEO of Ocean Network Express, owner of container ships) said that the plan could have a negative impact on ocean carriers and customers. He made this statement at S&P Global’s TPM Container Shipping Conference in Long Beach, California. Ship owners may make fewer port calls in the U.S. to reduce fees. Executives said that a flood of additional cargo could cause congestion in these ports, making it difficult to ship exports and imports. Trump's plan could also force companies to redeploy global ship fleets, so that vessels not built in China can be re-focused on the United States - which could cost money and time. MSC's CEO, Soren Tofft, said that the world's biggest container carrier could avoid smaller ports, such as the Port of Oakland in California, which is an important gateway for the export of fresh beef, almonds, and dairy products. Executives warned that such moves could flood the nation's largest ports and isolate the smaller ones. This would risk a repetition of the early pandemic backlogs which hampered global trade. Beth Rooney said that it would be difficult for her and other partners to handle the volume increase. Punishing past mistakes that are not known MSC's Toft, speaking of fees associated with China-built vessels, said: "If a new regulation is introduced, we should at least be forward-looking, and not penalize ourselves for past mistakes that we didn't know were mistakes." CMA CGM is also expanding its fleet of American President Lines, which are under the U.S. flag, and looking into having ships built here. The French carrier has a vessel sharing alliance with China's COSCO Shipping, and Walmart is one of their top customers. In an interview published Friday, CEO Rodolphe Saade stated that "we are in discussions with several shipyards in order to determine how long and at what costs it would take". Maersk, a Danish shipping company, said that it is premature to comment about new tariffs and fees because they are constantly changing.
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US FAA: 240 flights affected by explosion on Musk's SpaceX Starship
Federal Aviation Administration officials in the United States said that Friday, a SpaceX Starship explosion on Thursday disrupted 240 flights. Space debris concerns forced more than 20 of these planes to divert. This was the second explosion in a row of a SpaceX launch test. The FAA issued ground stops on Thursday that lasted just over an hour. They were for flights departing from four Florida airports - Miami, Fort Lauderdale Orlando and Palm Beach. The FAA reported that the incident caused 171 delays in departure, 28 flight diverts, and 40 airborne aircraft were held for an average of 22 minute while the agency’s Debris Response Area remained active. The average delay for the 171 planes was 28 minutes. The FAA also announced on Thursday that it would require SpaceX to conduct a mishap inquiry into the loss of the Starship. The FAA granted SpaceX a launch permit for the test flight on Thursday last month. However, its investigation into Starship's failure in the past remained unresolved. The FAA reviewed SpaceX’s application for a license and the early findings of the company’s investigation into a mishap before deciding that Starship’s eighth flight would be allowed to proceed. Social media videos showed a streak of fiery debris in the sky at dusk, near South Florida and the Bahamas. A SpaceX live feed of the mission revealed that Starship had broken up in space after it started spinning uncontrollably and its engines were cut off. It's been just over a week since the Starship 8 test failed, and the 7th also resulted in a catastrophic failure. Back-to-back mishaps happened in the early stages of missions that SpaceX had easily surpassed before, a setback to a program Elon Musk wanted to accelerate this year. Musk called the explosion of Thursday "a minor setback" on Friday. Musk responded to a post on his social networking platform X by writing: "Time is the measure of progress." The next ship is expected to be ready within 4 to 6 weeks. The 403-foot Musk's plan is to send humans to Mars by the end of this decade. Reporting by David Shepardson, Editing by David Gregorio
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Yemen's Houthis set a four-day deadline for Israel to lift the Gaza blockade
