Q3 Letter from the President of NSA

Q3 Letter from the President of NSA
A Letter from the President of National Shipping

Dear Friends,

2022 will be remembered as a year of continually rising prices and the second quarter was no exception. Starting with fuel, the inflationary environment cascaded throughout the supply chain placing every sector under strain. On the ocean freight side, ship capacity remains oversubscribed and even with the signing of the Ocean Shipping Reform Act of 2022, it seems maybe a ‘too little too late’. National Shipping’s Puerto Rico service enjoyed strong inbound and outbound volumes consistent with the overall global picture.

On the eve of our National Glory’s mandatory USCG five years drydocking, I would like to share with you some of the trends shaping the industry as it relates to the major issues facing marine transportation – CO2 equivalent emissions and supply chain disruptions.

The goal to achieve zero emissions by 2050 has been supported by the USA and is being discussed with the IMO (International Maritime Organization). National Shipping continues to comply with IMO regulations by utilizing MGO (Marine Gas Oil), a superior fuel with lowest sulfur emissions.

One of our customers invited us for the second year to participate in the Carbon Disclosure Project (CDP). It is a 3-area focus on . Climate (where NSA participates), Ocean, and Forest. CDP has been measuring CO2 equivalent emissions in large companies since 2000. The goal is to establish a baseline for company’s CO2 equivalent emissions and set improvement goals. The scope of the project measures fuel emissions on a CO2 equivalent basis from the company’s main source.

We are also following the IMO mandated ‘Ballast Water Treatment System’ regulation. This rule prevents a vessel from taking water for ballast in a foreign port and discharging the same elsewhere without filtering the water. Invasive species travel in ballast tanks and can adapt to their new environment by entering lakes and rivers, thus disturbing the ecosystem. We will accomplish this system’s installation during the drydock. Finally, in addition to the servicing the vessel’s machinery and painting the hull, we will be installing all new cargo hatch covers. The drydock will be performed in Tampa during the month of July. This extensive drydock work on the National Glory is a sign of commitment from our owner to the Puerto Rico trade.

For the third quarter and foreseeable future, it appears that the war in Ukraine will be prolonged. The drain on our nation’s resources combined with persistent inflation is changing the global supply/demand curve. This situation forces us to increase our rates to remain profitable. At the top of the list is the price of fuel. Regretfully, the third quarter price futures for oil remain high.

Supply chain stress will continue to plague the shipping industry, both internationally and domestically. Moving shipments within the USA between ports and their origins or destinations via rail and truck will remain expensive while the service remains inconsistent due to labor shortages.

To alleviate some of the stress in your supply chain, NSA has added a limited trucking capacity in Houston to provide for more ‘door pickups and deliveries’. Additionally, we are requesting our customers to book their freight early and observe the cut-off dates more closely.

During these unusual times, it is our goal to remain on schedule. In this regard, during the first 6-month period of 2022 covering 13 voyages, NSA recorded on-time arrival rate of 95%. We were able to achieve this performance while operating the vessel at a minimum level of fuel consumption whenever possible. Your cooperation, as always, is appreciated.

May we take this time to wish you a safe, restful, and enjoyable July 4th weekend while we ready the National Glory to re-enter service for another 5 years.

Thank you for your continued support.



Best wishes,

Torey Presti
President of National Shipping of America