Abdul Malik al-Houthi said that the leader of Yemen’s Houthis would resume his naval operations against Israel, if Israel didn’t lift its blockade of Gaza’s aid within four days. The Iran-aligned group launched more than 100 attacks against shipping in November 2023. They claimed to be in solidarity with Palestinians due to Israel's conflict with Hamas. However, the assaults stopped in January following a ceasefire in Gaza. Over the course of that time, it sank at least two ships, captured another, and killed four seafarers. This offensive disrupted international shipping and forced firms to take longer and more costly journeys around Southern Africa. We will set a four-day deadline. Al-Houthi stated that this deadline was for the mediators (for Gaza ceasefire). If the Israeli enemy continues to block the aid from Gaza after four days and continue to close all crossings, then we will resume our Naval Operations against the Israeli enemy. On March 2, Israel blocked Hamas called on Egyptian and Qatari mediators to intervene as the standoff over the ceasefire escalated. In February, the Houthis who control most Yemen said they would take military action against Israel and the U.S. if they tried to forcefully remove Palestinians from Gaza. (Reporting and editing by Andrew Heavens; Yomna Elhab and Ahmed Tolba)
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CMA CGM CEO Les Echos: CMA CGM is in talks with US Shipyards
Rodolphe Saade, CEO of CMA CGM's French shipping group, told Les Echos that the French shipping company is in discussions with shipyards to build medium-sized containers vessels in the United States. "We are in discussions with several shipyards in order to determine how long and at what price it will take," he stated in an interview published Friday, just a day after he announced with U.S. president Donald Trump a $20 billion investment plan in the United States. We'll decide if we want to go forward or not. It's interesting to have the option." CMA CGM has been looking into the possibility of vessels that can hold 6,000 containers. This is larger than the ships built in U.S. shipyards, but smaller than the 24,000 container vessels currently on the market. CMA CGM, the third largest container line in the world. Saade said at the White House that he would support the building of container vessels in the country, and make an announcement "in a few weeks." CMA CGM stated that any announcements of U.S. ship order would be an addition to the 20 billion dollars investment over four years announced on Thursday. CMA CGM has announced a package of investments, compared to the $12 billion that it invested in America in the last five years. This comes at a time when the industry is preparing for the possibility of U.S. Port Fees on. China-linked vessels Saade told Les Echos that he did not discuss the port levies issue with Trump. His firm, like many others, has a significant portion of Chinese vessels in its fleet. It is also part of a vessel sharing alliance with China’s COSCO.
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Spain's lithium mine bid promises jobs but for who?
The proposed lithium mine could provide batteries for thousands of electric cars Critics say that the job opportunities promised by mining companies are too limited. My proposal is moving through the approval process By Natalie Donback He hauled them to his farm near Caceres, where they were divided into baskets and then pressed into oil. While Palomo was working, his six-year-old son Olmo chased their two sheep dogs. Palomo stated, "I would like my son to have the opportunity to continue to enjoy our land as he grows older." The valley is located on top of Europe's second-largest hard rock lithium deposit. A new underground mine has been proposed to tap its wealth. According to Extremadura New Energies, the company that is seeking a license for it, the proposed San Jose Lithium Project would provide enough lithium each year to power 800,000 electric cars. Residents are concerned about air pollution, the impact on water supplies and the threat to wildlife like the Spanish imperial Eagle. The mine, owned by Australian Infinity Lithium, will not cause contamination or noise. After reviewing the proposal the government of the autonomous Region of Extremadura requested that the company provide further details by June. Some people in Extremadura (which borders Portugal on the west) hope that the European Union’s demand for Lithium -- a crucial raw material used to power everything from electric cars to cell phones -- will turn the region into an energetic hub, enabling Europe’s green energy transformation as it works to become carbon neutral in its energy system by 2050. Extremadura has few industries, and is suffering from depopulation, with a 14.4% unemployment rate - the fourth highest in Spain. Raquel Pastor is the director of the department for industry, energy, and mining in the Regional Government. The European Commission added lithium to its list of essential minerals for the continent’s energy transition. This will help it reduce its dependency on Chinese minerals, and achieve its climate goals. Lithium is an important component in batteries for electric cars, which emit fewer greenhouse gasses than traditional petrol or diesel powered vehicles. The EC’s Critical Raw Materials Act aims to extract 10% of these minerals from Europe by 2030. The EU is aiming to accelerate the permitting process for strategic projects that will be announced in this month. Caceres was on the first shortlist. According to CIC energiGUNE (a Basque research institute), 13% of Europe’s lithium deposits can be found in Spain. The largest deposits are concentrated in the southern part. Despite the fact that several companies are attempting to obtain licenses for Spain's lithium, none of them is approved or currently operational. Critics have been very vocal in their opposition to proposed projects, citing environmental risks as well as potential impacts on agriculture and tourism. Extremadura New Energies stated that the mine and processing facility would create 1,500 new jobs in a two-year phase of construction and 700 more jobs over its estimated 26 year operation. Ricardo Salaya Monsell, a local union leader, said that companies had made similar promises in the past and failed to deliver. Salaya, head of the Regional Federation for Industry, Construction and Agriculture, General Workers Union, said, "But we still see quality employment as valuable, so long as the necessary standard is met." Farmers such as Palomo want the local government to invest in agriculture instead. According to a new study from the University of Extremadura, agriculture could create the same number of local jobs, but with a longer-term perspective, in the next 60 year. According to data from the government, only 9% of the people in the region are involved in agriculture. 73% work in other sectors such as tourism and hospitality. What will happen to the workers of Caceres when the mine closes? Will they be forced to move to find employment? Palomo asked. It's not the average life expectancy of a human being." MINING JOBS Ramon Jimenez Serrano, CEO of Extremadura New Energies, said that he is confident the local community will benefit from these jobs. He said that the building phase would require mainly construction and assembly workers. However, degree-level positions such as administrators and technicians will be created during the exploitation phase. Others, however, question the suitability of these jobs for locals due to their highly specialized nature. Salaya said that if there is a large industrial project that requires a lot technical work, they may have to hire outsiders. Extremadura New Energies created online courses that were subsidised by regional government to train local workers on the production of renewable energies and lithium batteries. Jimenez stated that 500 people had taken part in the course. The mining company may dismiss the pollution risk, but "there are no precedents for modern industrial mines that have been operated and shut down without environmental contamination," stated Steve Emerman of the United States, a geophysics and mining specialist who testified in front of the European Parliament about the impact of mining on the EU. Palomo's sheep and olives, which depend on the pristine environment of the Dehesa wooded pastureland, simply do not justify the mine. He said that the 26-year, short-term project would threaten our ancient Dehesa landscape as well as centuries-old Olive trees.
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Report: London air quality improved after the expansion of the levy on polluting vehicles
A report by the Mayor's Office on Friday said that toxic gas emissions in London have fallen by 27% since the 2023 expansion of London's clean-air zone. This zone imposes a tax on the most polluting cars. London's Ultra Low-Emission Zone (ULEZ), first introduced by Sadiq Khan in 2019, was intended to reduce traffic emissions. It expanded in August 2023 despite opposition from those who feared it would exacerbate the cost of living crisis. Five million more people are now subject to the daily 12.50 pounds ($16.14), which is charged for older, more polluting cars. The report released on Friday, which examined how the ULEZ had affected emissions in the City in the year up to September 2024 found that the expansion led to a 27 percent drop in nitrogen dioxide levels. Nitrogen dioxide is formed by the gases released from car engines that burn fuel. This toxic gas can contribute to asthma development, retard the lungs' development in children, and increase lung cancer risk. Khan stated that "the decision to expand ULEZ wasn't something I took lightly but this report proves it was right for the health and safety of Londoners." The report said that air quality in London has improved since 2019 in 99% locations where it is monitored. Many residents are angry about the cost of living in the city and the surrounding areas. Protesters have targeted the hundreds of cameras that were installed to enforce this expansion.
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The long journey of the Nord Stream gas pipeline to Europe
The United States' push to end the conflict in Ukraine has raised concerns about how European companies could re-engage Moscow and return to the Russian markets, including by resuming natural gas supplies. Nord Stream, which crosses the Baltic Sea and flows into Germany, is the largest route. Here is a look into the idea of resuming Nord Stream: What is the NORD STREAM PIPELELINE? Nord Stream is actually two double pipelines that can deliver 110 billion cubic meters (bcm), or enough gas to supply 26 million homes, to Europe every year. Nord Stream 2 was completed in 2021 but has never been granted an operating permit. The project, which was controlled by Russian gas company Gazprom, also had the backing of large Western energy companies, including Shell, E.ON Uniper, Engie, OMV, and Wintershall Dea (now owned by Harbour Energy). What happened when explosions hit the pipeline? The damage caused by the explosions that occurred in September 2022 is a major obstacle to resuming supplies via Nord Stream. Damage was sustained to both pipes of the first pair and one pipe of the second pair. One line was left intact. The cause of the damage is still unknown. Some Western officials suggested that Moscow had blown up its own pipes, but Vladimir Putin dismissed this idea as "idiotic". Russia has accused the United States of being responsible for the explosions. These countries have denied any involvement. According to estimates, the broken line of NS2 still contains approximately 9-10 millions cubic metres of gas while the intact line is still filled with gas. What are NORD STREAM's financial problems? Second pair of pipes is also facing financial problems, as operator Nord Stream 2 AG - a unit of Russia’s Gazprom - faces pressure from its creditors to pay. A Swiss court has set a deadline of May 9 for Switzerland-headquartered NS2 AG to both restructure its debts and pay back its small-scale creditors, adding it could declare it bankrupt if this condition was not met. In January, Russian Foreign Minister Sergei Lavrov stated that the possible bankruptcy or sale of NS2 AG amounted to "theft". NS2 AG was not available for comment. Gazprom has not responded to a comment request What is the status of legal cases? There are several arbitration cases against Gazprom relating to disruptions in its gas supply. Cederic Crémers, executive vice-president of integrated gas at Shell – one of the financial supporters of the NS2 pipe – said that these cases must be resolved before considering a restart. And even then, the question remains whether Europe wants to continue its dependence on Russian natural gas. In December, under the then-President Joe Biden, the U.S. Administration issued additional sanctions against entities based in Russia for their involvement in NS2, which included its operator and a Russian insurance company that provided coverage to companies involved in this project. WOULD EUROPE WANT to buy Russian gas again? The reopening of Nord Stream may be complicated by the fact that Europe is no longer interested in Russian energy since Russia invaded Ukraine in 2022, and annexed Crimea in 2014. The European Commission delayed its announcement of a plan for the EU to reduce its reliance on Russian Energy. However, the Commission said that NS2 was not a project in the common interest nor did it diversify EU energy sources. Germany, Europe's largest gas buyer, has recently stated that it is not in negotiations with Moscow about gas supplies. The majority of European countries are seeking alternative sources, including increasing the importation of liquefied gas (LNG), from the United States, Africa, and the Middle East, as well as taking on more pipeline imports, such from Norway and Algeria. They also increase renewable energy production. (Reporting from Frankfurt by Christoph Steitz and Nina Chestney; Additional reporting from Ariane Luthi, Kate Abnett and Vladimir Soldatkin; Editing by Jason Neely & Susan Fenton).
Shipping companies pull out of Hong Kong to avoid US-China risks
Some shipping companies move their operations discreetly out of Hong Kong, and remove vessels from its registry. Some shipping companies are making contingency planning to do this.
Six shipping executives have said that these low-profile actions are motivated by a fear that their vessels could be seized by Chinese authorities, or face U.S. sanction in the event of a clash between Beijing and Washington. The people said that the growing U.S. scrutiny over the importance of China’s commercial fleet to a potential military conflict, such as one over Taiwan, and Beijing's emphasis of Hong Kong's role in serving Chinese interests is causing concern in the shipping industry. Last month, the U.S. Trade Representative proposed imposing steep U.S. fees on Chinese shipping firms and other companies that operate Chinese-built ships to counter China's "targeted dominant" in shipbuilding and maritime logistic. Washington warned American companies in September about the growing risks associated with operating in Hong Kong. The U.S. has already imposed sanctions on officials who are involved in a crackdown.
Hong Kong has been the hub of shipowners for over a century, as well as brokers, financiers underwriters, and lawyers who support them. Official data shows that its maritime and port industries accounted for 4,2% of the GDP in 2022.
VesselsValue - a subsidiary company of Veson Nautical, a maritime data group - reports that the city's flag was flown on eight out of ten ships in the world.
Interviews with two dozen people familiar with Hong Kong including shipping executives and lawyers revealed a growing concern about the possibility that commercial maritime operations in Hong Kong could be caught up by forces outside their control if a U.S. - China military conflict occurs.
Many pointed out China's increased focus on national security goals, trade frictions, and Hong Kong's leader's broad powers to take control of shipping if necessary, as he is accountable to Beijing.
One executive who, like many others, was allowed to remain anonymous to discuss this sensitive subject said: "We do not want to be in the position where China is knocking on our door, requesting our ships, while the U.S. targets us from the other side."
Previously, the concerns of shipowners as well as their efforts to limit exposure to Hong Kong were not reported. In recent years the perception of risk has increased, in line with the tightening security environment in the Chinese-ruled area and the tensions between two of the largest economies in the world.
Turning Tide
To comply with safety and environment rules, commercial ships must be registered or flagged with a specific country or jurisdiction.
VesselsValue, an independent research firm, found that despite the influx of Chinese ships on Hong Kong's register, the number oceangoing vessels registered in the city dropped by more than 8% in January, from 2,580 in January 2004. Government data show a similar drop.
In 2023 and 2024 74 ships, mostly dry-bulk carriers, were re-flagged for Singapore and Marshall Islands. These vessels transport commodities like coal, iron ore, and grain. VesselsValue reports that 15 tankers and 7 container ships left Hong Kong's registry to fly these flags.
Hong Kong's ship registry has seen a dramatic decline in the last two years. Official data shows that it grew by 400% over the past 20 years.
Hong Kong's Government responded to questions by saying that it is normal for shipping companies, given the changing geopolitical, trade and economic circumstances, to review their operations. It is also normal for the numbers of ships registered to fluctuate over the short-term.
A spokesperson stated that Hong Kong will "continue to excel" as an international shipping center, highlighting a variety of incentives, such as profits tax breaks and environmental subsidies, for shipowners.
The spokesperson stated that neither the laws governing registry nor the emergency provisions empower Hong Kong's leader in commandeering ships to serve as part of a Chinese merchant navy.
When asked to comment on the concerns of industry players about how emergency powers from colonial times might be used during a conflict between the U.S. and China, the spokesperson declined. The provisions give the leader of the city "any regulation whatsoever", which includes taking control over vessels and property.
China's commerce and defence ministries did not respond to questions regarding the role of the merchant fleet in Beijing’s warfighting plan, the possible involvement of Hong Kong flagged vessels, or the concerns of commercial shipowners.
The U.S. Treasury declined to comment on potential sanctions, concerns of shipping executives, or the role played by Hong Kong-registered ships in a Chinese commercial fleet.
Lawyers and executives agree that ships can be reflagged in a variety of ways, including through the sale, chartering or redeployment on different routes.
Basil Karatzas of Karatzas Marine Advisors & Co in the U.S. said that Singapore was becoming the preferred domicile for businesses with less exposure to Chinese shipping or cargo trade. It offered many efficiencies including its legal system but also a lower risk than Hong Kong.
Singapore's Maritime and Port Authority stated that decisions regarding domiciles and flags were based on business considerations. The Maritime and Port Authority of Singapore said it had not noticed any "significant changes" in the number Hong Kong shipping companies moving operations or reflagging vessels to Singapore.
MERCHANT FLEEET
Executives and lawyers agree that Hong Kong's registry for shipping is highly regarded by the industry because of its high safety and regulatory standards. This allows its ships to easily pass through foreign ports. Many of China's international state-owned vessels now fly Hong Kong's banner.
According to PLA military studies and four security analysts, in a conflict these tankers and bulk carriers would be the backbone of the merchant fleet that supplies China's oil and food needs.
The U.S., on the other hand, has a very small shipbuilding industry. It also has far fewer vessels under its flag. Three analysts say that while China's growing state-owned fleet would be a target of the U.S. during a military conflict, Beijing would need other vessels in order to supply its needs, given its reliance on international shipping lanes and vast needs.
Donald Trump has been keeping a close eye on strategic maritime operations. Trump said in his January inauguration address that he would "take back" control of the Panama Canal from China. Trump did not provide specifics but his remarks focused on two Panama port operated by a Hong Kong conglomerate CK Hutchison Holdings subsidiary. The group did not respond to any questions regarding Trump's remarks, but agreed to sell the majority of the subsidiary's shares to a consortium led by BlackRock this week, giving U.S. interest control over the port. Trump said to Congress that his administration would create a shipbuilding office in the White House, and provide new tax incentives.
In a study conducted by the U.S. Congress in November 2023, it was stated that "cargo vessels typically transport 90% of military equipment required in overseas conflicts". The report noted that Chinese shipyards ordered 1,794 ocean-going large ships in 2022 compared to five in the U.S.
Merchant vessels played a crucial role in Britain's 1982 long-range operation to retake Argentina's Falkland Islands. Declassified CIA files show that UK-flagged ships operated out of Hong Kong, many of which were owned or controlled by Chinese firms, supplied communist Hanoi in the Vietnam War.
In 2013, President Xi Jinping outlined the need for a Chinese merchant fleet that would help to build China's maritime strength in a Politburo session.
In the past decade, Chinese military and government documents and studies have emphasized the dual-use value of China’s merchant ships.
According to state media, regulations enacted in 2014 required Chinese builders to build five types of commercial ships, including tankers and container ships, to be able to serve military requirements.
Since then, COSCO has seen a significant increase in its line.
Documents from COSCO show that China places political commissars, officers who make sure Communist Party goals are served, on nominally civil ships.
The U.S. banned COSCO subsidiaries in January for what they said were links with the Chinese military.
COSCO has not responded to any questions regarding its deployment of commissars, U.S. restrictions, or what role COSCO's ships -- including those with Hong Kong flags -- might play in wartime.
'REALLY DE-RISKED'
Hong Kong is still an important shipowners' base, despite geopolitical issues. Some shipowners are quietly hedging.
Taylor Maritime (London-listed) a company that was founded in Hong Kong, in 2014, has a much smaller presence in Hong Kong now after several strategic moves in the last few years.
It has been flagging its ships in Singapore and the Marshall Islands since 2021. The company has offices in London, Guernsey and Singapore.
A person with knowledge of the matter said that the firm "really reduced the risk of Hong Kong". This was due to investors' fears of a Chinese invasion in Taiwan and the Communist Party taking control of Hong Kong.
Taylor Maritime's spokesperson stated that the company initially moved its Asia-based teams from Hong Kong to Singapore to be closer to their clients.
Taylor Maritime, after acquiring Grindrod, a shipping company with an Asia office in Singapore and expanding its operations there, relocated certain functions from Hong Kong to Singapore, where it became the primary Asia hub.
Two people with knowledge of the situation said that Pacific Basin Shipping, a Hong Kong listed company, has always flagged its 110 bulk carrier fleet in Hong Kong. However, it is now preparing contingency plans for them to be registered elsewhere while it assesses possible risks.
Pacific Basin's spokesperson stated that the company constantly evaluated geopolitical risk but its fleet still flew the Hong Kong flag "which, at least for the moment, outweighs the challenges".
The spokesperson stated that "Being located in Hong Kong places us near China's 40% share of the global dry bulk export/import activity as well as close to Asia's strong industrial and economic growth regions."
Angad Banga said that shipping firms adjust contingency plans based upon risk assessments, but he has not heard of concerns regarding the commandeering vessels.
Banga said that although some organizations may be re-evaluating their operational strategies, they do not see a widespread exodus from Hong Kong or a loss of confidence. The city, he added, remained attractive to maritime commerce.
Some industry figures have described a general unease in Hong Kong, which has affected their planning.
Three lawyers have said that, until recently, contracts for the increasing number of ships constructed in China that are financed by Chinese banks stipulated that the ship must fly the Hong Kong Flag.
Lawyers said that in the past two years some companies have added a disclaimer to their contracts, stating that they are willing to consider other flags as an alternative. Could not independently verify these changes. Beijing officials have stressed that Hong Kong is important in achieving national security goals. They also referred to China's modernisation of its military and refusal to abandon the use of force against Taiwan.
Three executives and lawyers said that the sweeping security laws, which were first implemented in Hong Kong in July 2021 and then strengthened in March 2020, have increased dangers.
Lawyers said that any attempt by Hong Kong’s leader to commandeer ships in an emergency could prove difficult, since locally registered vessels often travel routes far away from Hong Kong. They said that such powers, which have been in place for a long time, now needed to be seen through the lens of national security.
One lawyer stated that some shipowners would not object to a request from the government to hand over their vessels. This could be due to patriotism, or because they might profit by a crisis.
Another veteran lawyer said that it is "better to avoid being in a situation where you could be asked".
It was not an issue a few short years ago. The national security map has been redrawn. (Reporting and editing by David Crawshaw; Additional reporting by Andrea Shalal, Idrees, and Idrees in Washington and Beijing, Shanghai, and Hong Kong;
(source: Reuters)